Today the ECB will announce results of meeting, no surprises are expected

Stock markets are balancing between economic signals. Paul Krugman says that the USA and Europe have good chances to finish crisis. Today in the spotlight is the decision of European Central Bank on an interest rate.
The Asian Pacific region today at the beginning of trading session shows positive dynamics – indicator of Japan adds 1,3%, Nikkei is 225, other markets of Asia which are opened - growing on the average on a 0,5%, basically due to favorable yesterday's trading session in the USA and good macroeconomic signals from America.
The American stock market grew by 0,4% on an index S&P500 and was closed on a level of 1450 points. Two positive signals are data on employment from ADP which appeared better than expectations and data on the ASM indicator in the non-productive sphere – also better than experts expected. The future contract on S&P500 index now also is in a green zone, it adds about 0,4%. Minor macro-signals also didn't pump up yesterday – demand for mortgage lending is at a maximum level in 3 last years in the USA, it naturally also promotes revival in the real estate market. At least, those companies which are engaged in this market and mortgage lending were yesterday one of the best during trading session in the USA.
However there are enough pessimists in the market and they discuss more long-term idea which will start to influence markets shortly - it is certainly the fiscal rock which threatens America with new recession. In general the ratio of positive and negative signals, now about 1:3, meaning 1 signal positive – 3 signals negative, thus it is natural if there is a positive signal – many speculators start to disperse the market. Though, in principle, it moves within diapason which it entered at the beginning of September.
One or two changes towards one or other side are not a tendency to understand that now occurs in the world, recession or economic growth. To understand anything, it is necessary that this tendency last at least 3-4 months.
The future contracts on oil are now correcting, and grow for 0,2% after yesterday's fall almost for 3%.

Follow up with or daily market reviews on http://www.uwcfx.com/en/market-reviews.html

Weekly winners of the Demo Championship

UWC is pleased to announce the following weekly winners of the Forex Demo Championship
for the week 24 - 28 September:

1st Prize - $1000 Bonus 
goes to: hasan acc. 439470 

2nd Prize - $800 Bonus
goes to: silver2012 acc. 438753 

3rd Prize - $500 Bonus
goes to: VitChua acc. 428764 

Most Active Trader Award - $100 Bonus
goes to: farhad acc. 433571 

Congratulations to all winners!
We would like to take this opportunity to thank all participants and to warmly invite all of our clients to take part in our weekly Forex Demo Championship
Remember the Earlier You Join the Contest- the Bigger the Chance You Have of Winning!


Register Now!

Investors are waiting for signals to choose final direction in the markets

The main fears and the main negative factors were coming to us from Europe. Mainly it was rumors around Spain. Though the prime minister of Spain told that the financial help after all will not be required to the country.
In the Asian Pacific region today China and South Korea are closed. China today is celebrating its National Day, and naturally markets are closed, but we are still receiving macroeconomic data. In China index PMI for the non-productive sphere decreased to 53,7 points in relation to the previous value of 56,3 points. It is the next signal of slowdown of the Chinese economy, especially of the sector of services - the sector by which China is guided first of all.
The Asian bank reduces forecasts on growth rates of the Asian region except for Japan, now growth according to ADB should make 6,1 % in 2012. We will remind that it is already the third decrease this year.
It is necessary to note also negative data which come to us from Australia; it is a data on sales of new houses. As well it is a decrease in an index of activity in a services sector and expansion of deficiency of trade. All this reflects the Australian dollar; it is on the minimum values against US dollar. Currency pair EUR/USD is on a level 1.2902, here are no any serious changes at present moment.

Follow up with or daily market reviews on http://www.uwcfx.com/en/market-reviews.html

Watch our today’s market video review

GOLD OUTSHINES IN POSITIVE MARKET

After a weak start in October, markets bounced back yesterday helped by a surprising expansion in US factory activity, and what was regarded as a satisfactory stress test of Spanish banks. Dow Jones gained 0,58 % while Nasdaq closed down 0.1 percent. Wall Street closed the third quarter as the best since 2010. The MSCI-index for Asia-Pacific shares were up 0,3 percent with similar positive developments in South Korea and Australia. In Japan Nikkei index rose 0,3 % after reaching a three weeks low on Monday.
The Euro/USD was fluctuating strongly during whole yesterday, dipping down below 1.28 to recover to 1.2920 before falling back. The most traded currency pair is stronger in early Asian trading at 1.2914. USD/JPY is weaker at 78.07. The Australian dollar and South Korean currency also traded up by a US court decision which permits Samsung to sell its Galaxy iPhone in the US after being banned last month.
The European debt crisis remains investors focus. There is still some confusion with regards to when Spain eventually will ask for a bail-out. The German government shall according to well informed sources have asked Spain to wait before asking for a sovereign bail-out not only involving its banks. Unemployment figures released for the Euro-zone yesterday painted a very grim picture with 11,4 % percent out of work and with unemployment rates on 25 % both in Greece and Spain.
These numbers did, however, not have any clear negative impact on the Euro. Greece is this week going to present a new austerity budget for the Parliament entering its sixth year in recession. The austerity measures are disputed not only expressed through mass demonstrations in Europe. The US economic Nobel Prize laureate, Paul Krugman, accused the European governments for “austerity madness” clinging to an austerity culture which could only lead Europe into deeper misery.
Stronger stock markets also helped commodities. Brent crude is at 112,20, and the strong underlying upward trend in precious metals continue. Gold trades at 1778 and Silver close to 35, the highest levels seen in 10 months. Copper and nickel are also up.


Follow up with or daily market reviews on http://www.uwcfx.com/en/market-reviews.html 

Watch our today’s market video review.

USD and Yen back in favor

The Euro rally which saw the common European currency reach a 1,3165 high, seems to have come to a definite halt this morning with Euro/USD trading at 1.2820. Manufacturing data from China and Japan weighed in on market sentiment after a weekend with mass demonstrations against austerity measures in Greece, Spain, Portugal and France. Uncertainty about Spain’s bailout saw MSCI index of Asia-Pacific fall 0,4 percent after similar drops on Dow Jones and Nasdaq in New York on Friday.   

Apple Inc (AAPL O) was the big mover on news it sold out its new iPhone 5 Smartphone. Apple announced more than five million smart phones sold in the three days since it hit stores. Apple fell, however, 2,1 percent to  USD 685 on analysts concern that the company was unable to produce the phone fast enough to meet demand. Japan’s Nikkei fell to its lowest level in three weeks after profit warnings from some of the Japanese heavy weights.

Commodities led by Nickel and Copper are down on a stronger dollar. Gold (1765) and silver (43,28) also drop along with oil. Brent crude is down one dollar after reaching USD 112,50 on Friday. The Euro lost its momentum against the USD after a disappointing survey on German business sentiment.  Spain and Greece further undermined the strength of the euro zone common currency. The German business sentiment is at its lowest level since early 2010. 

The weak sentiment in the European markets is playing into the hands of traditional “safe haven” currencies as USD and JPY. The European Central Bank, ECB, is meeting again this week.  It is expected that the interest rate would be kept at the same level and more details are going to be revealed on the bon buying scheme the ECB presented in August. 

Follow up with our daily market reviews on http://www.uwcfx.com/en/market-reviews.html