Greg Secker – Global Market Update

International Report

The FTSEurofirst 300 index rose 0.9% to close at 1,070.90 points. The Dow Jones industrial average gained 0.45%, to close at 10,733.67. The Standard & Poor’s 500 Index climbed 0.58% to close at 1,166.21. The Nasdaq Composite Index jumped 0.47% to close at 2,389.09. The Nikkei dropped 102.95 points to close at 10,744.03. The Topix index fell 0.7% to close at 940.79.

In February, gasoline prices fell sharply attributing to the largest drop in US wholesale prices in seven months. This left scope for the Federal Reserve to keep short-term interest rates at a record low. The Labor Department stated that in the month of February, the producer price index for finished goods dropped by a seasonally adjusted 0.6%. Yesterday, the Greek Prime Minister warned that he could turn to the International Monetary Fund for support if EU leaders failed to provide them with an adequate rescue package. Finland, the Netherlands and Italy are all in favour of this.

Due for release today is the GBP Public Sector Net Borrowing, USD Core CPI m/m, USD Unemployment claims and USD Philly Fed Manufacturing Index.

 by Greg Secker

International Report

The FTSEurofirst 300 index closed 1% higher at 1,061.17 points after reaching 1,063.71 in the session. The Dow Jones industrial average gained 0.41%, to close at 10,685.98. The Standard & Poor’s 500 Index rose 0.78%, to close at 1,159.46. The Nasdaq Composite Index gained 0.67%, to close at 2,378.01. The Nikkei climbed 1.2% to close at 10,846.98. The Topix rose 1% to close at 947.43.

Yesterday, after giving a mixed outlook on America’s journey out of recession the Fed has signalled that it would hold interest rates at almost zero for at least six months. Wall Street shares rose, after the Fed stated that rates would stay in the 0-0.25% range,. Chairman Ben Bernanke also stated that economic activity had shown continued strengthen and that there were signs of stabilisation in the labour market. Yesterday, Greece was not downgraded by Standard & Poor’s, this in turn pushed the euro to a session high and also boosted US stocks. S&P warned Greece that it was still at risk of a rating cut within the next 18-24 months if its deficit cutting plan failed.

Due for release today is the JPY BOJ Press Conference, GBP Claimant Count Change, GBP MPC Meetings and USD PPI m/m.

 by Greg Secker

International Report

The FTSEurofirst 300 index fell 0.7% to close at 1,051.12 points. The Dow Jones industrial average gained 0.16%, to close at 10,642.15. The Standard & Poor’s 500 Index 0.05%, to close at 1,150.51. The Nasdaq Composite Index fell 0.23%, to close at 2,362.21.The Nikkei index closed down 30.27 points at 10,721.71. The Topix index remained almost constant at 938.10.

Jean-Claude Juncker the Eurogroup chairman said that the eurozone finance ministers will help Greece to reduce its debt. Juncker said the support is most likely to be in the form of bi-lateral loans. In February, US industrial production braked sharply, however figures showed yesterday that manufacturing activity in the New York state stalled this month. Analysts said that they still believed the factory-led economic recovery remained on track and that in March they expect a rebound in industrial production. In the Federal Reserve meeting on interest rates today, the US central bank is expected to hold overnight interest rates in a range of zero to 0.25% and pledged to keep them low for an extended period of time.

Due for release today is the EUR German ZEW Economic Sentiment, USD Building Permits, USD FOMC Statement and USD Federal Funds Rate.

by Greg Secker

International Report

The FTSEurofirst ended up 0.3% to close at 1,058.97 points. This week, the index rose 0.8% and is now up 64% since its low in March last year. The Dow Jones industrial average gained 0.12%, to close at 10,624.69. The Standard & Poor’s 500 Index dropped 0.02%, to close at 1,149.99. The Nasdaq Composite Index fell 0.03%, to close at 2,367.66.

Today, the Eurozone finance ministers are discussing plans to support the Greek government through a programme of loan guarantees or bilateral loans. The 16 single currency members are preparing a rescue package worth up to €25bn (£16.4bn). This aid package will only kick in if Athens struggles to refinance itself. Since November, Greece has been in crisis after it revealed its budget deficit was running at 12.7% of its GDP. Opec fears that its control on the global supply of oil is under threat from Iraq, due to a rising output of from Iraq’s oilfields. In February, Iraqi oil exports were at their highest for two decades, at an average of 2.08m barrels per day.

Due for release today is the USD TIC Long-Term Purchases and the AUD Monetary Policy Meeting Minutes.

by Greg Secker

International Report

The FTSEurofirst 300 index closed up 0.6% to close at 1,058.81 points. The index is up 1.2 percent so far this year. The Dow Jones industrial average climbed up 0.03%, to close at 10,567.33. The Standard & Poor’s 500 Index climbed at 0.4%, to close at 1,145.61. The Nasdaq Composite Index rose or 0.78%, to close at 2,358.95. The benchmark Nikkei gained 64.07 points to close at 10,627.99. The Topix gained 0.6% to close at 928.00.

A group of Europe’s leading economies has asked the European Union to look into banning speculative trading in credit default swaps (CDS).  France and Germany in particular want more control in tackling extreme speculation and to police the deficit spending of other member states. This move has been fueled by Greece’s outburst opposing CDS contracts and blaming these products for amplifying its bond market woes. Members of the European Parliament have voted in favour of a Tobin tax on financial transactions. This was passed yesterday, by 536 votes to 80 and the European Commission will now investigate a levy. Yesterday, it was stated that lenders to Dubai World will get a range of options including full repayment once Abu Dhabi decides on the support it will provide to Dubai. Yesterday, Treasury Department data revealed that in February the US posted a record $220.91bn (£147bn) budget deficit.

Due for release is the CHF Libor Rate, CHF SNB Monetary Policy Assessment, CAD Trade Balance, USD Trade Balance, USD Unemployment Claims and NZD Retail Sales m/m.

by Greg Secker

International Report

The FTSEurofirst 300 dropped 0.1% to close at 1,052.55 points. The Dow Jones industrial average gained 0.11%, to close at 10,564.38. The Standard & Poor’s 500 Index climbed up 0.17%, to close at 1,140.45. The Nasdaq Composite Index added 0.36%, to close at 2,340.68. The Nikkei ended almost flat, dropping 3.73 points to close at 10,563.92. The Topix fell 0.2% to 922.44.

Yesterday, the US didn’t support the Greek proposals to impose strict curbs on credit default swaps. Prime Minister George Papandreou had discussions with President Obama in the hope of convincing him to back these plans. Greece insists speculators betting against Greece by trading credit default swaps (CDS) assisted it fall in to economic decline. The Obama administration stated that the President others ideas to make the system fairer. Yesterday, a leading firm that tracks pay data said that in 2009 US consumer, financial and technology companies slashed bonuses for their chief executives by more than half. Today the China Securities Journal reports, that in February Chinese banks extended about 700bn yuan (£68.2bn) in new loans, down from 1.39 trillion yuan in January.

Due for release today is the GBP Manufacturing Production m/m, NZD Official Cash Rate, RBNZ Press Conference, RBNZ Rate Statement, AUD Employment Unemployment Change, CNY Industrial Production.

 by Greg Secker

International Report

The FTSEurofirst 300 index was down 0.8% closing at 1,044.89 points. The Nasdaq climbed +0.25% and the S and P 500 dropped 0.02% at 1,138.50.

Yesterday, proposals to impose curbs on speculators using credit default swaps to bet against troubled states like Greece were labelled by the City as misguided and unworkable. Greek Prime Minister George Papandreou is meeting with US President Barack Obama today, this is in order to gain support for his campaign, at the weekend he stated that Eurozone measures to tackle CDS (credit default swaps) speculators would be unearthed this week. In Detroit property prices have fallen extremely low. One in five properties lies empty; the city appears to be in terminal decline, its population dwindling by the day, hit by an exodus of unemployed and despondent citizens desperate for better prospects elsewhere. Some homes are even going for $100; others are on sale for $500.

Due for release today is the AUD Home Loans m/m.

by Greg Secker

International Report

The FTSEurofirst 300 rose 0.8% to close at 1,035.56 points. The Dow Jones industrial average dropped 0.09%, to close at 10,396.76. The Standard & Poor’s 500 Index boosted up 0.04%, to close at 1,118.79. The Nasdaq Composite Index dropped 0.11 points to close at 2,280.68. The Nikkei gained 31.30 points to close at 10,253.14, while the Topix gained 0.3% to close at 905.65.

Yesterday, after talks between Greek Prime Minister George Papandreou and the French president, the Eurozone is preparing a thorough crackdown on London-based market speculators that “abuse” credit default swaps. Papandreou stated that France, Germany and Eurogroup chairman Jean-Claude Juncker, would unveil new measures in the coming days. At the weekend China’s central bank chief discussed planning for an appreciation of the renminbi, he stated that the current dollar peg was temporary. This is the strongest hint yet from China that it would abandon the unofficial dollar peg, which it has held in place since 2008.

Due for release today is the CHF Retail Sales y/y and also the CAD Housing Starts.

by Greg Secker

The FTSEurofirst 300 rose 0.8% to 1,035.56 points. The Dow Jones industrial average dropped 0.09%, to close at 10,396.76. The Standard & Poor’s 500 Index fell 0.04 %, to close at 1,118.79. The Nasdaq Composite Index dropped 0.11 points to close at 2,280.68.The benchmark Nikkei 31.30 points to close at 10,253.14, while the Topix gained 0.3% to close at 905.65.

Yesterday, Greece was forced to accept a debilitating level of interest on its bond issue of a €5bn (£4.5bn) bond. 24 hours after Greece announced new its new austerity measures, Petros Christodoulou the national debt management boss stated that the gilt sale was “going very well, beyond expectations”. Also according to CMA DataVision, the cost of insuring against a default by Athens fell to 304.8 basis points. On Thursday, after reviewing Dubai’s $22bn debt restructuring, Moody’s downgraded government groups in oil-rich Abu Dhabi. An announcement from China has shown a sharp slowdown in the growth of its official defence budget.

Due for release today is the GBP PPI Input m/m, the USD Non-Farm Employment Change and the USD Unemployment Rate.