Chapter 11 at GM sends US stocks up June 1, 2009 US stocks rose yesterday, sending the S&P 500 to its highest close in seven months, as reassuring economic data reinforced hopes that demand will stabilise, while General Motors’ long-expected bankruptcy filing ended uncertainty about the carmaker’s fate. Data showing that the US manufacturing sector contracted in May at a slower rate than expected fuelled hopes [...]
Lower market volatility sees swing trading appeal rising June 1, 2009 IT might be tempting for a trader to despair in these markets. Volatility is low – as measured by the CBOE’s Volatility Index it is below the 30 mark, compared with 89 in October. There is little movement anywhere. Take for example the FTSE 100, which is stuck in the 4,300-4,500 range. Day trading has [...]
TRADERS LOOK BEYOND THE US DOLLAR June 1, 2009 MARK OUTTENSENIOR DEALER, GFT PRIOR to 2007 it seemed that every time you turned on a financial news channel someone would mention the “carry trade,” which involved buying and holding currencies with the highest interest rates against currencies with the lowest. Many gambled that the difference in relative yields would more than compensate the holder [...]
Economic cheer sees FTSE break through 4,500 barrier June 1, 2009 THE FTSE 100 ended 2 per cent, or 88.25 points, higher yesterday at 4,506.19 as some unusually upbeat data saw optimism about the global economy rise. Mining stocks led the charge, as metal prices firmed, bolstered by hopes for increased demand particularly following bullish Chinese data. China’s official purchasing managers index for May stayed above [...]
All eyes on the Bank but is giving credit all that is due? May 31, 2009 A STRING of economic data is due over the next five days which, after a relative drought recently, are likely to impact investor confidence should there be any surprises. The Bank of England will be acutely aware of this ahead of its interest rate decision on Thursday. With most economists predicting the central bank to [...]
MARK ON THE MARKETS May 31, 2009 THERE will be plenty for the market to mull over this week. Amongst the economic news, we are expecting PMI surveys, consumer confidence and PPI out of the UK; unemployment figures from the eurozone; as well as consumption data-including the Fed’s preferred inflation measure-from the US. On Wednesday we will hear the views of Fed [...]
In a range-bound market, predicting the peak can pay May 31, 2009 FOLLOWING substantial rallies back in April and early May on the back of green shoots, the blue-chip FTSE 100 has levelled off over the past month. Although the pace of decline is slowing, there are concerns that shares have risen too fast. The leading UK index has since been range bound between 4,300 and 4,500. [...]
GERMAN DATA PUTS EURO ON THE BACK FOOT May 31, 2009 THIS week brings policy meetings from the Bank of England, the Reserve Bank of Australia, the Bank of Canada and the European Central Bank. While the market is not expecting a change in policy from any of these central banks, the rhetoric will be closely monitored for any signs of cautious optimism. The ECB’s policy [...]
THE TIPSTER AVOID THE DASH FOR TRASH May 31, 2009 AN economic recovery still remains uncertain so avoid the “dash for trash” and look for stocks that have intrinsic value. The banks have been having a tough time but one that’s stood out is Standard Chartered, which has been making a series of senior appointments to its capital markets team in recent months. The bank’s [...]
Falling bond yields cheer Wall Street May 28, 2009 US stocks climbed more than 1 per cent yesterday as higher oil prices drove up energy shares and falling yields in the bond market eased concerns that higher borrowing costs would hinder economic recovery. Energy company shares, including Exxon Mobil, rose as US crude oil settled above $65 a barrel for its highest close since [...]