Torrent of EU news batters Wall Street November 1, 2011 US stocks tumbled yesterday after investors were blindsided by a surprise call for a Greek referendum on an EU bailout plan, casting doubt on the sustainability of the recent market rally. The S&P 500 has slid more than five per cent so far this week in moves reminiscent of the stomach-churning market swings seen over [...]
Japan can’t scare off safe haven status November 1, 2011 THE yen will continue to strengthen against major currencies. No matter the actions of Japan’s authorities, attempts to bring it down are destined to fail. It is not as though Japan’s leaders haven’t been trying – the economy has been mismanaged for decades. But interventions and gargantuan government debt have done nothing to dissuade the [...]
DON’T TOE THE LINE OF CABLE COMPLACENCY November 1, 2011 LOOKING at the carnage that is the Eurozone today from the comfort of a Canary Wharf office, it is easy to feel superior. After all, the UK appears to be relatively immune to the chaos that’s currently occurring in European capital markets. With Greece “circling the drain” as some of my fellow analysts have so [...]
THE TIPSTER November 1, 2011 AFTER a month long rally against the dollar, the euro wiped out almost half the gains falling 440 pips in one day, with the news of a Greek referendum and the European Central Bank’s consideration in cutting rates looming large. The euro-dollar pair is in freefall and will take a strong bit of positive news [...]
FOREX ANALYST PICKS November 1, 2011 FOREX STRATEGIST JOHN KICKLIGHTER My pick: Long dollar-Canadian dollar, short sterling-dollar Expertise: Fundamental analysis with risk management Average time frame of trades: 1 day to 1 week We witnessed an incredible swing in risk trends preventing both my sterling-yen and Aussie-dollar setups from triggering. The dollar-Canadian dollar managed to hit the Ca$0.9970 short, but it [...]
Weaker mining and energy prices drag the FTSE down October 31, 2011 BRITAIN’S top share index fellback yesterday, led by weaker miners and energy issues, as commodity prices retreated under the influence of a firmer dollar and worries over demand from China, with banks also under pressure after recent gains. Miners and integrated oil stocks took over 30 points off the UK blue chip index, as they [...]
Winning month in US ends on a low October 31, 2011 WALL Street closed its best month in 20 years on a down note yesterday as the failure of trading firm MF Global Holdings and new worries about Europe’s debt crisis hammered financial shares. In a sign that Europe’s woes were far from over, Italian and Spanish bond yields soared, prompting the European Central Bank to [...]
Build profits by going short on infrastructure October 31, 2011 PRIME Minister David Cameron has been keenly reiterating the coalition government’s commitment to infrastructure spending. Although he isn’t an open follower of John Maynard Keynes, the idea of this kind of deficit spending designed to stimulate aggregate demand came from the Cambridge economist’s mind. However, traders should stay cynical. Recession left the cupboard bare and [...]
EQUITY BEARS SORE BUT MAY GET LAST BITE October 31, 2011 YESTERDAY, global equity markets were giving back some of the extraordinary gains made during October. Yet despite this, the month-long rally has been impressive while extremely unpleasant for stock market bears. Technically, a number of major stock indices broke through significant resistance levels. By the end of last week the FTSE, S&P and Dow had [...]
That is just too much information October 31, 2011 LOOKING at the market reaction to recent events, traders could be forgiven for sitting in front of their screens, scratching their heads, unable to make heads or tails of anything. Whispers through the grapevine cause big moves in price, but official statements barely register. Perhaps traders are paying heed to the old rule of thumb [...]
