By
admin on June 28th, 2009
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By
admin on June 22nd, 2009
U.S. and European stocks fell, extending losses from the first weekly decline for global equities in more than a month, as the World Bank said the recession will be deeper than previously forecast. Treasuries rose, while a drop in commodities sent oil below $68 a barrel.
Equities and commodities retreated after the World Bank forecast today the global economy will contract 2.9 percent this year. That compares with a prior estimate of a 1.7 percent decline. Growth is expected to return next year with a 2 percent expansion, lower than the 2.3 percent prediction about three months ago.
Executives at U.S. companies are taking advantage of the biggest stock-market rally in 71 years to sell their shares at the fastest pace since credit markets started to seize up two years ago. This is a clue that the stock market is already expensive. Sales by CEOs, directors and senior officers have accelerated to the highest level since June 2007, two months before credit markets froze, as the S&P 500 rebounded from its 12-year low in March. The increase is making investors more skittish because executives presumably have the best information about their companies’ prospects.
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By
admin on June 19th, 2009
This week, the bears were able to flex their muscles and they pushed the market below support at SPY 93. It looked like they might be able to generate selling momentum and all they needed was a late day selloff yesterday. That didn’t happen and the market showed its resilience as buyers gradually stepped up. Before Thursday’s open, continuing jobless claims dropped by 148,000. Later in the morning, LEI and the Philly Fed came in better than expected. The S&P 500 popped five points on the news. These improvements sparked buying and the market gradually added to its gains throughout the …
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By
admin on June 19th, 2009
More than one-quarter of American states now have unemployment rates higher than 10 percent, and all but two saw a further job-market deterioration in May.
Tennessee and Indiana joined the rank of states, now 13, that have jobless rates exceeding 10 percent, and eight states - - including California, Florida and Georgia — reached their highest level of joblessness in May since records began in 1976, the Labor Department reported today in Washington.
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By
admin on June 14th, 2009
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By
admin on June 14th, 2009
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By
admin on June 13th, 2009
The dollar declined against a majority of the most-traded currencies as Brazil and Russia joined China in saying they would shift some $70 billion of reserves from U.S. Treasuries into multicurrency bonds.
The drop in the U.S. currency was the third weekly slump in four against the euro as concern increased that record debt sales and deficits will erode the value of the dollar. The British pound touched the strongest level since December versus the euro, after reports showed U.K. manufacturing rose in April, while the decline of housing prices slowed.
The dollar also declined as traders reduced their bets that the Federal Reserve will start raising its benchmark interest rate from a range between zero and 0.25 percent. Interest-rate futures yesterday indicated a 20 percent chance the Fed will boost its target rate for overnight lending between banks to at least 0.5 percent by its September meeting, compared with 49 percent odds a week earlier.
The dollar weakened after the Russian central bank’s first deputy chairman, Alexei Ulyukayev, said on June 10 that the nation Russia may switch reserves from Treasuries to International Monetary Fund bonds. Brazil’s Finance Minister Guido Mantega said his country will purchase $10 billion.
Leaders of Brazil, Russia, India and China, the so-called BRIC countries, are scheduled to meet on June 16 in Russia to discuss their economies.
Central banks’ dollar-selling may help weaken the greenback beyond $1.50 per euro before September, according to Thomas Stolper, a London-based economist at Goldman Sachs Group Inc. Goldman on June 9 advised its clients to buy the euro versus the dollar.
The dollar pared its weekly losses yesterday after Japanese Finance Minister Kaoru Yosano said his nation’s confidence in U.S. debt is “unshakable” and that the currency’s global status is safe. Japan is the second-biggest foreign holder of Treasuries after China.
Source: bloomberg.com
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