Category Archives: USA Finances

Optimism in USA infected the Asian markets

USA financesThe optimism, which covered the United States after the publication of the GDP data for the largest economy in the world for the second quarter infect Asian stock markets on Thursday. The Chinese benchmark Shanghai Composite jumped 1.8%, while Hong Kong’s Hang Seng rose 0.9%. The growth came after the official China PMI index unexpectedly rose to 50.3 points in July to 50.1 points in June. All values ‚Äč‚Äčabove 50 indicate improvement in business conditions. The official government data differ from earlier results by HSBC, which showed a drop to 47.7 points, reaching 11-month low.
“The growth in the official China PMI index did not come out of the blue. Official data give greater weight to heavy industry where there was a twist in the last few months”, commented in a note to clients of Capital Economics. “The demand for investment remains strong, as the government encouraged industrialization and urbanization”, said Sue Shaosha on Wednesday, the head of the National Commission for Development and Reform Commission, said in a statement on the website of the department. “We are confident that we have the conditions and ability to achieve projected annual growth of around 7.5%”, said he.

Fed keeps watch over the banks influence on the raw materials trade

FEDThe development of Wall Street banks as oil traders, natural gas, coal and industrial metals is under threat as the US Federal Reserve has begun to reconsider a number of marketing authorizations with physical materials issued in the last decade. In recent weeks, senior Fed officials have discussed with the managers of the banks whether to prohibit credit institutions to hold assets in physical commodities, sources said the British edition, familiar with things. Measures could put pressure on profitable niche banks like Barclays, Goldman Sachs, JPMorgan Chase and Morgan Stanley. Just 3 years ago JPMorgan as spend 1.6 billion USD to acquire units for oil, metals and coal in the world of RBS Sempra Commodities. The US regulation allows banks to trade derivatives on commodities such as futures contracts. In 2003, the Fed expanded those rights, giving permission for Citigroup’s ownership of natural oil, gas and grains as a substitute for derivative instruments. By 2008, these permits were issued to several banks and that they are subject to review at the moment.
“The Fed regularly monitor the actions of observed commodities companies and review its decision of 2003 that some activities to complement the raw financial measures and are therefore eligible for the companies that own banks”, said the US central bank.

Wall Street closed with slight increases

Wall Street indexThe US stocks closed with slight increases sluggish session at the start of the week amid mixed earnings reports and weaker than expected sales of existing homes. The index of 30 leading US companies Dow Jones is practically unchanged at a level of 15,546 points, the broader S&P 500 rose 0.2% to 1,696 points, while the technology-oriented Nasdaq rose 0.4% to 3 600 points.
“By next week there will be news from the Fed and the market will be driven by the season of the reports and news from Congress. Enduring auctions market can maintain current levels. To go up, you will need a good foundation”, said Brian Battle, vice president of trading at Performance Trust Capital Partners.
The gold reached a peak of nearly one year, breaking key resistance level of 1,322 USD per ounce, after concerns that the Federal Reserve will reduce monetary stimulus fade. The shares of gold mining companies rose, led by Kinross Gold, Yamana and Iamgold. The shares of the components of the Dow Jones McDonald’s fell 2.7% after the fast-food chain reported earnings and revenue disappointed after weak sales in Europe and Asia.

US indexes erased only part of yesterday’s losses

USA Wall StreetThe major US indexes registered strong increases in today’s session, erasing some of yesterday’s losses, after a series of better than expected economic reports choked fears of credit crunch in China. Further relief filed comments yesterday by representatives of the US Federal Reserve that the impact on the stock markets of a possible shrinking of the stimulus programs of the central bank may not be as hard as you thought.
“Overall, people are still trying to assess the bigger picture in terms of the Fed and the moment will start shrinking”, said Joe Bell, senior analyst for the stock market in Schaeffer’s Investment Research. “In the long term, we think the market will take up, but we are in a transitional period in which there is a lot of uncertainty”, says Bell. “Whenever high growing and cyclical stocks start to lead, we think this is a good sign for the overall market. Even in an environment of rising interest cyclical handle a little better”, he added.
Dow Jones rose 0.69% to 14 760.31 points, led by shares of Verizon, which have added 2.7% to its value to 50.44 USD and that of Bank of America, increased by 3% to 12.67 USD.

Wall Street indexes lost about 1%

USA financesThe US stocks wiped out most of the losses during the session, after the US government securities rose in volatile trade, cyclical sectors rose, as some leaders of the Federal Reserve eased fears of termination of monetary stimulus.
“This is quite a surprising twist, but will have to get used to the volatility by the end of summer”, said Art Hogan, managing director at Lazard Capital Markets. The yields on 10-year government bonds fell to 2.53% after being reached 2.66%. The index of 30 leading US companies Dow Jones fell 0.9% to 14,660 points, the broader S&P 500 fell 1.2% to 1,573 points, while the technology-oriented Nasdaq is down 1.1% to 3,321 points. Dow and S&P 500 are respectively about 6.5% and 7.5% below its May highs. The president of the Dallas Fed Richard Fisher said he supports limiting monetary stimulus, but stressed that this should be done gradually, and the head of the branch Miniapolis Narayana Kocherlakota said that markets mistakenly believe that the Fed is going to tighten monetary policy.
By the Bank for International Settlements does urged central banks to end of the wide monetary policies. The stocks fell sharply at the beginning of the session because of ongoing concerns about the reduction of monetary stimulus from the Fed and the fears associated with reduced bank liquidity in China.

Wall Street started the week with increases

Deal wall streetThe US stocks ended the first session with increases for the week as investors weighed weaker than expected economic data against potentially easing by the Federal Reserve.
“There are many signs of an economic slowdown, but do not know how this has affected the markets, since the actions of the Fed distorts everything”, said Joe Saluzzo from Themis Trading. “The investors need to be careful – a recovery in the market is not based on a solid foundation”. The index of 30 leading U.S. companies Dow Jones Industrial Average (DJIA) rose 0.9% to 15,253 points. S&P 500 rose 0.6% to 1,640 points, while the NASDAQ climbed 0.3% to 3,465 points.
The economic news of the day showed that manufacturing activity in the country unexpectedly shrank to 49 points in May, this is the first drop of 6 months after new orders fell, and demand for exported goods was less, according to the compilation by the Institute for Supply Management’s index. The expectations were for keeping the reported 50.7 points in April. The construction spending in April rose by 0.4% year on year by 861 billion dollars, said the U.S. Department of Commerce. Preliminary estimates, however, were for growth of 0.8%.

Wall Street started the week with small decreases

WallStreet indexesThe US stocks started the week with small decreases after the session reached new highs and amid fears that the Federal Reserve may reduce its program of buying bonds. The index of 30 representative U.S. companies Dow Jones Industrial Average lost 0.1% to 15,336 points. With so also decreased the index of the large companies S&P 500 (up to 1666 points) and technology-oriented Nasdaq (up to 3496 points). The broad Russell 2000 index surpassed 1,000 points for the first time in its history, nearly four months after it passed 900 points.
With no major economic news of the day investors focused on whether and when the Fed will start to decrease purchases of bonds. Topic caused a sensation last week after comments by John Williams and Charles Plosar – two of the leaders of the Fed who are against ultra expansionary monetary policy.
The investors will closely follow the report of the Head of the Federal Reserve Ben Bernanke before the Senate committee on Wednesday that can illuminate the central bank plans the program for the purchase of bonds. Earlier in the day the head of the branch of the Dallas Fed’s Richard Fisher, who is also a longtime opponent of bond purchases, said that the Fed’s program has supported the shares, but it is unclear whether it has done enough for the economy.
Yahoo shares rose 0.2% after the Internet company announced it would acquire Tumblr blog for 1.1 billion USD in cash. The deal is the largest purchase among social sites as Facebook Instagram bought last year for 1 billion USD.

S&P 500 reached new high

US investorThe major US indexes reported moderate increases in the beginning of the session, after hedge fund manager David Tepper said he had set “definitely optimistic” about the shares. Enthusiasm, however, is weak as investors weigh other risks that could delay induced by the central uplift in the stock markets. Dow Jones advanced by 0.29% to 15 135.17 points, with three-quarters of the companies in the index of blue chips are in positive territory, led by Bank of America, whose shares rose 1.9% to 13.22 USD and those of JPMorgan Chase, adding 1.3% to its value to 50.33 USD.
The Standard & Poor’s 500 reached a new highest level in history, gaining 0.5% to 1 642.01 points, and his 10 key subsectors reported growth, led by companies in the energy and finance. Nasdaq Composite increased by 0.42 percent to 3 453.21 points.
The import prices in USA fell by 0.5% in March, the expectations of analysts, while for the export decline was 0.7%, reported by the Bureau of Labor Statistics, US Department of Labor.

US indices started the week with slight decreases

Wall Street indexesThe major US indexes suffered small declines in the beginning of the session, after macroeconomic releases failed to impress investors after another record performance for all times of Dow Jones and Standard & Poor’s 500, reached last week. Dow Jones retreated by 0.26% to 15 079.55 points, led by shares of DuPont, which lost 1.25% of its value to 54.76 dollars and that of Alcoa, fell by 1% to 8.61 dollars . Only 2 companies in the index of blue chips and 12 near the S & P 500 will consider the results for the first quarter this week
Standard & Poor’s 500 erased 0.18% to 1 630.68 points, with all its key sub-indices are red territory, led by utility companies and the manufacture of materials. Nasdaq Composite fell 0.08% to 3 433.68 points.
So far 90% of companies in the Standard & Poor’s 500 has published its quarterly results, 67% of them have exceeded expectations for earnings, and 24% were disappointed analysts, according to Reuters data. If all other companies in the index published quarterly results justifying estimates the average profit of the companies in the index will grow by 5.3% compared to the first quarter of 2012.
The revenue data remain 1% below forecasts, while only 46% of companies have exceeded their forecasts for sales.

Bernanke warned about the risk of shadow banking

Ben BernankeThe chairman of the US Federal Reserve Chairman Ben Bernanke said that the shadow banking system continues to pose a threat to financial stability and markets, including credit institutions raise capital, perhaps not yet ready to deal with a large bankruptcy. The annual conference of the division of the Chicago Fed on the structure and competitiveness of the USA in a speech describing the role of the Fed in monitoring the stability of the banking system, Bernanke said that the central monitor asset markets carefully for signs of excessive risk-taking.
“Although the shadow banking sector today is smaller than before the crisis, regulators and the private sector should engage with remaining weaknesses”, he said.
The credit crash of 2007-2009 and the collapse of investment bank Lehman Brothers exposed the group of companies and finance companies, known as the shady banks that were poorly regulated, but there are risks. The board oversight of financial stability, which is currently headed by the US Treasury Jack Lew, last month also warned of the possibility of a transfer to the shadow banking system. Bernanke also said that further action is needed to ensure that the market for refinancing the banks from which they obtain the money they need throughout the day, you will be able to cope with the consequences of a failure of a major credit or intermediary institution. He added that the withdrawal of funds from the capital markets also remains a possibility.