2011

The single currency could find the power to get over 1.30 versus the greenback because of the flash release of Dec EU manufacturing PMI index which has come at 46.9 while it has been expected to be 46.2 from 46.4 in November and also the flash reading of Dec EU Services PMI index which rose up to 48.3 from 47.5 in November while it was expected to decline further in the shrinking territory below 50 to 47.1 but the single currency has eased back below 1.30 as it is still finding difficulty to have a place above it after breaking it  yesterday as the uncertainty is still remaining about the crisis outlook as the market participants have not found out what can make them sure about that the worst of the debt crisis is over while the signs of the recession are still emerging in the Euro area The single currency has reached  yesterday 1.2945 versus the greenback by a new...

The Single currency is still under pressure versus the greenback after the ECB's interest rate decision of cutting the interest rate by 0.25% to be at its previous all times low at 1% again as it was before April meeting. The ECB kept its role as funds provider again with no announcement about new buying bonds plans directly which have been aimed by the markets which have seen offering new 3 years loans or lowering the EU reserve banking rate of deposits at its central banks by 50% to be 1% of its assets instead of 2% from the beginning of next year or even cutting the interest rate meanwhile are not enough and can not replace buying bonds directly by the ECB to restore confidence in the EU bonds markets to fall the risk appetite strongly during the ECB's president press conference which focused on the ECB's offering of cheaper money with no reference to direct interventions injecting funds in...

European stocks fell as they corrected after the largest monthly growth since July 2009, as some investors again started to reluctantly buy stocks before Euro zone leaders had a chance to explain how they will pay for the expansion of the region’s rescue fund. Futures on American stock indexes and Asian shares also fell. Shares of HSBC Holdings Plc and BHP Billiton Ltd led the drop among shares of companies in the banking and commodity sectors. The Stoxx Europe 600 Index dropped 1.1% to 246.18 as of 10:32AM in London. The index closed with monthly growth of 8.8%, which is not bad considering it was the highest growth in over two years. On October 28 last week, the European stock index underwent a 0.2% correction after 3.6% growth the previous day following Euro zone leaders announcing that they intended to increase the EFSF in an attempt to put a stop to the region’s debt crisis. In total, the index shot...

Durable goods orders might have fallen in September after the drop in orders from aircraft manufacturers neutralized the successes of such companies as Caterpillar Inc (CAT), which show increasing production thanks to their expansions to overseas markets. According to the estimates of 79 economists polled by Bloomberg, orders for equipment with three years of service life or more fell 1% after decreasing 0.1% in August. According to the same poll, orders for goods excluding aircraft (so-called business investment orders) rose 0.4%. The growth in developing countries’ economies and the 14% drop in the dollar’s value since June 2010 is accelerating American exports to record-high levels. It is also being helped by companies such as Caterpillar to defend itself from a prolonged drop in US housing construction, a major deterrent to the emerging economic recovery. The second report coming out today from the Department of Commerce might show that new homes sales did not significantly fluctuate from the six-month low. According...

The Euro lost its earlier gains from a five-day upward trend against the dollar and German 10-year bonds rose while the majority of European stocks fell ahead of tomorrow’s EU summit. Industrial metals turned out to be the leaders in growth among trading instruments. The 17-nation unified currency fell 0.2% to $1.3905 as of 8:11AM in London. Yields on 10-year German bonds dropped 2 basis points to 2.10%. Approximately two stocks fell for each stock that rose on the Stoxx Europe 600 Index; the index as a whole lost 0.2%. Futures on the Standard & Poor’s 500 Index fell 0.2%, while copper rose 1.1%, continuing its biggest two-week growth trend since 2009. Rice rose to its highest level in over a month. DT Trading analysts think that the world-wide growth in demand for products from Asian auto manufacturers is the main driving factor behind the growth in commodities prices, in spite of the market’s overall incredulity toward equity instruments and...

Wednesday was another day of overall positives on the markets: at the end of the day, the EUR/USD pair fixed above 1.3800, adding more than 1.3%. The British pound rose to 1.5750 on the GBP/USD pair despite the country’s unemployment report showing the rate had increased to 8.1% (the previous figure was 7.9%); the average market forecast was 8.0%. All stock markets ended the day in the green zone, reacting to the positivity coming from Europe: yesterday, European Commission President Jose Manuel Barroso presented a plan to recapitalize European banks in order to protect Europe’s banking system from possible repercussions related to the debt crisis in the Euro zone. Also, the second vote on expanding the EFSF in the Slovakian parliament will likely take place on Friday, October 14. Members of the country’s ruling coalition have already reached an agreement with opposition leader Robert Fico on passing the amendments. Europe has recently been displaying a more coherent unified position to...

Today, immediately after American and European stocks jumped up in response to a promise from the German and French leaders to resolve the debt crisis in Europe, Asian stock indexes also rose, pushing the regional MSCI Asia Pacific Index to a high for the fourth day in a row. Shares of Rio Tinto Group, the second-largest mining company in the world by sales volume, rose 1.6% in Sydney, while shares of Korea Zinc rose 6.5% in trading in Seoul. Mitsubishi Corp, which receives almost half of its income (43%) from trading in commodities, saw its shares rise 2.9% in Tokyo at the same time that shares of Sony Corp, Japan’s largest exporter of consumer electronics, shot up 5.2%. The Japanese markets are resuming their trading today after being closed for a holiday on Monday. The MSCI Asia Pacific Index rose 1.1% to reach 114.94 by 9:25AM in Tokyo, thanks to growth in exporters’ shares and shares of mining companies after prices on...

In the first half of the day on Tuesday, the dollar continued its advance on its major competitors. Investor uncertainty regarding the situation in the Euro zone due to the constant lack of any kind of concrete decisions on issuing another tranche of financial aid to Greece has taken its toll: the EUR/USD pair dropped to 1.3150 and the British pound fell to 1.5350 in the GBP/USD pair. The situation began to change after 6:00PM (Moscow Time), when Federal Reserve Chairman Ben Bernanke made his address before the US Congress’s Joint Economic Committee. In the address, Bernanke announced that “the Fed is ready to take additional measures for stimulating the economy if necessary,” and also signaled that, according to the Fed’s calculations, inflation in the US has stabilized. At the same time, he cautioned Congressmen against a policy of excess savings, again pointing to the poor situation on the labor market.  Market players assessed his words as a hint that...

Today, Steve Jobs passed away at age 56 after a six-year battle with a rare form of cancer. He dedicated what was left of his life and health to that which he will be remembered for forever. “Steve’s brilliancy, passion, and energy were the source of countless innovations which enriched and improved each of our lives,” said a statement released by Apple. “The world is immeasurably better because of Steve.” The entire DT Trading Limited team expresses their deep sympathies to the friends and family of the genius inventor and one of the world’s greatest managers. When the company reported the death of its founder and inspirer, the markets in New York were already closed for the day. Yesterday, shares of American companies rose in unison for the first time in a long time: the Standard & Poor’s 500 Index demonstrated the largest two-day growth in over a month. The economic data that came out on Wednesday contributed to such high...

Yesterday, it was reported that Finland will receive the collateral it demanded as a condition of providing aid to Greece. The Finnish government was able to secure the collateral, but it won’t protect the country’s taxpayers from having to pitch in for financing a second wave of the crisis. “The value of the deal is in the eye of the beholder,” said Ville Pernaa, director of the Parliamentarianism at the University of Turku. “But this isn’t really what Finland sought to begin with.” The issue is that the government’s refusal to develop a plan for Finland to assist Greece that was more advantageous to the Finnish electorate could inflame talks between skeptics within the country that hold the third biggest bloc in parliament. The “True Finns” party, led by Timo Soini, which is directly encouraging Greece to default and to admit that the Euro is a failed experiment, is the second most popular party in the country after the National Coalition...