Greg Secker – Global Market Update

International Report

The Dow Jones industrial average dropped 0.51% to close at 10,321.03. The Standard & Poor’s 500 Index dropped 0.21% to close at 1,102.94. The Nasdaq Composite Index dropped 0.08%, to close at 2,234.22. The benchmark Nikkei climbed 24.07 points to 10,126.03. The Topix gained 0.3% to close at 894.10.

Yesterday, Greece pushed back a crucial bond issue because of a possible downgrade of its sovereign credit rating- by Moody’s joining Standard & Poor’s in threatening to cut Greece’s credit rating within a month. This increased fears that the global economy could slip back into recession. The bond issue is planned to be released next week. According to official figures, in February Germany’s unemployment figures have risen by less than expected. The Federal Labour Office figures showed that the number of jobless rose by 7,000 from the previous month, taking the unemployment total to 3.43m.

Due for release today is the GBP Nationwide HPI m/m, GBP Revised GDP q/q, CHF KOF Economic Barometer, USD Prelim GDP q/q and the USD Existing Home Sales.

by Greg Secker

International Report

The FTSEurofirst 300 rose 0.2 percent closing at 1,013.66 points. The Dow Jones industrial average rose 0.89%, to 10,374.16. The Standard & Poor’s 500 Index climbed 0.9%, to 1,105.24. The Nasdaq Composite Index jumped 1.01%, to 2,235.90. The Nikkei dropped 96.87 points to 10,101.96, while the Topix shed 0.5% to close at 891.41.

Yesterday, Ben Bernanke stated that he believes US interest rates would remain low for an “extended period”, quashing fears that the US central bank was moving towards tightening monetary policy.  Yesterday, the head of the World Trade Organisation (WTO) revealed that Global trade dropped by 12% in 2009. This latest estimate from the WTO is sharp drop from the 10 per cent it previously expected. It was also stated that this was a huge drop and the sharpest decline since the end of World War Two.

Due for release today is the GBP BOE Gov King Speaks, GBP CBI Realized Sales, USD Core Durable Goods Orders m/m, USD Unemployment Claims, USD Fed Chairman Bernanke Testifies and NZD Building Consents m/m.

 by Greg Secker

International Report

The Dow Jones industrial average dropped 0.97%, to 10,282.41. The Standard & Poor’s 500 Index fell 1.2% to close at 1,094.60. The Nasdaq Composite Index fell down 1.28%, to 2,213.44.The Nikkei fell 153.27 points to 10,198.83 having fell 2% earlier in the session. The Topix fell 1.3% to 895.69.

Yesterday, fears of a double-dip global recession were amplified as a series of bad economic news highlighted how fragile the world economy is.  Due to concerns over business conditions and unemployment US consumers were their least confident in 10 months. Also in December house prices in 20 US cities also fell and in February the German the Ifo business confidence index fell further. According to New York’s tax department, in 2009 US banks paid out in total $20.3bn (£13.1bn) in bonuses for 2009. There is speculation that Greece could issue a 10-year bond within the next few days. This is the second bond issue for Greece this year and will test the credibility of the country.

Due for release today is the USD Fed Chairman Bernanke Testifies and the USD New Home Sales.

by Greg Secker

International Report

The FTSEurofirst 300 closed 0.3% lower at 1,023.15 points. The Dow Jones industrial average fell 0.18%, to end at 10,383.38. The Standard & Poor’s 500 Index dropped 0.10%, to 1,108.01. The Nasdaq Composite Index dropped 0.08%, to close at 2,242.03. The benchmark Nikkei dropped 48.37 points to 10,352.10. The Topix lost 0.3% to 907.37.

Analysts have stated their concern that a disagreement between the central bank Governor Masaaki Shirakawa and Japanese Finance Minister Naoto Kan over how to reduce the risk of  deflation may disrupt the  nation’s economic recovery. The global economic recovery and a falling euro could improve the outlook for exports, this may cause the German business confidence in February to rise to a 19-month high. According to a Bloomberg News survey, the Ifo institute will say that in January its business climate index, rose from 95.8 to 96.1.

Due for release today is the NZD Inflation Expectations q/q, EUR German Ifo Business Climate, GBP Inflation Report Hearings and USD CB Consumer Confidence.

By Greg Secker

International Report

On Thursday the FTSEurofirst 300 rose for the fourth consecutive day, closing up 0.7% at 1,021.66 points. The Dow Jones industrial average climbed 0.81%, to 10,392.90. The Standard & Poor’s 500 Index gained 0.66%, to close at 1,106.75. The Nasdaq Composite Index added 0.6%, to 2,241.71. The benchmark Nikkei lost 212.11 points to close at 10,123.58. The Topix fell 1.7% to 889.08.

Last night, the US Federal Reserve hiked the rate it charges banks for emergency loans, showing a major move towards normal monetary policy. America’s central bank lifted the discount rate from 0.5% to 0.75%. After the Fed announcement Gold fell by 1% but has steadied since to close above $1105/oz. Before a government report today, economists stated that in January the cost of living in the U.S. probably increased, pushed up by higher energy prices.

Due for release today is the GBP Retail Sales m/m, CAD Core Retail Sales m/m and USD Core CPI m/m.

by Greg Secker

The FTSEurofirst 300 index closed up 1.3% at 1,015.10 points. The Dow Jones industrial average gained 0.39% to close at 10,309.24. The Standard & Poor’s 500 Index gained 0.42%, to close at 1,099.51. The Nasdaq Composite Index added 0.55%, to close at 2,226.29. The Nikkei jumped 28.86 points to 10,335.69. Yesterday, Spain drew a large demand for government bond issues. Analysts have discussed the possibility of a successful Spanish sale providing an opportunity for the Greek government to launch a 10-year bond. The Federal Reserve has upgraded its prediction this year’s growth from 3 to 3.2%, which shows the Fed is slightly more bullish about the state of the US economy. Yesterday, the minutes of the January policy meeting also displayed that unemployment was expected to drop in the last quarter of 2010. Yesterday, spot gold hit a one-month peak at $1,126.85 an ounce. This was its highest level since 20 January. Due for release today is the JPY BOJ Press Conference, CAD Core CPI m/m, USD PPI m/m, USD Unemployment Claims, USD Philly Fed Manufacturing Index and AUD RBA Gov Stevens Speaks.

By Greg Secker

The Dow Jones industrial average climbed up 1.68%, to 10,268.81. The Standard & Poor’s 500 Index gained 1.80%, to 1,094.87. The Nasdaq Composite Index gained 1.40%, to 2,214.19. The Nikkei climbed 272.58 points to 10,306.83. The Topix rose 2.2% to 904.63.

Yesterday, European ministers told Greece that it may need to reconsider how it will bring its debt under control. In preparation to clear their books of troubled mortgages, US banks are considering doing this through “short sales.” Short sales at Bank of America, Wells Fargo, JPMorgan Chase and Citigroup are expected to rise this year, house prices in some parts of the US still continue to fall.

Due for release today is the GBP Claimant Count Change, GBP MPC Meetings Minutes, USD Building Permits and USD FOMC Meeting Minutes.

By Greg Secker