Euro/USD hits one month high

Euro/USD jumped to its highest level since September 17th trading at 1.3092 in Asia this morning. The Euro has increased more than 100 basis points over the last 24 hours after the rating agency Moody’s affirmed its investment grade sovereign rating of Baa3 on Spain, giving investors hope that Madrid shall be able to handle its huge public debt. Moody’s stressed the European Central Bank’s (ECB) willingness to purchase Spanish government bonds and Spain’s willingness to undertake austerity measures.
Some analysts saw, however, the strong increase of the Euro over the last couple of days as merely short covering. Many market players remain cautious of unwinding their bearish stand on the single currency, given the uncertain prospects of how to resolve the euro zone debt crisis anytime soon. A test on how high Euro/USD shall reach in the short term perspective is whether the Euro will push through the strong technical resistance level on 1.3170 which it reached in September.
Stock markets in USA, Europe and Asia had their best days in months helped by stronger than expected quarterly results from major US-companies. Dow Jones added 0,95 % while the technology index, Nasdaq, jumped 1,21 percent. Intel, Caterpillar, United Technology, American express and Boeing all added close to 2 percent and more. Growing risk appetite among investors weighed in on dollar index, measured against a basket of six key currencies, which fell to 10 days low boosting dollar based commodities and commodity linked currencies as the Australian and Canadian dollar and the Norwegian krones (NOK).
Japanese stocks continued to gain after last week’s sell out which took Nikkei to a two and half month low. Investors seem to realize that the stocks have fallen, too, fast and see present prices as a buying opportunity. Precious metals as gold and silver have rebounded from early week’s losses. Gold is at 1753 and silver 33.10. NYMEX, New York crude, continues up and reached above USD 92a barrel. Brent crude is losing momentum from its high yesterday and trades at 114.
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16 October 2012| UWCFX Daily Market Video Reviews

Citi results change market sentiment

What a difference a day in the market might make. The trading week started on a pessimistic note and worry over expected quarterly results from the US banking heavy weights. When Citi group, which was first out, delivered strong results during the early New York session, the sentiment changed. J P Morgan and Bank of America which are next in line jumped 3,5 % on expectations that they will follow suit. Both Dow Jones (plus 0,72 percent) and Nasdaq (0,66) climbed and so did the MSCI index for the South East Asian Pacific (up 0,5 %) followed by Nikkei (0,9 % gain) in Japan and the Shanghai composite.
The Euro which has been under a lot of pressure during the last days, seemed for a moment to have forgotten debt problems in Greece and Spain. The Euro added 70 basis points towards the USD and trades at 1.2962 USD/JPY is falling to 78,89 indicating that a stronger risk appetite is back among investors. Greece’s benchmark 10 year bond yield fell to 17,51 percent, which is the lowest level seen since August 2011. This as investors scaled back bets on Greece leaving the Euro.
Also commodities rose after lackluster trading yesterday. Copper is up followed by precious metals. Gold is at 1737 after hitting its lowest level in over one month at 1728 on Monday. Silver is trading at 32,85.
Brent futures is holding steady above USD 115 a barrel on supply concerns after the European Union slapped more sanctions on Iran. Ample supplies and healthy inventory in the United States capped further gains. NYMEX, New York crude, was stabile at USD 91 level. EU imposed further sanctions on Iran’s banking, shipping and industrial sectors in an effort to force Tehran to halt its disputed nuclear program. The measures came days after Iran said it would negotiate on halting higher-grade uranium enrichment if they were given fuel for a research reactor. Iran maintains that its nuclear project has only peaceful energy purposes.
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15 October 2012| UWCFX Daily Market Video Reviews

Shares fall on earnings worry

Stock prices fell in Europe and United States last week on worries on corporate earnings. Stocks also fell in early morning trading in Asia on growth concerns ahead of the third-quarter corporate earnings session. The Euro slipped against the USD on lack of clarity over Spain’s bailout prospects. EURO/USD trade at 1.2901. The dollar index against a curve of six major currencies is up 0,3%. The stronger dollar is undermining dollar denominated commodities. Copper is falling to its lowest level in two weeks. Brent crude is down half a dollar to 114. Precious metals are continuing its fall from last week. Gold drops 20 dollar an ounce trading at 1643. Silver is at 33,20.
European shares are expected to open lower. Futures for the US are flat compared with Friday. The MSCI-index for the South East Asian Pacific fell 0,3 percent. The Japanese Nikkei added 0, 4 %. The forecast for third quarter growth in China is expected to be 7,4% in line with expectations. Some major Chinese firms have issued profit warnings which did not help encourage market sentiments. A decline in Chinese consumer and producer prices in September left scope for policy easing for Chinese authorities to underpin growth.
The US markets wrapped up their worst week in four months led lower by financial shares. More financial institutions are going to report earnings over the next days including Citigroup, Goldman Sachs and the Bank of America. This amid concerns about their shrinking profit margins.
The International Monetary Fund half annual meeting ended in Tokyo over the week end. Federal Reserve’s President Bernanke came under strong pressure from ministers from developing countries. Both the Brazilian, Chinese and to a minor degree the Russian minister of Finance were critical to the world wide effects of monetary easing which put strains on the exports from the developing countries and undermine their currencies by seeing a free flow of cheap dollar entering their markets from the United States. Bernanke countered by stressing that US growth is the very engine for the whole world economy.
Stocks, commodities and currencies are expected to come under heavy downward pressure during the day.

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WEBSITE IS NOW AVAILABLE IN MALAY

United World Capital (“UWCFX”) has good news for all Malay-speaking clients: our website has been launched in Malay.
Clients’ comfort is our top priority, which is why we make all possible efforts in order to make your trading experience with our company as convenient as possible. Our goal is to make your business easy and profitable. Our nearest plans include launch of the Client Cabinet in Malay, as well as translation of both – website and Client Cabinet – to Czech, Chinese, Arabic, Polish and Swedish.

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