US & World Daily Markets Financial Briefing 31-03-2009

Get our Daily Trade Signals and Grain Newsletter along with a copy of the CBOT Introduction to Agricultural Futures and Options Book for Free! The grain trading professionals at MF Global can guide you in the right direction with your trading. Click here to Get your Free Grain Trading Kit Today

Stocks showed a strong upward move at the start of trading on Tuesday, with the major averages moving back to the upside after ending the previous session sharply lower. The initial strength came as some traders used Monday's weakness as a buying opportunity.

After turning in some of the worst performances on Monday, banking, steel, and brokerage stocks are helping to lead the way higher in early trading. Real estate, health insurance, and oil service stocks are also posting notable gains.

In the past few minutes, the major averages have pulled back off their highs for the young session, although they remain firmly positive. The Dow is currently up 54.72 at 7,576.74, the Nasdaq is up 23.29 at 1,525.09 and the S&P 500 is up 6.93 at 794.46.

This comprehensive trading toolkit sports a new efficient & intuitive interface and an expanded arsenal of technical analysis resources. Easy access to powerful tools, highly developed charting technology, Dow Jones news, and an advanced level of customization, sophistication & convenience set VT Trader™ apart from other Forex trading platforms. Click here

Dollar, yen rise, euro under pressure

The dollar rose against the euro and fell against the yen as US stocks dived on concern about the auto sector.

The Obama administration's rejection of turnaround plans submitted by General Motors and Chrysler caused a wave of selling on Wall Street and sent the dollar higher against most major currencies.

The dollar's safe haven appeal was also increased by comments over the weekend by Treasury Secretary Tim Geithner who said that some banks will need more help and the government has around $135bn left for bank bailouts.

The dollar index which measures the greenback against six other major currencies rose to 85.712 in late US trade from 85.138 the previous session.

The yen' s safe haven status was in demand, sending it 0.9% higher against the dollar.

Jitters ahead of this week's G20 meeting in London also pushed the yen and dollar higher.

The euro remained under pressure on Monday ahead of the European Central Bank's decision on interest rates later this week. Increasing expectations that the central bank may also announce steps such as quantitative easing also put off buyers.

Sterling fell 1% against the dollar, despite encouraging economic data, as stock markets tumbled. Fresh data from the Bank of England showed mortgage approvals rose 38,000 in February from 32,000 in January, its highest level in nine months.

Do you want to trade the e-mini S%P profitably without the cumbersome technical analysis? Take the guess work of out of trading, and trade with automated Price Action method only. Proven and Consistent. Click here to find out more

European banking shares are still going well in midday trade on Tuesday, clawing back some of yesterday's steep losses.

Switzerland's UBS and German sector giant Deutsche Bank are going well, while Barclays gained after deciding not to sign up to the UK government's asset protection scheme.

Financial services group Fortis rose despite reporting a larger than expected €28bn full-year net loss following the sale of its banking operations to the Dutch and Belgian governments.

The sale of Fortis' banking activities resulted in a loss of €29.4bn, while the sale of its Dutch insurance assets generated a profit of €2bn. The Belgian-Dutch group made a net profit of €4bn last year.

Chief executive Karel De Boeck said the operational results of its insurance companies were "satisfactory" taking into consideration the market turbulence. Total gross inflows were €14.6bn despite challenging market conditions. Fortis' general division made a 2008 net loss of €629m due to net interest and a one-off €295m loss on currency transactions.

Across the markets, the German DAX has risen 53 points to 4,042, the French CAC is up 47 points at 2,767, while the Swiss market gained 126 points to 4,872.

Carmakers are also on the road to recovery after Chrysler said it has agreed a framework of a global alliance with Italian peer Fiat, supported by the US Treasury. Fiat is going well, as are French rivals Peugeot and Renault.

Elsewhere in the sector, German chancellor Angela Merkel is due to speak at the headquarters of Opel, the European unit of General Motors, later today.

On Monday, the Obama administration decided to reject turnaround plans submitted by General Motors and Chrysler. The President demanded both groups make changes if they are to receive any more government help.

In economic news, eurozone consumer price inflation plunged to a new record low of 0.6% in March from 1.2% in February, according to European Union statistics office Eurostat.

"With Eurozone consumer price inflation falling substantially further below the ECB's target level in March and a period of deflation looking ever more likely, there is an ever more compelling case for the ECB to reduce interest rates further at Thursday's policy meeting and we expect the bank to deliver another 50 basis point cut to 1.00%," said Howard Archer, chief UK economist at IHS Global Insight.

"In addition, the ECB is under increasing pressure to come up with additional measures to try and boost economic activity, and it may well also announce on Thursday that it will extend the period that it will provide unlimited liquidity to banks from six months to one year."


CAC 40 - Risers

1. ArcelorMittal SA (MT) € 15.19 +5.63%
2. EADS (EAD) € 8.88 +4.78%
3. Saint Gobain (SGO) € 20.23 +3.74%
4. BNP Paribas (BNP) € 30.12 +3.36%
5. Carrefour (CA) € 29.06 +3.03%
6. Pernod Ricard (RI) € 40.99 +2.89%
7. LVMH (MC) € 46.60 +2.78%
8. Bouygues (EN) € 26.25 +2.76%
9. Accor (AC) € 25.87 +2.66%
10. Vallourec (VK) € 67.33 +2.61%

CAC 40 - Fallers

1. Societe Generale (GLE) € 28.35 -1.90%
2. Dexia (DEXB) € 2.46 -1.75%
3. Suez Environnement Company (SEV) € 10.91 -0.46%
4. Lafarge (LG) € 32.91 -0.14%

Come Into the LIVE Online Trading Session and Watch Us Make at Least 1 Point ($500 - $2000 a Day). The LIVE Trading Session is Completely FREE! - Sign Up Now here!

Tuesday, the Indian market closed higher in a choppy session due to fund buying on the last day of the financial year. Signs of recovery in the other Asian markets, the strong opening of the European markets and higher US index futures also improved investor sentiment.

Buying interest was seen across the sectors. Stocks of capital goods, realty, auto and metal companies outperformed the broader market, while consumer durable, public sector and oil/gas stocks closed with modest gains.

After opening higher at 9,633, the BSE Sensex moved down to 9,547 in early trading. The benchmark saw a sharp comeback since then and rose to a high of 9,826 before paring some of its gains to finish at 9,708, up 140 points or 1.47% over the previous close. Likewise, the S&P CNX Nifty rose 43 points or 1.44% to 3,021.

Second-line stocks also showed handsome gains. On the BSE, the market breadth was extremely positive, with advancers outnumbering decliners by 1553 to 900. The small-cap index rose 1.46%, the mid-cap index gained 2.27% and the broad-based BSE 500 index moved up 1.76%.

Twenty-five out of 30 Sensex stocks closed firm, but HDFC, NTPC, ICICI Bank, Hindustan Unilever and ONGC ended in the red.

Japan unemployment hits three-year high

Japan's unemployment rate hit a three-year high of 4.4% in February, the latest gloomy economic figures to come from the ailing Far Eastern economy show.

Unemployment rose to 4.4% from 4.1% in January, as the effects of the global downturn forced companies in the export-dependent country to slash jobs to cut costs. It means the total jobless number stands just short of 3m.

A fall in demand for goods such as cars and TVs from the US, Europe and elsewhere has hit the Japanese economy hard.

Japanese industrial production dropped for the fifth month in a row in February, official figures showed Monday.

Industrial production fell 9.4% compared with January.

Prime minister Taro Aso is expected to unveil new measures to revive the country's economy including a new Y10trn (£70bn) stimulus package.

The most traded market in the world; 24 hr market platform with the latest news, prices and charts gives you the knowledge to invest in this exciting and fast moving market.
Click here

Crude below $49 on auto woes

Oil fell below $49 a barrel on Monday as the new Obama administration got tough with the beleaguered US car industry.

The government’s rejection of turnaround plans submitted by General Motors and Chrysler caused a wave of selling on Wall Street and sent oil prices sharply lower. There are increasing fears that both car giants may have to file for insolvency.

US light crude oil for May delivery settled $3.97 lower at $48.41 a barrel on the New York Mercantile Exchange.

Last week’s rally, the latest blow to the car industry, data showing higher than expected crude stockpiles and grim economic data out last Friday weighed heavily on sentiment on Monday and took crude over 6% lower. The stronger dollar also pressured demand for crude.

Among precious metals gold for June delivery fell $7.60 to settle at $917.70 an ounce as the rising dollar reduced its appeal as an alternative investment.

Earlier in the day, gold’s safe haven status gave the yellow metal a boost on unease about renewed talk of insolvency in the car sector.

In other metals silver for May was down 23 cents at $13.03 an ounce while July platinum sank $16.90 to $1,120 an ounce.

Japan's industrial output slides

Japanese industrial production has dropped for the fifth month in a row in February, official figures showed Monday.

Industrial production fell 9.4% compared with January as demand for Japanese cars, electronics and machinery was hit by the global downturn.

On the positive side, industrial production is expected to rise again, 2.9% in March and 3.1% in April, according to data from the Ministry of Economy, Trade and Industry.

The latest streaming prices and news on major commodities from precious metals to crude oil, so you can keep up-to date and never miss a trading opportunity again.
Click here

Investors Hub Services