Posts Tagged ‘forex market’

Chances of European Stocks to open small

Friday, October 9th, 2009

On Wednesday there are chances that European Stocks will be opening low, with little near-term merging of the fresh profits probably following an impressive performance in the earlier session. On Tuesday, the European indexes increased two percent more in spite of the calls opening inferior, especially in the vital resources field. Ben Potter who is a research analyst with IG Markets said that with the prices of gold all time high, the miners also had a strong position in Asia and this area can also be predicted to continue in favor of European business.

Ben said that FTSE 100 of London index came down by nine points at 5128.0 or 0.1 percent, CAC- 40 of Paris came down 0.2 percent or ten points at 3759.0, DAX of Frankfurt came down 21 or 0.3 percent at 5636.0. In addition to this the investors is also anticipating American third-quarter earning numbers, which started later Wednesday with reports submitted by Alcoa. In the meantime on Wednesday, majority of the stock markets of Asia were high. Resources stocks, energy, and gold were shining when the prices of spot gold reached a record high.

Kospi Composite of South Korea increased 0.2 percent, Nikkei 225 of Japan increased 1.1 percent, and Hang Seng of Hong Kong increased 19 percent. American stocks rallied largely for a second session on Tuesday as the investors appeared even more hopeful about the stat of the third-quarter profits season. The index ended up 1.3 percent at 9731.2. The Standard & Poor’s 500 raised 1.3 percent at 1054.6. The profits were lead by the energy corporations which were up by 2.1 percent and materials organizations increased by 1.9 percent and NASDAQ Composite increased at 2103.5.

As for the foreign exchanges, on Wednesday the dollar was mixed in the early hours of European trading. The euro on Tuesday slightly became normal to $1.4719 from $1.4721 in late New York trading. But the dollar came down to Y88.54 from Y88.82. In another place the prices of spot gold reached the record high at $1042 per troy ounce. The metal was at $1042.19 at 0625 GMT, $4.44 high from New York close.

In New York, the lead November Nymex crude oil futures agreement raised 53 cents at $71.41 per barrel, after finalizing 47 cents more on Tuesday. The government bonds of Europe were slightly less following the healthy movements in equities across the world. At 0625 GMT, the December German bund future came down 0.04 at 122.37.

With healthy American gains European Stocks are predicted to open high

Friday, October 9th, 2009

With the healthy session in America which ended up with a triple digit profit to the Dow Jones Industrial Average, European stocks are anticipated to open high on Tuesday. According to James Hughes who is a market analyst at CMC markets, yesterday’s strong session in Europe was followed by some profits in both Asia and America as the traders started to feel optimistic.

James called FTSE of London 100 index up by 13 points, or 0.2 percent, at 5037.1, DAX of Frankfurt up 19, or 0.3 percent at 5527.8 and Paris’ CAC-40 up by fifteen points or 0.2 percent at 3690. Societe Generale will be center of attention after they have declared a capital increase of EUR4.8 billion in Europe. In addition to this, the European banking sector will be probably getting a lift after BoFA-Merrill Lynch improved the sector to overweight. Moreover the Tesco’s first half results will also be center of attention.

Earlier the equity markets of Asia most of them advanced Tuesday, encouraged by the solid gains for American stocks, although most of the markets came down or were making less profits.

The Nikkei 225 stock average became negative in Tokyo, as the continued power of yen in Japan increased the earnings distress for the exporters of the country. The increase in Asia was not able to match the extent of Dow Jones Industrial Average’s 1.2 percent gain on Monday. Yumi Nishimura at Daiwa Securities SMBC said that Wall Street’s rally didn’t signify that rectification in America stocks are over. Nikkei of Japan was 0.2 percent inferior after morning’s 0.7 percent. Kospi Composit of Korea too came down and was at 0.5 percent and Hang Seng Index of Hong Kong added 0.6 percent.

S&P/ASX 200 of Australia was higher by 0.5 percent even though the index came down a little after Australia’s Reserve Bank increased their key cash rate by 24 basis points at 3.24 percent. They became the first bank from the twenty nations in order to start financial tightening. For the session DJIA increased 1.2 percent to 959.7 which broke four day continuous losing.

On major banks, Goldman Sachs increased their rating to attractive Monday morning. Tough balance sheets, big assets, and better earnings, following the year’s worth of acquisition

Amongst other indexes Standard & Poor 500 increased 1.4 percent to 1040.4 and Nasdaq Composite raised 1.0 percent at 2068.1. As for the foreign exchanges, the dollar came down against yen and euro as risk hunger augmented. The participants of the market also noted the reports that every Gulf country is making plans to stop the usage of the dollar for the oil dealing. The euro was trading at $1.4734 which increased from $1.4647 on Monday. The dollar was projected at Y89.03 which decreased from 89.55.

Due to economic slump Singapore dollar expected to drop 7.5 percent

Monday, April 13th, 2009

According to the Goldman Sachs Group Inc the Singapore dollar is expected to witness a drop of 7.5 percent at S$1.63 against the greenback due to the poor economic condition impelled the central bank to support the feeble currency. Mr. Enoch who is a Hong-Kong based economist said that the bank has discontinued their approximation from S$1.55 and made a modification in their GDP (Gross Domestic Product) growth of 2009 to minus eight percent, which is twice the speed of reduction which were formerly shown.

By moving the policy band lower which is planned to take place in the month of April, there are chances that Monetary Authority of Singapore might deteriorate SGD. Lately the Singapore dollar did a business at S$1.5165 against the American currency. In the current year the city-state’s currency witnessed a downfall of 4.9 percent. It is compared with the ten percent downfall in the Korea won which is amongst the poor performers of the ten of the efficient currencies in Asia but here the yen is not included.

This year the Singapore central bank conducted a survey where the economists made a prediction of downfall of 4.9 percent in the economy compared to the previous forecast of one percent. According to Mr. Idris who is a currency strategist at UBS in Singapore, both HSBC Holdings Plc which is the biggest currency trader in the world and UBS AG were of the view that central bank of Singapore will look for a weak currency at the policy review in the month of April. There are chances that the city’s dollar might fall to S$1.62 in the 3 months and by the end of the year it will bounce back to S$1.59.

According to Mr. Robert who is a Singapore-based senior economist at HSBC, this year the economy of Singapore will contract nine percent and there are probabilities that the central bank will declare a one-off reduction of their small trade-weighted rate of exchange. It is scheduled for April 9 and there are probabilities that it will be in the order of around two percent.

The Ministry of Manpower on March 16 provided with the information that in the fourth quarter of the year 2008 the unemployment rate increased to 2.4 percent from 2.1 percent. Mr. Enoch in his note said that the unemployment rate will increase to seven percent in the year 2010 which will really affect the private spending.

The central bank of Singapore carries out their monetary strategies by directing the dollar within the secret band of trade-weighted currencies of their most important business partners. The central bank of Singapore holds its monetary policy twice in a year. In the month of October 2007 the Monetary Authority of Singapore agreed to a more effective currency appreciation, declared a one-off increase in April 2008 and last year stopped supporting the profits made in the month of October.