by Raymond Chatlani
On Monday, Asian stockmarkets rocketed higher, buoyed by hopes of progress in resolving Europe's debt crisis and positive export figures from Japan that point toward a recovery from a devastating tsunami earlier this year. Japan's Finance Ministry said Monday that exports rose 2.4 percent in September compared with a year earlier, marking the second consecutive month of growth. European and US markets rose after European leaders achieved some progress in talks to fix the region's finances and as strong earnings from Caterpillar boosted investor sentiment.
On Tuesday, Asian stockmarkets mostly rose following Wall Street's performance last night. European markets fell after the cancellation of a meeting of European finance ministers raised doubts that an upcoming summit will result in a clear plan to rein in Europe's debt crisis. US markets fell after data showed consumer confidence tumbled to its lowest level since March 2009.
On Wednesday, Asian markets rose modestly as markets waited for news of whether a concrete plan to tackle the eurozone's debt crisis will emerge at an EU summit later today. European markets closed modestly lower as investors waited for the outcome of the EU summit. US stockmarkets rallied as Eurozone leaders sealed a three-part deal, which they hoped would convince markets that they have an effective response to the growing economic crisis.
Officials in Brussels said an accord had been reached with banks on a 50% write-off of 100bn euro of Greek debt and that banks would seek 106 Billion Euro to recapitalise their balance sheets. It was also agreed on Wednesday to increase the 440bn euro bailout fund, perhaps to over 1trn euro. This would help protect larger economies such as Italy and Spain from the market turmoil that has already pushed three countries to need bailouts.
On Thursday, Asian stockmarkets rose following the EU rescue plan. European markets exploded higher on the Eurozone debt agreement. Wall Street rose on strong volume followed the EU debt resolution programme.
On Friday, Asian markets rose having one of their best weeks in nearly three years after a long-awaited plan to resolve the European debt crisis sparked a huge relief rally in riskier assets. European and US stockmarkets closed flat after a strong rally on a long-awaited euro zone rescue deal, but a weak sale of Italian bonds showed investor confidence in the agreement was shaky.
This morning, Asian stockmarkets fell as the dollar spiked to a three-month high against the yen following Japan's intervention, prompting investors to book profits after last week's rally.
Last week, global equities and commodities surged as investors cheered an EU rescue plan to resolve the Eurozone's debt crisis. This three part rescue plan consists of private banks agreeing to accept a write-off of 50% on Greek bonds, seek 106 Billion Euro to recapitalise their balance sheets and that the the European Financial and Stability Fund would be boosted to 1 Trillion Euro from 440 Billion Euro. A report Thursday showed that the U.S. economy expanded at a solid 2.5 annual rate in the July-September quarter. That helped ease concerns that another recession might be nearing.
This week, traders will be cautious ahead of the Group of 20 leaders' meeting later on Thursday that will focus largely on the European debt crisis. Also, the markets are waiting for further details on the EU rescue plan and its implementation.
Also, this week, investors will shift their focus to U.S. economic data, which might temper their exuberance. Three events this week will command attention: the U.S. jobs report for October, the Federal Reserve's policy meeting and Fed Chairman Ben Bernanke's quarterly news conference
Monday, October 31, 2011
Monday, October 24, 2011
Weekly Market Summary
by Raymond Chatlani
This morning, Asian markets rose amid hopes that a crucial week for the euro zone crisis will see policymakers finally come up with a plan to resolve the region's debt woes and recapitalize its banks. European stockmarkets and Wall Street stocks fell as Germany's finance minister Wolfgang Schaeuble said a forthcoming summit would not yield a definitive solution to Europe's debt crisis.
On Tuesday, Asian stockmarkets fell after Germany's finance minister cautioned against hopes for a quick fix to Europe's debt problem, and news that China's economic growth slowed a tad in the third quarter added to concerns. China’s statistics bureau said the economy grew at 9.1 percent in the third quarter, less than predicted. European markets fell on Moody's warning that it may review France's credit rating and as growth in China slowed. Wall Street rose on strong bank earnings.
On Wednesday, Asian stockmarkets rose but gains were capped after Moody's Investors Service cut Spain's sovereign ratings by two notches, adding to uncertainty over the euro zone's debt crisis and economic growth. European markets rose on optimism policymakers will take major steps at a summit this weekend to solve the festering debt crisis and offsetting the impact from a cut to Spain's sovereign credit rating. U.S. stocks fell and the euro edged lower after optimism faded that European leaders will make substantial progress on resolving the euro zone debt crisis at their summit meeting this weekend.
On Thursday, Asian and European stockmarkets slumped with investors growing wary about taking risks ahead of a key European leaders' summit on Sunday. US markets rose as jobless claims fell last week and after France and Germany said they would press ahead to solve the euro zone debt crisis, despite setbacks that meant the details might not be settled at a weekend European Union summit.
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On Friday, Asian markets closed mixed and the euro clung to overnight gains as markets largely stayed within range, and as investors awaited a weekend meeting of European leaders for signs of progress in resolving the region's debt crisis. European stockmarkets rose as members of Germany's Merkel's government repeatedly stressed Europe's two biggest economies were in agreement on the broad outlines of a deal. US indices rose after a round of solid corporate earnings reports as industrial giant General Electric Co. said that its third-quarter net income rose 18 percent.
This morning, Asian stockmarkets rocketed higher, buoyed by hopes of progress in resolving Europe's debt crisis and positive export figures from Japan that point toward a recovery from a devastating tsunami earlier this year. Japan's Finance Ministry said Monday that exports rose 2.4 percent in September compared with a year earlier, marking the second consecutive month of growth.
Last week, global equities and commodities rose in volatile conditions as investors bet that European leaders in crucial meetings over the next few days will move forward in resolving the euro zone's two-year-old debt crisis. European leaders are to meet Wednesday to hammer out a concrete resolution to the region's debt problems, including ways to fortify the euro 440 billion ($600 billion) bailout fund to help prevent larger economies that use the euro common currency, such as Italy, from being dragged into the crisis.
Weeks of intensive discussions by European leaders have so far failed to produce a decisive outcome. At the end of the day, the market is nervous, waiting to see anything substantial coming out of the summit. We are getting to a point that there have been so many false promises that they really need to deliver something big. We can expect this volatility to continue over the next two days until details emerge of the outcome from the summit next Wednesday.
This morning, Asian markets rose amid hopes that a crucial week for the euro zone crisis will see policymakers finally come up with a plan to resolve the region's debt woes and recapitalize its banks. European stockmarkets and Wall Street stocks fell as Germany's finance minister Wolfgang Schaeuble said a forthcoming summit would not yield a definitive solution to Europe's debt crisis.
On Tuesday, Asian stockmarkets fell after Germany's finance minister cautioned against hopes for a quick fix to Europe's debt problem, and news that China's economic growth slowed a tad in the third quarter added to concerns. China’s statistics bureau said the economy grew at 9.1 percent in the third quarter, less than predicted. European markets fell on Moody's warning that it may review France's credit rating and as growth in China slowed. Wall Street rose on strong bank earnings.
On Wednesday, Asian stockmarkets rose but gains were capped after Moody's Investors Service cut Spain's sovereign ratings by two notches, adding to uncertainty over the euro zone's debt crisis and economic growth. European markets rose on optimism policymakers will take major steps at a summit this weekend to solve the festering debt crisis and offsetting the impact from a cut to Spain's sovereign credit rating. U.S. stocks fell and the euro edged lower after optimism faded that European leaders will make substantial progress on resolving the euro zone debt crisis at their summit meeting this weekend.
On Thursday, Asian and European stockmarkets slumped with investors growing wary about taking risks ahead of a key European leaders' summit on Sunday. US markets rose as jobless claims fell last week and after France and Germany said they would press ahead to solve the euro zone debt crisis, despite setbacks that meant the details might not be settled at a weekend European Union summit.
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On Friday, Asian markets closed mixed and the euro clung to overnight gains as markets largely stayed within range, and as investors awaited a weekend meeting of European leaders for signs of progress in resolving the region's debt crisis. European stockmarkets rose as members of Germany's Merkel's government repeatedly stressed Europe's two biggest economies were in agreement on the broad outlines of a deal. US indices rose after a round of solid corporate earnings reports as industrial giant General Electric Co. said that its third-quarter net income rose 18 percent.
This morning, Asian stockmarkets rocketed higher, buoyed by hopes of progress in resolving Europe's debt crisis and positive export figures from Japan that point toward a recovery from a devastating tsunami earlier this year. Japan's Finance Ministry said Monday that exports rose 2.4 percent in September compared with a year earlier, marking the second consecutive month of growth.
Last week, global equities and commodities rose in volatile conditions as investors bet that European leaders in crucial meetings over the next few days will move forward in resolving the euro zone's two-year-old debt crisis. European leaders are to meet Wednesday to hammer out a concrete resolution to the region's debt problems, including ways to fortify the euro 440 billion ($600 billion) bailout fund to help prevent larger economies that use the euro common currency, such as Italy, from being dragged into the crisis.
Weeks of intensive discussions by European leaders have so far failed to produce a decisive outcome. At the end of the day, the market is nervous, waiting to see anything substantial coming out of the summit. We are getting to a point that there have been so many false promises that they really need to deliver something big. We can expect this volatility to continue over the next two days until details emerge of the outcome from the summit next Wednesday.
Monday, October 10, 2011
Weekly Market Summary
by Raymond Chatlani
On Monday, Global markets continued to fall on fears that a Greek default is imminent. Greece reported that the deficit for this year would be 8.5 percent which is above the expected target of 7.6 percent. it was explained that this was due to a 5.5 percent contraction in GDP.
On Tuesday, Asian stockmarkets continued their falls on growing doubts over Greece's ability to avoid default that fuelled fears of global financial turmoil and recession. European markets fell on increased worries about a major banking crisis in Europe and expectations that Greece would default soon. A late rally in U.S. stocks pulled Wall Street out of bear market territory on Tuesday, and the euro rose versus the dollar after Federal Reserve Chairman Ben Bernanke promised more economic stimulus if needed.
On Wednesday, Asian markets trimmed earlier gains as traders wait to see if Bernanke will definitely provide economic stimulus. U.S. and European stock markets traded higher amid reports monetary officials in Europe are working to shore up the weak European banking sector, in case Greece should actually default on its debt obligations in the near term.
On Thursday, Asian stockmarkets followed global stocks higher, buoyed by a recovery across a broad range of assets on optimism over Europe's efforts to aid the region's financial sector and U.S. data suggesting the economy could avoid recession. European and US markets rose as Europe moved closer to pumping aid to the region's troubled banks and U.S. jobless benefit claims rose less than expected last week. The European Central Bank (ECB) announced aggressive liquidity measures on Thursday, throwing a lifeline to lenders who have seen wholesale funding drying up as market confidence ebbed. The European Central Bank said it was ready to buy bonds to provide longer-term cheap money for European lenders in need of funding.
On Friday, Asian markets rose for a third day following the ECB's agressive moves to provide liquidity to financial institutions. European stockmarkets rose on good US jobs data. Wall street fell after a ratings downgrades of Spain and Italy buffeted markets.
This morning, Asian stockmarkets closed mostly higher except for China and Hong Kong as on Sunday, French President Sarkozy and German Chancellor Merkel agreed a package of measures to help stabilise the eurozone by the end of the month.
Last week global markets and commodities rose modestly supported by assurances from the Federal Reserve that more economic stimulus would be provided if needed, promises by EU officials that European banks would be recapitalized to help deal with a potential debt default by Greece and yesterday's agreement between France and Germany to allow additional measures to stabilise the Eurozone by the end of the month.
As in previous weeks, we are still only seeing rhetoric by global officials without concrete action being taken. While short term action by the ECB to provide liquidity will ease the anxiety of the market for now, this present volatility is expected to continue until additional monetary policy measures are actually implemented later on this month.
On Monday, Global markets continued to fall on fears that a Greek default is imminent. Greece reported that the deficit for this year would be 8.5 percent which is above the expected target of 7.6 percent. it was explained that this was due to a 5.5 percent contraction in GDP.
On Tuesday, Asian stockmarkets continued their falls on growing doubts over Greece's ability to avoid default that fuelled fears of global financial turmoil and recession. European markets fell on increased worries about a major banking crisis in Europe and expectations that Greece would default soon. A late rally in U.S. stocks pulled Wall Street out of bear market territory on Tuesday, and the euro rose versus the dollar after Federal Reserve Chairman Ben Bernanke promised more economic stimulus if needed.
On Wednesday, Asian markets trimmed earlier gains as traders wait to see if Bernanke will definitely provide economic stimulus. U.S. and European stock markets traded higher amid reports monetary officials in Europe are working to shore up the weak European banking sector, in case Greece should actually default on its debt obligations in the near term.
On Thursday, Asian stockmarkets followed global stocks higher, buoyed by a recovery across a broad range of assets on optimism over Europe's efforts to aid the region's financial sector and U.S. data suggesting the economy could avoid recession. European and US markets rose as Europe moved closer to pumping aid to the region's troubled banks and U.S. jobless benefit claims rose less than expected last week. The European Central Bank (ECB) announced aggressive liquidity measures on Thursday, throwing a lifeline to lenders who have seen wholesale funding drying up as market confidence ebbed. The European Central Bank said it was ready to buy bonds to provide longer-term cheap money for European lenders in need of funding.
On Friday, Asian markets rose for a third day following the ECB's agressive moves to provide liquidity to financial institutions. European stockmarkets rose on good US jobs data. Wall street fell after a ratings downgrades of Spain and Italy buffeted markets.
This morning, Asian stockmarkets closed mostly higher except for China and Hong Kong as on Sunday, French President Sarkozy and German Chancellor Merkel agreed a package of measures to help stabilise the eurozone by the end of the month.
Last week global markets and commodities rose modestly supported by assurances from the Federal Reserve that more economic stimulus would be provided if needed, promises by EU officials that European banks would be recapitalized to help deal with a potential debt default by Greece and yesterday's agreement between France and Germany to allow additional measures to stabilise the Eurozone by the end of the month.
As in previous weeks, we are still only seeing rhetoric by global officials without concrete action being taken. While short term action by the ECB to provide liquidity will ease the anxiety of the market for now, this present volatility is expected to continue until additional monetary policy measures are actually implemented later on this month.
Tuesday, October 4, 2011
Weekly Markey Summary
by Raymond Chatlani
On Monday, Asian markets tumbled on rumours that European leaders would accept some form of Greek default. European shares rose on reports that European leaders were mulling additional ways to stem contagion from the Greek debt crisis. Their plan envisages an increase in the size of the bailout fund to 2 trillion euros and is expected to involve a 50% write-down of Greek government debt. Banks with large exposures to Greek debt would be strengthened to ensure stability should Greece partially default. US stockmarkets rose on hopes that European officials would stabilise the Eurozone debt problem.
On Tuesday, Asian shares rebounded on bargain hunting on hopes that euro zone officials will act to corral Greece's debt woes and prevent another full-blown banking crisis. European stockmarkets expleded higher amid hope that plans are being crafted to help restore the region's fiscal and financial conditions. Wall Street ended 1.5 percent higher but gave up half its gains at the close after initially opening up 3 percent.
On Wednesday, Asian markets closed mixed, after a second day of rallies on Wall Street and in Europe, on cautious hope that eurozone leaders are plotting a solution to the region's debt crisis. But the gains, the second in a row, quickly faded due to the lack of concrete evidence of a plan, while traders looked ahead to a key vote Thursday in Germany, where MPs will decide on expanding a rescue fund for debt-mired European countries. European and US stockmarkets fell due to the high degree of uncertainty about the European situation and its effects on economic growth. There is a split between EU members over the terms of Greece’s second €109bn bail-out with members including Germany and the Netherlands calling for more losses to be imposed on the private sector, something France and the ECB oppose for fears of another rout of European banking stocks.
On Thursday, Asian shares and commodities fell on growing worries that Europe's intractable debt problems will plunge the world economy into a second global financial crisis. European stockmarkets rose following the passing through the German Bundestag of plans to expand the European Financial Stability Fund (EFSF). US markets rose as traders were relieved that Germany passed a measure to expand the powers of a regional bailout fund. That eased worries that U.S. banks could be buffeted by another bout of turmoil in Europe's financial system.
On Friday, Asian stockmarkets fell as China, the world's biggest metals consumer, saw its manufacturing sector contracting for a third consecutive month in September, suggesting the world's second-largest economy was not immune to global headwinds, while factory inflation quickened. European markets fell as retail sales in Germany, Europe's largest economy, came in below expectations, dropping 2.9% in July. The reading marked the biggest drop in more than four years and underscored a possible slowdown in the global economy. Wall Street fell heavily as investors fled to the safety of US treasuries.
On Monday, Global markets continued to fall on fears that a Greek default is imminent. Greece reported that the deficit for this year would be 8.5 percent which is above the expected target of 7.6 percent. it was explained that this was due to a 5.5 percent contraction in GDP.
This morning, Asian stockmarkets continued their falls on growing doubts over Greece's ability to avoid default that fuelled fears of global financial turmoil and recession.
Last week global stocks posted their worst quarter in nearly three years in July-September, due to persistent fears about the world economy and the lack of a convincing solution to Europe's debt problems. All commodities fell heavily except for gold which recovered later on last week and yesterday as investors sought safe havens on growing expectations of a Greek default that has increased fears of a global recession. A bid for safety also increased demand for US treasuries.
In a couple of weeks Greece will declare bankruptcy as funds will run out. Unless the EU, IMF and the ECB provide funds soon, we can expect world markets and commodities to continue their falls this week as investors are fed up with rhetoric and have completely lost their faith and trust in Governments.
On Monday, Asian markets tumbled on rumours that European leaders would accept some form of Greek default. European shares rose on reports that European leaders were mulling additional ways to stem contagion from the Greek debt crisis. Their plan envisages an increase in the size of the bailout fund to 2 trillion euros and is expected to involve a 50% write-down of Greek government debt. Banks with large exposures to Greek debt would be strengthened to ensure stability should Greece partially default. US stockmarkets rose on hopes that European officials would stabilise the Eurozone debt problem.
On Tuesday, Asian shares rebounded on bargain hunting on hopes that euro zone officials will act to corral Greece's debt woes and prevent another full-blown banking crisis. European stockmarkets expleded higher amid hope that plans are being crafted to help restore the region's fiscal and financial conditions. Wall Street ended 1.5 percent higher but gave up half its gains at the close after initially opening up 3 percent.
On Wednesday, Asian markets closed mixed, after a second day of rallies on Wall Street and in Europe, on cautious hope that eurozone leaders are plotting a solution to the region's debt crisis. But the gains, the second in a row, quickly faded due to the lack of concrete evidence of a plan, while traders looked ahead to a key vote Thursday in Germany, where MPs will decide on expanding a rescue fund for debt-mired European countries. European and US stockmarkets fell due to the high degree of uncertainty about the European situation and its effects on economic growth. There is a split between EU members over the terms of Greece’s second €109bn bail-out with members including Germany and the Netherlands calling for more losses to be imposed on the private sector, something France and the ECB oppose for fears of another rout of European banking stocks.
On Thursday, Asian shares and commodities fell on growing worries that Europe's intractable debt problems will plunge the world economy into a second global financial crisis. European stockmarkets rose following the passing through the German Bundestag of plans to expand the European Financial Stability Fund (EFSF). US markets rose as traders were relieved that Germany passed a measure to expand the powers of a regional bailout fund. That eased worries that U.S. banks could be buffeted by another bout of turmoil in Europe's financial system.
On Friday, Asian stockmarkets fell as China, the world's biggest metals consumer, saw its manufacturing sector contracting for a third consecutive month in September, suggesting the world's second-largest economy was not immune to global headwinds, while factory inflation quickened. European markets fell as retail sales in Germany, Europe's largest economy, came in below expectations, dropping 2.9% in July. The reading marked the biggest drop in more than four years and underscored a possible slowdown in the global economy. Wall Street fell heavily as investors fled to the safety of US treasuries.
On Monday, Global markets continued to fall on fears that a Greek default is imminent. Greece reported that the deficit for this year would be 8.5 percent which is above the expected target of 7.6 percent. it was explained that this was due to a 5.5 percent contraction in GDP.
This morning, Asian stockmarkets continued their falls on growing doubts over Greece's ability to avoid default that fuelled fears of global financial turmoil and recession.
Last week global stocks posted their worst quarter in nearly three years in July-September, due to persistent fears about the world economy and the lack of a convincing solution to Europe's debt problems. All commodities fell heavily except for gold which recovered later on last week and yesterday as investors sought safe havens on growing expectations of a Greek default that has increased fears of a global recession. A bid for safety also increased demand for US treasuries.
In a couple of weeks Greece will declare bankruptcy as funds will run out. Unless the EU, IMF and the ECB provide funds soon, we can expect world markets and commodities to continue their falls this week as investors are fed up with rhetoric and have completely lost their faith and trust in Governments.
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