US rallies on hopes of Greek debt plan May 31, 2011 WALL St bulls took the upper hand with a one per cent rally yesterday as hopes for a new plan to deal with Greece’s debt crisis relieved some investor worry, but grim economic data suggested more hurdles ahead as the S&P 500 closed out its worth month since August. Stocks rebounded late in the session, [...]
Belarus devalues its way to hyperinflation May 31, 2011 LAST week, Belarus demonstrated very clearly what happens to a country when it does not address its deficit, does not rein in spending and tries to mask its problems with state intervention. Overnight, the National Bank of Belarus devalued the Belarusian rouble by 56 per cent. The devaluation resulted in an immediate 24 per cent [...]
DOLLAR-YEN IS FOCUSED ON US JOBS NUMBERS May 31, 2011 YESTERDAY, Moody’s threw a bombshell into the currency market by announcing that it could lower Japan’s Aa2 rating in the coming months. Dollar-yen jumped nearly 100 points as a result of the news, rising to a high of ¥81.80. In its note, the ratings agency cited “heightened concern that faltering economic growth prospects and a [...]
Bitcoins are rising fast – but risky too May 31, 2011 RICKARD Falkvinge, the Swedish IT entrepreneur and founder of the first Pirate Party, has announced he is piling all his money into bitcoins, a digital currency that is attracting a lot of online interest. Although the technology is groundbreaking and its security substantial, Falkvinge is nevertheless taking a huge leap of faith. Satoshi Nakamoto, a [...]
THE TIPSTER May 31, 2011 PERIPHERAL Europe, the US budget impasse and escalating tightening measures in China remain the key drivers for commodity currencies and dollar crosses. Swiss franc pairs express these themes very well given Switzerland’s immense external position and strong output. As well as being a safe-haven, Swissie pairs are also benefiting from strong Swiss economic growth. Alpari [...]
Yen faces bleak long-term prospects May 31, 2011 IG INDEX CHRIS BEAUCHAMP The yen suffered a sharp drop on Tuesday following a double-whammy of bleak news for the Japanese economy. It fell initially after a report on April’s factory output showing growth was even lower than forecast, at 1 per cent rather than 2.2 per cent, and then retreated even further after Moody’s [...]
FOREX ANALYST PICKS May 31, 2011 FOREX STRATEGIST JOHN KICKLIGHTER My pick: Short euro-dollar and Kiwi dollar-dollar Expertise: Fundamental analysis with risk management Average time frame of trades: 1 day to 1 week Neither the euro-dollar nor Aussie dollar-dollar short setups from last week triggered, as risk appetite trends bounced and speculation for the end of QE2 failed to catch traction [...]
Muted gains for FTSE are expected with US payrolls May 30, 2011 WHILST UK and US stock markets were closed for an extended holiday weekend yesterday, other global markets struggled to find direction in thin volume, doing little more than drift sideways. Greek troubles continue to permeate investor caution. In out-of-hours trading, GFT is forecasting the UK index to edge higher, with prices suggesting an open of [...]
WALL STREET WEEK AHEAD May 30, 2011 THE world looks a lot more dangerous than it did only a few months ago and US stock investors are starting to demand more for the added risk. With important manufacturing and jobs data due this week, it could start to get even riskier. That means nervous investors are likely to keep a lid on [...]
Emerging markets are big business for the UK May 30, 2011 BRITAIN’S diverse business and professional services sector makes up a vital, under-recognised part of this country’s economy. Ranging from accounting and credit information to recruiting and management consulting, its companies are leading their competitors in capitalising on the development of emerging markets. AT THE VANGUARD The financial director of Hays, Paul Venables, says emerging markets [...]