CMC Markets – Evening Update 23/11/12


By Donal Wee
Business Operations Analyst
CMC Markets Singapore

Asian equity markets had a strong performance this week as most of the regional indices posted gains. The positive returns over the week were helped by strong HSBC Flash PMI figures out of China, bringing the country out of its slump witnessed over the last 7 straight quarters. Chinese manufacturing index signalled the first expansion in 13 months with a preliminary reading of 50.4 for a purchasing manager’s index compared against the final level of 49.5 for the month of October with readings above 50 indicating expansion.

Helping boost markets earlier in the week was the growing optimism that President Obama and Congress can come to an agreement over the US “fiscal cliff” burden which has rocked investor confidences over the last few weeks. Europe was again at the forefront this week as leaders met over the ongoing saga that is the Greek bailout program.

The Eurozone finance ministers came together to consider ways of reducing Greece’s public debt, which is projected to rise to 189% of GDP by next year however the country’s bailout programme aims to get this figure down to 120% of GDP by 2020. In what has been a busy week so far in Europe, tonight we will see European Union leaders meeting in Brussels as they face a second day of gruelling negotiations in an attempt to agree on a seven-year budget which will run until 2020.

The Japanese market was closed today due to a public holiday however the Index performed well across the week as it finished up 3.7%. The solid gains were helped by the growing optimism that the Japanese opposition party will win support in next month’s election and in turn will put more pressure on the Japanese Central Bank to added more monetary stimulus.

Hitting the headlines yesterday was electronic manufacturers Sony Corp and Panasonic Corp. as both companies’ had their credit ratings cut to junk for the first time by Fitch Ratings. This came after both companies posted record losses due to slumping demand for their televisions. Sony’s rating was cut by three levels to BB-, three steps below investment grade, and Panasonic by two levels to BB, with the outlook on both companies being negative.

In Australia the ASX 200 fell 0.08 % to 4,413 today however the Index was up 1.7% for the week, its highest weekly rise in four weeks. Australian banks were in focus after the chief executive of ANZ said banks will need a small capital increase to meet Basel III global banking regulations. ANZ fell 0.59% while Commonwealth Bank of Australia gained 0.48% and Westpac finished up 0.44%. In Hong Kong the Hang Seng Index was 0.8% higher today at 21,913, its highest level since early November, the index rounded out the week up 3.4%

The local Singapore market had a strong performance this week as it finished up over 1.5%.The biggest news story during the week was allegations made by Muddy Waters over irregularities in agricultural commodities company Olam International accounting practices, these allegations were strongly refuted by the company however it wasn’t enough to stop the stock falling over 7.5% on Tuesday, however for the week, the share closed down over 6%. Today the Straits Times Index added to its weekly gains finishing up fractionally by 0.1% with warehouse operator Global logistic trading up by as much as 2.7%. The Index managed to round out the week up over 1.5%

Gold has continued to trade in a tight range again this week, managing to round out the week with a small gain. Gold has largely been supported by a weaker USD with the dollar index down over 0.5% over the course of the week. This coupled with US fiscal cliff worries, tensions in Gaza and continual disagreement between Euro leaders has kept gold supported around the 1730 level. On a technical front, a continued failure to push through 1735 has traders looking for downside.

USD/JPY has once again been the standout performer in terms of Forex, climbing to 7 month highs throughout the week, breaking through the 82.00 handle. The Yen has continued its slide, with pollsters speculating that opposition leader Shinzo Abe may win the election on December who is pushing for short term interest rates below zero and further asset purchases by the BOJ, in order to lower the yen.

Any surprise result to the election could see USD/JPY aggressively reverse the gains we have seen over the past 2 weeks. EUR/USD has also been well supported throughout the week, gaining just over 1%, with expectations that we will see an agreement next Monday in terms of releasing funds to Greece after both the German Chancellor Merkel and European Commissioner Rehn both stated they expected a deal Monday.

With next week being the last of the month there is a bit of data to wrap up the calendar month. Monday night the Eurozone finance ministers will continue their debate around the next round of loans to Greece and any more delays in resolving the issue could have traders reaching for the red sell button.

Tuesday we will have the GDP reading from the UK which is expected to return a reading of 1% for the quarter and for the year on year measure to remain unchanged at zero GDP growth. Wednesday night we will get another insight into the US housing market with the weekly mortgage application figure and New Home Sales data for October which is expected to come in marginally lower than September.

Any surprise to the upside could give markets a kick as house price growth is seen as crucial to US economic recovery. Later that session we will also get to see the latest instalment of the Fed’s Beige book which is published just before the FOMC meetings and give insight into changes in the economy since the last meeting.

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • EU likely to hand Apple Irish tax bill of over 1 bln euro: source
    EU likely to hand Apple Irish tax bill of over 1 bln euro: source Reuters - 5 minutes ago

    The European Commission will rule against Ireland's tax dealings with Apple (AAPL.O) on Tuesday, two source familiar with the decision told Reuters, one of whom said Dublin would be told to recoup over 1 billion euros in back taxes. The Commission … More »

  • Yale grad students file petition seeking union certification Associated Press - 15 minutes ago

    Yale University graduate students on Monday petitioned the National Labor Relations Board for union recognition, saying they have organized to address concerns surrounding pay and benefits and give themselves ... … More »

  • South African Treasury, Eskom row over coal contracts as government rifts deepen Reuters - 27 minutes ago

    South Africa's Treasury and state-owned Eskom clashed on Monday over a probe into coal contracts between the power utility and a company linked to the wealthy Gupta family that is accused of holding undue political sway over President Jacob Zuma. … More »

  • European privacy regulators to scrutinise WhatsApp privacy switch Reuters - 32 minutes ago

    Facebook's move to relax the privacy policy of WhatsApp, the world's most popular mobile messaging application, will be closely scrutinised, the chair of Europe's leading group of privacy regulators said on Monday.     WhatsApp, which counts more … More »

  • US alarm as Turkey warns Syrian Kurd militia of more strikes
    US alarm as Turkey warns Syrian Kurd militia of more strikes AFP News - 37 minutes ago

    Turkey warned Monday it would carry out more strikes on a Syrian Kurdish militia if it failed to retreat beyond the Euphrates River, as Washington voiced alarm over weekend clashes. Turkish forces pressed on with a two-pronged operation inside … More »

  • Berlin to require mums to come clean on 'milkmen's kids'
    Berlin to require mums to come clean on 'milkmen's kids' AFP News - 54 minutes ago

    Germany has drafted a law requiring mothers to inform their partners if their children were fathered by another man, Justice Minister Heiko Maas said on Monday. It would apply to cases in which men who believe they are not the real fathers seek … More »

  • RUBBER-Tokyo futures prices after evening session Aug 29 Reuters - 1 hour 22 minutes ago

    Following are prices for Tokyo rubber futures at the end of the Tokyo market's evening session on Aug 2016. Contract Day Volume Evening Volume * Sep 156.0 25 - - * Oct 156.0 86 156.0 1 * Nov 153.8 75 153.6 ... … More »

  • Four Nomura Investment Bankers Said to Leave as Firm Shrinks Bloomberg - 1 hour 33 minutes ago

    Jason Fertig, who led Nomura’s health-care investment-banking group in the Americas, and Matthew Upton, a banker in the firm’s global-technology team, are joining Mizuho Financial Group Inc., the people said, asking not to be identified discussing … More »

  • S&P 500 Approaches High on Consumer-Spending Data; Dollar Gains Bloomberg - 1 hour 35 minutes ago

    Japanese shares led gains among the biggest equity markets after central bank chief Haruhiko Kuroda reiterated a pledge to boost stimulus if needed. The monthly U.S. payrolls report due Friday will provide more clues on whether policy makers will … More »

  • Markets Right Now: Banks lead US stocks higher on rate hopes Associated Press - 1 hour 57 minutes ago

    The latest on developments in global financial markets (all times local): 11:45 a.m. Banks are leading stocks higher at midday as investors hope for higher interest rates. Wells Fargo, the nation's largest ... … More »

  • JPMorgan Index Move Puts $370 Billion Islamic Debt on Fund Radar Bloomberg - 2 hours 2 minutes ago

    Shariah-compliant notes will be eligible for inclusion in five JPMorgan gauges from Oct. 31 and will account for between 0.35 percent to 0.99 percent of total assets on the benchmarks, according to an Aug. 18 statement by the bank. Sukuk will be … More »

  • Yuan Bears Emerge From Hibernation as Fed Threatens G-20 Calm Bloomberg - 2 hours 3 minutes ago

    Derivative markets are pointing to renewed bets on yuan depreciation, with a three-month measure of expected price swings poised for the biggest monthly increase since January. The increased pessimism comes after a period of calm that sent the … More »

  • Oil down nearly 2 percent on surging OPEC output, strong dollar
    Oil down nearly 2 percent on surging OPEC output, strong dollar Reuters - 2 hours 8 minutes ago

    Oil prices fell nearly 2 percent on Monday, snapping two consecutive days of gains, on caution over galloping Middle East crude output and a stronger dollar boosted by speculation of a U.S. rate hike by the year-end. Iraq, which has exported more … More »

  • Statoil expects 'loads of' M&A deals coming up, strategy chief says
    Statoil expects 'loads of' M&A deals coming up, strategy chief says Reuters - 2 hours 11 minutes ago

    ** Says: "If you look at the acquisition and divestment markets for upstream oil and gas on a global basis over the last five years, they have been falling to all-time lows... but there are a number of active spots, one of those is in certain parts … More »

  • Gold hits near 5-week low after Fed strikes hawkish note
    Gold hits near 5-week low after Fed strikes hawkish note Reuters - 2 hours 28 minutes ago

    Gold slid to a near five-week low on Monday after comments from top Federal Reserve officials fuelled speculation that U.S. interest rates would rise sooner rather than later, boosting the dollar. Speaking at a meeting of leading central bankers in … More »

  • Liz Weston: 5 money myths you probably believe
    Liz Weston: 5 money myths you probably believe Associated Press - 2 hours 53 minutes ago

    Managing money can be complicated, and myths are often born from people's struggles to make it simpler. But simplistic solutions can cost you instead of saving you money. If you believe any of these five ... … More »

  • BOJ Needs Massive Move to Shock & Awe, $2 Trillion Investor Says Bloomberg - 3 hours ago

    “It is how much they do, and whether they can create that kind of shock and awe at this point in the cycle,” said Mark Haefele, global chief investment officer at UBS Wealth Management, in a Bloomberg Television interview, on Monday. “They could … More »

  • Grain lower, livestock mixed Associated Press - 3 hours ago

    Grain futures were lower Monday in early trading on the Chicago Board of Trade. Wheat for Sept. delivery was 10.50 cents lower at $3.7260 a bushel; Sept. corn was 2.25 cents lower at $3.14 bushel; Sept. ... … More »

  • Singapore's GIC buys stake in Vietnam's bank AFP News - 3 hours ago

    Singapore sovereign wealth fund GIC will buy a 7.7 percent stake in Vietnam's biggest bank, both companies said in a joint statement on Monday. GIC signed a memorandum of agreement to buy 305.8 million new shares of Vietcombank, the fund's first … More »

  • Copper Drops to Lowest in Two Months on Ample Supply, China Woes Bloomberg - 3 hours ago

    Inventories tracked by exchanges in Shanghai, London and New York climbed five straight days last week to the highest since May. Barclays said in a report that a recent slump in the copper market “may be an early warning sign of weakening in China’s … More »

  • Wall St rises as hawkish Fed boosts financial stocks
    Wall St rises as hawkish Fed boosts financial stocks Reuters - 3 hours ago

    Yellen, addressing a gathering of global central bankers on Friday, said the central bank was close to meeting its goals of maximum employment and stable prices, while describing consumer spending as "solid". Yellen gave little indication of when … More »

  • Foreign experts in Egypt to probe Russian airliner crash AFP - 3 hours ago

    Russian and German experts arrived in Cairo Monday to inspect the wreckage of a Metrojet plane downed over Sinai, hoping to pinpoint how it came apart, the aviation ministry said. The Islamic State group ... … More »

  • Jualo receives additional ‘multi-million US Dollar’ in their Series A round
    Jualo receives additional ‘multi-million US Dollar’ in their Series A round e27 - 3 hours ago

    In June, the e-classifieds platform announced a Series A round led by NSI Ventures Last June, e-classifieds platform Jualo announced that it has received a “multi-million US Dollar” Series A funding led by NSI Ventures. Today, the Jakarta-based … More »

  • US stocks higher amid focus on possible Fed rate rise AFP - 3 hours ago

    Wall Street stocks were slightly higher Monday as traders focused on the US July jobs report coming later this week which could, if strong, support an early rate rise by the Federal Reserve. Fed Chair ... … More »

  • Trudeau Heads to China to Woo Trade Amid Weak Canada Growth (2) Bloomberg - 3 hours ago

    Trudeau departs Monday on a 10-day trip to Beijing, Shanghai, Hong Kong and Hangzhou, where he’ll attend the Group of 20 summit. He’ll meet with Premier Li Keqiang, Alibaba Group Holding Ltd.’s Jack Ma and Hong Kong billionaire Li Ka-Shing, … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.124-0.005-3.88%
    N21.SI
    0.735-0.020-2.65%
    G13.SI
    0.128+0.014+12.28%
    RE4.SI
    0.3550.0000.00%
    E5H.SI
    4.12-0.10-2.37%
    Z74.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.355+0.115+47.92%
    BAZ.SI
    0.151+0.024+18.90%
    D79.SI
    0.23+0.03+15.00%
    AWI.SI
    0.475+0.060+14.46%
    588.SI
    0.128+0.014+12.28%
    RE4.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.205-0.105-33.87%
    BCZ.SI
    0.25-0.10-28.57%
    BKX.SI
    0.13-0.05-27.78%
    AYL.SI
    0.165-0.055-25.00%
    BKZ.SI
    0.745-0.130-14.86%
    564.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3587+0.0005+0.04%
    USDSGD=X
    1.5202+0.0006+0.04%
    EURSGD=X
    1.7810+0.0001+0.01%
    GBPSGD=X
    75.0080+0.326+0.44%
    SGDJPY=X
    5.7052+0.0005+0.01%
    SGDHKD=X
    2.9775+0.0112+0.38%
    SGDMYR=X
    9,759.9424+11.7539+0.12%
    SGDIDR=X
    4.9130+0.0068+0.14%
    SGDCNY=X
    1.0295+0.0032+0.31%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,327.70+1.80+0.14%
    GCZ16.CMX
    18.82+0.17+0.91%
    SIU16.CMX
    97.64+1.84+1.92%
    ^XAU
    2.080.000.00%
    HGU16.CMX
    47.19-0.45-0.94%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.18-0.06
    ^FVX
    1.57-0.07
    ^TNX
    2.22-0.07
    ^TYX