Global stocks gain on hopes for New Year gains
Stock Report September 6th, 2009
Global stock markets began the New Year on a positive note as investors counted on a strong recovery from the worst economic slump since the 1930s to extend substantial gains made in 2009, dealers said.
They said strong Chinese manufacturing data showing the world’s third largest economy clearly on the mend bolstered hopes that the worst of the downturn is well and truly over, with the despair and uncertainty of 12 months ago fading into memory.
A similarly positive US manufacturing sector report later in the day gave Wall Street a solid early boost, reinforcing the more positive outlook.
Financial markets appeared on the brink of collapse in late 2008 with the failure of US investment banking giant Lehman Brothers but sentiment turned in March last year as the first “green shoots” of recovery were seen after huge state stimulus programmes.
Dealers said the big question now is whether the momentum can be sustained as governments wind down their costly rescue programmes.
In New York, the Dow Jones Industrial Average of leading shares was up 1.57 percent at around 1700 GMT, with the tech-heavy Nasdaq composite gaining 1.78 percent.
“There is a bullish bias that is often associated with the start of a new year as new money gets put to work, riding the wave of typically upbeat forecasts,” said Patrick O’Hare at Briefing.com.
In Europe, Paris was the main feature, topping very strong resistance at 4,000 points as investors pushed the CAC 40 up 1.97 percent to 4,013.97 points, its best finish since October 2008.
“Everybody was expecting it and finally it happened,” said Xavier de Villepion of Global Equities, adding that investors will be closely looking at upcoming US data to confirm they are on the right track.
London’s FTSE 100 index of leading shares rose 1.62 percent to 5,500.34 points while in Frankfurt the DAX added 1,53 percent to 6,048.30 points.
Dealers said that apart from the data, European stocks got an additional boost from news that Swiss pharmaceutical giant Novartis was to spend nearly 40 billion dollars to take over the world’s biggest eye-care firm Alcon from Nestle.
James Hughes, Market Analyst at CMC Markets, said that after a positive opening, the US manufacturing data gave investors another boost.
“Shares managed to add to this morning’s gains … after a strong start on Wall Street. The (US) ISM manufacturing numbers seemed to be a catalyst, as was a surge in the oil price,” Hughes said.
The US manufacturing sector in December expanded at its fastest pace since April 2006 as factories ramped up production to make up for a massive drawdown in inventories, the Institute for Supply Management said.
The ISM purchasing managers index climbed to 55.9 percent in December from 53.6 percent in November, well above analyst forecasts for a rise to 54.3 percent. Any number above 50 percent indicates growth.
“Overall, the December survey points toward sturdy growth in manufacturing industrial production,” said Ryan Sweet at Moody’s Economy.com.
Elsewhere in Europe, Amsterdam gained 2.30 percent, Brussels was up 2.08 percent, Madrid rose 1.72 percent and Swiss stocks put on 1.31 percent.
London and Paris each gained more than 22 percent in 2009, with Frankfurt up nearly 24 percent.
In Asia early Monday, Tokyo struck 15-month high, buoyed by government plans to expand a credit line to troubled Japan Airlines, with the benchmark Nikkei-225 index jumping 1.03 percent to 10,654.79 points — the best finish since early October 2008.
London stocks ends 2009 with 22% gain
Stock Report September 6th, 2009
The stock market closed higher in a half-day session on Thursday, the final trading session of 2009, to chalk up an impressive annual gain of more than 22 percent.
London’s FTSE 100 index of leading shares rose 0.28 percent to finish at 5,412.88 points at 1230 GMT, as traders headed home early for the New Year holiday weekend. The market remains shut on Friday and reopens on Monday.
The FTSE has gained 22.07 percent in value during 2009, despite a record recession, as investors drew strength from hopes of economic recovery in the fourth quarter or three months to December.
The Gold Investment
Gold Investing September 6th, 2009
The economic crisis the United States (U.S.) is an impact on society, not least for the Indonesian people. The panic over the impact of global crisis make investors turn to invest a lot of gold. Investment option gold today remains the most favorable votes than the other option given the nature of “immune” inflation.
Global investors will switch to cash and gold rather than the financial markets. The reason, global investors have lost confidence in the financial markets, capital, and debt securities from financial crisis in the United States. Someone make an investment because it is triggered by the need for the future.
It is estimated that up to the end of the year the gold price will fluctuate achieve the highest price, because the world financial market turbulence refers to the U.S. dollar is uncertain. From the past until now investment experts always say that gold is one of the safest types of investments and the most profitable.
Gold investing the same nature with investing funds to buy land and property in certain cities in Indonesia such as Bali and Yogyakarta, the price kept rising. Gold is also very good for diversification of investments after having investments in stocks, bonds, mutual funds, or property. Gold demand will rise if there are two things, the uncertain state conditions and inflation.
The most common form of gold is a bar-like coal-yield 95 percent or 99 percent (24 carat). These types considered most favorable for investment because whenever and wherever sold, the price to follow international standards. Another form is the coin which is a good idea when buying select products from leading manufacturers such as Maples, Krands, or Eagles. There is also a form of gold jewelry.
When we look at the gold price movement, the beginning of September gold price ranges from Rp. 243,500 and continued to weaken until September 5, 2008. Gold began to rise sharply on 18 September 2008, the trigger is: Rising world oil prices, rising oil prices led investors choose gold as a means of investment because gold is an alternative investment tool to protect the value of money.
Pound Declines Before Policy Makers Meeting
Forex September 6th, 2009
The pound lost versus several key-currencies today and specially versus its regional rival, the euro, as traders speculate that U.K.’s financial authorities will insist in quantitative easing measures to stimulate the British economy, affecting the sterling outlook in currency markets.
The British currency posted a declining session versus most of the 16 main traded currencies two days before a Bank of England policy makers meeting, where, according to analysts, the current asset purchasing program will not be suspended, declining even further attractiveness for the pound, as the recession in the U.K. remains rather significant and measures are necessary to attempt starting a faster economic acceleration in the country. Even if the real estate market is providing positive data in the U.K. since November, the sentiment regarding the economic future in the nation is rather misty, stopping the pound to advance in foreign-exchange markets.
U.K.’s central bank strategy is following a different, and dovish, path than most of the wealthy nation’s policy makers. While interest rate hikes talks are a global trend, in the U.K., quantitative easing extensions are still possible, and this has a intense impact in the pound’s rates.
EUR/GBP traded at 0.8979 as of 19:10 GMT from a previous reading of 0.8945 yesterday. GBP/USD traded at 1.5983 from 1.6090.
Yen Gains on U.S. Weak Housing Report
Forex September 6th, 2009
The yen managed to gain versus most of the 16 main traded currencies today after a negative U.S. housing report brought risk aversion up among investors, which opted for the safety provided by the Japanese currency.
The Japanese currency gained the most in four weeks versus the greenback as a pending home sales report frustrated forecasts and indicated a monthly drop of 16 percent, declining risk appetite and favoring the Japanese currency, even if the actual figures are still positive in the annual comparison. The only currency that manage to contain the yen’s advance was its neighboring South Korean won, as the emerging market currency is rated among the best bets for 2010 according to analysts. Speculations that Japanese investors would be repatriating assets today also helped the nation’s currency to post a splendid performance today.
U.S. housing data affected both the greenback and risk sentiment in trading markets, which is good for the yen, according to traders. Bets that the Federal Reserve will raise interest rates also declined, allowing the yen to become more attractive among the 6 main traded currencies in the short term.
USD/JPY dropped to 91.45 as of 17:00 GMT from a previous rate of 92.60 in the intraday chart. EUR/JPY touched 131.71 from 133.61.
