Europe stock market forecast week september 12 2011 : EU in flux, the Euro currency collapses, plus fear of terrorist attacks into the Anniversary of 9/11 — but the market held the levels that I spoke of in the Midday, which gives me a sense that next week the volatility/market will potentially normalize, and barring any incident over the weekend, we could set up for a retest of this week’s highs. Next week will be very interesting, volatile, and full of opportunity so get ready. See you Monday.
Stock market averages opened lower and never recovered Friday. The focus in on Europe; where equity markets and the euro are reeling amid ongoing concerns about the debt crisis. Spain’s IBEX lost 3.8 percent, Germany’s DAX gave up 3.6 percent and France’s CAC 40 Index slid 3.2 percent Friday on talk Greece is near default. An unnamed Greek official was out denying the speculation today, but the euro plummeted to multi-year lows against the yen and, after steep losses Thursday, is down another 1.6 percent against the buck today. News that top ECB economist Juergen Stark unexpectedly resigned also weighed on European markets. In the US, the economic calendar held just one report on Wholesale Inventories, which was up .8 percent in July and seemed to have no market impact. Instead, the focus is on Europe and players are selling shares into the weekend. With ten minutes left to trade, the Dow Jones Industrial Average is down 285 points and the tech-heavy NASDAQ lost 57.
Bullish
An interesting spread trades in Toyota Motors (NYSE:TM) today. Shares of the Japanese automaker are falling to new 52-week lows and were recently down $1.49 to $67.88. Meanwhile, a three-way options play was initiated in Toyota Friday morning. In this strategy, the investor apparently sold 2,500 September 72.5 calls on the automaker at 13 cents per contract. They also bought 2,500 October 70 calls at $1.90 and sold 2,500 October 75 calls at 49 cents. The spread looks like rolling activity. That is, the investor is selling-to-close a position in out-of-the-money September calls before they expire at the end of next week, while opening a new bullish position in the October 70 – 75 call spread for a $1.41 net debit. They probably had a positive view on the stock through September, but are now buying one more month of time for the bullish trade to play out. However, instead of holding straight calls, they’re initiating a spread strategy instead.
Bullish trading was also seen in Monster Worldwide (MWW), Abercrombie (NYSE:ACF), and Sony (NYSE:SNE).
Bearish
Bearish traders were active in JC Penney (NYSE:JCP) today. The stock has not escaped the sell-off and is down 63 cents to $25.44. Options volume in JCP includes 10,000 calls and 15,000 puts. Average daily volume in the retailer is about 10,000 (puts and calls). The top trades are part of a spread, in which 3500 October 24 puts were apparently bought at $1.35 and 3500 October 21 puts sold at 56 cents. In other words, an Oct 21 – 24 put spread was bought for a 79-cent net debit. The spread has traded multiple times today and volume in both contracts is more than 6,200. It’s bearish play with a max potential pay-off if shares fall to $21 through the October expiration, which represents a 17.5 percent decline over the next 42 days. A shareholder might have initiated the spread to help hedge JCP stock.
Bearish trading was also seen in Barclay’s (NYSE:BCS), XL Capital (NYSE:XL), and Isis Pharmaceuticals (NASDAQ:ISIS)
Index Trading
CBOE Volatility Index (.VIX) surged amid increasing activity in the index market Friday. 772,000 calls and 1.23 million puts have traded on the S&P 500 Index (.SPX), the S&P 100 Index (.OEX), and other cash indexes today, which compares to 591,000 calls and 727,000 puts traded Thursday. CBOE Volatility Index (.VIX), which tracks the expected volatility priced into SPX options, hit a high of 40.74 and was recently up 5.14 points to 39.46. The jump in the market’s “fear gauge” reflects the negative or bearish sentiment that has resurfaced in September. The S&P 500 Index is down 5.3 percent during the first six trading days of the month and CBOE Volatility Index has rallied 26.4 percent during that time. Fear is back.
ETF Action
CurrencyShares Euro Trust (FXE) saw another day of brisk trading. As noted in yesterday’s wrap, 14,000 calls and 80,000 puts traded on the ETF Thursday. Today, shares lost another $2.25 to $136.09 on a rough day for the European currency. The fund is designed to track the price action of the EUR/USD currency pair (X100) and has now given up 18.8 percent since August 29. Ouch! Shares have fallen to six-month lows on concern about the outlook for the Eurozone and the longer-term fate of the European currency. Consequently, players are actively taking positions in options on FXE in anticipation of the Euro’s next move.
Another 89,000 puts and 24,000 calls traded in the product today. September 138 puts, 139 calls, and 140 puts were the most actives, as some investors were likely closing positions while others took new ones in anticipation of volatility in the currency market in the days ahead. September options expire at the end of next week. source dailymarkets.com
EUR/USD forecast september 12 2011, Europe stock market forecast september 12 2011, Germany’s DAX stock predictions september 12 2011.
Showing posts with label European Stocks market. Show all posts
Showing posts with label European Stocks market. Show all posts
Friday, September 9, 2011
Wednesday, September 7, 2011
Gold prices in Europe market september 7 2011
Gold prices in Europe market september 7 2011 : Gold prices fell by nearly 3% in Europe on Wednesday after a sharp rally in stock markets prompted nervous investors to cash in gains after the precious metal's rally to record highs in the previous session.
Gold was set for its most volatile day in two weeks, with price swings of nearly US$80, just shy of late August's US$104 difference between session peaks and troughs.
The focus was on lack of growth and perhaps the Swiss decision and some stabilisation of (equity) markets has perhaps made people a bit less depressed about growth and that buying has come out of the market.
Reflecting the investor retreat from gold over the past few days, even with a rise in the price to record highs, was a fifth consecutive decline in exchange-traded fund holdings of gold – a key gauge of investment demand. Holdings are at 67.38 million ounces, their lowest in six weeks.
Support from current levels is likely to continue to come from the euro zone debt crisis. The bloc's most indebted nations are struggling to convince investors of their commitment to reduce debt, as Germany, the euro zone's biggest economy, faces opposition to further aid.
In a closely watched decision, Germany's Constitutional Court on Wednesday rejected a series of lawsuits aimed at blocking Germany's participation in bailout packages for Greece and other euro zone countries.
It said however that parliament must have a bigger say in future rescues, which could further slow down Europe's response to the debt crisis.
The news helped assets seen as higher risk to rise, briefly lifting the euro against the dollar but pressuring German Bund futures. European shares rose sharply, bouncing from a two-year closing low.
Gold was set for its most volatile day in two weeks, with price swings of nearly US$80, just shy of late August's US$104 difference between session peaks and troughs.
The focus was on lack of growth and perhaps the Swiss decision and some stabilisation of (equity) markets has perhaps made people a bit less depressed about growth and that buying has come out of the market.
Reflecting the investor retreat from gold over the past few days, even with a rise in the price to record highs, was a fifth consecutive decline in exchange-traded fund holdings of gold – a key gauge of investment demand. Holdings are at 67.38 million ounces, their lowest in six weeks.
Support from current levels is likely to continue to come from the euro zone debt crisis. The bloc's most indebted nations are struggling to convince investors of their commitment to reduce debt, as Germany, the euro zone's biggest economy, faces opposition to further aid.
In a closely watched decision, Germany's Constitutional Court on Wednesday rejected a series of lawsuits aimed at blocking Germany's participation in bailout packages for Greece and other euro zone countries.
It said however that parliament must have a bigger say in future rescues, which could further slow down Europe's response to the debt crisis.
The news helped assets seen as higher risk to rise, briefly lifting the euro against the dollar but pressuring German Bund futures. European shares rose sharply, bouncing from a two-year closing low.
Saturday, September 3, 2011
European market outlook week september 5 2011
European market outlook week september 5 2011 ; After the ugliest of jobs reports, a breakdown in Greek debt talks, and news that U.S. regulators are going after banks, Friday is most definitely a risk-off day. And yet FX markets are still taking the next wave of European political risks far too lightly.
On Sunday, the German north-eastern state of Mecklenburg-Vorpommern holds regional elections. Though Chancellor Angela Merkel is expected to pass this test of her coalition, it could raise questions about the depth of parliamentary support she has for expansion of the European Financial Stability Facility that euro-zone leaders agreed to on July 21. A weak Merkel is a weak euro.
On Monday, the lower chamber of the Italian parliament begins debating the latest fiscal package, the program of austerity that was part of the quid-pro-quo in return for the European Central Bank buying Italian bonds. Approval of the measures is expected, but Prime Minister Berlusconi’s move to scrap efforts to delay the retirement age and ditch a tax on the wealthy will leave the government short of cash. The preferred Italian solution: target tax evasion — but we all know how well that has worked in Greece.
On Tuesday, Italian unions will hold a general strike, a big display of the political pressure on Berlusconi.
On Wednesday, the German constitutional court rules on the legality of expanding the powers of the European Financial Stability Facility. It’s likely to uphold the EFSF but if it raises any doubts about it, nerves will be rattled for sure.
And On Thursday, the ECB holds its next policy meeting. At the end of the day, this is where the buck will stop for currency traders. Keep your eye on it.
All this comes against the backdrop of a no-win situation in Greece. With Greek GDP declining to a projected minus-5.0% in the second quarter and showing no sign of rebounding, the “troika” of the IMF, EU and ECB found Athens woefully short on measures to cut its deficit and so packed up and left the city on Friday. That left talks over the next tranche in the country’s bailout program up in the air and thus put in doubt the flow of funds that Greece desperately needs to avoid default.
With the Italy, the third largest economy in the euro zone, now lining up as the next domino to fall, this deteriorating environment will force the ECB to step up bond buying. But there’s an equally important question on what the central bank does with interest rates. And there, the market could get a surprise.
I believe that at the very least the word “vigilance” will be dropped from ECB President Jean-Claude Trichet’s commentary after the meeting. I also think the central bank will suggest leaning toward a cut in interest rates. The market is not at all prepared for this. It has been the strength of German data that has kept the ECB stubborn and German GDP is weakening.
On Sunday, the German north-eastern state of Mecklenburg-Vorpommern holds regional elections. Though Chancellor Angela Merkel is expected to pass this test of her coalition, it could raise questions about the depth of parliamentary support she has for expansion of the European Financial Stability Facility that euro-zone leaders agreed to on July 21. A weak Merkel is a weak euro.
On Monday, the lower chamber of the Italian parliament begins debating the latest fiscal package, the program of austerity that was part of the quid-pro-quo in return for the European Central Bank buying Italian bonds. Approval of the measures is expected, but Prime Minister Berlusconi’s move to scrap efforts to delay the retirement age and ditch a tax on the wealthy will leave the government short of cash. The preferred Italian solution: target tax evasion — but we all know how well that has worked in Greece.
On Tuesday, Italian unions will hold a general strike, a big display of the political pressure on Berlusconi.
On Wednesday, the German constitutional court rules on the legality of expanding the powers of the European Financial Stability Facility. It’s likely to uphold the EFSF but if it raises any doubts about it, nerves will be rattled for sure.
And On Thursday, the ECB holds its next policy meeting. At the end of the day, this is where the buck will stop for currency traders. Keep your eye on it.
All this comes against the backdrop of a no-win situation in Greece. With Greek GDP declining to a projected minus-5.0% in the second quarter and showing no sign of rebounding, the “troika” of the IMF, EU and ECB found Athens woefully short on measures to cut its deficit and so packed up and left the city on Friday. That left talks over the next tranche in the country’s bailout program up in the air and thus put in doubt the flow of funds that Greece desperately needs to avoid default.
With the Italy, the third largest economy in the euro zone, now lining up as the next domino to fall, this deteriorating environment will force the ECB to step up bond buying. But there’s an equally important question on what the central bank does with interest rates. And there, the market could get a surprise.
I believe that at the very least the word “vigilance” will be dropped from ECB President Jean-Claude Trichet’s commentary after the meeting. I also think the central bank will suggest leaning toward a cut in interest rates. The market is not at all prepared for this. It has been the strength of German data that has kept the ECB stubborn and German GDP is weakening.
Saturday, August 20, 2011
European stock market outlook august 22 2011
European stock market outlook august 22 2011 : European shares have fallen after talks between French and German leaders did little to calm investors’ fears that the debt crisis could spread further.
The two leaders agreed to press for closer economic integration within the euro zone, but did not announce any specific measures to tackle the crisis.
Shares opened sharply lower before recovering, with Frankfurt’s Dax index down 0.5% and London’s FTSE 100 flat. The gold price also hit a new a record high, reflecting continued uncertainty.
A proposed tax on financial transactions also hit bank shares.
Deutsche Bank, BNP Paribas and Barclays all fell by about 3%. Shares in the London Stock Exchange and Deutsche Boerse also fell by a similar amount.
The tax could be used to raise money to help bolster any future bailout funds, but the proposal has already met with opposition from one member state.
German Chancellor Angela Merkel and French President Nicolas Sarkozy called on Tuesday night for “true economic governance” for the euro zone in response to the debt crisis.
The leaders called for much closer economic policy in the euro zone, but said that this could only be achieved by a “step-by-step” process.
Merkel also stressed that issuing so-called Eurobonds, IOUs issued to investors backed by the euro zone as a whole rather than individual countries, would not be on the agenda until closer economic union had been achieved.
“Eurobonds can be imagined one day, but at the end of the European integration process, not at the beginning,” said Sarkozy. He added that the fund’s size is “sufficient”.
“It is often said that eurobonds are a last resort for the euro zone but I don’t think the euro zone is dependent on last resorts,” said Merkel. “I don’t think eurobonds help us.”
The leaders’ reluctance to discuss eurobonds reflects deep hostility in
Germany and other northern countries, such as the Netherlands and Finland, towards what they see as helping financially undisciplined countries without firm guarantees in return.
Some policymakers and investors have argued that issuing these bonds would go a long way to calming volatile stock markets and resolving the debt crisis.
Both the Italian Finance Minister, Giulio Tremonti, and billionaire investor George Soros have backed the idea.
To tackle concerns about high levels of debt among euro zone governments in general, Merkel and Sarkozy proposed that a requirement for member states to balance their budgets should be enshrined in each of their constitutions by the summer of 2012.
In another initiative to increase tax revenues, the leaders advocated harmonising corporate tax rates across the single currency.
The two leaders also said they wanted bi-annual meetings of the 17 heads of the euro zone governments, chaired by Herman van Rompuy, the current president of the European Council.
As well as proposals for the euro zone as a whole, the meeting also came up with some bilateral plans between Germany and France.
These included plans for a joint proposal on a financial transactions tax and meetings to exchange views about economic and budgetary policies.
In addition, French and German finance ministers are to come up with ideas to increase the convergence and competitiveness of the two economies, in particular a proposal for a joint business tax.
Chancellor Merkel and President Sarkozy were meeting in Paris in the wake of recent turmoil on the financial markets, which came amid fears of a renewed global recession and concerns that Spain and Italy may be dragged into the debt crisis.
European Commission President Jose Manuel Barroso hailed the “important” agreement reached by German Chancellor Angela Merkel and French President Nicolas Sarkozy on the way forward for the crisis-hit euro zone.
Barroso said plans including a permanent governorship of the euro zone’s combined economy “represent an important political contribution by the leaders of the two largest euro area economies”.
“A regular format and frequency for the euro area summits, with a permanent chair, contributes to a more stable and stronger political leadership,” Barroso said of the call for European Union President Herman Van Rompuy to become the focal point of new, cross-border economic governance.
In a joint statement issued alongside his commissioner for economic affairs, Olli Rehn, Barroso also said a demand that all 17 euro zone governments adopt similar laws to Berlin enshrining balanced budgets, as well as a move to introduce a financial transactions tax, together amounted to a “welcome step forward”.
They said: “The call to enshrine the principle of a debt brake in national constitutional law is a further strong political commitment to the long-term sustainability of public finances.”
Meanwhile, “a financial transaction tax will be a key instrument to ensure that the financial sector makes a fairer contribution to public accounts”, they said, promising new legislative plans in this area.
But others dismissed it as too little. “The Franco-German meeting has not produced anything particularly new or useful,” said Sony Kapoor, managing director of Re-Define, an economic policy thinktank.
The European Central Bank last week spent a record €22bn buying euro zone government bonds in a bid to prevent the euro zone debt crisis spreading.
The buying spree represented the most the central bank has spent since it first began bond-buying in May last year in response to the Greek debt crisis.
It also shows the scale of the challenge faced by the bank in keeping down the borrowing costs of Italy and Spain, the euro zone’s third and fourth largest economies.
The bond buyback programme, supposed to be a temporary measure while politicians attempt to solve the euro zone’s problems, is controversial among ECB policy-makers.
It is most strongly opposed by Jens Weidmann and Juergen Stark, German members of the bank’s governing council, who feel the bank is moving into political territory.
However, the bank has felt itself compelled to move as various agreements by EU politicians over recent months have failed to draw a line under the crisis.
A July deal to allow the euro zone rescue fund to buy bonds – which the ECB keenly wants to come into force – has first to be ratified by member states.
The two leaders agreed to press for closer economic integration within the euro zone, but did not announce any specific measures to tackle the crisis.
Shares opened sharply lower before recovering, with Frankfurt’s Dax index down 0.5% and London’s FTSE 100 flat. The gold price also hit a new a record high, reflecting continued uncertainty.
A proposed tax on financial transactions also hit bank shares.
Deutsche Bank, BNP Paribas and Barclays all fell by about 3%. Shares in the London Stock Exchange and Deutsche Boerse also fell by a similar amount.
The tax could be used to raise money to help bolster any future bailout funds, but the proposal has already met with opposition from one member state.
German Chancellor Angela Merkel and French President Nicolas Sarkozy called on Tuesday night for “true economic governance” for the euro zone in response to the debt crisis.
The leaders called for much closer economic policy in the euro zone, but said that this could only be achieved by a “step-by-step” process.
Merkel also stressed that issuing so-called Eurobonds, IOUs issued to investors backed by the euro zone as a whole rather than individual countries, would not be on the agenda until closer economic union had been achieved.
“Eurobonds can be imagined one day, but at the end of the European integration process, not at the beginning,” said Sarkozy. He added that the fund’s size is “sufficient”.
“It is often said that eurobonds are a last resort for the euro zone but I don’t think the euro zone is dependent on last resorts,” said Merkel. “I don’t think eurobonds help us.”
The leaders’ reluctance to discuss eurobonds reflects deep hostility in
Germany and other northern countries, such as the Netherlands and Finland, towards what they see as helping financially undisciplined countries without firm guarantees in return.
Some policymakers and investors have argued that issuing these bonds would go a long way to calming volatile stock markets and resolving the debt crisis.
Both the Italian Finance Minister, Giulio Tremonti, and billionaire investor George Soros have backed the idea.
To tackle concerns about high levels of debt among euro zone governments in general, Merkel and Sarkozy proposed that a requirement for member states to balance their budgets should be enshrined in each of their constitutions by the summer of 2012.
In another initiative to increase tax revenues, the leaders advocated harmonising corporate tax rates across the single currency.
The two leaders also said they wanted bi-annual meetings of the 17 heads of the euro zone governments, chaired by Herman van Rompuy, the current president of the European Council.
As well as proposals for the euro zone as a whole, the meeting also came up with some bilateral plans between Germany and France.
These included plans for a joint proposal on a financial transactions tax and meetings to exchange views about economic and budgetary policies.
In addition, French and German finance ministers are to come up with ideas to increase the convergence and competitiveness of the two economies, in particular a proposal for a joint business tax.
Chancellor Merkel and President Sarkozy were meeting in Paris in the wake of recent turmoil on the financial markets, which came amid fears of a renewed global recession and concerns that Spain and Italy may be dragged into the debt crisis.
European Commission President Jose Manuel Barroso hailed the “important” agreement reached by German Chancellor Angela Merkel and French President Nicolas Sarkozy on the way forward for the crisis-hit euro zone.
Barroso said plans including a permanent governorship of the euro zone’s combined economy “represent an important political contribution by the leaders of the two largest euro area economies”.
“A regular format and frequency for the euro area summits, with a permanent chair, contributes to a more stable and stronger political leadership,” Barroso said of the call for European Union President Herman Van Rompuy to become the focal point of new, cross-border economic governance.
In a joint statement issued alongside his commissioner for economic affairs, Olli Rehn, Barroso also said a demand that all 17 euro zone governments adopt similar laws to Berlin enshrining balanced budgets, as well as a move to introduce a financial transactions tax, together amounted to a “welcome step forward”.
They said: “The call to enshrine the principle of a debt brake in national constitutional law is a further strong political commitment to the long-term sustainability of public finances.”
Meanwhile, “a financial transaction tax will be a key instrument to ensure that the financial sector makes a fairer contribution to public accounts”, they said, promising new legislative plans in this area.
But others dismissed it as too little. “The Franco-German meeting has not produced anything particularly new or useful,” said Sony Kapoor, managing director of Re-Define, an economic policy thinktank.
The European Central Bank last week spent a record €22bn buying euro zone government bonds in a bid to prevent the euro zone debt crisis spreading.
The buying spree represented the most the central bank has spent since it first began bond-buying in May last year in response to the Greek debt crisis.
It also shows the scale of the challenge faced by the bank in keeping down the borrowing costs of Italy and Spain, the euro zone’s third and fourth largest economies.
The bond buyback programme, supposed to be a temporary measure while politicians attempt to solve the euro zone’s problems, is controversial among ECB policy-makers.
It is most strongly opposed by Jens Weidmann and Juergen Stark, German members of the bank’s governing council, who feel the bank is moving into political territory.
However, the bank has felt itself compelled to move as various agreements by EU politicians over recent months have failed to draw a line under the crisis.
A July deal to allow the euro zone rescue fund to buy bonds – which the ECB keenly wants to come into force – has first to be ratified by member states.
Tuesday, August 9, 2011
Europe, US, Asian stock market summary august 9 2011
Europe, US, Asian stock market summary august 9 2011 ; Several major stock markets across the world notched up gains today on buying at bargain levels, with Dow Jones Industrial Average soaring over 212 points, although Asian bourses remained weak.
After plunging to new lows on Monday, the Wall Street opened on a strong note as investors snapped up shares at attractive valuations amid hopes that Federal Reserve will move to bolster the ailing American economy. Dow surged 2% in the morning trade to cross the 11,000 mark. The benchmark index was trading at 11,022.56 points.
Two other key US indices -- S&P 500 and Nasdaq Composite -- also made significant gains. While S&P gained over 2.5% at 1,147.60 points, the tech-heavy Nasdaq climbed over three per cent to 2,432.83 points.
Global markets were battered severely yesterday -- the first day of trading after S&P downgraded the US credit rating to 'AA+' from 'AAA' last Friday. Further, the persisting debt turmoil in Europe has also taken a toll on investor sentiment.
Towards the end of trading, European stocks had also recouped most of the losses made earlier in the day. London Stock Exchange's benchmark FTSE 100 index, which plummeted over 4%, was marginally up at 5,086.07 points. German index Dax, that crashed over 5% in the morning session, made a smart recovery and was down only slightly at 5,900.58 points. France's key Cac 40 index was up nearly one per cent at 3,151.45 points, after falling more
than three per cent in early trade.
However, Asian markets remained weak, even though most of them managed to recover from heavy losses incurred on Monday. Among the major losers were Hong Kong's key Hang Seng index (down nearly 6%) and Japan's Nikkei 225 (down about 2%).
India's BSE 30-share Sensex declined a little less than 1% to close at 16,857.90 points, after wild fluctuations and tanking 550 points earlier in the day. Investors are keeping a close watch on Federal Reserve's monetary policy statement, expected later in the day. With expectations running high on Fed's next step, any negative opinion could adversely impact the overall market sentiment, especially since fears are rising about another recession.
In one of the worst trading sessions since the 2008 financial meltdown, Wall Street crashed yesterday, with the Dow Jones plunging over 634 points.
German index Dax august 9 2011, Global markets august 9 2011, FTSE 100 index prices august 9 2011, European stocks august 9 2011, India's BSE 30-share Sensex, Japan's Nikkei 225 august 9 2011, Hang Seng index, Asian markets august 9 2011
After plunging to new lows on Monday, the Wall Street opened on a strong note as investors snapped up shares at attractive valuations amid hopes that Federal Reserve will move to bolster the ailing American economy. Dow surged 2% in the morning trade to cross the 11,000 mark. The benchmark index was trading at 11,022.56 points.
Two other key US indices -- S&P 500 and Nasdaq Composite -- also made significant gains. While S&P gained over 2.5% at 1,147.60 points, the tech-heavy Nasdaq climbed over three per cent to 2,432.83 points.
Global markets were battered severely yesterday -- the first day of trading after S&P downgraded the US credit rating to 'AA+' from 'AAA' last Friday. Further, the persisting debt turmoil in Europe has also taken a toll on investor sentiment.
Towards the end of trading, European stocks had also recouped most of the losses made earlier in the day. London Stock Exchange's benchmark FTSE 100 index, which plummeted over 4%, was marginally up at 5,086.07 points. German index Dax, that crashed over 5% in the morning session, made a smart recovery and was down only slightly at 5,900.58 points. France's key Cac 40 index was up nearly one per cent at 3,151.45 points, after falling more
than three per cent in early trade.
However, Asian markets remained weak, even though most of them managed to recover from heavy losses incurred on Monday. Among the major losers were Hong Kong's key Hang Seng index (down nearly 6%) and Japan's Nikkei 225 (down about 2%).
India's BSE 30-share Sensex declined a little less than 1% to close at 16,857.90 points, after wild fluctuations and tanking 550 points earlier in the day. Investors are keeping a close watch on Federal Reserve's monetary policy statement, expected later in the day. With expectations running high on Fed's next step, any negative opinion could adversely impact the overall market sentiment, especially since fears are rising about another recession.
In one of the worst trading sessions since the 2008 financial meltdown, Wall Street crashed yesterday, with the Dow Jones plunging over 634 points.
German index Dax august 9 2011, Global markets august 9 2011, FTSE 100 index prices august 9 2011, European stocks august 9 2011, India's BSE 30-share Sensex, Japan's Nikkei 225 august 9 2011, Hang Seng index, Asian markets august 9 2011
Thursday, July 21, 2011
European stock markets july 21 2011, Stoxx Europe 600 index rose
European stock markets july 21 2011, Stoxx Europe 600 index rose : European stock markets ended a choppy session with solid gains Thursday, with bank stocks getting a boost as euro-zone leaders moved toward a new response to the sovereign-debt crisis, while Ericsson AB fell sharply after its results disappointed investors.
The Stoxx Europe 600 index rose 1% to close at 270.48. It had earlier fallen as much as 0.9% following disappointing economic data from Europe and China.
Banks were the big winners, with shares in Commerzbank AG soaring 9.6% in Frankfurt, Societe Generale climbing 6.2% in Paris and Barclays adding 7.7% in London.
The Greek ASE Composite index GR:GD +2.54% rose 2.5% to 1,214.42 and Italy's FTSE MIB index climbed 3.8% to 19,490.7 as banks in both countries rallied.
Jones said disappointing data from China was behind a fall for mining stocks, which were among the worst performers Thursday.
Shares in Rio Tinto PLC dropped 1% in London and Xstrata PLC declined 1.1%.
The falls came after a preliminary reading of China's manufacturing- purchasing-managers index fell to a 28-month low in July. The euro zone's own composite PMI was also weak, hitting a 23-month low.
The U.K. FTSE 100 index settled with a gain of 0.8% at 5,899.89 as losses for the miners partially offset the gains for banks.
Earnings and other corporate news also helped move plenty of stocks as the European reporting season moved into top gear.
Shares in telecoms-equipment group Ericsson dropped 9.7%.The group reported a lower-than-expected profit as restructuring charges and the strong krona hurt the bottom line.
Among other telecom-equipment companies, shares in Alcatel-Lucent dropped 1.4% in Paris.
The French CAC 40 index ended 1.7% higher at 3,816.75, with bank stocks in the lead.
The German DAX 30 index climbed 1% to finish at 7,290.14.
Car makers dropped in the wake of the weak economic data from China and Europe.
Shares in BMW AG dropped 1.1%.
Mobile-phone maker Nokia Corp. rallied 2.5% after the group swung to an operating loss of 487 million euros but said it's making better-than-expected progress in a major restructuring plan.
Pharmaceutical giant AstraZeneca PLC was another top performer, rising 2% after the U.S. Food and Drug Administration approved its Brilinta anti-clotting drug.
Among other stocks on the move across Europe, shares in Remy Cointreau rose 5.7% in Paris after the drinks group reported a 16% rise in sales thanks to strong demand in Asia, the U.S. and Europe.
The Stoxx Europe 600 index rose 1% to close at 270.48. It had earlier fallen as much as 0.9% following disappointing economic data from Europe and China.
Banks were the big winners, with shares in Commerzbank AG soaring 9.6% in Frankfurt, Societe Generale climbing 6.2% in Paris and Barclays adding 7.7% in London.
The Greek ASE Composite index GR:GD +2.54% rose 2.5% to 1,214.42 and Italy's FTSE MIB index climbed 3.8% to 19,490.7 as banks in both countries rallied.
Jones said disappointing data from China was behind a fall for mining stocks, which were among the worst performers Thursday.
Shares in Rio Tinto PLC dropped 1% in London and Xstrata PLC declined 1.1%.
The falls came after a preliminary reading of China's manufacturing- purchasing-managers index fell to a 28-month low in July. The euro zone's own composite PMI was also weak, hitting a 23-month low.
The U.K. FTSE 100 index settled with a gain of 0.8% at 5,899.89 as losses for the miners partially offset the gains for banks.
Earnings and other corporate news also helped move plenty of stocks as the European reporting season moved into top gear.
Shares in telecoms-equipment group Ericsson dropped 9.7%.The group reported a lower-than-expected profit as restructuring charges and the strong krona hurt the bottom line.
Among other telecom-equipment companies, shares in Alcatel-Lucent dropped 1.4% in Paris.
The French CAC 40 index ended 1.7% higher at 3,816.75, with bank stocks in the lead.
The German DAX 30 index climbed 1% to finish at 7,290.14.
Car makers dropped in the wake of the weak economic data from China and Europe.
Shares in BMW AG dropped 1.1%.
Mobile-phone maker Nokia Corp. rallied 2.5% after the group swung to an operating loss of 487 million euros but said it's making better-than-expected progress in a major restructuring plan.
Pharmaceutical giant AstraZeneca PLC was another top performer, rising 2% after the U.S. Food and Drug Administration approved its Brilinta anti-clotting drug.
Among other stocks on the move across Europe, shares in Remy Cointreau rose 5.7% in Paris after the drinks group reported a 16% rise in sales thanks to strong demand in Asia, the U.S. and Europe.
Monday, July 18, 2011
European stocks Down July 18 2011, Effect European Bank stress tests
European stocks Down July 18 2011, Effect European Bank stress tests : European stocks fell for a third day, extending the biggest weekly selloff for the Stoxx Europe 600 Index in four months, as stress tests showed lenders may have to raise additional capital. U.S. index futures and Asian shares also declined.
A gauge of European banks extended a two-year low as analysts warned that as many as 20 lenders may need to bolster capital. Kuehne & Nagel International AG, the 120-year-old shipping company, fell 4.4 percent after earnings missed analysts’ estimates. Royal Philips Electronics NV gained 2.2 percent as profit topped projections.
The Stoxx 600 dropped 0.3 percent to 266.16 at 8:23 a.m. in London. The gauge dropped 2.5 percent last week amid mounting concern the sovereign-debt crisis will spread to Italy and Spain. The selloff left the index trading at about 12.5 times reported earnings, near the cheapest since December 2008, data compiled by Bloomberg show.
“Friday’s stress tests have merely added to the uncertainty surrounding the health of the European financial system,” said Jonathan Sudaria, a trader at London Capital Group.
Standard & Poor’s 500 Index futures slid 0.5 percent today after the benchmark U.S. gauge tumbled 2.1 percent last week. MSCI Asia Pacific Index fell 0.3 percent, led by selloff in exporters such as Samsung Electronics Co.
German, Italian Stocks
Deutsche Bank AG (DBK), Germany’s biggest lender, slid 2.6 percent to 36.20 euros and Italy’s UniCredit SpA (UCG) lost 1.8 percent to 1.19 euros.
The European Banking Authority said 8 out of the 90 banks that failed the stress tests had a combined capital shortfall of 2.5 billion euros ($3.5 billion). The results were released after the close of trading on July 15.
Regulators didn’t include a Greek default in the tests even though credit default swaps indicate investors see an almost 90 percent chance of one. The EBA included a 25 percent writedown on 10-year Greek government bonds held in banks’ trading books even as the securities trade at about 51 cents on the euro.
JPMorgan Cazenove analysts led by Kia Abouhossein wrote in a report after the results were published that as many as 20 banks may need to boost capital.
“We remain worried about the secondary effect of the sovereign crisis into funding,” the JPMorgan analysts said. “Funding is the key concern, and without stress liquidity assumptions, the picture remains incomplete -- especially in current market conditions.”
Additional Capital
Christopher Wheeler, a banking analyst at Mediobanca SpA in London said UniCredit, Deutsche Bank, BNP Paribas (BNP) SA, Credit Agricole SA, Societe Generale (GLE) SA, Banco Santander SA and Credit Suisse Group AG (CSGN) are among banks that may have to raise a combined total of about 62 billion euros in additional capital. All the banks passed the EBA’s tests.
Kuehne & Nagel dropped 4.4 percent to 112.8 Swiss francs. The company reported second-quarter net income of 158 million francs ($194 million), trailing analyst estimates of 163 million francs.
Holcim Ltd. (HOLN) slid 1.5 percent to 55.56 francs after Chief Executive Officer Markus Akermann warned profitability may suffer “some pressure” as the cost of raw materials rises in local currencies. Akermann was speaking in an interview with Finanz & Wirtschaft.
Philips Gains
Philips advanced 2.2 percent to 17.75 euros after the world’s biggest maker of patient-monitoring systems reported second-quarter earnings before interest taxes and amortization of 370 million euros. Analysts in a survey had predicted 304 million euros. The company also posted a net loss of 1.34 billion euros after writing down the value of assets and announced a 2 billion-euro share buyback.
Thomas Cook Group Plc (TCG) rallied 3.5 percent to 72.9 pence, climbing for the first time in seven days, after the travel company announced a one-year extension of its bank facilities to May 2014. The facilities comprise a 200 million-pound ($323 million) term loan and an 850 million-pound revolving credit facility. (source blomberg )
A gauge of European banks extended a two-year low as analysts warned that as many as 20 lenders may need to bolster capital. Kuehne & Nagel International AG, the 120-year-old shipping company, fell 4.4 percent after earnings missed analysts’ estimates. Royal Philips Electronics NV gained 2.2 percent as profit topped projections.
The Stoxx 600 dropped 0.3 percent to 266.16 at 8:23 a.m. in London. The gauge dropped 2.5 percent last week amid mounting concern the sovereign-debt crisis will spread to Italy and Spain. The selloff left the index trading at about 12.5 times reported earnings, near the cheapest since December 2008, data compiled by Bloomberg show.
“Friday’s stress tests have merely added to the uncertainty surrounding the health of the European financial system,” said Jonathan Sudaria, a trader at London Capital Group.
Standard & Poor’s 500 Index futures slid 0.5 percent today after the benchmark U.S. gauge tumbled 2.1 percent last week. MSCI Asia Pacific Index fell 0.3 percent, led by selloff in exporters such as Samsung Electronics Co.
German, Italian Stocks
Deutsche Bank AG (DBK), Germany’s biggest lender, slid 2.6 percent to 36.20 euros and Italy’s UniCredit SpA (UCG) lost 1.8 percent to 1.19 euros.
The European Banking Authority said 8 out of the 90 banks that failed the stress tests had a combined capital shortfall of 2.5 billion euros ($3.5 billion). The results were released after the close of trading on July 15.
Regulators didn’t include a Greek default in the tests even though credit default swaps indicate investors see an almost 90 percent chance of one. The EBA included a 25 percent writedown on 10-year Greek government bonds held in banks’ trading books even as the securities trade at about 51 cents on the euro.
JPMorgan Cazenove analysts led by Kia Abouhossein wrote in a report after the results were published that as many as 20 banks may need to boost capital.
“We remain worried about the secondary effect of the sovereign crisis into funding,” the JPMorgan analysts said. “Funding is the key concern, and without stress liquidity assumptions, the picture remains incomplete -- especially in current market conditions.”
Additional Capital
Christopher Wheeler, a banking analyst at Mediobanca SpA in London said UniCredit, Deutsche Bank, BNP Paribas (BNP) SA, Credit Agricole SA, Societe Generale (GLE) SA, Banco Santander SA and Credit Suisse Group AG (CSGN) are among banks that may have to raise a combined total of about 62 billion euros in additional capital. All the banks passed the EBA’s tests.
Kuehne & Nagel dropped 4.4 percent to 112.8 Swiss francs. The company reported second-quarter net income of 158 million francs ($194 million), trailing analyst estimates of 163 million francs.
Holcim Ltd. (HOLN) slid 1.5 percent to 55.56 francs after Chief Executive Officer Markus Akermann warned profitability may suffer “some pressure” as the cost of raw materials rises in local currencies. Akermann was speaking in an interview with Finanz & Wirtschaft.
Philips Gains
Philips advanced 2.2 percent to 17.75 euros after the world’s biggest maker of patient-monitoring systems reported second-quarter earnings before interest taxes and amortization of 370 million euros. Analysts in a survey had predicted 304 million euros. The company also posted a net loss of 1.34 billion euros after writing down the value of assets and announced a 2 billion-euro share buyback.
Thomas Cook Group Plc (TCG) rallied 3.5 percent to 72.9 pence, climbing for the first time in seven days, after the travel company announced a one-year extension of its bank facilities to May 2014. The facilities comprise a 200 million-pound ($323 million) term loan and an 850 million-pound revolving credit facility. (source blomberg )
Wednesday, July 13, 2011
European stock markets july 13 2011
European stock markets july 13 2011 : European stock markets edged cautiously higher Wednesday, helped by a firmer session in Asia overnight after a better-than-expected Chinese gross domestic product reading, which helped appetite for risk return after recent losses.
At 0750 GMT, the Stoxx Europe 600 index was up 0.1% at 268.50. London's FTSE 100 was 0.2% higher at 5879.44, Frankfurt's DAX was up 0.4% at 7201.63, but Paris's CAC-40 was 0.2% lower at 3765.34.
The slight gains followed marginally better-than-expected Chinese second-quarter GDP, which rose 9.5% from a year earlier, compared with 9.7% growth in the first quarter. It helped to lift the Shanghai Composite index trade up 1.5% in Asia Tuesday, while Hong Kong's Hang Seng index added 1.2%. Elsewhere, Japan's Nikkei Stock Average was up 0.5%, while South Korea's Kospi Composite was 0.9% higher.
The strong Chinese growth figures also helped metal prices recover in Asia overnight, in turn, offering the European basic resource sector a healthy lift. The Stoxx Europe 600 index for the sector rose 1.4%.
However, the European debt situation continues to influence sentiment, with Moody's downgrading Ireland's credit rating to junk status on Tuesday. Ireland now joins Greece and Portugal in the 'junk' rating category from Moody's.
This is of particular concern as many market participants have more hope for the Irish recovery story relative to Greece and Portugal, said Padhraic Garvey, strategist at ING Bank.
Attention will now be on a special summit of euro-zone leaders on Friday in a bid to break the deadlock over how to include the private sector in a new Greek aid package. The market expects the meeting on Friday to result in a solution, said Lloyds Corporate Markets. "If there isn't a meeting, or if the meeting fails to deliver, expect more market carnage," it added.
Among European corporate news, luxury retailer Burberry shares rose 5.1%, after it reported a better-than-expected 34% rise in first-quarter sales. By contrast, U.K. high-street bellwether Marks & Spencer Group shares dropped 2.2%, after it reported a difficult economic environment in its first-quarter figures, but posted sales that were marginally better than market views.
In foreign exchange markets, the euro staged a mild rebound as the solid China data lifted the risk-sensitive currency, though traders said upside still appears limited amid ongoing concerns about a wider debt crisis in the euro zone.
By 0754 GMT, the single currency was at $1.4045 against the dollar, from $1.3975 late in New York Tuesday. The dollar was at Y79.37, from Y79.25.
Among commodities, spot gold was at $1,571.30 a troy ounce, down $3.20 from its New York settlement Tuesday. August Nymex crude oil futures were up 15 cents at $97.58 a barrel. Meanwhile, in the bond market, the September bund contract was 4 ticks lower at 128.85.
Looking ahead to Wednesday's economic agenda, the U.K. publishes claimant count and unemployment rate figures, both at 0830 GMT. In the euro zone, industrial production data are at 0900 GMT, while in the U.S., import prices are due 1230 GMT. Attention will also be on Federal Reserve Chairman Ben Bernanke's testimony to U.S. Congress, at around 1400 GMT.
At 0750 GMT, the Stoxx Europe 600 index was up 0.1% at 268.50. London's FTSE 100 was 0.2% higher at 5879.44, Frankfurt's DAX was up 0.4% at 7201.63, but Paris's CAC-40 was 0.2% lower at 3765.34.
The slight gains followed marginally better-than-expected Chinese second-quarter GDP, which rose 9.5% from a year earlier, compared with 9.7% growth in the first quarter. It helped to lift the Shanghai Composite index trade up 1.5% in Asia Tuesday, while Hong Kong's Hang Seng index added 1.2%. Elsewhere, Japan's Nikkei Stock Average was up 0.5%, while South Korea's Kospi Composite was 0.9% higher.
The strong Chinese growth figures also helped metal prices recover in Asia overnight, in turn, offering the European basic resource sector a healthy lift. The Stoxx Europe 600 index for the sector rose 1.4%.
However, the European debt situation continues to influence sentiment, with Moody's downgrading Ireland's credit rating to junk status on Tuesday. Ireland now joins Greece and Portugal in the 'junk' rating category from Moody's.
This is of particular concern as many market participants have more hope for the Irish recovery story relative to Greece and Portugal, said Padhraic Garvey, strategist at ING Bank.
Attention will now be on a special summit of euro-zone leaders on Friday in a bid to break the deadlock over how to include the private sector in a new Greek aid package. The market expects the meeting on Friday to result in a solution, said Lloyds Corporate Markets. "If there isn't a meeting, or if the meeting fails to deliver, expect more market carnage," it added.
Among European corporate news, luxury retailer Burberry shares rose 5.1%, after it reported a better-than-expected 34% rise in first-quarter sales. By contrast, U.K. high-street bellwether Marks & Spencer Group shares dropped 2.2%, after it reported a difficult economic environment in its first-quarter figures, but posted sales that were marginally better than market views.
In foreign exchange markets, the euro staged a mild rebound as the solid China data lifted the risk-sensitive currency, though traders said upside still appears limited amid ongoing concerns about a wider debt crisis in the euro zone.
By 0754 GMT, the single currency was at $1.4045 against the dollar, from $1.3975 late in New York Tuesday. The dollar was at Y79.37, from Y79.25.
Among commodities, spot gold was at $1,571.30 a troy ounce, down $3.20 from its New York settlement Tuesday. August Nymex crude oil futures were up 15 cents at $97.58 a barrel. Meanwhile, in the bond market, the September bund contract was 4 ticks lower at 128.85.
Looking ahead to Wednesday's economic agenda, the U.K. publishes claimant count and unemployment rate figures, both at 0830 GMT. In the euro zone, industrial production data are at 0900 GMT, while in the U.S., import prices are due 1230 GMT. Attention will also be on Federal Reserve Chairman Ben Bernanke's testimony to U.S. Congress, at around 1400 GMT.
Tuesday, July 12, 2011
why stock market down today 12 july 2011
why stock market down today 12 july 2011 : World stock markets accelerated their falls on Tuesday as Italy struggled to avoid being sucked into the escalating European debt crisis, and Greece moved closer to default.
Bank shares were in retreat across Europe, driven by fears that Italy will soon be unable to borrow on the international money markets. The euro continued to lose value rapidly and hit a low of $1.388 – it has now lost more than 3 cents against the dollar since Monday morning.
The banks are biggest fallers, because of concerns that the European crisis is spreading to Italy and Spain.
There were heavier losses across Europe. The main Italian index, the FTSE MIB, tumbled by 4.1% – with shares in Italy's biggest bank, Unicredit, being temporarily suspended after falling more than 7%.
In the bond markets, the yield – or interest rate – on Italian 10-year bonds approached 6%, the highest in at least a decade. Spanish yields hit 6.2%. Economists have warned that these borrowing costs are approaching unsustainable levels.
The slump in the euro illustrates the pressure that is building up against the single currency as Europe's debt crisis rumbles on, warned Jane Foley, senior currency strategist at Rabobank International.
U.S. markets were in line with Asian and European stocks, which fell as investors remained overwhelmed by weak economic data, and European officials met in Brussels to discuss fiscal troubles in the euro zone.
After weeks of uncertainty related to bailouts for Greece, the Italian authorities moved to rein in short-selling on the Milan stock exchange as fears mounted that Italy could become the next victim of the sovereign debt crisis.
There is so much going on in the world that you almost need a scorecard to keep up
"If Italy becomes more of a problem, then it could spiral out of control and cause the much-feared contagion that some have predicted," . "If that is the case, then a global economic slowdown will likely hit our shores here and take the legs out of an already wounded U.S. economy."
Stock markets in Asia also suffered heavy losses overnight, with Japan's Nikkei losing 1.43% and the Hong Kong Hang Seng index dropping by 2.57%.
The Dow Jones industrial average was down 151.44 points, or 1.20 percent, to 12,505.76. The broader Standard & Poor's 500-stock index fell 24.31 points, or 1.81 percent, to 1,319.49. The Nasdaq composite lost 57.19 points, or 2 percent, to 2,802.62.
why dow jones down today 12 july 2011, why stock market down again 12 july 2011, asia stock market, European stock market predicction july 13 2011.
Bank shares were in retreat across Europe, driven by fears that Italy will soon be unable to borrow on the international money markets. The euro continued to lose value rapidly and hit a low of $1.388 – it has now lost more than 3 cents against the dollar since Monday morning.
The banks are biggest fallers, because of concerns that the European crisis is spreading to Italy and Spain.
There were heavier losses across Europe. The main Italian index, the FTSE MIB, tumbled by 4.1% – with shares in Italy's biggest bank, Unicredit, being temporarily suspended after falling more than 7%.
In the bond markets, the yield – or interest rate – on Italian 10-year bonds approached 6%, the highest in at least a decade. Spanish yields hit 6.2%. Economists have warned that these borrowing costs are approaching unsustainable levels.
The slump in the euro illustrates the pressure that is building up against the single currency as Europe's debt crisis rumbles on, warned Jane Foley, senior currency strategist at Rabobank International.
U.S. markets were in line with Asian and European stocks, which fell as investors remained overwhelmed by weak economic data, and European officials met in Brussels to discuss fiscal troubles in the euro zone.
After weeks of uncertainty related to bailouts for Greece, the Italian authorities moved to rein in short-selling on the Milan stock exchange as fears mounted that Italy could become the next victim of the sovereign debt crisis.
There is so much going on in the world that you almost need a scorecard to keep up
"If Italy becomes more of a problem, then it could spiral out of control and cause the much-feared contagion that some have predicted," . "If that is the case, then a global economic slowdown will likely hit our shores here and take the legs out of an already wounded U.S. economy."
Stock markets in Asia also suffered heavy losses overnight, with Japan's Nikkei losing 1.43% and the Hong Kong Hang Seng index dropping by 2.57%.
The Dow Jones industrial average was down 151.44 points, or 1.20 percent, to 12,505.76. The broader Standard & Poor's 500-stock index fell 24.31 points, or 1.81 percent, to 1,319.49. The Nasdaq composite lost 57.19 points, or 2 percent, to 2,802.62.
why dow jones down today 12 july 2011, why stock market down again 12 july 2011, asia stock market, European stock market predicction july 13 2011.
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