US politicians are facing the fiscal cliff September 25, 2012 FOR months, the markets have had their eyes fixed on the Federal Reserve; the contents of the Federal Open Market Committee’s (FOMC) monthly minutes and the possibility of another round of quantitative easing (QE3). But now the US has another problem to deal with – the so-called “fiscal cliff” at the end of 2012, when [...]
Silver surfers prepare to leave gold bugs behind as they ride the wave September 25, 2012 FOLLOWING recent policy announcements from the Federal Reserve, European Central Bank (ECB) and the Bank of Japan, making an investment case for metals may not be original. But, with rallies off lows in June, some may prefer silver over gold. It can be argued that silver has more scope to regain its record high, as [...]
US stocks drop as Caterpillar slows the Dow September 24, 2012 US stocks edged lower yesterday as a disappointing forecast from Caterpillar and weak German data increased concerns that global growth may remain sluggish. Just before the close, Caterpillar cut its earnings forecast for 2015. Its shares fell 0.9 per cent to $90.87 and were the top drag on the Dow. An index of German business [...]
FTSE dips on poor European data and weakness in price of copper September 24, 2012 BRITAIN’S top share index fell yesterday, led by miners, as dull European data kept the focus on a gloomy economic outlook, tempering the boost given to markets by recent central bank stimulus moves in Europe and the United States. Germany’s Ifo index of business sentiment fell for a fifth month running, bucking expectations for a [...]
Hesitant Spain is afraid to pull bailout trigger September 24, 2012 HOW quickly sentiment can change. Last week, traders were triumphantly jubilant after central banks poured liquidity into markets. If price reflects all known information, you would have thought that the world’s financial ills were cured. This week, the focus is back on growth, or to be more specific the lack of it. Although Spain’s Ibex [...]
Bank intervention makes risk management critical September 24, 2012 FX360 CENTRAL banks have never been averse to interventionist strategies. But the approach has certainly fallen from favour – and in spectacular fashion – on a couple of occasions in recent memory. Just over twenty years ago, the UK was desperate to stay within the European Exchange Rate Mechanism (ERM), a system that required each [...]
THE TIPSTER | Rebuilding dominance September 24, 2012 AS TALK of a housing recovery gains momentum, investors may be looking to add growth-orientated stocks to their portfolio. Persimmon has seen tough times since the onset of the financial crisis, with shares falling from their peak above 1,500p. However, the house builder has added 67 per cent to its share price this year and [...]
Traders fear nervous consumers September 24, 2012 THE link between the willingness of a consumer in Indianapolis to go out and buy a new car and the volatility of an exchange-traded derivative may not be immediately obvious. But, in a world where central banks have long since abandoned traditional monetary policy, interest rates are at rock bottom, and the US Federal Reserve [...]
Analyst picks for 25 September 2012 September 24, 2012 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Long Australian dollar-dollar Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few days A descending trendline from the highs of 9 August and 23 August has kept the Australian dollar-dollar pair supported over the past four days. A base could now be [...]
Bank to update on UK lending September 23, 2012 THE UK corporate week begins with a busy day today, as a raft of companies update the market. Dairy Crest, Manganese Bronze, Qinetiq, Finsbury Food, Shore Capital, A.G. Barr, Brady and Petra Diamonds are all set to give reports. Tomorrow brings further company news from Albemarle & Bond, Close Brothers, and The Daily Mail and [...]