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  • Ecb | Online Stockmarket Trading Update
    opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject to change Contracting Hevern Pty Ltd is a Corporate Authorised Representative No 408868 of D2MX Pty Limited ABN 98 113 959 596 AFSL No 297950 D2MX and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd Opinions conclusions and other information expressed in this report are not given or endorsed by D2MX unless otherwise indicated The information contained in this Report is General Advice only as the information or advice given does not take into account your particular objectives financial situation or needs Disclaimer Using leverage to invest can be a two edged sword as it can magnify your returns when the stock price rises but will in turn magnify the losses if the trade does not perform as expected Tags asian market news asx company earnings ASX News Commodities ecb european market news us market news Weekly Market Wrap Posted in Stock Market Analysis No Comments Weekly Market Wrap Traders Sell the Fed Delays the ECB Falls Short of Assurances Friday August 3rd 2012 Traders began the week happy with the assurances from the European Central Bank that it would do whatever it takes to preserve the euro However as the week progressed traders chose caution and actually hit the sell button in disappointment over the inactivity by the US Federal Reserve and the ECB in relation to further easing The selling has been broad based in the past couple of sessions with the European markets looking to break their eight week streak of consecutive gains Overnight US stock markets fell for a fourth day on the back of disappointing global manufacturing data and news that the ECB and the Fed will delay any additional monetary easing until at least September The three benchmark indexes fell around 1 The S P 500 has slid 1 5 in the past week and is setting up for its first decline in four weeks Falls were broad based with the energy materials and the financial sectors leading the way down US economic news continues to disappoint with PMI manufacturing data weaker as orders placed with US factories unexpectedly declining in June We also saw the biggest decline in bookings for non durable goods in over three years confirming there is less demand for business equipment and goods US consumer confidence also dropped last week to the lowest level in two months due to mounting concern over the state of the economy while consumer spending stagnated Just to add a further dampener to investor confidence there was a mini flash crash yesterday that will cost market maker Knight Capital trading losses of over US440 million An initial review of the problems by the NYSE exchange revealed that nine of the Dow Jones Industrial Average companies lost almost US1 trillion in combined market value these firms included Alcoa Amex BofA and AT T European stock markets have backed off four month highs in recent sessions as the ECB failed to take immediate action and corporate earnings disappointed The Stoxx Europe 600 index declined 1 3 on the prospect of slowing global growth Overnight the European Central Bank ECB President Mario Draghi failed to live up to his reassurances that the ECB would do whatever it takes to support the euro saying that the ECB is working on the issue but will not take immediate steps to support the economy The cost of funding in Spain has again shot up to 7 16 and in Italy it s again approaching 6 4 These high levels are unsustainable in the medium term and the Spanish and Italian markets plunged around 5 on the news Traders initiated a global sell off in a case of sell on the news as ECB President Draghi signaled the ECB intends to join forces with governments to buy bonds in sufficient quantities to ease the eurozone debt crisis while conceding that the German Bundesbank has reservations about the plan ECB officials are working on the plan and details will be fleshed out in the coming weeks he said after keeping the benchmark interest rate on hold at 0 75 percent Financial markets and politicians had ratcheted up pressure on the ECB to act after Draghi pledged last week to do whatever it takes to save the euro battered for almost three years by spiraling costs of borrowing for the PIIGS countries from Spain and Italy to Greece The Bundesbank had reiterated last week that it opposes further purchases of sovereign debt by the ECB as they blur the line between fiscal and monetary policy There is going to be a long path to a resolution to the ongoing crisis Asian stock markets are finishing the week lower with sentiment being driven by overseas developments as the US Fed and now the ECB disappoint by delaying easing Most Asian stock markets have fallen across the region led by the mining and financials sectors as investors chose to step aside as the policy announcement by the European Central Bank and the Federal Reserve disappointed The Chinese market continues to languish at 2009 lows In commodities crude oil prices eased to around US87 this past week as concerns grew about slowing global growth The gold price has retraced in the past couple of sessions and is now trading below US1 600 again Copper has moved lower towards 12 month lows and is below its 50 and 200 day moving averages The Australian market is retracing from 2 month highs again due to the global central banks inaction but our mining and energy stocks are showing some much needed signs of recovery The 4200 level is the current pivotal level and 4120 is the critical support level for next week In our market the defensive sectors continue to outperform with banks Telstra Real Estate REITs and health care stocks trading higher as investors hold on to their stocks for the dividend season this month The industrials materials and energy sectors are retracing off key 50 day resistance levels despite the short covering we have seen near term The banks have surged again and are at 3 month highs as investors turn to dividend yield We are seeing some buying in the energy and materials sectors as investors are seeking some risk on but we need to see follow through next week to continue the upward momentum for the market which may be difficult with the disappointment over delays in quantitative easing Investors should have protection in place for their capital and could look to reduce their risk by using options and warrants strategies Look to pick up value stocks that pay consistently high dividend yields when they reach your buy levels In today s Analyst s Eye we review some Golden Opportunities for investors Remain attuned to the news from overseas particularly from the eurozone China and the US as the US release their monthly employment report and as Aussie companies begin their reporting season Monitor the performance of Italian and Spanish borrowing costs China and the US dollar for a guide to the future direction of commodities and equities prices The S P ASX 200 index is currently trading at 4228 and is trying to close the week around its 200 day moving average which will be a key level for next week Key levels for the index next week will be 4150 and 4280 with 4200 the key short term pivot level Contact me at D2MX Trading on 1300 610 024 and I can help you trade using a number of strategies that will give you the tools to navigate this market and help you boost your returns on investment Michael Hevern Investment Adviser D2MX Trading For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject to change Contracting Hevern Pty Ltd is a Corporate Authorised Representative No 408868 of D2MX Pty Limited ABN 98 113 959 596 AFSL No 297950 D2MX and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd Opinions conclusions and other information expressed in this report are not given or endorsed by D2MX unless otherwise indicated The information contained in this Report is General Advice only as the information or advice given does not take into account your particular objectives financial situation or needs Tags Asian Markets ASX News Commodity prices ecb quantitative easing US economic news us market news Weekly Market Wrap Posted in Stock Market Analysis No Comments Weekly Market Wrap Traders Celebrate ECB Reassurances Friday July 27th 2012 Last week we talked about traders seeing green as they anticipated a coordinated monetary easing effort across the globe However traders were starting to turn a little green themselves by mid week as stock markets across the world sold down and the coordinated global central bank easing failed to materialise The selling was persistent in the European markets as the eurozone debt crisis was worsening with the cost of borrowing for Italy and Spain reaching unsustainable levels over 7 for 2 and 10 year debt It also looked increasingly likely that Greece would be unable to meet the austerity restrictions needed to qualify for its bailout and Spain looked set to be the next in line to need a bailout The Spanish stock market regulator the CNMV announced a ban on all short selling for the next three months citing the extreme volatility that equities are now experiencing while in Italy the regulator announced a short selling ban for the next week on some banking and insurance shares In the US markets have traded sideways this week as the corporate earnings results have been mixed Asian markets were subdued and by mid week the Japanese market had reached 7 week lows Hong Kong reached 5 week lows and China 4 year lows Now for some good news investor sentiment performed an about face overnight and traders across the globe started buying after the ECB President Draghi pledged to do whatever it takes to preserve the EU economic zone Stocks surged across the board led by financials but the telecommunications consumer mining and energy sectors powered higher as traders sought risk on US stock markets surged on the ECB comments recovering overnight to near 2 month highs after spending most of the week down around their 200 day moving averages The earnings season continues and of the 263 S P 500 companies that have reported 72 have topped analysts estimates on the earnings side but only 43 have beaten on revenue which is disappointing European markets managed to rebound overnight with the French market surging over 4 while the German market has bounced 3 5 from its weekly lows The Stoxx Europe 600 Index jumped 2 5 for its biggest gain since the end of June The gauge had dropped 4 4 in the previous four sessions with traders hitting the sell button as Spain and Italy have to pay unsustainable rates for their debt borrowings The ECB reassurances saw Spanish 10 year bond yields fall below 7 while Spanish 2 year yields fell the most this month after ECB President Draghi said that addressing high yields on sovereign debt was within the central bank s mandate The ECB was responding to calls by Spanish policy makers asking the central bank to fight a renewed round of financial turmoil that pushed the country s bond yields to euro area records this week Italian bond yields also subsided Asian markets are rebounding today but the Chinese market remains at 4 years lows Chinese officials said that government easing will be sidelined near term while they watch the outcomes of recent interest rates cuts and as bank lending is starting to improve The estimates forecast for GDP growth next quarter are mixed ranging from 7 4 to 7 6 which is around the government benchmark of 7 5 In commodities crude oil prices eased to above US89 this past week as US inventories picked up again with tensions in the middle east seen as easing The gold price has bounced in the past couple of sessions after the ECB s reassurances and as QE3 looms again Gold is again trading above US1 600 Copper prices have also moved higher bouncing off their 200 day moving average The Australian market is in the process of forming a second higher low as seen on today s chart and is set to test 2 month highs again If the global central banks do act this would be a catalyst for our market to push higher and will give a badly needed boost to our mining and energy stocks The 4200 level is the next pivotal resistance level and 4120 is the critical support level for next week In our market the defensive sectors continue to outperform with banks Telstra Real Estate REITs and health care stocks trading higher as investors seek out stocks that can deliver consistent yield in this low rate environment and as we move into the dividend season in August The industrials materials and energy sectors are bouncing off key short term support levels and we appear to be seeing short covering near term The banks have surged and are testing 3 month highs as investors turn to dividend yield However we are seeing some buying in the energy and materials sectors as investors seek risk on but we need to see follow through next week to continue the upward momentum for the market Investors should have protection in place for their capital and could look to reduce their risk by using options and warrants strategies Look to pick up value stocks that pay consistently high dividend yields when they reach your buy levels Last week we said it may be time to start to nibble away at materials and energy stocks which proved fortuitous as they held on to recent support levels Remain attuned to news from overseas particularly from the eurozone China and the US as the US reporting season continues Also monitor the performance of Italian and Spanish borrowing costs China and the US dollar for a guide to the future direction of commodities and equities prices The S P ASX 200 index is currently trading at 4182 and is trying to close the week around the 2 month trading range Key levels for the index next week will be 4120 and 4280 with 4200 the key short term pivot level By Michael Hevern D2MX Trading Desk For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject to change Contracting Hevern Pty Ltd is a Corporate Authorised Representative No 408868 of D2MX Pty Limited ABN 98 113 959 596 AFSL No 297950 D2MX and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd Opinions conclusions and other information expressed in this report are not given or endorsed by D2MX unless otherwise indicated The information contained in this Report is General Advice only as the information or advice given does not take into account your particular objectives financial situation or needs Disclaimer Using leverage to invest can be a two edged sword as it can magnify your returns when the stock price rises but will in turn magnify the losses if the trade does not perform as expected Tags asian market news australian market news commodities prices ecb EU debt eurozone US markets Weekly Market Wrap Posted in Stock Market Analysis No Comments Weekly Market Wrap Christmas Rally Hinges on EU Summit Resolve Friday December 9th 2011 Markets have been wary of the upcoming EU summit meeting this week and overnight traders headed for the exits when the ECB president rejected suggestions that the ECB extend its bond buying program All week markets have been driven by news in and around Europe after having surged last week following the announcement of a coordinated effort from global central bankers to increase the liquidity in financial system and the news that China lowered bank reserve requirements for the first time in three years Asian investors cheered the news that the People s Bank of China will cut the reserve requirement ratio for the large banks by 0 5 percentage point However the news this week has been far less promising The Standard Poor s Ratings Agency cast a negative cloud over the eurozone when it announced it may downgrade the ratings of Germany France the Netherlands Austria Finland and Luxembourg Investor sentiment was also kept in check by French President Nicolas Sarkozy remaining pessimistic over the European sovereign debt crisis particularly since Germany remains opposed to a common eurozone bond seen by many economists as a possible solution to the crisis There have been mixed signals from the German Chancellor and French President who earlier this week confirmed their support for a new European Union treaty that would include tougher fiscal rules for the eurozone with automatic sanctions against

    Original URL path: http://blog.traderdealer.com.au/tag/ecb/ (2013-02-02)
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  • Weekly Market Wrap: Traders Sell, the Fed Delays & the ECB Falls Short of Assurances | Online Stockmarket Trading Update
    markets are finishing the week lower with sentiment being driven by overseas developments as the US Fed and now the ECB disappoint by delaying easing Most Asian stock markets have fallen across the region led by the mining and financials sectors as investors chose to step aside as the policy announcement by the European Central Bank and the Federal Reserve disappointed The Chinese market continues to languish at 2009 lows In commodities crude oil prices eased to around US87 this past week as concerns grew about slowing global growth The gold price has retraced in the past couple of sessions and is now trading below US1 600 again Copper has moved lower towards 12 month lows and is below its 50 and 200 day moving averages The Australian market is retracing from 2 month highs again due to the global central banks inaction but our mining and energy stocks are showing some much needed signs of recovery The 4200 level is the current pivotal level and 4120 is the critical support level for next week In our market the defensive sectors continue to outperform with banks Telstra Real Estate REITs and health care stocks trading higher as investors hold on to their stocks for the dividend season this month The industrials materials and energy sectors are retracing off key 50 day resistance levels despite the short covering we have seen near term The banks have surged again and are at 3 month highs as investors turn to dividend yield We are seeing some buying in the energy and materials sectors as investors are seeking some risk on but we need to see follow through next week to continue the upward momentum for the market which may be difficult with the disappointment over delays in quantitative easing Investors should have protection in place for their capital and could look to reduce their risk by using options and warrants strategies Look to pick up value stocks that pay consistently high dividend yields when they reach your buy levels In today s Analyst s Eye we review some Golden Opportunities for investors Remain attuned to the news from overseas particularly from the eurozone China and the US as the US release their monthly employment report and as Aussie companies begin their reporting season Monitor the performance of Italian and Spanish borrowing costs China and the US dollar for a guide to the future direction of commodities and equities prices The S P ASX 200 index is currently trading at 4228 and is trying to close the week around its 200 day moving average which will be a key level for next week Key levels for the index next week will be 4150 and 4280 with 4200 the key short term pivot level Contact me at D2MX Trading on 1300 610 024 and I can help you trade using a number of strategies that will give you the tools to navigate this market and help you boost your returns on investment Michael Hevern Investment

    Original URL path: http://blog.traderdealer.com.au/2012/08/03/weekly-market-wrap-traders-sell-the-fed-delays/ (2013-02-02)
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  • Weekly Market Wrap: Markets Spooked By Geopolitics in the Eurozone | Online Stockmarket Trading Update
    demand The National Bureau of Statistics reported today that Chinese consumer prices CPI rose 3 4 percent in April from a year earlier and down from a 3 6 percent gain in March while the producer price index PPI declined 0 7 percent These figures were in line with forecasts and the government is targeting to hold inflation within about 4 percent this year Last week we said Investors Should Look To Insure Capital Gains stating that the Aussie market ASX200 had reached 4440 which is the 50 retracement level from the sell off this time last year to last year s lows and we would expect investors to take a breather near term We were again proved right and in this week s Analysts Eye we take a look at the bigger picture looking to Profit with the Bears as we give an assessment of what to expect through to the end of the financial year In our market the Federal Budget held few surprises but the ABS surprised economists by reporting that unemployment has fallen to 4 9 The defensive sectors continue to outperform with Telstra health care stocks and the banks drifting higher as investors seek out stocks that can deliver consistent yield in this low rate environment The materials sector continues to underperform on the back of lower commodity prices due to the ratcheting back of global growth forecasts Commodity prices have had severe pullbacks this month with Crude oil down 8 Silver down 6 and Gold and Copper down 5 since the start of May The Aussie market has traded weaker this week holding below its 50 and 200 day moving averages and is again at a key support level around 4280 On the S P ASX 200 the 4280 level is now the crucial support resistance level and 4360 is the key pivot level if the market drifts higher Stocks are looking to take a breather as we are completing the bank reporting and dividend season and the materials and energy sectors persist in underperforming Investors should be looking to protect their recent profits and capital and reduce their risk by using options and warrants strategies and in recent Analyst s Eye articles we have discussed using Warrants to Boost Returns and Hedge Portfolios The D2MX Financial Advisory Services team can help with these trades Call me on 1300 610 024 for further information Options remain a relatively cheap form of insurance as volatility remains low and you can also leverage yourself for breakout trades as they occur Remain attuned to the news from overseas particularly from the eurozone and China in relation to easing policies and the US as the US markets backs off their multi year highs Monitor the performance of China and the US dollar for a guide to the future direction of commodities and equities prices The S P ASX 200 index is currently trading at 4280 and is holding below the key 50 day moving average near term which

    Original URL path: http://blog.traderdealer.com.au/2012/05/11/weekly-market-wrap-markets-spooked-by-geopolitics-in-the-eurozone/ (2013-02-02)
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  • Weekly Market Wrap: Investors Should Look To Insure Capital Gains | Online Stockmarket Trading Update
    short of announcing any further quantitative easing near term In our market the RBA surprised by cutting interest rates by 50 basis points and we have the healthcare sector pushing up against 4 year highs Telstra has rocketed higher this week while the banks also drifted upwards as investors seek out stocks that can deliver consistent yield in this low rate environment The materials sector continues to underperform on the back of lower commodity prices due to the ratcheting back of global growth forecasts Commodity prices have drifted lower this week as the US dollar has gained strength in the face of weakening economic data on global growth Crude oil prices eased around the US102 level and copper has again been unable to trade above US3 85 and is holding below its 50 and 200 moving average support Gold prices are again testing support around US1 635 The Aussie market has held above its 13 and 50 day moving averages but is backing off its 10 month resistance level around the 4400 level again On the S P ASX 200 the 4350 level is now the crucial support level and 4440 is the key level on the upside Stocks may be looking to take a breather as we move through the bank reporting and dividend season and the materials and energy sectors persist in underperforming Traders should be looking to protect their recent profits and reduce their risk by using options and warrants strategies In last week s Analyst s Eye we discussed using Warrants to Boost Returns on Dividend Paying Stocks and this week Jeff discusses The Business of Trading The D2MX Financial Advisory Services team can help with these trades Call me on 1300 610 024 for further information Investors should also be looking to utilise options and warrant strategies to protect their positions and profits Options are a relatively cheap form of insurance as volatility remains low and you can also leverage yourself for breakout trades as they occur Remain attuned to the news from overseas particularly from the eurozone and China in relation to easing policies and the US as markets there hover around multi year highs Monitor the performance of China and the US dollar for a guide to the future direction of commodities and equities prices The S P ASX 200 index is currently trading at 4404 and is holding above the key 13 day moving average near term Key levels for the index next week will be 4280 and 4440 with 4350 the key short term pivot level By Michael Hevern DMX Retail Trading Desk For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot

    Original URL path: http://blog.traderdealer.com.au/2012/05/04/weekly-market-wrap-investors-should-look-to-insure-capital-gains/ (2013-02-02)
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  • Stock Market Analysis: European Bank Concerns Dominate Sentiment | Online Stockmarket Trading Update
    Goldman Sachs upgraded the mobile operator to Buy from Neutral saying it sees a potential total return of 55 over the next two years The FTSE 100 index closed up 0 5 or 25 points at 5 650 the German DAX was down 0 6 or 38 points at 6 058 while in France the CAC was down 0 2 or 8 points at 3 137 Spain was down 0 5 and Italy ended down 0 8 Asian Markets Asian stock markets declined on Friday as concerns that the European debt crisis was deepening overshadowed improving data out of the US Most markets closed down over 1 1 for the session as financial stocks continue to be weighed down by concerns over the eurozone debt crisis Chinese stocks did advance on Friday as energy producer PetroChina jumped after Beijing raised a threshold of its windfall tax effectively reducing tax payments for oil producers Banks and resource stocks also rose as bargain hunters stepped in after sharp recent losses In China the Shanghai Composite is trading around 34 month lows which is a major concern for 2012 China has been seen as the engine for global growth and the government is still in the throws of engineering a soft landing which is becoming increasing dificult to orchestrate In China the SSE Composite closed up 0 7 or 15 points at 2 163 while in Hong Kong the Hang Seng Index was down 1 2 or 220 points at 18 593 and in Japan the Nikkei 225 Index was closed down 1 2 or 98 points at 8 390 The South Korean KOSPI was down 1 1 for the session Commodities The Dollar Index was higher at 81 25 on a lower Euro while the Australian Dollar last traded lower at 1 02 Commodities prices traded lower For the session the benchmark crude NYMEX for January delivery was down 0 3 or 0 25 to settle at US101 93 Copper prices are seeking a support level as Copper for January delivery was up 0 3 or 0 9 cents at US3 4275 January gold was down 0 2 or US3 30 at US1 621 ASX News Today BNO Bionomics has signed a 345 million deal with US company Ironwood Pharmaceuticals to develop a potential anti anxiety drug SUN Suncorp Group says it expects natural hazard costs for the last half of 2011 to be in the range of 360 420 million as claims from the Christchurch earthquake and Melbourne hailstorm come in TPI Transpacific Industries Group is being sued for more than 4 6 million by its former boss and major investor in relation to the company s equity raising WRG Water Resources Group the the water treatment company surged over 70 after its subsidiary signed a US95 million deal to supply water in Africa Ex dividend Date None Market Summary ASX to open lower US UK Europe lower Commodities Stock Index down 0 8 Gold Stocks Index dow 0 8 Oil

    Original URL path: http://blog.traderdealer.com.au/2012/01/09/stock-market-analysis-european-bank-concerns-dominate-sentiment/ (2013-02-02)
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  • European Debt | Online Stockmarket Trading Update
    below its 50 day moving average which is a negative sign The line in the sand which we highlighted last week around the 4150 level which had offered support for the past couple of months has now been breached and the market will need to overcome this level in the short term if we are to get a Santa Claus rally this year The 4080 level is crucial in the short term We have continued to see weakness in the banks and the retail and resource stocks have also succumbed to selling pressure In the Analyst s Eye last week we had a timely talk about identifying stocks that have the potential to pullback in the near term After another struggle between the bulls and the bears this week the bears remain in control as we have broken below the 50 day moving average The 200 day moving average which sits around 4 410 still offers significant resistance for any positive momentum into the end of the year and we are sitting around the 61 8 retracement level which is often where we see a relief rally Investors should be looking to utilise options strategies to pick up stocks that are exhibiting value Many stocks are now back at their September levels and you will therefore clearly know if you are trading in the wrong direction Options can be used to protect your profits and manage your risk in this type of market Remain attuned to the news from overseas particularly from China Germany and the US regarding their economic growth and debt issues Monitor the performance of the US dollar for a guide to the future direction of commodities and equities prices The S P ASX 200 is down 4 2 for the week and is currently trading at 4005 and looks to be setting up to test support again around the 3950 level near term Key levels for the index next week will be 3950 and 4150 with 4080 being the key pivot level Expect to see volatility to remain elevated as the market participants look for direction in these uncertain times By Michael Hevern MDS Trading Desk MDS Financial Advisory Services offers general advice on trading options to generate consistent steady income on your investment portfolio Call 1300 610 024 for further information For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research Tags ASX asx 200 Commodities European Debt Stock Market Analysis US markets Posted in Stock Market Analysis No Comments Greece Matters Greek Debt and its Impact on the Australian Economy Friday November 25th 2011 Why does Greece matter to traders in Australia Excess in Greece and the resultant debt crisis may seem a long way from the sunny shores of Australia but it is likely to have far reaching effects for traders investors and even those that are not interested in the markets at all In Greece the people have generally enjoyed a fantastic lifestyle since their entry into the European Union funded by borrowing money very cheaply in Euros These words from Diane Francis sum up Greece nicely Greece is not a country it s a party Taxes have gone uncollected forever or have been short stopped by corrupt tax collectors For decades Greek governments have paid civil servants bonuses for showing up to work on time and 14 months pay for Christmas Retirement has averaged at 53 years of age But Greece s hangover has hit and it is a doozie Debt has reached unsustainable levels and as a result interest rates have risen sharply making it even more difficult for Greece to service their debt When no one wants to lend to Greece it costs them more to get funds and these costs have risen significantly At present the Greek bond yield is above 300 that means the Greeks are paying 300 interest to borrow and by the time you read this it could be even higher It has been estimated that 90 of Greece s debt has to be written off for Greece to reach a sustainable level The recent haircut of 50 for private holders of Greek debt amounted to a 20 30 write off If the problem was contained to Greece then the country would default on its loans and life would carry on for the rest of Europe Unfortunately it s not that simple because most countries in Europe face a similar scenario to Greece Portugal Italy Ireland and Spain collectively with Greece known as the PIIGs also face a similar situation But the effects are not limited to just these countries either and this is where the problem really is At present Italy s bond yields have risen above 7 Belgium s are over 5 and France s are rising towards 4 Even Germany normally seen as rock solid experienced a weak auction this week and their bond yields began to rise from below 2 Bailouts for the PIIGS occurred when they hit 7 but the problem is beginning to spread and there is simply not enough money to bail out Italy the world s seventh largest economy Is France next the world s fifth largest economy Where is all the money going to come from Debt problems are not unique to Europe even though the UK has similar problems Japan is the world leader in sustaining unsustainable debt And welcome to I O U SA where the government cannot reach agreement on 1 3 trillion of deficit reduction that is essential to prevent them following the path Greece and the other PIIGS have followed And who is there to backstop the US What does this mean for us here in Australia following the Australian markets Well there are some obvious implications that you may be able to see If Europe Britain and the US stop buying goods manufactured by China then that is likely to hit the resources sector hard There has already been a slowdown in manufacturing in China seen in data released in the last few days The Materials sector has been one of the weakest sectors in recent time The other sector that has been very weak is the banking sector with all banks interconnected on the global stage Fortunately Australian banks are well removed from exposure to the European crisis but European and US banks are not so fortunate Many of the European banks hold European government debt directly and in the event of a default they will lose large sums of money In fact so much so that the governments will be forced to bail out the banks or let them fail completely While US banks do not have a large direct exposure to European government debt many have sold insurance against default to the European banks known as credit default swaps CDS In the event of a government default both European and US banks are very vulnerable to collapse The bad news is that default is inevitable if you study the history of debt Reinhart and Rogoff have compiled a massive amount of research on debt cycles throughout history published in their book This Time is Different and their findings are interesting A crisis in the private sector which we experienced in 2008 is always followed by a crisis in the government sector as governments increase spending to bail out failing institutions and attempt to stimulate the economy At the same time unemployment jumps and company sales slow this results in higher costs and lower revenue from taxes As a result government debt levels rise sharply There are then only two solutions to the government s unsustainable debt levels inflation or default that s it According to history there is no other way out Inflation means the government starts printing money to repay their debts and if they print enough then their debts can be repaid however this leads to a fall in the value of their currency and rising commodity prices Some see gold as the ultimate protection against inflation as the government cannot make more of it The rising gold price is a sign of this behaviour which was euphemistically called Quantitative Easing in the US and it has also been occurring in the UK If inflation gets out of hand then hyperinflation can hit with prices rising at ridiculous rates Zimbabwe was the most recent case of this where 3 eggs cost 100 billion and the price of your meal went up while you ate Germany has experienced hyperinflation in the past and is very wary of taking this path for the European Union The other option is outright default which Iceland has been brave enough to do The government simply says we are not paying back the debt Iceland has prospered since as its massive debt burden was eliminated The big problem facing European leaders is that if Greece defaults it will severely impact other European countries who are holding the debt in its banks MF Global collapsed after Greece defaulted on 50 of its private debt and fortunately there was no flow on effect from this though many clients are caught up in the turmoil The true danger is that one default could trigger a series of defaults and we could end up with a collapse in the global banking system There are only two ways out of this inflation or default Two choices and neither of them are good Politicians will choose the approach they wish to take but only when forced to Rising bond yields are a sign that they may be forced into this sooner rather than later By Jeff Cartridge Education Manager Tags Australian economy European Debt Greek Debt inflation piigs economies us debt Posted in Stock Market Analysis No Comments Weekly Market Wrap Eurozone Debt Train Rolls on to Italy Friday November 11th 2011 Globally traders have been jumping at shadows again as the eurozone debt train rolled on to Italy The newswires have been focusing on the debt worries in the eurozone but it has been the traders in the Asian markets that have suffered from plunging share prices European stock markets have only traded sideways in past week which is at odds with the doom and gloom that we are hearing from the commentators from the newswires and even though Europeans have been buffeted by the upheaval over the debt crisis issues in Greece and now Italy The eurozone markets have been under pressure as the Italian cost of borrowing soared to crisis levels this week There were also concerns that the French credit rating could be downgraded by Standard Poor s Ratings Services however the ratings agency has now issued a clarification saying that the French triple A rating remains unchanged which helped investor sentiment Sentiment has also been boosted by news of a new Greek prime minister after days of political wrangling However reports that German and French officials have discussed plans for a radical overhaul of the European Union that would involve establishing a more integrated and potentially smaller euro zone have the potential to hurt investor sentiment These reports have since been denied by Germany Officials are still cautious over Italy which as the eurozone s third largest economy is too big to bail out Italy presents a far bigger problem than Greece as it makes up 17 of EC GDP while Greece makes up 2 and by comparison Germany makes up 27 It s going to take the combined efforts of the European Central Bank the IMF and the eurozone bailout fund to save Italy from financial crisis Overnight traders speculated that the European Central Bank ECB had intervened to help prop up the Italian bond market as the Italian borrowing rates on the secondary bond market eased from the crisis levels at 7 6 in the previous session Asian markets have sold down heavily in the past week with Hong Kong down 6 3 Korea down 6 5 and China has eased 2 3 Growth sensitive resources plays around the region have fallen sharply and financials stocks have suffered particularly those with exposure to eurozone debt Slowing growth in the eurozone is impacting company prospects for earnings in the medium term The Chinese market has outperformed as inflation shows signs of slowing raising expectations fiscal policy may be eased Chinese export growth has slowed due to the European debt crisis exports rose at a slower pace in October as the European sovereign debt contagion has rolled on to threaten Italy casting a shadow over the outlook for global growth The markets still appear to want to push higher as many of the global markets are testing support around their 50 day moving averages However Asian markets are now trading below their 50 day moving averages which will prove to be critical in the near term The November December period is typically good for stocks so if the eurozone debt situation can settle we should see some Christmas cheer The US dollar has continued to be volatile in the past week and this has been affecting commodities prices The major metals have held on to recent gains with gold finding resistance around the US1 800 level but crude oil has pushed up towards US98 per barrel and copper has pulled back to US3 37 per pound Our View for the Australian Market Our market is bouncing between the 50 and 200 day moving averages as the battle between the bulls and the bears unfolds The longer the market holds between these levels the more important will be the eventual breakout in either direction In the Analyst s Eye last week we talked about how the bull trap trade should be set up Aussie traders have again been held hostage to what is happening in Europe particularly in Greece and now Italy However the Aussie market is holding on to key support levels We may see some rotation out of the banks after the completion of the dividend period towards a move into retail and resource stocks as we head towards the year s end Locally consumer confidence figures have given a boost to the retailers while the Senate has finally passed the carbon tax legislation Additionally employment rose with 10 100 more new jobs created in October up for a second month as more workers took up full time jobs The unemployment rate edged lower to 5 2 percent from 5 3 percent previously and employment growth slowed to 0 9 per cent in October compared to the same month in 2010 After another struggle between the bulls and the bears this week the market is finely balanced as the bulls need to push the markets to close above the 200 day moving average in order to confirm their dominance while on the flip side a sustained break below the 50 day moving average would confirm the dominance of the bears The Aussie market has found support above its 50 day moving average which sits around 4150 and must breach the resistance around its 200 day moving average which sits around 4 410 in order to confirm its positive momentum into the end of the year Investors should be looking to utilise options strategies to protect their profits and manage their risk in this type of market Remain attuned to the news from overseas particularly from China Italy and the US regarding their economic growth and debt issues Monitor the performance of the US dollar for a guide to the future direction of commodities and equities prices The S P ASX 200 is currently trading at 4249 having found support again around the 4150 level this week Key levels for the index next week will be 4150 and 4410 with 4300 the key pivot level Expect volatility to remain elevated as the market participants look for some confirmation of the near term market breakout By Michael Hevern MDS Trading Desk For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research MDS Financial Advisory Services offers general advice on trading options to generate consistent steady income on your investment portfolio Call 1300 610 024 for further information Tags ASX economics news European Debt eurozone debt market wrap Stock Market Analysis Posted in Stock Market Analysis No Comments Quarterly Review Part I Australian Market Sector Performance Q3 2011 Friday October 7th 2011 The third quarter of 2011 was one of the worst since the GFC and has thrown up some major challenges for investors The primary drivers have been the eurozone sovereign debt crisis the US economy downgrade and the Chinese government slamming on the brakes in an attempt to engineer a soft landing for their economy These factors have combined to cause some major volatility throughout the quarter Global Roundup The devastating European sovereign debt crisis triggered by the PIIGS economies has driven European leaders to develop the European Financial Stability Facility EFSF bailout fund The ESFS requires approval from all 17 nations in the eurozone however this coordination has taken considerable time and has meant that the size of the fund is substantially below what analysts suggest is required to repair the region s financial system Many European banks are facing financial ruin at this point and the IMF said this week that the eurozone is potentially facing a double dip recession in 2012 Commodities prices soared at the start of the quarter particularly for the precious metals However they have crumbled in the past month similar to what happened in the GFC of 2008 when investors attempted to reduce risk in their portfolios by liquidating positions and moving to cash Investors have been focusing on the contracting global growth the eurozone debt crisis and the stand off which played out in the US over increasing their debt ceiling All these factors troubled the markets and even led to a downgrade of the US for the first time in history The Chinese market has lost 13 and the US markets were down over 14 for the quarter The S P ASX 200 has underperformed both plunging 17 in the quarter though it has recovered 2 5 so far this week Another key issue for local investors this quarter has been the Aussie dollar which surged to post float highs of US1 1079 the highest level for 29 years The dollar has now turned around sharply inline with the sell off in commodities and is now trading well below US dollar parity Local exporters are breathing a sigh of relief after being trashed for most of this year Looking ahead the key driver for the global markets this quarter will be the reaction of investors to the effectiveness of the EFSF bailout as European leaders move to address the sovereign debt crisis and the consequent problems with the eurozone financial system In Australia the RBA is expected to leave rates on hold for the near term with a bias towards easing as we move into the end of the year and we had better than expected retail sales figures this week In the commodities space prices have undergone a rollercoaster ride with strength at the start of the quarter followed by a trashing in the final month of the period Gold has been the strongest performer surging to all time highs of US1 910 but it has since plummeted to around US1 600 Copper which is a true barometer of global economic activity has spent most of the quarter trading lower and is down over 30 from its quarterly highs Crude oil continues to trade in a downtrend and is down over 18 for the quarter The news is pointing towards a global economic slowdown and if the European leaders fail in their quest to bailout the PIIGS economies we could be in for a downturn that surpasses the GFC The US economy is trying to get some traction though and their markets are currently at key support levels The Chinese market has been in a downtrend since April this year Australia The Aussie market has underperformed the US and Chinese markets but all markets have traded down significantly in the past quarter The Telecom sector is the only one to have produced positive returns in the past quarter and is also the only sector to be in the green for the year We have taken this opportunity to review the Australian share market s quarterly performance on a sector by sector basis as illustrated below Chart ASX market performance to date by sector for the quarter starting 1 July 2011 Year on Year Performance The year to year rolling performance YoY as shown by the black bars has been negative for all sectors except Telecommunications The chart illustrates how tough the last 12 months have been for all other sectors we can see that the Telecommunications sector has shown strength for the year up 16 7 percent YoY with all other sectors performing dismally The worst performers have been the Consumer Discretionary sector down 22 the Info Tech sector down 19 and the Energy sector down 17 while the Industrials Materials and Financials sectors are all down over 13 for the year Consumer Staples and Health Care are down 7 while the Utilities sector has relatively outperformed and is down only 4 for the year Monthly Performance We have seen the market volatility spike over the past couple of months which culminated in the flash crash in August September saw a retest of the August lows October has started off positively but there are still concerns over the sovereign debt crisis in Europe which needs to be addressed near term The performance for the month of September as shown by the green bars has been diabolical with the exception of the Telecom and Consumer Staples sectors which have managed to eke out gains of only 1 2 percent while Health Care was down only 2 for the month The Utilities Industrials and Financials sectors were all down over 5 for the month The worst monthly performers included Energy down 8 and Materials down nearly 14 percent due to the plunging commodity prices over the past month Quarterly Performance for 2011 Q3 The quarterly performance QTR as shown by the blue bars has also been dismal with the exception of the Telecommunications sector The defensive sectors have relatively outperformed with the Utilities and Health Care sectors down only 2 and 4 respectively All the other sectors have plunged over 11 for the quarter with the worst performer being the Materials sector down over 19 The market correlation across all sectors has been uniform with all sectors being trashed for the quarter There has been nowhere to hide in this market except for Telstra but if the Europeans get their act together with the EFSF bailout we could be setting up for a rally into the end of the year Those subscribers who follow the recommendations of MDS Financial Research get timely recommendations as individual stocks start to move Sign up here for a trial of our MDS Financial Research Report In summary the Telecommunications sector is the only sector that has consistently outperformed for the year and there has been a clear dumping of materials energy and financials stocks Interest rates are unlikely to rise and the Aussie dollar is likely to remain below parity in the medium term Given the sector performances over the past quarter and year on year there are a number of strategies traders and investors can use including relative strength comparisons or mean reversion 1 Investors who use relative strength comparisons and look to trade strong stocks in strong sectors can only trade the Telecommunications Sector Telstra that is for trading into Q4 of 2011 which is very limiting Using relative strength we would expect the Energy Materials Financials and Consumer Discretionary sectors to continue to under perform 2 Investors who use a mean reversion strategy may want to concentrate on Energy Materials Financials and Consumer Discretionary which have been underperforming the broader market For a margin of safety look to stocks that are paying consistent dividends and have balance sheets that are conservatively geared The investment themes that could trigger a rebound in this quarter are economic recovery in the eurozone a recovery in commodity prices the Aussie dollar to remain below parity corporate earnings to improve interest rates and inflation to hold or drift lower continuing M A activity Note ASX 200 AXJO Energy AXEJ Materials AXMJ Financials AXFJ Utilities AXUJ Discretionay AXDJ Staples AXSJ and Healthcare AXHJ Codes in brackets are for use in the Market Analyser software Use these codes to review indices and drill down to examine the stocks within If you are not a Market Analyser user sign up now for a free software trial Stay tuned for further analysis of the quarterly performance as next time we will examine the Australian market performance with stocks broken down by market capitalisation By Michael Hevern Head of Research Tags ASX asx sectors European Debt quarterly review Stock Market Analysis Telecommunications us economy Posted in Stock Market Analysis No Comments Weekly Market Wrap US Rally Continues As Eurozone Leaders Take Action Friday October 7th 2011 Globally markets again started the week on a sour note but gradually gathered steam after news that European leaders and the Federal Reserve will take action to prevent another GFC type situation unfolding in Europe due the contagion of the debt crisis in the region Volatility continues to be exceptional and there still does not appear to be any respite in sight Many markets have been testing key support levels again and the jury is still out as to whether we are seeing a sustained market rally or if it s just a short covering rally in a secular bear market Commodities remain a key focus particularly for our markets Gold is still hovering around the US1 650 level while crude oil tested the US75 level this week but is now trading above the US80 level Copper which is the true barometer of global economic activity is attempting to rebound but has been sold off heavily and has even tested the 3 00 per pound level For the quarter that just ended the Aussie market has underperformed the Chinese market which was down 13 and the U S markets which were down over 14 for the quarter The S P ASX 200 plunged 17 in the quarter but so far this week the ASX has recovered over 8 from its lows We discuss this further in the Analyst s Eye this week In the latter part of the week we have seen money pour back into the markets European leaders have stepped in to support a number of European banks which are facing financial ruin however the IMF has forecast that the eurozone is potentially facing a double dip recession in 2012 Globally financials continue to be volatile due to concerns over capital adequacy but now the European Commission is considering a bank rescue package which should help the situation There are still short selling bans in a number of European countries In Europe the markets have actually been led by positive momentum in the US where the markets are trying to get some traction and are hovering above key support levels European regulators must act on implementation of the EFSF sooner rather than later otherwise the global financial system could seize up once again as it did during the GFC Asian markets have been reacting to what is happening in Europe and the US as well with the Japanese market bouncing off its lowest level since April 2009 The Chinese Shanghai Composite has been closed for the week but still sits at 2 year lows Our View for the Australian Market We did get the end of the quarter recovery we were looking for and the buying has continued this week The S P ASX 200 index is again testing resistance around its 50 day moving average Stock prices will to continue to experience volatility near term as long as the index holds below the 4250 level which is at the top level of its falling channel We said last week that the US dollar is the key now the US dollar index is running into resistance and this is why we are seeing some support in the commodity markets The Australia market started the week under selling pressure again However Australian investors and fund managers held their nerve as the week progressed and as US investors led a charge higher into the end of the week Local traders have also cheered the proposed ECB resolution to eurozone debt crisis There is a note of caution however as not all 17 nations have yet ratified the EFSF bailout fund and there are questions around whether there are enough resources in the fund to prevent contagion if the Greek problems spread to the bond markets of Spain and Italy The materials stocks in the Aussie market have been under considerable selling pressure in the past month but they have rebounded sharply this week as commodities prices bounced off support Financials have also rebounded in a short covering rally and as they enter into the dividend paying period The Australian government held a Tax Forum talkfest this week and there have not been any great controversies to come out of these meetings We are still in a trader s market but the bears have relinquished some their control this week as we saw short positions being unwound The Aussie market has managed to trade above the key psychological level around the 4000 level this week and 4080 looks to be a key pivot but watch for resistance around 4250 Investors should be looking to utilise options strategies to protect themselves in this type of market as there continue to be issues over eurozone bank solvency and the agreement over EFSF bailout fund so be nimble when trading and manage your risk Remain attuned to the news from overseas particularly from China Germany and the US regarding their economic growth and debt issues The Chinese market has been closed this week and America releases its monthly Non Farms Payroll employment report tonight The S P ASX 200 is currently trading at 4145 having again found support at the 3855 level this week Key levels for the index next week will be 4250 and 3950 Expect to see further volatility going forward as the market participants look for some guidance for the direction of the market Use options strategies to reduce your risk in these volatile times The MDS Financial Advisory Services team can help with this and we have also discussed some of the strategies in our Analyst s Eye articles recently We regularly update you on trade recommendations so for Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research MDS Financial Advisory Services offers general advice on trading options to generate consistent steady income on your investment portfolio Call 1300 610 024 for further information By Michael Hevern Head of Research Tags Asian Markets ASX Australian market European Debt European Markets sp asx 200 Stock Market Analysis US markets Weekly Market Wrap Posted in Stock Market Analysis No Comments Weekly Market Wrap Global Markets Offer Wild Ride For Traders Friday August 12th 2011 Global Markets Offer Wild Ride For Traders Globally investors have been jumping from the bull to the bear camps on a daily basis The week started off negatively with the downgrade of the U S credit rating from AAA to AA and things got worse when rumours circulated that the French economy was the next to be downgraded Financials have been the hardest hit especially those with exposure to European debt though resource and energy stocks have also had selling pressure due to the volatile commodities prices In the U S the CBOE Market Volatility Index known as the fear gauge surged to levels not seen since the GFC The global money managers have made it clear to governments around the world that they need to get their houses in order otherwise the markets will face continued volatility Economies are generally in a better position than back in the days of the GFC because the corporations that survived have reined in debt and shored up their balance sheets However there are still issues with bank asset valuations in the U S and Europe and then there is the faltering global economic growth Commodities prices have been volatile this week with gold reaching a touch under US1 800 per ounce while crude oil has bounced off the US80 level and copper prices have bounced off the US4 00 per pound level U S Markets U S stock markets experienced the highest volatility in decades Investors started the week selling after the U S credit downgrade but the Fed has stepped in pledging to keep interest rates near zero at least through mid 2013 but failed to commit to a QE3 and the central bank also sharply downgraded its view of the U S economy These comments initially pushed volatility higher as traders tried to forecast what is in store for the U S in the medium term Markets have been wild as investors have been coming to terms with the U S credit downgrade and concerns over the health of the European banks with the chances of a global economic recession looming large if the global sovereign debt issues are not addressed Overnight investors were buoyed by improving weekly employment data news that rumours of a French downgrade were refuted and corporate reports also showed improvement The Dow Jones Index has now closed above the 11 000 level for the second biggest percentage gain this year and it was the fourth straight move of 400 points or greater a first in the Dow s history In the broader markets the S P500 index and the tech heavy Nasdaq closed up over 4 led by the financials energy and mining stocks Overnight the Dow Jones was up 4 0 at 11 143 the S P 500 index closed up 4 6 at 1 172 the Nasdaq ended up 4 7 at 2 493 and the smaller cap Russell 2000 was up 5 4 European Markets European stock markets have had a horrid few weeks with the German market down 20 up from losses of 25 the French market down 20 also up from losses of 25 and in the U K the market is down 13 up from 18 losses These markets have experienced extreme volatility alongside the U S The catastrophic selling in Europe was triggered by fears that France s AAA credit rating will be the next to be downgraded Banks across the continent sold off heavily and concerns also continued to prevail regarding Italian and Spanish government bonds The selling has eased overnight as the rumours of a likely downgrade of the French credit rating were withdrawn which triggered a recovery Banking shares have begun to recover and finished strongly higher after being savaged in the previous session The European Central Bank ECB has also arranged an urgent meeting for next week to discuss the current sovereign debt situation The ECB continues to buy Italian and Spanish government bonds in an attempt to stabilise borrowing costs for both countries and easing concerns of the European debt crisis Overnight the Stoxx Europe 600 index closed up 3 2 while in London the FTSE 100 index was up 3 3 at 5 168 the German DAX was up 3 3 at 5 780 while in France the CAC was up 2 9 at 3 090 Asian Markets Markets in Asia have broken through key psychological levels In Japan the Nikkei Stock Index closed below 9 000 and in Hong Kong the Hang Seng Index has pushed below the 20 000 level while in China

    Original URL path: http://blog.traderdealer.com.au/tag/european-debt/ (2013-02-02)
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  • Oil Stocks | Online Stockmarket Trading Update
    come in TPI Transpacific Industries Group is being sued for more than 4 6 million by its former boss and major investor in relation to the company s equity raising WRG Water Resources Group the the water treatment company surged over 70 after its subsidiary signed a US95 million deal to supply water in Africa Ex dividend Date None Market Summary ASX to open lower US UK Europe lower Commodities Stock Index down 0 8 Gold Stocks Index dow 0 8 Oil Stocks Index down 0 6 US ADRs Broadly Lower BHP down 1 3 RIO down 1 0 AWC down 2 2 ANZ down 1 5 NAB down 2 2 NEM down 0 2 JHX down 2 4 NWS down 0 6 By Michael Hevern Head of Research For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research Tags Asian Markets Commodities European Debt European Markets Oil Stocks Stock Market Analysis us market news us unemployment Posted in Morning Wrap Stock Market Analysis No Comments Monday 24th May 2010 Morning Wrap Monday May 24th 2010 Morning Market Wrap Bargain Hunters See Value US Stocks closed higher Friday led by financial companies up over 4 after the US senate passed a financial overhaul bill as bargain hunter stepped in The SPI Futures is below key level of 4400 the ASX is set to open higher as the SPI closed up 58 points or 1 3 at 4 358 US positive lead Huge volatility in the past few weeks will impact this weeks trading with key levels this week are 4000 and 4600 US Markets US Markets Sees Bargain Hunters and Short Covering Senate Passes Banking Reforms The Dow Jones Industrial Average rose 1 25 to 10193 but was down 4 0 for the week off 2 3 YTD its largest weekly drop since early May when the market dropped in the flash crash The Standard Poor s 500 climbed 1 5 to 1088 but was down 4 2 for the week off 2 5 YTD All of the S P 500 s sectors ended Friday s session in the green led by financials Metals and materials companies enjoyed a relief rally on Friday as investors stepped back into the most beaten down commodity based stocks The Nasdaq Composite rose 1 1 to 2229 but was down 5 0 for the week off 1 8 YTD UK markets FTSE finished down 0 2 at 5 063 down 4 0 for the week and the German DAX finished down 0 7 down 3 7 for the week In Europe the concerns over the debt issues eased as they saw a bounce in Miners and Financials Strength in commodity based stocks supported markets from further falls SP500 up 1 5 at 1 088 down 4 2 for week DOW up 1 3 at 10 193 down 4 0 for week Broadly Higher Investors Bargain Hunt Despite Europe Debt Issues NASDAQ up 1 1 at 2

    Original URL path: http://blog.traderdealer.com.au/tag/oil-stocks/ (2013-02-02)
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  • Us Unemployment | Online Stockmarket Trading Update
    rising for a seventh consecutive month while November factory orders in Germany fell nearly 5 erasing any gains made the previous month In London the FTSE 100 index gained 0 5 as Vodafone Group PLC shares climbed 1 2 after Goldman Sachs upgraded the mobile operator to Buy from Neutral saying it sees a potential total return of 55 over the next two years The FTSE 100 index closed up 0 5 or 25 points at 5 650 the German DAX was down 0 6 or 38 points at 6 058 while in France the CAC was down 0 2 or 8 points at 3 137 Spain was down 0 5 and Italy ended down 0 8 Asian Markets Asian stock markets declined on Friday as concerns that the European debt crisis was deepening overshadowed improving data out of the US Most markets closed down over 1 1 for the session as financial stocks continue to be weighed down by concerns over the eurozone debt crisis Chinese stocks did advance on Friday as energy producer PetroChina jumped after Beijing raised a threshold of its windfall tax effectively reducing tax payments for oil producers Banks and resource stocks also rose as bargain hunters stepped in after sharp recent losses In China the Shanghai Composite is trading around 34 month lows which is a major concern for 2012 China has been seen as the engine for global growth and the government is still in the throws of engineering a soft landing which is becoming increasing dificult to orchestrate In China the SSE Composite closed up 0 7 or 15 points at 2 163 while in Hong Kong the Hang Seng Index was down 1 2 or 220 points at 18 593 and in Japan the Nikkei 225 Index was closed down 1 2 or 98 points at 8 390 The South Korean KOSPI was down 1 1 for the session Commodities The Dollar Index was higher at 81 25 on a lower Euro while the Australian Dollar last traded lower at 1 02 Commodities prices traded lower For the session the benchmark crude NYMEX for January delivery was down 0 3 or 0 25 to settle at US101 93 Copper prices are seeking a support level as Copper for January delivery was up 0 3 or 0 9 cents at US3 4275 January gold was down 0 2 or US3 30 at US1 621 ASX News Today BNO Bionomics has signed a 345 million deal with US company Ironwood Pharmaceuticals to develop a potential anti anxiety drug SUN Suncorp Group says it expects natural hazard costs for the last half of 2011 to be in the range of 360 420 million as claims from the Christchurch earthquake and Melbourne hailstorm come in TPI Transpacific Industries Group is being sued for more than 4 6 million by its former boss and major investor in relation to the company s equity raising WRG Water Resources Group the the water treatment company surged over 70

    Original URL path: http://blog.traderdealer.com.au/tag/us-unemployment/ (2013-02-02)
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