Both key Russian indicators slipped below the psychological mark of 1,300 points, with the MICEX having slid 1.92 percent in early trade to 1267.17 and the RTS also sharply lower by 1.67 percent, trading at 1243.26. On Tuesday the trading session ended lower for Russian shares. The MICEX dropped sharply losing 2.54 percent while the RTS also ended 2.9 percent lower. The negative dynamics were mostly due to the downgrade movement on the raw materials markets and also escalating concerns over Federal Reserve’s monetary policy. On Wednesday June 12 Russian floors were closed for a national holiday. Most European stock markets ended Wednesday with losses amid growing concerns over global stimulus and with investors digesting the release of a batch of economic data. London’s FTSE 100 index ended the day 0.64 percent lower at 6,299.45 points, the DAX 30 in Frankfurt slid 0.96 percent to close at 8,143.27 and Paris’ CAC 40 dropped 0.44 percent to 3,793.7, falling under the 3,800 mark for the first time since April 23. Wednesday’s decline followed Tuesday’s lower close of the European stocks, on growing investors’ concerns that major central banks would start pulling out their stimulus efforts that have been helping the markets in 2013. On Thursday June 13 the European Central Bank will publish its monthly bulletin. Italy will hold an auction of 10-year government bonds. Switzerland will release official data on producer price inflation, a leading indicator of consumer inflation. In the US stocks also closed lower on Wednesday, with the Dow Jones Industrial Average having closed down 0.8 percent, at 14,995.23. The S&P 500 dropped 0.8 percent, to 1,612.52. The tech-rich NASDAQ Composite fell 1.1 percent, to 3,400.43. On Thursday the US will release official data on retail sales and consumer spending update. Canada is to release official data on new house price inflation. Uncertainty over the Fed’s monetary policy also dragged Asian stocks down on Thursday. In Japan the Nikkei lost 6.4 percent as a strengthening yen hurt exporters. The Nikkei ended down more than 840 points at 12,445.38, its lowest level since early April. Mainland China’s Shanghai Composite lost 3.3 percent after the markets reopened after long holidays, as investors reacted to the downbeat economic data released over the weekend, including the monthly trade and inflation figures. In Hong Kong the Hang Seng Index slipped 3.1 percent, and South Korea’s Kospi lost 0.9 percent. Australia’s S&P/ASX 200 fell 1.1 percent, having dropped more than 10 percent from the highs reached in May. Oil is currently trading lower with Brent crude losing 0.4 percent to $103.1, and WTI 0.57 percent lower at $95.5. … Read More
Market Buzz: Falls on negative economic news backdrop
On Monday Russian stocks ended on the negative territory with the MICEX slipping 0.64 percent to 1335.25, and RTS losing 1.06 percent to 1300.54 on falling oil prices and mixed sentiment on the European floors. Asian stocks were mixed Tuesday after the previous day’s rally, with all eyes focused on a Bank of Japan policy meeting. The Nikkei 225 dropped 1.06 percent to 13370.81 on the news that the Bank of Japan held its asset-buying and other policy elements unchanged Tuesday and offered no fresh moves to curb the recent volatility in the markets. South Korea’s Kospi slipped 0.68 percent to 1919.59, while the mainland China stock exchange remains closed for the holiday. Hong Kong’s Hang Seng fell 0.94 percent to 21411.81 on weak Chinese economic data. Consumer inflation in the world’s second largest economy slowed down to a three-month low of 2.1 percent. Producer prices dropped to 2.9 percent, the lowest since September 2012. Stocks in Australia were up Tuesday, adding 0.38 percent after a long weekend. The US dollar edged lower in early Tuesday trading, with the yen higher after Japan’s central bank offered no new easing moves in its latest policy decision. The Bank of Japan held its asset-buying and other policy elements unchanged Tuesday, while using slightly more upbeat language on the economy. Monday’s session on Wall Street ended mixed, having advanced on a revised credit outlook for the United States from negative to stable presented by Standard & Poor’s, one of the world’s largest credit rating agencies. The Dow Jones Industrial Average closed slightly lower, at 15,238.52. The S&P 500 and the NASDAQ Composite ended flat. Stocks in Europe closed slightly lower on Monday, pulled down by analysts’ warnings that growth in China would slow further after weaker-than-expected economic data. “The macro data for May have confirmed that the economy is stuck in stagnant growth again after a brief rebound. The risk for growth is now predominantly on the down side,” CNBC quotes Xianfang Ren, senior economist at HIS, who underlined that persistent deflation in producer prices and the pullback in fixed asset investment growth are two major dangers. The UK’s FTSE100 slipped 0.18 percent closing at 6,400, while the German DAX added 0.64 percent and France’s CAC40 shed 0.21 percent. Brent oil futures remained under $104 per barrel on Tuesday after the US nearly doubled its estimate of its shale oil reserves. Brent is currently 0.3 percent lower trading at $103.6, while the US oil, WTI, is also down 0.1 percent trading at $95.9. … Read More
Market Buzz: World stocks rally following upbeat data from US
On Friday, June 7, Russian floors ended the week with gains: The MICEX advanced 2.05 percent to close at 1,343.90 and the RTS climbed 2.14 percent to end at 1,314.41. European shares also closed sharply higher on Friday after the US government’s employment report showed that employers added slightly more jobs than expected in May. The Stoxx Europe 600 index jumped 1.3 percent to close at 295.40. The German DAX 30 rose 1.9 percent to 8,254.68. On Friday, Germany’s Bundesbank cut its growth outlook for Germany for 2013 and 2014 after the European Central Bank again forecasted a eurozone recovery to begin later this year. However, Friday’s industrial data for Germany beat expectations, with April’s figure up 1.8 percent from March. The UK’s FTSE 100 index gained 1.20 percent Friday to close at 6,411.99, while France’s CAC 40 index closed 1.5 percent higher ending at 3,872.59. European shares are expected to open lower on Monday. On June 10, Switzerland will publish its official data on retail sales and the government’s measure of consumer spending. France will also release data on industrial production. US floors edged up Friday following the optimistic data releases. The Dow Jones Industrial Average rose 1.38 percent to close at 15,248, the S&P 500 rose 1.28 percent to 1,643, and the Nasdaq Composite climbed 1.32 percent to 3,469. One key factor closely watched by global investors was the US jobs report. Federal Reserve Chair Ben Bernanke has repeatedly said that consistent improvement in the labor market would mean that the central bank could start tapering off its bond-buying stimulus program. Non-farm payrolls climbed by 175,000 jobs in May, against 149,000 new jobs added in April. The report beat economists’ expectations, which predicted 159,000 new jobs would be added in May. Private payrolls rose by 178,000 in May, compared to 157,000 in April. The consensus forecast said 175,000 new private jobs would be added in May. Asian markets rose Monday on strong US jobs data: Tokyo’s Nikkei 225 advanced 3.8 percent to 13,363.18, while Hong Kong’s Hang Seng fell 0.4 percent to 21,509.91. Markets in China and Australia were closed for holidays. WTI oil rose slightly Monday, extending gains posted late last week, and is currently around $96.2. Brent futures rose towards $105 per barrel on Monday, and crude oil is currently trading at $104.3. … Read More
Market Buzz: Starting summer lower
On Friday the Russian stock exchange ended the session lower with the MICEX having lost 0.81 percent to close at 1350.17, while the RTS slipped 1.41 percent to 1331.43. Europe also ended last week with a decline of major indicators. The UK’s FTSE100 dropped 1.11 percent to 6583.09, the DAX in Germany slid 0.61 percent to 8348.32, while in France the CAC 40 retreated 1.19 percent to end at 3948.59. On Monday Spain, Italy and the UK will publish data on manufacturing activity, while Switzerland is to publish its SVME PMI. The US floors ended Friday sharply lower despite expectations of an upward movement. Investors’ sell-offs were related to due to mixed economic reports. The Dow Jones industrial average slid more than 200 points, while some 100 were lost in the last 15 minutes alone, marking the worst drop in six weeks. The Dow closed down 1.4 percent at 15,115.57. The S&P 500 ended 1.4 percent lower at 1,630.74. The NASDAQ Composite declined 1 percent to close at 3,455.91. The Institute of Supply Management will release a closely-watched report on manufacturing activity in the US Friday. Asia was mixed on Monday after contradictory data from China. Over the weekend, China’s National Bureau of Statistics said the country’s official PMI for May rose to 50.8 from 50.6 in April. That topped the 50.1 reading economists expected. In this light Hong Kong’s Hang Seng added 0.36 percent in Monday’s trade, while the Shanghai Composite also advanced 0.10 percent. Japan’s Nikkei 225 traded significantly lower, losing 2.17percent after the International Monetary Fund warned Japan that the yen is weak enough, as opposed to its earlier comments saying the Japanese yen was overvalued. Statement from the European Central Bank chief Mario Draghi who predicted a “very gradual recovery” to start in the eurozone later this year also contributed to the confusion. Oil is currently trading slightly lower with Brent losing a mere 0.05 percent and trading at $100, while WTI is 0.1 percent down trading at $92. … Read More
Gold Trader: “Stock Market May Crash 10-20% In Next 5-10 Days, Will Create Setup For Bubble Phase In Gold”
It was a powerful conversation as Gary indicated the S&P 500 is at its most overbought level in nearly 40 years, and may crash 10%-20% within a few trading days as a result. … Read More
Market Buzz: Cheered by resumed trade in US and UK
Tuesday ended with the Russian stock market on positive ground, thanks to growing oil prices and optimistic exterior outlook. The MICEX ended the session 1.4 percent higher at 1398, while the RTS advanced 1 percent to close at 1399. European floors posted strong gains on May 28, as the UK and the US stocks reopened after the long holiday weekend. The benchmark Stoxx 600 index advanced 1.3 percent to 308.23. London’s FTSE 100 index closed 1.62 percent higher at 6,762.01 points, while the DAX 30 index in Frankfurt added 1.16 percent to 8,480.87 points. In Paris, the CAC 40 climbed 1.39 percent to end the session at 4,050.56. Italy’s stock exchange in Milan ended up 2.10 percent at 17,520 points, while the Spanish IBEX 35 added 1.77 percent to end at 8,511.3. US stocks are back on track with the upward tendency, which has prevailed on the US floors this year bringing record highs to major indicators. Market was cheered by the US home prices, which rose the most in seven years, while consumer confidence reached a five-year high. As stock prices rose investors sold bonds, sending interest rates higher. The Dow Jones industrial average rose set another record Tuesday, bouncing back from last week’s loss to close 0.69 percent higher at 15,409.39. The S&P 500 index also gained to close 0.63 percent higher at 1,660.06, while the NASDAQ Composite Index added 0.86 percent, ending at 3,488.89. The US stock market is recovering from last week’s losses, when both the Dow and the S&P 500 went through their first losing streak in a month. Investors are still worried that the Federal Reserve might pull out of its economic stimulus program, which has supported the gains on the stock market. On Wednesday investors will be eyeing news from the West for drivers on May 29. Among the major updates is the upcoming Germany’s release of preliminary data on consumer price inflation, which accounts for the majority of overall inflation, as well as fresh unemployment figures. Spain is to hold an auction of 10-year government bonds. UK will release industry data on retail sales, an important economic indicator. Elsewhere in the world, the Bank of Canada is to announce its benchmark interest rate and publish a statement outlining economic conditions and the factors affecting the monetary policy decision. Most Asian markets rose Wednesday following the new record of the Dow Jones in the US. Investors in the region, however, also remain concerned that the Federal Reserve may taper its bond purchasing. Mainland China’s Shanghai Composite climbed 0.5 percent. In South Korea Kospi gained rose 0.5 percent, Taiwan’s Taiex added 0.7 percent. Hong Kong’s Hang Seng however was down 0.6 percent after a two-day rally, while the S&P/ASX 200 in Australia slipped 0.1 percent. In Japan the yen strengthened on Wednesday as Japanese stocks fell. The dollar lost 0.1 percent to 102.26 yen. The Nikkei struggled to stay up following recent major losses and gained 0.1 percent to 14,326.46. Oil is currently slightly down, with Brent trading 0.1 percent lower at $104, while WTI is 0.2 percent lower, trading at $94.70. … Read More
Market Buzz: Stocks down on Fed news, China’s flash PMI indicates contraction
On Wednesday, Russian stocks ended the trading session with significant gains after Federal Reserve Chair Ben Bernanke’s testimony. By the end of the day on May 22, Russia’s MICEX had added 1.79 percent to close at 1448.42 and the RTS advanced 2.02 percent to 1461.93.Wednesday’s main financial news was Bernank’s indication during a Q&A that the US central bank could begin phasing out its $85 billion-per-month bond-buying program at one of its ”next few meetings.”However, later in the session the Fed released minutes from the May FOMC meeting that were less optimistic: There is not yet a firm consensus on when to begin drawing down the stimulus program. The decision will likely be significantly influenced by the trajectory of the economy in the coming months.The news spooked US investors, with major indices reacting immediately and posting steep losses throughout the day. The Dow Jones Industrial Average fell 0.52 percent to 15,307, the S&P 500 slipped 0.83 percent to 1,655 and the tech-centric Nasdaq dropped by 1.11 percent to 3,463.US home sales saw a moderate uptick in April, but failed to meet the forecasted 4.98 million. On Thursday, the US will publish its weekly report on initial jobless claims and official data on new home sales.European stocks closed higher on Wednesday after Bernanke spoke of the Fed’s intention to ”maintain highly accommodative monetary policy as long as needed.” The UK’s FTSE 100 rose 0.53 percent to 6,840.27 – a 13-year high – while in Germany the DAX 30 set a new record, climbing 0.69 percent to 8,530.89 points. In Paris, the CAC 40 rose 0.37 percent to 4,051.11, a two-year high.On Thursday, European Central Bank President Mario Draghi will make a hotly anticipated speech in London. Draghi is expected to comment on further ECB cuts and potential negative deposit rates.Also on Thursday, the Eurozone, Germany and France will each release preliminary data on manufacturing and service sector activity, and Spain will hold 10-year government bonds auction. The UK will release official data on retail sales, revised data on Q1 economic growth and a report on business investment.Stocks in Asia have mostly declined on Thursday after China released weak flash PMI data. The flash HSBC Purchasing Managers’ Index for May fell to 49.6, sliding below the 50-point mark demarcating expansion and contraction for the first since October. Investors fear that the economic recovery in the world’s second-biggest economy may have stalled.Japan’s Nikkei 225 index has fallen 2.4 percent to 15,256.56, Hong Kong’s Hang Seng is down 1.6 percent to 22,879.74, South Korea’s Kospi lost 0.7 percent to 1,980.42 and Australia’s S&P/ASX 200 dropped 1.7 percent to 5,081.40. Benchmarks in Singapore, Thailand and Taiwan also fell.Oil is continuing its downward slide, with Brent losing 0.9 percent to trade at $101.6 and WTI down 1.1 percent to $93.4. … Read More
