Markets and money – July 24

For today’s market previe, we saw Asia followed yesterday’s US rally but earnings affected Europe:

Asian markets closed higher today following the rally that extended in the US yesterday, which brought it past the 9,000 level.  Strong earnings from the likes of Apple and McDonald’s brought the US markets to close higher for another day.  For Asian markets, refiners and metal producers also contributed to the positive close.  The Nikkei 225 rose 1.6% to 9944.55, as the yen fell against the U.S. dollar, boosting exports while the Shanghai Composite Index was up 1.3% to 3372.60, its best finish since June 3, 2008.  The Hang Seng was also there as it closed at 19,982.79 or 0.8% up -  just 18 points shy of the 20,000 level, which was hit intraday.

Here’s how the other markets did: South Korea’s Kospi was higher by 0.4% while the Singapore’s Straits Times Index was the best performing after adding 2%.  India also saw Sensex move up by 1%.  Australia’s S&P/ASX 200 climbed 0.6% while the main index of its neighbor, NZX-50, was 1.5% better for the day.  The downer: Taiwan’s Taiex slipped 0.1%.

It was the opposite for the European markets as the DAX lost 0.3% to close at 5,229.36 and the CAC-40 closed at 3366.45 or 0.2% lower.  The FTSE 100 was lucky to have ended a small 0.4% higher at 4,576.61 after reports released today showed the UK contracted more than double the forecast and has seen its steepest contraction since the 30s (excluding WW2 and its immediate aftermath). Apparently, the good earnings from the US were not enough to reduce worries over the negative earnings from some companies including Ericsson, which reported a 56% drop in profits.  Merck, the German drug maker, wasn’t so far with a 48% reduction in profits.  Banks however finished higher.

Going to the US, both the Dow and the S&P are barely higher.  The blue chip index  is up two-tenths of a percent while the broader market index is half that.  The typical outperformer Nasdaq is down after rather ugly numbers from Microsoft and online retailer Amazon.  At the moment, it’s hard to say whether the US markets will close higher or lower.  The Dow has been negative before 2pm ET, so was S&P.  Yet we can be sure of yet another positive finish for the week, following the strong rally we had yesterday.

With that, movements in the currency markets should be a bit predictable:

Both the yen and the dollar are lower today, and even for the week, after some strong results from companies came out.  From an FT news report: Over the week the yen lost 0.6 per cent to Y94.80 against the dollar, fell 1.2 per cent to Y134.79 against the euro and dropped 1.1 per cent to Y155.69 against the pound.  The dollar also suffered weaker by 0.7 per cent to $1.4217 against the euro, by 0.6 per cent to SF1.0699 against the Swiss franc and by 0.5 per cent to $1.6429 against the pound.

Focusing on today’s currency movements, the euro is stronger after some positive data from the region came out.  Germany’s Ifo Institute’s business climate index rose for the 4th consecutive month.  There’s also the preliminary Markit euro-zone composite purchasing managers’ index for July, which showed an increased more than the forecast.  It is a weak day however for the pound after worse than expected contraction for the quarter put the country in its steepest decline since the 30s.

From WSJ: Late Friday morning, the euro was at $1.4205 from $1.4203 late Thursday, and the dollar was at ¥94.77 from ¥95.10, according to EBS. The euro was at ¥134.68 from ¥135.07. The U.K. pound was at $1.6432 from $1.6524, and the dollar was at 1.0724 Swiss francs from 1.0720 Swiss francs.

Markets and money – July 23

Markets are mostly up as earnings season continues:

Most of the major indexes in Asia closed higher on the day following some positive news from Japan as well as the entrance of some hot money after waiting by the sidelines.  Reports today that the Japanese trade surplus widened after its exports fell at a slower pace than last month boosted the country’s Nikkei 225 index 0.7% to close at 9792.94.  Neighboring countries followed with the Kospi up 0.2%, New Zealand’s NZX 50 up 0.6%, the Sensex higher by 2.6% and Singapore’s Straits Times Index on the green closing 1.4% up.

The hot money that flowed into the Chinese economy led the Shanghai Composite index to close 1% higher at 3328.49 while the Hang Seng climbed 2.4 per cent to 19,703.17, just a couple of hundred points off the psychologically-important 20,000 level. The Australian index closed lower at 4,058.3, a day after it hit its highest since  November, so did the Singapore STI.

In Europe, earnings in the US as well as strong numbers from banking giant Credit Suisse propelled the major indexes to close higher for today’s trading session.  The FTSE 100 index rose 1.5% to close at 4559.80 while the DAX had a big 2.5% gain finishing at 5247.28.  French CAC-40 index was also stronger by 2.1% after its close at 3373.72.

After yesterday’s mini-sell off, investors are still feeding the markets with a lot of cash from the sidelines amid companies continuously beating earnings expectations.  As I write, the Dow is already past the 9,000 level, higher by 2% to be at 9,058 while the S&P 500 is higher by 2.27%.  The tech stocks are leading with the Nasdaq several basis points better than the gain seen by the S&P.

And with strong markets come weak dollar:

The euro is boosting its position today, advancing against the greenback as well as the Japanese yen.  As risk appetite returns in the market, more and more are deserting the safe haven currencies and moving to the riskier equities for their investments.  The dollar is down against most major currencies, except for Japan where investors are putting their money in to foreign assets.

The euro was at $1.4221 from $1.4211 late Wednesday, and the dollar was at ¥94.85 from ¥93.54, according to EBS. The euro was at ¥134.88 from ¥132.96 a day earlier while the pound was at $1.6490 from $1.6463.  The dollar was at 1.0712 Swiss francs from 1.0662 Swiss francs.

Markets and money – July 22

It’s mixed results for the markets all around the world:

The US markets have been zigzagging, going in and out of the negative following mixed results from some of the biggest companies.   The Dow is currently down by 12 points to 8,904 while the S&P is seeing a smaller drop.  The Nasdaq as of this writing is (still) in positive territory up 5.26 to 1,921.

Most Asian markets are up for today after another day of gains on Wall Street yesterday, as well as the rise in mining and metal stocks that indicate hopes for economic recovery.  They are also being led by the strong earnings being reported on Wall Street, shrugging off the lower revenues for most of them.  Some however still fell victims to profit-taking. Here are the winners and losers in the Asian markets:

Winners

• China’s Shanghai Composite ended up 2.6% at 3296.61, its highest close since June last year
• Nikkei 225 Average up 0.7% at 9723.16
• Australia’s S&P/ASX 200 added 0.4%
• Straits Times Index went up 0.2%
• Kospi rose 0.3%
• Taiwan’s Taiex added 0.5% led by increase in financials
• New Zealand’s NZX 50 climbed 1%

Losers

• Hang Seng Index was lower by 1.3% to 19248.17 on profit-taking
• India Sensex also dropped 1.4%

The MSCI Asia-Pacific Index also jumped up 0.3% to reach its highest level since September of last year.

It’s a more consistent, positive story for the European markets after some of the major indexes are witnessing some profit-taking just when back on the green after moving up and down throughout the trading session.  While metals were also the star of the day, it was for the opposite reason as in Asia.  With a run of more than 20%, the metal stocks are declining as investors decide to  book their gains.

Banks and auto makers are also injecting pressure in stocks in the European markets as Morgan Stanley posted a much lower income per share than expected and from last year while automaker Fiat came out with also less than desirable results.

The FTSE currently stands at 4,494, up by 12.5 points (3/10%), while the CAC and DAX are both up as well by 0.07% and 0.54%.

On the other side, the dollar is continuing its slide against some major currencies after mostly better results from firms reporting earnings:

The WSJ put together the numbers: Wednesday morning in New York, the euro was at $1.4184 from $1.4197 late Tuesday. The dollar was at ¥93.53 from ¥93.66, according to EBS. The euro was at ¥132.65 from ¥133.01. The U.K. pound was at $1.6385 from $1.6436, and the dollar was at 1.0692 Swiss francs from 1.0683 Swiss francs.

The improvement in the currency was preceded by a drop after a less than desirable earnings that came out today and a negative start in the US equities market.  As for the strength of the pound, Britain’s Monetary Policy Committee came out today saying there is no plan to expand its QE program, which buys securities worth up to £125bn.  The group also noted that downside risks to UK growth is now lower and inflation was a little higher than expected.

Markets and money – July 20

The markets are extending their week-long rally from last week.

All 3 major indexes in the US are up, albeit less than 1% each after a couple of good news are providing an extension to the rally that we saw last week.  On Sunday night, the small business lender CIT Group managed to close a deal with its creditors providing it with additional capital worth $3bn, enough to buy it time to escape Chapter 11. Shares are up more than 80% as of 1:15pm ET.

Another good news came out today with the index of economic indicators show a better reading both from the expectations and the number from last month.  Human Genome Science also tripled its price after revealing progress in the lupus drug that it is making with GlaxoSmithKline.  The stock jumped from previous close of $3.32 to almost $11 apiece.

Goldman Sachs also upgraded its outlook for the S&P citing that the index could gain another 15% from its June 30 closing of 919 to go past 1,000 at 1,060 by yearend.  This would spell the best second half rally since 1982. (Source: FT)

To the other side of the world, Asian markets were all buoyed up by the same good news re: CIT that hit the US and Europe.  But it doesn’t end there.  Some good news coming out of Asia:

• Casino operator Las Vegas Sands reported plans to enter the HK market via an IPO
• The Hang Seng and Kospi’s close all brought it back to levels during September of  2008, before everything crumbled. From the WSJ:

Hong Kong’s Hang Seng Index climbed 3.7% to 19502.37, finishing at its highest level since September 2008, as stocks gained across sectors. In South Korea, the Kospi rose 2.7% to 1478.51 – also its highest close since September – on buying in technology, automotive and financial stocks. (Source: WSJ)

• Mining stocks and strong results from Tata Consulting also were catalyst to a broader market rally

China’s Shanghai Composite was up 2.4%, Taiwan’s Taiex higher by 1.3%, and Singapore’s Straits Times Index rose 1%.  Australia’s S&P/ASX 200 gained 1.2% while New Zealand’s NZX 50 inched up by 0.5%. India’s Sensex jumped 3%. Becuase of a Japanese holiday, the markets were closed.

Lastly, European markets were helped by both CIT and the overall sentiment about the banks, and as FT reports, the bid activity in the UK despite pressure to take profits after the markets have witnessed a strong rally last week.  Apart from some problems with the Volkswagen-Porsche deal, it’s looking positive for the European markets, closing on the green for the day. Renewed hopes for an economic recovery following the better than expected results from banks and other big companies reporting last week are also bringing more people into this still beaten down market (in comparison to last year’s peak).

The FTSE Eurofirst rose 1.6 per cent to 884.76. France’s CAC 40 gained 1.7 per cent to 3,274.35, while the German Xetra Dax rose 1.6 per cent to 5,057.54.

And very quickly on the currencies:

Following the same story of a recovery, and higher hopes to older people, risk aversion’s departure from the market is moving people away from the greenback and into riskier, high-yielding currencies, such as those linked to commodities.

From an FT report:

The dollar fell 0.9 per cent to $1.4241 against the euro, lost 0.9 per cent to SFr1.0668 against the Swiss franc and dropped 1 per cent to $1.6508 against the pound.

Commodity-related currencies also advanced aggressively against the dollar, with the Australian dollar rising 1.4 per cent to $0.8135, the New Zealand dollar climbing 1.6 per cent to $0.6557 and the Norwegian krone gaining 0.9 per cent to NKr6.3297.

The dollar did make ground against the yen, however, gaining 0.1 per cent to Y94.42 .

Markets and money – July 16

Bank results helped Europe and Asia, but another problem weighs down the US markets:

Even with better than expected results coming from JP Morgan prior to market open as well as lower rise in initial jobless claims, the major indexes in the US are essentially flat as CIT Group continues to struggle finding rescue fund after talks with the government and debtholders have collapsed.  Financials are some of the worst performers for the day after a strong rally yesterday.  As of 1:10 ET, the Dow is down 10.35 points to 8605.86 while the S&P 500 is down 2.86 pts to 929.82.  Only the Nasdaq is up, albeit only slightly, by almost a tenth of a percent.

With the CIT story having less effect on the European markets, the CAC-40 rose 0.9% to 3199.68, while the DAX gained 0.6% to 4957.19.  The FTSE 100 also added some 0.4% to close at 4361.84, all riding on the positive earnings from JP Morgan along with some help from its drug makers. The country’s mining sector however declined after falling victim to some profit taking.  The dismal results that came out from the biggest mobile phone maker Nokia also fell on deaf ears.

Going to the East, most Asian indexes saw gains except for the country that had the best news today, China, falling 0.2% to end at 3183.74 after some investors decided to take some profits after several days of staying on the positive territory. Japan’s Nikkei 225 Average moved up 0.8% to 9344.16, while the Kospi saw a similar 0.8% rise.  Australia’s S&P/ASX 200 was also ecnouraged by the earnings from the US as it gained 1.8%.  Taiwan’s Taiex was up 0.6%, so was the Hang Seng closing at 18361.87.  Singapore’s Straits Times rose a tad less 0.5%, but it’s better than Sensex which closed flat for the day.  New Zealand’s NZX 50 still advanced 1.4% even after an outlook downgrade from Fitch.

It’s another weak day for the dollar:

With yet some positive news from a bank, the dollar lost some ground fetching less euro as well as the British pound.  The euro bought $1.4125, up from $1.3964 while the pound took $1.6429, up from $1.6316.  Some data from the Philly Fed also contributed to a lower greenback for the day, allowing the Japanese yen to advance against the currency.  From WSJ:

The Philadelphia Federal Reserve Business Index declined to -7.5 in July from -2.2 a month earlier, and the employment portion of the index dropped to -25.3 from -21.8. New orders and inventories also declined.

And the FT: The yen rose 0.6 per cent to Y93.62 against the dollar, climbed 0.8 per cent to Y131.81 against the euro and gained 0.8 per cent to Y153.45 against the pound.

That said, the yen edged up against the european currencies amid worries about that the CIT Group will file for bankruptcy if they secure $3bn in emergency funding.  Crude oil plays Canadian dollar and Mexican peso both fell as the commodity dropped some points today, albeit maintaining its 60-above per barrel price.

Some of the bigger currency news for the day:  New Zealand outlook was downgraded by Fitch from stable to negative, while maintaning credit rating of AA+ citing indebtedness and significant deficit to be the reasons.  From the FT: The New Zealand dollar lost 1 per cent to $0.6419 against the dollar and dropped 1.7 per cent to Y60.13 against the yen.

Markets and money – July 15

It’s a good day today for the markets:

Halfway into the trading day, the US markets are poised to close higher for the third straight day following record breaking quarter results from financial giant Goldman Sachs and chipmaker Intel, which reported after the bell yesterday.  As of 1PM in New York, the Dow is up 188 points or 2.25% to 8,548 while the S&P500 is beyond the 911 key level, rallying 20 points ot 2.22% to almost 926.  The tech index Nasdaq acts as the leader with a 2.75% increase to 1,849.

Markets in Asia as well as Europe are also encouraged by the results, with the positive outlook from Intel driving tech stocks higher and the Goldman results doing the same for financials.  Some see Intel’s guidance as an indicator of improving economy, with consumers and capital spending both expected to be on the rise.  Here’s how the markets closed in Asia:

Hong Kong’s Hang Seng Index climbed 2.1% to 18258.66 and South Korea’s Kospi rose 2.6% to 1420.86.  Australia’s S&P/ASX 200 and Taiwan’s Taiex both advanced 1.5% each, while the Shanghai Composite rose a little less at 1.4%.  India’s Sensex closed up 2.9% and Singapore’s Straits Times Index jumped 3.4%.   Meanwhile, it was a more timid showing for the Nikkei which was only up by a tenth of a percent, after the central bank maintained the key lending rate and decided to extend its liquidity measures by 3 months, from end of the third quarter to end of year.

Moving to the other region, the FTSE 100 Index was higher by 2.6% to 4346.46, the German DAX pulled up 3.1% to 4928.44 and the French CAC40 Index continued to advance for the third day 2.9% to 3171.27.  The FTSE was resilient amidst data showing 281,000 jobs were shed during the quarter while initial jobless claims were lower than expected.

Next, it’s a different scenario for the currencies today.

Meanwhile, the dollar is on a losing ground today as major currencies advance against the greenback after better than expected earnings for Intel and Goldman Sachs were released yesterday, leading to a rally in the broader markets and a more upbeat outlook.  It was also affected by news that China’s forex reserves have hit $2,130bn, with a significant increase for the month of May, pointing to a lot of hot money flowing into the economy.

The dollar fell 0.6 per cent to $1.4054 against the euro, some 0.3 per cent to $1.6359 against the British pound and a bigger 0.8 per cent to SFr1.0800 against the Swiss franc.

Rising commodity prices, including crude oil surpassing $60-a-barrel today in the markets, caused currencies tied to commodities to advance against the dollar.  The Australian dollar surged 0.5 per cent to $0.7981, higher than the Canadian dollar’s 0.2 per cent rise to C$1.1317.

Between the two safe haven currencies, the greenback was flat at Y93.58 against the yen.

Markets and money – July 14

On the day Goldman Sachs earning reported impressive numbers, here’s an overview of the global markets halftime in the trading day:

US markets are just about flat, going back and forth from negative to positive territory, despite the Goldman numbers that beat just about all expectations.  Apart from that are earnings report from Johnson and Johnson, as well as retail sales, which although higher was only caused by purchases of automobiles and gasoline.  Sales in restaurants, department stores etc. were still down removing expectations from many that the recession is over.  PPI or producer price index are also up, albeit only slighty, again driver more by food and energy prices.  At this moment, the Dow is up 14.8 points while the Nasdaq is up 3.14 and the S&P higher by almost 2.75 points.

European markets rode on the strong finish by the US market yesterday as well as the strong figures from Goldman Sachs, closing positive for the day.  The FTSE closed about 6/10 percent higher, while the CAC was up by almost a percent, at 0.98%, while the DAX had the strongest showing with 1.12% increase – that amid reports of falling investor confidence in Germany and that the house prices in the UK may have begun to stabilize after a survey conducted by the Royal Institute of Chartered Surveyors indicated that some people are pointing to higher home prices.

Markets in Asia are closed when the Goldman numbers were released but the futures are pointing to another day on the green.  The Nikkei finally ended a 9-day losing streak closing 2.3 per cent up to 9,261.81 while the broader Topix index rose 1.9 per cent to Y868.57.  Banks, energy, and auto sectors were the stars of the day for these Asian markets, leading the Australian index to rally the most so far this year, while the Hang Seng has rallied the most in a month, and the Shanghai index has reached its highest level in 13 months.

The Hang Seng rose 3.7 percent to close at 17,885.73, while the Shanghai Composite index advanced 2.1 per cent to 3,145.16.  The Indian Sensex was up 3.4 per cent to 13,853.70, the Taipei index rose 1.7 per cent to 6,639.41, the Straits Times index in Singapore gained 1.9 per cent to 2,310.55 and the Korean Kospi in Seoul climbed 0.5 per cent to 1,385.56.

Moving on to the currencies:

The pound is up against the dollar after some economic data improve market sentiments and increase hopes of recovery.  Numbers such as retail sales and housing price show to have improved, moving some investors to retreat from the dollar, which is a safe haven when risk appetite decreases.  FT is reporting: The pound rose 0.5 per cent to $1.6320 against the dollar, climbed 0.5 per cent to £0.8563 against the euro and gained 0.7 per cent to Y151.88 against the yen.

It is a bit of a different story for the euro that is at $1.3950 from $1.3994 late Monday, and the dollar bought ¥92.87 from ¥92.95.  The euro also fetched ¥129.55 from yesterday’s ¥130.08.

Many Asian currencies are up against the greenback after some positive news about Singapore’s economy walking out of a recession after it grew at an annualized 20.4% last quarter.  From the FT: The dollar fell 0.6 per cent to $0.7876 against the Australian dollar and eased 0.1 per cent to $0.6334 against the New Zealand dollar.  The South Korean won rose 1.1 per cent to Won1,294.20 against the dollar. The yen is still stronger against the dollar, but weaker against others.  From Bloomberg: The yen traded at 129.47 per euro at 10:44 a.m. in New York, compared with 129.95 yesterday. The yen gained 0.1 percent to 92.86 per dollar from 92.97. The yen lost 0.3 percent to 73.02 against the Australian dollar and weakened 0.6 percent to 81.26 versus the Canadian currency.

Just to expand a little on currencies, looking at the ruble – it rose the steepest against the dollar after crude oil has rallied past $60 a barrel, after days of hovering below it.  Russia’s currency gained 1.7 percent to 32.2282 per dollar, its strongest advance since March 19, and it was also higher by the same percent against the euro to 45.0061 after the strong Q2-performer Goldman Sachs Group Inc. stated that an increase to 44 would be a “fair value” for the ruble against the euro.

Markets and money – July 13

Here’s a preview of the markets, about halfway into the trading session in the US:

The markets in the US are slightly up after positive earnings expectations for Goldman Sachs fill the waves.  The bank is scheduled to release numbers tomorrow, and JP Morgan, Citi and BofA are set to follow this week.  This is compounded by an upgrade on the bank by Meredith Whitney, giving it a ‘Buy’ and a price target above $180.  As of this writing, the Dow is at its session high, up 130 points or 1.60% at 8277, while the S&P 500 is up 13.40 points to 892, above the 870 support level.

It is about the same story in the European markets, with the major indices finishing positive for the day after bank stocks (and apparently Meredith Whitney’s story as well) gave them a lift.  The U.K. FTSE 100 index was up or 1.3%, at 4,181.36 while Germany’s DAX Xetra rose 1.8% to 4,660.45. The French CAC-40 index was up 1.5% 3,027.93.

However, Asian markets face uncertainties closing negatively after the Japanese Prime Minister Taro Aso, whose party is lagging behind polls, called an election for August 20th.  The Nikkei lost 2.6% to 9,050.33, its ninth straight losing session. One of the few that advanced is brewery giant Kirin and the news of its planned merger with Suntory Holdings, which could potentially create a beverage titan.  The stock surged 7.8%.

Earnings woes in the US didn’t help Asian markets.  In Hong Kong, the Hang Seng Index also lost 2.6% to close at 17,254.63 while Taiwan’s Taiex and South Korea’s Kospi each tumbled 3.5%. Australia’s S&P/ASX 200 Index dropped 1.5% and India’s Sensex ended down by 0.8%.  Singapore’s Straits Times slid 1.8%.

To currencies:

On a week where earnings are bringing worries back to investors, the dollar and the yen are the winners as risk tolerance wanes and investors seek safe havens.  Add to that the economic numbers that are set to come out from the UK this week.  FT notes: UK June employment data released on Wednesday is expected to show 42,000 jobs were lost last month, while the June consumer price index data is forecast to show a further fall in inflation, with prices rising by 1.8 per cent points year-on-year compared to 2.2 per cent in 2008.

Sterling lost 0.8 per cent against the euro to €0.8684, and hit $1.6067, down 0.7 percent, a level that is about the 1-month low against the greenback.  Late Monday morning in New York, the euro was at $1.3969 from $1.3949 late Friday. The yen rose 0.4 per cent to Y92.11 against the dollar.  The Japanese currency also strengthened against the kiwi and the greenback. The dollar was at 1.0874 Swiss francs from 1.0849 Swiss francs.

Markets and money – July 10

First, to the equities:

Both the Dow and the S&P 500 are negative given earnings worries, particularly after Chevron has issued a statement saying they might miss earnings.  The energy stocks have already been leading the markets towards its trading direction and today is no difference.  Another driver is the fall in crude prices, today once again declining.  Oil has now fallen below $60 a barrel, an 18% drop just within a week from its $73 highs for the summer.  This comes amid a couple of what may be seen as good news, with GM emerging from bankruptcy and the trade gap narrowing, with exports going up and imports coming down.

The European markets are set to drop for another week after resource and energy stocks drag down the broader markets in today’s trading session.  This is also pinned to the dimming hopes of a faster economic recovery, one that was expected by some after the sharp rally this summer and some improved numbers.  Automakers are also contributing to the fall for the last day of the week.  This comes after Renault CEO said he doesn’t see improvement in the auto market until next year.  The drop in FTSE is taking it to its two-month lows.  Currently, the FTSE is down half a percent, the CAC by 1.18% and the DAX by 0.87%.

Most Asian markets are also down with Korea’s Kospi lower by 0.2%, the Hang Seng with 0.5% decline and the Shanghai Composite Index falling 0.3%. India’s Sensex was the biggest loser with 1.8% drop while Singapore ended flat. Only Australia’s S&P/ASX 200 ended positive closing 0.8% higher, helped by its mining and energy stocks.  Taiwan’s main index was also up by 0.3%.  Nikkei was another that ended almost flat after new lower shipping rates brought its shipping stocks to the downside.

From WSJ:

Japanese shipping stocks fell after a report in the Nikkei that rates on container ships from Asia to North America had been dropped for the first time in three years, reaching six-year lows. The paper said in just-ended negotiations with businesses, shippers had agreed to reduce rates by 20% to 40% for the fiscal year ending May 2010.

On to the currencies front, the dollar and the yen are stronger as risk aversion continues to push people to seek for safe havens.  FT reports the following movements in the currencies: The dollar rose 1 per cent to $1.3887 against the euro, climbed 0.6 per cent to $1.6246 against the pound and gained 1 per cent to $0.7760 against the Australian dollar. However, the yen’s display was better. The yen fared even better, rising 0.3 per cent Y92.63 against the dollar, climbing 1.3 per cent to Y128.67 against the euro and gaining 1 per cent to Y150.26 against the pound.

Euro’s weakening was due in part to worries about European banks’ profitability and the effects of Eastern European countries’ woes to them.  Another concern involves those fleeing to German bonds as an alternative to the Treasuries.

The Swiss franc however dropped 1.3 per cent to SFr1.0921 against the dollar and eased 0.2 per cent to SFr1.5157 against the euro after Jean-Pierre Roth, chairman of the Swiss National Bank, re-affirmed the need for the central bank’s intervention in the currency markets to prevent its appreciation.

Markets and money – July 9

Here’s a snapshot of today’s markets:

It’s a bit of a break from selling for many investors around the world as some of the major markets are on the green at the moment, with the US markets up with a less than a percent following better than expected jobless claims numbers and Alcoa numbers, which were released after the close yesterday beating analysts’ expectations.  The company’s CEO also provided a more hopeful outlook for the rest of the year, helping lift some of the metal producers today.

Also a day after the 9 nine firms to buy toxic assets from banks have been revealed, bank stocks are on the rise halfway through today’s trading session.

European markets are also affected by the news with the major markets up.  It helped that the UK government maintained its quantitative easing program, saying there will be no addition to it just yet.  Reuters also reported the German economy may have grown a bit during the second quarter.

Asian markets were up, with the Chinese reporting an impressive surge in its auto sales.  Nikkei was one of the few but biggest loser after the strong show of the yen recently equated to worse exports for the already lagging economy.

On to the currencies front.

With the dollar as the base currency, many of the other currencies advanced against it today as market sentiment improves and equities move higher.  On the sterling-dollar pairing, the greenback lost ground after the news that came out of the UK that there will not be additional funds in the quantitative easing program by the government.  The pound has been under pressure the past several days in anticipation of a change in the £125bn number. From the FT:

By midday in New York, sterling rose 1.1 per cent to $1.6229 against the dollar  while the dollar fell 0.7 per cent to $1.3965 against the euro and dropped 0.6 per cent to SFr1.0831 against the Swiss franc.  The Australian dollar fetched 78.27 U.S. cents, up from 77.76 U.S. cents late Wednesday.  The yen fell 0.2 per cent to Y92.87 against the dollar.

Markets and money – July 8

Today’s another mixed day in the markets. Here’s how the major indexes in Asia and Europe did and those in the US are doing.

The Hang Seng and the Nikkei both lost ground following the big sell off in the US markets the day prior.  However, there are numbers to back the sell off.  Disappointing order numbers were reported in Japan and the stronger yen increased worries about the country’s exports. Both India and Taiwan dropped over worries in the economy, with demand from China slowing for Taiwan’s tech companies.

The same happened to the markets in Europe with the FTSE, CAC and DAX all on the red albeit only less than a percent.  They are similarly being dragged down by concerns over the earnings in the US, with Alcoa kicking off the season after the bell today.  The UK is awaiting details on reform to its banks.

All three averages in the US have crossed over to the negative as of this writing, which might extend losses from yesterday.

As for the currencies, here’s where things are:

Following the heavy sell-off in the US equities markets, investors flee once again to safe haven currencies, moving the dollar and the yen higher against other major currencies. The Japanese currency, however, prevailed, as it hit a 7-week high against the greenback.  The FT reports: The yen rose 0.6 per cent to Y94.23 against the dollar, climbed 0.7 per cent to Y131.01 against the euro and gained 0.7 per cent to Y151.74 against the pound.

With the commodities leading the drop in the US, currencies with huge exposure to the sector also lost some steam.  Also from the FT:

The Australian dollar fell 0.4 per cent to $0.7866 against the dollar, while the New Zealand dollar eased 0.2 per cent to $0.6283.

Emerging market currencies also came under pressure, with the South African rand falling 1 per cent to R8.1190 against the dollar and the South Korean won easing 0.7 per cent to Won1,277.50.

Markets and money – Jul 7

Just discovered this as I was playing with the FT website. Thought it gives a good visual assessment of changes in the major markets and global currencies.

With the markets just an hour into the trading session in the US, more than halfway through in Europe, and closed in Asia, here’s how they look: (click to enlarge)

US markets are slightly down in anticipation of earnings, which kick off tomorrow with Dow component Alcoa, expected to report horrible numbers after demand for its products are believed to not have improved much. Markets in Asia yielded mixed results with China closing lower amid profit taking while India’s Sensex was higher on the day after a sharp decline yesterday.  Japanese also dropped following concerns regarding its economic outlook. Indonesia and Taiwan’s markets both rose.

And here’s how the currencies are looking:

Base currency I used was the dollar.  Apparently, green indicate the other currency strengthening against the greenback while the red means otherwise.

Some appreciation for the euro after some positive numbers from Germany came out regarding higher factory orders.  The FT reports: “By mid-afternoon in London, the euro rose 0.3 per cent to $1.4016 against the dollar, gained 0.2 per cent to Y133.60 against the yen and climbed 0.4 per cent to £0.8630 against the pound.”

On the other hand, the pound lost some ground after a surprise drop in the UK manufacturing numbers.  Also part of the story is the negative outlook given to the country by Fitch, while maintaining its AAA rating.

Also from the FT: “The pound lost 0.2 per cent to $1.6230 against the dollar and dropped 0.3 per cent to Y154.71 against the yen.”

I think this would make a good part of my regular blogging. A visualization and a brief storytelling. Yes?