Oct 5, 2012
Why do the well-to-do whine so? Why do they wring their hands?
At this point in the campaign, how can the undecideds expect to have anyone's support?
A Supreme Court ruling against the University of Texas might put ethnic and racial diversity on college campuses on a firmer footing for the long term.
The Obama administration should not abandon efforts for a negotiated solution in Afghanistan.
A federal judge has pushed the city toward ending racial bias in the Fire Department.
President Obama's program to suspend deportation of young immigrants comes with a daunting paperwork challenge, but progress is being made.
New York State's chief judge unveiled a groundbreaking rule that will require law students to perform 50 hours of pro bono legal work.
Read the full opinion report, including editorials, columns, op-eds and Opinionator. Go to the Section »
Mitt Romney's energy policy whoppers.
Mind that output gap.
Some notes on last night's presidential debate.
Guest blogger Takayuki Nishi argues that China contradicts itself when it claims that the Senkaku/Diaoyu Islands are inherently Chinese territory.
Friday, 05 October 2012
Traders Daily Alert
Tips for Traders
Troubling Signs in the Stock Market, Ryan Detrick
Charts in Play
A Beer Bull Market, Tom Aspray
Safe Currency Pair: an Oxymoron?, John Forman
Trading Idea of the Day
Today's Featured Videos & Exclusive Interviews
|ADVFN III||Weekly FOREX Currency REVIEW|
Friday, 05 October 2012
|Weekly Market analysis|
The Euro-zone will remain an important short-term focus as uncertainty surrounding the Spanish situation continues. There will be a series of important Summit meetings during the month with Spain under intense pressure to make a bailout request. There will, however, be the threat of increasing tensions, especially given political protests and growing fears over the implications of continuing recession. Central banks will maintain an aggressive stance in providing substantial global liquidity which will help protect risk appetite, at least to some extent.
Key events for the forthcoming week
The US economic releases have maintained a mixed tone during the week with stronger than expected readings for the PMI data increasing expectations of a stronger fourth quarter. The Federal Reserve, however, has stated its determination to maintain quantitative easing until unemployment falls which will limit any dollar support. The US should still gain some support from expectations of out-performance compared with the Euro-zone. International growth considerations will also remain important and there should be some underlying dollar support from fears over the outlook. The US currency will, however, find it difficult to gain strong support given reduced reserve support from reserve managers.
The dollar was unable to secure any significant gained during the week with an underlying lack of enthusiasm for the currency not offset by risk-related demand.
The latest US ISM manufacturing index was stronger than expected with the first reading above the 50 level for four months at 51.5. The latest ISM non-manufacturing index was stronger than expected at 55.1 for September from 53.7. There will be relief surrounding the orders data, but some disappointment surrounding the employment component which dipped to just above 50.
The US jobless claims data was slightly better than expected at 367,000 in the latest week from a revised 363,000 previously which offered some encouragement surrounding the labour market. The latest payroll data will inevitably be important for sentiment on Friday with employment gains and trends in the workforce watched very closely, especially given the potential political implications.
The Fed minutes were generally dovish as the Fed reinforced its unease surrounding employment trends. Some members were uneasy over further quantitative easing and there was also some pressure for the Fed to drop references to rates being left low for an extended period.
|ADVFN III||World Daily Markets Bulletin|
Friday, 05 October 2012
Upbeat Jobs Data Leads To Early Strength On Wall Street
Stocks have moved moderately higher in early trading on Friday, as traders react positively to the monthly jobs report. The major averages have all moved to the upside, adding to the gains posted in the two previous sessions.
The major averages have not seen much follow-through on their initial upward move but remain firmly positive. The Dow is up 59.84 points or 0.4 percent at 13,635.20, the Nasdaq is up 15.27 points or 0.5 percent at 3,164.73 and the S&P 500 is up 7.84 points or 0.5 percent at 1,469.24.
The early strength on Wall Street comes on the heels of the release of a report from the Labor Department showing that continued job growth pushed the unemployment rate down to its lowest level in well over three years.
The report showed that employment increased by 114,000 jobs in September, roughly in line with the increase expected by economists.
Job growth in the previous month was much strong than previously estimated, with employment rising by 142,000 jobs in August compared to the addition of 96,000 jobs originally reported.
The continued job growth pushed the unemployment rate down to 7.8 percent in September from 8.1 percent in August. With the drop, the unemployment fell to its lowest level since January of 2009.
The notable drop by the unemployment rate came as the volatile household survey said total employment rose by 873,000 jobs in September compared to the addition of 418,000 people to the workforce.
Peter Boockvar, managing director at Miller Tabak, said, "Bottom line, the largest increase in the household survey since 2003 is the main focus of the markets due to the drop in the unemployment rate that it caused, thus putting aside the lackluster gain in private sector payrolls for the 2nd straight month."
Airline stocks have shown a strong move to the upside in early trading, driving the NYSE Arca Airline Index up by 1.7 percent. With the gain, the index has risen to its best intraday level in almost three months.
Significant strength has also emerged among housing stocks, as reflected by the 1.3 percent gain being posted by the Philadelphia Housing Sector Index. Brokerage, banking, and steel stocks are also posting notable gains in early trading.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday, even as the Bank of Japan held off on fresh easing measures. Japan's Nikkei 225 Index rose by 0.4 percent, while Hong Kong's Hang Seng Index advanced by 0.5 percent.
The major European markets have also shown notable moves to the upside on the day. While the U.K.'s FTSE 100 Index has risen by 0.8 percent, the German DAX Index and the French CAC 40 Index are climbing 1.2 percent and 1.6 percent, respectively.
In the bond market, treasuries have come under pressure on the heels of the upbeat jobs data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5.5 basis points at 1.72 percent.