Forex - EUR/JPY gains on firming euro zone output data

Investing.com - The euro strengthened against the yen on Wednesday after industry data revealed both factory and service-sector output appears to be on the rise in the euro zone.

In U.S. trading on Wednesday, EUR/JPY was up 0.50% at 132.17, up from a low of 131.38 and off a high of 132.74.

The pair sought to test support at 130.78, Tuesday's low, and resistance at 132.77, the high from May 21.

The euro rose against safe-haven currencies such as the yen after U.K.-based Markit Economics revealed that the euro zone purchasing managers' index rose to 50.1 in July from 48.8 in June, beating analysts' calls for a 49.1 reading.

A reading above 50 signals expansion, which gave the currency room to rise on hopes better days lie ahead for the crisis-weary euro zone economy.

Germany's manufacturing PMI rose to 50.3 from June's reading of 48.6, and the service-sector PMI jumped to 52.5, from 50.4.

The French manufacturing PMI rose to a 17-month high of 49.8 from 48.4 in June, while France's services PMI improved to 48.3 from 47.2 last month.

Both French and German data beat market expectations.

Meanwhile, a preliminary reading of China's HSBC manufacturing PMI fell to 47.7 in July from a final reading of 48.2 last month. Analysts had expected the index to rise to 48.6. A reading below 50 indicates a contraction, and the numbers dampened demand for the Japanese currency.

The euro, meanwhile, was up against the pound and down against the U.S. dollar, with EUR/GBP trading up 0.18% at 0.8618 and EUR/USD trading down 0.20% at 1.3197.

On Thursday, Spain is to release official data on the unemployment rate. The Ifo Institute is to publish its index of German business climate.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

08.10 | 0 komentar | Read More

U.S stocks fall on earnings, data and Fed outlook; Dow down 0.26%

Investing.com - U.S. stocks closed largely lower on Wednesday after improving home sales in the U.S. renewed expectations that the Federal Reserve remains on course to winding down stimulus measures this year.

Stimulus programs such as low interest rates and the Fed's monthly purchases of USD85 billion in assets suppress borrowing costs across the economy and make stocks an attractive buy, though positive data can send stocks falling briefly by stoking expectations of an end to monetary support of the market.

At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.26%, the S&P 500 index fell 0.38%, while the Nasdaq Composite index rose 0.01%.

The Commerce Department reported earlier that U.S. new home sales jumped 8.3% to 497,000 units, their highest level since May 2008.

Analysts were expecting new home sales to rise 1.8% to 482,000, which bolstered the dollar and sent stocks falling, partly on trading strategies predicting an end to stimulus measures.

Elsewhere, heavy equipment maker Caterpillar reported that second-quarter earnings fell 43% due to slumping mining activity, which prompted the company to lower its profit and revenue outlooks for this year, which also dampened broader share prices.

Supporting stocks was tech bellwether Apple, whose earnings beat expectations.

Leading Dow Jones Industrial Average performers included Hewlett-Packard, up 1.48%, American Express, up 1.28%, and Intel, up 0.84%.

The Dow Jones Industrial Average's worst performers included Caterpillar, down 2.42%, Bank of America, down 1.47%, and AT&T, down 1.20%.

European indices, meanwhile, finished higher.

After the close of European trade, the EURO STOXX 50 rose 1.08%, France's CAC 40 rose 1.01%, while Germany's DAX 30 finished up 0.78%. Meanwhile, in the U.K. the FTSE 100 finished up 0.35%.

On Thursday, the U.S. is to publish government data on durable goods orders as well as its weekly government report on initial jobless claims.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

08.10 | 0 komentar | Read More

Forex - USD/CAD falls on Fed uncertainty, strong Canada retail sales

Investing.com - The U.S. dollar weakened against its Canadian counterpart on Tuesday after retail sales came in stronger than expected in Canada, while soft housing data in the U.S. frayed nerves that the Federal Reserve will keep monetary stimulus programs in place for longer than once thought.

In U.S. trading on Monday, USD/CAD hit 1.0283, down 0.48%, up from a low of 1.0280 and off a high of 1.0350.

The pair sought to test support at 1.0174, the low from June 19, and resistance at 1.0350, the earlier high.

The U.S. National Association of Realtors reported on Monday that existing home sales fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June.

Sales for May were revised down to 5.14 million from a previously reported 5.18 million.

The report added sales were up 15.2% from June of last year, while average house prices jumped 13.5% on a year-over-year basis.

While the numbers indicated that recovery continues in the housing sector, markets concluded the figures were soft enough to sway monetary authorities to keep stimulus programs in place for now, sentiments that carried over into a quiet session on Tuesday.

Stimulus programs such as the Fed's monthly USD85 billion in asset purchases, among others, tend to keep the dollar weaker to spur recovery by pushing borrowing costs lower across the broader economy.

Meanwhile, Statistics Canada said earlier Tuesday that June retail sales jumped 1.9% from a month earlier in May, well above expectations for a 0.4% gain, while core retail sales rose 1.2%, compared to expectations for a 0.1% increase, which sent the loonie firming against the greenback.

The Canadian dollar, meanwhile, was up against the euro and up against the yen, with EUR/CAD down 0.18% and trading at 1.3603 and CAD/JPY up 0.26% at 96.69.

On Wednesday, the U.S. is to release official data on new home sales, a leading indicator of economic health.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

08.10 | 0 komentar | Read More

U.S stocks end mixed in lackluster trading; Dow up 0.15%

Investing.com - U.S. stocks ended Tuesday mixed after a lackluster session marked by investors buying and selling equities on earnings as well as on uncertainty as to when Federal Reserve stimulus measures may begin to wind down.

Stimulus programs such as low interest rates and the Fed's monthly purchases of USD85 billion in assets suppress borrowing costs across the economy and make stocks an attractive buy.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.15%, the S&P 500 index fell 0.19%, while the Nasdaq Composite index fell 0.59%.

Chemical giant DuPont and technology Dow component United Technology released second-quarter earnings earlier that beat expectations, though disappointing data in Netflix, Peabody Energy and other reports helped offset gains.

Trading was largely quiet, as investors awaited fresh signs to indicate when monetary stimulus measures may unwind.

On Monday, the National Association of Realtors reported that existing home sales in the U.S. fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June.

Sales for May were revised down to 5.14 million from a previously reported 5.18 million.

The report added sales were up 15.2% from June of last year, while average house prices jumped 13.5% on a year-over-year basis.

While the numbers indicated that recovery continues in the housing sector, markets concluded the figures were soft enough to sway monetary authorities to keep stimulus programs in place for now, which are bullish for equities.

Leading Dow Jones Industrial Average performers included United Technologies, up 2.97%, Hewlett-Packard, up 0.98%, and Wal-Mart Stores, up 0.89%.

The Dow Jones Industrial Average's worst performers included The Travelers Companies, down 3.77%, McDonald's, down 0.82%, and Cisco, down 0.62%.

European indices, meanwhile, finished lower.

After the close of European trade, the EURO STOXX 50 fell 0.09%, France's CAC 40 fell 0.43%, while Germany's DAX 30 finished down 0.20%. Meanwhile, in the U.K. the FTSE 100 finished down 0.39%.

On Wednesday, the U.S. is to release official data on new home sales, a leading indicator of economic health.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

08.10 | 0 komentar | Read More

Japanese keen on India as PM Abe reboots Japan's economy

With Shinzo Abe winning the race for Japan's Prime Minister, Japanese companies are looking forward to measures to boost growth. And this is good news for Indian infrastructure projects, which have enjoyed strong Japanese participation, reports CNBC-TV18's Manasvi Ghelani.

The deadlock in Japan's Parliament has broken. And new Prime Minister Shinzo Abe is has one of the strongest political mandates in years to help him continue pulling Japan's giant economy out of its long-term decline.

Also Read: PM Abe's bloc wins big in upper house vote

Accordimg to Haruo Shimada, president, Chiba University of Commerce, "Abe and his Cabinet changed the monitory policy completely. This lured the international community came back and start investing. This caused stock prices to jump up and lowered the exchange rate of the Yen to allow Japanese industry to export more and is a stong boost for the revival of the Japanese economy."

This is good news for India. It can now capitalise on Japan's long-term lending capacity and low interest-rate regime to attract financing for cash-strapped landmark infrastructure projects.

Amitabh Kant, MD and CEO, DMICDC, says, "Much of China's manufacturing revolution was led by the Japanese. Now the Japanese think they have over-invested in China and are looking at other options. India needs to tap this opportunity."

The Delhi-Mumbai Industrial Corridor, which was recalled to life a year ago, is one such beneficiary. So far, the project has seen capital infusion of about US 4.5 billion from Japanese firms who hold 26 percent equity in the project. And crucial funds at advanced stages of the project should now become easier to access.

Experts say other such projects such as the Chennai - Bangalore Corridor for which feasibility study has been completed; the Bangalore - Mumbai Freight Corridor for which a feasibility study is underway and the Kolkata - Delhi Corridor for which a feasibility study is all set to begin, may also get a fillip.

But infrastructure is not the only area of interest. Japanese companies have shown interest in sectors like agriculture, medical services, education and energy. And as Japan looks to reboot growth, these sectors in India could also witness significant investment.

08.10 | 0 komentar | Read More

U.S stocks inch up on talk Fed stimulus to stay in place; Dow up 0.01%

Investing.com - U.S. stocks ended Monday higher after a lackluster session that saw share prices fall on earnings and soft housing data, though expectations that Federal Reserve stimulus measures will stay in place bolstered prices in the end.

Stimulus programs such as low interest rates and the Fed's monthly purchases of USD85 billion in assets suppress borrowing costs across the economy and make stocks an attractive buy.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.01%, the S&P 500 index rose 0.20%, while the Nasdaq Composite index rose 0.36%.

The National Association of Realtors reported earlier that existing home sales in the U.S. fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June.

Sales for May were revised down to 5.14 million from a previously reported 5.18 million.

The report added sales were up 15.2% from June of last year, while average house prices jumped 13.5% on a year-over-year basis.

While the numbers indicated that recovery continues in the housing sector, markets concluded the figures were soft enough to sway monetary authorities to keep stimulus programs in place for now, which are bullish for equities.

Elsewhere, fast-food giant McDonalds and toymaker Hasbro released second-quarter earnings that missed expectations, though trading remained largely quiet and within a 60-point range.
Leading Dow Jones Industrial Average performers included Microsoft, up 1.91%, Hewlett-Packard, up 1.51%, and Bank of America, up 1.22%.

The Dow Jones Industrial Average's worst performers included McDonald's, down 2.66%, Intel, down 1.17%, and Walt Disney, down 1.14%.

European indices, meanwhile, finished mixed.

After the close of European trade, the EURO STOXX 50 rose 0.34%, France's CAC 40 rose 0.37%, while Germany's DAX 30 finished down 0.01%. Meanwhile, in the U.K. the FTSE 100 finished down 0.11%.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

08.10 | 0 komentar | Read More

Forex - EUR/USD down during the Asian session

Investing.com - The Euro was lower against the U.S. Dollar on Sunday.

EUR/USD was trading at 1.3138, down 0.01% at time of writing.

The pair was likely to find support at 1.3052, Tuesday's low, and resistance at 1.3177, Wednesday's high.

Meanwhile, the Euro was down against the British Pound and the Japanese Yen, with EUR/GBP shedding 0.01% to hit 0.8604 and EUR/JPY falling 0.24% to hit 131.87.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

08.10 | 0 komentar | Read More

Forex - GBP/USD up during the Asian session

Investing.com - The British Pound was higher against the U.S. Dollar on Sunday.

GBP/USD was trading at 1.5269, up 0.01% at time of writing.

The pair was likely to find support at 1.5046, Tuesday's low, and resistance at 1.5281, Friday's high.

Meanwhile, the British Pound was down against the Euro and the Japanese Yen, with EUR/GBP gaining 0.05% to hit 0.8609 and GBP/JPY falling 0.11% to hit 153.43.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

08.10 | 0 komentar | Read More

Stock market prediction for July 22-26: Astrostocktips

Technology sector will continue getting strong astrological support. Buy HCL Technologies, TCS, Tech Mahindra, Think soft, KPIT, eclerx, Infosys etc on dips, says Satish Gupta of astrostocktips.in.

By Satish Gupta of astrostocktips.in

Weekly planetary position: During the week, Moon will be transiting in Sagittarius, Capricorn & Acquires. Lord Saturn & Rahu in Libra. Sun in Cancer. Mercury, Jupiter & Mars in Gemini, Venus in Leo. Ketu in Aries. Pluto in Sagittarius. Neptune in Aquarius & Uranus in Pisces.

As predicted, last week volatility & deception was it at its highest level. Although, planet mercury's retrogration period is over but deception & volatility will continue next week also, so be very cautious in carrying over night positions in Nifty.

Following sectors will be getting astrological support:

Technology sector will continue getting strong astrological support. Buy HCL Technologies , TCS , Tech Mahindra , Thinksoft , KPIT , eClerx , Infosys etc on dips.

Leather sector will continue receiving astrological support. Buy Bata , Relaxo , Sree Leather etc on dips.

Pharma sector will also continue receiving strong astrological support. Buy Lupin , Dr Reddys , Biocon , Divis Lab , Strides Arcolab , Cipla , Sun Pharma etc on dips.

Telecom sector too will be getting astrological support. Buy Idea , Bharti , Tata Communications on decline

Paints sector will be receiving strong astrological support. Buy Asian Paints , Berger Paint , Shalimar Paint , Kansai Nerolac , Akzo Nobel etc on decline.

Liquor sector will continue getting strong astrological support. Accumulate McDowell on every decline.

Always be very cautious, when some main planets i.e. Rahu, Ketu, Jupiter & Lord Saturn are changing their houses. It may be that certain sectors which were continue sly getting support for long time may stop receiving support due to change in position by above planets & stocks of those sectors starts coming down, resulting in losses. This is common reason, why most people loss money.

One should trade only in the stocks of that sectors which are getting very strong astrologically support.

Sectors which get very strong astrological support are not normally affected by downfall in the market.

08.10 | 0 komentar | Read More

What Food Security Bill means for India's subsidy burden

By Dhanraj Bhagat

The National Food Security Bill 2013 was recently passed as an ordinance by the Union Cabinet. The bill aims to provide 5 Kg of food grains per person per month at subsidised prices from State Governments under the targeted public distribution system.

The eligible households will be entitled to food grains at a subsidised price not exceeding Rs 3 per Kg for rice; Rs 2 per Kg for wheat and Re 1 per Kg for coarse grain.

Implications:

Welfare economics:

A huge percentage of the Indian population lives below the poverty line where getting one square meal a day is a challenge. The food security bill aims to satisfy this basic want and in that sense although it encourages welfare economics, the intention is noble. This is what would need to be weighed against other economic considerations.

Rising Subsidy burden:

To gain a perspective on the subsidy portion let us look at the per kg price. Government procurement price would be approximately Rs. 13.45 per Kg for rice and Rs. 12.85 per Kg for wheat. The subsidy portion works out to Rs. 10.45 per kg of rice and Rs. 10.85 per kg of wheat. When we take into account the total number of beneficiaries and the quantity of food grains that would be distributed, the burden on the exchequer is projected at a whopping Rs. 1.3 lakhs crores per year. The increase in subsidy burden will only add to the current fiscal account deficit woes.

Inflationary pressures:

Procurement by the government of such huge quantities of rice, wheat, and other grains would result in less quantity available in the open market, thereby pushing up food prices. This would be further aggravated in a year of low production which would necessitate procurement through imports, which in turn will again push prices up.

Public distribution system and leakages:

The current system of distribution is though the approximately 5 lakh fair price shops spread across the country. In addition there are logistics issue of picking up the food from the source, storage and onward transportation. Leakages on account of pilferage, rotting of grains and logistics inefficiencies account for nearly 40% to 50% of the total food stock. Should this trend continue, the incremental losses on account of additional procurement under the Bill is something we as a nation can ill afford.

Agriculture opportunity:

With additional demand the agriculture sector would receive a boost and this could lead to more investments in improving agriculture productivity and making it more competitive.

Infrastructure opportunity:

To overcome the inefficiencies in the distribution of grains, substantial investment would be required in creating infrastructure like warehousing and storage facilities, roads, improving rail connectivity etc. This could create a huge opportunity for the private sector which could turn out to be one of the catalysts for a renewed economy.

(The writer is Partner, Transaction Advisory Services, Grant Thornton India LLP)

08.10 | 0 komentar | Read More