Asian News

[Ichiro]

5feb-U.S. Stocks Post Biggest Weekly Gain Since August; Boeing Rises

By Michael Patterson

Feb. 3 (Bloomberg) -- U.S. stocks posted their biggest weekly advance since August, as optimism that consumer spending will drive economic and profit growth without fueling inflation sent the Standard & Poor's 500 Index to a six-year high.

Earnings from Boeing Co. that exceeded analysts' estimates helped the Dow Jones Industrial Average cap its longest monthly winning streak since 1995 and post its fifth record of 2007. Energy shares led the S&P 500's rally as Exxon Mobil Corp. and Valero Energy Corp.'s profit topped expectations and oil prices climbed to the highest this year.

The Federal Reserve on Jan. 31 left interest rates unchanged and said the economy is picking up while the pace of price increases has slowed. Government reports that showed consumer spending propelled economic growth last quarter while inflation gauges rose at a slower pace confirmed the predictions of policy makers including Fed Chairman Ben S. Bernanke.

``The economy is indeed on a nice expansionary path that's non-inflationary. It's perfect from the Fed's point of view,'' said John Kattar, who helps oversee $1.8 billion as chief investment officer at Eastern Investment Advisors in Boston. ``It's good news for stocks.''

For the week, the S&P 500 gained 1.8 percent to 1448.39, the highest since September 2000. The rise was the largest since a 2.8 percent climb in the period ended Aug. 18.

for info:

http://www.bloomberg.com/apps/news?pid=20601087&sid=a8.F0rBgQ7pc&refer=home

 

[Ichiro]

5feb-U.S. Brings a WTO Case Against China Over Subsidies (Update3)

By William Roberts and Richard Miller

Feb. 2 (Bloomberg) -- The U.S. lodged the largest trade complaint against China yet at the World Trade Organization alleging that the Asian nation unfairly subsidizes its steel, wood products, information technology and other industries.

``China uses its basic tax laws and other tools to encourage exports and to discriminate against imports of a variety of American manufactured goods,'' U.S. Trade Representative Susan Schwab said in describing the complaint today in Washington. China's industrial subsidies are prohibited by its 2001 agreement to join the WTO, she said.

Today's action is the first step in what may be a lengthy process to determine whether China's subsidies violate WTO rules. First, the two countries must try to negotiate a solution. If those talks fail, the U.S. may ask the Geneva-based WTO to arbitrate. If the WTO ruled for the U.S., China would have to remove the subsidies or face U.S. penalties on its exports. If China wins, it could keep the subsidies.

for info:

http://www.bloomberg.com/apps/news?pid=20601089&sid=absj27NreMEA&refer=china

 

[Ichiro]

5feb-Tata, Buying Corus, Will Prove Detractors Wrong: Andy Mukherjee

By Andy Mukherjee

Feb. 1 (Bloomberg) -- The most dramatic change in Indian business in the past decade has been the surge in ambition.

Take Ratan Tata, the Mumbai-based tycoon who this week won the race to buy Britain's Corus Group Plc, beating his Brazilian rival Benjamin Steinbruch in a closely contested auction.

At 6.2 billion pounds ($12 billion), Tata Steel Ltd.'s offer may be a pygmy by U.S. standards of deal-making.

It is, however, the largest ever attempted by an Indian company and, when completed, may just make the league table of Top 30 all-cash transactions globally.

Ratan Tata calls it ``a moment of great fulfillment.'' Shareholders in his company don't quite see it that way.

Several analysts are suggesting that Tata has gone overboard in trying to best Steinbruch's Cia. Siderurgica Nacional SA, or CSN. Tata Steel raised its offer to 608 pence a share, from 455 pence initially. CSN bid 603 pence.

The leveraged deal, they say, may have put the 100-year-old Indian company's finances at risk. Tata Steel shares fell almost 11 percent in Mumbai yesterday.

For Ratan Tata, who came to the helm of the salt-to-software conglomerate in 1991, this won't be the first time the markets thought he was being reckless.

In fact, the tolerance level for what investors considered imprudent corporate adventurism used to be much lower.

On Jan. 15, 1998, Tata had unveiled to a crowd in New Delhi the first example of a small car put together by the truck-making division of his group.

http://www.bloomberg.com/apps/news?pid=20601039&sid=aizj91AZyrkI&refer=columnist_mukherjee

 

[Ichiro]

4feb-- Daily FX
US Dollar - Non-Farm Payrolls Drives the EUR/USD Back into Its Trading Range
Friday February 2, 4:32 pm ET
By Kathy Lien, Chief Strategist strategist@dailyfx.com

• US Dollar - Non-Farm Payrolls Drives the EUR/USD Back into Its Trading Range
• Euro Retreats on Speculation that Next ECB Rate Hike Will be Their Last
• British Pound Continues to Rally on Good Data


US Dollar - Over the past year, the US non-farm payrolls report has become incredibly difficult to trade. Large revisions are made frequently which is reducing the accuracy and reliability of each individual report. This is exactly what happened this morning when traders first took the US dollar lower on the disappointing headline release but quickly erased those losses when they saw the massive revisions for the prior months. More specifically even though payrolls increased by only 111k in December compared to the market’s 150k forecast, the number of additional jobs added back to the November and December payrolls totaled 81k, washing out the 39k shortfall. The massive revision was for the year ending in March 2006 where we actually saw payrolls increase by 754k, the largest revision on record. The report was not dollar bearish but at the same time it was not completely dollar bullish. Despite the overall health of the labor market, the increase in the unemployment rate and the tepid 0.2 percent rise in wage growth is another reason why the Federal Reserve has chosen to hold back any interest rate hikes. We need to see at least 2 more months of solid data before the Federal Reserve will actually consider tightening monetary policy. The NFP report has driven the EUR/USD right back into its month long 1.2865 to 1.3065 trading range. In the week ahead, the economic calendar is very light which could keep the currency pair range bound. The only notable release is service sector ISM on Monday. Traders should keep an eye on oil prices which have risen back to $59 a barrel. With little data on tap, the impact of higher oil prices could become a major talking point in the markets once again. The G7 meeting the following weekend will also receive center focus.


Japanese Yen - The price activity of the Japanese Yen continues to be very mixed as the market speculates on the potential outcome of next weekend’s G7 meeting. After US Treasury Secretary Paulson’s comments yesterday, the US appeared unconcerned about the recent weakness in the Japanese Yen. However today they officially filed an unfair trade case against Beijing to the World Trade Organization. The US is claiming that China’s subsidies are illegal and they have put a big dent into the sale of US products in China. This is a big step away from the buddy versus bully approach that Paulson had advocated and signals that the US remains a protectionist. It will be interesting to see if there are any retaliatory measures by China before the G7. If there is, the US may be tempted to back the Eurozone in calling for more normalization in the currency policies in the entire region. There is little data on the Japanese economic calendar next week which will keep the G7 meeting the center focus.

for inof:http://biz.yahoo.com/fxcm/070202/1170455533990.html?.v=1

 

[Ichiro]

4feb- Daily FX
FX Correlations (January): How Do Currencies Move In Relation To Each Other?
Thursday February 1, 2:17 pm ET
By John Kicklighter, Currency Analyst strategist@dailyfx.com


In order to be an effective trader, it is important to understand how different currency pairs move in relation to each other. There are a few reasons why this is significant, but most importantly, it allows traders to understand their exposure. That is, having a portfolio that consists of the EURUSD and USDCHF is different than having a portfolio comprised of EURUSD and AUDUSD. As indicated in the tables below, over the past month, the EURUSD has had a strong negative correlation (-0.88) with the USDCHF and a relatively strong positive correlation with AUDUSD (+0.75). Therefore having a long EURUSD and long USDCHF exposure would generally lead to negated or nearly zero profit or loss because when the EURUSD rallies, USDCHF will sell off the majority of the time. Of course, these two currencies may have different pip values and the correlation is not perfect, so the P/L may not be exactly zero. On the other hand, holding long EURUSD and long AUDUSD exposures would be similar to nearly doubling up in one of the pairs since the correlation is so strong. Furthermore, we can tell from our tables that correlations shift with time. For example, the EURUSD has held a modest negative correlation to the USDJPY (-0.62) over the past year. However, for the past month alone, the relationship almost completely dissolves (-0.04). Shifts such as these can be partially explained by changes in the severity of monetary policy or changes in unique domestic conditions. Overall, having this knowledge will allow traders to effectively diversify and manage their portfolios.

for info:

http://biz.yahoo.com/fxcm/070201/1170361104638.html?.v=1

 

[Ichiro]

5feb-London explosion keeps pressure on European shares


By Ana Nicolaci da Costa

LONDON, Feb 5 (Reuters) - European shares extended losses on Monday after a letter bomb explosion in London hurt a market which had already come off last week's six-month highs in early trade as the earnings flood narrowed to a trickle.

The pan-European FTSE Eurofirst 300 index <.FTEU3> neared intra-day lows after police said a letter bomb exploded at a London office, hurting one employee.

By 1130 GMT, the index was 0.1 percent lower at 1,536.1 points after falling to near an intra-day low of 1,534.35 after reports of the explosion.


Britain's FTSE 100 .FTSE lost 13 points on the explosion news but regained some ground to trade 4.4 points or 0.1 percent lower at 6,306.5. Germany's DAX <.GDAXI> was down 0.2 percent while France's CAC 40 <.FCHI> was steady on the day.

Stocks came under pressure in early trade but had steadied before the explosion as talks of takeover bids and strong euro zone manufacturing data underpinned sentiment.

for info:

http://yahoo.reuters.com/news/artic...2-05_12-19-05_L05558151&type=comktNews&rpc=44

 

[Ichiro]

6feb-U.S. Economy: Expansion in Service Industries Accelerates

By Courtney Schlisserman

Feb. 5 (Bloomberg) -- Growth at U.S. service industries accelerated more than forecast last month, the latest sign the American economy is rebounding from last year's slowdown.

The Institute for Supply Management's non-manufacturing index, which includes construction companies, financial services firms and retailers, rose to 59.0, the highest since May, from 56.7 in December. Service industries make up almost 90 percent of gross domestic product.

The figures suggest consumers are still adding to growth after more than offseting a slump in factories and housing at the end of 2006. Inventories dwindled along with costs such as energy and transportation, the ISM survey showed.

``The report highlights the dichotomy we've been seeing for quite a while, where the industrial sector continues to go through a correction while the rest of the economy, excluding housing, is doing okay,'' said Haseeb Ahmed, an economist at JPMorgan Chase & Co. in New York. ``We don't need to worry about the spillover from housing and manufacturing.''

In Europe, growth in service industries also picked up. Royal Bank of Scotland Group Plc's services index climbed to 57.9 in January, from 57.2 in December. A reading above 50 in both surveys indicates expansion.

for info:

http://www.bloomberg.com/apps/news?pid=20601068&sid=aT7WR9.p9TxE&refer=economy

 

[Ichiro]

6feb-Cheap Hires Are Only Half Battle at Accenture: Andy Mukherjee

By Andy Mukherjee

Feb. 5 (Bloomberg) -- Accenture Ltd. is going Indian.

The Hamilton, Bermuda-based consulting firm last week said it would supplement the 27,000 workers it already has in India by hiring an additional 8,000 people there by Aug. 31.

India will soon be Accenture's biggest employee base worldwide, overtaking the U.S.

The motivation behind the move is quite plain to see.

Even after several years of 15 percent pay increases, an experienced software developer in Bangalore costs about $13,000 a year, compared with $78,000 in Atlanta, according to the PayScale.com Web site.

The economics is compelling, and not just for Accenture.

International Business Machines Corp. has announced plans to triple Indian investments to $6 billion by 2009.

Hiring people cheaply is going to be only half the battle.

India's homegrown software-services companies, which have benefited the most from arbitraging on the wage differential, won't give in to their deeper-pocketed rivals, such as Accenture and IBM, without a fight.

Indian companies have a pricing constraint because they don't have the consulting expertise of big-bulge firms. Nevertheless, they have controls that allow for a very profitable use of their human resources.

What makes Indian software-services companies a hit with shareholders is that they are run with efficiency.

for info:

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_mukherjee&sid=aHYrtAkYtx6c

 

[Ichiro]

6feb-Yen Gains Most in a Month Versus Euro Before the G-7 Meeting

By Bo Nielsen and Ye Xie

Feb. 5 (Bloomberg) -- The yen gained versus the dollar and increased the most against the euro in a month on speculation European policy makers will say Japan's currency is too weak.

The yen climbed against the 16 most-active currencies after officials in Europe said the Group of Seven nations would debate the issue this week. Japan's Vice Finance Minister Hideto Fujii, the ministry's top bureaucrat, said the G-7 will discuss currency markets as usual. Futures trading data released on Feb. 2 showed investors held record bets the Japanese currency would fall.

``The yen has momentum coming into the G-7 meeting after all the talk about it being undervalued,'' said Mike Moran, senior currency strategist at Standard Chartered Bank in New York. ``Looking at the net shorts, you've got to wonder how long this can remain without some kind of a correction.''

The Japanese currency gained to 120.29 against the dollar at 1:28 p.m. in New York, from 121.13 on Feb. 2. The yen rose to 155.54 per euro, from 157.01. Against the euro, the U.S. currency traded at $1.2929, from $1.2961.

The yen increased 0.9 percent versus the European currency, the biggest gain since a 1 percent increase on Jan. 5. The Japanese currency gained to as much as 155.48 versus the euro, the highest since 155.09 on Jan. 15. The euro touched an all-time high versus the yen of 158.62 on Jan. 24.

One-Week Volatility

Volatility on one-week yen options traded as high as 8.925 percent before retreating to 8.5 percent, the highest in more than a week, according to data compiled by Bloomberg.

Data released Feb. 2 by the Washington-based Commodity Futures Trading Commission showed traders on Jan. 30 had a record 173,005 positions that profit from a weaker yen.

foro info:

http://www.bloomberg.com/apps/news?pid=20601083&sid=a_MakChxcHQI&refer=currency

 

[Ichiro]

6Feb- LONDON, Feb 6 (Reuters) - The Morgan Stanley index of world stock markets <.MSCIWD> hit a record of 376.05 points on Tuesday, as European shares advanced to new six-year highs after strong gains in Asia.

The index has gained around 2.2 percent so far this year after a 19-percent increase in 2006.

for ifno:
http://yahoo.reuters.com/news/artic...2-06_11-39-22_L06782866&type=comktNews&rpc=44

 

[Ichiro]

6feb- AP
Most Asian Markets Rise
Tuesday February 6, 6:11 am ET
Most Asian Markets Rise As Hong Kong and Tokyo Gain; Chinese Shares Rebound

HONG KONG (AP) -- Most Asian markets rose Tuesday, as shares in Japan and Hong Kong gained and as Chinese stocks rebounded from a five-day losing streak.

In Tokyo, the Nikkei 225 index climbed 62.06 points, or 0.36 percent, to close at 17,406.86 points. Investors bought up shares of autos and tech companies after the index lost 1.15 percent Monday.

Investment trusts bought up high dividend-paying power companies like Tokyo Electric Power Co., which surged 4.9 percent to 4,470 yen (US$37.03) and Kansai Electric Power Co., up 7.5 percent to 3,850 yen (US$31.89).

Toyota Motor Corp. shares gained 1.8 percent to 7,960 yen (US$65.94) ahead of its earnings report for the October-December quarter. After the market closed Tuesday Toyota said its quarterly net profit rose 7.3 percent on strong sales in North American and Europe.

In Hong Kong, shares rose as the Shanghai stock market rebounded from five straight days of losses, easing worries about a contagion effect from an equity slump in the mainland.

The blue chip Hang Seng Index jumped 199.58 points, or 1 percent, to 20,655.20.

for info:

http://biz.yahoo.com/ap/070206/asian_markets.html?.v=1

 

[Ichiro]

7feb- AP-Dow, Nasdaq Up in Late Afternoon Trading
Tuesday February 6, 3:39 pm ET

By Joe Bel Bruno, AP Business Writer
Dow, Nasdaq Advance in Late Afternoon Trading As Investors Remain Wary About Technology Stocks

NEW YORK (AP) -- Wall Street traded sideways Thursday as investors were unfazed by speeches from central bankers, yet remained wary about technology stocks after a profit warning from chip maker National Semiconductor Corp.

Major indexes edged higher after extending Monday's losses throughout most of the session. Investors have been reluctant to buy into the market without some kind of catalyst that might indicate where the economy or corporate earnings are heading.

Federal Reserve Chairman Ben Bernanke's speech did not address interest rates, which central bankers left unchanged last week. With his speech out of the way, and corporate earnings season winding down, investors were still seeking a direction for the market.

That could come after the closing bell when networker Cisco Systems Inc., considered a bellwether for technology stocks, report quarterly earnings. Technology stocks stumbled through most of the day after National Semi warned sales will fall steeper than expected.

"I get the sense investors are waiting to see what the market is going to do next, and aren't entirely convinced that a slight pullback is going to manifest itself," said Mike Malone, trading analyst at Cowen & Co. "There really wasn't any expectation that something would come from Bernanke. But the fact its over leaves investors looking around for what's next."

for info:

http://biz.yahoo.com/ap/070206/wall_street.html?.v=35

 

[Ichiro]

7feb-European shares lifted by Peugeot, Billiton
Wed Feb 7, 2007 4:42am ET145

By Ulf Laessing

FRANKFURT, Feb 7 (Reuters) - European shares rose slightly in early trade on Wednesday, extending Tuesday's gains, lifted by French car maker Peugeot (PEUP.PA: Quote, Profile , Research) and mining giant BHP Billiton (BLT.L: Quote, Profile , Research).

Among major movers, PSA Peugeot Citroen (PEUP.PA: Quote, Profile , Research) rose 2.8 percent after posting a smaller decline in its 2006 consolidated operating margin than analysts had forecast.

Also on the upside, shares in BHP Billiton (BLT.L: Quote, Profile , Research), the world's biggest miner, rose 4.5 percent after setting an extra $10 billion in share buybacks.

By 0929 GMT, the FTSEurofirst 300 <.FTEU3> index of leading European shares was up 0.1 percent at 1,545.12 after closing 0.3 percent up at 1,543.08 points on Tuesday.

Britain's FTSE 100 .FTSE was up 0.3 percent, while France's CAC 40 <.FCHI> was up 0.2 percent and Germany's DAX <.GDAXI> up 0.3 percent.

for info:

http://yahoo.reuters.com/news/artic...2-07_09-42-12_L07693882&type=comktNews&rpc=44

 

[Ichiro]

7feb-P
Dollar Rises Against Yen in Asia
Wednesday February 7, 5:05 am ET
Dollar Rises Against Yen in Asia on View G7 Won't Issue Warning Over Weak Yen

TOKYO (AP) -- The dollar rose against the yen in Asia Wednesday on mounting speculation that Group of Seven finance chiefs will not issue a strong warning on the weakness of the yen when they meet later this week.

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The dollar was trading at 120.24 yen at 2:50 p.m. Wednesday, up from 120.08 yen late Tuesday in New York. The euro rose to $1.2986 from $1.2978.

Japan and Asian players bought the dollar in the wake of remarks by U.S. and Japanese currency authorites that the yen will not be a major topic of discussion at the G7 meeting of finance ministers and central bank governors in Germany on Feb. 9-10, Tokyo traders said.

for info:

http://biz.yahoo.com/ap/070207/dollar.html?.v=2

 

[Ichiro]

7feb- AP
Chinese Stocks Rise 2.4 Percent
Wednesday February 7, 5:13 am ET
Chinese Stocks Rise on Renewed Buying by Institutional Investors; Yuan Hits Fresh High

SHANGHAI, China (AP) -- Chinese stocks rose Wednesday on renewed buying of banks and other index heavyweights by institutional investors. The yuan rose to a new high against the U.S. dollar.

The benchmark Shanghai Composite Index gained 1.5 percent to 2,716.18. The gain follows a 2.4 percent surge on Tuesday which snapped a five-day decline. The Shenzhen Composite Index rose 1.9 percent to 666.96.

Selling pressure on securities funds eased after Tuesday's rebound, prompting some funds to hunt bargains and potential profit-makers, analysts said.

For individual companies, investors are watching for 2006 financial results, due by late April, for trading cues, said Zhu Haibin, an analyst at Everbright Securities.

China Petroleum & Chemical, Asia's largest refiner by capacity, advanced 1.9 percent to 8.75 yuan after losing 19 percent over the previous five sessions.


http://biz.yahoo.com/ap/070207/china_markets.html?.v=1

 

[Ichiro]

8feb- AP
Stocks Narrowly Mixed As Oil Falls
Wednesday February 7, 3:36 pm ET
By Tim Paradis, AP Business Writer
Stocks Narrowly Mixed After Cisco Forecast, Oil Decline

NEW YORK (AP) -- Stocks turned mixed Wednesday after falling oil prices hurt energy stocks and overshadowed a stronger-than-expected productivity reading. A Federal Reserve official's comments on interest rates also soured the market's early mood.

A robust sales forecast from Cisco Systems Inc. gave a boost to technology stocks, however. The Labor Department's productivity figures were stronger than expected for the fourth quarter, but failed offset concerns about falling oil prices.

"Crude hasn't been able to get above $60 for three days so the energy names are weak," said Neil Massa, equity trader at John Hancock Funds. He suggested some investors are simply taking profits.

In late afternoon trading, the Dow fell 25.16, or 0.20 percent, to 12,641.15. Earlier in the session the Dow moved past 12,700 for the first time, trading as high as 12,700.28. The previous trading record of 12,683.93 was set Friday.

Broader stock indicators were mixed. The Standard & Poor's 500 index fell 0.34, or 0.02 percent, to 1,447.66, and the tech-focused Nasdaq composite index, responding to Cisco's news, rose 12.62, or 0.51 percent, to 2,484.11.

Bonds rose following the economic data, with the yield on the benchmark 10-year Treasury note falling to 4.74 percent from 4.77 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices rose.

for info:
http://biz.yahoo.com/ap/070207/wall_street.html?.v=40

 

[Ichiro]

8feb- Daily FX
Dollar Relegated To Congestion Despite Productivity Boost
Wednesday February 7, 2:28 pm ET
By John Kicklighter, Currency Analyst strategist@dailyfx.com

Fundamentals hit a modest mid-week peak in the New York session Wednesday; but the combined efforts of policy official’s comments and a jump in worker productivity could not fuel volatility in the underlying greenback.

Despite the lack of action in the dollar, EURUSD managed a 50 point rally to 1.3025 from Asian session lows with the help of German data. The USDCHF was also able to swing 50 points, but the move was trimmed by a range that has formed above 1.2380 support. Arguably the most tangible congestion came on behalf of the British pound which has stalled 20 points below resistance flagged at 1.9750. Finally, the battle between the prominence of the carry and possibility of official intervention has allowed the USDJPY to rebound 85 points from key support around 120.

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While action in the currency market was rather dry, position traders had another volley of data to consider in their dollar valuations. The Labor Department reported productivity among US workers rose 3.0 percent in the fourth quarter, following a revised 0.1 percent contraction. At the same time, the labor cost index slowed from a 3.2 percent pace of expansion to 1.7 percent. Together, these numbers confirms the Fed’s neutrality and suggest wages will be less of a threat to overall inflation that original suspected. However, looking at the data from different angles challenges such a conclusion. A particular look at the wages sub-gauge reports a significant 4.8 percent jump, spurred by a jobless rate near a five-year low and the initial exit of Baby Boomers from the work force. Also, the annual numbers are fully contradicting their quarterly equivalents. Through 2006, productivity slowed from 2.3 percent to 2.1 percent growth, the fourth consecutive deceleration. Conversely, labor costs surged 3.2 percent through the same period, the biggest pick up since 2000. When Alan Greenspan was Chairman of the Fed Reserve, he took the firm stance that inflation would be tamed by a boost in productivity. Without this natural domestication in price growth, the Fed may have to step in should round of quarterly data reveal the persistence in the unwanted conditions.

for info:

http://biz.yahoo.com/fxcm/070207/1170880131032.html?.v=1

 

[Ichiro]

8feb- Daily FX
Euro Rises as Carry Back in Play
Wednesday February 7, 5:57 am ET
By Boris Schlossberg, Senior Currency Strategist strategist@dailyfx.com

• AUD RBA keeps rates on hold
• GBP IP contracts for 2nd time in 3 months
• EUR German IP sharply lower but prior revised upward
• USD Productivity on docket

With US and Japanese officials downplaying the possibility of any substantive discussion of yen weakness at the upcoming G-7 meeting, traders returned to the carry trade steadily buying EURJPY from the start of the Asia session which in turn drove EURUSD to hit the 1.3000 level in early European trade.

The euro also received a bit of a boost from reports that ECB officials were not happy with the MNI story last week that they will halt rate hikes after a 25bp bump in March. The EZ central bankers want the flexibility to hike further should growth risks move to the upside. Furthermore, as all monetary officials they would like to retain some element of surprise in order to exert power over the markets. The MNI story, if true, would have essentially relegated them to “lame duck” status as it would have taken monetary policy out of the equation for the currency market for the rest of the year. Therefore, tomorrow’s ECB press conference could be particularly interesting as President Trichet may decide to assume ultra hawkish posture in order to reassert authority over the market.

On the economic front, the news was not supportive to either euro or the pound as both German and UK Industrial Production reports missed their mark. In UK IP recorded a reading of -0.1% vs. 0.2% expected with large declines in oil and gas production and a 3.7% drop in quarrying and mining. The news could negatively impact Q4 UK GDP, however with oil 18% higher since the time of the IP report, the numbers next month could well bounce back. The currency market shrugged off the data, with the pound recovering all of its post release losses by the New York open.

for info:

http://biz.yahoo.com/fxcm/070207/1170849476133.html?.v=1

 

[Ichiro]

9feb-GLOBAL MARKETS-Stocks dip, currencies unmoved after BOE, ECB
Thu Feb 8, 2007 8:13am ET18
Company Market News

(Updates after BOE, ECB decisions, adds U.S. outlook)

By Lincoln Feast

LONDON, Feb 8 (Reuters) - Equities and emerging market assets dipped from near record highs on Thursday but risk appetite remained buoyant after euro zone and British central banks held interest rates steady.

U.S. stock futures were pointing to a flat to weaker start on Wall Street, while base metals were weak as institutional investors reduced their holdings.

The euro and sterling were little moved after both the European Central Bank and the Bank of England kept benchmark borrowing rates unchanged at 3.50 percent and 5.25 percent, respectively.

The yen fell ahead of the G7 meeting which starts on Friday in Essen, Germany, on doubts that finance chiefs will present a united front on the weakness of the Japanese currency, hovering near what the Bank of Japan says are two-decade lows.

The weak yen and low borrowing costs in Japan have been used to finance investments across financial markets and some investors have expressed fears of a sudden unwinding of that so-called carry trade.

foro info:

http://yahoo.reuters.com/news/artic...2-08_13-13-14_L08294394&type=comktNews&rpc=44

 

[Ichiro]

9feb- AP
Machinery Orders Boost Japanese Stocks
Thursday February 8, 10:13 pm ET
Japanese Stocks Edged Higher Friday Morning on an Upbeat Forecast for Machinery Orders

TOKYO (AP) -- Japanese stocks edged higher Friday morning on an upbeat forecast for machinery orders that offset worse-than-expected data for December. The dollar was higher against the yen.

The benchmark Nikkei 225 index rose 106.10 points, or 0.61 percent, to 17,398.58 points on the Tokyo Stock Exchange by the end of morning session Friday. The index inched up 0.16 point -- a negligible percentage change -- to finish Thursday at 17,292.48.


Japanese core machinery orders fell 0.7 percent in December from the previous month, the government said Friday -- worse than the 0.2 percent drop economists had forecast in a Dow Jones Newswires survey.

However, the October-December figure showed a solid rise on-quarter of 2 percent, and the government forecast 2.2 percent growth over the January-March period, cheering market sentiment.

Financial and commodity issues led the gains in early Tokyo trade. Traders also bought shipping issues after they'd fallen the day before.

for info:

http://biz.yahoo.com/ap/070208/japan_markets.html?.v=7