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Markets Blast Off Despite the House Saying No Deal on the Cliff
FLASH: Markets Pop in Anticipation of Obama Speech, Hopeful Traders Expect a Fiscal Cliff Deal Announcement
European Markets Cling to the Flat Line Over Fiscal Cliff Negotiations
“Most European stocks fell amid concern U.S. lawmakers won’t reach a budget deal in time to prevent automatic tax increases and spending cuts from coming into effect tomorrow. U.S. index futures signaled a lower opening for equities and Asian shares were little changed.
Iberdrola SA (IBE), Spain’s largest utility, slid 1.5 percent after Bolivia nationalized four of its business units. Bankia SA (BKIA) rallied 5 percent, rebounding from its record low…”
Comments »Emerging Stocks Climb for Sixth Day on China Output
“Emerging-market stocks rose, set to finish 2012 with a sixth day of gains, as Chinese manufacturing data beat estimates and the deadline approached for U.S. lawmakers to avert automatic tax increases and spending cuts.
Chinese industrial companies such as Zhuzhou CSR Times Electric Co. rallied after the manufacturing data. China Life Insurance Co. (601628) jumped to a 16-month high in Hong Kong after the nation’s securities watchdog said insurers would be allowed to set up mutual funds. Lenovo Group Ltd. (992), the world’s biggest maker of personal computers, fell for a second day to a five- week low after its chief executive officer cut his stake.
The MSCI Emerging Markets Index (MXEF) added 0.1 percent to 1,056.31 as of 4:57 p.m. in Hong Kong to its highest level since March, extending this year’s gains to 15 percent. China’s manufacturing expanded at the fastest pace since May 2011 in December, beating a preliminary estimate, according to a survey released today by HSBC Holdings Plc and Markit Economics. The U.S. Congress is working to avert more than $600 billion in tax increases and federal spending cuts, the so-called fiscal cliff, as the year-end deadline approaches.
“The data shows recovery in the Chinese economy and that’s positive for industrial and metal producers,” said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. in Kochi, South India. “Most traders have their eyes on the U.S. fiscal cliff and how it unfolds. With most markets closed, most investors are in a holiday mood.”
Comments »Global Markets Trade Mixed, U.S. Futures are Down
$XLY, $XLP, & $NDX Suggest a Potential Bear Market Ahead
“The US market opened lower to start the week, continued lower for much of the holiday shortened week, and ended giving back all of last week’s gains. For the week the SPX/DOW -1.9%, and the NDX/NAZ were -2.1%. Asian markets gained 1.8%, European markets lost 0.7%, and the DJ World index lost 0.7%. On the economic front positive reports continued to outnumber negative reports: 7 to 2. On the uptick: Case-Shiller, new/pending home sales, new home prices, the Chicago PMI, the WLEI and weekly jobless claims improved. On the downtick: consumer confidence, and the monetary base. Next week the monthly Payrolls report, ISM and Auto sales. Best your week!
With the bull market stumbling we decided to take a look at the leading sectors that have supported this bull market. Leading sectors shift from one group to another group in alternating bull markets. This bull market’s leaders have been the Techs and Industrials, naturally, plus Consumer discretionary (XLY) and staples (XLP).
Typically when a bull market nears its end, the leading sectors are usually displaying five wave patterns up, from the bear market lows, and then start to head lower. A quick review of XLY, XLP and the NDX for techs displays this potential pattern. The industrial DOW will follow shortly…”
Comments »17 New Ideas That Are Actually Worth Millions
“Kickstarter is a place where entrepreneurs and artists can post ideas and raise money from other users.
Before 2012, no project had ever raised $1 million on the platform. In the last 12 months, 17 projects exceeded 9-figure fundraises on Kickstarter.
Pebble, the most funded Kickstarter project of all time, raised $10.2 million in less than one month from 67,000 people.
So what kind of ideas are people paying millions for?
The projects include everything from video games to home automation systems.
Comments »Market Update
The markets are down about one half of a percentage point on very low volume. Around noon we began to pare some losses.
The dollar remains strong so metals and commodities are down. Energy stocks are experiencing the most downside for the moment, while transports and the retail sector are doing better than the broader market.
The markets are hoping to hear something from today’s meeting of congressional leaders with the president which will start at around 3pm est.
[youtube://http://www.youtube.com/watch?v=dqXmaFPn604 450 300]
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Emerging Markets Continue to Melt Up in Expectation China Will Add Stimulus to Fuel Growth
“Emerging-market stocks rose for a fifth day on speculation China will take steps to boost domestic consumption and as U.S. lawmakers arranged meetings before a budget deadline.
BYD Co. (1211), a Chinese maker of electric vehicles rallied 4.1 percent in Hong Kong. Citic Securities Co. (6030) led Chinese brokerages higher after the country’s regulator said it will ease bond financing for securities firms. OMV Petrol Ofisi AS (PTOFS), Turkey’s biggest fuel retailer, rose 4 percent after receiving approval to sell a unit. Russia’s flagship airline OAO Aeroflot rose 2.4 percent.
The MSCI Emerging Markets Index (MXEF) added 0.4 percent to 1,053.87 as of 10:55 a.m. in London, poised for the highest close since April 3 and extending a sixth weekly gain to 1 percent. China may introduce measures to boost consumption in areas such as autos, household electronics and solar, the China Securities Journal said. Congressional leaders plan to meet with President Barack Obama today and House Republicans will convene Dec. 30 as lawmakers seek to avoid the more than $600 billion in spending cuts and tax gains scheduled to start in January…”
Comments »Asia Rallies, Europe Shits the Bed, U.S. Futures Count the Seconds on the Fiscal Clock
The VIX Spikes Above 20 for the First Time Since August
Market Update
Markets got off to a positive start, but took a tumble on poor consumer confidence and statements by Senator Harry Reid. Reid spoke of the negligence republicans took by not showing up to work in order to try and negotiate a deal on the Fiscal Cliff.
The inside story on the hill is that we will go over the cliff.
Currently the DOW just bounced slightly off the lows of the day. We are down 135 bones currently with a strong dollar and weak commodity space. Gold did manage to eek out a minor gain.
Expedia is the best performer on the NASDAQ followed by Deckers….
Technology leads the way down on the NASDAQ as $GOOG and $AAPL are down 1%+
[youtube://http://www.youtube.com/watch?v=4AcS53gzc1M 450 300] Comments »Tech Stocks Help Emerging Markets to Rise
“Emerging-market stocks rose for a fourth day, led by technology companies, as China’s industrial profits increased and U.S. lawmakers prepared to resume budget talks.
BYD Co. (1211), the Chinese carmaker partly owned by Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), climbed to an eight-month high in Hong Kong after saying it plans to build a solar power plant. HTC Corp. (2498) advanced to the strongest level in three months in Taipei.Turkiye Is Bankasi (ISCTR) AS, Turkey’s largest bank by assets, gained 1.3 percent as the country’s benchmark index climbed to a record high.
The MSCI Emerging Markets Index added 0.4 percent to 1,050.68 at 11:17 a.m. in London, heading for its biggest gain in more than a week. Net income at Chinese industrial companies increased 22.8 percent to 638.5 billion yuan ($102 billion) in November from a year earlier, according to government data today. U.S. lawmakers today will resume budget negotiations aimed at avoiding more than $600 billion in tax increases and spending cuts scheduled to take effect Jan. 1…”
Comments »European Markets Try to Hang On to Early Gains
European stocks were little changed after the Christmas holiday as U.S. lawmakers return toWashington to try for a solution to the fiscal cliff. U.S. index futures were little changed, while Asian shares advanced.
Clariant (CLN) AG, a Swiss chemical company, rose 3.5 percent after selling three units. Total SA (FP), France’s biggest oil company, climbed 1.4 percent. Bankia tumbled 14 percent as Spain’s bank-rescue fund said its parent company has a negative value of 10.4 billion euros ($13.8 billion).
The Stoxx Europe 600 Index (SXXP) increased 0.1 percent to 280.76 as of 10:50 a.m. in London. Trading volume was 17 percent less than the 30-day average, according to data compiled by Bloomberg. The gauge has rallied 15 percent in 2012 as the European Central Bank introduced an unlimited bond-buying program, putting it on course for the best year since 2009.
“What will give the market direction is fiscal-cliff news,” saidArnaud Scarpaci, a fund manager at Montaigne Capital in Paris, which oversees $225 million. “If there isn’t an agreement tonight, we can start worrying. If there is an agreement, we can have a little rally.”
Futures on the Standard & Poor’s 500 Index slipped less than 0.1 percent today. The MSCI Asia Pacific Index (MXAP) rose 0.4 percent as Japan’s benchmark Nikkei 225 Stock Average surged to the highest since March 2011 amid calls from the new government for more monetary easing…”
Comments »Asian Markets Pare Early Gains
“Asian stocks rose, with the regional benchmark index headed for a second month of advance, as the yen touched a 27-month low against the dollar on prospects for more stimulus andChina’s industrial companies’ profit gained.
Mazda Motor Corp. (7261), an automaker that gets 28 percent of its sales in North America, advanced 7.1 percent in Tokyo as newly installed premier said “bold’ monetary policy is one of the three pillars of his economic measures. Country Garden Holdings Co. (2007), a Chinese real estate developer, rose 3.4 percent in Hong Kong, whose equity market reopened after a two-day holiday. SK Telecom Co., the mobile telephone carrier among 119 companies trading without rights to year-end dividends on South Korea’s benchmark index, dropped 4.1 percent.
The MSCI Asia Pacific Index gained 0.4 percent to 129.01 at 6:49 p.m. in Tokyo. Almost two stocks rose for each that fell on the measure, which has advanced 13 percent this year. Japanese shares rose to their highest since just before last year’s record earthquake and tsunami…”
Comments »Global Markets Trade Unch Apart From a Few European Markets, U.S. Futures Look to Erase Yesterday’s Losses
Asia Trades Higher, Europe is Flat, and U.S. Futures are Slightly Above Unch
VIX Spikes 10% as Congress Flounders
Global Markets Go Back to Fretting Over the Stalemate on the Fiscal Cliff
“Stocks fell around the world, Treasuries gained and the yen strengthened against all its major peers after House Republican leaders scrapped a plan to allow higher taxes as budget talks stalled. Commodities declined.
The MSCI All-Country World Index dropped 0.4 percent at 11:43 a.m. in London. Standard Poor’s 500 Index futures slumped 1.3 percent, after plunging as much as 3.4 percent. The Stoxx Europe 600 Index slid 0.6 percent, falling from a 19-month high. The yield on 10-year Treasuries decreased three basis points to 1.77 percent. The yen climbed 0.3 percent, while the euro weakened 0.3 percent. The S&P GSCI gauge of 24 commodities lost 0.4 percent and oil in New York falling 1.1 percent….”
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