|
|
| 28.07 19:50 |
Hot Stocks: Huntsman Corp, Interactive Brokers Group Inс
Huntsman Corp, the chemical maker said it was contacted by
investors who might help with financing to help Apollo Management LP
complete its proposed leveraged buyout of the company.
The worldwide equity-options trading company Interactive Brokers Group Inс said second-quarter profit rose less than analysts forecast citing of smaller gains from market making.
Western Digital Corporation, the world's second-largest maker of
hard-disk drives forecast first-quarter profit below analysts'
estimates on industry over supply pressuring prices.
The Niwot cut earnings outlook of Crocs Inc on a "challenging" U.S. marketplace and slower-than-expected growth internationally for its brightly colored, plastic sandals.
|
| 28.07 19:20 |
Credit Suisse notes Q2 GDP data will contain historical revisions
"We have no explicit forecast about which direction the benchmark
revisions will take, although it is natural to assume that periods of
economic weakness are prone to downward revisions. Various data points,
including the Index of Coincident Indicators and income side measures
of GDP, point to a weaker run rate for the economy than the last few
quarters of GDP data might suggest."
|
| 28.07 19:12 |
Dow -184.74 at 11185.95, Nasdaq -32.22 at 2278.31, S&P -15.42 at 1242.34
Stocks have made a bit of an upturn after taking out a fresh session
low. Still, losses in each of the major indices remains considerable.
The downturn in the Dow is the most significant. Alcoa (+0.33) is the only one of its components trading with a gain.
The session's pessimistic tone has pushed participants toward
Treasuries. The benchmark 10-year Note is up 22 ticks, pushing its
yield toward a session low.
|
| 28.07 18:50 |
FTA about inflation
Economist Brian Wesbury at FTA says "commodities are overestimating
inflation, the bond market is underestimating inflation." He notes CPI
is up 5% YOY but the 10y Tsy is a mere 4.01%. Fed ease means "The
underlying inflation trend will be up in the next two years, not down."
|
| 28.07 18:07 |
American focus: Dollar falls as financial losses pare bets on Fed Rate increase
The dollar fell from near a three- week high against the euro as
concern U.S. financial company losses will widen led traders to reduce
bets that the Federal Reserve will increase borrowing costs in
September.
The currency dropped for a second day as Minneapolis Fed President Gary
Stern told the Financial Times that the U.S. credit crunch will get
worse.
``The financial sector is far from being healthy,'' said Vassili
Serebriakov, a currency strategist at Wells Fargo & Co. in New
York. ``The Fed won't be able to raise rates any time soon given what's
happening in the credit market.''
The dollar weakened as Stern of the Minneapolis Fed said in a Financial
Times interview that the credit crunch is likely to last for months.
Nonfarm payrolls dropped by 75,000 in July, following a decline of
62,000 in June, according to a separate survey. The Labor Department
will release the employment data on Aug. 1.
The dollar depreciated to an all-time low of $1.6038 per euro on July
15 on concern financial losses and record oil prices may prolong the
economic slowdown in the U.S.
``The dollar is likely to breach $1.60 again in the next three
months,'' said Dustin Reid, a senior currency strategist at ABN Amro
Bank NV in Chicago. ``There's a lot of risk in both the economy and the
financial sector.''
Futures traded on the Chicago Board of Trade showed a 37 percent chance
the Fed will increase its 2 percent target rate for overnight lending
between banks by at least a quarter- percentage point by Sept. 16,
compared with 43 percent odds on July 25. Policy makers next meet Aug.
5.
|
| 28.07 17:26 |
GBP/USD: Pushing to fresh highs for the session
Pushing to fresh highs for the session near $1.9950 as the dollar limps
lower across the board with US stocks but flows remain muted, as is the
case elsewhere, "even quieter than earlier, one trader says. Offers
eyed at $1.9970/80.
|
| 28.07 17:12 |
Stocks slump amid credit worries
Stocks slipped Monday as investors feared that the ongoing credit crisis would dampen an economic recovery.
Shares of government-backed mortgage finance giants Fannie Mae and Freddie Mac
turned higher in the early going after the Senate approved a bill on
Saturday that could establish a rescue plan for the embattled firms.
The bill would also provide up to $300 billion in loans for troubled
homeowners. The House passed the bill on Wednesday, and President Bush
is expected to sign it soon. Shares of Fannie and Freddie both rose 1%
in morning trading.
Verizon reported quarterly earnings grew 12%, beating
Wall Street analysts' forecasts. The company said that profits were
boosted by growing wireless operations, despite more customers shifting
away from land lines. Shares fell 1% Monday.
Kraft Foods said its quarterly profit rose 4%, which
surpassed analysts' expectations. The company's earnings were helped by
raising prices to offset higher commodity costs. Shares rose 4%.
Japanese automaker Toyota announced Monday it has cut
its global sales and output targets by 350,000 vehicles for 2008 amid
the slumping North American market. Shares fell 2%.
Drugmaker Amgen, which is set to report its
quarterly results after the market's close, reported a positive study
of its experimental osteoporosis drug called denosumab. Shares rose 13%
Monday.
Wire reports comment from OPEC President Khalil saying that he expects oil prices to stay at current levels. WTI Nymex crude oil is at $124.50 having hit session low at $122.63 earlier.
COMEX gold for August delivery fell $2.40 to settle at $924.40 an ounce.
Treasury prices rose Monday, sending the yield on the benchmark
10-year note down to 4.01% from 4.11% late Friday. Bond prices and
yields move in opposite directions.
|
| 28.07 16:41 |
OIL: Corrects session low at $122.63.
Wire reports comment from OPEC President Khalil saying that he expects
oil prices to stay at current levels. WTI Nymex crude oil is at $124.50
having hit session low at $122.63 earlier.
|
| 28.07 15:59 |
Dow -47.30 at 11326.65, Nasdaq -4.61 at 2305.92, S&P -0.78 at 1257.24
The stock market trades with a modest loss as the financial sector
(-0.7%) falls into the red. There is some weakness in banks, with
regional banks sliding 1.4% and diversified banks shedding 0.8%.
Meanwhile, Treasuries are enjoying some buying interest. The 10-year note is up 20 ticks, sending its yield down to 4.01%.
|
| 28.07 15:39 |
Merrill Lynch about US economy
ML
economist David Rosenberg compares US to Japan in the 1990s and says it
took some time for recession signals to show. He points out if hisnonfarm
payroll est at -70,000 holds, "This means that over a seven month span
the economy would have lost over 500,000 jobs, which in 60 years of
data-sifting, has never happened before without the economy being in
recession."
|
| 28.07 15:18 |
Dow -35.49 at 11311.61, Nasdaq -6.76 at 2302.91, S&P -0.51 at 1257.25
The stock market climbs into the green and then retreats back into the negative territory. The financial sector (unch) dips off its 1.7% opening gain, although thrifts and mortgages stocks (+3.7%) -- which includes GSEs Fannie Mae (+0.64) and Freddie Mac (+0.48) -- are still enjoying some buying interest.
Telecom (-0.4%) is a laggard after investors show disappointment with Verizon's (-0.57) quarterly results, although the telecom giant did top its earnings estimates.
Amgen (+7.91) is the best performing stock this session. Wall
Street is pleased with the biotech firm's positive osteoporosis drug
trial results.
|
| 28.07 15:02 |
GBP/USD: Back above $1.9900
Back above $1.9900 as cable continues its recovery from the early European lows. Offers now come in at $1.9930 and $1.9980.
|
| 28.07 14:44 |
OPTIONS: Expiries of note for today's 1400GMT cut,
EUR/USD: $1.5700
USD/JPY: Y107.75,
Y109.25
EUR/JPY: Y168.00
AUS/USD:
$0.9650
Kiwi: $0.7500
|
| 28.07 14:32 |
US Stocks Open: DJIA -39,48, Nadaq -4,06, S&P -1,93 |
| 28.07 14:19 |
Before the bell: Wall Street set to open lower
A modestly lower open is expected, as concerns about a slowing global
economy and doubts of the sustainability of the financial sector rally
keeps buying interest in check (S&P futures -3.7, Nasdaq futures -10.0).
Сrude climbs 0.9% to $124.35 per barrel.
Wrigley reported earnings of $0.74 per share, which is six
cents better the the average analyst estimate. In May, Mars Inc.
announced plans to buy Wrigley for $23 billion.
Toyota lowered its 2008 worldwide sales target to 9.5 million
vehicles from 9.85 million vehicles, with weakness in North America.
According to the Wall Street Journal, Toyota sold 9.37 million cars in
2007.
Dow component Verizon reported earnings of $0.67 per share, which is two cents better than expectations.
|
| 28.07 13:50 |
EUR/USD: Continues to ease from earlier high
Continues to ease from earlier high water mark around $1.5764 amid
light flows, talk still mindful of earlier mentioned semi-official name
sales of the pair into the high, curbing a rally
sparked by demand from Russian and Swiss names. Offers remain
$1.5760/80, bids back at $1.5700 area of sizeable option expiry strikes.
|
| 28.07 13:29 |
EUR/JPY : Staged a decent recovery from the early lows
Staged a decent recovery from the early European lows at Y169.00, the
cross able to push back up to challenge to Asian highs in early NY,
making a marginal show above at Y169.76. Last week's lifetime high at
Y169.97 is the next level on the upside, with barrier interest still
noted at Y170.00 and stops through Y170.05/10.
|
| 28.07 13:09 |
European session: Dollar falls against Euro, Yen on widening bank-loss concern [M]
The following data were issued 06:10 DE Aug Gfk
consumer confidence index, 2.1
The dollar fell from near a three- week high
against the euro and declined from its strongest in a month versus the yen on
concern U.S.
credit losses will widen. The currency dropped a second day against the
euro after Gary Stern, president of the Federal Reserve Bank of Minneapolis, was cited by the Financial Times as saying
the U.S.
credit crunch will worsen. The dollar also declined as the price of crude
oil rose, rebounding from a seven-week low. The British pound fell against all 16 major currencies
after a report showed U.K.
house values dropped the most in at least seven years. The U.S. Congress last week sent President
George W. Bush legislation to stem foreclosures for 400,000 homeowners and aid
Fannie Mae and Freddie Mac, its most sweeping effort to halt the biggest
housing slump since the Great Depression in the 1930s. The euro fell earlier after an industry report
today showed consumer confidence in Germany dropped to the lowest in
more than five years as soaring energy prices sapped purchasing power.
EUR/USD opened in early Europe
around $1.5707. Rate was capped within the $1.5700/20 range before moved to
fresh highs for the day near $1.5764. Strong offers $1.5760/80, bids $1.5700,
$1.5680. 
GBP/USD opened early Europe
at $1.9877 before cable slept to fresh lows for the day around $1.9842 and then
the move ran out of steam. Later rate recovered back to $1.9870. Cable bids
$1.9830, stronger $1.9820, stops below, offers $1.9890.
USD/JPY opened in early Europe
around Y107.82. Traders reported quiet trading across the board, dollar-yen
edging back to trade around Y107.75 into early US dealing. Dlr-yen offers
Y108.10/20, Y108.40/60, stops above, bids Y107.50.
Gains in the U.S. dollar may be
limited by speculation that declines in home prices and employment will make it
difficult for the Federal Reserve to raise interest rates. Analysts predict home
prices fell by 16% in May from a year ago, the most on record. U.S.
nonfarm payrolls fell by 75,000
in July, following a decline of 62,000 in June, according
to a separate survey of economists. Futures on
the Chicago Board of Trade show a 93% chance the Fed will keep borrowing costs
on hold at 2% when it announces its next decision on Aug. 5, up from 64% a
month ago.
|
| 28.07 12:53 |
Royal Bank of Scotland Group Plc ahead of US GDP report
“Any dollar gains after the GDP report are likely to prove temporary,”
said Masafumi Yamamoto at Royal Bank of Scotland Group Plc. “Growth due to
fiscal stimulus is a one-off that will fade away in the second half of the
year.”
|
| 28.07 12:39 |
OPTIONS: Expiries of note for today's 1400GMT cut,
EUR/USD: $1.5700 USD/JPY: Y107.75, Y109.25 EUR/JPY: Y168.00 AUS/USD: $0.9650 Kiwi: $0.7500
|
| 28.07 12:22 |
European focus: Euro rises despite slump in German consumer confidence [M]
The euro rises after it initially fell back
slightly against the dollar following a larger-than expected fall in German
consumer confidence, though quiet trade meant its losses were limited. The GfK
market research institute said its consumer climate index for Germany is
forecast to sink to 2.1 points in August, its lowest level since June 2003 and
down from 3.6 points in July. The figure is far lower than the 3.5 point
consensus forecast of economists. Analysts said the figures indicate rising
inflation is hitting consumers' willingness to spend, deepening the slowdown in
the German economy. "The good times are definitely over and
the German economy is on a slide to a recession-like scenario," said
Carsten Brzeski at ING. However the
euro's losses were limited with investors unwilling to significantly shift
their positions ahead of a string of key U.S. data later this week including
the closely-watched non-farm payrolls figures on Friday. "The calendar of data releases becomes
very interesting later this week especially with the U.S. GDP, non-farm payrolls
and the ISM index...until then, the market might prefer to stay in a
wait-and-see mode," said Ulrich Leuchtmann at Commerzbank. Elsewhere the
pound was lower amid a series of gloomy surveys on the UK economy. Hometrack reported that
house prices fell 1.2% between July and June. A report by Deloitte said that a
technical UK
recession (two consecutive quarters of negative growth) is now all-but
guaranteed and the Bank of England will likely have to cut interest rates to
3.5% by the middle of next year to ensure a recovery. Last week official figures showed a slump in
retail sales during June, and a fall in second quarter GDP growth to a
quarterly rate of 0.2% from 0.3% in the first quarter.
|
| 28.07 11:54 |
EUR/USD probes stops
EUR/USD extends its recovery amid euro-sterling
rally. Rate currently holds near $1.5757 area. Stops noted through $1.5760,
ahead of additional offers at $1.5790/1.5800.
|
| 28.07 11:38 |
EU stocks get down
European equity bourses are in the
red in mid-morning Monday session, with financials lower after Australia &
New Zealand Banking Group Ltd (ANZ) overnight reported that its 2008 earnings
per share were likely to fall between 20% and 25% on the previous year. Sentiment
was further undermined by Citigroup who lowered its rating on the European
banking sector. Airlines are lower, with Ryanair leading the charge after it
warned that it could suffer an underlying loss of up to E60m for the full year.
CAC-40 is down 37pts, Xetra-DAX is down 53pts and FTSE-100 is down 8pts.
|
| 28.07 11:24 |
USD/JPY techs:
Resistance 3: Y110.00 Resistance 2: Y109.30 Resistance 1: Y108.10 Current price: Y107.70 Support 1: Y107.70 Support 2: Y107.00 Support 3: Y106.50 Comments: Dollar still challenging 23.6% Fibo level (the rise from Friday’s low) at Y107.70. Stronger level is around channel support line from Jul 15 at Y107.00. Below the decline may extend to Friday’s lows on Y106.50. Session highs are around Y108.10 (minor resistance). Key resistance level is around upper bound of the channel at Y109.30.
|
| 28.07 11:08 |
USD/CHF techs:
Resistance 3: Chf1.0520 Resistance 2: Chf1.0460 Resistance 1: Chf1.0400 Current price: Chf1.0344 Support 1: Chf1.0240 Support 2: Chf1.0180 Support 3: Chf1.0140 Comments: Dollar still retreats with strong support at Chf1.0240. Below correction may extend to Chf1.0180 and stronger support on Chf1.0140 (Tuesday’s low). Resistance comes near yesterday’s high on Chf1.0400. Break above will target Chf1.0460 and then - Chf1.0520.
|
| 28.07 10:49 |
GBP/USD techs:
Resistance 3: $2.0130 Resistance 2: $2.0020 Resistance 1: $1.9940 Current price: $1.9858 Support 1: $1.9800 Support 2: $1.9720 Support 3: $1.9650 Comments: Pound still within the channel, limited by $1.9800/$2.0020 (support and resistance respectively). Break under $1.9800 will widen losses to $1.9720 and then – to $1.9660 (Jul 07 low). Resistance still comes at $1.9940. Above there is a chance for a rise to $2.0020 (channel line). Strong zone comes at $2.0130 (Jul 15 high).
|
| 28.07 10:31 |
EUR/USD techs:
Resistance 3:$1.5940 Resistance 2: $1.5860 Resistance 1: $1.5750 Current price: $1.5731 Support 1: $1.5610 Support 2: $1.5580 Support 3: $1.5520 Comments: Euro continues to recover, holding within the upward channel from Jul 15, limited by $1.5610/$1.5860 (support and resistance respectively). Resistance comes at Friday’s high on $1.5750 with a break above will open the way to $1.5860 and further – to $1.5940 (last Tuesday’s high). Under $ 1.5610 the losses may widen to $1.5580 and $1.5520.
|
| 28.07 10:15 |
AUS/USD strengthens
AUS/USD extends
the day's highs, holding currently at $0.9580. Offers now reported up to $0.9590,
while bids come in at $0.9550/40 with stops still lurking under $0.9520.
|
| 28.07 09:58 |
OPTIONS: Expiries of note for today's 1400GMT cut
EUR/USD: $1.5700 USD/JPY: Y107.75, Y109.25 EUR/JPY: Y168.00 AUS/USD: $0.9650 Kiwi: $0.7500
|
| 28.07 09:36 |
Orders:
EUR
Bids: $1.5680, $1.5665/60, $1.5630/20
Offers: $1.5740
JPY
Bids: Y107.50
Offers: Y108.00, Y108.60
GBP
Bids: $1.9840/35, $1.9820, $1.9800
Offers: $1.9920/30, $1.9975/80
AUSSIE
Bids: $0.9520, $0.9480
Offers: $0.9660
|
| 28.07 09:11 |
Oil continues to grind higher
Crude oil
prices are higher Monday after reports that Nigerian militant group -- Movement
for the Emancipated of the Niger Delta (MEND) has sabotaged 2 pipelines in Kula
and Rumuekpe. WTI Nymex crude oil is at $123.90, up 64 cents.
|
| 28.07 08:56 |
Asian session: Dollar trades near 1-month high on Fannie, Freddie Rescue Bill [M]
The dollar traded near a one-month
high against the yen after Congress passed legislation to prop up Fannie
Mae and Freddie Mac, the two largest providers of U.S. mortgage financing. The currency was also near a
three-week high versus the euro on speculation a government report this week
will show the U.S. economy expanded last quarter at more than twice the annual
pace of the prior three months. The U.S.
Congress sent to the president legislation to stem foreclosures for 400,000
homeowners and aid Fannie Mae and Freddie Mac, its most sweeping effort to halt
the biggest housing slump since the Great Depression in the 1930s. President
George W. Bush will sign the measure into law, a spokesman said.
EUR/USD consolidated within the
$1.5680/00 range before it printed session high on $1.5724. Meanwhile rate
failed to set above and back off to the figure.
GBP/USD failed the break above
$1.9900, spurring the correction to $1.9943.
USD/JPY printed high on Y108.06
before retreating to Y107.60/70.
Gains in the U.S. dollar may be
limited by speculation that declines in home prices and employment will make it
difficult for the Federal Reserve to raise interest rates. Analysts predict home
prices fell by 16% in May from a year ago, the most on record. U.S.
nonfarm payrolls fell by 75,000
in July, following a decline of 62,000 in June, according
to a separate survey of economists. Futures on
the Chicago Board of Trade show a 93% chance the Fed will keep borrowing costs
on hold at 2% when it announces its next decision on Aug. 5, up from 64% a
month ago.
|
| 28.07 08:51 |
Japan stocks closed higher
Japan's benchmark
stock indices ended Monday's session higher across the board, although shy of
their best levels. The benchmark Nikkei 225 was higher by 19.02 points, or
0.14%, at 13353.78. The broader-based TOPIX was 2.51 points higher at 1300.79.
|
| 28.07 08:23 |
COMMODITIES: weekly review
Crude oil fell last week despite the prices rose Friday as the U.S. dollar snapped a three-day rally, bolstering the appeal of commodities. In general, supply concerns persisted in Iran and Nigeria continued to pressure the prices.
Iran, second- largest Middle East producer, may have to be forcibly
prevented from acquiring nuclear technology, an Israeli general said.
In Nigeria, militants threatened to attack major oil pipelines in
response to claims they took payouts from the government.
Iran,
which produced about 3.85 million barrels of oil a day last month, has
warned it may blockade the Strait of Hormuz, the export channel for a
quarter of the world's crude, if it's attacked. The country has the
second-biggest proved oil reserves and is the second-biggest producer
in the Organization of Petroleum Exporting Countries.
 The
Movement for the Emancipation of the Niger Delta, a Nigerian militant
group, threatened on July 23 to attack a pipeline that feeds two of the
country's four refineries. The group, also known as MEND, disputed
claims by Nigerian National Petroleum Corp. head Abubakar Yar'Adua in
Nigerian newspapers that it took millions of dollars in payouts for
allowing repairs to the Chanomi pipeline. The pipeline was attacked in
February 2006 and repairs were completed earlier this year. The
country's main blue-collar oil workers' union will hold off on resuming
a strike over rising fuel costs before planned talks with government
officials set for July 29, the group's president said today.
Crude
oil for September delivery closed at $126.51 a barrel, down 1.8% for
the week. Futures are up 66% from a year ago. Brent crude oil for
September settlement settled on $127.51 a barrel or 2.1% weekly
decline.
 Gold slipped 3.8% last week to $921.15 a troy ounce. Platinum rose Friday, but failed to close the week higher.
Friday platinum capped the longest slump since 1997, on speculation
that demand will rise in China after futures plunged 17% this month.
Platinum settled at $1,758.70 an ounce after falling for nine straight
sessions, the longest slide since December 1997. The metal fell 5.2%
for the week, after a 9.4% decline week earlier. The metal fell 15%
this month. Platinum futures still have gained 15% this year, after a
33% rise in 2007. The metal rose 36% from January through June.
Platinum reached a record $2,308.80 on March 4, partly because of
output cuts caused by power shortages in South Africa, the world's
biggest producer of the metal
 Copper declined
0.8% to $7,938 a ton amid LME-monitored copper stockpiles jumped 2,600
tons, or 2%, to 133,475 tons, the highest since March 7. They have
increased 8.9% this month. Nickel ended the week with its biggest decline in four months as
stainless-steel mills, the biggest users of the metal, said demand is
weakening. Jinchuan Group Co., Asia's biggest nickel producer, cut
prices by 11% from Friday. Acerinox SA, the world's largest
stainless-steel producer, and Finland's Outukumpu Oyj said this week
that orders from construction slowed. The contract fell around 10% to
$18,240 a metric ton, the lowest intraday price since June 15, 2006.
Nickel has fallen 30% this year. Among other metals, aluminum declined
to $2,950.25 a ton and zinc fell to $1,825.
|
| 28.07 08:09 |
STOCKS: weekly review
Wall Street stocks closed mixed last week,
despite Friday’s correction, spurred by strong housing and
manufacturing data. The S&P 500 slipped 0.2% last week and the Dow
average lost 1.1%. The Nasdaq climbed 1.2% in the week. The housing
market offered a pleasant surprise, as sales of newly-constructed
single-family homes fell only 0.6 per cent to a 530,000 annual pace – a
smaller decline than expected. Homebuilders rose 2.2% with a 4% gain
for Lennar helping to lead the way.
 Technology stocks were the strongest gainers,
benefiting from some decent earnings news as well. Google added 3.4%,
while Ebay gained 4.1% and the sector advanced 1.6%. Juniper Networks
was the biggest winner in the sector after its second-quarter profits
jumped 40% and it lifted third-quarter forecasts. Juniper shares surged
17.7%.
Friday produced some more bad
news from the financials. Early gains were wiped out after data showed
rising foreclosures, and S&P said it might cut certain of the
ratings of Fannie Mae and Freddie Mac. The pair fell 3.9% and 6.1%,
respectively. The financial sector as a whole lost 0.6%. Although
somewhat obscured by the travails of the financials, earnings season
kicked into high gear this week. After 226 company reports, earnings
for the S&P 500 are down 24.6% on average. Excluding financials,
though, earnings grew by 9.3%.
 European stocks fell for the third day last week on
concern losses in financial services may worsen and slowing economies
will stifle profit growth. Munich Re slumped the most in five years
after the world's second-biggest reinsurer warned of ``substantial''
writedowns on its stock investments. Hannover Re fell the most since
January. UBS AG slipped after New York sued the bank on allegations its
promotion of auction-rate securities was fraudulent. PagesJaunes SA led
media companies lower after cutting its sales forecast because of ``a
more difficult economic environment.'' UBS tumbled 6.1%. The European
bank hardest hit by subprime contagion was sued yesterday by New York
Attorney General Andrew Cuomo, alleging the bank's promotion of
auction-rate securities as safe, money market-like investments was
fraudulent.
 The Nikkei gained 4.2%
in this holiday-shortened week, the biggest weekly advance since Feb.
15, while the Topix rose 3.7%. Japan's consumer prices climbed at the
fastest pace since 1998 in June as higher food and gasoline costs
squeezed household budgets, the statistics bureau said. Kokuyo Co.
surged 7.6%, the biggest advance since May 13. The Japanese maker of
office supplies beat its profit forecast by 67% after passing on higher
materials expenses and cutting costs.
|
| 28.07 08:01 |
FOREX: weekly review
The dollar showed the second weekly advance against the euro
as traders added to bets the Federal Reserve will raise interest rates
from 2% this year. Philadelphia Fed President Charles Plosser said on
July 23 rates should rise ``sooner rather than later'' to quell
inflation. Hank Paulson, US Treasury Secretary, reiterated on Tuesday
that a strong dollar was “very” important to US interests. He reassured
investors that the US government was going ahead with plans to resolve
the mortgage crisis. The comments helped to support financial stocks
and lift the dollar. However, a wobble in US bank shares later in the
week took some of the shine off the greenback’s advance.
 The dollar extended its gain versus the yen and the euro
as sales of new homes fell in June less than forecast and a gauge of
consumer confidence unexpectedly advanced this month. Traders raised
bets that the Federal Reserve will increase borrowing costs in
September. Futures traded on the Chicago Board of Trade showed a 44%
chance the Fed will increase its 2% target rate for overnight lending
between banks by at least a quarter- percentage point by Sept. 16, up
from 41% odds yesterday. Policy makers next meet Aug. 5. The euro suffered after
a raft of weak data out of the region suggested that the economy is
faltering rapidly. Data showed that both the manufacturing and services
sectors in the area is shrinking, highlighting that a recession is now
a real possibility. The euro zone Purchasing Managers Index for
services slipped to a five year low of 48.3 in July from 49.1 in June.
Euro zone manufacturing activity also slumped, falling to 47.5 from
49.2 in June. Both figures were below expectations. At the same time, a
key survey from Germany, the Ifo index also came in weaker than
expected. The Ifo research institute said its July business climate
index fell to 97.5 from 101.2 in June, dropping below analysts'
forecasts of a decline to 100.0. The figure for June was revised down
from 101.3.
The pound fell
prey to weak data, this time on the state of UK retail sales which
suffered a massive slump in June. Retail sales in the UK plunged in
June by their biggest amount since records began in 1986 but
inflationary pressures, particularly within food, continue to mount,
official figures showed today. The office for National Statistics said
retail sales in June dropped by 3.9%. The yen weakened
against all of the other major currencies as an unexpected increase in
orders for U.S. durable goods last month bolstered speculation that
investors will buy higher-yielding assets funded in Japan.
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| 28.07 07:33 |
USD/JPY techs:
Resistance 3: Y110.00 Resistance 2: Y109.30 Resistance 1: Y108.10 Current price: Y107.81 Support 1: Y107.70 Support 2: Y107.00 Support 3: Y106.50 Comments: Dollar challenges 23.6% Fibo level (the rise from Friday’s low) at Y107.70. Stronger level is around channel support line from Jul 15 at Y107.00. Below the decline may extend to Friday’s lows on Y106.50. Session highs are around Y108.10 (minor resistance). Key resistance level is around upper bound of the channel at Y109.30.
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| 28.07 07:21 |
USD/CHF techs:
Resistance 3: Chf1.0520 Resistance 2: Chf1.0460 Resistance 1: Chf1.0400 Current price: Chf1.0368 Support 1: Chf1.0240 Support 2: Chf1.0180 Support 3: Chf1.0140 Comments: Dollar retreats with strong support at Chf1.0240. Below correction may extend to Chf1.0180 and stronger support on Chf1.0140 (Tuesday’s low). Resistance comes near yesterday’s high on Chf1.0400. Break above will target Chf1.0460 and then - Chf1.0520.
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| 28.07 07:10 |
GBP/USD techs:
Resistance 3: $2.0130 Resistance 2: $2.0020 Resistance 1: $1.9940 Current price: $1.9863 Support 1: $1.9800 Support 2: $1.9720 Support 3: $1.9680 Comments: Pound still within the channel, limited by $1.9800/$2.0020 (support and resistance respectively). Break under $1.9800 will widen losses to $1.9720 and then – to $1.9680. Resistance comes at $1.9940. Above there is a chance for a rise to $2.0020 (channel line). Strong zone comes at $2.0130 (Jul 15 high).
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| 28.07 06:59 |
EUR/USD techs:
Resistance 3:$1.5940 Resistance 2: $1.5800 Resistance 1: $1.5750 Current price: $1.5701 Support 1: $1.5630 Support 2: $1.5580 Support 3: $1.5520 Comments: Euro gets close to resistance near Friday’s high on $1.5750 with further resistance is near $1.5800. Stronger level is near $1.5940 (Tuesday’s high). Support comes at Thursday’s low on $1.5630. Below at $1.5580 and $1.5520.
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| 28.07 06:42 |
Major European bourses are seen trading modestly lower Monday. UK spreadbetters Cantor Index are calling the FTSE down 8, the DAX down 20, the CAC down 17 and the Eurostoxx 50 down 15 |
| 28.07 06:20 |
Daily History for July 25, 2008
High Low Close EUR/USD 1.5752 1.5658 1.5695 USD/JPY 107.94 106.55 107.89 GBP/USD 1.9978 1.9828 1.9902 USD/CHF 1.0406 1.0314 1.0367
EUR/JPY 169.45 167.48 169.35 EUR/GBP 0.7918 0.7867 0.7885 GBP/JPY 214.82 211.56 214.74 GBP/CHF 2.0713 2.0495 2.0637
Change % Change Last Nikkei 225 -268.55 (-2%) 13,334.76 Topix -34.29 (-2.6%) 1,298.28 DAX 30 -3.99 (-0.06%) 6437.71 САС 40 +29.19 (+0.67%) 4377.18 FTSE 100 -9.70 (-0.18%) 5352.60 Dow +21.41 (+0.19%) 11370.69 Nasdaq +30.42 (+1.33%) 2310.53 S&P +5.22 (+0.42%) 1257.76 10YR 96 0 4.09% 98 6/32 OIL NYMEX -2.23 (-1.78%) $123.26
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| 28.07 06:12 |
Schedule for today, Monday, July 28, 2008
23:30 Japan Unemployment (June) 4.0% 4.0% 23:30 Japan Household spending (June) real Y/Y - -3.2% 23:50 Japan Retail sales (June) Y/Y - 0.2%
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