Archive for category Fund Markets
Greek drama plays out on Wall Street
Posted by Tetyana Matychak in Fund Markets on February 15th, 2010
U.S. stocks could struggle to make headway next week if a meeting of European finance ministers fails to reassure markets that they can contain Greece’s debt problems.
Greece’s financing problems have focused investors’ attention on the growing mountain of public debt as cash-strapped governments around the world spend their way out of recession. The fear is Greece’s problems could spread, hurting financial markets.
Finance ministers from the euro zone will meet on Monday, when U.S. markets are closed for the Presidents Day holiday, followed by finance ministers from the rest of the European Union on Tuesday.
“What the market wants to hear is that there is a viable remedy,” said Quincy Krosby, market strategist with Prudential Financial in Newark, New Jersey.
“The market will be anticipating how other problems will be handled. Can the solution be applied to the problems that may crop up in Spain, Portugal, Italy (and Ireland) because traders believe the aftershocks are not over.” Read the rest of this entry »
How funds can hit such different notes
Posted by Tetyana Matychak in Fund Markets on January 20th, 2010
Individual investors are often told that index-linked funds are better for them than actively managed offerings. That may be true, but index funds carry their own risks that can catch the unsuspecting.
Look, for example, at two exchange-traded funds that track the same international-stock index — and yet their results last year are significantly different.
IShares MSCI Emerging Markets Index ETF (EEM 41.95, -0.49, -1.16%) and Vanguard
Emerging Markets ETF (VWO 41.70, -0.50, -1.18%) both track the MSCI Emerging Markets
Index. But the Vanguard ETF gained just over 76% last year, while the iShares offering was up nearly 72%. The Index itself was up 78.5%.
The difference highlights the varied results index funds can produce and offers a lesson to investors about the best way to choose an indexed investment.
How can investors tell which ETF best tracks its benchmark index and also come to realize that not all indexes are the same? The answer isn’t so straightforward. Read the rest of this entry »
Stocks Climb on Evidence Global Economy Recovering
Posted by Tetyana Matychak in Fund Markets on December 23rd, 2009
Stocks rose around the world, driving Europe’s Dow Jones Stoxx 600 Index to a 14-month high, on evidence that the global economy is recovering from its recession. Oil and copper advanced.
The MSCI World Index of developed-nation shares climbed 0.3 percent at 9:41 a.m. in London. Futures on the Standard & Poor’s 500 Index added 0.3 percent and the MSCI Asia Pacific Index increased 0.5 percent. Oil gained 0.6 percent in New York, while the dollar traded near a three-month high against the euro.
U.S. consumer spending probably rose in November for the sixth time in seven months as households took advantage of holiday discounting, economists said before reports today. China’s growth may surge to as much as 12 percent next year, according to Citic Securities Co., the nation’s biggest listed brokerage. Consumer confidence in Italy unexpectedly rose in December to the highest in more than seven years after Europe’s fourth-biggest economy emerged from a recession.
“The path of least resistance will continue to be to the upside,” Robert Doll, who helps oversee about $3.2 trillion as chief investment officer for global equities at New York-based BlackRock Inc., said in a Bloomberg Television interview. The economic recovery “means earnings should be somewhat better and liquidity should still be plentiful. That’s a recipe for equities moving higher,” Doll said. Read the rest of this entry »
Stocks Rise, Default Swaps, Dollar Drop Following Dubai Bailout
Posted by Tetyana Matychak in Fund Markets on December 14th, 2009
Stocks rose as Abu Dhabi bailed out Dubai’s Nakheel PJSC and Exxon Mobil Corp. agreed to buy XTO Energy Inc. for $31 billion. The cost to protect U.S. corporate bonds from default fell to a 12-week low, while the dollar slipped and oil and Treasuries were little changed.
The Standard & Poor’s 500 Index climbed 0.5 percent to 1,111.73 at 10:55 a.m. in New York for a fourth straight advance, its longest streak in a month. Dubai’s equity index jumped 10 percent, the most in 14 months. The dollar weakened against 10 of 16 major currencies tracked by Bloomberg, while the euro strengthened against the dollar and pound as concern eased that Europe’s biggest banks will write down Dubai loans.
Abu Dhabi’s pledge reassured investors who had sent stock markets tumbling last month on concern defaults would slow the global economic recovery. Greek Prime Minister George Papandreou may announce measures to cut the European Union’s biggest budget deficit later today after the nation’s bonds plunged to their lowest levels in seven months last week.
Dubai’s bailout “puts to rest any lingering fears that might have existed about possible contagion,” Tim Condon, head of Asia credit research for ING Groep NV in Singapore, said in an interview. “It’s inevitable that we’re going to see a few more incidents of credit stress show up in both banks and corporates, but in terms of it becoming a macroeconomic issue I think Dubai World was as close as we were going to get.” Read the rest of this entry »
Stronger dollar, weak economic data pummels stocks
Posted by Tetyana Matychak in Fund Markets on November 26th, 2009
A stronger dollar and more discouraging signs of a subdued economic recovery triggered a broad sell-off in stocks.
Major indexes tumbled more than 1 percent Thursday, including the Dow Jones industrials, which fell about 133 points.
Energy and material stocks showed the biggest losses as a jump in the dollar sent commodity prices tumbling. Meanwhile, an analyst’s downgrade of the chip sector pulled technology shares sharply lower.
Analysts said the dollar was the biggest force behind Thursday’s trading, as it has been in recent months. A stronger dollar makes commodities more expensive to foreign buyers, and companies that produce the commodities make less money from them.
“There might be a little fear out there about dollar strengthening, as well as some natural profit-taking opportunities,”said Dan Cook, senior market analyst at IG Markets Inc. in Chicago.”We’ve been on an amazing run.” Read the rest of this entry »
Asian Stocks Fall to Two-Week Low
Posted by Tetyana Matychak in Fund Markets on November 24th, 2009
Asian stocks fell, dragging the MSCI Asia Pacific Index to a two-week low, amid speculation Japanese and Chinese banks will have to sell shares to replenish capital.
Sumitomo Mitsui Financial Group Inc., Japan’s second- largest bank by market value, fell 4.4 percent after the Nikkei newspaper said banks are preparing a new round of share sales. Bank of China Ltd. slumped 4 percent in Hong Kong after saying it’s studying options to raise funds. Suning Appliance Co., China’s biggest home appliance retailer, fell 5.5 percent in Shanghai on valuation concerns.
The MSCI Asia Pacific Index lost 0.9 percent to 116.68 as of 6:02 p.m. in Tokyo, set to close at the lowest level since Nov. 6. The gauge has climbed 65 percent from a more than five- year low on March 9 on signs government stimulus measures are helping revive the world economy. A global rally yesterday drove the MSCI World Index up by the most in two weeks.
“Markets have had a huge run on expectations of a recovery,” said Matt Riordan, who helps manage about $5.1 billion at Paradice Investment Management in Sydney. “We’re in a period now where signals that the recovery has been priced in are coming through. The market is discriminating a lot more in terms of stocks.” Read the rest of this entry »
UK Stocks — Factors to watch
Posted by Tetyana Matychak in Favourites, Fund Markets on October 16th, 2009
Britain’s FTSE 100 .FTSE index is seen opening up as much as 0.4 percent, according to financial bookmakers, drawing strength from Wall Street where the Dow Jones industrial average .DJI passed the 10,000 level for the first time in a year on earnings optimism.
The FTSE 100 closed 2 percent higher at 5,256.10 on Wednesday, hitting its
highest closing level in more than a year after upbeat quarterly earnings from JPMorgan Chase (JPM.N) gave a further boost to market sentiment in the wake of Intel’s (INTC.O) forecast-beating results.
Shares in Asia .MIAPJ0000PUS rose to their highest since August last year,
while Japanese stocks jumped 2 percent as investors bought exporters who might benefit from rising U.S. demand.
Later on Thursday results are due from Goldman Sachs (GS.N) and Citigroup
(C.N). No British economic data is expected on Thursday, leaving the focus on U.S. CPI figures for September, due at 1230 GMT.
* Nikkei up 1.5 pct after JPMorgan, U.S. retail data [ID:nT328702]
* Dow passes 10,000 mark on earnings optimism [ID:nN14267035]
* Aussie rise sparks broad dollar fall to 14-mth lows [ID:nT77862]
* Bonds sag, Wall Street rally parares safety bid [ID:nN14260466]
* Asia shares hit 14-mth peak, dollar slumps [ID:nSP409405]
* Copper rises on weak dollar, optimism on recovery [ID:nSHA76130]
* Gold steady above $1,060 on dollar, oil [ID:nT83451]
* Oil rises towards $76 on U.S. inventories, economy [ID:nSIN546046] Read the rest of this entry »
Futures Fall Ahead of Data Deluge
Posted by Tetyana Matychak in Fund Markets on October 1st, 2009
U.S. stocks futures are indicating a lower open Thursday as investors paused for breath ahead of a flood of economic data.
Less than two hours before the start of trading, Dow Jones Industrial Average futures were 46 points lower at 9607. The S&P 500 futures slipped 5.4 to 1047.5, and Nasdaq 100 futures lost 8.75 to 1708.75. Changes in futures do not always accurately predict early market moves after the opening bell.
U.S. stocks weakened Wednesday on the final day of the third quarter, with the Dow Jones Industrial Average retreating 30 points, the Nasdaq Composite losing 2 points and the S&P 500 slipping 4 points. Weak economic data on jobs and a Chicago-area poll contributed to the bearish tone.
However, the stock market ended near its highs for the year, with many of the riskiest stocks leading the charge.
As the curtain goes up on the fourth quarter Thursday, investors are bracing for a deluge of economic releases. The Labor Department has its weekly jobless claims report and the National Association of Realtors has pending home sales figures. Personal income and the related PCE deflation inflation gauge for August, the Institute for Supply Management’s manufacturing gauge for September, construction spending for August and car sales data for September are also expected. Read the rest of this entry »
U.S. Stock Futures Rise After Jobless Claims Unexpectedly Drop
Posted by Tetyana Matychak in Fund Markets on September 24th, 2009
U.S. stock-index futures advanced after jobless claims unexpectedly decreased, bolstering speculation the economy is recovering.
Citigroup Inc., General Electric Co. and Apple Inc. climbed at least 1 percent after initial claims for unemployment benefits fell to 530,000 last week, 20,000 less than economists predicted. Red Hat Inc. rallied 9.4 percent as the biggest seller of the Linux operating system reported earnings that beat estimates and Bank of America Corp. recommended the shares.
“We’ve turned the corner,” said Tom Wirth, senior investment officer at Chemung Canal Trust Co., which manages $1.6 billion in Elmira, New York. “The latest economic reports are telling us that we might see revenue growth in the fourth quarter. On top of that, interest-rates are so low that stocks seem to be the only game to play.”
Futures on the Standard & Poor’s 500 Index expiring in December gained 0.4 percent to 1,063.5 at 8:46 a.m. in New York. Dow Jones Industrial Average futures added 35 points, or 0.4 percent, to 9,752. Nasdaq-100 Index futures increased 0.6 percent to 1,736.
The S&P 500 yesterday dropped from its highest level since October. A 57 percent rally since March 9 has left the measure valued at about 20 times the reported earnings of its companies, the most expensive level since 2004, according to weekly data compiled by Bloomberg. Read the rest of this entry »
US Stocks Slide As US-China Trade Relations Hit A Rough Patch
Posted by Tetyana Matychak in Fund Markets on September 14th, 2009
U.S. stocks fell as trade relations between the U.S. and China turned rockier, with the energy and financial sectors under pressure.
Shortly after the opening bell, the Dow Jones Industrial Average was lower by about 62 points. The S&P 500 was down about 0.6%. The Nasdaq Composite Index slipped 0.4%.
Escalating trade tensions between the U.S. and China rattled overseas markets. The U.S. over the weekend imposed tariffs on Chinese-made tires, while China said it planned an antidumping investigation into U.S. sales of chicken and auto products.
In Asia, most markets lost ground. The Nikkei tumbled 2.3% on concerns that the strengthened yen could put a dent in exporters’ earnings. Hong Kong’s Hang Seng ended 1.1% lower at 20932.20, while Australia’s S&P/ASX 200 fell 1.4% and South Korea’s Kospi dropped 1%. Major benchmarks in Europe also fell. Read the rest of this entry »
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