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
Market Buzz: Little news, little change
Russian stocks climbed on Monday, opening the week with growth in the banking sector, while shares among oil firms fell. The MICEX added 0.4 percent to close at 1406.86, while RTS advanced 0.8 percent to 1417.05 points. VTB and Sberbank were the biggest gainers in the banking sector. Shares of Russian gas giant Gazprom also grew, adding 0.7 percent. Other oil firms saw a minor selloff on Monday: Lukoil shares dropped, along with Tatneft and Surgutneftegaz. E.On Russian also fell on Monday following Friday’s climb, on news of upcoming dividends that will include 100 percent of the company’s net profit.European stock markets opened the week with gains on Monday. Automakers led the growth in Europe after Morgan Stanley revised its estimate on the sector to ‘overweight’ from ‘equalweight.’ The benchmark Stoxx Europe 600 index rose 0.3 percent to close at 309.77. The UK’s FTSE 100 jumped to its highest close since September 2000, having advanced 0.5 percent to 6755.63. Germany’s DAX added 0.7 percent to 8455.83, and France’s CAC-40 grew by 0.5 percent to close at 4022.85.US stocks closed slightly lower on May 20 after a Federal Reserve official hinted that the central bank will soon draw down its $85-billion-a-month bond-buying stimulus program. Federal Reserve Bank of Chicago President Charles Evans said earlier that the stimulus program would continue until the labor market demonstrates significant improvement. Later, however, he downplayed his remarks.The Dow Jones Industrial Average closed 0.12 percent lower to 15,336.05, while the broad-market S&P 500 index ended down 0.07 percent at 1,666.26. The Nasdaq Composite index also fell 0.07 percent to close at 3,496.43. Investors are eagerly anticipating Wednesday testimony by Federal Reserve Chair Ben Bernanke on whether the US central bank intends to end its stimulus program soon.Asian stocks fell Tuesday. Japan’s Nikkei 225 index lost 0.1 percent to 15,341.85. Hong Kong’s Hang Seng declined 0.6 percent to 23,364.36. Australia’s S&P/ASX 200 lost 0.6 percent to 5,176.70. Indices in Mainland China were mixed. South Korea’s Kospi dropped 0.1 percent to 1,979.93. Benchmarks in Singapore, Indonesia and New Zealand fell, while the Philippines advanced. Oil is currently trading mixed, with Brent down 0.01 percent and WTI adding a mere 0.05 percent. … Read More
Market Buzz: American consumerism drives Euro and Asian floors
Russian markets slightly eased Friday, after low crude prices took their toll on last week’s equities. After dropping nearly 4 percent over the past week, the MICEX slightly recovered and gained 0.16 percent to 1404.04, a four-day high. The RTS gained to 0.21 percent, up 2.98 on Asian floors.The rouble strengthened slightly weakened against the dollar, closing at 31.44, down 0.13 percent.European bourses closed high on Friday after disappointing data sparked speculation of further rate cuts by the European Central Bank.All European indices are trading up on Asian floors, after the release of Friday’s US Consumer Report boosted market confidence The Euro Stoxx has climbed 0.40 percent to 2817.99, France’s CAC 40 gained 0.56 percent to 4001.27 and Germany’s DAX is up 0.34 percent at 8,398.00, continuing there nine-day gain streak.The FTSE 100 added 35.26 points, or 0.5 percent, to 6,723.06 at the close in London, the highest since October 2007. The FTSE All-Share Index gained 0.6 percent Friday, marking 12 days of advance, its longest positive streak since 1987. The UK is to release private sector data on house price inflation on Monday.US markets climbed to a five-year high on the positive consumer confidence reports conducted by the University of Michigan, which reported a six-year high in consumer sentiment. The Dow Jones added 0.80 percent and closed at 15,354.40, and the S&P soared 1.03 percent to close at 1650.47.Asian stocks climbed and almost reached a five-year high on Monday, snapping out of a two-day slump. The Nikkei 225 is up 1.35 percent, the Hong Kong Hang Seng index is up 1.57 percent after a bank holiday, and the Shanghai Composite is trading up 0.71 percent. The yen rebounded from its lowest level since October 2008.Australia’s S&P/ASX 200 Index added 0.60 percent and the NZSE index is slightly easing, up 0.03 percent.Oil is slightly down on Monday’s Asian markets, but has fared better than the industrial metals, which took a big hit. Silver hit its lowest price since 2010 and gold dropped for its eighth straight day.WTI dropped 0.24 percent to 95.79 and Brent dropped 0.06 percent to 104.58. … Read More
Market Buzz: Crude recovery could bump Russian floors
The MICEX soared when floors opened, and hit 1.374.55 at 11:39am, but then retreated and closed at 1,373.65, just 0.29 points above its open 1.373.53. The RTS made a significant gain of 0.43 percent and jumped 5.89 points closing at 1.386,47.After a morning rally, European stocks came up short at market closed. The Euro Stoxx closed low at 2,806.70, down 0.10 percent. France’ CAC 40 closed at 3,979.07, down 0.08 percent, and Germany’s DAX closed positive up 0.09 percent, continuing its record gain ascent.In London, the FTSE 100 slid 0.09 percent, bringing its nine-day rally to a halt. US markets disappointed on economic woes. The Dow Jones dropped 42.47 points, down 0.3 percent and closed at 15,233.22. The S&P 500 fell 0.5 percent and closed at 1,650.47. Analysts await the publication of a University of Michigan consumer sentiment and inflation expectations, due Friday. Federal Reserve Chairman Ben Bernanke will speak at 16:00 in New York on Saturday, addressing the US job market, which may cause some volatility in Monday’s trading sessions.Asian stocks were mixed. The Nikkei 225 Index was down 0.27 percent the Shanghai Composite is up 0.87 percent. The Hong Kong market is closed on holiday.Australia’s ASX is up 0.02 percent on Asian floors and the NZSE index is down 0.92 percent. New Zealand will release official price inflation data Friday. The Australian dollar has continued its rapid slide below parity with the USD, falling to the lowest level in 12 months, trading at 97.47 US cents off the back of pessimistic Chinese industrial forecasts and the resurgent US currency. … Read More
Market Buzz: Japan’s GDP wows and gold hits 9-yr low
The MICEX dropped 0.98 percent and will open Thursday at 1391.98. The RTS slightly eased and gained 5.83 points, closing at 1.396.76. European market indices also gained. On Asian floors, the Euro Stoxx is up 0.50 percent to 2,809.58, France’s CAC 40 is up 0.41 percent, and Germany’s DAX is making gains, up 0.28 percent, continuing its record gain ascent. Market gains appeared immune to France’s poor Q1 news which officially put them in a recession, or Germany’s slowed growth report. In London, FTSE 100 added 0.22 percent, continuing its nine-day rally, after the Bank of England revised its growth predictions for the second quarter. On Asian floors, the index dipped down to 6,990.70 at 11:29 GMT. UK lenders led the markets- Royal Bank of Scotland jumped 1.75 percent, Barclays rallied 1.83 percent and Lloyds Banking jumped 1.87 percent. US markets ended high Wednesday. The Dow Jones gained 0.40 percent and closed and the S&P 500 rose 0.51 percent, and the NASDAQ Composite edged up 0.26 percent on the New York Exchange. Analysts await US inflation and unemployment data, set to be released at 13:30 GMT. Asian stocks were mixed on Japan’s solid 3.5 percent GDP increase, easily topping 2.7 percent estimates The Nikkei fell 1.08 percent after it hit a five-year high on Wednesday. Hong Kong’s Seng gained 0.27 percent and the Shanghai Composite added 0.59 percent Australia’s S&P/ASX 200 fell 0.20 percent on falling gold prices and mining weakness. The NZSE also dropped 0.21 percent, and on Thursday announced its 2013-2014 GDP growth forecast of 2.3 percent, compared to last year’s 3 percent growth. Both WTI and Brent are trading low. WTI is down 0.41 percent and trading at 93.91 and Brent is down 0.40 percent at 103.27. … Read More
Are We On The Verge Of Witnessing The Death Of The Paper Gold Scam?
We are moving into uncharted territory. The paper gold scam is rapidly coming to an end. In the long-term, this will greatly benefit those that are holding significant amounts of physical gold and silver. … Read More
Market Buzz: No news means cooler heads, little movement
Russian stocks closed higher on Monday, with the MICEX up 0.38 percent to 1,413.43 and the RTS adding 0.16 percent to close at 1,432.15.European markets saw minor losses on Monday: The LSE was closed for a holiday, while other major indices saw slight corrections following strong gains last week. The German DAX 30 fell 0.13 percent to 8,112.08 points in Monday trading, France’s CAC 40 slipped 0.15 percent to 3,907.04 and the Spanish Ibex 35 closed 0.48 percent lower at 8,503.8 points, with banking shares among the biggest losers.Germany will release official data on factory orders on Tuesday, May 7, and France will publish data on industrial production later in the day.US stocks traded mixed on Monday: The S&P 500 set another record-high close at 1,617.50, up 0.19 percent, the Dow Jones slipped 0.03 percent to 14,968.89, and the Nasdaq grew 0.42 percent to 3,392.97. Bank of America demonstrated strong gains on news of a major mortgage securities settlement.Asian markets saw no big drivers on Tuesday due to cooling sentiments on the better-than-expected US jobs report. Tokyo stocks have come roaring back following a four-day holiday amid strong performance in Europe and the US. Japan’s Nikkei jumped 2.6 percent to 14,083.26 for the first time since June 2008, boosted by the US jobs report. Hong Kong’s Heng Seng and the Shanghai Composite in mainland China are trading flat. South Korea’s Kospi has fallen 0.37 percent, and Australia’s S&P/ASX 200 has declined 0.3 percent.Oil is trading lower, with Brent down 0.4 percent and WTI down 0.6 percent. … Read More
