Jul 19 • Market Commentaries • 4514 Views • Comments Off on Earning and Corporate Moves Push Stocks and Commodities Upward
U.S. stocks rose for a second day after companies from Intel Corp. to Honeywell International Inc. reported profit that beat estimates and housing starts increased to the fastest rate in almost four years.
Asian stocks rose, with the benchmark index headed toward its biggest gain in almost three weeks, after U.S. housing starts jumped to the highest level in four years.
Today markets are expected to open on a positive note and likely to remain firm during the day.
The Bank of Japan (BOJ) scrapped a 0.1% yield floor for government bond purchases, opening the door to the possibility of buying debt with negative returns. The central bank removed the limit on purchases of securities with maturities of one year or less in its so-called Rinban operation.
New U.S. home construction rose in June to the highest level in almost 4 years, indicating the residential real estate market is strengthening even as other parts of the economy cool. Housing starts rose 6.9% to a 760,000 annual pace after a revised 711,000 rate in May that was faster than initially estimated.
Fed Reserve sought to assure lawmakers the Fed can limit inflation while providing record stimulus and won’t allow consumer prices to rise in return for faster economic growth. It will be a similar pattern to what we’ve seen in previous episodes where the Fed cut rates, provided support for the recovery, and when the recovery reached a point of takeoff where it could support itself on its own, then the Fed pulled back, took away the punch bowl, Bernanke said.
Oil traded near the highest close in seven weeks after U.S. gasoline stockpiles unexpectedly dropped and housing starts beat estimates, signaling fuel demand may increase amid an economic recovery.
The yen advanced against most major counterparts as concern about the implementation of measures to stem Europe’s debt crisis supported demand for Japan’s currency as a haven. The talk of the markets yesterday was Wall Street earning reports and corporate activities around the globe
IBM raises earnings outlook, cites weak tech spending IBM raised its full-year earnings target, even as it posted a quarterly revenue shortfall, reflecting its ability to manage costs as global technology spending sputters. IBM now expects full year EPS – excluding items – of at least $15.10, versus at least $15.00 previously.
Adidas to close its only factory in China Adidas AG is closing its only company-owned sportswear factory in China later this year to streamline manufacturing. Spokeswoman Sabrina Cheung said China remained a key market for sourcing goods for Germany-based Adidas with more than 300 supplier partners in the country.
PetroChina, African Petroleum may sign deal for Africa blocks PetroChina said it had signed a MoU with African Petroleum Corp for a strategic investment in Africa. PetroChina has been given until Aug. 31 to agree an investment in up to 20% of Block LB-09 in Liberia and up to 20% in one or more exploration blocks in The Gambia, Ivory Coast, Liberia, Senegal and Sierra Leone.
Honeywell International profit up 11.7%, tops Wall Street view Honeywell Intl posted an 11.7% rise in quarterly profit, topping Wall Street forecasts, as strong U.S. demand for building-control systems and specialty chemicals offset weakness in Europe. The company also raised the low end of its full-year profit forecast by 5 cents, and now anticipates 2012 earnings of $4.40-$4.55 per share, representing growth of 9-12%.
Tycoons to start talks with BP on buying TNK-BP stake A group of Soviet-born tycoons said it had notified BP of its intention to start talks on increasing its stake in Russia’s third largest crude producer, TNK-BP. BP put its stake in TNK-BP up for sale on June 1 after a breakdown in relations with the AAR consortium, with which it shares control over a firm that accounts for almost a third of BP’s total crude output.
Bank of America plans $3 bn of new cost cuts BoA Corp said it plans to slash costs by $3 bn annually in commercial lending, investment banking and wealth management, becoming the latest big bank to take aim at expenses in a sluggish economy.
« FXCC Market Review July 19 2012 The BoE Keeps All Doors Open, Minutes Help Support the EUR/GBP »
Earning and Corporate Moves Push Stocks and Commodities Upward
Jul 19 • Market Commentaries • 4514 Views • Comments Off on Earning and Corporate Moves Push Stocks and Commodities Upward
U.S. stocks rose for a second day after companies from Intel Corp. to Honeywell International Inc. reported profit that beat estimates and housing starts increased to the fastest rate in almost four years.
Asian stocks rose, with the benchmark index headed toward its biggest gain in almost three weeks, after U.S. housing starts jumped to the highest level in four years.
Today markets are expected to open on a positive note and likely to remain firm during the day.
The Bank of Japan (BOJ) scrapped a 0.1% yield floor for government bond purchases, opening the door to the possibility of buying debt with negative returns. The central bank removed the limit on purchases of securities with maturities of one year or less in its so-called Rinban operation.
New U.S. home construction rose in June to the highest level in almost 4 years, indicating the residential real estate market is strengthening even as other parts of the economy cool. Housing starts rose 6.9% to a 760,000 annual pace after a revised 711,000 rate in May that was faster than initially estimated.
Fed Reserve sought to assure lawmakers the Fed can limit inflation while providing record stimulus and won’t allow consumer prices to rise in return for faster economic growth. It will be a similar pattern to what we’ve seen in previous episodes where the Fed cut rates, provided support for the recovery, and when the recovery reached a point of takeoff where it could support itself on its own, then the Fed pulled back, took away the punch bowl, Bernanke said.
Oil traded near the highest close in seven weeks after U.S. gasoline stockpiles unexpectedly dropped and housing starts beat estimates, signaling fuel demand may increase amid an economic recovery.
The yen advanced against most major counterparts as concern about the implementation of measures to stem Europe’s debt crisis supported demand for Japan’s currency as a haven. The talk of the markets yesterday was Wall Street earning reports and corporate activities around the globe
IBM raises earnings outlook, cites weak tech spending IBM raised its full-year earnings target, even as it posted a quarterly revenue shortfall, reflecting its ability to manage costs as global technology spending sputters. IBM now expects full year EPS – excluding items – of at least $15.10, versus at least $15.00 previously.
Adidas to close its only factory in China Adidas AG is closing its only company-owned sportswear factory in China later this year to streamline manufacturing. Spokeswoman Sabrina Cheung said China remained a key market for sourcing goods for Germany-based Adidas with more than 300 supplier partners in the country.
PetroChina, African Petroleum may sign deal for Africa blocks PetroChina said it had signed a MoU with African Petroleum Corp for a strategic investment in Africa. PetroChina has been given until Aug. 31 to agree an investment in up to 20% of Block LB-09 in Liberia and up to 20% in one or more exploration blocks in The Gambia, Ivory Coast, Liberia, Senegal and Sierra Leone.
Honeywell International profit up 11.7%, tops Wall Street view Honeywell Intl posted an 11.7% rise in quarterly profit, topping Wall Street forecasts, as strong U.S. demand for building-control systems and specialty chemicals offset weakness in Europe. The company also raised the low end of its full-year profit forecast by 5 cents, and now anticipates 2012 earnings of $4.40-$4.55 per share, representing growth of 9-12%.
Tycoons to start talks with BP on buying TNK-BP stake A group of Soviet-born tycoons said it had notified BP of its intention to start talks on increasing its stake in Russia’s third largest crude producer, TNK-BP. BP put its stake in TNK-BP up for sale on June 1 after a breakdown in relations with the AAR consortium, with which it shares control over a firm that accounts for almost a third of BP’s total crude output.
Bank of America plans $3 bn of new cost cuts BoA Corp said it plans to slash costs by $3 bn annually in commercial lending, investment banking and wealth management, becoming the latest big bank to take aim at expenses in a sluggish economy.
« FXCC Market Review July 19 2012 The BoE Keeps All Doors Open, Minutes Help Support the EUR/GBP »