mynameisandhy

News and Reviews Economic Zone of Asia (Japan)

Fitch Credit Rating Outlook Cut Japan Being Negative

Friday, 27 May 2011

Rating agency Fitch on Friday cut the outlook on Japan's debt to negative from stable, warning that the cost of the earthquake and tsunami of March and the bill is still not known for cleaning up after nuclear disasters will increase pressure on countries already shaky public finances.

Yen falls against the dollar and the euro immediately after the movement, which follows a similar downgrade by Standard & Poor's last month.

Fitch confirms the local currency rating of AA minus, the fourth highest and the same level as the S & P but one level below the Moody's AA2. After a motion on Friday by Fitch, the three now have negative views for Japan.

"Japanese government's credit worthiness is under negative pressure from increased government debt," said Andrew Colquhoun, head of Fitch's team of Asia-Pacific governments said in a statement.

Responding to the news, the Japanese government offered assurances that they would continue efforts to bring public finances back under control.

Analysts play down the potential market impact of recent downgrades, saying it only confirmed a broad view of the challenges facing Japan.

While noting that government spending on regional development which was destroyed by the earthquake could increase gross domestic product in 2011 and 2012, Fitch rule out the potential cost of cleaning plants Fukushima reactor disaster becomes a serious risk.

"There are significant downside risks for the public finances of the cost of which is still not known for cleaning nuclear reactor Fukushima, while delays in the restoration of power supply could cause Fitch to revise down growth forecast for 2011 from 0.5 percent.

Japan's public debt, already twice the size of the economy $ 5 trillion, will swell as the state faces the cost of reconstruction following the earthquake and tsunami March 11 that killed about 24.000 people and sparked the world's worst nuclear accident since Chernobyl.

Fitch said Japan's public debt also increased sharply, at a speed that can only be followed by Ireland and Iceland, "which both have experienced a systemic banking crisis."

News and Reviews European Economic Zone

Record low euro vs francs on risk aversion towards by Greece

Friday, May 27, 2011

The euro fell for the fifth straight day versus the Swiss franc on Thursday to a record low, with a new valley looks possible if the continuing uncertainty about the next stage of the Greek aid.

Comment from the President of Eurogroup Jean-Claude Juncker confused market participants and raised doubts about whether the International Monetary Fund will release the next round of financial aid to Greece in late June.

Increased levels of anxiety to the debt crisis of the European countries continue to trigger a fall in the euro versus the Swissie as a safe haven.

"The performance of the currency pair is a reflection of extreme anxiety in the market in connection with sovereign debt crises," said Kathy Lien, director of currency research at GFT Forex in New York. "There has been much back and forth between the European Union (EU) and ECB (European Central Bank) on IMF aid to Greece and it also does not help the euro at all."

Switzerland is very dependent on exports, so the Swiss National Bank could try to talk francs lower as direct intervention in the past have fallen short of expectations, said Lien GFT Forex.

"Performance of the Swiss franc is something to watch because it serves as an important gauge sentiment in the eurozone."

News and Reviews European Economic Zone (UK)

Despite Increases, British Pound Threatened Economic Outlook

Friday, May 27, 2011

£ survive on a firm near 2-week highs versus the U.S. dollar on Thursday, fueled by physical buying from Asian investors. Although the strengthening of them may be limited by expectations of recovery are not evenly England and interest rates remain low.

Against Euro, Pound actually slipped from the strongest position in the 2-month printed on the previous session after China was reported interested in buying bonds bailout for Portugal.

Sterling began to get a boost after a survey from Citigroup / YouGov showed UK inflation expectations for next year rose slightly in May after falling in April. However, estimates higher inflation unlikely to push the Bank of England to raise interest rates soon, considering the majority of policy makers more concerned about the slowdown in activity.

While on the same day, a private sector survey of British companies engaged in consumer services shows the level of business and profitability will decline more sharply in the next 3 months.

"Cable Outlook remains negative," said Kit Jukes, currency analyst at Societe Generale. "Bank of England will still be watching next week's report on the activities, which will probably bring up some weak PMI figures. The components of GDP that was released last Wednesday has also shown some weakness."

The financial markets continue to cut its rate hike expectations the Bank of England, and shift opportunities for an increase in UK interest rates by 0.25 basis points to be in February next year, from January to the beginning of this month.

Currently, GBP / USD traded at around $ 1.6375, an increase of 0.6% from today's opening price level.

Dollar Weak, Oil Prices Up in Asia

Thursday, May 26, 2011

U.S. crude oil futures rose in Asian trade on Thursday (26 / 5) morning, supported by the weakening dollar and U.S. government report showed distillate reserves decline unexpectedly last week.

Crude oil is light, sweet U.S. for July delivery rose 38 cents to $ 101.70, up $ 1.73 from Wednesday. In London, Brent crude up 43 cents to $ 115.36 per barrel after rising more than $ 2 in the previous session. Oil reserves data reported by the U.S. Department of Energy showed distillate oil reserves, which include heating oil and diesel fuel, fell 2.04 million barrels to 141 million barrels last week, the lowest since April 2009.

The data overshadowed a bigger estimate of 3.79 million barrels of gasoline and the profits to build reserves unexpected 616,000 barrels in crude stocks.

In Libya, NATO forces attacked targets in the capital Tripoli on Wednesday night, Libyan television and a television station based in Dubai said. South African President Jacob Zuma will visit Tripoli next week for talks with Libyan leader Muammar Gaddafi and is optimistic that the meeting could help find a solution to the crisis of Libya. Large explosion rocked the Yemeni capital, Sanaa on Thursday due to the struggle to topple the veteran president, Ali Abdullah Saleh, threatening to descend into civil war.

A European draft resolution submitted to the UN Security Council on Wednesday demanded an immediate end to violence against protesters and Syrian cooperation with UN investigation of alleged human rights violations. Dollar down 0.3 percent against other currencies, while the euro climbed again after weakening earlier in the day driven by the uncertainty caused by the debt crisis of the euro zone.

Japan's Nikkei stock rose on Thursday, helped by the increase in Wall Street stock and commodity prices. The price of gold in the spot market edged up to its highest level in almost three weeks on Thursday

News and Reviews Economic Zone of Asia (China)

China Buy Bonds Portugal June Bailout

Thursday, May 26, 2011

The Chinese government reportedly interested in buying bonds that will be auctioned bailout Portugal Financial Stabilization Facility or EFSF Europe next month.

The report quoted the official EFSF Wednesday night. He said China and other Asian investors are expected to represent a strong consortium membei Portugal bonds.

Attraction of Asia is to encourage the strengthening of the euro exchange rate. "They saw us and came to the conclusion as a good way to diversify (invest)," said Klaus Regling, Chief Executive EFSF quoted from yahoo.finance.com.

With the news, the euro exchange rate strengthened against the dollar in trading Thursday that along with rising commodity prices. The euro rose to U.S. $ 1.42 or the highest rise since 20 May. Purchases of euro large enough to reach U.S. $ 1,412 and U.S. $ 1,415 with the Financial Times newspaper that published it Wednesday night.

Commodity prices rise as U.S. crude oil prices rose to U.S. $ 101 per barrel with a collective purchase of trade-based strengthening of the euro in Asia. "We see the euro depressed lately, but I see there are many needs to buy the euro as European investors who want to withdraw funds again for the stress test in Europe," said Hideki Amikura, forex manager at Nomura Trust.

The purchase was associated with bailout bond purchases by China and Portugal saw the prospect of interest rate hikes by the European Central Bank to prevent further fall in the euro.

News and Reviews European Economic Zone (Germany)

Beware the Euro-price German Import Data

Thursday, May 26, 2011

While recovering from the low level against the U.S. dollar on Thursday, some analysts expect the euro will still remain under selling pressure until this weekend.

While market participants today re wary of economic data import price for monthly and yearly from the German states in the expectation that the numbers will drop sharply (release 1300 GMT).

And the potential correction seems to continue in EUR when import price figures to appear worse than market expectations amid fears of further contributing to the Euro zone debt problems.

Technically today investor focus turned to the EUR is still going to test the key $ 1.40 level for a number of negative news will trigger investors to hold off position.

News and Reviews European Economic Zone (Switzerland)

The European Stocks will Opens Higher

Thursday, May 26, 2011

European stock markets opened mostly predicted higher Thursday following gains on Wall Street and Asia overnight as rising commodity and energy sectors.

IG Markets 10 tips FTSE up 20 points in 5890, the DAX up 21 at 7192, and the CAC-40 flat in 3928. IG warned, however, that the dual fears the euro zone sovereign debt and lackluster economic growth - particularly in the U.S. - the focus of most of the market, because investors will watch economic data closely in the next few days.

French consumer confidence data will come out at 0645 GMT, but the main event on Thursday was the second release 1Q U.S. GDP at 1230 GMT.

News and Reviews European Economic Zone (France)

France Consumer Confidence April 83 Versus May 84

Thursday, May 26, 2011

French consumer confidence edged up in May, as households became more optimistic about the country's economic conditions, data showed on Thursday.

Consumer sentiment rose to 84 May from 83 in April, the French statistics office Insee said in a release. Economists surveyed by Dow Jones Newswires had expected the indicator remained unchanged at 83.

"Households are more optimistic about their living standards now and the future," said statistics bureau, records obtained by measuring both in May, each by two and six points, from reading the previous month.

Measuring the prospect of unemployment showed significant improvement, suggesting French consumers anticipating fewer in May increased unemployment. Data, which has lost 18 points since February, fell back into a long-term average, according to Insee.

Consumer perceptions of the labor market is consistent with recent data on unemployment published Wednesday by the labor ministry, shows that the number of unemployed people actively seeking employment in the euro zone's second-biggest economy fell by 0.4% on month in April.

French President Nicolas Sarkozy has made a priority of reducing unemployment, as the country heads into a presidential election in May next year. The latest data showed the unemployment rate was 9.2% in the fourth quarter. Unemployment in France rose to about 10% following a global recession in 2008 and 2009 from about 7.5% by mid-2007.

Households also shed pessimism about rising prices, Insee noted. In May, the gauge measures the perception of past inflation and the prospect of future price increases fell by eight and 15 points, respectively.

Natural Gas Futures Down From the Top 3 Weeks Related to Profit Taking

Wednesday, May 25, 2011

Natural gas futures slid on Tuesday night, as investors withdrew from the market to lock in profits from the rally that took prices to a peak three-week highs.

On the New York Mercantile Exchange natural gas futures for June delivery traded at USD 4337 per million British thermal units (BTU) for U.S. trade.

Earlier in the day, natural gas futures rose 1.2% to $ 4397, the highest price since May 5 amid indications of rising demand after forecasts showed that warmer temperatures than normal in much of the territory of the United States until late May.

However, the rally was encouraging some investors to sell their positions in profit-taking and lock in profits speculation that the recent rally in the market has been noted to increase the cooling requirements.

News and Reviews Economic Zone of Asia (Japan)

Japan Exports Down 12.5%

Wednesday, May 25, 2011

Japan's exports fell 12.5% ​​from a year earlier in April, according to the government on Wednesday due to the impact of the March 11 earthquake that affects the production and delivery of the goods of the industry.

The export value is almost in accordance with the estimate of economists surveyed by Dow Jones Newswires declined by 12.7%. This was the biggest decline since October 2009 decreased by 23.2%, while the global financial crisis which led to declining demand from abroad. Data released by the Ministry of Finance confirmed that Japan's exports declined in the beginning of the period from April to June, after a natural disaster caused melambannya economic recovery and forced Japan into recession in the first quarter. Exports fell 2.3% in March, the first decline in 16 months.

Japan's trade balance showed a deficit amounting to Y463.7 billion, compared with a surplus of Y729.2 billion in the previous year and an estimate of Y700 billion. The deficit in January amounted to Y479.41 billion. Total exports in April Y5.156 trillion. Import Y5.619 trillion, up 8.9% from the previous year related to high energy prices that make rising import costs.

News and Reviews Economic Zone of Asia (China)

China Shares Move On Level Support

Wednesday, May 25, 2011

Melambannya investor anxiety about the domestic economic growth and rising price pressures continue to pressure shares of China.

Shanghai Composite Index down 0.2% at 2760.51. The index will test the 2700 level for the short term. "overall market conditions affecting the domestic economy. Investors are not sure whether Beijing will relax their monetary policies and also about the crisis in Europe," according to analyst Soochow Securities, Zhu Haomin.

Among actively traded stocks, China State Construction Engineering fell 0.5% to CNY3.73, China Construction Bank fell 0.8% to CNY4.93 and China Eastern Airlines fell 0.7% to CNY5.39. Shenzhen Composite Index fell 0.3% to 1147.02.

News and Reviews European Economic Zone (UK)

Sterling Recovers Thin, Focus Switches to GDP

Wednesday, May 25, 2011

Sterling moved in the range of recovery on Wednesday after rebounding from yesterday had a low level in the last 7-week against greenback sparked by short covering action of market participants.

Action which also involves the trader is motivated by the news of the agency Moody's is threatening to downgrade some banks in the UK. While thin Euro appreciation against the dollar also helped boost the pound.

Previously, the Pound has ignored the release of data showing the amount of public debt is the worst in April. Investors are also not much to react to comments from BoE officials, Paul Fisher, who said has had little evidence that the risk of growing inflation threat.

Today investors waiting for the emergence of first quarter GDP growth figures (Released 2nd GDP q / q and y / y), which had been due to appear at 15:30 pm with expectations are the same as the previous figure of 0.5% for the q / q and 1.8% for y / y

News and Reviews European Economic Zone (Germany)

June GfK German Consumer Sentiment At 5.5 Vs 5.7 in May

Wednesday, May 25, 2011

German market research group GfK's consumer climate index review is set to fall further in June, due to high energy prices and a worsening debt crisis of the Greek reduce consumer sentiment, the Reuters news agency said Wednesday.

Index in June is set down to 5.5 points from 5.7 points in May.

This figure is below the projection of economists by 5.6 points in a survey by Dow Jones Newswires.

Overall GfK consumer climate index refers to the next month, but the sub-indices - economic expectations, income expectations and propensity to buy - see the current month.

Third subindexes fell in May for the third consecutive month.

Economic expectations index fell to 46.1 points from 47.3 points in April.

Income expectations index fell to 25.9 points from 35.0 points, while the propensity to buy fell to 31.5 points in May from 34.2 points in April.

News and Reviews Economic Zone of Asia (China)

Depressed Chinese Stock Fundamentals

Tuesday, May 24, 2011

Chinese shares continued to weaken on concerns about economic growth melambannya.

After declining 2.9% to 2774.57 on Monday, the Shanghai Composite Index to a strong support level in 2750. "Conditions are still worried about the macro economy and heightened investor concerns due to expectations for slowing economic growth," said Shenyin Wanguo Securities analyst, Li Xiaoxuan. Li added that inflation is still worrying, investors view of China by HSBC PMI data released Monday, the numbers are in 10-month lows in May.

News and Reviews Economic Zone of Asia (China)

Goldman Sachs Downgrade China's GDP 2011/12

Tuesday, May 24, 2011

Goldman Sachs lowered outlook for economic growth (GDP) of China to 9.4%, from 10%, for fiscal year 2011 and to 9.2%, from 9.5%, for fiscal year 2012

At the same time, Goldman Sachs upgrade the outlook for inflation in China in 2011 to 4.7%, from 4.3%. "Overall, inflation in China is more entrenched than we expected," he said, adding "U.S. economic growth is lower and high oil prices into negative sentiment."

Goldman Sachs raised the average forecast for Brent crude oil price to U.S. $ 113.5 per barrel from U.S. $ 103 for 2011, and U.S. $ 130 from $ 110 for 2012.

Yet, they slashed HSCEI indexes end of 2011 to be 14 500 from 16500, with consideration of the ongoing policy of intervention and high oil prices are likely to close the potential expansion

News and Reviews European Economic Zone (Germany)

Possible German Business Confidence Falls in May

Tuesday, May 24, 2011

German business confidence probably fell for the third month in May after a debt crisis worsened doubt the euro area growth prospects and rising energy costs threaten profits.

Institutions that measures the business climate index, Ifo, based on a survey of 7000 executives, fell to 113.7 from 114.2 in April, the median estimate of 24 economists in a Bloomberg News survey showed. Ifo report released today at 10 am in Munich.

German economy, the largest in Europe, may struggle to maintain the momentum of growth which the government strengthens the euro zone savings measures to lower the budget deficit, while soaring energy costs squeezing household income. German investor confidence dropped more than economists forecast in May.

"Even if the Ifo fell from the stratosphere, the German business managers are still quite optimistic about the future," said Jens Sondergaard, senior European economist at Nomura in London. "That should support investment in the next few quarters, even while German exports take a hit from the global growth momentum is fading, while higher oil prices will complicate income, making consumption weaker."

Ifo estimates about the current situation slid to 120.7 from 121, while the index measuring expectations for executives may come down to 107 from 107.7, a Bloomberg survey showed.

News and Reviews European Economic Zone (UK)

GBP Fall Along About Ratings Moody's reviews Bank

Tuesday, 24 May 2011

GBP down, signifying a new low today against the JPY after Moody's said the review rating of British financial institutions selected for a possible fall.

After touching a new intraday low at 131.43, down from around 131.75 before the announcement of Moody's, the next important test for the crossing would be around 131.00, said a trader in Tokyo.

If the level is exceeded, could signal a bearish pressure increased, they said. Due to reports on Sky News earlier today said that Moody's would make that step that could limit the impact of long-term statement.

GBP / USD also fell and was at 1.6096 from the previous high around 1.6106 before the announcement.

News and Reviews European Economic Zone (France)

French Business Sentiment May 107 Vs 109 In April

Tuesday, May 24 2011

French business sentiment unexpectedly worsened in May, by measuring the final production dragged down the indicator, the data showed Tuesday

Sentiment in the manufacturing sector fell to 107 109 in May from April, says national statistics office Insee. Economists expect the data remains unchanged at 109, according to Dow Jones Newswires survey.

Total April was revised down to 109, after reading the initial 110.

Gold Slip On Weakness EUR / USD

Monday, May 23, 2011

Gold slipped lower in Asian trade, EUR / USD weakness as concerns over Greece's debt woes drag on, said a trader based in Hong Kong.

"This is a reaction against the U.S. dollar," he said, adding that the overall price uptrend is still in place. EUR / USD is at 1.4089, issued intra-day low 1.4080.

"If uncertainty persists, we may see more investment in gold," he said. Spot gold fell $ 3.30 from the closing of New York at $ 1,510.20 / oz. Silver, which fell more than 20% from its peak last month, up seven cents at $ 35.13/oz.

"Silver likely to consolidate at this level, if the euro / dollar rises,. we can see silver prices rose as well," he said.

News and Reviews Economic Zone of Asia (Hong Kong)

April HK Composite CPI Up 4.6%; market is expected to rise 4.6%

Monday, May 23, 2011

Hong Kong's composite consumer price index in April rose 4.6% from a year earlier on higher food prices and private rental, Census and Statistics Department said Monday.

April CPI rose higher than the 4.4% rise in March, and was in line with the increase of 4.6% median forecast of nine economists surveyed by Dow Jones Newswires.

On 13 May, the Hong Kong government increased in 2011 CPI forecast to 5.4% from 4.5% in the global food price inflation and higher energy costs.

News and Reviews European Economic Zone (Germany)

Weak German Private Sector Growth In Seven Months

Monday, May 23, 2011

German private sector activity grew at the slowest in seven months in May, a survey of purchasing managers at manufacturers and service providers showed.

Markit Economics said Monday that the composite Purchasing Managers Index for Germany fell to 56.4 from 59.2 in April. Reading above 50.0 indicates activity expanded.

PMI for the manufacturing sector fell to 58.2, six-month low, from 62.0, and PMI for services fell to 54.9 from 56.8, marking the weakest pace of expansion in eight months.

Economists surveyed by Dow Jones Newswires last week expect an increase in the services PMI and less marked slowdown in manufacturing.

News and Reviews European Economic Zone (France)

French Business Growth Slows In May - Survey

Monday, May 23, 2011

French private sector growth solid despite slightly weaker pace in May than in April, by reducing manufacturing activity more than expected to a four-month lows, preliminary results from a monthly survey by Markit showed Monday financial company information

Combined flash output readings France Index, a measure of activity based on the results of some surveys of manufacturing and service company, fell to 60.5 in May from 10-and-half-year-high of 62.4 in April. A reading above the neutral level of 50 indicate expansion of activity.

Markit said the manufacturing Purchasing Managers' Index fell to 55.0 in May from 57.5 the previous month, while services activity index dipped to a two-month low 62.8 from 62.9 in April.

Economists expect the manufacturing PMI reading of 57.0 and the services sector index fell to 62.0, according to Dow Jones Newswires survey last week.

News and Reviews European Economic Zone

Mountain erupts in Iceland, Europe Flight Alert

Monday, May 23, 2011

A volcano erupted in Iceland on Saturday night, forcing international airlines to divert their flight paths away from the island nation, according to weekend media reports.

Grimsvotn volcano, the most active in Iceland, located about 90 miles (145 kilometers) southeast of the capital, Reykjavik, the report said. The volcano last erupted in 2004.

Icelandic aviation officials ordered the planes to fly outside the zone of 120 nautical miles (220 kilometers) in all directions around the volcano, located on a glacier, the report said.

In April 2010, the eruption of another volcano in Iceland to stop the 100,000 flights first six-day eruption, Bloomberg News reported.

Analysts predict volcanology ash from this eruption may spread to several European countries, like Britain, France and Spain in a few days to a week. However, they also predict that the spread of ash was not as severe this time than before because the wind is more compromising situations.

Gold tends to fluctuate Stronger

Friday, May 20, 2011

Precious metals are traded in a range trading continues in Greece's debt default prevention situations. The weakening dollar which appears in the European session to boost the appeal of gold as an alternative investment.

Gold traded so far observed in the level of $ 1,495.21, an increase of 0:14%, compared to today's opening price. Gold prices tend to move against the U.S. Dollar, then the predicted weakening of the Golden still limited as the dollar rebounded momentum began to fade.

Estimated analysts still expect an average of Gold in the second quarter is in the level of $ 1455, after the price gradually weakened due to high supply of gold in central bank reserves and the country.

Based on technical studies, intraday bias is still neutral with the potential trading range of 1488 to survive in the area till 1500, required penetration is consistently outside the range to get a more clear direction.

News and Reviews Economic Zone of Asia (China)

China Stocks Flat

Friday, May 20, 2011

China shares tend to be stable in the midst of intense trading.

Shanghai Composite Index rose 0.1% to 2861.93, with psychological resistance level in 2900. But the index seems limited due to the strengthening of the uncertainty over the prospects of China's economy. "A major concern is still the market on inflation, which is likely to rise in May or June," according to the Gold State Securities analyst, Wu Yu.

Among actively traded shares, Inner Mongolia Baotou Steel Rare-Earth jumped 3.7% to CNY63.45 while Angang Steel fell 0.1% to CNY7.45. Shenzhen Index down 0.2% to 1194.47.