July 14, 2005
China’s foreign exchange reserves will hit US$1,000 billion by June of 2006 if they keep growing at their present rate, according to a Shanghai economist. They were up by more than US$100billion in the first six months of 2005 to a total of US$711 billion, twice the rate of its increase in foreign currency holdings in 2004. This rapid increase has to do with a growing trade surplus ...
China foreign reserves to hit 1000 billion
by Brian TurnerChina’s foreign exchange reserves will hit US$1,000 billion by June of 2006 if they keep growing at their present rate, according to a Shanghai economist. They were up by more than US$100billion in the first six months of 2005 to a total of US$711 billion, twice the rate of its increase in foreign currency holdings in 2004. This rapid increase has to do with a growing trade surplus ...
European ADRs lead in New York
by Brian TurnerJumps in the steel and microchip makers sectors helped on Thursday as overseas stocks traded in the United States were up. The Bank of New York’s index of leading European ADRs was up 0.2 percent to 126.51, leading Asian ADRs gained 0.7 percent to 110.29, and the leading Latin American ADRs were up 0.1 percent to 157.16. Chipmakers advanced as US company Advanced Micro Device Inc. ...
July 13, 2005
Positive movement in the banking sector on Wednesday helped the FTSE 100 post a gain of 28.7 points to close at 5,245.9, while the FTSE 250 gained 4.5 points to 7,541.7 on a volume of 2.9 billion shares traded. The gains in the banking sector came as Goldman Sachs touted the stocks to its clients for reasons ranging from good volume growth to high dividend yields. HBOS gained ...
FTSE gains on banking performance
by Brian TurnerPositive movement in the banking sector on Wednesday helped the FTSE 100 post a gain of 28.7 points to close at 5,245.9, while the FTSE 250 gained 4.5 points to 7,541.7 on a volume of 2.9 billion shares traded. The gains in the banking sector came as Goldman Sachs touted the stocks to its clients for reasons ranging from good volume growth to high dividend yields. HBOS gained ...
Tokyo equities lower Wednesday
by Brian TurnerThe Tokyo equities markets were lower on Wednesday on profit taking after several up days and in anticipation of a group of quarterly results to be reported next week. The Nikkei 225 lost 0.3 percent to 11,659.84, while the Topix lost 0.03 percent to close at 1,185.7. Sony was up 0.3 percent to ¥3,950. Canon remained at ¥5,960. Toyota lost 0.2 percent to ¥4,120, while Fujitsu ...
FTSE Eurofirst gains record highs on tech stock push
by Brian TurnerThe FTSE Eurofirst 500 closed at another three-year high on Wednesday as it rose 0.6 percent to 1,159.54. The information technology sector and oil stocks were both up on the day. The success of the information technology sector, which was up 1.6 percent on the day, helped chip making equipment manufacturer ASML win back losses that had come with the news that its order’s have been below predictions. ...
Venezuela gets tough on banned foreign exchange transactions
by Brian TurnerVenezuela’s parliament passed legislation on Wednesday that provides for fines and jail time for Venezuelans and foreigners who violate the country’s laws controlling currency exchanges. The regulations controlling the exchange of foreign currencies were introduced in 2003 and included the creation of a state currency board, banned foreign exchange transactions outside of the board, and set a fixed exchange rate. The regulations, however, did not prescribe penalties for violations, ...
July 12, 2005
US equities markets were down early on Tuesday due to crude oil prices that were rising again as another tropical storm approaches the Gulf of Mexico. By the close, however, the markets were mixed, with the Dow Jones Industrial Average down but the S&P and Nasdaq indexes up. The Dow Jones Industrial Average was down 0.6 percent to close at 10,513.89, the S&P 500 had gained 0.23 ...
Storm threat send US equities down
by Brian TurnerUS equities markets were down early on Tuesday due to crude oil prices that were rising again as another tropical storm approaches the Gulf of Mexico. By the close, however, the markets were mixed, with the Dow Jones Industrial Average down but the S&P and Nasdaq indexes up. The Dow Jones Industrial Average was down 0.6 percent to close at 10,513.89, the S&P 500 had gained 0.23 ...
US Treasury bond prices lower on deficit revision
by Brian TurnerBond prices were lower and yields were higher in the US, as investors waited for several economic reports due out later in the week. In late morning trade in New York, 5-year bonds had gained 2.3 basis points to yield 4.924 percent, while 10-year bonds were up 2.5 basis points to a yield of 4.124 percent. In an announcement expected to impact the government bond market, US deficit ...
Bank of Canada leaves rates unchanged
by Brian TurnerWhile the Bank of Canada has kept its overnight interest rate steady at 2.5 percent this month, unchanged since October, it said on Tuesday that interest rates would have to rise “in the near future.” That statement was interpreted to mean that rates will likely rise at the next two opportunities, which will come on September 7 and October 18. The bank will release its Monetary Policy Report ...
July 11, 2005
In the UK, the 2-year gilt was up 5.9 basis points to yield 4.101 percent, while the 10-year gilt rose by 7.1 basis points to a yield of 4.291 percent. Prices on gilts were down as the stock markets made gains and investors backed off from their search for safe investments after Thursday’s bombings in London. In the eurozone, the 2-year Schatz rose 4.9 basis points to yield ...
Gilts down as investors move from safe investments
by Brian TurnerIn the UK, the 2-year gilt was up 5.9 basis points to yield 4.101 percent, while the 10-year gilt rose by 7.1 basis points to a yield of 4.291 percent. Prices on gilts were down as the stock markets made gains and investors backed off from their search for safe investments after Thursday’s bombings in London. In the eurozone, the 2-year Schatz rose 4.9 basis points to yield ...
China allows greater foreign investment
by Brian TurnerIn China on Monday officials announced that the amount of foreign money allowed to be invested in the stock market will be increased to a total of $10 billion. No time frame for the introduction of the new limit was announced. Currently, $4 billion dollars of foreign investment is allowed by the terms of the Qualified Foreign Institutional Investors program. News of the change was expected, but ...
July 7, 2005
Four bombs were detonated at four different points in London’s transportation system during the morning rush hour on Thursday, leaving a reported 37 dead and more than 700 wounded. The attacks are being investigated as terrorist acts. A group claiming links to Al-Qaeda claimed responsibility for the attacks and warned Italy and Denmark to withdraw their military forces from the Middle East. The claim, which one police ...
London bombed, markets hit
by Brian TurnerFour bombs were detonated at four different points in London’s transportation system during the morning rush hour on Thursday, leaving a reported 37 dead and more than 700 wounded. The attacks are being investigated as terrorist acts. A group claiming links to Al-Qaeda claimed responsibility for the attacks and warned Italy and Denmark to withdraw their military forces from the Middle East. The claim, which one police ...
July 6, 2005
Government bond markets in the eurozone and in the UK both showed the effect of investor anticipation of interest rate announcements scheduled for Wednesday. Expectations were that rates would remain the same in both regions, at 2 percent in the eurozone and 4.75 percent in the UK. However, while hopes for a eurozone rate cut are diminishing as weakness in the euro makes a cut seem unnecessary, slowdowns ...
Bond investors anticipate interest rate cuts in Europe
by Brian TurnerGovernment bond markets in the eurozone and in the UK both showed the effect of investor anticipation of interest rate announcements scheduled for Wednesday. Expectations were that rates would remain the same in both regions, at 2 percent in the eurozone and 4.75 percent in the UK. However, while hopes for a eurozone rate cut are diminishing as weakness in the euro makes a cut seem unnecessary, slowdowns ...
July 5, 2005
In the eurozone on Tuesday, positive news on German and eurozone retail sales trumped recent news of more negative economic indicators to send bond prices down and yields up. The 2-year Schatz was up 5.2 basis points to yield 2.158 percent, while the 10-year Bund gained 4.5 basis points to 3.212 percent. In the UK, the 2-year gilt rose 5.9 basis points to 4.147 percent and the 10-year ...
Positive eurozone news helps bond yields
by Brian TurnerIn the eurozone on Tuesday, positive news on German and eurozone retail sales trumped recent news of more negative economic indicators to send bond prices down and yields up. The 2-year Schatz was up 5.2 basis points to yield 2.158 percent, while the 10-year Bund gained 4.5 basis points to 3.212 percent. In the UK, the 2-year gilt rose 5.9 basis points to 4.147 percent and the 10-year ...
FTSE makes slight progress on speculations
by Brian TurnerBus and train operator Go-Ahead Group declined by 4.5 percent to £12.80 in the London equities markets on Tuesday as it was feared that higher fuel prices and wage inflation could cut into operating margins. Bookmaker William Hill gained 2 percent to 551p on improved results and tight cost controls. This news also aided Hilton Group, owner of Ladbrokes, to rise by 1.4 percent to 294.75p. TV ...
July 1, 2005
In London on Tuesday the markets were mixed and volume was low, with only 2.4 billion shares traded after Monday’s bank holiday. The FTSE 100 was down 0.4 percent to 4,964.0, but the FTSE 250 rose 0.1 percent to close at 7,114.3. Mining stocks were up on figures showing copper reserves near 15-year lows. Imperial Tobacco led the gainers on the day on news that a Scottish court had ...
Trading volume low after bank holiday
by Brian TurnerIn London on Tuesday the markets were mixed and volume was low, with only 2.4 billion shares traded after Monday’s bank holiday. The FTSE 100 was down 0.4 percent to 4,964.0, but the FTSE 250 rose 0.1 percent to close at 7,114.3. Mining stocks were up on figures showing copper reserves near 15-year lows. Imperial Tobacco led the gainers on the day on news that a Scottish court had ...