US Stock Futures Down As Investors Await Economic Data
US stock futures are lower, this morning as investors awaited economic data. Futures for the Dow Jones Industrial Average dropped 10 points to 11,029.00, while those for the S&P 500 lost 0.60 point to 1,185.90. Futures for the Nasdaq 100 index lost 1.50 points to 2,144.00.
US stock markets closed lower yesterday, with the Dow losing 0.36%.
Economic data on Case-Shiller home prices for September and the Chicago PMI index for November business activity are due at 9:00 a.m. and 9:45 a.m. ET, respectively. The Conference Board is all set to release November consumer-confidence data at 10 a.m. ET.
Barnes & Noble (NYSE: BKS) is expected to report FQ2 loss of $0.08 per share. OmniVision Technologies Inc (NASDAQ: OVTI) is likely to post its earnings at $0.52 per share in the fiscal second quarter.
Positive sentiments ruled the European markets today. While STOXX Europe 600 Index has advanced 0.53%, London's FTSE 100 Index moved up 0.41%.
Asian markets ended in the negative territory, with Japan's Nikkei Stock Average dropping 1.87%, Australia's S&P/ASX 200 moving down 0.64% and China's Shanghai Composite dipping 1.62%.
The euro dropped about 0.83% against the US dollar, while the Japanese yen rose about 0.37% against the greenback.
Crude oil futures fell around 0.45%, while the gold futures gained about 0.69%.
Monday, November 29, 2010
FOREX-Euro drops to 2-month low vs dollar
The euro slumped broadly, falling to two month lows against the dollar and Swiss franc on Monday as a rescue package for Ireland failed to soothe worries other debt-stricken euro zone members may also seek bailouts.
Analysts expect further losses in the euro given uncertainty surrounding the fiscal outlook of the region's peripheral countries. The next key target is $1.30 after the euro fell below the 200-day moving average around $1.3130.
The euro was down 6.3 percent on the month and on pace for its worst monthly performance since May when Greece received a 110 billion euro ($143.9 bln) bailout to avoid a debt default.
"Investors are concerned that European policymakers are putting out brush-fires rather than solving the issue at hand," said Paresh Upadhyaya, head of Americas G10 FX Strategy at Bank of America Merrill Lynch in New York.
"Investors are rightly concerned about contagion. This bailout may resolve Ireland's problems but it doesn't address that of Portugal and Spain."
European Union finance ministers over the weekend endorsed an 85 billion euro rescue package for Dublin and approved outlines of a permanent crisis-resolution system that could make private bondholders share the burden of restructuring sovereign debt after 2013. [ID:nLDE6AR0MC]
Sentiment remained fragile, however, with a sale of Italian bonds meeting lukewarm demand and highlighting investors' unease about euro-zone debt. [ID:nTAR001551]
Many analysts say markets are still likely to turn to Portugal and Spain, seen as the euro zone's next weakest links. [ID:nWEA2085]
The euro fell to $1.3064 EUR=EBS, its lowest since September 21 was last at $1.3102, down 1.1 percent on the day. Investors took out option barriers at $1.31 and are eyeing similar barriers at $1.3050.
BREAK OF 200-DAY MOVING AVERAGE SIGNIFICANT
Traders said the euro's break below the 200-day moving average was significant as this suggested a further slide. The last two occasions that the euro fell below its 200-day moving average, the currency fell around 18 percent and 16 percent respectively to its lows in November 2008 and June 2010
Euro/dollar implied volatilities extended a recent rise, reflecting nervousness about the single currency. One-month volatilities EUR1MO= spiked to 15.19 percent, the highest since at least June, from 13.85 on Friday.
The one-month 25-delta risk reversals, a gauge of currency sentiment, traded as low as -2.775 vols EUR1MRR=GFI for euro puts versus a close of -2.3 on Friday.
The cost of insuring Portuguese and Spanish debt against default rose to a record high on Monday. [ID:nLDE6AS114]
Many traders said the European Financial Stability Facility, a joint EU-International Monetary Fund reserve created in May, may not have enough funds to support Spain if it decides to seek assistance. [ID:nLDE6AR09R]
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Euro zone crisis timeline: link.reuters.com/nyx95q Multimedia coverage: r.reuters.com/hus75h Graphic on sovereign debt woes: r.reuters.com/zem66q
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Ireland said the emergency loans would run for an average of 7.5 years, with an interest rate of 6 percent.
Another source of uncertainty is a lack of details on a Franco-German proposal to make private bondholders share the burden of losses on sovereign debt restructuring.
"That suggests the broader fiscal backdrop in the euro zone could remain troubled for longer, particularly if other, larger countries also require bailout programs, and as well raises troubling questions about moral hazard," wrote Bob Lynch, currency strategist at HSBC in New York.
Analysts said the market would be watching whether European Central Bank policymakers, meeting on Thursday, would remove some of the emergency measures put in place earlier this year.
The euro's losses against the dollar pushed it to a two-month trough against the Swiss franc at 1.3103 EURCHF=.
The dollar also hit a two-month high against the yen at 84.41 yen JPY= and was last at 84.33, up 0.3 percent
The euro slumped broadly, falling to two month lows against the dollar and Swiss franc on Monday as a rescue package for Ireland failed to soothe worries other debt-stricken euro zone members may also seek bailouts.
Analysts expect further losses in the euro given uncertainty surrounding the fiscal outlook of the region's peripheral countries. The next key target is $1.30 after the euro fell below the 200-day moving average around $1.3130.
The euro was down 6.3 percent on the month and on pace for its worst monthly performance since May when Greece received a 110 billion euro ($143.9 bln) bailout to avoid a debt default.
"Investors are concerned that European policymakers are putting out brush-fires rather than solving the issue at hand," said Paresh Upadhyaya, head of Americas G10 FX Strategy at Bank of America Merrill Lynch in New York.
"Investors are rightly concerned about contagion. This bailout may resolve Ireland's problems but it doesn't address that of Portugal and Spain."
European Union finance ministers over the weekend endorsed an 85 billion euro rescue package for Dublin and approved outlines of a permanent crisis-resolution system that could make private bondholders share the burden of restructuring sovereign debt after 2013. [ID:nLDE6AR0MC]
Sentiment remained fragile, however, with a sale of Italian bonds meeting lukewarm demand and highlighting investors' unease about euro-zone debt. [ID:nTAR001551]
Many analysts say markets are still likely to turn to Portugal and Spain, seen as the euro zone's next weakest links. [ID:nWEA2085]
The euro fell to $1.3064 EUR=EBS, its lowest since September 21 was last at $1.3102, down 1.1 percent on the day. Investors took out option barriers at $1.31 and are eyeing similar barriers at $1.3050.
BREAK OF 200-DAY MOVING AVERAGE SIGNIFICANT
Traders said the euro's break below the 200-day moving average was significant as this suggested a further slide. The last two occasions that the euro fell below its 200-day moving average, the currency fell around 18 percent and 16 percent respectively to its lows in November 2008 and June 2010
Euro/dollar implied volatilities extended a recent rise, reflecting nervousness about the single currency. One-month volatilities EUR1MO= spiked to 15.19 percent, the highest since at least June, from 13.85 on Friday.
The one-month 25-delta risk reversals, a gauge of currency sentiment, traded as low as -2.775 vols EUR1MRR=GFI for euro puts versus a close of -2.3 on Friday.
The cost of insuring Portuguese and Spanish debt against default rose to a record high on Monday. [ID:nLDE6AS114]
Many traders said the European Financial Stability Facility, a joint EU-International Monetary Fund reserve created in May, may not have enough funds to support Spain if it decides to seek assistance. [ID:nLDE6AR09R]
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Euro zone crisis timeline: link.reuters.com/nyx95q Multimedia coverage: r.reuters.com/hus75h Graphic on sovereign debt woes: r.reuters.com/zem66q
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Ireland said the emergency loans would run for an average of 7.5 years, with an interest rate of 6 percent.
Another source of uncertainty is a lack of details on a Franco-German proposal to make private bondholders share the burden of losses on sovereign debt restructuring.
"That suggests the broader fiscal backdrop in the euro zone could remain troubled for longer, particularly if other, larger countries also require bailout programs, and as well raises troubling questions about moral hazard," wrote Bob Lynch, currency strategist at HSBC in New York.
Analysts said the market would be watching whether European Central Bank policymakers, meeting on Thursday, would remove some of the emergency measures put in place earlier this year.
The euro's losses against the dollar pushed it to a two-month trough against the Swiss franc at 1.3103 EURCHF=.
The dollar also hit a two-month high against the yen at 84.41 yen JPY= and was last at 84.33, up 0.3 percent
Sunday, November 28, 2010
How to use margin and leverage in forex
Forex leverage and marginGetting good at online fx trading means knowing several key concepts of successful forex trading – and how you can implement these concepts in your own trading strategy. Two major concepts every individual trader needs to know, understand, and use are the concepts of margin and leverage.
By using margin and leverage, you can control large amounts of currency far beyond the amount of capital you have invested in your account – thus giving you the same potential to make money as the big boys in the business.
As you’ll see, margin and leverage are vital and essential in making money with global forex trading.
What is Margin?
Margin is a trading term that basically means borrowing money to trade. If you have $1,000 in your account, you can purchase $1,000 worth of currency. But, if you buy on margin, you can essentially borrow money from your broker and purchase, say, $5,000 worth of currency.
Buying on margin gives you the potential to make far more profit than you would normally be able to, which means you do not have to have nearly as much invested to get started. Of course, there is a downside: If your investment goes sour, you can lose not only the money you have of your own, but also the money you were loaned. And that money must be paid back in what is known as a ‘margin call’.
So, buying on margin can be risky, but it can also be a way you can increase your profits and actually make money with currency market trading – especially with the small profit margins inherent to the industry.
What is Leverage?
Leverage is closely related to margin and defines how much capital you can control with your initial investment. The amount of leverage – or control – is generally referred to by ratios. For example, a 50:1 leverage ratio is common. This means that for every dollar you have in your account, you can control 50 dollars of currency.
Let’s take a look at leverage and how it works.
Let’s say you have $1,000 in your account. You open a margin account that gives you a leverage ratio of 50:1 (or 2% margin). Let’s also say that EUR/USD is selling at 1.500.
With your original $1,000, you can purchase 667 units. If you use leverage, though, you have $50,000 at your disposal, and can purchase 33,334 units.
Without leverage, your profit, if EUR/USD moves up by 10 pips, is $6.67. With leverage, your profit is 50 times larger, or $333.50. That is a profit of approximately 33% on your original investment.
High leverage is made possible because currencies rarely fluctuate more than 1% in a given day. This is why leverage is much higher with forex than it is with equities or futures.
Conclusion
If you are an individual investor, you need to learn about and possibly take advantage of margin and leverage. Leverage and margin are incredible opportunities to make considerable profit. They do come with risk – if your trade above was to drop by 10 pips, you would lose $333.50 – but once you become proficient at forex trading, you’ll realize that using leverage is the main way to make a significant profit with your trades.
Forex leverage and marginGetting good at online fx trading means knowing several key concepts of successful forex trading – and how you can implement these concepts in your own trading strategy. Two major concepts every individual trader needs to know, understand, and use are the concepts of margin and leverage.
By using margin and leverage, you can control large amounts of currency far beyond the amount of capital you have invested in your account – thus giving you the same potential to make money as the big boys in the business.
As you’ll see, margin and leverage are vital and essential in making money with global forex trading.
What is Margin?
Margin is a trading term that basically means borrowing money to trade. If you have $1,000 in your account, you can purchase $1,000 worth of currency. But, if you buy on margin, you can essentially borrow money from your broker and purchase, say, $5,000 worth of currency.
Buying on margin gives you the potential to make far more profit than you would normally be able to, which means you do not have to have nearly as much invested to get started. Of course, there is a downside: If your investment goes sour, you can lose not only the money you have of your own, but also the money you were loaned. And that money must be paid back in what is known as a ‘margin call’.
So, buying on margin can be risky, but it can also be a way you can increase your profits and actually make money with currency market trading – especially with the small profit margins inherent to the industry.
What is Leverage?
Leverage is closely related to margin and defines how much capital you can control with your initial investment. The amount of leverage – or control – is generally referred to by ratios. For example, a 50:1 leverage ratio is common. This means that for every dollar you have in your account, you can control 50 dollars of currency.
Let’s take a look at leverage and how it works.
Let’s say you have $1,000 in your account. You open a margin account that gives you a leverage ratio of 50:1 (or 2% margin). Let’s also say that EUR/USD is selling at 1.500.
With your original $1,000, you can purchase 667 units. If you use leverage, though, you have $50,000 at your disposal, and can purchase 33,334 units.
Without leverage, your profit, if EUR/USD moves up by 10 pips, is $6.67. With leverage, your profit is 50 times larger, or $333.50. That is a profit of approximately 33% on your original investment.
High leverage is made possible because currencies rarely fluctuate more than 1% in a given day. This is why leverage is much higher with forex than it is with equities or futures.
Conclusion
If you are an individual investor, you need to learn about and possibly take advantage of margin and leverage. Leverage and margin are incredible opportunities to make considerable profit. They do come with risk – if your trade above was to drop by 10 pips, you would lose $333.50 – but once you become proficient at forex trading, you’ll realize that using leverage is the main way to make a significant profit with your trades.
Saturday, November 27, 2010
WORLD FOREX: Dollar Climbs Above Y84 On Korea Tensions
The dollar surpassed the Y84 mark Friday for the first time since Sept. 29 as Korean peninsula tensions caused investors to bolt from the yen, and gained against the euro as investors reacted to fresh signs of strain in the euro zone.
Fear of an escalation of Korean tensions has fed a recent push into the dollar from the yen, because of the proximity of Japan to the conflict and the dollar being still considered a safe harbor in times of stress, analysts said.
Explosions were heard in Yeonpyeong Island Friday afternoon, and smoke was visible on the coast of North Korea, three days after a North Korean artillery barrage killed four people on the remote South Korean island. North Korea has warned the U.S. its plans for naval exercises with the South will drive the peninsula "closer to the brink of war," according to Sky News.
The dollar had been under pressure against the yen for most of the year, so this new trend marks a significant reversal, said Steven Englander, head of G10 strategy at Citigroup in New York.
Earlier this year, the yen had gained from worldwide risk aversion, in its traditional role as the ultimate safe-haven currency, while concerns over dollar-diluting Federal Reserve stimulus measures in early fall had also pushed the dollar sharply lower against the yen, said Englander.
"But the arguments they had [for that trade] are now very stale, and now they have a reason to move away from it," with concerns over Korea, he said.
Friday afternoon, the euro was at $1.3231 from $1.3369 late Thursday, according to EBS via CQG. The dollar was at Y84.01 from Y83.56, while the euro was at Y111.16 from Y111.75. The U.K. pound was at $1.5611 from $1.5764. The dollar was at CHF1.0026 from CHF1.0000.
The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 80.384 from 79.640.
"[A] symphony of negative headlines" from across the world fed a broad move into the dollar Friday, across currency pairs, said Mark McCormick, currency strategist with Brown Brothers Harriman in New York.
The euro sold off nearly 1% on the news from Friday's Financial Times Deutschland claiming euro-zone countries and the European Central Bank are applying pressure on Portugal to accept aid akin to Ireland's discussed rescue package.
Portugal, Spain and the European Commission denied the report. But growing market speculation that Portugal may be the next country to ask for support from its euro-zone neighbors has rocked confidence in the common currency, several analysts said.
News from the euro zone "highlights the fact the fear of contagion is moving to reality," said Camilla Sutton, currency strategist at Scotia Capital in Toronto.
Sterling also traded down by 1% to new two-month lows against the dollar. The dollar traded near two-month highs against the safe-haven Swiss franc.
The U.K. economy is inextricably linked to the roiled euro zone and investors are punishing the sterling for this correlation, said Lena Komileva, head of G7 market economics at Tullett Prebon in London. Specifically, "there is huge exposure by the U.K. banking sector," to Irish government debt, she said.
The strong move into the dollar has created a move away from other safe-haven assets, which include the Swiss franc and gold, said Komileva.
Also, Glenn Stevens, governor of the Reserve Bank of Australia, said no further rate increases are being considered in the near term during testimony to Parliament. That stoked concern that the commodity-driven Chinese global-growth-led economy may be cooling off, a negative omen for a global recovery in general, analysts said. That news caused the Australian dollar to sell off roughly 1.8% against the U.S. dollar.
The dollar surpassed the Y84 mark Friday for the first time since Sept. 29 as Korean peninsula tensions caused investors to bolt from the yen, and gained against the euro as investors reacted to fresh signs of strain in the euro zone.
Fear of an escalation of Korean tensions has fed a recent push into the dollar from the yen, because of the proximity of Japan to the conflict and the dollar being still considered a safe harbor in times of stress, analysts said.
Explosions were heard in Yeonpyeong Island Friday afternoon, and smoke was visible on the coast of North Korea, three days after a North Korean artillery barrage killed four people on the remote South Korean island. North Korea has warned the U.S. its plans for naval exercises with the South will drive the peninsula "closer to the brink of war," according to Sky News.
The dollar had been under pressure against the yen for most of the year, so this new trend marks a significant reversal, said Steven Englander, head of G10 strategy at Citigroup in New York.
Earlier this year, the yen had gained from worldwide risk aversion, in its traditional role as the ultimate safe-haven currency, while concerns over dollar-diluting Federal Reserve stimulus measures in early fall had also pushed the dollar sharply lower against the yen, said Englander.
"But the arguments they had [for that trade] are now very stale, and now they have a reason to move away from it," with concerns over Korea, he said.
Friday afternoon, the euro was at $1.3231 from $1.3369 late Thursday, according to EBS via CQG. The dollar was at Y84.01 from Y83.56, while the euro was at Y111.16 from Y111.75. The U.K. pound was at $1.5611 from $1.5764. The dollar was at CHF1.0026 from CHF1.0000.
The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 80.384 from 79.640.
"[A] symphony of negative headlines" from across the world fed a broad move into the dollar Friday, across currency pairs, said Mark McCormick, currency strategist with Brown Brothers Harriman in New York.
The euro sold off nearly 1% on the news from Friday's Financial Times Deutschland claiming euro-zone countries and the European Central Bank are applying pressure on Portugal to accept aid akin to Ireland's discussed rescue package.
Portugal, Spain and the European Commission denied the report. But growing market speculation that Portugal may be the next country to ask for support from its euro-zone neighbors has rocked confidence in the common currency, several analysts said.
News from the euro zone "highlights the fact the fear of contagion is moving to reality," said Camilla Sutton, currency strategist at Scotia Capital in Toronto.
Sterling also traded down by 1% to new two-month lows against the dollar. The dollar traded near two-month highs against the safe-haven Swiss franc.
The U.K. economy is inextricably linked to the roiled euro zone and investors are punishing the sterling for this correlation, said Lena Komileva, head of G7 market economics at Tullett Prebon in London. Specifically, "there is huge exposure by the U.K. banking sector," to Irish government debt, she said.
The strong move into the dollar has created a move away from other safe-haven assets, which include the Swiss franc and gold, said Komileva.
Also, Glenn Stevens, governor of the Reserve Bank of Australia, said no further rate increases are being considered in the near term during testimony to Parliament. That stoked concern that the commodity-driven Chinese global-growth-led economy may be cooling off, a negative omen for a global recovery in general, analysts said. That news caused the Australian dollar to sell off roughly 1.8% against the U.S. dollar.
FOREX: US Dollar finishes week higher against major currencies
The U.S. dollar traded higher in forex trading this week against the other major currencies as the American currency was the beneficiary of risk aversion. Market jitters were triggered this week by a military clash between North and South Korea as well as debt fears in the Eurozone, particularly in Ireland, Spain and Portugal.
The dollar rode the risk aversion higher versus the euro for a third straight week as the euro (EUR/USD pair) fell to its lowest exchange rate since September 21st at the 1.302 level. The dollar also increased for the week versus the Swiss franc, British pound sterling, Canadian dollar and New Zealand dollar, Australian dollar and the Japanese yen.
The largest gain for the dollar was against the euro with a 431 pip increase for the week followed by a 391 pip advance versus the British pound sterling (see chart). The dollar also rose by over 200 pips against the Australian dollar and the New Zealand dollar.
The dollar gained ground for a third straight week against the British pound, the Canadian dollar and the Swiss franc.
The Japanese yen, meanwhile, lost ground for the fourth straight week versus the U.S. dollar with an approximate 48 pip shortfall. The USD/JPY pair now trades at the 84.02 exchange rate after declining to a low at the 80.22 exchange rate on October 31st.
The U.S. dollar traded higher in forex trading this week against the other major currencies as the American currency was the beneficiary of risk aversion. Market jitters were triggered this week by a military clash between North and South Korea as well as debt fears in the Eurozone, particularly in Ireland, Spain and Portugal.
The dollar rode the risk aversion higher versus the euro for a third straight week as the euro (EUR/USD pair) fell to its lowest exchange rate since September 21st at the 1.302 level. The dollar also increased for the week versus the Swiss franc, British pound sterling, Canadian dollar and New Zealand dollar, Australian dollar and the Japanese yen.
The largest gain for the dollar was against the euro with a 431 pip increase for the week followed by a 391 pip advance versus the British pound sterling (see chart). The dollar also rose by over 200 pips against the Australian dollar and the New Zealand dollar.
The dollar gained ground for a third straight week against the British pound, the Canadian dollar and the Swiss franc.
The Japanese yen, meanwhile, lost ground for the fourth straight week versus the U.S. dollar with an approximate 48 pip shortfall. The USD/JPY pair now trades at the 84.02 exchange rate after declining to a low at the 80.22 exchange rate on October 31st.
Friday, November 26, 2010
How to Deposit Funds with your Forex Broker
Most online Forex brokers are offering customers a wide variety of methods to deposit funds to their forex trading accounts. In addition to the very traditional deposit methods such as credit card, bank transfer, and personal or business check, many brokers are offering various web wallet systems. We generally list the available deposit and withdrawal methods for the particular brokers reviewed in the broker reviews section on forex-rates.biz.
Following are some of the web wallets that are rapidly growing in popularity as forex broker deposit methods, which are simple, convenient, and generally very secure:
Liberty Reserve
Liberty Reserve is a complete electronic currency, owned and operated by Liberty Reserve S.A. Liberty Reserve offers three e-currencies, one being on par with the US Dollar, the second being on par with the Euro, and the third being on par with one gram of gold. Liberty Reserve accounts require no identity documents to set up, and very limited personal information. To get funds in and out of the system, however, requires the use of a Liberty Reserve currency exchanger, which is independent from Liberty Reserve itself. To fund your Liberty Reserve account, you need to transfer funds to the exchanger, who takes a small fee and then transfers credits into your Liberty Reserve account. Similarly, to withdraw, you transfer Liberty Reserve to an exchanger's Liberty Reserve account, and they in turn deduct their fee and send funds back to your bank account. You never actually carry out any financial transactions directly with Liberty Reserve.
>> Signup a trading account with: ForexYard, eToro.com, AvaFX or Finexo.com
Moneybookers
Moneybookers is a popular online wallet, based in the United Kingdom and regulated by the FSA. It is operated by Moneybookers Ltd., which is owned by Investcorp Technology Partners. Moneybookers commenced business in 2001 and offers accounts denominated in USD, EUR, GBP, and CAD. Both personal and company accounts are allowed. Moneybookers offers several convenient ways to deposit to its online system from, as well as receive withdrawals back to, your bank account, regardless of where in the world your account is located.
>> Signup a trading account with: ForexYard, eToro.com, AvaFX or Finexo.com
PayPal
PayPal is arguably the first wallet system offered online, and certainly the largest and most popular. It is operated by PayPal Inc., which is owned by eBay Inc. PayPal accounts are based on the customer's e-mail address. A credit card or USA-based bank account is required to add funds to your account balance and to send payments to other customers. PayPal charges fees for receiving payments to your account, and also to withdraw funds from your Paypal account to bank accounts outside of the USA. Senders of Paypal payments do not pay fees if the transfer occurs to another Paypal account. Many forex brokers accept PayPal, but PayPal also has usage restrictions based on your country of residence, so it has limited use for a great many traders in various parts of the world.
>> Signup a trading account with: ForexYard, eToro.com, AvaFX or Finexo.com
WebMoney
WebMoney is more than an online wallet, it is a complete electronic currency system, operated by WM Transfer Ltd. WebMoney started off as an online payment system dedicated specifically to the Russian market, but it has grown into an internationally popular payment system with representatives throughout the world. The virtual currencies (popularly known as e-currencies) offered by WebMoney are WMZ (which is equivalent in value to the U.S. Dollar), WME (which is equivalent in value to the Euro) and WMR (which is equivalent to the Russian Ruble). WebMoney accounts are accessible via internet either using your web browser, or by using a special software offered to all WebMoney account holders that allegedly makes your use of the system much more secure. WebMoney processes more than 100 million dollars in transactions on a daily basis, and has millions of customers worldwide. An interesting feature of WebMoney is that accounts are anonymous, though withdrawing funds from the system does require personal identification on the part of the account holder.
Most online Forex brokers are offering customers a wide variety of methods to deposit funds to their forex trading accounts. In addition to the very traditional deposit methods such as credit card, bank transfer, and personal or business check, many brokers are offering various web wallet systems. We generally list the available deposit and withdrawal methods for the particular brokers reviewed in the broker reviews section on forex-rates.biz.
Following are some of the web wallets that are rapidly growing in popularity as forex broker deposit methods, which are simple, convenient, and generally very secure:
Liberty Reserve
Liberty Reserve is a complete electronic currency, owned and operated by Liberty Reserve S.A. Liberty Reserve offers three e-currencies, one being on par with the US Dollar, the second being on par with the Euro, and the third being on par with one gram of gold. Liberty Reserve accounts require no identity documents to set up, and very limited personal information. To get funds in and out of the system, however, requires the use of a Liberty Reserve currency exchanger, which is independent from Liberty Reserve itself. To fund your Liberty Reserve account, you need to transfer funds to the exchanger, who takes a small fee and then transfers credits into your Liberty Reserve account. Similarly, to withdraw, you transfer Liberty Reserve to an exchanger's Liberty Reserve account, and they in turn deduct their fee and send funds back to your bank account. You never actually carry out any financial transactions directly with Liberty Reserve.
>> Signup a trading account with: ForexYard, eToro.com, AvaFX or Finexo.com
Moneybookers
Moneybookers is a popular online wallet, based in the United Kingdom and regulated by the FSA. It is operated by Moneybookers Ltd., which is owned by Investcorp Technology Partners. Moneybookers commenced business in 2001 and offers accounts denominated in USD, EUR, GBP, and CAD. Both personal and company accounts are allowed. Moneybookers offers several convenient ways to deposit to its online system from, as well as receive withdrawals back to, your bank account, regardless of where in the world your account is located.
>> Signup a trading account with: ForexYard, eToro.com, AvaFX or Finexo.com
PayPal
PayPal is arguably the first wallet system offered online, and certainly the largest and most popular. It is operated by PayPal Inc., which is owned by eBay Inc. PayPal accounts are based on the customer's e-mail address. A credit card or USA-based bank account is required to add funds to your account balance and to send payments to other customers. PayPal charges fees for receiving payments to your account, and also to withdraw funds from your Paypal account to bank accounts outside of the USA. Senders of Paypal payments do not pay fees if the transfer occurs to another Paypal account. Many forex brokers accept PayPal, but PayPal also has usage restrictions based on your country of residence, so it has limited use for a great many traders in various parts of the world.
>> Signup a trading account with: ForexYard, eToro.com, AvaFX or Finexo.com
WebMoney
WebMoney is more than an online wallet, it is a complete electronic currency system, operated by WM Transfer Ltd. WebMoney started off as an online payment system dedicated specifically to the Russian market, but it has grown into an internationally popular payment system with representatives throughout the world. The virtual currencies (popularly known as e-currencies) offered by WebMoney are WMZ (which is equivalent in value to the U.S. Dollar), WME (which is equivalent in value to the Euro) and WMR (which is equivalent to the Russian Ruble). WebMoney accounts are accessible via internet either using your web browser, or by using a special software offered to all WebMoney account holders that allegedly makes your use of the system much more secure. WebMoney processes more than 100 million dollars in transactions on a daily basis, and has millions of customers worldwide. An interesting feature of WebMoney is that accounts are anonymous, though withdrawing funds from the system does require personal identification on the part of the account holder.
FOREX-Dollar rallies as widening debt fears weigh on euro
The U.S. dollar rallied on Friday while the euro slid to a new two-month low as growing fears about the euro zone's debt crisis prompted investors to embrace safety and shun risk.
Mounting speculation that Portugal will need to follow Ireland in seeking financial aid unsettled nervous investors.
Investors rattled by Ireland's debt problems have pushed the borrowing costs of Portugal and Spain, seen as the next weakest euro zone peripheral states, to record highs.
European officials denied "absolutely false" reports Portugal was under pressure to seek a bailout and Spain ruled out on Friday needing help to manage its finances, despite fears of a spreading euro debt crisis. [ID:nLDE6AP08Y]
Nevertheless, with so much uncertainty, investors are hesitant adding euros to their positions.
The euro EUR= fell 0.85 percent to $1.3247, having dropped to as low as $1.3200 on trading platform EBS, its lowest since late September, and taking out option barriers at $1.3250 along the way. Traders cited reports of major Asian sovereign demand placed into $1.3200.
The dollar rose as high as 84.18 JPY=EBS on trading platform EBS, the strongest level since late September. It was last at 84.10 yen, up 0.63 percent, rising further from a 15-year low of 80.21 yen hit at the beginning of this month.
Against the yen EURJPY=, the euro was at 111.27, down 0.3 percent on the day.
Camilla Sutton, chief currency strategist at Scotia Capital in Toronto, said the dollar is being buoyed by European contagion fears rise and that Irish bond holders face risk.
"The escalation of problems in Europe is a crisis of confidence, which is notably difficult to quantify and project forward," she said in research note. "The pieces are in place for markets to settle yet it appears that fears are only rising."
"Risks for near-term USD trading are high, and though we continue to expect the USD to weaken in 2011, we would not be surprised to see further upward pressure on the dollar," she said.
Pressure on the euro has intensified as the spiraling debt crisis threatens to ensnare bigger countries such as Spain and Italy, while a small number of experts -- mostly not market participants -- have even begun to speculate about the euro zone's very existence.
"Peripheral issues are unlikely to go away in the short term and the euro will remain under pressure into the end of the year," said Manuel Oliveri, currency strategist at UBS in Zurich.
"Our data shows there are noticeable bond outflows from Spain and Italy, which suggests investors are becoming more unsettled," said Simon Derrick, head of currency research at Bank of New York Mellon.
Technical analysts highlighted the break of support at $1.3232, the 61.8 percent retracement of the euro's August to November rally, adding the 200-day moving average at $1.3131 was the next key level to watch.
AUSTRALIAN DOLLAR TUMBLES
The Australian dollar tumbled after its central bank quashed of an imminent rise in interest rates and the yen hit a seven-week low against the dollar, with fresh sabre-rattling by North Korea helping the U.S. currency.
The Australian dollar fell sharply as Reserve Bank Governor Glenn Stevens dampened any prospect of an imminent interest rate hike, saying rates were just right and the bank might not move on policy for some time.
The Aussie was down 1.6 percent to $0.9663 AUD=D4. For an analysis of the outlook for commodity currencies
The dollar index .DXY, which tracks the greenback's performance against a basket of six major currencies, rose to a two-month high of 80.522.
The U.S. dollar rallied on Friday while the euro slid to a new two-month low as growing fears about the euro zone's debt crisis prompted investors to embrace safety and shun risk.
Mounting speculation that Portugal will need to follow Ireland in seeking financial aid unsettled nervous investors.
Investors rattled by Ireland's debt problems have pushed the borrowing costs of Portugal and Spain, seen as the next weakest euro zone peripheral states, to record highs.
European officials denied "absolutely false" reports Portugal was under pressure to seek a bailout and Spain ruled out on Friday needing help to manage its finances, despite fears of a spreading euro debt crisis. [ID:nLDE6AP08Y]
Nevertheless, with so much uncertainty, investors are hesitant adding euros to their positions.
The euro EUR= fell 0.85 percent to $1.3247, having dropped to as low as $1.3200 on trading platform EBS, its lowest since late September, and taking out option barriers at $1.3250 along the way. Traders cited reports of major Asian sovereign demand placed into $1.3200.
The dollar rose as high as 84.18 JPY=EBS on trading platform EBS, the strongest level since late September. It was last at 84.10 yen, up 0.63 percent, rising further from a 15-year low of 80.21 yen hit at the beginning of this month.
Against the yen EURJPY=, the euro was at 111.27, down 0.3 percent on the day.
Camilla Sutton, chief currency strategist at Scotia Capital in Toronto, said the dollar is being buoyed by European contagion fears rise and that Irish bond holders face risk.
"The escalation of problems in Europe is a crisis of confidence, which is notably difficult to quantify and project forward," she said in research note. "The pieces are in place for markets to settle yet it appears that fears are only rising."
"Risks for near-term USD trading are high, and though we continue to expect the USD to weaken in 2011, we would not be surprised to see further upward pressure on the dollar," she said.
Pressure on the euro has intensified as the spiraling debt crisis threatens to ensnare bigger countries such as Spain and Italy, while a small number of experts -- mostly not market participants -- have even begun to speculate about the euro zone's very existence.
"Peripheral issues are unlikely to go away in the short term and the euro will remain under pressure into the end of the year," said Manuel Oliveri, currency strategist at UBS in Zurich.
"Our data shows there are noticeable bond outflows from Spain and Italy, which suggests investors are becoming more unsettled," said Simon Derrick, head of currency research at Bank of New York Mellon.
Technical analysts highlighted the break of support at $1.3232, the 61.8 percent retracement of the euro's August to November rally, adding the 200-day moving average at $1.3131 was the next key level to watch.
AUSTRALIAN DOLLAR TUMBLES
The Australian dollar tumbled after its central bank quashed of an imminent rise in interest rates and the yen hit a seven-week low against the dollar, with fresh sabre-rattling by North Korea helping the U.S. currency.
The Australian dollar fell sharply as Reserve Bank Governor Glenn Stevens dampened any prospect of an imminent interest rate hike, saying rates were just right and the bank might not move on policy for some time.
The Aussie was down 1.6 percent to $0.9663 AUD=D4. For an analysis of the outlook for commodity currencies
The dollar index .DXY, which tracks the greenback's performance against a basket of six major currencies, rose to a two-month high of 80.522.
WORLD FOREX: Euro Gains After Reassurance From ECB Official
The euro gained against the dollar in thin trading Thursday as a key official with the European Central Bank repeated assurances Europe will stand together to protect the common currency.
German Bundesbank President Axel Weber, also an influential voice on the ECB's governing council, said euro-zone countries have no alternative to protecting the euro.
"The euro is among the world's most stable currencies," Weber said at a conference in Berlin sponsored by a German newspaper. Weber also said Spain is highly unlikely to need euro-zone aid.
While Weber's support for the euro echoed earlier comments from European leaders, they were enough to trigger gains in the common currency in the thin trading flows resulting from the Thanksgiving Day holiday in the U.S., said Dave Bradley, director of foreign exchange at Scotia Capital in Toronto.
Further waning of trading flows later on Thursday could prevent the euro from extending its short-term gains, he said. "After Europe goes home, it's going to be very quiet this afternoon," Bradley said.
Late Thursday morning, the euro was at $1.3370 from $1.3327 late Wednesday, according to EBS via CQG. It touched a high of $1.3378 in late-morning trading. The dollar was at Y83.65 from Y83.62, while the euro was at Y111.85 from Y111.43. The U.K. pound was at $1.5772 from $1.5766. The dollar was at CHF0.9993 from CHF0.9966.
The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 79.640 from 79.800.
Other developments were supportive for the euro Thursday, with other market watchers attributing some of the euro's gains to buying against the yen.
The Wall Street Journal also reported that the European Commission is pushing to double the size of Europe's EUR440 billion bailout fund for indebted euro-zone countries, according to people familiar with the situation.
The proposal by the European Union's executive arm has run up against opposition from Germany, the EU's biggest economy, which is unwilling to expand the size of the fund, the report said.
The dollar rallied against the Swiss franc earlier Thursday, moving above parity with that currency for the first time since Sept. 21, before ceding some of its gains.
Market positioning is helping drive the greenback's gains against the Swiss franc, and it could continue to push higher against that currency, said Elsa Lignos, G10 foreign exchange strategist at RBC Capital Markets in London.
The dollar reached a high of CHF1.0021 against the franc Thursday, according to EBS via CQG.
While it was able to reclaim some lost ground Thursday, the euro remains overshadowed by Europe's continuing sovereign debt crisis as the announcement of Ireland's four-year budget plan Wednesday failed to increase confidence in the country's ability to avoid a debt default.
The Irish austerity proposals, which will cut spending by EUR10 billion, are likely to further reduce the ruling coalition's chances of survival in a general election expected early next year.
The first test of the government's position will come early Friday, when the results of a by-election in County Donegal held Thursday will be declared.
"Ireland is as yet an unresolved problem for policy makers, with an important vacant parliamentary seat election today set to cut the [government] majority to just two, ahead of a critical Dec. 7 budget vote," said currency strategists at ING in London.
"The inability so far to convincingly ring-fence the Irish situation is feeding worry over Portugal and Spain," ING said.
The euro gained against the dollar in thin trading Thursday as a key official with the European Central Bank repeated assurances Europe will stand together to protect the common currency.
German Bundesbank President Axel Weber, also an influential voice on the ECB's governing council, said euro-zone countries have no alternative to protecting the euro.
"The euro is among the world's most stable currencies," Weber said at a conference in Berlin sponsored by a German newspaper. Weber also said Spain is highly unlikely to need euro-zone aid.
While Weber's support for the euro echoed earlier comments from European leaders, they were enough to trigger gains in the common currency in the thin trading flows resulting from the Thanksgiving Day holiday in the U.S., said Dave Bradley, director of foreign exchange at Scotia Capital in Toronto.
Further waning of trading flows later on Thursday could prevent the euro from extending its short-term gains, he said. "After Europe goes home, it's going to be very quiet this afternoon," Bradley said.
Late Thursday morning, the euro was at $1.3370 from $1.3327 late Wednesday, according to EBS via CQG. It touched a high of $1.3378 in late-morning trading. The dollar was at Y83.65 from Y83.62, while the euro was at Y111.85 from Y111.43. The U.K. pound was at $1.5772 from $1.5766. The dollar was at CHF0.9993 from CHF0.9966.
The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 79.640 from 79.800.
Other developments were supportive for the euro Thursday, with other market watchers attributing some of the euro's gains to buying against the yen.
The Wall Street Journal also reported that the European Commission is pushing to double the size of Europe's EUR440 billion bailout fund for indebted euro-zone countries, according to people familiar with the situation.
The proposal by the European Union's executive arm has run up against opposition from Germany, the EU's biggest economy, which is unwilling to expand the size of the fund, the report said.
The dollar rallied against the Swiss franc earlier Thursday, moving above parity with that currency for the first time since Sept. 21, before ceding some of its gains.
Market positioning is helping drive the greenback's gains against the Swiss franc, and it could continue to push higher against that currency, said Elsa Lignos, G10 foreign exchange strategist at RBC Capital Markets in London.
The dollar reached a high of CHF1.0021 against the franc Thursday, according to EBS via CQG.
While it was able to reclaim some lost ground Thursday, the euro remains overshadowed by Europe's continuing sovereign debt crisis as the announcement of Ireland's four-year budget plan Wednesday failed to increase confidence in the country's ability to avoid a debt default.
The Irish austerity proposals, which will cut spending by EUR10 billion, are likely to further reduce the ruling coalition's chances of survival in a general election expected early next year.
The first test of the government's position will come early Friday, when the results of a by-election in County Donegal held Thursday will be declared.
"Ireland is as yet an unresolved problem for policy makers, with an important vacant parliamentary seat election today set to cut the [government] majority to just two, ahead of a critical Dec. 7 budget vote," said currency strategists at ING in London.
"The inability so far to convincingly ring-fence the Irish situation is feeding worry over Portugal and Spain," ING said.
Samsung brings Wave 525 & 723 phones to India
World's second largest mobile phone manufacture, Samsung has launched its new smartphones, Wave 525 and Wave 723 in India.
The Wave 525 and Wave 723 mobiles are running on Samsung’s own Bada OS. These two mobiles provide high end features with social networking connectivity.
Samsung Wave 525
Samsung Wave 525 has a 3.2-inch capacitive touchscreen and 3.15 mega pixel camera at rear. It supports Wi-Fi, Bluetooth and GPS. This mobile provides an internal memory of 100 MB and can be extended upto 16 GB using micro SD cards. Wave 525 is available in all leading shops at Rs 8,800.
Specifications:
* 3.2-inch capacitive touchscreen (240x400 resolution)
* 3.15 MP camera at rear
* Samsung bada 1.1 OS
* WiFi 802.11b, 802.11g, 802.11n
* Bluetooth
* GPS
* 100 MB internal memory
* 16 GB micro SD support
* FM radio
* MPEG4, H.263, H.264 video player support
* Facebook, Twitter applications
* microUSB
* 3.5mm headphone jacket
* 1200 mAh battery
* Rs 8,800
Samsung Wave 723
This Wave 723 is a 3G phone with all features of a smartphone. It has a 3.2-inch Super AMOLED TFT display and a 5 mega pixel camera with an LED flash. It runs on Samsung Bada OS and support WiFi and GPS.
Specifications:
* 3.2-inch Super AMOLED TFT display
* 5 mega pixel camera with LED flash
* Bada 1.1 OS
* Bluetooth 3.0
* 3G
* TouchWiz UI 3.0
* WiFi 802.11n
* GPS
* Stereo FM radio with RDS
* 90MB phone memory
* 16 GB micro SD support
* microUSB v2.0 connectivity
* 1200mAh battery
U.S. Stock-Index Futures Retreat on Europe Debt
U.S. stock-index futures fell as banks declined amid mounting concern about Europe’s debt crisis, while tensions between North and South Korea escalated.
Goldman Sachs Inc. and JPMorgan Chase & Co. fell more than 1 percent in Germany. Alcoa Inc. dropped 2 percent as base metals declined in London. Del Monte Foods Co. rallied 2.3 percent after a KKR & Co.-led group agreed to acquire the company in a $4 billion transaction. Wal-Mart Inc. rose as Black Friday, the biggest shopping day of the year, gets underway.
Futures on the Standard & Poor’s 500 Index expiring in December dropped 1 percent to 1,184.2 at 11:47 a.m. in London, indicating benchmark indexes may fall as markets reopen for half a day following the Thanksgiving holiday. Dow Jones Industrial Average futures lost 0.8 percent to 11,061 and Nasdaq-100 Index futures dropped 1 percent to 2,137.
“We are going to be saddled with European debt concerns for a while and it seems to be an issue that markets are completely obsessed with,” said London-based Mike Lenhoff, chief strategist at Brewin Dolphin Securities Ltd., which oversees about $33 billion. “In addition to which, the two Koreas have everyone on alert. If the market chooses to focus on the negatives, then there is no shortage of things to focus on.”
The S&P 500 has fallen 2.2 percent since reaching a two- year high of 1,225.85 on Nov. 5 amid concern the sovereign-debt crisis will spread to southern Europe and speculation China will raise interest rates to tame inflation. Stocks extended losses on Nov. 23 after North Korea shelled a South Korean island.
Spain, Portugal
The cost of insuring Portuguese and Spanish government debt against default climbed to record levels based on closing prices, according to data provider CMA. Portugal today faces a final vote in parliament on its 2011 spending plan, which includes measures to pare the deficit.
The Financial Times Deutschland reported that euro-area policy makers are pushing Portugal to tap a 750 billion-euro ($993 billion) bailout fund. Portuguese Finance Minister Fernando Teixeira dos Santos said European Union governments can’t impose a bailout on his country even as speculation mounts that Portugal will eventually have to ask for one.
Shares of Goldman Sachs fell 1.5 percent to $157.91 in Germany, JPMorgan Chase & Co. lost 1.3 percent to $37.68 and Bank of America Corp. slid 1.2 percent to $11.15.
Alcoa lost 2.7 percent to $12.95 in German trading as base metals declined in London. North Korea is “ready to give a shower of dreadful fire and blow up the bulwark of the enemies,” according to a statement from state news agency KCNA. “Escalated confrontation would lead to a war.”
The dollar hit a seven-week high against the yen on concerns the conflict in the Korean peninsula could worsen, raising the demand for relatively safe assets.
Curb Speculation
Separately, the Shanghai Futures Exchange, where the world’s top three metals contracts are traded, said yesterday it will increase margins and daily price-move limits in the latest move by China to curb speculation and cool inflation. Chinese stocks fell for the first time in three days as the Shanghai Securities News said the government may cut the target for new lending next year.
Del Monte rallied 3.2 percent to $18.57 in Germany after the company yesterday said KKR, Vestar Capital Partners and Centerview Partners will pay $19 a share in cash for the maker of canned fruit and pet foods. That would be 21 percent higher than the closing price on Nov. 18, the day before takeover talks were reported. The buyers will assume about $1.3 billion in net debt.
Wal-Mart rose 0.3 percent to $54.17 in Germany as Black Friday a bellwether for the entire holiday season, gets underway. Shares of Home Depot Inc., Saks Inc. and Macy’s Inc. were yet to trade in Europe.
Analysts’ estimates for holiday sales vary from little changed to increases of as much as 4.5 percent. The retail federation predicts a gain of 2.3 percent to $447.1 billion after an uptick of 0.4 percent last year and a 3.9 percent drop in 2008.
U.S. stock-index futures fell as banks declined amid mounting concern about Europe’s debt crisis, while tensions between North and South Korea escalated.
Goldman Sachs Inc. and JPMorgan Chase & Co. fell more than 1 percent in Germany. Alcoa Inc. dropped 2 percent as base metals declined in London. Del Monte Foods Co. rallied 2.3 percent after a KKR & Co.-led group agreed to acquire the company in a $4 billion transaction. Wal-Mart Inc. rose as Black Friday, the biggest shopping day of the year, gets underway.
Futures on the Standard & Poor’s 500 Index expiring in December dropped 1 percent to 1,184.2 at 11:47 a.m. in London, indicating benchmark indexes may fall as markets reopen for half a day following the Thanksgiving holiday. Dow Jones Industrial Average futures lost 0.8 percent to 11,061 and Nasdaq-100 Index futures dropped 1 percent to 2,137.
“We are going to be saddled with European debt concerns for a while and it seems to be an issue that markets are completely obsessed with,” said London-based Mike Lenhoff, chief strategist at Brewin Dolphin Securities Ltd., which oversees about $33 billion. “In addition to which, the two Koreas have everyone on alert. If the market chooses to focus on the negatives, then there is no shortage of things to focus on.”
The S&P 500 has fallen 2.2 percent since reaching a two- year high of 1,225.85 on Nov. 5 amid concern the sovereign-debt crisis will spread to southern Europe and speculation China will raise interest rates to tame inflation. Stocks extended losses on Nov. 23 after North Korea shelled a South Korean island.
Spain, Portugal
The cost of insuring Portuguese and Spanish government debt against default climbed to record levels based on closing prices, according to data provider CMA. Portugal today faces a final vote in parliament on its 2011 spending plan, which includes measures to pare the deficit.
The Financial Times Deutschland reported that euro-area policy makers are pushing Portugal to tap a 750 billion-euro ($993 billion) bailout fund. Portuguese Finance Minister Fernando Teixeira dos Santos said European Union governments can’t impose a bailout on his country even as speculation mounts that Portugal will eventually have to ask for one.
Shares of Goldman Sachs fell 1.5 percent to $157.91 in Germany, JPMorgan Chase & Co. lost 1.3 percent to $37.68 and Bank of America Corp. slid 1.2 percent to $11.15.
Alcoa lost 2.7 percent to $12.95 in German trading as base metals declined in London. North Korea is “ready to give a shower of dreadful fire and blow up the bulwark of the enemies,” according to a statement from state news agency KCNA. “Escalated confrontation would lead to a war.”
The dollar hit a seven-week high against the yen on concerns the conflict in the Korean peninsula could worsen, raising the demand for relatively safe assets.
Curb Speculation
Separately, the Shanghai Futures Exchange, where the world’s top three metals contracts are traded, said yesterday it will increase margins and daily price-move limits in the latest move by China to curb speculation and cool inflation. Chinese stocks fell for the first time in three days as the Shanghai Securities News said the government may cut the target for new lending next year.
Del Monte rallied 3.2 percent to $18.57 in Germany after the company yesterday said KKR, Vestar Capital Partners and Centerview Partners will pay $19 a share in cash for the maker of canned fruit and pet foods. That would be 21 percent higher than the closing price on Nov. 18, the day before takeover talks were reported. The buyers will assume about $1.3 billion in net debt.
Wal-Mart rose 0.3 percent to $54.17 in Germany as Black Friday a bellwether for the entire holiday season, gets underway. Shares of Home Depot Inc., Saks Inc. and Macy’s Inc. were yet to trade in Europe.
Analysts’ estimates for holiday sales vary from little changed to increases of as much as 4.5 percent. The retail federation predicts a gain of 2.3 percent to $447.1 billion after an uptick of 0.4 percent last year and a 3.9 percent drop in 2008.
Japanese Stocks Rise as Europe's Debt Concerns Ease, Oil Climbs
Japanese stocks rose for a second day after Deutsche Bundesbank President Axel Weber said a rescue fund for the euro area has sufficient capital to calm financial markets and as oil and metal prices increased.
Toyota Motor Corp., the world's biggest carmaker, advanced 0.8 percent. Honda Motor Co., Japan's No. 2 carmaker, climbed 1.1 percent. Mitsubishi Corp., the nation's largest commodities trader, gained 0.4 percent. Sumitomo Chemical Co. jumped 3.1 percent after announcing a plan to build a rubber plant.
"Concerns about financial issues in Europe eased and there's expectation for excess liquidity," said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc.
The Nikkei 225 Stock Average rose 0.4 percent to 10,118.49 as of 9:42 a.m. in Tokyo, set for the highest close since June 21. The broader Topix index increased 0.4 percent to 872.97, with about five stocks gaining for every two that fell. For the week, the Nikkei has advanced 1 percent, while the Topix is up 0.4 percent.
The Nikkei 225 jumped 9.5 percent this month to yesterday. Stocks in the Japanese benchmark are valued at 17.8 times estimated earnings on average, compared with 14.1 times for the Standard &Poor's 500 Index and 12 times for the Stoxx Europe 600 Index.
The benchmark Stoxx 600 rose 0.5 percent yesterday after Weber, who is also a European Central Bank Governing Council member, said there's no alternative to the European currency union.
Yen Weakens
Toyota gained 0.8 percent to 3,330 yen and Honda increased 1.1 percent to 3,120 yen. The carmakers were the biggest support for the Topix's gain. TDK Corp., the world's biggest maker of magnetic heads for disk drives, jumped 2.2 percent to 5,660 yen.
The yen depreciated to 83.73 against the dollar, compared with 83.49 at the close of stock trading in Tokyo yesterday. Against the euro, Japan's currency weakened to 111.75 from 111.25. A weaker yen boosts the value of overseas income at Japanese companies when converted into their home currency.
Mitsubishi gained 0.4 percent to 2,137 yen and Mitsui & Co., which counts commodities as its largest source of profit, rose 0.4 percent to 1,340 yen.
The London Metal Exchange Index of prices for six industrial metals including copper and aluminum advanced 1.4 percent yesterday. Crude oil for January delivery gained as much as 0.8 percent yesterday in electronic trading in New York to $84.53 a barrel, the highest price since Nov. 16.
Sumitomo Chemical climbed 3.1 percent to 371 yen, the most in the Nikkei 225. The company said on its Web site it will build a plant in Singapore to produce solution styrene-butadiene rubber, aiming to start commercial operation in the fourth quarter of 2013.
Japan Airport Terminal Co., the operator of buildings at Tokyo's Haneda Airport, advanced 1.9 percent to 1,317 yen after the company had its rating raised to "outperform" from "neutral" at Mitsubishi UFJ Morgan Stanley Securities Co.
Japanese stocks rose for a second day after Deutsche Bundesbank President Axel Weber said a rescue fund for the euro area has sufficient capital to calm financial markets and as oil and metal prices increased.
Toyota Motor Corp., the world's biggest carmaker, advanced 0.8 percent. Honda Motor Co., Japan's No. 2 carmaker, climbed 1.1 percent. Mitsubishi Corp., the nation's largest commodities trader, gained 0.4 percent. Sumitomo Chemical Co. jumped 3.1 percent after announcing a plan to build a rubber plant.
"Concerns about financial issues in Europe eased and there's expectation for excess liquidity," said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc.
The Nikkei 225 Stock Average rose 0.4 percent to 10,118.49 as of 9:42 a.m. in Tokyo, set for the highest close since June 21. The broader Topix index increased 0.4 percent to 872.97, with about five stocks gaining for every two that fell. For the week, the Nikkei has advanced 1 percent, while the Topix is up 0.4 percent.
The Nikkei 225 jumped 9.5 percent this month to yesterday. Stocks in the Japanese benchmark are valued at 17.8 times estimated earnings on average, compared with 14.1 times for the Standard &Poor's 500 Index and 12 times for the Stoxx Europe 600 Index.
The benchmark Stoxx 600 rose 0.5 percent yesterday after Weber, who is also a European Central Bank Governing Council member, said there's no alternative to the European currency union.
Yen Weakens
Toyota gained 0.8 percent to 3,330 yen and Honda increased 1.1 percent to 3,120 yen. The carmakers were the biggest support for the Topix's gain. TDK Corp., the world's biggest maker of magnetic heads for disk drives, jumped 2.2 percent to 5,660 yen.
The yen depreciated to 83.73 against the dollar, compared with 83.49 at the close of stock trading in Tokyo yesterday. Against the euro, Japan's currency weakened to 111.75 from 111.25. A weaker yen boosts the value of overseas income at Japanese companies when converted into their home currency.
Mitsubishi gained 0.4 percent to 2,137 yen and Mitsui & Co., which counts commodities as its largest source of profit, rose 0.4 percent to 1,340 yen.
The London Metal Exchange Index of prices for six industrial metals including copper and aluminum advanced 1.4 percent yesterday. Crude oil for January delivery gained as much as 0.8 percent yesterday in electronic trading in New York to $84.53 a barrel, the highest price since Nov. 16.
Sumitomo Chemical climbed 3.1 percent to 371 yen, the most in the Nikkei 225. The company said on its Web site it will build a plant in Singapore to produce solution styrene-butadiene rubber, aiming to start commercial operation in the fourth quarter of 2013.
Japan Airport Terminal Co., the operator of buildings at Tokyo's Haneda Airport, advanced 1.9 percent to 1,317 yen after the company had its rating raised to "outperform" from "neutral" at Mitsubishi UFJ Morgan Stanley Securities Co.
Thursday, November 25, 2010
US Stock Market Rallied Ahead Of Thanksgiving
The US equities and bonds markets bounced back yesterday following the release of several encouraging economic reports. The rally in the markets occurred a day after a sell-off occurred due to the recent military conflict between North and South Korea. Traders initially found confidence when Germany’s business climate, as measured in the German Ifo business climate index, unexpectedly improved with the index rising to to 109.3 from 107.7. The index was initially seen to weaken to 107.6. Of course, this surprise came amid the current drama in Ireland which I will talk about in my next article so watch out for that!
Later, the buying gained more momentum when the latest initial jobless claims, which is the number of people who are applying for unemployment benefits from the state for the first time, in the US registered a much lower figure of 407,000 than the market’s 434,000 forecast. The previous week’s count was at 441,000. The market actually more weight on the improvement in the jobless claims versus the country’s durable goods orders which fell by 3.3% in October.
Earlier in the week, data showed that the US economy grew by 2.5% against the 2.0% estimate during the third quarter due to higher consumption which can partially attributed to the gains in employee wages. Given these, its apparent the US economy is slowly picking up speed.
To the end of the day, the Dow jumped by 1.31% while the broader S&P 500 soared by 1.93%. The Nasdaq, similarly, gained by 1.43% while the yield on the 10-year bond in the US closed higher by 0.1520 points to 2.9140%.
The US equities and bonds markets bounced back yesterday following the release of several encouraging economic reports. The rally in the markets occurred a day after a sell-off occurred due to the recent military conflict between North and South Korea. Traders initially found confidence when Germany’s business climate, as measured in the German Ifo business climate index, unexpectedly improved with the index rising to to 109.3 from 107.7. The index was initially seen to weaken to 107.6. Of course, this surprise came amid the current drama in Ireland which I will talk about in my next article so watch out for that!
Later, the buying gained more momentum when the latest initial jobless claims, which is the number of people who are applying for unemployment benefits from the state for the first time, in the US registered a much lower figure of 407,000 than the market’s 434,000 forecast. The previous week’s count was at 441,000. The market actually more weight on the improvement in the jobless claims versus the country’s durable goods orders which fell by 3.3% in October.
Earlier in the week, data showed that the US economy grew by 2.5% against the 2.0% estimate during the third quarter due to higher consumption which can partially attributed to the gains in employee wages. Given these, its apparent the US economy is slowly picking up speed.
To the end of the day, the Dow jumped by 1.31% while the broader S&P 500 soared by 1.93%. The Nasdaq, similarly, gained by 1.43% while the yield on the 10-year bond in the US closed higher by 0.1520 points to 2.9140%.
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