Stocks Drop Worldwide as Oil, Dollar Surge After Egypt Protests

Stocks worldwide plunged the most since November, crude oil posted the biggest jump since 2009 and the dollar rose versus the euro after protesters posed the biggest challenge to Egyptian President Hosni Mubarak’s 30-year rule. Egypt’s dollar bonds sank, pushing yields to a record.

The MSCI World All-Country World Index of stocks in 45 countries lost 1.4 percent at 4:59 p.m. New York time. The Dow Jones Industrial Average fell 1.4 percent to 11,823.70, preventing its longest weekly winning streak since 1995. Oil futures increased 4.3 percent to $89.34. The dollar appreciated 0.9 percent to $1.3611. Yields on Egypt bonds due in 2020 surged 22 basis points to 6.51 percent. Gold futures jumped 1.7 percent, the most in 12 weeks.

Egyptian protesters clashed with police throughout the country and into the night, defying a curfew and setting fire to buildings. Mubarak imposed the curfew after tens of thousands of marchers chanted “liberty” and “change.” After U.S. markets closed, Mubarak said he asked the government to resign. The demonstrations offset data showing that growth in U.S. gross domestic product accelerated in the fourth quarter.

“The unrest in Egypt has people concerned,” said Mark Bronzo, who helps manage over $25 billion at Irvington, New York-based Security Global Investors. “When it comes to the Middle East, there’s worries the unrest is going to spread. It has negative implications for the world.”

Global Economic Calendar (28-Jan-2011)

Global Economic Calendar for 28th January 2011

**Time is with respect to Singapore Time (GMT+8:00)

Fed Closes Ranks as Improving Economy Won't Derail QE2

Federal Reserve officials closed ranks to signal that an improving economy won’t derail their plan to cut unemployment by pumping $600 billion into the financial system.

The pace of recovery is “insufficient to bring about a significant improvement in labor market conditions,” the Federal Open Market Committee said yesterday in a statement in Washington that won unanimous support for the first time in 13 months.

“They’re trying very hard in their statement to get people to stop jumping the gun” with an expectation that the record stimulus will end before the planned conclusion in June, said Ethan Harris, head of developed-markets economic research at Bank of America Merrill Lynch in New York. The Fed is saying, “we’re continuing our buying program and we’re not going to move for a long time,” he said. Harris put the odds of completing the purchases at 95 percent.

Chairman Ben S. Bernanke and his colleagues are strengthening their commitment to the asset purchases as two new members, Philadelphia Fed President Charles Plosser and Dallas Fed chief Richard Fisher, joined the policy-setting panel. Both men, who earlier criticized the program, supported the committee in saying the easing was needed to “promote a stronger pace of economic recovery.”

Plosser and Fisher were among four regional Fed presidents who rotated into voting slots for the year at this week’s meeting. They replaced officials including the Kansas City Fed’s Thomas Hoenig, who favored tighter policy as the lone dissenter in all eight decisions last year.

Stanley Ho Suit Adds Twist to Family Dispute Over Fortune

The three-day public wrangle over Stanley Ho’s casino empire took yet another twist as a lawsuit accused family members of illegally taking control of his assets, a day after the Macau billionaire said the dispute was settled.

Amid conflicting statements made by Ho and his family, his lawyer Gordon Oldham filed the writ late yesterday in Hong Kong’s High Court. While the 89-year-old Ho announced on television that he no longer needed Oldham’s services, the lawyer says he still represents the tycoon and the writ appears to carry Ho’s signature.

Claim and counter-claim over the transfer of Ho’s 31.7 percent stake in Sociedade de Turismo e Diversoes de Macau SA has driven down the shares of SJM Holdings Ltd. by 7.4 percent this week. SJM, built by Ho over 5 decades into Asia’s biggest gambling company, runs most casinos in the Chinese city of Macau, where gambling revenue is four times that of the Las Vegas Strip.

“This story continues to unfold in a dynamic way and it will continue to make the public shareholder base of SJM uncomfortable because of the possible strategic impacts of this volatility,” said independent industry consultant Jonathan Galaviz.

SJM shares rose 1.5 percent to HK$13.32 as of 11:14 am today after falling almost 5 percent yesterday.

Ho built his fortune after Macau’s colonial government in 1962 granted him and his partners a gambling monopoly. While that ended in 2004 with the entry of operators including Sheldon Adelson’s Las Vegas Sands Corp., Ho was ranked Hong Kong’s 13th- richest man, with a net worth of $3.1 billion, by Forbes magazine this month.

Sales of New Homes in U.S. Rose More Than Forecast

Purchases of new houses in the U.S. rose more than forecast in December, propelled by a record surge in the West as buyers in California may have rushed to qualify for a state tax credit before it expired.

Sales climbed 18 percent to a 329,000 annual pace, figures from the Commerce Department showed today in Washington. The percentage gain was the biggest since 1992, and was led by a record 72 percent jump in the West.

“The increase being driven by the West definitely looks suspicious,” said Daniel Silver, an economist at JPMorgan Chase & Co. in New York. “New-home sales are definitely lagging behind other economic indicators. As we see job growth and signs of economic stability, the housing market will improve, but when that will happen is hard to say.”

Following the industry’s worst year on record, builders may keep facing competition from a growing glut of foreclosed existing homes that is depressing prices. The lack of a sustained housing rebound and unemployment above 9 percent are among reasons Federal Reserve policy makers today are expected to press on with a second round of stimulus that will pump $600 billion into financial markets by June.

Stocks rose after the report. The Standard & Poor’s 500 Index climbed 0.4 percent to 1,296.42 at 10:17 a.m. in New York. The S&P Supercomposite Homebuilder Index jumped 2.6 percent.

The median estimate of 79 economists surveyed by Bloomberg News called for a rise to 300,000. Estimates ranged from 270,000 to 315,000. Last month’s sales pace was the highest since April. The Commerce Department revised November purchases down to 280,000 from a previously reported 290,000 rate.

Global Economic Calendar (27-Jan-2011)

Global Economic Calendar for 27th January 2011

**Time is with respect to Singapore Time (GMT+8:00)

Obama Embraces Business Agenda on Exports, Taxes, Debt

President Barack Obama embraced much of the business community’s agenda last night, calling for progress on stalled trade pacts, investments in roads and education, reworking the corporate tax code, and freezing discretionary spending to cut the deficit.

The pledges in the State of the Union address by Obama, who tussled with business groups during the first two years of his term, match requests by chief executive officers from Verizon Communications Inc., Honeywell International Inc. and JPMorgan Chase & Co. in a report they presented to the administration last month.

Obama “has put an olive branch out to business, and it seems like a sincere offer,” said Jim Kessler, vice president for policy at the Third Way, a Washington-based policy group that describes itself as moderate. “The president seems to be focused on growth and making business a partner, not a foil.”

With Republicans taking control of the House of Representatives and U.S. growth still sluggish, Obama said his proposals were aimed at creating jobs and reorienting the economy to confront challenges from abroad.

Instead of pushing contentious issues such as health-care legislation and overhauling financial regulation, as he did in the first two years of his term, Obama focused on investments for growth, which should garner support from corporate leaders, Kessler said.

Boeing Forecast Trails Estimates on Pension, Delays

Boeing Co. tumbled the most in five months after forecasting 2011 profit that trailed analysts’ estimates amid delays to its two marquee jets, higher pension expenses and scaled-back defense spending in the U.S.

Net income will be $3.80 to $4 a share, including an increase of 58 cents a share in pension expenses, the Chicago- based company said in a statement today. That lagged behind the $4.53-a-share average estimate of 26 analysts surveyed by Bloomberg. Projected sales of $68 billion to $71 billion met estimates of about $69.5 billion.

Boeing has struggled with two of its newest planes, the 787 Dreamliner, which is three years late, and the 747-8, running a year and a half behind schedule, while the defense business has been hurt by military budget cuts. Boeing is responding by boosting output of other commercial jets to record rates as air- travel demand recovers from the recession.

Global Economic Calendar (26-Jan-2011)

Global Economic Calendar for 26th January 2011

**Time is with respect to Singapore Time (GMT+8:00)

Google's Schmidt to Stay `as Long as It's Exciting'

Google Inc.’s Eric Schmidt said he has no plans to leave the owner of the world’s largest search engine, dismissing speculation he’s considering a career in the media or politics.

Schmidt said last week he will step down as chief executive officer in favor of Google co-founder Larry Page and become executive chairman. The executive is “committed to Google,” he told reporters at the Digital-Life-Design conference in Munich today. “How long are you committed to doing what you’re doing? As long as it’s exciting,” he said in response to a question about his plans.

Schmidt, 55, may be considering a career as a television host, the New York Post reported yesterday. Ken Auletta, author of “Googled: The End of the World as We Know It,” told Bloomberg TV that Schmidt may be weighing a role in the administration of U.S. President Barack Obama.

By turning to Page, Google may be looking to rekindle the entrepreneurial spirit that allowed it to grow into one of the world’s most valuable companies. The new CEO of the Mountain View, California-based company will confront challenges from Facebook Inc., Apple Inc., and startups such as Groupon Inc. in social networking, entertainment and retail.

Consumer Confidence in U.S. Rose More Than Forecast

Confidence among U.S. consumers rose more than forecast in January, reaching an eight-month high, as the outlook for jobs brightened.

The Conference Board’s sentiment index increased to 60.6 from 53.3 the prior month, figures from the New York-based private research group showed today. Another report showed home values dropped in November by the most in a year.

Growing optimism, an improving labor market and tax relief may combine to help spur consumer spending, which accounts for about 70 percent of the economy. At the same time, the absence of a sustained housing rebound and unemployment above 9 percent are among reasons the Federal Reserve may announce tomorrow it will stick to a plan for more stimulus.

Global Economic Calendar (25-Jan-2011)

Global Economic Calendar for 25th January 2011

**Time is with respect to Singapore Time (GMT+8:00)

Tiger Global Puts New Private-Equity Fund Into Facebook...

Chase Coleman’s Tiger Global LLC is raising $1.25 billion for its sixth private-equity fund and has used some of the money to increase its stake in Facebook Inc., according to two people briefed on the plan.

Tiger Global, based in New York, has $1 billion in commitments and plans to line up an additional $250 million by next month, said the people, who asked not to be identified because the information is private. Coleman, 35, has steered about $80 million from the new pool into Facebook, whose more than 600 million users make it the top social-networking site.

The firm raised more than $2.5 billion for its previous private-equity partnerships, buying stakes in companies including Facebook, LinkedIn Corp., a professional networking site, and Youku.com, China’s largest online-video provider, the people said. Its $1.1 billion fifth fund has returned an average of 15 percent a year since its start in 2008, according to a September investor document reviewed by Bloomberg News.

Suicide Bombing at Moscow Airport Kills at Least 31....

The 30-stock Micex Index closed down 1.5 percent after falling as much as 2.4 percent, its steepest intraday decline since July 30. The ruble was 0.4 percent stronger against the dollar at 29.8250 at the 5 p.m. close of trading. Russia’s dollar bonds due 2020 climbed, pushing the yield 5 basis points lower to 4.992 percent.

Central bank Chairman Sergey Ignatiev told reporters in Moscow that “nothing will happen to the ruble or the banking system” as a result of the attack.

Domodedovo moved a record 22.3 million passengers last year, making it the busiest air hub in eastern Europe. It services 75 airlines and handles more than 600 flights a day. Deutsche Lufthansa AG was among airlines that cancelled flights in and out of Domodedovo indefinitely.

The airport’s security was breached in 2004, when terrorists bribed their way through security checks to board two passenger planes, which they subsequently brought down, killing all 90 people on board. The attacks were claimed by Islamist militants.

Metals Traders Worth $3 Million Amid Shortages as Wall Street Pay Shrinks...

After a year when U.S. President Barack Obama signed a law curbing risk-taking on Wall Street and pay at banks fell, metals traders are reaping bonus bonanzas.

The traders probably earned as much as 20 percent more last year than in 2009, with the most-profitable getting $2 million to $3 million, said Peter Henry, head of front-office search at Commodity Search Partners Ltd. The figure, confirmed by three other recruiters who declined to be identified because they aren’t authorized to speak publicly, compares with no change to a drop of 10 percent in pay across commodities personnel.

“Metals traders are an exception when there’s pressure on banks to cut remuneration,” New York-based Henry said. They “are making more money than other parts of the banks and the bonuses reflect that to some extent,” he said.

Metals traders are setting up for another banner year, with Barclays Capital predicting shortages and higher prices in copper, nickel and tin. Average pay across JPMorgan Chase & Co.’s investment bank and Goldman Sachs Group Inc. fell last year and Morgan Stanley cut its investment bank’s compensation pool, filings showed last week. The Dodd-Frank Act signed in July seeks to stop compensation that spurs too much risk-taking.

Brisbane Roads Circling Globe Twice Needed in Flood Disaster...

To build an average house, you need 6,200 bricks, 2,950 roof tiles, 785 floor tiles and 15 cans of paint -- multiply that 28,000 times and you get a picture of the task to rebuild Brisbane after Australia’s worst flood.

It gets worse: the state of Queensland will need to rebuild 90,000 kilometers (56,000 miles) of roads, enough to circle the globe twice, thousands of kilometers of rail line, almost 100 schools, an unknown number of bridges, several regional airports, power lines, sewers and water treatment -- the list goes on.

Australian companies, including its largest building- materials seller Boral Ltd., the No. 1 furniture and electrical retailer Harvey Norman Holdings Ltd., paint maker DuluxGroup Ltd. and plumbing supplier Reece Australia Ltd., will benefit from the reconstruction estimated to cost A$20 billion ($20 billion). The floods are the most expensive natural disaster in the nation’s history and have claimed at least 20 lives.

Global Economic Calendar (21-Jan-2011)

Global Economic Calendar for 21st January 2011

**Time is with respect to Singapore Time (GMT+8:00)

Initial Jobless Claims in U.S. Fell to 404,000 Last Week

The number of Americans filing first-time claims for unemployment insurance payments fell more than forecast last week, adding to evidence the labor market is healing.

Applications for jobless benefits decreased 37,000 in the week ended Jan. 15, the biggest decline since February 2010, to 404,000, Labor Department figures showed today. Economists forecast 420,000 claims, according to the median estimate in a Bloomberg News survey. The number of people on unemployment benefit rolls fell, while those getting extended payments rose.

Employers may be retaining workers after the economy showed signs of strengthening at the end of last year. Economic growth may need to accelerate further and encourage companies to ramp up the hiring necessary to reduce an unemployment rate that’s hovering close to a 26-year high.

Global Economic Calendar (20-Jan-2011)

Global Economic Calendar for 20th January 2011

**Time is with respect to Singapore Time (GMT+8:00)

Citigroup Profit Misses Analysts' Estimates on Credit Spreads...

Citigroup Inc., the third-largest U.S. bank, said earnings were $1.31 billion, less than analysts estimated, as narrowing credit spreads reduced pretax profit by $1.1 billion.

Fourth-quarter net income was 4 cents a share, compared with a $7.58 billion loss, or 33 cents, in the same period in 2009, New York-based Citigroup said today in a statement. Eight analysts had predicted in a Bloomberg survey that Citigroup would report a per-share profit of 7 cents.

The $10.6 billion in 2010 earnings mark the first profitable year under Chief Executive Officer Vikram Pandit, 54. Pandit took over in December 2007 and led Citigroup to losses of $29.3 billion during the next two years. The U.S. Treasury, which gave the bank a taxpayer-funded $45 billion bailout in 2008, also sold the last of its stake in the fourth quarter. Citigroup stock rose 43 percent during the year.

Orphanides Says Fund Could Buy Bonds Instead of ECB

The ECB is pressing governments to take more responsibility for Europe’s sovereign debt crisis so that it can withdraw non- standard measures and return to its traditional role of inflation fighting. Euro-area finance ministers meeting in Brussels today have signaled they’re considering expanding their response to the crisis, which may include mandating the 440 billion-euro ($585 billion) EFSF to purchase debt.

German two-year government notes advanced for the first time in five days, pushing the yield down five basis points to 1.11 percent at 10:52 a.m. in London. The euro initially dropped before recovering to be little changed at $1.3287.

Orphanides’ comments “show that frustration at the ECB over government handling of the crisis and constantly having to act as the first line of defense is coming close to boiling point,” said Carsten Brzeski, an economist at ING Group NV in Brussels.

Cheapest Stocks Get Cheaper After 10% Global Rally

Even after global stocks rallied 10 percent last year, valuations around the world fell the most in a decade, leaving companies in Norway, Italy and Mexico the cheapest of all.

The average price-earnings ratio of global equities dropped as profits in the 45-nation MSCI All-Country World Index rose faster than the gauge, which has rallied to the highest level since August 2008, data compiled by Bloomberg show. Investors are finding bargains outside the U.S., where the biggest two- year rally since the Internet boom has sent the Standard & Poor’s 500 Index’s income multiple to almost a seven-month high.

Of the 45 nations in the all-country index, only Egypt and Ireland will see earnings fall this year, according to analyst estimates compiled by Bloomberg. That’s the fewest since 2004. The gauge rose 0.2 percent to a two-year high on Jan. 14, completing its seventh straight weekly advance, after European officials stepped up efforts to solve the debt crisis and Japan pledged to buy bonds to aid Ireland and Greece. The measure slipped 0.2 percent at 10:30 a.m. in London today.

Announcement - Merry Christmas and a Happy New Year!

Hi everyone,

Wishing everyone a Merry Christmas and a Happy New Year in advance! I am going for a holiday and ForexNewsPaper will stop posting for the festive season till 2011 :)

I am closing my books for the year 2010. 2010 has been one hell of a trading year, looking forward for more in 2011 =^_^= Hope everyone had it good as well.

For those who are still keeping their books open, trade safely.

Finally, remember. When you party, please do not drink and drive. Up keep your social responsibility =]

Global Economic Calendar (17-Dec-2010)

Global Economic Calendar for 17th December 2010

**Time is with respect to Singapore Time (GMT+8:00)

Fed Signals Stronger Economy Won't Slow $600 Billion Stimulus

Federal Reserve policy makers indicated that signs of economic strength won’t deter them from pumping money into the financial system so long as unemployment remains elevated.

The Federal Open Market Committee said yesterday after its final meeting of 2010 that growth is “insufficient to bring down unemployment” and inflation has “continued to trend lower.” U.S. central bankers affirmed a plan to buy $600 billion of bonds through June and renewed their pledge for an “extended period” of low interest rates.

Stocks climbed and Treasuries fell as continued Fed stimulus and better-than-forecast retail sales boosted the outlook for growth in the coming year. Policy makers led by Chairman Ben S. Bernanke are defying Republican criticism that their policy will fuel inflation and asset price bubbles to focus on cutting an unemployment rate that has stayed above 9.4 percent since May 2009.

Global Economic Calendar (16-Dec-2010)

Global Economic Calendar for 16th December 2010.

**Time is with respect to Singapore Time (GMT+8:00)

***Note - US Unemployment claim at 9:30pm.

Global Economic Calendar (15-Dec-2010)

Global Economic Calendar for 15th December 2010

**Time is with respect to Singapore Time (GMT+8:00)

US consumer recovery...

Sales at U.S. retailers rose more than forecast in November as holiday shopping got under way, a sign consumers will play a bigger role in the recovery.

Purchases increased 0.8 percent, following a 1.7 percent gain in October that was larger than previously estimated, Commerce Department figures showed today in Washington. The median forecast of economists surveyed by Bloomberg News called for a 0.6 percent rise. Excluding autos, gasoline and building materials, which are the figures used to calculate gross domestic product, sales climbed 0.9 percent, the most since August.

Customers snapped up discounts at chains like Target Corp. and Macy’s Inc. during the Thanksgiving weekend, the traditional kick-off to the busiest sales season of the year. Even as the world’s largest economy gains momentum heading into 2011, high unemployment and the risk of a prolonged drop in prices remain concerns for Federal Reserve policy makers meeting today.

The holiday-shopping “season got off to a really solid start,” said Chris Low, chief economist at FTN Financial in New York, who correctly forecast the increase in sales. “There’s no question this will be the strongest quarter for consumer spending since before the recession. The economy has pretty good momentum going into the new year.”

India's inflation figure.

Finance Minister Pranab Mukherjee said on Tuesday that India's headline inflation is expected to ease to 6 percent by March.

India's (WPI) wholesale price index rose to an annual 7.48 percent in November, as showed by government data.

The figure compared with the median forecast for a 7.48-percent rise in a Reuters poll and was lower than the annual rise of 8.58 percent in October.

The Indian central bank, the Reserve Bank of India, is widely expected to hold rates at its policy review scheduled to be held on Thursday.

Global Economic Calendar (14-Dec-2010)

Global Economic Calendar for 14th December 2010

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (13-Dec-2010)

Global Economic Calendar for 13th December 2010

*Time is with respect to Singapore Time (+GMT8:00)

Well done Australia?

Australian employers last month added more than double the number of workers economists had forecast, driving up the local dollar against all other Group of 10 currencies and propelling the nation’s stocks higher.

The number of people employed gained 54,600 from October, the statistics bureau said in Sydney today. That compares with the median forecast for a 20,000 increase in a Bloomberg News survey of 26 economists. The jobless rate fell to 5.2 percent from 5.4 percent a month earlier.

A stronger labor market may help bolster consumer spending after the Australian economy expanded in the third quarter at the slowest pace in almost two years. Central bank Governor Glenn Stevens this week left interest rates unchanged at 4.75 percent, citing few signs of near-term inflation pressure.

“The labor market is the driving force in the economy,” John Honan, chief economist at Ausbil Dexia Ltd. in Sydney, said before the report.

The number of full-time jobs advanced 55,100 in November and part-time employment was little changed, falling by 400, today’s report showed. Australia’s participation rate, which measures the labor force as a percentage of the population over 15 years old, increased to 66.1 percent in November from 65.9 percent a month earlier, it showed.

Yo Obama! Reducing pressure by tax cuts?

President Barack Obama’s agreement to prolong Bush-era income-tax cuts may reduce pressure on the Federal Reserve to extend its $600 billion bond-purchase program while spurring U.S. economic growth.

Obama’s deal with congressional Republicans may raise gross domestic product next year by as much as half a percentage point to about 3.1 percent, said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. Tom Porcelli, a senior economist at RBC Capital Markets Corp. in New York, is raising his growth forecast for 2011 by one point, also to 3.1 percent.

The agreement goes beyond what economists were expecting by including a 2 percent cut in payroll taxes, which fund Social Security and Medicare. The proposal also sets the estate tax at a top rate of 35 percent, extends aid for the long-term unemployed by 13 months and would allow companies next year to deduct the full cost of investments in equipment.

“I think it does reduce the odds that the Fed does more purchases,” Feroli said. “You’re going to have a pretty nice increase in disposable income and that should lift consumer spending.”

Global Economic Calendar (09-Dec-2010)

Global Economic Calendar for 9th December 2010

**Time is with respect to Singapore Time (GMT+8:00)

*Note: 9:30pm (US Data: Unemployment Claims)

Global Economic Calendar (07-Dec-2010)

Global Economic Calendar for 7th December 2010

**Time is with respect to Singapore Time (GMT+8:00)

What's up Uncle Ben?

Federal Reserve Chairman Ben S. Bernanke said the economy is barely expanding at a sustainable pace and that it’s possible the Fed may expand bond purchases beyond the $600 billion announced last month to spur growth.

“We’re not very far from the level where the economy is not self-sustaining,” Bernanke said in an interview broadcast yesterday by CBS Corp.’s “60 Minutes” program. “It’s very close to the border. It takes about 2.5 percent growth just to keep unemployment stable and that’s about what we’re getting.”

Bernanke, in a rare appearance on a nationally broadcast news program, defended the Fed’s efforts to prop up a recovery so weak that only 39,000 jobs were created in November. The unemployment rate last month rose to 9.8 percent, the highest level since April, the Labor Department said on Dec. 3, three days after the Bernanke interview was taped. Republican lawmakers have said the Fed’s policy of “quantitative easing” may do little to help unemployment and may fuel inflation.

Global Economic Calendar (06-Dec-2010)

Global Economic Calendar for 6th December 2010.

*Time is with respect to Singapore Time (GMT+8:00)

Trade Done (29/Nov/2010 - 3/Dec/2010)

Sharing my trades done for last week (29/Nov/2010 till 3/Dec/2010)

To be honest. This week's trade was quite stressful for me due to a blunder I did last week. Had to cover last week's losses which amounts to -47pips. The losses I made the week before was a stupid error and it is really an unacceptable error for a trader. I forgot to put my stop loss which wiped out pips gained :( Grrrr....

29/Nov/2010 - 3/Dec-2010 has been a good week, 161.3pips :) Let's see how 6/Dec/2010 - 10/Dec/2010 turns out to be like :)

My trades for the recent week as per below. Time is with respect to US Eastern Time (GMT-5:00)

Canadian Bank fall...

Canadian bank stocks fell after Royal Bank said it earned 84 cents a share in the fourth quarter, excluding certain items, trailing the average analyst estimate by 17 percent.

Royal Bank dropped 5 percent, the most intraday in six months, to C$52.95. Bank of Montreal, the country’s fourth- largest lender by assets, declined 1.1 percent to C$60.17. Bank of Nova Scotia, the No. 3 bank, advanced 1.4 percent to C$54.73 after reporting earnings that topped the average analyst forecast by 2.5 percent.

Canadian Oil Sands slumped 7.4 percent to C$26.31 after saying it expects to declare a quarterly dividend of 20 cents a share next month. The company’s last three shareholder payouts have been 50 cents a unit, and Bloomberg analysts had forecast a dividend of 35 cents a share for next quarter. Analysts at Bank of Montreal and UBS AG cut their rating on Canadian Oil Sands units.

Western Coal Corp., which mines in Canada and the U.S., jumped 11 percent to a record C$11.42 after agreeing to an C$11.50-a-share takeover offer from Walter Energy Inc. Teck Resources Inc., Canada’s largest coal and base-metals producer, climbed for a fifth day, rallying 1.4 percent to C$54.80.

Does US Payroll increase act as an indicator for economy in 2011???

An increase in November payrolls probably pushed U.S. job gains past the 1 million mark for the year as the world’s largest economy strengthened heading into 2011, economists said before a report today.

Employment increased by 150,000 last month, according to the median forecast of 87 economists surveyed by Bloomberg News, bringing the rise so far this year to 1.02 million. The advances haven’t been large enough to bring down unemployment, which held at 9.6 percent, according to the survey median.

Another report may show service industries, which account for almost 90 percent of the economy, grew last month at the fastest pace since May as more jobs and rising wages boosted holiday sales at retailers like J.C. Penney Co. and Gap Inc. At the same time, the Federal Reserve is concerned joblessness will be slow to retreat, explaining why policy makers announced a new round of monetary stimulus.

conomists’ projections for the jobless rate, which has been at 9.6 percent since August, varied from 9.4 percent to 9.7 percent. November would be the 16th month of joblessness at 9.5 percent or higher, the longest such stretch since records began in 1948.

Job losses in 2008 and 2009 totaled 8.4 million, pushing unemployment up from 5 percent in December 2007, as the worst recession since the 1930s took its toll.

Fed policy makers last month began buying Treasury securities as part of a plan to pump as much as $600 billion more into the financial system in a bid to keep interest rates low and spur growth. Chairman Ben S. Bernanke has been among those saying the recovery has been too slow, keeping unemployment too high and leading to a deceleration in inflation that raises the risk of deflation, or sustained and damaging price decreases.

Global Economic Calendar (03-Dec-2010)

Global Economic Calendar for 3rd December 2010.

**Time is with respect to Singapore Time (GMT+08:00)

Take Note of:

1) 9:30pm > USD Non-Farm Payroll

US - Where are the jobs???

Indicator that the labour market will take time to improve after applications to begin receiving unemployment benefits in the U.S. increases more than forecast last week.

Unemployment claims increased to 436,000, a jump by 26,000 in the week ended Nov. 27, Labour Department figures showed today in Washington. The less-volatile four week moving average fell to the lowest level since August 2008. The total number of people receiving unemployment insurance has increased and those on extended payments also jumped.

After slowing the pace in November, companies may be on the cusp of ramping up the hiring necessary to further uplift consumer spending, which accounts for 70 percent of the economy. A Labour Department report tomorrow may show employers added 145,000 workers last month and the unemployment rate held at 9.6 percent.

Global Economic Calendar (02-Dec-2010)

Global Economic Calendar for 2nd December 2010

**Time is with respect to Singapore Time (GMT+08:00)

- Take note of USD's data > Unemployment Claims at 9:30pm.

What do you have for us, Joaquin Almunia?

Around 1.1 Trillion Euros of state loans or guarantees last year has been used by banks in the 27 nation in Europe which was stated by the commission today. The Europe’s antitrust agency that checks whether subsidies distort competition in the region has granted approval for the measures as part of its response to the biggest financial crisis since the Great Depression.

European policymakers are giving their best to wean banks off government assistance to avoid harming competition. Joaquin Almunia, European Union’s competition commissioner extended the crisis rules into 2011 and informing reporters that he hoped to end them in a year’s time or “when normal conditions come back.” He also said that he could see new state aid guidelines for the financial industry starting on 1st January 2012.

Trades Done (30-Nov-2010)

Like before, once in awhile I will be sharing some of my trades done here in ForexNewsPaper blog.

Following are my trades done for 30th November 2010. The time are with respect to Eastern US time. Which is currently 13hours lagging from Singapore Time.

Total pips reaped yesterday was 79pips.

Global Economic Calendar (01-Dec-2010)

Global Economic Calendar for 01st December 2010

**Time is respect to Singapore Time (GMT+8:00)

What is going on today?

The Euro fell below $1.30 against the Greenbacks for the first time in more than 10 weeks as investors shunned riskier assets amid speculation Europe’s debt crisis will broaden and as unemployment in the region touched a 12-year high.

The JPY reached its strongest level since 15th September versus the Euro amid speculation China will put in more effort to cool its economy. The CHF and Greenbacks also rose versus major peers as Portuguese, Italian and Spanish government bonds slumped, encouraging demand for a refuge, and data showed U.S. home-price increases rose less than forecast in September.

Global Economic Calendar (30-Nov-2010)

Global Economic Calendar for 30th November 2010

*Time is with respect to Singapore Time (GMT+8:00)

Can Euro hold it???

The declination of Euro reached 1 percent against the Greenbacks and 0.8 percent per JPY. CHF rose 1 percent against the Euro and it advanced against 14 of its 16 main counterparts.

The Italian 10-year debt yield advanced 15 basis points to 4.58 percent as the government auctioned 6.8 billion euros of bonds due in 2013, 2017 and 2021. Credit-default swaps on Spain climbed 24 basis points to 247 while contracts on Portugal increased 36.5 basis points to 538.5, according to CMA, a data provider. The Markit iTraxx SovX Western Europe Index of swaps on 15 governments increased six basis points to a record 194.

Irish bonds fell, erasing earlier gains, sending the extra yield investors demand to hold 10-year Irish bonds instead of benchmark German bunds six basis points higher, widening for the seventh day. The cost of default swaps on Irish government debt rose four basis points to 602, while contracts on Greece dropped 21 basis points to 951, according to CMA.

Global Economic Calendar (29-Nov-2010)

Global Economic Calendar for 29th November 2010
**Time is with respect to Singapore Time (GMT+8:00)

What is happening to the Loonie???

The Loonie (CAD) weakened the most in more than a month against the Greenbacks as heightened concern about Europe’s debt woes and conflict between North and South Korea increased demand for assets considered havens.

Loonie was among four of the 16 most-traded currencies that performed the worst against Greenbacks on 27th November 2010. Loonie and its commodity-linked peers in Australia and New Zealand also dropped as resource prices declined on speculation that the Chinese will increase borrowing costs further.

From the attached chart of USD/CAD (Weekly) as of 27th Nov 2010 at 4:40am(Singapore Time). After the resistance at the Triple Top, there was a strong downside movements but it appears to be slowing down with current support around 0.9950 area. If we are looking on the upside movements of if there is any, we can look at Fibo 23.6% for 1st resistance followed by Fibo 38.2%. Any higher than this, we would need more confirmation and market commitment because frankly, I still do not trust the Greenbacks just yet.

Revival of ForexNewsPaper.blogspot.com

It has come to a decision that the revival of ForexNewsPaper.blogspot.com will be effective as of 27th November 2010.

The author have decided to revive this blog with emails demands from readers of ForexNewsPaper.blogspot.com

Regards,
ForexNewsPaper.blogspot.com

Thank you Ricky for your feedback...

Anonymous Ricky @ forex trading said...

I think you should post something about forex in this blog. You were posting the good information that we all need. Post it monthly or when you have time.
- 7:39 PM



Blogger Ash Ariffin said...

Hi Ricky! Thank you for your comments and interest on my postings. It is not that I have stopped posting, only that it has shifted to Facebook :)

I thank you for your feedback and will think about it on whether to revive posting on this blog.
- 9:07 AM

100% shifted to FaceBook...

Hello people,

I apologise for "Missing In Action" for the longest time. The truth is, I did not go "MIA", I have shifted to Facebook which is easier for me to share.

Feel free to add me in Facebook > Search for "Ash Ariffin" and request to add. Do not forget to write message "From ForexNewsPaper".

Warmest Regards,
Ash Ariffin

P.S: This blog will be kept active for memory sake :)

Quickie USD/JPY (23-Nov-2009)

I have posted my latest view on USD/JPY on my Facebook > Click Here!