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Asian Markets End In Positive Territory
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Wednesday, December 2, 2009
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Dec 2 2009 , (RTTNews)
The markets across Asia ended in positive territory on Wednesday but well off the highs as traders preferred to lock in gains and move to sidelines ahead of key economic data from the U.S later in the day and during the course of the week. Sharp gains in gold prices and higher commodity prices led the gains in the markets across the region.In Japan, the benchmark Nikkei 225 Index gained 36.74 points, or 0.38% to 9,609, while the broader Topix index of all First Section issues advanced 0.1%, to 859..
On the economic front, the Bank of Japan revealed that the monetary base in the country rose 3.8% year-over-year in November, standing at 92.2 trillion yen, after having risen 4.4% year-over-year during October. According to the data released, banknotes in circulation eased 0.3% on year to 75.7 trillion yen after coming in flat a month earlier, while coins in circulation were down 0.4% to 4.5 trillion yen after shedding 0.2% in the previous month.
Automotive stocks gained following better auto sales results in the U.S. from automakers for November. Toyota Motor gained 1.14%, Honda Motor rose 2.14%, Nissan Motor Co. climbed 2.48%, and Hino Motors surged up 5.49%.
Trading companies also ended in positive territory following higher commodity prices. Mitsubishi Corp. gained 2.24% and Toyota Tsusho rose 1.87%.
Mixed trading was witnessed among the banking stocks. Mitsubishi UFJ Financial declined 2.21% and Sumitomo Mitsui Financial lost 2.25%. However, Resona Holdings edged up 0.21% and Mizuho Financial added 0.61%.
Dollar Backpedals Versus Sterling On Easing Dubai Concerns
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Dec 2 2009 , (RTTNews)
The dollar saw little movement versus most majors Wednesday morning, but continued to drift lower against the resurgent sterling as the shock of Dubai's debt crisis has all but worn off.Dubai is reportedly in talks to restructure $26 billion of debt, easing concerns about UK lenders' exposure to the Emirate's debt .
The dollar fell to 1.6700 versus the pound, giving back all of its gains from late last week. With the loss, the buck eased back toward November's 3-month low of 1.6877.Meanwhile, the buck continued to stabilize versus the yen as yet another Japanese official ignaled concerns about the impact of the rising yen on the nation's export-driven economy.
Japanese Prime Minister Yukio Hatoyama was the latest to talk the currency down, a day after the Bank of Japan voted unanimously to offer about 10 trillion yen ($115.8 billion) in short-term loans to commercial banks. Also, the central bank retained its key rate at near zero.
The dollar fetched Y87.15, staying away from a 1995 low of 84.80 set last week
Crude Oil Stockpiles Rise 2.1 Million Barrels
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Dec 02 2009 , (RTTNews)
Crude oil inventories unexpectedly rose last week, according to data released by the Energy Information Administration. Gasoline stockpiles rose much more than expected.U.S. commercial crude oil inventories increased by 2.1 million barrels from the previous week. A drop of 1.3 million barrels was projected. At 339.9 million barrels, U.S. crude oil inventories are above the upper limit of the average range for this time of year.
Total motor gasoline inventories rose by 4.0 million barrels last week, much larger than the 900,000-barrel increase projected by analysts. Both finished gasoline inventories and blending components inventories increased last week. Distillate fuel inventories decreased by 1.2 million barrels. Propane/propylene inventories decreased by 900,000 barrels.
Dollar hits 14-year low on yenBy Lindsay Whipp in Tokyo
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Thursday, November 26, 2009
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The yen briefly rose to a 14-year high against the dollar on Thursday but comments from top government officials reinforced traders’ views that there was little chance of immediate Japanese intervention in the currency market.
Hirohisa Fujii, finance minister, said “appropriate action” could be taken if currency moves were “abnormal”, but gave no hint of quick action to stem the fall of the dollar, which at one point dropped to Y86.30 against the yen.
”At this point, [it’s a matter of] watching closely,” Mr Fujii said.
The yen traded at Y86.77 as of early evening in Tokyo.
Traders said the dollar’s fall against the yen was driven by US rather than Japanese factors, and Yoshihiko Noda, deputy finance minister, told Reuters that the government was not thinking of intervening in the currency market at this point.
Mr Fujii has in the past argued that unilateral intervention would be unlikely to be effective and that it would be wrong for Japan to engage in ”competitive devaluation”.
Muneteru Togawa, a director in the foreign exchange department at UBS in Tokyo, said: “The market knows that the [Japanese] government can’t intervene unless there was an agreement for some sort of internationally co-ordinated action.”
A stronger yen is a headache for Japan’s new Democratic party government, as it makes exports less competitive, threatening to derail a fragile economic recovery. Japan relied on shipments overseas for a third of its expansion in the quarter ended September.
While the yen has actually risen only 3.8 per cent against the dollar this year, Shoji Muneoka, head of the Japan Iron & Steel Federation, yesterday underscored widespread concerns among manufacturers, saying that unless the yen’s rise was reined in, the economy would be ”damaged”.
Export-related stocks fell in Tokyo, but the market still outperformed many in the region, with the Topix closing down 0.5 per cent lower at 829.58.
Since becoming finance minister in September, Mr Fujii has appeared relaxed about a stronger yen, noting that it can help the domestic economy by making imports cheaper.
Mr Fujii’s comments did little to stop the slide of the dollar, which dropped to its low against the yen after he spoke.
Christian Carrillo, a senior rates strategist at Société Générale, said: “Effectively the market [was] pushing [the] yen stronger to test what is an ‘abnormal movement’”.Yuji Saito, head of foreign exchange at SocGen in Tokyo, added that investors had been closing their dollar positions ahead of the Thanksgiving holiday in the US, which had pushed the currency higher, while Y87.10 was a major trigger point for selling among investors such as Japanese day traders, exacerbating the dollar’s decline.
”At this point, [it’s a matter of] watching closely,” Mr Fujii said.
The yen traded at Y86.77 as of early evening in Tokyo.
Traders said the dollar’s fall against the yen was driven by US rather than Japanese factors, and Yoshihiko Noda, deputy finance minister, told Reuters that the government was not thinking of intervening in the currency market at this point.
Mr Fujii has in the past argued that unilateral intervention would be unlikely to be effective and that it would be wrong for Japan to engage in ”competitive devaluation”.
Muneteru Togawa, a director in the foreign exchange department at UBS in Tokyo, said: “The market knows that the [Japanese] government can’t intervene unless there was an agreement for some sort of internationally co-ordinated action.”
A stronger yen is a headache for Japan’s new Democratic party government, as it makes exports less competitive, threatening to derail a fragile economic recovery. Japan relied on shipments overseas for a third of its expansion in the quarter ended September.
While the yen has actually risen only 3.8 per cent against the dollar this year, Shoji Muneoka, head of the Japan Iron & Steel Federation, yesterday underscored widespread concerns among manufacturers, saying that unless the yen’s rise was reined in, the economy would be ”damaged”.
Export-related stocks fell in Tokyo, but the market still outperformed many in the region, with the Topix closing down 0.5 per cent lower at 829.58.
Since becoming finance minister in September, Mr Fujii has appeared relaxed about a stronger yen, noting that it can help the domestic economy by making imports cheaper.
Mr Fujii’s comments did little to stop the slide of the dollar, which dropped to its low against the yen after he spoke.
Christian Carrillo, a senior rates strategist at Société Générale, said: “Effectively the market [was] pushing [the] yen stronger to test what is an ‘abnormal movement’”.Yuji Saito, head of foreign exchange at SocGen in Tokyo, added that investors had been closing their dollar positions ahead of the Thanksgiving holiday in the US, which had pushed the currency higher, while Y87.10 was a major trigger point for selling among investors such as Japanese day traders, exacerbating the dollar’s decline.
Euro / Dollar Technical Forex Analysis for Forex Traders
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Tuesday, November 24, 2009
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The Euro broke the resistance 1.4935, and came very close to our first suggested target at 1.4998, when it reached a top at 1.4990, before retreating back to 1.49 this morning. Short-term resistance is provided by the falling trendline from yesterday's high on the intraday charts, which is currently at 1.4931. If this resistance is overtaken, then the technical outlook will have the strength to reach 1.4998 first, and if this is broke we have the right to expect 1.5082 for the first time this year.
