Jump to content

IDS World Markets Wed 2nd March 05


Recommended Posts

t?s=^AORD

 

Well I suppose it was inevitable there would be an attempt to break through to a new high today but so far the latter hasn't been achieved. An interest rate rise has been announced and the amount of negative media attention to this event is bound to strike fear into the heart of Joe Bloggs. Lots of talk re foreclosures and credit card debt and whilst I don't think it is quite as bad as all that (yet) it's certainly a forewarning. All Ords currently +0.5% but my live feed has pegged out so I'm not sure what's happening in individual sectors.

 

Asia still deciding which way it's going:

 

t?s=^N225

 

t?s=^KS11

 

t?s=^TWII

 

t?s=^STI

 

t?s=^SSEC

 

t?s=^HSI

 

t?s=^BSESN

 

http://quote.yahoo.com/m2?u

Link to comment
Share on other sites

  • Replies 241
  • Created
  • Last Reply

Brazil 2004 GDP Grows Fastest in Decade as Rates Fall

 

March 1 (Bloomberg) -- Brazil's economy grew 5.2 percent last year, the fastest pace in a decade as lower borrowing costs boosted spending and exports of iron ore, soybeans and other commodities jumped to a record.

 

Gross domestic product in South America's largest economy rose an inflation-adjusted 4.9 percent in the fourth quarter after 6.1 percent growth in the third, the statistics agency in Rio de Janeiro said today.

 

---------------

 

Brazil's Bovespa Falls, Led by Petrobras

 

March 1 (Bloomberg) -- Brazil's benchmark stock index fell for a third day, the longest decline in almost two months, led by oil producer Petroleo Brasileiro SA after the company said it may owe billions of reais in back taxes.

 

The Bovespa index of the most traded shares on the Sao Paulo stock exchange fell 409.15, or 1.5 percent, to 27,729.98. The index declined for a third straight day, the longest drop since Jan. 6, when it ended a four-day decline.

Link to comment
Share on other sites

Australian Economy Stalls; Central Bank Raises Rate

 

March 2 (Bloomberg) -- Australia's economy grew 0.1 percent in the fourth quarter, prompting speculation the central bank's first interest-rate increase in 15 months today will be the last this year. The nation's currency slumped.

 

Gross domestic product in the three months ended Dec. 31 expanded at the weakest pace in four years as home building and consumer spending slowed, the Australian Bureau of Statistics said in Sydney today. Governor Ian Macfarlane said his board increased the overnight cash rate target a quarter percentage point to 5.5 percent ``to reduce the risk of an unacceptable rise in inflation.''

Link to comment
Share on other sites

Canada Keeps Rate at 2.5% as Currency Slows Growth

 

March 1 (Bloomberg) -- The Bank of Canada kept the nation's benchmark lending rate at 2.5 percent to bolster domestic spending as a strong currency slows economic growth. The central bankers suggested they still plan to raise interest rates at some point.

 

-------------

 

Magna Says Vehicle Production to Drop; Cuts 2005 Sales Forecast

 

March 1 (Bloomberg) -- Magna International Inc., Canada's largest auto-parts maker, reduced its 2005 sales forecast because automakers are making deeper production cuts than the company expected, President Mark Hogan said.

 

Vehicle production cuts in North America have been ``worse than expected,'' Hogan said during the call, which was delayed until today because a board meeting ran late yesterday. ``There are no surprises here that the first half of 2005 will be challenging.''

Link to comment
Share on other sites

w?s=^AORD

 

Hmmm, is that a lower high being formed end of day? All Ords closed +0.2% and was lucky to achieve that considering the media frenzy on the economy's lack of growth, +0.1% to be exact, a shock figure that no one predicted.

 

Many questions are being asked as to why the Reserve Bank would raise interest rates in this environment and the answer I heard from one interviewee was that it was widely expected and if the RBA hadn't gone ahead it would have sent the the wrong signal, ie that we are heading into the abyss :blink: Fairly inevitable I would have thought, business cycles being what they are and it's just a question of how far and how fast.

 

In the sectors, the Telecommunications index took its turn at being first, closing +1.5% and IT resumed its usual place in the rear, -1.6%.

 

Materials and Energy both closed down today, -0.8% and -0.7% respectively. Gold producers closed in the red and specs were comatose. Oils didn't fare well either.

 

Asian markets looking weak...

 

Over to Europe:

 

t?s=^FTSE

 

t?s=^GDAXI

 

t?s=^FCHI

 

http://quote.yahoo.com/m2?u

Link to comment
Share on other sites

... when Korea, the world's fourth-biggest holder of reserves, last week suggested it might diversify into other currencies, markets plunged. When the Bank of Korea said it would hold onto its dollars, markets returned to normal, satisfied that the mighty U.S. had again prevailed over compliant Asian economies.

 

It's increasingly dawning on Asian consumers that their governments are funding the U.S.'s way of life. Capital flowing from East to West reduces incentives for the U.S. to tackle its worsening current account and budget deficits.

 

The previously symbiotic relationship between the U.S. and Asia is looking more like unhealthy and unsustainable co- dependence. Asia feeds its addiction to export-led growth by feeding the U.S.'s addiction to importing capital to finance its economy, and vice versa. Now, Asian leaders are concerned they are getting the short end of the arrangement, and they should be.

 

While last week's meeting of the Asian Bellagio Group didn't mark a coordinated effort to abandon the dollar, it may prove to be a watershed event for a region looking to stand alone. If there's going to be a concerted effort to dump the dollar, it may be made within the context of this grouping.

 

http://quote.bloomberg.com/apps/news?pid=1...id=aKmRPPpmFAfg

Link to comment
Share on other sites

http://story.news.yahoo.com/news?tmpl=stor...llution_traders

 

Business - AP

 

Traders Predict Market in Trading Carbon

 

Tue Mar 1, 1:38 PM ET Business - AP

 

By ARTHUR MAX, Associated Press Writer

 

AMSTERDAM, Netherlands - Traders in the world's newest commodity, carbon credits, said Tuesday the trade is changing the way European industries do business, and predict that billions of dollars will exchange hands as companies buy and sell the right to pollute.

 

About 850 businessmen and bankers reviewed the prospects of emissions trading opened up by the Kyoto Protocol (news - web sites), which took effect two weeks ago, aimed at controlling the greenhouse gases blamed for heating the earth and changing the climate.

 

 

By Monday, 12,000 European industrial plants should have been told how many tons of carbon each is allowed to emit for the year. Each ton of carbon spewed into the air amounts to one "allowance," or carbon credit. Companies that won't use all their allowances can sell the excess to companies likely to need more than they are permitted.

 

----------------------------------------------

Now I've seen everything.

Link to comment
Share on other sites

Until one can see wave 4 then five, it?s best to let bull have their way.

 

Too right, FeedFool, no way I'd be in there short... there are opportunities but only for those who can move fast, not plodders like me :P

Link to comment
Share on other sites

Until one can see wave 4 then five, it?s best to let bull have their way.

 

Too right, FeedFool, no way I'd be in there short... there are opportunities but only for those who can move fast, not plodders like me :P

 

And from the log time scale on that chart, it looks like wave five is quite some years away! Great chart Feed.

 

Funny,when you look at these really long-term charts,it's noticable that they only go up.

Basically I suppose what they're measuring is the Pluto's attempts to prevent the ravages of monetary inflation hurting them as much as everyone else.Or am I being a wee bittie cynical now! :rolleyes:

Link to comment
Share on other sites

Now, when I see that chart of the FTSE, Feed, I realize just how close the chart was to breaking downwards out of the channel.

Extraordinary times call for extraordinary measures and the heavy armaments were brought to bear on the market for a bullish upthrust.Some extra time has been bought...but as you say, it's still in bullmode until it isn't.

 

 

See how close USD holders have come to being made whole again in London.Only the total morons that bought right at the top are in a losing position as buy and hold bagholder.

post-568-1109763096_thumb.jpg

Link to comment
Share on other sites

Greenspan expected to talk hawkish to US Congress today, reminding us that the legendary 'one percent forever' blowout rate sale is over ... and even the current 2.5% is a giveaway.

 

The hawkish talk is supporting the dollar. Doubt the effect will last long, though. Real interest rate on the dollar is negative, and will remain so for the foreseeable future.

 

If he REALLY gets hawkish and raises half a point on March 22nd, stocks will be crushed into fine brown powder. :lol:

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • ×
    • Create New...