“China’s stocks fell for a fourth day, the longest stretch of losses in three months, on speculation regulators may resume initial public offerings. Drugmakers, financial stocks and small-company shares dropped.

Kangmei Pharmaceutical Co. (600518) tumbled 3.9 percent, sending a gauge of health-care companies to its lowest level in three weeks. China Life Insurance Co. slid 1.7 percent as shares resumed trading after a suspension. Ping An Bank Co. paced declines for lenders as the China Securities Journal said the banking regulator may stop some banks from operating wealth management businesses if they fail to improve their products.

The Shanghai Composite Index (SHCOMP) slid 1 percent to 2,286.61 at the close, the biggest loss since March 4. The CSI 300 Index declined 1.4 percent to 2,555.61. The ChiNext index of start-ups dropped 3.4 percent, the most since Nov. 27.

“The possibility IPO share sales will resume is spooking the market,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. “Small-caps will bear the brunt if IPO suspensions are lifted as the majority of the new listings come from small-sized companies. That’ll drag down valuation of small-caps.”

Today’s losses pared the Shanghai Composite’s gain this year to 0.8 percent. Data over the weekend showed industrial output had the weakest start to a year since 2009 and lending and retail sales growth slowed.

“The worry about the strength of the economic recovery persists,” said Wu of Dazhong.

Smallcaps Drop…”

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It is being reported that large positions of being short Yen while long Dollar are being closed out. If this is the case then, traders are expecting a larger shift in the market place. Story developing…..

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U.S. equities have shrugged off negativity from overseas. After being down not so much we are now trading up by 28 points on the DOW and nearly 2 points on the S&P. Overall, a digestion day after a monster week of performance and new highs.

Europe made a comeback as we did not tank.

Market update

European boards

[youtube://http://www.youtube.com/watch?v=oBIxScJ5rlY 450 300]

 

 

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“European stocks fell from a 4 1/2- year high as Fitch Ratings downgraded Italy and China’s retail sales and industrial output missed forecasts. U.S. index futures declined, while Asian shares rose…

“The downgrade in Italy will lead to some nervousness that more intervention will be needed, especially as it is clear that Cyprus also needs a bail out.” Felicity Smith, a London-basedfund manager at Bedlam Asset Management Plc, which manages about $500 million, wrote in an e-mail. “Ultimately,Germany will be the main contributor to the cost of this. I just see today’s downgrade as a bit of realism returning to the market, rather than a reason to panic.” …

The number of shares changing hands in companies listed on the Stoxx 600 was 29 percent lower than the 30-day average today, according to data compiled by Bloomberg.

Fitch cut Italy’s credit rating by one level after the close of equity markets on March 8, as last month’s election produced political paralysis that threatens the country’s ability to respond to a recession and the European debt crisis.

The rating company lowered Italy’s government bond rating to BBB+ from A- with a negative outlook. That’s three levels above junk and one higher than Spain, according to data compiled by Bloomberg.

“The Italian downgrade has taken some of the wind out of the market’s sails, reminding investors that the European situation remains largely unresolved,” Richard Hunter, head of U.K. equities at Hargreaves Lansdown Plc in London, wrote in an e-mail…..”

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“International investors who propelled the biggest rally for Japanese shares since 1987 would have earned almost as much in the Standard & Poor’s 500 Index once the yen’s 16 percent tumble is taken into account.

The Topix Index, the country’s broadest equity measure, has climbed 41 percent in the 74 days since the rally began in November. After adjusting for the yen’s depreciation against the dollar, the return shrinks to 18 percent, or three percentage points more than the S&P 500 (TPX), according to data compiled by Bloomberg. This year’s 18 percent advance in the Nikkei 225 Stock Average (NKY) falls to 6.8 percent in dollar terms, less than the 8.8 percent increase by the U.S. benchmark index.

Foreign investors who bought a net 4.19 trillion yen ($43.9 billion) during the rally’s first 16 weeks are repeating a pattern that has occurred during advances since at least 1997. The erosion highlights the hazards of the world’s third-largest equity market, where prices have moved in the opposite direction of the yen 67 percent of the time the last four months.

“People just simply keep looking at the return and not paying attention to the risks,” Malcolm Polley, who manages $1.1 billion as chief investment officer at Stewart Capital Advisors LLC in Indiana, Pennsylvania, said in a March 6 phone interview. “You’re trying to make your money on the currency side and the market side, but the outcome is only good if you make the right call on the market and on the currency.”

Weekly Gain…”

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Asian shares dropped, with the regional benchmark index snapping two days of gains, led by Samsung Electronics Co. and Australian banks. The Nikkei 225 Stock Average pared gains after the Bank of Japan rejected a call for an immediate start to open-ended asset purchases.

Samsung, which yesterday announced it will invest 10.4 billion yen ($111 million) in troubled Japanese electronics maker Sharp Corp., fell 2.6 percent in Seoul. Sharp tumbled 7.9 percent.Australia & New Zealand Banking Group Ltd., Australia’s No. 3 lender by market value, slid 0.8 percent after announcing plans to cut jobs and as the nation reported a bigger-than- expected trade deficit. Honda Motor Co. (7267), Japan’s second-biggest automaker by market value, pared gains to 0.6 percent in Tokyo.

The MSCI Asia Pacific Index slipped 0.3 percent to 135.44 as of 7:38 p.m. in Tokyo, erasing a gain of less than 0.1 percent. About the same number of shares rose as fell the index, which capped a four-month advance in February, the longest such winning streak since September 2009, as central banks maintained loose monetary policy to support economic growth.

“The market is certainly not as cheap, but we don’t think it’s overpriced,” said Angus Gluskie, managing director at Sydney-based White Funds Management, which oversees more than $350 million. “Most investors believe the growth upside outweighs the risks.”

Shares on the MSCI Asia-Pacific Index traded at 14.9 times estimated earnings compared with 13.9 for the Standard & Poor’s 500 Index and 12.6 for the Stoxx Europe 600, according to data compiled by Bloomberg.

Australian Trade

Australia’s S&P/ASX 200 Index slipped 0.2 percent. The nation’s trade deficit was twice as wide as economists forecast in January as floods in the northeastern state of Queensland disrupted coal exports and telecommunications equipment imports surged.

South Korea’s Kospi Index declined 0.8 percent. Hong Kong’s Hang Seng Index was little changed. China’s Shanghai Composite Index slid 1 percent, while Taiwan’s Taiex Index increased 0.1 percent.

Japan’s Nikkei 225 rose 0.3 percent, paring a gain of as much as 1.2 percent.

Futures on the Standard & Poor’s 500 Index climbed 0.2 percent today. The U.S. equity gauge gained 0.1 percent yesterday and the Dow Jones Industrial Average extended its record high after a report by the ADP Research Institute Research Institute showed companies added more workers than expected in February.

Factory Orders…”

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“House Speaker John Boehner told CNBC’sLarry Kudlow on Wednesday that a long-term deal on entitlements is possible, and there’s no good reason for the Obama team to have shut down the White House tour.

As the mandatory budget cuts continue to take effect, Boehner said in the exclusive interview, he believes the American people still know that Washington primarily has a spending problem.

While Boehner insisted that President Barack Obama still doesn’t understand that spending is the real issue, he was more optimistic about the President’s offers to reform entitlements. Boehner says he believes talk of limiting Social Security benefit increases and “means testing” Medicare to disqualify the wealthiest seniors, is for real and they could be a basis for a “grand bargain” with the President…..”

 

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“Dow Down 50% Against Gold Since Last Record Dow in October 2007

Today’s AM fix was USD 1,574.00, EUR 1,207.98 and GBP 1,043.42 per ounce.
Yesterday’s AM fix was USD 1,584.25, EUR 1,214.82 and GBP 1,044.33 per ounce.

Silver is trading at $28.68/oz, €22.10/oz and £19.09/oz. Platinum is trading at $1,596.70/oz, palladium at $736.00/oz and rhodium at $1,200/oz.

Gold rose $1.20 or 0.08% yesterday in New York and closed at $1,575.00/oz. Silver surged to a high of $29.07 and fell down to $28.51, but it still finished with a gain of 0.42%.

Cross Currency Table – (Bloomberg)

Gold edged higher in Asian and European trading today, supported by modest physical demand in Asia and from central banks. This continuing demand is creating expectations that prices will consolidate at current levels before moving higher again…”

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“Stocks and commodities rallied as China vowed to maintain its growth target and investors bet central banks will continue stimulus measures. U.S. equity-index futures rose after the Dow Jones Industrial Average climbed to within 0.3 percent of a record close yesterday.

The Stoxx Europe 600 Index climbed 1.2 percent at 6:35 a.m. in New York. Dow futures climbed 0.2 percent. The Shanghai Composite Index (SHCOMP) rebounded 2.3 percent from its biggest loss since August 2011. The Standard & Poor’s GSCI gauge of 24 commodities rose 0.4 percent, as copper jumped 0.6 percent and New York oil advanced 0.2 percent. Italy’s 10-year bond yield fell 11 basis points to 4.77 percent and the rate on similar- maturity Portuguese notes fell to a one-month low.

China will keep its economic growth target at 7.5 percent for this year and plans a 10 percent jump in fiscal spending, the government said during the start of the National People’s Congress today. European finance chiefs may next month commit to giving Ireland and Portugal more time to repay bailout loans, Economic and Monetary Affairs CommissionerOlli Rehn said yesterday. Euro-area services output shrank less than initially estimated in February, a report showed before U.S. data that many indicate the services industry kept growing last month.

“The continued penchant for monetary largesse by the major central banks around the world still does provide an unprecedented cushion,” said Benjamin Yeo, the Singapore-based head of Asian investment strategy at Barclays Plc’s wealth management unit, which has about $250 billion under management. “The risk-on mode will prevail for the remainder of 2013.”

Record Profit….”

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The markets get a Teflon rating once again as they shrug off fear of slowing in China, Shitaly political concerns, and  sequestration.

Commodities and related sectors take it on the chin despite market turn around.

DOW up 38

NASDAQ up 12

S&P up 7

Gold up $1

WTI down  $0.63

[youtube://http://www.youtube.com/watch?v=-XyTpENuoCI 450 300]

 

 

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“Nikkei 225 Stock Average futures volume plunged more than 90 percent today as a software error forced a halt to Osaka trading of some derivatives, the first outage for Nasdaq OMX Group Inc. (NDAQ) technology installed in 2011.

Trading of Nikkei 225 options and futures in Japan resumed at 2:10 p.m. The failure began at 10:20 a.m. when a program processing index options stopped responding, Osaka Securities Exchange Co. Managing Director Yoshinori Karino said at a press briefing. The volume of March contracts traded plummeted to 5,718, about 7 percent of the 14-day moving average, according to data compiled by Bloomberg.

Osaka is the only venue in Japan where Nikkei 225 futures change hands. The trading system that failed today, known as J- Gate, uses technology from Nasdaq OMX. The Japan bourse, formed by the merger of Osaka Securities Exchange Co. and Tokyo Stock Exchange Group Inc., which suffered two trading-system halts last year, plans to adopt J-Gate for all derivative transactions by March 2014, it said in October.

“There’s nothing positive about the troubles we saw today for the stock market,” Hidehiro Tomioka, who helps oversee $1.3 billion in Japanese equities at Manulife Asset Management (Japan) Ltd. in Tokyo. “It’s going to breed distrust among global investors, who are keeping a close eye on Japanese stocks. Generally speaking, it’s easy for there to be problems during and after a merger. It’s important that they clarify what the problem was.”

TSE Failure…”

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The Nikkei gapped up nearly 2% at the open and then traded as high as 2.46%. Then at 10:20 am Nikkei time a software problem caused futures volume to crash 90% forcing a closing of a derivatives exchange. Trading resumed four hours later where the Nikkei managed to close positive by 0.40%.

Shitaly hurt the Euro as newspapers try to focus on election and government uncertainty, but the real deal is that a upstart electee for the Italian government is talking referendum for Italy to leave the Euro. While he may never be elected  and a referendum may never be held, it is very troublesome none the less that any notion of said referendum to vote Italy out of the Euro would be a beginning to the end of a stable region.

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“Asian markets look poised for further gains — with China, Japan, and Korea expected to lead the group — after lagging behind the U.S. since the markets hit bottom in 2009.

The MSCI AC Asia Index is up 81% from the March 9, 2009, trough, powered by 200%-plus gains from the region’s smaller markets, including Indonesia, the Philippines, and Thailand, which delivered strong domestic growth in spite of the global malaise. Recent political stability and stronger financial health set the stage for much of that growth, but with valuations climbing to as high as 19 times 2013 profit estimates for the Philippines, some investors are taking a pass — even though the longer-term prospects are promising.

Instead, strategists are looking to the region’s biggest markets to regain their leadership. Fears of a hard landing in China are easing. A steadier global economy offers upside for Korea’s exporters, and new Japanese Prime Minister Shinzo Abe has introduced stimulus measures and a new inflation target — known as Abenomics. All could rejuvenate the market.

The MSCI AC Asia Index’s gains from the March 2009 trail the 115% rebound in the Dow Jones Industrial Average, but since June, Asia’s 22% rise has outpaced the 16% gain in the Dow. Even so, at 10.8 times 2014 earnings, the MSCI AC Asia Index is slightly cheaper than the Dow, which trades at 11.6 times 2014 earnings. Strategists say the Asian markets possess more of the factors needed for further gains.

“We often say that the first 20% of a rally is not driven by fundamentals, but the next 20% is where companies and economies need to deliver,” says Hasan Tevfik, a global equity strategist at Citigroup. “On that basis, you can tick more of the conditions off for Asia than in Europe and even the U.S.”

Earnings growth is one such condition, and Asia, excluding Japan, has a better shot at delivering double-digit growth this year than Europe or the U.S., Tevfik says. That’s not to say the region is about to see a raft of earnings upgrades, but less bad news is likely to be a major driver, especially as the pace of earnings downgrades in China and India decelerates….”

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“After taking money off the table toward the end of 2012, individual investors came back with a vengeance in January, adding a record $80.6 billion to their mutual fund holdings, according to the Investment Company Institute.

Investors added nearly $38 billion to stock funds during the month, with a little more than half of that flowing into international stocks.

Nearly $33 billion, or 41% of the total monthly inflow, went into bond funds.

That doesn’t come as much of a surprise. Investors have shown a strong attraction for bond funds since the financial crisis. While the bet has paid off so far, experts are warning that ongoing investment in bond funds could leave investors with heavy losses when interest rates begin to rise….”

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“24/7 Wall St. often looks for crazy volume moves and there are more than just a handful today.

AFC Enterprises, Inc. (NASDAQ: AFCE) is up 8% at $32.41 after being called a Buy by Jim Cramer last night. Interestingly enough, this is a 52-week high as the prior 52-week range was $15.33 to $32.26. We have seen 390,000 shares trade hands versus a usual volume of about 150,000.

American Public Education, Inc. (NASDAQ: APEI) is down 7% at $36.20 after yesterday’s earnings against a 52-week range of $24.88 to $42.17 and the 403,000 shares so far compares to a mere average daily volume of only 93,000 shares.

Atlantic Power Corporation (NYSE: AT) is down 29% at $7.06 at a new 52-week low under the prior range of $9.90 to $15.18 after earnings and cutting its dividend. The 7.2 million shares so far is closing in on a 10X volume spike versus the average volume of 828,000 shares.

EV Energy Partners LP (NASDAQ: EVEP) is down 7% at $52.07 against a 52-week range of $43.56 to $73.75. We have seen volume of 1.04 million shares (or units) versus average daily volume of only 278,000.

Foster Wheeler AG (NASDAQ: FWLT) is down almost 17% at $19.98 against a 52-week range of $15.26 to $27.13 after earnings were light this morning. What really stands out is the 7.45 million shares versus an average daily volume of 873,000 shares. That will be a 10X volume spike by the end of the day. This is the highest volume going back to 10.3 million shares one day all the back on November 30, 2011.

GMX Resources Inc. (NYSE: GMXR) is one hardly ever mentioned or noticed, but not this Friday. At $3.58, the 48% gain is on volume of over 4 million shares. That is a 30X volume spike against an average volume of about 134,000 shares. We went back over three years ago and could not find a day with this much trading volume….”
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