Back on deck. :) Markets Overnight US markets ended in positive territory Monday with its third consecutive session of gains. Second quarter earnings season begins with Alcoa today, however the earnings pre-announcements so far have been quite negative so investors may see a disappointing season this quarter. After the Non Farm Payrolls report Friday, talk is that the Fed will now begin scaling back the asset purchase program in November - two weeks ago, prior to the jobs report, this expectation was for December. This has also affected Chinese stocks with the stimulus withdrawal dampening the Shanghai Composite. This was coupled with the news that Beijing will not extend credit to sectors that are struggling with overcapacity. Property and banking sectors in the region slumped on the news. In economic news US consumer credit increased in May, the most in a year, according to the Federal Reserve. News of Greece securing the next tranche of international loans lifted European markets after European Commission officials said they had reached an agreement with the Greek authorities on the economic and financial policies the country needs. Portugal also lifted the markets when it was announced the government would re-shuffle the cabinet, ending the political uncertainty in the country. Strife still continues in Egypt with reports that 51 people were killed and 435 injured in clashes Monday, causing the Egyptian stock exchange to close down 3.5%. Asian markets closed lower on the news from Beijing as I mentioned above. Some good news did occur but was a little overshadowed by the negativity - Pyongyang and Seoul (North and South Korea) have agreed to re-open the Kaesong Industrial Park, which has been closed since April - this is again a big step for Korean relations. Major news today includes NZD, CNY, GBP. Have a good trading day :) Elli.
Posted on: Mon, 08 Jul 2013 22:26:02 +0000
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