US stocks slipped on Wednesday as a five-month rally that pushed the market to a new 2 1/2-year high started to shows signs of fatigue. Federal Reserve Chairman Ben Bernanke told a congressional committee that the labour market remains sluggish and he continues to believe that inflation will remain subdued. Wall Street's reaction to Bernanke's comments was muted.
Thursday, February 10, 2011
McDonald's lifts Dow for seventh day; volume light
The Dow notched a seventh straight day of gains on Tuesday, but light volume suggested that investors don't believe the more than five-month rally has the legs to keep going. Surprisingly strong sales by McDonald's boosted optimism on consumer spending and drove the Dow's gains on what turned out to be the quietest day of trading so far in 2011, with total volume about 17 percent below last year's daily average.
Nikkei average declines
Japan's Nikkei stock average edged lower to come off a nine-month high on Wednesday, as profit-taking in bank shares erased earlier gains made on upbeat earnings guidance from Toyota Motor Corp. Weakness in Shanghai shares after a rate hike from China, its second move in six weeks to rein in surging inflation, helped dampen sentiment while investors also grew cautious before the settlement of Nikkei 225 February options on Thursday.
UK's top share index slides
Britain's top share index closed down on Wednesday, hurt by heavyweight stocks trading ex-dividend and miners following metals prices lower. The FTSE 100 closed down 39.04 points, or 0.6 percent, at 6,052.29, having closed up 0.7 percent on Tuesday at its best level since May 2008.
European shares fall
European shares fell on Wednesday, retreating further from 29-month highs hit earlier this week, weighed down by miners on concerns over demand from China, though positive corporate results offered some support. Several heavyweight UK stocks, including BP, Shell and GlaxoSmithKline, traded ex-dividend, partly leading the UK FTSE 100 to fall 0.6 percent and underperform German DAX and French CAC 40.
Republicans grill Bernanke over inflation threat
Members of Congress sharply questioned Federal Reserve Chairman Ben Bernanke Wednesday over whether the Fed's policies are raising the risk of rising inflation in the months ahead. House Budget Committee Chairman Paul Ryan, a Republican, said he is concerned that the Fed won't be able to detect inflation until "the cow is out of the barn" and inflation is already spreading dangerously through the US economy.
US job growth, inflation still too low, says Bernanke
US unemployment remains too high for policymakers' comfort despite signs of strength in the economic recovery, Federal Reserve Chairman Ben Bernanke said on Wednesday. In testimony to the US House of Representatives' Budget Committee that largely echoed a speech he delivered last week, Bernanke also warned about the dangers of unsustainable budget deficits.
Cooperation in Congress will aid economy: Geithner
US Treasury Secretary Timothy Geithner on Wednesday strongly pitched increased bipartisan co-operation among lawmakers as vital for building business and market confidence in the economy's growth. Days ahead of a new budget that the Obama administration hopes will mollify some Republican anger over spending, Geithner told a forum sponsored by The Atlantic magazine that Congress needs to pull together to build confidence.
UK goods trade deficit hits record high
Britain's goods trade deficit unexpectedly hit a record high in December, underscoring doubts about UK competitiveness, though the figures were worsened by bad weather and a tax-related jump in aircraft imports. The data chime with a sharp fall in UK GDP at the end of 2010 and deal a further blow to hopes that exporters will be able to drive growth in 2011 when both the government and consumers are tightening their belts.
US job openings dip
US job openings slipped in December, a government report showed on Tuesday, but a decline in layoffs supported views of a gradual labour market recovery. Job openings, a measure of labour demand, eased 139,000 to a seasonally adjusted 3.1 million, the Labour Department said in its monthly Job Openings and Labour Turnover Survey.
Coca-Cola sales beat estimates
Coca-Cola Co reported higher-than-expected quarterly sales, as it gained market share and also saw growth in each of its major markets for the first time in years. Shares of the world's largest soft-drink maker rose 1.5 percent. The results on Wednesday are Coke's first to include its North American bottling operations, and improvement in the company's home region was a sign of success for that acquisition.
McDonald's rebounds in Europe
McDonald's Corp posted stronger-than-expected global sales at established restaurants as demand in Europe rebounded, coming in far above Wall Street estimates. The results sent McDonald's shares up more than 3 percent in morning trading. "Europe was the concern, and Europe blew it through," Oppenheimer analyst Matt DiFrisco said. "That will give people a little bit of increased confidence."
Monday, January 3, 2011
Wall Street Weekahead: A bout of profit taking likely
A bout of profit taking seems likely early next year after the S&P 500 ended its best December in almost two decades, but stocks may have further to run at the start of 2011. Technical indicators are pointing to a strained market, though recently stocks have been maintaining the momentum of late 2011.
London investors set to catch their breath ahead of 2011
Investors on the London stock market are set to catch their breath after the market gained more than nine percent in 2010 and with 2011 shaping up to be a difficult year. The FTSE 100 index dropped 1.81 percent over the week to end the week at 5,899.94 points. Nevertheless it still managed a gain of 9.2 percent over the year.
Global Markets Weekahead: three risks to start 2011
Financial markets enter 2011 with many investors persuaded that the world economy is on the mend and that riskier assets such as stocks are set to do well.
Dubai's global bourse hopes end but options remain
Dubai's ambition to become an international equity hub may have been put on ice by its need to repay debts, but the Gulf Arab state could still become a magnet for global equity funds if the UAE consolidates its bourses and earns MSCI emerging market status.
Middle East markets: Dubai attracts new money, Egypt retreats
Dubai's index advanced to a three-week high on Sunday, led by property-linked stocks, as investors built new positions on the first trading day of 2011. Other regional bourses also rose, with the exception of Egypt, whose benchmarkdropped after surging to a seven-month high on Thursday.
Commodities stocks to get fresh boost in 2011
Robust demand from emerging markets and a loose US monetary policy should boost commodity shares in 2011, though base metals could face a short-term hit as China acts to cap inflation, a senior equity trader said. Daniel Harris, head of dealing at London-based H2O Markets, said precious metals miners looked likely to benefit from further metal price gains in 2011, after a 28 percent rise in gold and an 82 percent rise in silver in 2010.
Saudi bourse regulator fines Banque Saudi Fransi
Saudi Arabia's financial regulator has slapped a $13,000 fine on major lender Banque Saudi Fransi for violating stock market disclosure rules, the watchdog said on Sunday. Fransi, in which France's Calyon holds a minority stake, was fined 50,000 riyals ($13,330) for failing to swiftly disclose changes in its board, the Capital Market Authority (CMA) said in a statement on the bourse website.
Nasdaq looking at new foray into Japan
US-based Nasdaq OMX Group is looking at having a second stab at setting up a market in Japan with the Osaka Securities Exchange, hoping to attract investors from emerging Asian economies, domestic media reported.
China funds cut equities weighting heading into 2011
Mutual funds in China cut their recommended equity weightings for a second straight month in December, reflecting continued worries about policy tightening, the latest monthly Reuters poll of fund managers showed.
Obama ready to make tough choices on budget: aide
US President Barack Obama is willing to make difficult choices on spending cuts when he unveils his budget next month, a senior aide said on Sunday. But White House economist Austan Goolsbee said it was important not to "skimp" on important investments like education.
Oman to spend $78 billion in five-year economic plan
Oman plans to spend 30 billion rials ($77.92 billion) in its new five-year economic plan to 2015, including about 6 billion rials allocated to oil industry, the Gulf state's national economy minister said on Sunday. The bulk of spending in the new plan, which runs 2011 to 2015, will go toward roads, hospitals and education.
New Kindle becomes all-time best seller
Online retailer Amazon on December 27 said its latest Kindle had become the company's best-selling product ever. Without giving details of the number of units sold, the company said sales of its third generation e-reader had beat sales of "Harry Potter and the Deathly Hallows."
Hitachi, General Electric may struggle on nuclear plant goal
Hitachi Ltd and partner General Electric may struggle to hit a long-term orders target for nuclear power plants due to signs of waning demand in the United States, the president of Hitachi said.
Sony to launch PlayStation smartphone
Sony's long-rumoured PlayStation Portable smartphone is set to be launched in North America and Europe as early as the spring, according to a Japanese newspaper report on December 29.
China to scrap tax cuts for small passenger cars
China said Tuesday it would increase the purchase tax for small passenger cars next year, as authorities continue to wind back stimulus measures introduced to combat the global financial crisis. Expectations that the government would soon scrap the tax cut has fuelled demand for cars in the world's biggest auto market, with total sales accelerating in November from the previous month.
When British economist Edward Hugh set up a blog that repeatedly predicted the euro could not survive, few people took notice. Not any more. With the European single currency facing its greatest challenge since it entered into general circulation in 2002 in the wake of the bailouts of eurozone members Greece and Ireland, his posts are now read by thousands of bankers, financial analysts and other policymakers around the world.
US securities regulators are looking at how investors trade shares in four privately held companies, according to reports, but the inquiry may broaden to the exchanges and trading platforms that facilitate these transactions, experts said.
European debt crisis a boon for British blogger
When British economist Edward Hugh set up a blog that repeatedly predicted the euro could not survive, few people took notice. Not any more. With the European single currency facing its greatest challenge since it entered into general circulation in 2002 in the wake of the bailouts of eurozone members Greece and Ireland, his posts are now read by thousands of bankers, financial analysts and other policymakers around the world.
No need to raise funds for SIFI rules: Mizuho CEO
Japan's Mizuho Financial Group can meet additional capital requirements without raising funds if it becomes subject to stricter global rules under consideration for banks deemed "too big too fail", its CEO said.
Sunday, January 2, 2011
Size acts as barrier to growth of Asian hedge funds
Two smaller Asian hedge funds that have bet on Thai and Southeast Asian stocks have made a killing this year, racking up more than 80 percent gains and ranking among the world's 100 top-performing hedge funds.
SEC could focus on secondary market platforms
US securities regulators are looking at how investors trade shares in four privately held companies, according to reports, but the inquiry may broaden to the exchanges and trading platforms that facilitate these transactions, experts said.
European debt crisis a boon for British blogger
When British economist Edward Hugh set up a blog that repeatedly predicted the euro could not survive, few people took notice. Not any more. With the European single currency facing its greatest challenge since it entered into general circulation in 2002 in the wake of the bailouts of eurozone members Greece and Ireland, his posts are now read by thousands of bankers, financial analysts and other policymakers around the world.
South Korea's KAMCO to buy $4.4 billion bad loans
Korea Asset Management Corporation (KAMCO) will buy about 5 trillion won ($4.38 billion) worth of bad loans from financial institutions and assets from companies under restructuring this year, local media said on Sunday. The planned purchase amount is a third of KAMCO's purchases set for 2010 a year earlier.
Confident German firms still see risks in 2011
Germany's upbeat companies see the eurozone debt crisis and uncertainty over economic growth in the United States as the main risks for 2011, a Reuters poll of four major business groups showed on Dec 28. Buoyed by growing domestic demand that is helping the economy power ahead of weaker eurozone peers, however, the concerns contrast sharply with record confidence as business morale rose to its strongest level since 1991 in December.
No need to raise funds for SIFI rules: Mizuho CEO
Japan's Mizuho Financial Group can meet additional capital requirements without raising funds if it becomes subject to stricter global rules under consideration for banks deemed "too big too fail", its CEO said.
Wall Street ends year with strong gains
US stocks closed out a year of double-digit gains and the S&P's best December since 1991 with a quiet and little changed session on Friday as investors found no reason to make big bets ahead of the new year. Improving economic indicators late in 2010 and stimulative measures from the US Federal Reserve propelled gains in the second half of the year, overcoming headwinds from Europe's sovereign debt crisis and continued high US unemployment.
South African stocks, rand jump in 2010
South Africa's rand ended 2010 near three-year highs and stocks booked gains for a second consecutive year, after 12 months in which investors favoured high-risk assets over underperforming developed markets. On Friday, Johannesburg's Top-40 index of blue chips ended 0.4 percent lower at 28,639.40 points, but up 14.6 percent for the year and a massive 260 percent for the decade.
Toronto stocks index end 2010 on high note
Toronto's main stock index pushed higher on Friday in sparse New Year's Eve trade, as strong metal prices and a rally by miners kept the market on track for its best December in five years and double-digit growth in 2010. The index was up 3.8 percent for the month and 14.4 percent for the year, touching its highest level since August 2008 in the previous session.
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