Financial Communique » Market

Panic on the raw materials market

Viliyana Filipova — Fri, 06 May 2011 12:32:00 +0000

The traders of raw materials are in a state of panic sales. After the yesterday’s sharp falls, with most commodity followed by stabilization. This morning, however, sales once again gaining strength. The price of oil contracts for June delivery lost 4.6 percent to 95.24 dollars per barrel. This decline comes after sinking more than 8 percent yesterday, when oil has made the worst day of April 20th, 2009 onwards. Because of the huge sales Exchange operator CME increased levels of variation within a single session. They are already twice as large and oil futures are allowed movement within plus or minus $ 20 from the previous close. The Stock Exchange of London Brent oil lost 4.3 percent to 106.02 dollars per barrel. The silver is moving at a decline of 4.2 per cent today, as current price is 3474.50 dollars an ounce. This is exactly 30% below the record price of 49.8450 dollars per ounce recorded late last week. Auctions gradually transfer and agricultural products. Chicago Stock Exchange price of corn for delivery in July fell by 2.2 percent to 6.93 dollars per bushel. Wheat does lost 1.6 percent to 7.42 dollars per bushel. All this is happening against the backdrop of a deepening downturn in the euro exchange rate, which today gave a 0.16 per cent to 1,4510 EUR / USD. This is nearly 3 percent below the peak of 1.4939 dollars per euro reached a week ago.

EU: China should open the market for public orders

Viliyana Filipova — Thu, 22 Jul 2010 15:08:19 +0000

The Labour Commissioner Karel De Guh said that China should improve investment opportunities for foreign companies in the country, said “serious questions” that puts European business practices in connection with the Chinese procurement market, says the Wall Street Journal. During his visit to the Shanghai World Exposition (World Expo) Guh stressed that China should ensure transparency and openness of its market procurement and noted that all the rules that distort competition, hampering economic growth. In response to remarks by European Commissioner, Chinese Vice Minister of Commerce Gao Huchan said that the policy of the Chinese government is strongly opposed to protectionism. Guh said that Chinese investment in Europe remain relatively low until the GAO sees possibilities for cooperation between Europe and China in high technology and green energy. Between 2004 and 2008, European imports from China grew by an average of 16.5 percent per year, although because of the global financial crisis experienced a drop of 13% in 2009.
China remains the largest importer in Europe Last year in the European Union (EU) imported Chinese goods for 215 billion.

New doubts for stress tests on European markets

Viliyana Filipova — Mon, 19 Jul 2010 18:28:27 +0000

The Greek economy is in difficulty, and its financial system is under pressure since the country became the epicenter of the biggest crisis in the history of the euro area. However now it seems that Greek banks will pass through the stress test of the banking system in Europe. A similar paradox is seen in Europe. While regulators prepare to publish the results of stress tests of the largest European banks on Friday, political and financial leaders sound surprisingly optimistic in their expectations of the outcome, writes Wall Street Journal. Sentiment among investors are fundamentally different, as many believe that some European banks experiencing serious difficulties. Given that the U.S. government made 10 of 19 largest banks in the country to attract more capital after the stress testing them in 2009, very good results in Europe may undermine the feeling of confidence that European politicians try to regain. According to economists of the Royal Bank of Scotland if the Greek banks withstand the test without a problem, the markets may appear skeptical about whether the tests were sufficiently stringent and that give an objective assessment of the state of the financial system of the Old Continent. One of the banks that tests will show that there are difficulties, the German mortgage lender Hypo Real Estate. It told the Wall Street Journal source familiar with the matter. We Hypo Real Estate is 100% government ownership, is expected to pass their toxic financial assets of 200 billion of bad bank “, supported by the Fund German financial market stabilization (SoFFin). Hypo may request a further 2 billion capital Sofiin, having already received 8 billion.
Recent optimism about the ability of stress testing to allay fears about the European banking system increase the share prices of European banks and increase the rate of the euro against the dollar and pounds. The European economy still has many challenges, as demonstrated by its decision of Moody’s credit rating to reduce Ireland and the failure of negotiations between Hungary and IMF. In Greece, the government representatives, however, remain confident about the health of banks, despite an increasing share of overdue loans and declining liquidity. Analysts said Greek banks are among those most likely to need capital after the stress tests. But his optimism with Greek government officials undermine the credibility of the entire test process. These concerns are exacerbated by the lack of transparency on the stress tests. For them, just know that will be undertaken by regulatory authorities of 20 countries whose banks will be tested and will be coordinated by the London-based Committee of European Banking Supervisors, who fight for consensus on the methodology of the tests. It is not clear how the parameters of the test will be announced along with its results Friday. In testing will involve the largest 91 banks in Europe who hold at least 50% of total banking assets in each of the participating 20 countries. This includes 16 members of the eurozone, Britain, Denmark, Poland and Sweden. Investors, bankers and some European government officials believe that to earn trust and confidence, stress test must show that there are endangered banks. Furthermore, Greek banks, analysts expect some small and medium-sized Spanish and German banks find themselves with insufficient capital.

Asian markets turned back

Viliyana Filipova — Thu, 20 May 2010 10:08:31 +0000

The stock market indexes in Asia and the Pacific region remained negative territory for the fifth session today because of concerns about Debt Crisis in Europe and the imposition of additional restrictions in Germany on securities trading in financial markets. The regional MSCI Asia Pacific Index fell 1.8 percent to 112.69 points and is on track to finish the session at its lowest level since the beginning of September 2009, according to Bloomberg. Regional stock measure goes down rapidly in the last month, having completed all sessions of decline since the beginning of May, not two. Regional economic data today showed that Japan’s economy has surged for the fourth consecutive quarter, which, however, was weaker than expected amount of 1.2% quarterly and 4.9% of equated to annual basis. Meanwhile, Singapore has announced record growth of 38.6 percent on an annual basis aligned to the base. Nevertheless, the exchange in Tokyo the Nikkei 225 fell by 1,5% to 10 030.31 points and the Singapore Straits Times index major retreat by 0,4% to 2 763.89 points. Most among national indexes in the region, however, lower South Korean Kospi, which lost 1.8 percent to 1600 points. This gave rise to the news that South Korea has accused its northern communist neighbor that has sunk its warship in March with a torpedo.
Asian investors remained cautious exchanges because of yesterday’s surprise decision to ban Germany uncovered short sales of the largest banks and insurers in the country to Mar. 2011, and speculation with swaps for protection against default of the euro area. Rising raw materials failed to support the mining companies on the stock exchange in Sydney, which are among the best losers in this month because the Australian Government’s intentions to raise taxes on their profits. Australian index of blue chip S & P / ASX fell 200 by 1,6% to 4316 points, while New Zealand’s NZX 50 fell by 0,3% to 3 111.42 points. Wide Chinese Shanghai Composite Index ended the session with a decline of 1.2% to 2 555.94 points and Hong Kong Hang Seng retreated by 0.2% to 19 545.83 points worries that the appreciation of the dollar and the debt crisis in Europe will slow the growth of Chinese economy. China’s currency is pegged to the U.S. dollar, which means that exports of local producers around the world without the United States, more expensive with U.S. money.

Muriel Siebert: The average investor has no confidence in the market

Viliyana Filipova — Thu, 08 Apr 2010 10:48:41 +0000

“The average investor has no confidence in the market it has a different attitude towards it,” says the Wall Street veteran Muriel Siebert. “We want a market in which people accumulate their retirement savings. They no longer do so as before. I have clients who hold full cache because no longer have the same confidence. For them money is simply not working, “she said. Born during the Great Depression Siebert has witnessed many economic cycles as a trader on Wall Street and banking supervisor. She began her career as an intern analyst for 65 dollars a week to become the first woman to place the New York Stock Exchange in 1967. Today she heads the brokerage firm Muriel Siebert & Co. “What scares me is disappointing and that the public has no confidence in the market,” she Cava. “We do not see people who traded before. You bring them back. Mass investors contributed to many successes of this country.”
Siebert blames lack of transparency, especially in derivatives. They have their markets, but must be regulated, says she. “Before we had more transparency about what is happening in the markets,” she remembers. “Trade was real, so that could be analyzed a little better. You can make light of OTC block trades”. To return to ordinary investors in stocks, as it is compelling global regulation on securities.
Siebert trying to meet with President Obama to recommend him to concentrate first on creating jobs, and then on health reform. She calls for bipartisan cooperation to find the next technological breakthroughs. According to her development of new industries is the key to reviving the economy. During her life Muriel Siebert broke many barriers to women. Often called “the first financial Lady.” It continues to claim that women’s presence in the world of finance is still inadequate, despite some appointments to key positions.

Sharp movements in the crude oil market after the Fed decision

Viliyana Filipova — Fri, 19 Feb 2010 17:37:07 +0000

The price of oil recorded several sharp movements in the past day. The black gold initially rose significantly, passing over 79 dollars a barrel, then retreated with quotes around the dollar. As part of yesterday’s session of the New York Stock Exchange with oil delivery in March rose by 2,2 percent to 79.06 dollars per barrel, the highest close since 14 January. It came because of the temporary stabilization of the euro, which has triggered interest in investing in commodities. Late in the evening, however, the U.S. Federal Reserve raised the discount rate by a quarter percentage point to 0.75 percent, which acted as a powerful catalyst for the dollar. Thus, the dollar rose to 1,3485 EUR / USD, after yesterday the euro was more than 100 pips more. This led to reduced interest in investing in raw materials and oil prices fell with 1,3 per cent to just over $ 78 a barrel. The Exchange in London yesterday of Brent crude oil with delivery in April rose by 2 percent to 77.78 dollars per barrel.
At night, however, quotations retreated with 1,3 per cent to 76.87 dollars per barrel.

Optimistic start of Europe markets

Viliyana Filipova — Mon, 15 Feb 2010 22:02:45 +0000

The indexes in Europe ended with the first trading increases day of the week. Thus the old continent growth seen for the fifth time in six sessions. Today, the regional index Dow Jones Stoxx 600 advanced by 0,4 percent to 242 points. It was continued growth of 1,5 per cent achieved over the last week. Then indexes in Europe have risen in four consecutive days, but weak GDP data for the euro area led to a decline on Friday. Greece continues to be the leading news in the financial circles of the Old Continent. Today, the eurozone finance ministers meeting there to discuss the problems of our southern neighbors. ECB President Jean-Claude Trichet did ask the country to tighten its fiscal policy to overcome. Meanwhile, the EU asked Greece to provide explanations for derivative transactions, which was probably artificially lowering the budget deficit in the country. On Britain’s FTSE 100 rose by 0,5 per cent to 5 167 points, the DAX in Germany increased by 0,2 percent to 5 511 points. In France the CAC 40 advanced even by 0,3 percent to 3 609 points. In Central and Eastern Europe also overwhelming optimism. In Hungary BUX added 0.8 percent, while Romanian Beth index advanced by 0,5 percent. Exchanges in the Republic of Poland and even had achieved increases in indices of respectively 1.5 and 1,6 per cent.
Today it became clear that the Bulgarian public companies will be able to be traded and the stock exchange in Warsaw. In today’s first day of the week most markets in Asia remained closed due to meet the new lunar calendar year, as a small open trading markets recorded falls. No session today in the United States, where he celebrates the Day of the president.

Markets tighten noose around Portugal

Viliyana Filipova — Tue, 02 Feb 2010 22:02:35 +0000

Trade in the market for bankruptcy protection under state or contracts for protection against non-performing its obligations (credit default swaps), today passed more calmly than last week, police MarketWatch. Against this background, risk premiums of almost all countries decreased due to a narrowed and the defense costs of unserved. This happens with Spain and Greece, which last week were monitored under a magnifying glass by market participants. Not such a situation, however, with Portugal as the country risk premium went up again. According to the CMA DataVision, which provides data on the cost of credit swaps, the primary risk indicator for Greece is back below the 4 per cent and 3.97 per cent. This means that to protect the position of EUR 10 million in state bonds to Greece need to pay a premium of 397 thousand euros per year. In Spain also observed shrinkage of the risk spread, and he is now 1.61 percentage points. Although the overall stabilization of the situation, however, Portugal remained under strong pressure from the market. The country risk premium is increased to 2.34 percent from 2.27 percent on Friday.
Swaps for protection against non-performing obligations are traded on unregulated derivatives market like. Their function is to be marketed as insurance in case of suspension of payments on a bond issue. In case the issuer stops paying its obligations, the buyer gets suspend payments from the counterparty to the derivative transaction, or its vendors.

Painful weekly decline for the Japanese and Chinese markets

Viliyana Filipova — Mon, 30 Nov 2009 10:13:22 +0000

Today’s session brought indexes in Asia and the Pacific region, the strongest decrease their day for the past eight months, but ended the week with a painful decline in most markets in the region. Stood at the head Japanese, Chinese and South Korean securities market, which lost between 4% and 6% of its market capitalization over the past five trading sessions. Reason for mass sales became the news of the failure of the Dubai government investment holding company Dubai World to meet its obligations to creditors. The Fund has a debt for 59 billion dollars, equivalent to most of Dubai’s foreign debt to 80 billion dollars. Meanwhile, the Japanese yen rose to its highest rate against the dollar since 1995. Financial difficulties of the Dubai World stocks fell on banks and insurers in the region, led by HSBC Holdings, whose shares fell nearly 8 percent. This is due to investor concerns about exposure of large international banks to fund Dubai. Construction companies also suffered because of the activity of the Dubai World in the construction sector. The regional index MSCI Asia Pacific, which brings together companies from stock markets in ten Asian countries plus Australia and New Zealand, slid 3.2 percent to 113.78 points. This is the strongest decrease in the stock measure within one day of 30 March so far. Financial companies in its composition have contributed most to the sharp drop in MSCI Asia Pacific. The good news that unemployment in Japan fell for the third consecutive month in October, while consumer spending increased household failed to stop reductions in the indexes. Thus MSCI Asia Pacific to cut their lead to five-year bottom of 9 March to 61 percent. For the past five trading sessions the index fell by 2,7 percent.
The Japanese Nikkei 225 fell 3.2 percent to 9081.5 points. Appreciation of the yen, Japanese exporters worried as Sony, Canon and Toyota, which warned that this rate against the dollar will fail to meet set financial goals. After news of the Japanese government signaled that it may intervene in currency markets to halt the yen’s appreciation. Hong Kong’s Hang Seng was down by 4.8% to 21 134.5 points to a major Chinese Shanghai Composite Index lost 2.4% to 3 096.3 points. Earlier this week exchanges in Shanghai, Chengen and Hong Kong dropped because of fears that planned by the major banks in China issues new shares will dilute the value of existing equity. Compared to last Friday the Nikkei 225 fell by 4,4%, Hang Seng – by 5.9% and Shanghai Composite has yielded at most 6.4%. Strong weekly decline of 5.9 percent and the broad record of the Exchange Kospi index in Seoul. It slid 4.7 percent to 1524.5 points, while Dubai is not expected to cause injury crisis on the Korean economy due to limited investment in South Korea in Dubai.
Australian Index of blue chip S & P / ASX 200 is lower by 2.9 percent to 4572.1 points, mainly due to mining and energy companies after metals prices and oil prices fell significantly during today’s e-commerce in Asia. In New Zealand NZX 50 is decreased by 1.1 percent to 3094.4 points, a weekly decline in two Pacific stock exchanges amounted to 2.4% and 0.6%. U.S. futures broader index S & P 500 shows a sharp drop in Wall Street, while European markets fell heavily yesterday, as the pan-European index Dow Jones Stoxx 600 slipped 3.3 percent. Red wool, which includes the stock exchange in Sofia shows that financial markets remain very sensitive to bad news relating to bankruptcies and financial difficulties of companies. The price of oil futures with delivery in January fell by more than 6% in electronic trading on the New York oil exchange. Prices of most metals is lower, led by copper, which is cheaper by almost 5%. Commodity prices are often an accurate indicator is the tendency of investors to buy riskier assets such as shares and high-currencies.

Greenspan: USA do not need of rescue plan

Viliyana Filipova — Mon, 05 Oct 2009 10:14:58 +0000

The former Federal Reserve Chairman Alan Greenspan said the U.S. believes that America does not need a new plan to stimulate the economy. Moreover, the specialist believes that before it comes to positive news about the labor market, unemployment in the country probably will reach 10 percent. Greenspan indicates that there are at least two reasons not to consider ideas for developing a new rescue plan. One is that only 40 percent of the projected under the current plan funds were allocated to the economy. Others relate to the debate on the effectiveness of such plans and disputes whether they are needed, writes Market Watch. The specialist believes that, some signals to improve the economy of the country. However, labor markets remain under pressure and unemployment will likely continue to grow in the short term, Greenspan believes.
According to him, will not be able to observe a decline in unemployment, while the statistics reported in more than 100 thousand cuts month. In the last month, for instance-offs were again