European markets edge lower after big rally

LONDON: European stock markets gave up some of their previous session’s gains on Tuesday as the enthusiasm generated by upbeat US economic figures had run its course. A positive US manufacturing survey from the Institute for Supply Management had helped stocks recover as Wall Street opened on Monday, pushing the Dow Jones industrial average, for [...]

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World stocks propped by China data; Europe dips

LONDON: World stocks were underpinned by on Monday by surprisingly strong China manufacturing data as European shares pared losses after the German central bank denied it would stop accepting the bonds of several euro zone countries as collateral. European shares had eked out modest gains at the start of the second quarter after data on [...]

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Nifty seen opening lower; F&O expiry watched

NEW DELHI: The 50-share Nifty index is expected to open lower on Thursday tracking weak Asian markets while investors will keep a close eye on March F&O expiry today. According to experts, market is likely to remain choppy and turn volatile as the session progresses towards expiry of March F&O series. The Nifty index ended [...]

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Sensex provisionally ends 1.3% higher; HDFC, Infosys, ITC up

NEW DELHI: The 30-share sensitive index provisionally closed 1.2% higher at 17280.06 on Tuesday led by gains in HDFC, Infosys and ITC. The BSE Sensex sharply extended gains to touch its day’s high of 17366.84, citing unnamed finance ministry officials, reported the government would not target the so-called participatory notes in a blanket manner under [...]

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European shares rise on bargain hunting

LONDON: European shares rose on Monday in a technical bounce, after recording their steepest weekly loss since the start of the year, as investors searched for bargains and positioned themselves for a potential strong German Ifo figure. The STOXX Europe 600 Basic Resources index, which was amongst the worst performers in the previous week, was [...]

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European markets edge lower after big rally

Posted by admin on April 3rd, 2012

LONDON: European stock markets gave up some of their previous session’s gains on Tuesday as the enthusiasm generated by upbeat US economic figures had run its course.

A positive US manufacturing survey from the Institute for Supply Management had helped stocks recover as Wall Street opened on Monday, pushing the Dow Jones industrial average, for example, up to its highest close since December 2007.

The buying momentum carried through into the Asian session but came to a halt as Europe’s bourses opened.

With little on the calendar, trading is expected to remain fairly muted ahead of the next batch of US economic news later, including the publication of the minutes to the last rate-setting meeting of the Federal Reserve. Last week, stocks rallied in the aftermath of an indication from Fed chief Ben Bernanke that the central bank will retain its super-loose monetary policy for a while.

“Caution now persists as we wait for today’s economic data, which is concentrated in the US,” said Ben Critchley, a sales trader at IG Index. “As well as factory orders for February, the latest set of Fed minutes will be released, and the bulls will be hoping that the wording of the meeting will reveal a continued accommodative stance.”

In Europe, the FTSE 100 index of leading British shares was down 0.1 per cent at 5,871 while the CAC-40 in France fell 0.1 per cent to 3,458. Germany’s DAX was flat at 7,058.

Wall Street was poised for a flat opening following Monday’s stellar gains _ both the Dow futures and the S&P 500 futures were 0.1 per cent lower.

The US will likely remain the main focus in the markets all week, though a long four-day Easter weekend in much of Europe, starting Friday, may limit the impact of monthly US nonfarm payrolls data on that day. The payrolls figures often set the market tone for a week or two after their release.

Trading was equally subdued in the currency markets, with the euro up 0.2 per cent at $1.3348.

Earlier, stocks in Asia mostly rallied on the back of the previous session’s gains in Europe and the US

Hong Kong’s Hang Seng jumped 1.3 per cent to 20,790.98, while South Korea’s Kospi added 1 per cent to 2,049.28. But Japan’s Nikkei 225 index fell 0.6 per cent to close at 10,050.39, as a strengthening yen threatened to cut into the profits of exporters that depend heavily on overseas sales. Mainland China markets are closed for public holidays.

Oil prices edged lower alongside equities, with the benchmark New York rate down 71 cents at $104.52 a barrel.

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World stocks propped by China data; Europe dips

Posted by admin on April 2nd, 2012

LONDON: World stocks were underpinned by on Monday by surprisingly strong China manufacturing data as European shares pared losses after the German central bank denied it would stop accepting the bonds of several euro zone countries as collateral.

European shares had eked out modest gains at the start of the second quarter after data on Sunday showed China’s official Purchasing Managers’ Index (PMI), which covers large factories, jumped to an 11-month high of 53.1 in March, beating forecasts.

The pan-European FTSEurofirst 300 index fell, with traders citing media reports that the Bundesbank would not accept bonds of several countries, including Portugal, as collateral.

The Bundesbank said it continued to accept all euro zone sovereign bonds, after which the index pared losses to around 0.2 percent from around 0.4 percent.

MSCI’s all-country world equity index was little changed on the day, having inched up 0.1 percent earlier. Emerging stocks added 0.3 percent after the Chinese data, though continuing signs the world’s second biggest economy is slowing down kept demand for riskier assets in check.

Equivalent euro zone figures, which had little impact on the market, confirmed earlier estimates that the manufacturing sector shrank for an eighth month, painting a grim outlook for the region as it struggles to generate the growth needed to tackle its debt.

European shares snapped a three-day losing run on Friday, with the pan-European FTSEurofirst 300 index ending the quarter with a gain of 6.8 percent, its best first-quarter performance since 2006, after euro zone finance ministers agreed to boost rescue funds for the currency bloc.

“The Chinese economic data have reduced the fear of a ‘hard landing’ in China,” said Roger Peeters, strategist at Close Brothers Seydler Research in Frankfurt.

CAUTION

Some cautioned not to read too much into the stronger-than-expected figure from China.

“I don’t think the economy has improved a lot,” Nomura economist Zhang Zhiwei said. “If you take out the seasonality factor, this year’s jump is less than the historical average. From that perspective, it’s not a very strong signal.”

Safe-haven government bond prices retreated, with German Bund futures down 41 ticks at 138.07 but pulling off the day’s lows after the reversal in European equities.

German 10-year yields were four basis points higher at 1.83 percent while U.S. 10-year yields were half a basis point up at 2.22 percent.

The relatively upbeat Chinese data hoisted the Australian dollar more than a full U.S. cent to a peak of $1.0470 before it slid back to $1.0384.

The yen, which tends to gain when investors’ appetite for risk sours, was broadly weaker while the euro inched 0.1 percent lower against the dollar to $1.3344.

“There’s a brighter footing for riskier currencies but I would take the China data with a note of caution as small and medium-sized companies are underperforming and in the bigger picture there are still signs of a moderate slowdown in China,” said Lee Hardman, currency strategist at BTM-UFJ.

Equivalent U.S. data will also be released, with investors keen to see whether the recent positive momentum in the world’s largest economy can be sustained.

The dollar was last down 0.1 percent against a basket of currencies at 78.91.

Gold prices edged lower as investors digested the Chinese and European data. Spot gold last traded 0.2 percent lower at $1,663.40 an ounce after positing a 6.6 percent rise in the first quarter, although prices fell 1.6 percent in March, a second straight month in the red.

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Nifty seen opening lower; F&O expiry watched

Posted by admin on March 29th, 2012

NEW DELHI: The 50-share Nifty index is expected to open lower on Thursday tracking weak Asian markets while investors will keep a close eye on March F&O expiry today.

According to experts, market is likely to remain choppy and turn volatile as the session progresses towards expiry of March F&O series.

The Nifty index ended volatility marred session in the negative territory on the back of weak global cues and ahead of March series expiry on Wednesday. Banks, realty, oil & gas and power space led the decline while FMCG and pharmaceuticals ended modestly higher.

“Negative sentiment which prevailed through the month is expected to keep the market under pressure towards expiry. Stock specific selling on account of pending rollover positions in expected,” said Sahaj Agrawal, Associate Vice President (Derivatives), Kotak Securities.

“Expect expiry of March series to be around 5200-5225. April series Put writing in lower strikes suggests buying/accumulating at lower levels for a bounce back to 5400-5500 levels,” added Sahaj Agrawal.

Nifty has been holding on to the crucial support level of 5170 since the last couple of days. It had tested a low of 5174.90 on Monday and 5184.65 on Tuesday, and so far managed to hold on to the 200 days moving average near 5150.

Overnight, US stocks declined as sliding oil and metals prices gave investors a reason to sell. However, S&P 500 is still up 11.8 percent so far for the first quarter.

“Data showed new orders for U.S. manufactured goods rose 2.2 percent in February, falling short of a consensus forecast for a 3 percent gain, while a gauge of future business investment also missed forecasts, casting a shadow on the manufacturing sector’s support of the recovery,” said a Reuters report.

The Dow Jones industrial average fell 71.52 points, or 0.54 percent, to 13,126.21 at the close. The Standard & Poor’s 500 Index slipped 6.98 points, or 0.49 percent, to 1,405.54. The Nasdaq Composite Index declined 15.39 points, or 0.49 percent, to 3,104.96.

Asian shares eased for a second day in a row on Thursday, as investors limited their risk exposures on concerns about growth prospects in China and US.

Oil also fell on data showing U.S. crude oil inventories posted the largest weekly build since July 2010.

Copper inched up, clawing back from two percent losses the prior session, after U.S. manufacturing data hinted at a weak start to the year. While Gold regained some strength as bargain hunters resurfaced after prices slipped more than 1 percent in the previous session.

Japan’s Nikkei 225 index was trading 0.9% lower at 10,090.62 and Hong Kong’s Hang Seng index was trading lower at 20,651.12, down 1.1%. South Korea’s Kospi index was trading 1.2% lower at 2005.45. China ‘s Shanghai index was trading at 2268, down 0.7%.

At 08:00 AM, Nifty India stock futures in Singapore were down 48 points at 5,154.00, indicating a negative opening in the domestic market.

Stocks to watch:

EIH Associated Hotels Ltd will be in focus after the Oberoi group firm said its board has approved raising of up to Rs 110 crore through a rights issue. In a filing to the BSE, the company said it will issue equity shares of face value of Rs 10 each to its existing shareholders.

Coal India Ltd will be watched after the company’s board will meet again on Thursday to approve the new draft fuel supply agreement.

Fortis Healthcare Ltd will be in focus after the country’s second largest hospital chain, is planning to strike a deal with private equity (PE) investors. Ahead of that, the promoters will sell part of their stake in the company through the stock auction route.

State-owned Oil and Natural Gas Corporation (ONGC) cornered six blocks – four as operator and two as minority partner — out of the 16 areas that the government awarded for oil and gas exploration.

United Breweries Ltd will be watched on reports that have begun with Heineken to sell a portion of the 40.57% stake owned by United Breweries Holdings, the main promoter company in United Breweries, the makers of Kingfisher. Heineken owns 37%, and could become the majority owner if the transaction fructifies.

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Sensex provisionally ends 1.3% higher; HDFC, Infosys, ITC up

Posted by admin on March 27th, 2012

NEW DELHI: The 30-share sensitive index provisionally closed 1.2% higher at 17280.06 on Tuesday led by gains in HDFC, Infosys and ITC.

The BSE Sensex sharply extended gains to touch its day’s high of 17366.84, citing unnamed finance ministry officials, reported the government would not target the so-called participatory notes in a blanket manner under its newly proposed rules targeting tax avoidance.

According to reports, the ministry has said fears of P-Notes investors are misplaced. GAAR will be applicable if P-notes fail to meet 1 in 4 tests which include abnormality, misuse & abuse, lack of commercial purpose and bonafide purpose test.

There will be no blanket application of GAAR on P – Notes and they will be differentiated as separate asset class.

The Sensex ended at 17280.06.17, up 227.28 points or 1.33 per cent. It touched intraday high of 17366.84 and low of 17061.16.

The National Stock Exchange’s Nifty closed at 5243.15, up 58.90 points or 1.1 per cent. The broader index touched a high of 5277.95 and low of 5184.65 in trade today.

BSE Mid-cap Index closed 0.01 per cent lower and BSE Small-cap index moved 0.07 per cent down.

BSE consumer durable index closed 2.1 per cent higher, BSE FMCG index rose 1.8 per cent, BSE realty index was up 1.82 per cent and BSE metal index gained 1.3 per cent.

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European shares rise on bargain hunting

Posted by admin on March 26th, 2012

LONDON: European shares rose on Monday in a technical bounce, after recording their steepest weekly loss since the start of the year, as investors searched for bargains and positioned themselves for a potential strong German Ifo figure.

The STOXX Europe 600 Basic Resources index, which was amongst the worst performers in the previous week, was one of the standout gainers up 0.7 percent.

By 0812 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.3 percent at 1,082.99 points after falling 2.5 percent for the week following weak PMI figures in China and the euro zone and disappointing housing data in the United States.

The index was also recovering after hitting a support level on Friday – its 50 day moving average at 1,069.

“We are seeing a technical bounce, the index has moved nicely off its 50-day moving average and has the potential to move back to recent highs near the 1,100 level,” said Joe Rundle, head of trading at ETX Capital.

“It will be all about the economic news. Germany is key to Europe and a strong figure will see read across over the market and will show the weaker backdrop in Europe is not hitting businesses.

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Asian shares inch up; China, euro zone PMI eyed

Posted by admin on March 22nd, 2012

TOKYO: Asian shares inched up on Thursday but remained in ranges as investors waited for manufacturing data from China and the euro zone due this session for more clues about the state of their economies.

The MSCI Asia Pacific ex-Japan index was up 0.1 percent while Japan’s Nikkei average opened down 0.3 percent.

Data from Japan showed the country logged in a trade surplus of 32.9 billion yen in February – the first surplus in five months – against a forecast for a 120 billion yen deficit, lifting the yen against the dollar to about 83.15 yen from 83.44 yen before the data was released.

“During Asian hours, key market drivers are Japan’s trade data and China’s PMI,” said Yuji Saito, director of the foreign exchange division at Credit Agricole Bank in Tokyo.

“Otherwise, markets will likely continue to consolidate and are more likely to be affected by quarter-end supply and demand flows than headlines news,” he said, adding that overbought markets will come under selling pressures while oversold assets will see bargain hunting.

Safety preference pushed down U.S. Treasury yields on Wednesday, and given the recent correlation between U.S. debt yields and the dollar, the U.S. currency may be undermined if Treasury yields keep falling, Saito said.

HSBC’s flash report on China’s factory activity is due at 0230 GMT, and any weak reading could further undermine market sentiment which has been weighed by concerns about slowing growth and demand from the world’s second largest economy.

Asian credit markets were subdued early on Thursday, with the spread on the iTraxx Asia ex-Japan investment-grade index barely changed.

EUROPE WORRY RESURFACES

While few expect the euro zone’s debt crisis to be resolved anytime soon given that the structural reforms crucial to setting their finances back to health require several years, investors were yet again reminded of the long road ahead.

Portugal’s core public deficit nearly tripled in the first two months of 2012, showing a deepening economic slump is denting tax collection and stoking concerns the country may miss its budget targets and follow Greece in requiring more rescue funds.

Italian and Spanish debt prices took a beating on Wednesday on concerns about Spain’s slow progress in boosting its finances, sending Spanish 10-year bond yields to a one-month high of 5.40 percent and dragging benchmark Italian yields up to a one-week high of 5.0 percent.

Italy faces stiff opposition to its severe austerity measures, with the country’s largest trade union calling a general strike over labour reforms on Wednesday.

The euro was steady at $1.3219, but off a two-week high of $1.3286 reached on Wednesday.

On the positive side, Germany’s RWI economic institute nearly doubled its 2012 forecast for growth in Europe’s largest economy to 1.0 percent due to an improvement in the global outlook and stabilising financial markets.

The worst of the euro zone crisis is over and the European Central Bank will act if inflation risks grow, ECB President Mario Draghi said in a German newspaper interview released on Thursday.

Investors will now look to manufacturing data in Europe to be released on Thursday, with flash PMI estimates from across the euro zone forecast to show an overall improvement versus February, according to a Reuters poll.

Wednesday’s data from the United States was also promising. U.S. home sales fell in February, but upward revisions to the prior month’s pace and the first yearly increase in prices in 15 months pointed to steady improvement in the housing market. Brent oil rose 8 cents to settle at $124.20 a barrel on Wednesday. U.S. crude futures eased 0.3 percent to $106.99 a barrel on Thursday after settling up $1.20.

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European shares briefly turn negative

Posted by admin on March 21st, 2012

FRANKFURT: European shares erased early gains on Wednesday and turned briefly negative as investors await US housing data, which should provide evidence of further economic recovery but could also pose a threat to monetary easing policy.

By 0944 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.1 per cent at 1,093.73 points, after dropping to 1,092.83.

On Tuesday the index lost 1.1 per cent, marking its biggest pull-back in two weeks as concerns about China’s slowing economic growth dented investors’ appetite for risky assets.

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European shares fall continuing to consolidate

Posted by admin on March 20th, 2012

LONDON: European shares fell for a second day on Tuesday, as investors continued to take profits after a rally to an eight month high last week, although U.S. housing starts data could give the market a boost if it shows signs of a recovery.

BHP Billiton featured among the top fallers, down 1.9 percent after the miner said China iron ore demand growth was flattening.

By 0807 GMT, the pan-European FTSEurofirst 300 index of top shares was down 0.4 percent at 1,100.73 points after hitting an eight month high last week.

“We are seeing some profit taking, the FTSEurofirst 300 index is still above the 1,100 level following a strong rally and there has not been any news to drive it forward,” said Joe Rundle, head of trading at ETX Capital.

“It is struggling to hold onto the recent gains. Our clients are now looking to go short and sell into the rally. If there is some improvement in the U.S. housing starts it may give a little push upwards.”

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Singapore shares fall, trade at day’s lows

Posted by admin on March 19th, 2012

Singapore shares surrender early gains, with the benchmark index trading at its lowest in about a week, after Hong Kong shares saw a late sell-off and European markets opened lower.

The Straits Times Index fell 0.8 per cent to 2,987.5, off the day’s high of 3,029.9. On Friday, the index hit its highest level in seven months.

Global Logistic Properties Ltd, which owns warehouses in China and Japan, and Singapore Exchange Ltd

were among the top losers on the benchmark index, with declines of 2.7 per cent and 2.1 per cent, respectively.

The main index for Hong Kong shares was in positive territory for most of the session, but closed 1 per cent lower, dragged by Chinese banks on fears loan growth could fall short of quarterly targets ahead of corporate earnings for the sector that start this week.

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Asian shares boosted by US Fed upbeat assessment of the economy

Posted by admin on March 14th, 2012

HONG KONG: Asian markets mostly rose on Wednesday after the Dow on Wall Street hit a more than four-year high, while the US Fed gave an upbeat assessment of the economy and top US banks passed crucial stress tests.

The dollar soared to an 11-month high above 83 yen, sending Tokyo shares surging, while the sense of optimism was boosted by a surprise move by Fitch to raise Greece’s credit rating out of default.

Tokyo jumped 1.53 percent, or 151. 44 points, to 10,050.52 — its first close above 10,000 since July — while Sydney gained 0.93 percent, or 39.6 points, to 4,287.2 and Seoul rose 0.99 percent, or 20.04 points, to 2,045.08.

However, in the afternoon Hong Kong pared most of its early gains and was just 0.30 percent higher while Shanghai fell 1.80 percent after Chinese Premier Wen Jiabao warned of a risk of a property bubble, denting hopes of an easing of tight real estate rules.

Traders were following the lead of the Dow Jones Industrial Average, which jumped 1.68 percent to 13,177.68 — its best finish since December 31, 2007 — thanks to a string of good news.

The US central bank, following its monthly policy meeting Tuesday, upgraded its view of the world’s number one economy, saying the jobs market and consumer and business spending had improved since January.

While acknowledging it was still facing problems the Fed, which kept interest rate on hold at record lows, said: “Labor market conditions have improved further; the unemployment rate has declined notably in recent months but remains elevated.”

“Strains in global financial markets have eased, though they continue to pose significant downside risks to the economic outlook.”

The comments contrasted with the downbeat tone of Fed chairman Ben Bernanke in testimony to Congress on February 29, when he said consumer sentiment and spending capability remained weak and was holding back the economy.

The statement came as another batch of data showed retail sales surged 1.1 percent month on month in February, the fastest pace in five months. Consumer spending accounts for about 60 percent of gross domestic product in the United States.

Sentiment in the financial sector was also lifted after the Fed said 15 US banks, including JPMorgan Chase and Wells Fargo, had passed tests to see if they would be able to withstand another economic meltdown.
The move allowed the banks to announce a surge in dividend payments.

On currency markets the dollar briefly rose to 83.24 yen in Tokyo, its highest since April, before settling back to 83.20 yen in the afternoon.

The greenback was trading at 82.90 yen in New York late Tuesday.

The sell-off in the safe-haven yen suggested increasing optimism about the global economy, said Jonathan Lewis, chief investment officer at Samson Capital Advisors in New York. “If you’re not worried, what do you need a safe-haven for?” he asked.

And Barclays Capital said the greenback could reach 84 yen within a month and 88 yen over the new few months.

European concerns eased further when Fitch Ratings upgraded Greece to “B-” with a stable outlook from restricted default after its successful bond swap with private creditors last week that wiped around 100 billion euros off its debt.

It said the move “significantly improved Greece’s debt service profile and reduced the risk of a recurrence of near-term repayment difficulties on the new Greek government securities”.

The euro bought $1.3030 and 108.44 yen in early Asian trade on Wednesday, compared with $1.3075 and 108.38 yen in New York late Tuesday.

On oil markets New York’s main contract, light sweet crude for delivery in April was up a cent to $106.72 while Brent North Sea crude for April delivery shed nine cents to $126.13.

Gold was at $1,671.50 an ounce at 0610 GMT, compared with $1,693.90 late Tuesday.

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