September, 2012
Temporary Relief in the Markets from Speculation of Chinese Intervention and Spain`s Budget
Shanghai Composite Index jumped almost 3 percent after it briefly went below the 3-year low at 2,000. Speculation that the Chinese government will announce measures to support the markets sparked a rally in the Chinese equities which also pushed the AUD/USD and other markets higher. Hong Kong equity markets gained over 1 percent and the [...]
Eurozone Problems Dragging Markets Lower
Euro/USD continues to move lower on concerns revolving the European debt crisis. The currency pair rallied from the low of 1.2050 to the high near 1.3200 in the past months from the belief that solutions were in place to deal with the Eurozone problems. The deadlock from the European political leaders in recent days is [...]
Outsourcing, China and the Presidential Campaign
President Obama and Governor Romney each claims they would do better standing up for American workers against unfair trade with China. However, when it comes to outsourcing both have sins to repent. Just about everyone who has had a choice between buying an American-made product or an import-a car, a dress or bottle of wine-must [...]
Little Movement in the Markets on Good U.S Data – Plosser Negative on QE3
U.S consumer confidence rose to 70.3 compared to 60.3 from the previous month, far exceeding any forecast. Home prices also increased more than projections. However, the positive data failed to move the markets.
Gold and Euro/USD Lower on Europe and China
Euro/USD continues to move lower as European politicians remain deadlocked on the Eurozone bailout plan and China’s economic slowdown. The Euro/USD rally from the low of 1.2040 in late July was stalled at 1.3168. At the time of this article, the pair is trading around support at 1.2900. Stronger support levels come in at 1.2790 [...]
Taxing the Credibility of Politicians
Nothing taxes the credibility of politicians like their promises and claims about taxes, and President Obama and Governor Romney top the list for testing the credulity of voters.
Markets Lower as Stimulus Effects Wear Off
Euro/USD is below 1.3000 again as the steroid effects from the all Central Banks’ stimuli are wearing off.
Small Reaction on BOJ Unexpected Stimulus
Bank of Japan surprised the markets by expanding its asset-purchase fund by 10 trillion yen last night. As more stimulus is coming into the system, the market’s reaction is becoming less responsive. Equities are holding on to recent gains but oil continues to decline and is down 3 percent at the time of this article.
Euro/USD Weaker-Overall Quiet Markets
Euro/USD continues to depreciate since reaching a high of 1.3169 after the Fed’s QE3. The currency pair is testing the 1.3040 support at the time of this article. Stronger support is at 1.3000 followed by 1.2930. Resistance levels are at 1.3080 and 1.3120.
Small Correction or We Already Reached the Peak
Markets gave back some of the gains from last week’s rally. Most noticeable is the AUD/USD which failed to break the 1.0620 resistance last Friday and it is looking to test the downside support at 1.0430 at the time of this article.
Top News
- BOJ keeps policy on hold; Kiuchi proposes looser price target timeframe May 22, 2013TOKYO (Reuters) - The Bank of Japan on Wednesday decided to keep monetary policy on hold, but one board member tried unsuccessfully to loosen the central bank's commitment to achieving its 2 percent inflation target within two years. In a unanimous vote, the BOJ maintained its pledge to increase base money, or cash and deposits at the central bank, at a […]
- Asia stocks rise as Fed official backs easy policy May 22, 2013BANGKOK (AP) — Asian stock markets were mostly higher Wednesday after investor confidence was boosted by a Federal Reserve official's comments that the U.S. central bank should stick with its super-easy monetary policy. […]
- Senate panel approves immigration bill May 22, 2013WASHINGTON (AP) — Far-reaching legislation that grants a chance at citizenship to millions of immigrants living illegally in the United States cleared the Senate Judiciary Committee on a solid bipartisan vote Tuesday night after supporters somberly sidestepped a controversy over the rights of gay spouses. […]
- Merck signs $5 billion share buyback agreement with Goldman Sachs May 22, 2013(Reuters) - Merck & Co Inc said it has entered into a $5 billion share repurchase agreement with Goldman Sachs Group Inc, as the drug giant looks to prop up shareholder value in face of stiff competition from makers of less-costly generics. Under the accelerated share repurchase agreement (ASR), Merck has agreed to repurchase about 99.5 million shares fr […]
- The Irish loophole behind Apple's low tax bill May 22, 2013By Tom Bergin LONDON (Reuters) - Apple's ability to shelter billions of dollars of income from tax has depended on an unusual loophole in the Irish tax code that helps the country compete with other countries for investment and jobs. A U.S. Senate investigation revealed Tuesday that Apple, maker of iPhones, iPads and Mac computers, channeled profits int […]