Trading News and Views: 30 July 2010 Indices: European markets:Stocks in Europe like the FTSE , CAC and DAX closed lower yesterday pressured by falls on Wall Street and banks discouraged positive results from companies. (source: reuters.com). Analysts said worries over the economic recovery remained on investors' minds, with some caution prevailing ahead of US second-quarter gross domestic product (GDP) data due on Friday.
(source: reuters.com). Heino Ruland, strategist at Ruland Research in Frankfurt said: "Most of the numbers kicked in a lot better, but there is still a lack of confidence in the sustainability of economic growth and the sustainability of the earnings stream being extended into 2011."
(source: reuters.com).
FTSE , CAC and DAX down between 0.1-0.7 percent.
(source: reuters.com). US markets:
Weak outlook from technology companies and depressing comments from a Federal Reserve official gave investors little reason to buy and this news straightly took the US stocks like NASDAQ & S&P to end up the day on a dull note. (source: reuters.com). Craig Ellis, managing director of Caris & Company in San Francisco said: "Any time you have a pullback like today, it's going to look like a very good entry point. Investors have shown a lot of interest in adding to well-positioned, big-named stocks, but were looking for a good entry point."
(source: reuters.com). Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut said: "Any time you make the comparison that the US might look like Japan that has to be considered a negative."
(source: reuters.com). The Dow Jones Industrail average dropped 30.72 points to 10,467.16. The S&P 500 dropped 4.59 points to 1,101.54. The NASDAQ Composite Index dropped 12.87 points to 2,251.69.
(source: reuters.com). Asian markets: The Nikkei closed on a negative note as orders were weak for US durable goods and a downbeat take on the US economy from the Federal Reserve spurred profit-taking.
(source: reuters.com). Yutaka Miura, a senior technical analyst at Mizuho Securities said: "Profit-taking is coming to the fore because in addition to worries about the uncertain outlook for the US and European economies, US stocks seem to be peaking out. Domestic earnings are helping support the market as they have been generally strong for the April-June quarter. But as most companies have kept their full-year forecasts, earnings at home alone can't push it higher."
(source: reuters.com) The Nikkei shed 57.25 points to 9,696.02.
(source: reuters.com). The euro recovered high against the dollar which was weak as supportive European data prompted investors to bet the European economy is on a better track compared with the United States. The Euro's advance started early when there was a decline in German unemployment.
(source: reuters.com)
Omer Esiner, chief market analyst at Commonwealth Foreign Exchange said: "Economic resilience in Europe ... despite the formidable sovereign credit headwinds, continues to fuel an unwinding of bets against the euro and push it higher across the board."
(source: reuters.com)The euro was up 0.7 percent at $1.3077. The dollar fell 0.6 percent against the yen to 86.85 yen.
(source: reuters.com) Commodities: Oil Trading:The oil market ended up the day on a positive note as the dollar weakened gainst the euro, boosting demand for oil priced in dollars, and after European data showed eurozone economic sentiment has improved. Oil prices rose inspite of a volatile day in US stock markets.
(source: reuters.com). Summit Energy analyst Matt Smith said: "Today's move seems mostly due to a weaker dollar. It's also a technical move, since oil has been bouncing around in the $76 to $80 range, and found support near the bottom of the range."
(source: reuters.com).
A barrel of crude oil for September delivery settled at $78.36.
(source: reuters.com). Gold Trading:
The precious metal gold rose yesterday when comments from top US Federal Reserve officials stirred economic uncertainty.
(source: reuters.com). Bill O'Neill, partner of New Jersey-based commodity firm LOGIC Advisors said: "gold rose largely due to economic jitters after comments by the two Fed officials, but the drop in investment demand signaled prices could fall further. Gold is higher because we have some nervousness surrounding other markets, but we could see speculative liquidation as it (GLD tonnage drop) shows there is no flight-to-safety type buying."
(source: reuters.com).
The August contract for gold settled up $8 at $1,168.40 .
(source: reuters.com).
Bonds: (Yields move inversely to bond prices) US Bonds: US bond treasury market rose before a report that said that it may show initial jobless claims fell for the third time in four weeks last week, curbing demand for the securities as a refuge. (source: bloomberg.com). Nick Stamenkovic, a fixed-income strategist in Edinburgh at RIA Capital Markets Ltd said: “Risk markets have stabilized and a lot of the bad news is largely factored in, so the upside for Treasuries is limited in the short term. Ten-year yields may hover around 3 percent.” (source: bloomberg.com). Ten-year yields are at 2.99%.
(source: reuters.com). German government bonds were the best performers among euro-region counterparts in the first half, according to Standard &Poor's.
(source: reuters.com). J R Rieger, vice president of fixed income at S&P Indices said: “The first six months of 2010 have seen quite dramatically diverging performance by the sovereign constituents of our Eurozone Government Bond Index."
(source: reuters.com). Two-year german bonds were at 2.78%. (source: reuters.com). Economic Calendar 30 July 2010: 04:00 am Vehicle Production (YoY) (Jun) : Japan This data, scheduled by the JAMA, measures the number of vehicle productions in Japan. As the Japanese car industry dominates a large part of total GDP,the Vehicle Production is an important indicator of business conditions and the overall economic condition in Japan. The more growing number of productions, the more positive (or bullish) for the JPY, while a low reading is seen as negative, or bearish. Previous Rate: 30.6% Consensus Rate: n/a (Low Volatility) Recent Market Action: | | Instrument | Price Change | Indicator | | INDICES | DOW | 0.29% |  DOWN
| | | NASDAQ | 0.57% | DOWN | | | S&P | 0.42% | DOWN | | | FTSE | 0.43% | DOWN | | | CAC | 0.30% | DOWN | | | ESTOXX | 0.37% | DOWN | | | DAX | 0.29% | DOWN | | | HSI | 0.30% | DOWN | | | NIKKEI | 1.64% | DOWN | | CURRENCIES | EURO | 0.3127% | DOWN | | | YEN | 0.5839% | DOWN | | | GBP | 0.1122% |  UP
| | COMMODITIES | GOLD | 0.03% | DOWN | | | OIL | 0.72% | DOWN | | BONDS | BOND 30
| 0.015 yield change
| DOWN | | | BUND 10
| 0.018 yield change | DOWN | (percent changes based on previous day's underlying market data, for indication only) Sources include: Bloomberg.com , Reuters.com, Fxstreet.com, Economicnews.ca, g20.org and FT.com (Any opinions expressed in these updates do not reflect the views of the company, and as such should not be taken as trading advice.) |
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