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Posted by HY Markets on Tuesday July 27, 2010 8:25 am
DJI closed lower on Monday but the high-range close sets the stage for
a steady to higher opening on Tuesday. Stochastics and the RSI are
turning bullish signalling that additional gains are possible
near-term. If the Dow extends this month's rally, June's high crossing
is the next upside target. Closes below Tuesday's low crossing would
confirm that a short-term top has been posted. SPI closed higher on
Monday extending the rebound off Tuesday's low. The high-range close
sets the stage for a steady to higher opening on Tuesday. Stochastics
and the RSI are turning bullish signalling that sideways to higher
prices are possible near-term. If it extends this month's rally, June's
high crossing is the next upside target. NDI closed higher on Monday as
it extended the rally off this month's low. The high-range close sets
the stage for a steady to higher opening on Tuesday. Stochastics and
the RSI are bullish signalling that additional strength is possible
near-term.
Posted by HY Markets on Monday July 26, 2010 2:44 pm
Indices
– Global stocks slid last Wednesday as investors poured money
into safe havens such as bonds after Federal Reserve Chairman Ben
Bernanke said the US economy faces "unusually uncertain" prospects,
adding to worries about the recovery. Stocks sold off after Bernanke
acknowledged the US labour market's continued weakness during the first
day of his semi-annual testimony to members of Congress. Economic
conditions will warrant exceptionally low interest rates for an
"extended period," Bernanke said. Investors have been reluctant to make
big commitments in equities due to growing worry about the economy,
sparked by a recent slew of disappointing economic data. Economic data
on housing has continued to curb optimism of a strong recovery. US
housing starts hit their lowest level in eight months in June, but a
rise in building permits offered hope that home building was poised to
pick up. The Commerce Department said on Tuesday housing starts dropped
5.0 percent to a seasonally adjusted annual rate of 549,000 units, the
lowest since October. It was the second straight month of declines in
groundbreaking activity and was well below market expectations for a
580,000-unit rate.
On Wall Street, each of the three major US stock indexes finished
Friday's session about 1 percent higher with the Nasdaq edging back
into the black for the year. At the close, the Nasdaq had erased its
2010 losses. The Dow Jones industrial average climbed 102.32 points to
end just about 4 points shy of its close at the end of 2009. The
Standard & Poor's 500 Index rose 8.99 points to finish about 13
points below its year-end 2009 close.
Safe-haven assets such as gold and US Treasuries dropped after European
regulators reported that only seven of 91 banks failed the tests, which
were designed to show the impact of Europe's sovereign debt crisis on
its financial institutions. Some analysts questioned the credibility of
the tests after regulators revealed they were applied only to the
bank's trading books, not their banking books. Under the worst stress
scenario, the seven weaker banks, five of them from Spain, would face a
capital shortfall of 3.5 billion euros ($4.5 billion).
Posted by HY Markets on Monday July 26, 2010 3:45 am
DJI closed higher on Friday renewing this month's rally. The high-range
close sets the stage for a steady to higher opening on Monday.
Stochastics and the RSI are turning bullish signalling that additional
gains are possible near-term. If the Dow extends this month's rally,
June's high crossing is the next upside target. Closes below Tuesday's
low crossing would confirm that a short-term top has been posted. SPI
closed higher on Friday extending the rebound off Tuesday's low. The
high-range close sets the stage for a steady to higher opening on
Monday. Stochastics and the RSI are turning bullish signaling that
sideways to higher prices are possible near-term. If it extends this
month's rally, June's high crossing is the next upside target. NDI
closed higher on Friday as it extended the rally off this month's low.
The high-range close sets the stage for a steady to higher opening on
Monday. Stochastics and the RSI are bullish signaling that additional
strength is possible near-term.
Posted by HY Markets on Friday July 23, 2010 5:39 am
DJI closed sharply higher on Thursday following the release of a number
of strong profit reports and better-than-expected existing home sales.
Sales of existing home sales fell 5.1% in June from May levels however;
the drop was smaller than expected. Sales were almost 10% above last
year's level. The high-range close sets the stage for a steady to
higher opening on Friday. SPI closed sharply higher due to positive
earnings data on Thursday extending the rebound off Tuesday's low. The
high-range close sets the stage for a steady to higher opening on
Friday. Stochastics and the RSI are turning neutral to bullish again
signalling that sideways to higher prices are possible near-term. NDI
closed sharply higher on Thursday renewing the rally off this month's
low. The high-range close sets the stage for a steady to higher opening
on Friday. Stochastics and the RSI are turning bullish again signalling
that additional strength is possible near-term.
Posted by CFDTrading on Tuesday July 20, 2010 3:41 pm
Europe Session Key Developments
• Equities Respond to Corporate Earnings as 2Q Results Continue to Emerge
• Investors Remain Uncertain Regarding the Upcoming Bank Stress Tests
European Equity Trade Mostly Lower Amid Corporate Earnings Season, Stress Test Drama
European Markets finished generally lower after Tuesday’s trading
session as corporate earnings reports continue to disappoint and
investors begin to fear the results of the bank stress tests due for
release on July 23rd. As has been a continuing trend throughout the
second quarter earnings season, companies seem to be missing estimates
on their revenue figures, inciting fears that demand remains low and
the economic recovery may not be as sustainable as originally believed.
In the last 24 hours alone, blue chip firms such as Goldman Sachs,
International Business Machines, and Texas Instruments have reported
weaker-than-expected revenue figures. Companies that managed to beat
EPS estimates have seen declines in their respective share prices. As a
result, many of the major indices tested significant psychological
barriers during intraday trading Tuesday. Nearly all of last week’s
gains have been retraced as investors tone down their demand for
riskier asset classes such as equities in favor of safe-haven assets,
i.e. U.S. Treasuries. Bond yields in the United States have been
falling in recent days, possibly in response to growing uncertainty
surrounding the bank stress tests set to come out later in the week. A
rumor emerged yesterday that Hypo Real Estate, a German bank
nationalized during the financial crisis, was the first company to fail
the stress test. The report sent shockwaves through the market as
investors anticipate the other 91 stress tests due for release. Looking
ahead, expect price action to remain choppy as investors avoid risky
investment leading into Friday’s big announcement.
FTSE 100 5139.46 -8.82 -0.17%
Despite testing the 5100 level during intraday trading, the FTSE 100
finished nearly even. On Tuesday, the index lost just 8.82 points, or
0.17 percent, to close at 5139.46. As of today’s closing bell, the
English index has completely retraced its gains from a week ago, when
optimistic earnings reports and a return of risk appetite sent the
index higher towards 5300. The basic materials sector’s performance was
an impressive outlier; it managed to gain 2.87 percent on the day (the
financials sector was the only other index to close higher). A 4.08
percent gain in Rio Tinto PLC’s stock price was the sector’s leading
performer, though all thirteen companies closed in the black.
CAC 40 3,468.02 -18.31 -0.53%
After opening nearly 20 points higher, the CAC 40 index fell sharply
past the psychological 3500 level to close down 18.31 points, or 0.53
percent, to 3468.02. The French index had actually plummeted all the
way to 3420 before retracing during the opening hours of the US
session. Though not as notably as its English counterpart, the CAC
index was led by its basic materials sector. It gained 0.71 percent
Tuesday, led by Arcelormittal, which gained 2.13 percent. The financial
sector was a disappointment (down 0.36 percent), dragged lower by BNP
Paribas, which closed below 47 after peaking near 52 during last week’s
rally.
DAX 5967.49 -41.62 -0.69%
On Tuesday, the DAX 30 index crossed below the psychological 6000
level for the first time since its impressive rally beginning July 7th.
The German index, which has been the best performer among the major
European equity indices this year, lost 41.62 points, or 0.69 percent,
to close at 5967.49 today. The DAX now sits just 0.17 up on a
year-to-date basis; it is the only index that can boast any gains in
2010. The consumer goods sector was the biggest loser on the day,
giving back 1.37 percent as a whole. Daimler AG dragged the sector and
entire index lower, losing 2.84 percent during intraday trading. The
utilities sector was the only one that closed higher, gaining 0.23
percent. However, this sector only comprises roughly twelve percent of
the total index and as such, was unable to counteract the broader
decline.
IBEX 35 10061.30 +131.50 +1.32%
The IBEX 35 was the outstanding performer on Tuesday, earning the
title of the only major European equity index to finish higher. The
Spanish index actually managed to a significant gain, adding 131.50
points, or 1.32 percent, to close back above the significant 10000
level at 10061.30. More than one third of the IBEX’s total increase can
be attributed to its largest component, Banco Santander, which gained
2.13 percent during intraday trading. SAN alone comprises 22.91 percent
of the entire IBEX 35, which makes the broader index particularly
vulnerable to the bank’s performance. The health care and consumer
goods sectors were the only two that finished lower on Tuesday, losing
1.60 and 0.07 percent respectively.
S&P/MIB 19985.32 -132.22 -0.66%
The Italian index lost 132.22 points, or 0.66 percent, to close back
below the 20000 level at 19985.32 on Tuesday. The index has now lost
over 14 percent year-to-date, which is approaching the losses incurred
by the IBEX 35 (-15.73 percent YTD) as the largest among all the major
European equity indices.
Posted by HY Markets on Tuesday July 20, 2010 12:34 am
Indices
– The euro fell broadly on Monday, as investors grew cautious
on the health of European banks ahead of results of stress tests on the
sector, while stocks struggled for direction ahead of the onset of the
U.S. corporate earnings season. The second-quarter earnings season was
looming large for investors who are seeking a clearer picture of the
economy's prospects, as a fading recovery, persistently high
unemployment in the United States, Europe's debt troubles and
commercial real estate losses have kept concerns of a double-dip
recession alive. Markets were also jittery about Europe's fiscal issues
and the health of its financial sector ahead of the stress tests on the
continent's banks, including many regional banks where markets suspect
most of the sore spots lie as it seeks to restore confidence in the
sector. The S&P 500 rose more than 5 percent last week, its best
weekly performance of the year, despite rising fears in the past two
weeks of a double-dip economic recession. U.S. stocks wavered on
Wednesday after disclosures that Federal Reserve policy makers in June
expressed concern about the pace of the U.S. recovery. Earlier in the
day, the government reported that U.S. retail sales in June declined
for a second straight month. Markets were choppy throughout the day as
the fresh signs that economic growth looks sluggish at best dimmed the
prospect of strong corporate results and tarnished the upbeat sentiment
from blow-out quarterly results by top chip maker Intel. Fed policy
makers felt they should be ready to consider additional steps to boost
the U.S. economy if an already softening outlook took a noticeable turn
for the worse. World stocks staged a late-day surge to end flat on
Thursday following positive developments at BP Plc and Goldman Sachs,
while the dollar fell broadly on downbeat U.S. manufacturing and
inflation data. Financial markets all week have battled conflicting
signals from data showing a slowdown in the U.S. economy's recovery on
the one hand and strong corporate earnings on the other hand. The New
York Federal Reserve Bank said manufacturing in New York State hit the
lowest level since December 2009, while U.S. producer prices fell 0.5
percent last month. The negative data overshadowed an unexpectedly
large drop in first-time claims for jobless benefits last week, with
claims falling 29,000 to a two-year low of 429,000 as seasonal layoffs
at factories eased. Global share prices slid on Friday after
disappointing revenue reports from bellwether U.S. corporations
dovetailed with subdued U.S. inflation and slumping consumer confidence
data, driving up the price of Treasuries as investors sought safety.
The combination of reports undermined the fragile confidence in the
global economy.
Posted by HY Markets on Thursday July 15, 2010 4:58 am
DJI closed higher for the seventh day in a row on Wednesday as it extended last Friday's breakout above the 20-day moving average. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. SPI closed unchanged on Wednesday and remains above the 20-day moving average crossing. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. NDI closed higher on Wednesday and above the 20-day moving average crossing confirming that a short-term low has been posted. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term.
Posted by CFDTrading on Wednesday July 14, 2010 3:33 pm
Europe Session Key Developments
• Equities Manage to Hold on to Most of Yesterday’s Gains
• Earnings Reports Continue to Drive Equity Performance
European Equity Trade Nearly Flat Amid Mixed Economic Releases, Earnings
European Markets were mixed during Wednesday’s trading session but
remained mostly even as a whole. After yesterday’s near two percent
increase across the board, all the major indices changed by less than
0.3 percent during an uneventful day of trading. A couple of economic
releases were likely responsible for today’s equity price action,
namely additional corporate earnings reports and the U.S. Advance
Retail Sales report. After yesterday’s closing bell in the U.S., Intel
announced that it had earned 51 cents per share, which greatly exceeded
analyst expectations of 42 cents per share. Intel CEO Paul Otellini
referred to 2Q of 2010 as “the best quarter in the company’s 42-year
history.” However, positive sentiment following the earnings report did
not last long; the U.S. Advance Retail Sales report yielded a
contradictory result, showing that retail sales had slid by 0.5 percent
vs. -0.3 percent expected. Mixed economic indicators led to mixed
sentiment among investors, which could explain the European equity
market’s overall choppy performance. It remains to be seen how the
remainder of the 2Q earnings season will impact risk appetite; if the
reports continue to impress, equity markets could benefit from
investors’ restored desire to resume investing in riskier asset classes.
FTSE 100 5253.52 -17.50 -0.33%
After yesterday’s impressive two percent increase, the FTSE index
retraced slightly as investor sentiment slowed. The index dropped 17.50
points, or 0.33 percent, during intraday trading Wednesday. Most
sectors traded relatively flat on the day with the exception of the
technology and industrial sectors. The tech stocks, which only comprise
1 percent of the FTSE index, managed to post a cumulative 0.94 percent
gain. The largest index-mover on the day was none other than BP PLC,
which lost 2.28 percent and accounted for nearly a third of the broader
index’s decline.
CAC 40 3,632.98 -4.78 -0.13%
The CAC 40 index traded mostly flat Wednesday, losing just 0.13
percent by the end of the European session. The CAC had tested the 3600
level during intraday trading but managed to close at 3632,
successfully holding on to its astounding gains over the last week. As
was the case with the FTSE index, the French index’s technology sector
was the top performer, gaining 1.71 percent. However, its relatively
small size within the sector was unable to counteract the decline
posted in the larger financial sector, which lost 0.75 percent as a
whole. BNP Paribas, after gaining nearly three percent yesterday, gave
back 1.38 percent to close at 50.74.
DAX 6209.76 +18.63 +0.30%
The DAX 30, which has become the strongest major European equity
index, did not disappoint Wednesday. The German index managed to finish
higher by the day’s close, adding 18.63 points, or 0.30 percent, to
close above the 6200 level. Only the utilities and consumer goods
sectors ended lower, which was most likely a retracement from
yesterday’s impressive gains in BMW, Daimler, and Volkswagen. The
disappointing U.S. Retail Sales figure may also have contributed to the
automobile companies’ descent today. Merck was the most impressive DAX
component Wednesday, adding 2.83 percent to close at 63.90.
IBEX 35 10278.50 +19.00 +0.19%
The IBEX 35 finished higher on the day, joining the DAX as the only
major indices to do so. The Spanish Index closed 19.00 points higher,
or 0.19 percent, largely attributable to a strong telecommunications
sector (21 percent of the total index). The telecommunication company
Telefonica added just 0.12 points, or 0.76 percent, but it drove the
IBEX higher 16.43 points on its own. The index was held back by its
largest component, the financial sector, which traded mostly flat on
the day. Banco Santander, Spain’s largest bank, retraced slightly
following yesterday’s gains, losing 0.15 percent on the day.
S&P/MIB 20804.37 -47.48 -0.23%
The Italian Index retraced slightly following yesterday’s impressive
334 point rally to close at 20804.37 after Wednesday’s trading session.
Despite being down nearly 10 percent YTD, the MIB has staged an
impressive rally in the last week, gaining almost eight percent.
Posted by HY Markets on Wednesday July 14, 2010 3:24 pm
Indices
– Global stocks rose on Friday, recording their best week in
nearly a year, while oil prices climbed on hopes that US companies will
report strong earnings this week. But investors were still cautious in
the run-up to the earnings season, buying US dollars and gold, which
rallied more than 1 percent. The earnings season starts on Monday, when
Alcoa, one of the 30 stocks in the Dow, reports after the closing bell.
Wall Street ended the session near the day's highs, but volume was the
lowest of the year. The three major US stock indexes traded flat to
modestly higher for most of the session, with brief forays into
negative territory as investors remained cautious due to fears of a
double-dip recession. Even with the gains of the last week, the S&P
500 is still down 11.5 percent from its most recent closing high in
late April.
Risk appetite increased after weekly first-time US jobless
claims dropped to their lowest level in two months, offering a ray of
hope for economic recovery. New claims for US unemployment insurance
fell more than expected last week and several top US retail chains
reported June same-store sales that topped estimates, supporting demand
for stocks and other higher-risk assets. Unemployment remains painfully
high and other data on Thursday showed that consumers continue to
struggle. Retailers resorted to discounting to keep sales aloft in
June, and the Federal Reserve reported that US consumer credit dropped
more than expected in May.
Europe named 91 banks taking part in a health test of its banking
system on Wednesday, including many regional banks where markets
suspect most of the sore spots reside, as it seeks to restore
confidence in the sector. European Central Bank President Jean-Claude
Trichet said appropriate action would be taken where needed on bank
balance sheets. He spoke after the ECB bank left interest rates on hold
at a record low 1.0 percent. Trichet said the global economy and
foreign trade may recover more strongly than projected, further
supporting euro zone exports. The area's economy, however, is expected
to grow "at a moderate and still uneven pace in an environment of high
uncertainty," he said.
The International Monetary Fund raised its US growth forecast
slightly to 3.3 percent for 2010 and 2.9 percent for 2011, but said
unemployment would remain above 9 percent for both years and inflation
would remain low. The IMF also sees the dollar depreciating moderately
over the next five years, saying it is "somewhat" overvalued and
greater currency flexibility in some countries will be needed to
support the global economy.
Posted by CFDTrading on Tuesday July 13, 2010 3:11 pm
Europe Session Key Developments
• Optimistic Earnings Reports Drive European Equity Indices Higher
• Strong Greek Auction Encourages Investors to Take on Risk
• Downgrade of Portugal Has Little Effect on Market Performance
European Equity Markets Continue to Rebound as Earnings Season Rages On
European Markets closed higher across the board again today, as all
the major indices closed up nearly two percent after today’s trading.
Despite a relatively quiet day of fundamental economic releases, the
session was filled with market-moving news reports that guided investor
sentiment. After yesterday’s closing bell in the US, Alcoa Inc. started
the earnings season off on the right foot by beating analyst
expectations by one cent. This morning, traders were seen shifting
their investment to riskier asset classes after Greece held its first
debt auction since the European Union’s bailout package in May. Greece
sold 1.625 billion Euro worth of 6-month instruments yielding 4.65
percent; the demand for Greek debt was seen as generally encouraging
and managed to restore confidence in the region. Even Moody’s downgrade
of Portugal’s credit rating to A1 was not enough to put off investors
who seemed determined to send equities higher. The rating agency’s
action was not considered particularly surprising or particularly
indicative of the health of the broader European market. Looking
forward, the remainder of the 2Q earnings season will likely guide
equity prices. If corporate earnings can successfully restore investor
confidence in the economic recovery, expect all the major indices to
continue to push higher.
FTSE 100 5271.02 +104.00 +2.01
The FTSE 100 index posted its sixth straight day of gains today,
closing up over two percent at 5271. All ten sectors that comprise the
index rose, but increases in the Industrial and Financial sectors were
particularly noteworthy (2.54 percent and 2.33 percent, respectively).
Barclays PLC managed to add 4.22 percent to close at 312.60. Despite
the index’s recent turnaround in the last week, it remains down 2.62
percent on a year-to-date basis. However, continued optimism throughout
the earnings season could push the FTSE even higher.
CAC 40 3,637.76 +70.10 +1.96%
The French CAC 40 index joined other European equity indices today
by closing almost two percent higher as renewed optimism drives risky
assets higher. All ten sectors in the CAC rose during intraday trading,
with the financial sector posting the most impressive gain of 2.92
percent. The technology sector was the laggard, gaining only 0.91
percent on the day. BNP Paribas, the index’s largest banking company,
gained almost three percent to close at 51.45, now above the midpoint
of its 52-week range. Expect the CAC to follow trend with other
European equity indices throughout the remainder of the week.
DAX 6191.13 +113.94 +1.87%
The German DAX added nearly 114 points to close up 1.87 percent
during today’s trading session. The DAX has proven to be the strongest
major European equity index of 2010; it is the only one to remain in
positive territory YTD, boasting 3.92 percent gains. The index was led
higher by a very strong consumer goods sector that increased by 4.55
percent. The automobile companies, BMW, Daimler AG and Volkswagen were
particularly impressive, gaining 8.29, 5.39, and 5.16 percent,
respectively.
IBEX 35 10259.50 +201.30 +2.00%
The Spanish IBEX 35 gained exactly two percent today, benefitting
from the common market themes that pushed all European equity indices
higher. The index was pushed higher by noteworthy gains in consumer
services and financial sectors, but gains were muted by declines in
both the technology and consumer goods sectors. Banco Santander, the
nation’s largest bank, accounted for nearly one quarter of the index’s
intraday performance. SAN added 2.47 percent to close at 10.13. If
earnings reports continue to impress, expect further gains for the IBEX.
S&P/MIB 20851.85 +333.93 +1.63%
The Italian index managed to close higher yet again, gaining 333.93
points, or 1.63 percent, in today’s trading session. Despite being down
nearly 10 percent YTD, the MIB has staged an impressive rally in the
last week, gaining almost eight percent. The index was led higher today
by Fiat’s 3.5 percent gain; the company’s share price closed at 9.31.
