CORPORATE EARNINGS TO SET THE TONE July 12, 2010 LAST week saw extraordinary gains on equity markets just when it looked like we were heading for another meltdown. In the preceding week, numerous technical support levels were breached as a number of major indices slumped below significant retracement levels. There was talk of “death crosses” appearing on various charts as 50-day moving averages slipped [...]
Depressed mining stocks are finally starting to look attractively valued July 12, 2010 IT WAS a tough second quarter for London-listed miners, which were dealt a severe blow by a toxic combination of general risk aversion, a planned tax on miners’ profits in Australia and a government-orchestrated slowdown in China. After reaching 25,356.51 on 6 April – its best level since July 2008 – the FTSE 350 mining [...]
THE TIPSTER July 12, 2010 INVESTMENT management company Ashmore Group releases its trading update tomorrow. It was recently recommended as a “buy” by KBC Peel Hunt as it should benefit from continued allocation of investment funds to emerging markets and European corporate credit markets. Ashmore’s shares have risen 10 per cent since then, but are still 2 per cent down [...]
BP gains while UK economic headwinds subdue the FTSE July 12, 2010 A JUMP in the share price of BP on hopes that the Gulf of Mexico oil leak will soon be capped outweighed a weakness in miners to push the FTSE 100 share index higher for a fifth session yesterday. The index closed up 34.08 points, or 0.7 per cent, at 5,167.02 having last week gained [...]
Traders hold their breath for results July 12, 2010 CAUTION prevailed in the US stock market yesterday, with indexes edging higher as investors kept bets to a minimum in front of earnings. Volume was among the lightest of the year with investors wanting to see if corporate outlooks validate last week’s surge, the strongest week in a year. Dow component Alcoa reported its second-quarter [...]
US second quarter earnings steer shares upward July 11, 2010 European stock markets are headed higher once again on the open this morning, continuing last week’s buying spree which gave us the biggest weekly rally in a year. GFT is quoting the FTSE 100 index to open up 35 points from Friday’s close, at 5,167. The German DAX is also expected to start higher, up [...]
JAPANESE MARKET July 11, 2010 Japanese shares and government bonds are likely to face initial selling pressure today after the government lost an upper house election – a reverse that could thwart its ambitions to curb public debt. Longer term, though, markets will eye which smaller parties the ruling Democratic Party allies with, what policy compromises it makes and whether [...]
The markets are on the turn, but only in the short-term July 11, 2010 THE success of Paul the octopus at predicting the outcome of World Cup matches has left many spread betters green with envy at his powers. What would be better than being able to predict with accuracy the bottom of the market? But in the absence of any psychic ability, traders have to rely on market [...]
The unreliability of the Baltic Dry July 11, 2010 SINCE the end of May, the Baltic Dry Index, which measures worldwide international shipping prices of dry bulk, has plummeted some 50 per cent. It has now fallen for 31 consecutive days – its worst run in more than six years – raising concerns among investors about both the outlook for world trade and for [...]
THE TIPSTER July 11, 2010 AFTER this column tipped a sell of dollar-Canadian dollar at C$1.0675 on Tuesday of last week, the loonie rallied hard against the greenback late in the week and dropped all the way down to C$1.0303 by Friday afternoon. The market has suddenly started to price in a possible interest rate hike in Canada following the [...]
