Commodities Forex News & Analysis

Shanghai Index

Oil Moving Higher-Caution in Equities

Oil (WTI) continues to move higher and it is near $108 at the time of this article. As stated in previous articles, high oil prices will halt any further economic recovery and thus, hurt the equities markets. Even though energy cost is not part of the “core inflation” measurement, it is a big factor in [...]

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Equities Gain on Strong Manufacturing Data

Global equities rallied today on strong global manufacturing growth data. European equities gained an average of 2 percent while the Dow Jones Industrial Average is set to test the 12,800 level. Manufacturing numbers in the U.K. rose to an eight month high and in the U.S. it is growing at the fastest pace since June [...]

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China, Taiwan and Hong Kong Equities

Taiwan stocks received a boost from its National Stabilization Fund yesterday and posted the biggest gain in more than 2 years. Taiex Index was up 4.6 percent from the government intervention to curb the slumping Taiwan stock market. Taiwan’s stock market was down, close to 22 percent this year, setting for the biggest annual decline [...]

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Shanghai Index and Euro – Free Falling

The Shanghai Composite Index continues its decline after the brief intervention effect has worn off. The Index lost 20 percent this year, exceeding last year’s 14 percent decline.

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USD, Gold and the Shanghai Index

The USD has been gaining strength since September 2011 after the Dollar Index reached a low of 72.696 in May of 2011. Long term trend of the USD is still down as long as the Dollar Index stays below 80. The focus in the markets nowadays is on the European situation thus giving the USD [...]

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Can the Rally Continue?

Global equity markets continue the rally due to the prospect of Chinese government support of the stock market and optimism on the Euro zone debt situation. The Shanghai Index rose 3 percent overnight and the European markets also posted gains. The Dow Jones Industrial Average has reclaimed all the losses for the year 2011.

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China Banking Situation

A day after the Shanghai index reached a one year low, Central Huijin Investment, a holding company that is part of China’s sovereign wealth fund, came in and bought shares of the four largest Chinese banks. The valuation of the Chinese banks had fallen to the 2008 financial crisis levels due to concerns of bad [...]

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Warren Buffett Intervention

Billionaire investor Warren Buffett’s company, Berkshire Hathaway, announced a share buyback program today. Berkshire’s share price had fallen to $98,952 per share from the 52-week high of $131,463 per share. Buffett felt Berkshire is trading below its value, thus the share buyback will create shareholders value. Berkshire is willing to pay up to 110% of [...]

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China to the Rescue – Not So Fast

European tensions eased a bit after reports that China might invest in Italy. The western nations have been looking for China’s growth to pull them out of their economic problems. China had led the growth prior to the 2008 economic crash but hoping for China to come to the rescue of everyone may be too [...]

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