Positive PMI boosts sterling November 3, 2010 STRONGER-than-expected figures on the UK service sector yesterday caused the pound to rise to its highest level against the dollar and the euro for nine months and reduced the chances that the Bank of England will opt to engage in a second round of quantitative easing to boost the economy. The purchasing managers’ index (PMI), [...]
Algo traders hit by tough new Fed rules November 3, 2010 High-frequency traders will no longer be able to gain unfettered or “naked” access to public markets under a rule adopted by the US Securities and Exchange Commission. The SEC voted unanimously yesterday to require brokerages to have rules in place to protect against potential mishaps from unlicensed traders when brokerages rent out their access to [...]
Stocks rally as market anticipates Fed decision on QE this evening November 2, 2010 US TREASURY yields were yesterday close to their lowest levels since January 2009 on the back of expectations that the Federal Reserve will today restart its quantitative easing (QE) programme. Ten-year treasury yields are at 2.6 per cent while five-year notes hit 1.2 per cent. Analysts expect the Fed to announce bond purchases of between [...]
FTSE lifted more than one per cent on the back of strong corporate earnings November 2, 2010 STRONG corporate earnings hoisted Britain’s top shares by more than one per cent on yesterday, led by energy stocks after BP and BG Group results and ahead of the outcome of the eagerly awaited US Federal Reserve policy meeting. At the two-day meet in Washington which started yesterday, the Fed will consider the prospect of [...]
US stocks up as elections and a Fed decision loom November 2, 2010 US stocks rose yesterday on the expectation the midterm election and a Federal Reserve decision would create a more business-friendly environment, though many traders forecast a selloff in the days ahead. The S&P 500 index has risen almost 14 per cent since September on speculation of Republican congressional gains and measures by the Federal Reserve [...]
QE2 MAY GIVE US DOLLAR A RELIEF RALLY November 2, 2010 DIRECTOR OF CURRENCY RESEARCH, GFT AS THE currency world turns its attention to today’s FOMC statement, which is expected to reveal the terms of its QE2 programme, it may be useful to ask why do US monetary officials insist on quantitative easing in the first place? After all, most economists agree that this round of [...]
Australia looks fantastic. Time to get out then November 2, 2010 IN AUSTRALIA, it is summer in more ways than one. The Fed might be gearing up the printing presses again for winter, but down under the economy is actually booming. In a move unseen anywhere else in the developed world, the Reserve Bank of Australia (RBA) decided on Monday night to increase interest rates by [...]
THE TIPSTER November 2, 2010 UK CONSTRUCTION data came in weaker than expected on Tuesday and the recent sterling-euro strength was reversed. Considering that the bulk of the GDP number was heavily dependent on construction figures, analysts fear that the next release of GDP data may come in weaker. If this is the case sterling-euro could face further weakness. Capital [...]
FOREX ANALYST PICKS November 2, 2010 FOREX STRATEGIST JOEL KRUGER My pick: Buy dollar-yen at ¥79.50 Expertise: Classic technical analysis Average time frame of trades: 1 month-12 months This market has been under intense pressure for several months, with the price dropping to fresh multi-year lows and now quickly closing in on a retest of the 1995 record lows by ¥79.75. [...]
Recession… what recession? November 1, 2010 Buoyant manufacturing figures from the UK, the US and China boost hopes for global recovery Factories continued to fire back to life last month, with manufacturing in the UK, the US and China rebounding more strongly than economists had expected. In the UK, the manufacturing sector kicked off the fourth quarter on a high note, [...]