Pages

Search This Blog

Translate

Search Tool




Oct 5, 2012

The New York Times Opinion -October 5, 2012-.: Pity the Plutocrats


The New York Times

October 5, 2012

Opinion Today



Campaign Stops

Pity the Plutocrats

Why do the well-to-do whine so? Why do they wring their hands?
Idiot's Delight
Opinionator

Idiot's Delight

At this point in the campaign, how can the undecideds expect to have anyone's support?
Op-Ed Contributor

Moving Beyond Affirmative Action

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.
Is Islam an Obstacle to Democracy?
Room for Debate

Is Islam an Obstacle to Democracy?

If Arab nations were to "draw on Islamic traditions," would they favor democratic government?
Haidt's Problem With Plato
Opinionator | The Stone

Haidt's Problem With Plato

In "The Righteous Mind," Jonathan Haidt argues that psychologists have overturned philosophers' view of reason. But there are ways for the two groups to work together.
In the Eyes of the Beholden
Latitude

In the Eyes of the Beholden

The economic crisis has put Spain center stage in the Continent-wide drama, but Spaniards are feeling cut out of their own story.
ADVERTISEMENT
Editorial

Peace Talks With the Taliban

The Obama administration should not abandon efforts for a negotiated solution in Afghanistan.
Editorial

Fair Tests for Firefighters

A federal judge has pushed the city toward ending racial bias in the Fire Department.
Editorial

The Documented Life

President Obama's program to suspend deportation of young immigrants comes with a daunting paperwork challenge, but progress is being made.
Editorial

A Challenge to Aspiring Lawyers

New York State's chief judge unveiled a groundbreaking rule that will require law students to perform 50 hours of pro bono legal work.

The Opinion Pages

Read the full opinion report, including editorials, columns, op-eds and Opinionator. Go to the Section »
Taking Note

About That '$90 Billion' Green Energy Tax Break

Mitt Romney's energy policy whoppers.
Wages, Prices, Depressions, Deficits (Wonkish)
The Conscience of a Liberal

Wages, Prices, Depressions, Deficits (Wonkish)

Mind that output gap.
A Rout and Its Consequences
Evaluations

A Rout and Its Consequences

Some notes on last night's presidential debate.
Nicholas D. Kristof Blog

The Diaoyu/Senkaku Islands: A Japanese Scholar Responds

Guest blogger Takayuki Nishi argues that China contradicts itself when it claims that the Senkaku/Diaoyu Islands are inherently Chinese territory.

ADVFN III Evening Euro Markets Bulletin -October 4, 2012-.

ADVFN III Evening Euro Markets Bulletin  
Daily world financial news

Friday, 05 October 2012


London Market Report
To view the charts please add newsdesk@advfn.com to your contact list
FTSE 100EuronextDax perfCAC 40
Enable images to view FTSE 100 chart Enable images to view Euronext chart Enable images to view Dax perf chart Enable images to view CAC 40 chart
Please click on the images to view our interactive charts
Miners surge after US jobs figures beat forecasts

Market Movers
techMARK 2,161.02 +0.47%
FTSE 100 5,871.02 +0.74%
FTSE 250 12,061.35 +0.89%
The FTSE 100 index finished the day with decent gains on Friday as some better-than-expected employment figures from the US lifted sentiment late on.

“A firmer but fairly lacklustre morning in Europe was given fresh impetus this afternoon after the US September employment report, saw the unemployment rate slide under eight per cent for the first time since Obama became President,” said market analyst Michael Hewson from CMC Markets.

US non-farm payrolls increased by 114,000 in September, ahead of the previous gain of 96,000 and the 111,000 rise expected by analysts. The unemployment dropped to 7.8% from 8.1% due to a rise of 873,000 in the number of employed.

Analyst Michael Gapen from Barclays Research said that the better-than-expected report is unlikely to alter the Federal Reserve’s plans for more quantitative easing (QE): “We think the unemployment rate would need to decline further from here in the October and November reports before the Fed would think about not fully converting its Treasury purchases under Operation Twist to open-ended purchases,” he said.

According to German paper Handelsblatt, the International Monetary Fund (IMF) will reduce its global gross domestic product (GPD) growth forecast to 3.3% this year, down from the prior 3.4% estimate. In 2013, growth will accelerate to 3.6%, though still below the prior expectation of a 3.9% rise.

Meanwhile, Greek Prime Minister Antonis Samaras has signalled that his country could not survive beyond November if it isn’t granted the next tranche of bailout aid.

Spanish Minister of Economy Luis de Guindos has insisted that his country doesn’t need to be bailed out at all as he defended Spain’s progress on deficit reduction.
FTSE 100: Risk appetite benefits the miners
Mining stocks were among the highest risers after the US employment report from the States improved the demand outlook for commodities. ENRC, Kazakhmys, Evraz and Vedanta were the top three performers by the close. Vedanta was making gains even though its confirmed this afternoon that the mining ban in Goa was still ongoing.

In contrast, Anglo American sank into the red this afternoon after its 80%-owned platinum operation, Amplats, was forced to sack around 12,000 striking employees from its Rustenberg project in South Africa. Amplats has lost platinum production of 39,000 ounces since the industrial action began three weeks ago, which will result in around 700m South African rand (nearly £50m) of lost revenue.

Luxury brand Burberry rose after Morgan Stanley upgraded the stock to 'overweight' this morning. Engineering group IMI was a high riser after Morgan Stanley and JPMorgan Cazenove both reiterated their 'overweight' ratings on the shares.

Oilfield services firm Wood Group was in demand after saying that it is still confident in hitting full-year profit targets, with conditions in energy markets remaining favourable. "We anticipate strong operating cash flow in the second half, and our strong balance sheet provides a robust platform for growth," the group's interim management statement said.

Technology firm Smiths Group was higher after saying that it will launch a $400m bond offering, saying that the funds will be used for general corporate funding purposes and to repay certain existing debt.

Supermarket group Tesco continued to fall, extending losses after its profits disappointed the markets on Wednesday. Shares are now down over 5% on the week. Both Seymour Pierce and Espirito Santo reduced their target  for the stock this morning.
FTSE 250: KCOM drops 6.6% after downbeat trading update
Broadband and communications provider KCOM has fallen following a downbeat trading statement prior to its interims. It announced that it is trading “in line with expectations”, but orders in its enterprise division have been below expectations.

Hunting was on the rise after Deutsche Bank initiated its coverage with a ‘buy’ rating, while Man Group was on the up following a ‘buy’ reiteration from Singer Capital Markets.

Utilities services provider Telecom Plus also gained after dangling the prospect of a sharply increased interim dividend in front of shareholders' eyes after a first-half surge in profits. With the group's business proving to be less seasonal these days the group is moving towards a more even split between its interim and final dividend payments each year.

FTSE 100 - Risers
Eurasian Natural Resources Corp. (ENRC) 333.30p +5.91%
Kazakhmys (KAZ) 738.00p +4.46%
Evraz (EVR) 254.10p +3.67%
Rexam (REX) 456.50p +3.63%
Vedanta Resources (VED) 1,101.00p +3.38%
CRH (CRH) 1,210.00p +2.98%
Weir Group (WEIR) 1,852.00p +2.89%
Burberry Group (BRBY) 1,028.00p +2.80%
Wood Group (John) (WG.) 833.50p +2.77%
Hargreaves Lansdown (HL.) 666.00p +2.54%

FTSE 100 - Fallers
Old Mutual (OML) 172.40p -2.65%
BAE Systems (BA.) 328.10p -1.59%
Johnson Matthey (JMAT) 2,339.00p -1.27%
BG Group (BG.) 1,300.50p -1.10%
United Utilities Group (UU.) 728.50p -1.02%
Tesco (TSCO) 315.35p -0.88%
Morrison (Wm) Supermarkets (MRW) 278.20p -0.78%
Next (NXT) 3,564.00p -0.78%
Wolseley (WOS) 2,702.00p -0.77%
Smith & Nephew (SN.) 680.00p -0.73%

FTSE 250 - Risers
Homeserve (HSV) 229.40p +6.45%
Bumi (BUMI) 170.80p +6.09%
Perform Group (PER) 428.60p +5.85%
IP Group (IPO) 124.80p +5.32%
Man Group (EMG) 90.00p +5.26%
Essar Energy (ESSR) 124.00p +5.08%
Ferrexpo (FXPO) 207.10p +4.54%
Ocado Group (OCDO) 68.70p +4.49%
JD Sports Fashion (JD.) 760.00p +4.32%
Talvivaara Mining Company (TALV) 160.80p +4.15%

FTSE 250 - Fallers
KCOM Group (KCOM) 78.75p -6.64%
Atkins (WS) (ATK) 695.00p -4.66%
FirstGroup (FGP) 196.10p -2.24%
Investec (INVP) 383.70p -1.31%
Rank Group (RNK) 149.50p -1.25%
New World Resources A Shares (NWR) 272.60p -1.23%
Pace (PIC) 169.70p -1.22%
Telecity Group (TCY) 939.00p -1.16%
Berendsen (BRSN) 571.00p -1.04%
BTG (BTG) 369.20p -0.99%

European broker round-up
To view the charts please add newsdesk@advfn.com to your contact list
FTSE 100EuronextDax perfCAC 40
Enable images to view FTSE 100 chart Enable images to view Euronext chart Enable images to view Dax perf chart Enable images to view CAC 40 chart
European Markets Finished Solidly Higher After U.S. Jobs Report

The European markets rallied higher on Friday, after a strong U.S. jobs report for September. The U.S. jobs data overshadowed investor concerns over the situation in Spain and in Greece. The Bank of Japan also abstained from announcing further stimulus Friday, just as the European Central Bank and Bank of England did on Thursday.

With employment in the U.S. rising for the twenty-fourth consecutive month in September, the Labor Department released a report on Friday showing that the unemployment rate for the month fell to its lowest level in well over three years.

The report showed that employment increased by 114,000 jobs in September following an upwardly revised increase of 142,000 jobs in August. Economists had expected employment to increase by 113,000 jobs compared to the addition of 96,000 jobs originally reported for the previous month.

The continued job growth pushed the unemployment rate down to 7.8 percent in September from 8.1 percent in August. The drop surprised economists, who had expected the unemployment rate to come in unchanged.

The French economy will stagnate in the second half of this year, extending the period of stagnation to five consecutive quarters, reports said citing the latest forecasts from statistical office Insee, published Thursday.

The statistical office also forecasts the Eurozone economy to have entered recession in the third quarter with the gross domestic product falling 0.2 percent quarter-on-quarter following a 0.2 percent contraction in the second quarter. Recession is expected to continue in the fourth quarter with GDP falling 0.1 percent.

Insee predicts the French economy to grow just 0.2 percent in 2012, below the government's forecast for a 0.3 percent expansion.

Spanish Economy Minister Luis de Guindos on Thursday insisted that his country does not need a bailout, despite rumors that the troubled euro member may request European aid as soon as this weekend.

The minister's remarks came a couple of days after Prime Minister Mariyano Rajoy denied reports that Spain is planning to seek a bailout at the upcoming meeting of Eurozone finance ministers on October 8.

Greece will run out of cash in November without the next tranche of bailout fund, Prime Minister Antonis Samaras said in an interview with German business daily Handelsblatt.

According to an interview published by the business daily on Friday, Samaras said the European Central Bank should consider accepting lower interest rates on Greek debt holdings or rolling over its debt holdings to give more time.

The International Monetary Fund has no fixed timeline for the troika report on Greece, IMF External Relations Department Director Gerry Rice said Thursday.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 1.78 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.94 percent.

The DAX of Germany rose by 1.27 percent and the CAC 40 of France advanced by 1.64 percent. The FTSE 100 of the U.K. climbed by 0.74 percent and the SMI of Switzerland gained 0.66 percent.

In Frankfurt, Air Berlin gained 0.58 percent. Germany's second-largest airline, reported a decline in passenger numbers and capacity for the month of September, following its earlier decision to reduce capacity and fleet with a view to bringing the company back to profitability.

Volkswagen climbed by 2.44 percent, BMW rose by 2.02 percent and Daimler gained 2.16 percent. Gerresheimer declined by 4.57 percent, after Cheuvreux reduced its rating on the stock.

In Paris, Sanofi rose by 1.87 percent. The company reported clinical trial results which showed that its diabetes drug, Lantus, is three times more likely to maintain targeted blood sugar levels than standard care.

Societe Generale finished higher by 3.73 percent. BNP Paribas increased by 3.54 percent and Credit Agricole added 1.85 percent.

Bouygues lost 1.41 percent, after a broker downgrade. UBS added Air Liquide to its 'Least Preferred List." The stock finished higher by 0.80 percent.

In London, mining stocks turned in a strong performance. Eurasian Natural Resources climbed by 5.91 percent and Kazakhmys gained 4.46 percent. Vedanta Resources rose by 3.47 percent and Rio Tinto added 2.19 percent.

Barclays increased by 2.38 percent, Royal Bank of Scotland added 1.42 percent and HSBC rose by 1.18 percent.

Burberry finished higher by 2.80 percent, after Morgan Stanley upgraded it to "Overweigh" from "Equal weight."Experian climbed by 1.52 percent, after Credit Suisse upgraded its rating on the stock to "Outperform" from "Neutral."

Energy services company John Wood Group said it continues to deliver good growth and is still confident of achieving full-year performance in line with expectations. The stock closed up by 2.77 percent.

Telecom Plus gained 2.29 percent. The company expects first-half pre-tax profits and earnings per share firmly ahead of last year.

KCOM Group sank by 6.64 percent, after warning of macro-economic uncertainty in the second half. Givaudan rose by 1.76 percent in Zurich. UBS added the stock to "Most Preferred List'' in European chemicals.

Germany's factory orders declined more than expected in August on weak domestic orders, suggesting that the economy gained only limited support from private consumption. Orders fell 1.3 percent from a month ago, when it rose 0.3 percent, the Federal Ministry of Economics and Technology reported Friday. Bookings were forecast to decline by 0.5 percent.

US Market Report
Stocks Give Back Ground But Remain Mostly Positive

Stocks remain mostly higher in mid-day trading on Friday, although buying interest has waned from earlier in the session. While a positive reaction to the monthly jobs report helped to drive stocks higher, lingering economic uncertainty has limited the upside for the markets.

After moving notably higher earlier in the session, the major averages have given back ground but remain in positive territory. The Dow is up 53.07 points or 0.4 percent at 13,628.43, the Nasdaq is up 2.72 points or 0.1 percent at 3,152.18 and the S&P 500 is up 4.41 points or 0.3 percent at 1,465.81.

The early strength on Wall Street came on the heels of the release of the Labor Department's monthly employment which, which showed 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."

Despite the strength in the broader markets, shares of Zynga (ZNGA) have come under pressure after the online video game company cut its full-year guidance. Zynga is currently posting an 18.4 percent loss.

Sector News

Housing stocks are turning in some of the market's best performances in mid-day trading, with the Philadelphia Housing Sector Index up by 1.7 percent. With the gain, the index is poised to end the session at its best closing level in almost five years.

Standard Pacific (SPF) and PulteGroup (PHM) are leading the housing sector, advancing by 3.3 percent and 2.3 percent, respectively.

Considerable strength has also emerged among trucking stocks, as reflected by the 1.6 percent gain being posted by the Dow Jones Trucking Index. The gain has lifted the index to its best intraday level in well over two months.

Defense, chemical, and railroad stocks are also posting notable gains on the day, while most of the other major sectors are showing more modest moves to the upside.

Broker tips
Tesco, IMI, WS Atkins
The strategic problems at Tesco are getting worse, according to Investec, which still recommends to sell shares in the supermarket giant.

Investec said that Tesco's strategy needs a "major overhaul". The broker has kept its 295p target on the shares, saying that the risk remains on the downside.

Jefferies has reiterated its 'hold' rating and 930p target for engineering group IMI, saying that while it is a good business, there's still work to be done to satisfy 'near-term concerns'.

The broker explained: "Management are targeting 75% of sales in their sweetspot (currently 55%) by 2017, and £20m of incremental year-on-year investment maybe required over that period.

"Whether or not the group will be spending £100m on this investment by 2017 clearly depends on the progress they are making with the top line. We believe they will have to manage this carefully in the near-term, especially given the possibility of markets remaining challenging in the near-term."

Shares in engineering and design consultancy WS Atkins were hit on Friday on concerns about the company's involvement in the high-profile West Coast franchising fiasco.

"Rail has accounted for c10% of group revenue and headcount in recent years. It has been involved in a number of high-profile schemes so we do not believe that this particular project will have a significant negative financial impact," Brown said.

"The bigger hit is likely to be on share price sentiment. This follows the uncertainty created by Peter Brown and the cautious Q1 update."

Money Show Traders Daily Alert -October 5, 2012-.: 4 Service Stocks Get Boost from Insiders

Traders Daily Alert


Tips for Traders

Options Idea

Charts in Play
A Beer Bull Market, Tom Aspray

Currency Corner

Trading Idea of the Day

Today's Featured Videos & Exclusive Interviews
Contrary Opinion in Currency Options, Lawrence McMillan
How To Trade QE 3, Andrei Knight

ADVFN Weekly For5ex Currency Review -October 5, 2012-.



ADVFN III Weekly FOREX Currency REVIEW 
Global Forex News from ADVFN

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
Date
Time (GMT)
Data release/event
Friday October 5th
12.30
US employment data
Monday October 8th

Eurogroup meetings
Tuesday October 9th
08.30
UK industrial production

Dollar:

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.
Euro
There will be further expectations that Spain will apply for a bailout package in an attempt to stabilise the economy. This should provide some degree of support for the Euro, but market anxiety will quickly increase if Spain continues to resist. There will also be major unease surrounding the growth outlook and prospects of growing political turmoil in peripheral economies if recession intensifies.  Greece remains in severe difficulties and there will be increased friction between core and peripheral economies.  In this context, there will be threat of renewed tensions within the Euro-zone and downward pressure on the Euro could intensify rapidly.

The Euro maintained a firm tone during the week and pushed to challenge resistance levels above 1.30 against the US currency with the currency gaining underlying support from an underlying reduction of short positions.

There were further expectations that Spain was close to requesting a bailout following media reports the previous day that only Germany was now resisting an early move. Prime Minister Rajoy did state that there was harmony between the central government and regions, but markets were broadly focussed on the bailout situation and Rajoy bluntly stated that a request was not imminent.

There was some increase in tensions surrounding the ECB bond-buying programme with increased speculation that it could be declared illegal and that there was the possibility of legal action by the Bundesbank as underlying stresses remained high.

There were mixed readings for the latest Euro-zone PMI data with the Italian services data figure for example stronger than expected, but the net tone was generally weak with particular concerns surrounding a sharp downturn in France and Spain. Markets have been extremely uneasy surrounding Spanish prospects for months and confidence in the French economy has also deteriorated amid fears that they could start showing the same vulnerability as peripheral economies.

Uncertainty surrounding Spain continued with the Madrid government concerned over the terms of any loan package and warning over the threat to Euro stability. There were further uncertainties surrounding Greece with Finance Ministry suggesting that there were still big differences between the government and troika over austerity measures. The troika also suggested that GDP could contract by a further 5% in 2013.

As expected the ECB left interest rates on hold at the latest council meeting with the benchmark rate at 0.75% and the deposit rate left at zero.  President Draghi’s news conference was relatively subdued. He continued to emphasize the need for conditionality in the bond-buying programme, although also insisted that conditions did not need to be punitive.

Draghi was generally downbeat over the economic outlook with the potential for growth and inflation forecasts to be lowered even with headline inflation set to remain above 2.0% through the remainder of this year.

Yen:

The Bank of Japan will remain under strong pressure to enact even more quantitative easing, especially with demands for the yen to be weakened and there is increased unease within the Finance Ministry with demands for the buying of overseas bonds.  Markets remain very uneasy over the US and Euro-zone fundamentals which will still provide some degree of yen protection, especially if global growth concerns intensify. 

The dollar pushed to highs near 78.70 against the yen during Thursday, supported by a general improvement in risk appetite, but was unable to sustain the gains and weakened back to the 78.30 area.

New Finance Minister Jojima stated that the Finance Ministry and Bank of Japan would work together to beat deflation which had some negative yen impact, especially as it reinforced speculation that the Bank of Japan could embark on fresh monetary easing at this week’s policy meeting.

There was uncertainty surrounding the monetary policy decision, especially with underlying pressure for government action.  The pressure on the bank and unease over the deflation threat was illustrated by attendance at the meeting by the Economy Minister for the first time in nine years. In the event, the Bank of Japan announced no further policy moves with quantitative easing held steady. The yen strengthened to highs in the 78.30 area against the dollar following the decision. 

Sterling
Although there will be expectations of an improved third-quarter economic performance, there will also be unease that the economy will falter again during the fourth quarter. There will be speculation that the Bank of England will sanction further quantitative easing in November. For now, in relative terms, Sterling should be able to gain some protection from the aggressive monetary action elsewhere, especially if there is any sign of improved UK growth. It will still be difficult for the UK currency to gain strong support.

Sterling found support below 1.61 against the dollar and rallied back to the 1.62 area despite net losses against the Euro as it dipped to two-week lows near 0.8050.

The latest manufacturing PMI data was weaker than expected with a retreat to 48.4 for September from a revised 49.6 the previous month and  this was the fifth successive reading below the 50 benchmark. The latest consumer lending data was also weaker than expected with a net decline as consumer credit contracted for the second successive month. The services-sector data recorded a decline to 52.2 for September from 53.7 the previous month. There was some disappointment surrounding the release, although there will be some relief that the data held above the 50 level and also out-performed the Euro-zone area.

The latest housing equity withdrawal data recorded a net repayment of housing debt for the 17th successive quarter and at the highest rate since the second quarter of 2011 which will continue to be a drag on the consumer spending outlook.

As expected, the Bank of England held interest rates at 0.50% at the latest policy meeting and the amount of quantitative easing was held steady at £375bn. There were widespread expectations that the MPC could consider further action at the November policy meeting which had some impact in curbing Sterling demand.

The latest housing data was weaker than expected with the Halifax Bank reporting a second successive monthly decline in house prices with a 0.4% for September from a revised 0.5% dip the previous month.

Swiss franc:

Medium-term fears over the impact of quantitative easing will maintain the potential for defensive capital inflows into the Swiss franc. This will be particularly important if there is any increase in stresses between the core and peripheral economies which will maintain fears over a potential break-up within the Euro-zone.

The dollar was unable to hold above the 0.94 level against the franc during the week and retreated to lows near 0.9300 as the Euro found support in the 1.2085 region on the cross and moved back above the 1.21 level
There was a weaker than expected PMI release of 43.6 for September from 46.7 previously which increased doubts surrounding the economic outlook and offset the impact of a stronger than expected retail sales release.
 
The Swissmem industry group warned that it would be catastrophic for the economy if the Euro minimum level was abandoned. The latest reserves data recorded an increase of close to CHF9bn which suggested that pressure on the Euro had eased, but was still an important market factor.

Australian dollar
The Australian dollar remained under pressure during the first half of the week and dipped to re-test early September lows below the 1.02 level.

The Reserve Bank of Australian cut interest rates by 0.25% to 3.25% which had a negative impact on the currency. The data release were also generally negative with a weaker than expected reading for retail sales and a sharply wider than expected trade deficit as commodity exports came under pressure.

The currency gained some degree of relief from a generally weaker US currency and an improvement in risk appetite as central banks maintained an aggressive liquidity stance with some expectations of further reserve diversification into the Australian currency.

Continuing vulnerability in the Chinese and global economy is likely to keep the Australian dollar generally on the defensive, especially given domestic vulnerability.

Canadian dollar:

The Canadian dollar drifted slightly weaker during the week as a whole, but the currency did find support on retreats towards the 0.99 level and moved back to the 0.98 level

Oil prices recovered after a sharp decline which provided relief for the currency and there was reduced underlying demand for the US currency. There were no major Canadian economic releases during the week.

Net monetary policy trends should be supportive, but it will still be difficult for the Canadian dollar to make significant gains given persistent global growth doubts.

Indian rupee:

The rupee was able to maintain a firm tone during the week and pushed to highs beyond 51.50 against the US currency, the strongest level since mid April.

The government announced plans to allow increased foreign investment into the financial sector which had an important positive impact for the currency. There were further inflows into equities, supported by investment expectations and a general improvement in risk conditions.

Dollar vulnerability and improved risk appetite will continue to offer near-term rupee support, but the currency is liable to be close to a near-term peak.
Hong Kong dollar
The Hong Kong dollar drifted generally weaker and dipped to lows in the 7.7570 area before reversing course and strengthening to beyond 7.7550.

The currency gained support from a wider improvement in risk conditions and there was important underlying support from the improvement in global risk appetite.

The Hong Kong dollar will continue to gain near-term support from the very loose US monetary policy with medium-term speculation surrounding the peg liable to increase.

Chinese yuan:

The Chinese markets were closed for the one-week national holiday.

ADVFN III World Daily Markets Bulletin -October 5, 2012-.


ADVFN III World Daily Markets Bulletin
Daily world financial news

Friday, 05 October 2012

US Market
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.

Canadian Market
To view the charts please add newsdesk@advfn.com to your contact list
CADUSDOilGoldAllbanc
Enable images to view CADUSD chart Enable images to view Oil chart Enable images to view Gold chart Enable images to view Allbanc chart
Please click on the images to view our interactive charts
TSX Edges Up At Open Friday

Toronto stocks edged up at open Friday amid marginal buying across a variety of sectors, with the S&P/TSX Composite Index adding 3.43 points or 0.03 percent to 12,451.11.

Among base-metals stocks, Teck Resources rose close to 3 percent and First Quantum Minerals gained close to 1 percent.

In the oil patch, Niko Resources was up over 2 percent, while Enbridge Inc. was adding close to 1 percent.

Meanwhile gold stocks were trading lower, with Allied Nevada Gold, Alamos Gold Inc. Detour Gold and Eldorado Gold losing around 1 percent each.

Global bio-pharmaceutical company AEterna Zentaris Inc. dived nearly 8 percent.

During New York morning trading on Friday, the Canadian dollar traded sharply higher against major opponents following the release of country's unemployment rate data for the month of September and the building permits data for August.

According to a report released by the Statistics Canada, the economy created 52,000 jobs in September mainly in full-time work. However, the unemployment rate rose 0.1 percentage points to 7.4 percent as more people participated in the labor market.

Separately, the agency said municipalities issued building permits worth $7.3 billion in August, a 7.9 percent increase, following a 2.8 percent decline in July.

From the U.S., the Labor Department said that employment increased by 114,000 jobs in September following an upwardly revised increase of 142,000 jobs in August. Economists had expected employment to increase by 113,000 jobs compared to the addition of 96,000 jobs originally reported for the previous month.

The continued job growth pushed the unemployment rate down to 7.8 percent in September from 8.1 percent in August. The drop surprised economists, who had expected the unemployment rate to come in unchanged.

At present, the loonie is trading at a fresh multi-month high of 0.9996 against the Australian dollar, new multi-week highs of 0.9737 against the US dollar and 80.97 versus the yen, compared to yesterday's close of 1.0044, 0.9805 and 80.08, respectively.

Against the euro, the Canadian currency also advanced in today's morning session and hit a 3-day high of 1.2689 by about 8:55 am ET from recent low of 1.2770.
European Market
To view the charts please add newsdesk@advfn.com to your contact list
FTSE 100EuronextDax perfCAC 40
Enable images to view FTSE 100 chart Enable images to view Euronext chart Enable images to view Dax perf chart Enable images to view CAC 40 chart
Please click on the images to view our interactive charts
European Markets Firmly In The Green Ahead Of U.S. Jobs Data

The European markets are firmly in the green on Friday, ahead of the key monthly jobs data from the U.S. Labor Department, after Spain said it does not require a bailout now. The Asian markets closed higher, even as the central bank in Japan refrained from announcing additional stimulus measures, and the U.S. futures indicate a firm start.

Economists expect an increase of about 113,000 U.S. jobs in September following the addition of 96,000 jobs in August. Despite continued job growth, the unemployment rate is expected to come in unchanged at 8.1 percent.

The French economy will stagnate in the second half of this year, extending the period of stagnation into five quarters, reports said citing the latest forecasts from statistical office Insee. The statistical office also forecasts the Eurozone economy to have entered recession in the third quarter. Recession is expected to continue in the fourth quarter.

The Bank of Japan abstained from announcing more stimulus on Friday after lifting its asset purchase by 10 trillion yen last month despite mounting political pressure and further weakening of economic activity.

The policy board led by Governor Masaaki Shirakawa, retained the benchmark overnight uncollateralized call rate at 0-0.1 percent. The board also decided to maintain the size of the asset purchase and credit facility at 55 trillion yen and 25 trillion yen, respectively.

The Euro Stoxx 50 index of eurozone bluechip stocks is adding 1.01 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.67 percent.

The German DAX is adding 0.75 percent and the French CAC 40 is gaining 0.97 percent. The UK's FTSE 100 is advancing 0.44 percent and Switzerland's SMI is rising 0.39 percent.

In Frankfurt, Volkswagen, BMW and Daimler are gaining between 1.9 percent and 1.3 percent. Commerzbank and Deutsche Bank are moderately up.

Air Berlin, Germany's second-largest airline, reported a decline in passenger numbers and capacity for the month of September, following its earlier decision to reduce capacity and fleet with a view to bringing the company back to profitability. The stock is gaining 1.2 percent.

Lanxess is declining 1.5 percent. K+S, Allianz, EON and RWE are losing moderately. Munich Re is down 0.2 percent. Nomura cut the stock to "Reduce" from "Buy." Gerresheimer is declining 1.9 percent. Cheuvreux reduced its rating on the stock.

In Paris, Vallourec is gaining 2.8 percent and Technip is rising 2.7 percent. BNP Paribas and Societe Generale are adding 2.4 percent. Credit Agricole is advancing 1.6 percent.

Bouygues is falling 0.7 percent after a broker downgrade. UBS added Air Liquide to 'Least Preferred List." The stock is up 0.3 percent.

In London, Eurasian Natural Resources is climbing 5.4 percent. Kazakhmys and Vedanta are gaining around 4.2 percent each. Rio Tinto is climbing 2.6 percent. Rexam and John Wood Group are gaining 2.5 percent each.

Energy services company John Wood Group said it continues to deliver good growth and is still confident of achieving full-year performance in line with expectations. The stock is up 2.2 percent.

Telecom Plus is rising 2.4 percent. The firm expects first-half pre-tax profits and earnings per share firmly ahead of last year.

Burberry is up 1.3 percent, reportedly on a positive broker recommendation. Tesco is declining 2.7 percent and Next is down 1.2 percent. Old Mutual is falling 1.9 percent.

KCOM Group is declining around 8 percent after warning of macro-economic uncertainty in the second half. Givaudan is climbing 2.2 percent in Zurich. UBS added the stock to "Most Preferred List'' in European chemicals.

Asia Market
Asian Stocks Rise Before US Jobs Data

Asian stocks rose broadly on Friday, with commodity-related stocks pacing the gainers, after a report showed the number of Americans filing new claims for unemployment benefits rose less than expected last week and the European Central Bank reiterated its commitment to buy bonds of troubled euro zone countries. Despite some disappointment over the outcome of a Bank of Japan policy meeting, the underlying sentiment remained fairly positive ahead of a key U.S. jobs report due later in the day.

Japanese shares posted modest gains after the Bank of Japan kept monetary policy unchanged, but cut its assessment of the economy, citing weakening exports and production. The Nikkei average rose 0.4 percent, while the broader Topix index edged up 0.2 percent. Heavyweight Fast Retailing rose 1.8 percent, electronics component maker TDK advanced 1.9 percent, shipping line Mitsui OSK Lines gained 2.6 percent on rising freight rates and Shionogi & Co. rallied 3.4 percent on a brokerage upgrade.

Technology shares such as Kyocera and Tokyo Electron rose about 2 percent each, while automakers like Honda Motor, Nissan Motor and Toyota Motor fell between half a percent and 1.6 percent. Shares of semiconductor-related Sumco Corp. jumped 5.9 percent on expectations of a recovery in earnings after South Korean consumer electronics manufacturer Samsung estimated record profits in the three months to September.

Hong Kong's Hang Seng index rose half a percent, with mainland automakers leading the gainers after Germany's BMW said that its sales in China surged by 55 percent from a year earlier to around 27,000 units in September. The Chinese market was shut for the Golden Week holidays running from September 30 to October 7.

Australian shares hit a fresh 14-month high in afternoon deals following strong leads from Wall Street overnight. With mining and banking stocks pacing the gains, both the benchmark S&P/ASX 200 and the broader All Ordinaries index ended the session up about 0.9 percent each.

BHP Billiton added a percent amid reports it was one among those in talks with Petrobras to purchase a stake in the Brazilian energy giant's Gulf of Mexico oilfields. Fortescue Metals Group jumped 4.6 percent after board member Ken Ambrecht announced his retirement. Rival Rio Tinto rallied 1.8 percent.

Financial stocks also gained ground, with ANZ, Commonwealth and NAB up about half a percent each, while Westpac added 1.2 percent. Commonwealth said today that its board approved various amendments to the rules of the Dividend Reinvestment Plan in an attempt to align the underlying rules with current best market practice, provide additional flexibility and update terminology.

Shares of Bank of Queensland plunged 5.2 percent after the lender indicated it is heading for a full-year loss. Retailers ended mostly higher, with Woolworths up 1.3 percent after the Australian Competition and Consumer Commission announced it would oppose the retailer's move to acquire hardware stores in Victoria. BlueScope Steel soared 4.4 percent after automakers responded to a proposal levying a tariff on imported steel.

South Korea's Kospi average posted a modest 0.1 percent gain, with uncertainty over a bailout for struggling Spain limiting further upside. Heavyweight Samsung Electronics rose 1.7 percent early in the session before paring gains to end up about 0.2 percent after the tech conglomerate said that it expects third quarter operating profit of 8.10 trillion won, powered by strong sales of its Galaxy smartphones. Shares of LG Display slumped 4.5 percent on a brokerage downgrade.

New Zealand shares rose, mirroring gains in regional stocks. The benchmark NZX-50 gained 0.6 percent, with Michael Hill International pacing the gainers with a 9 percent rally after the jeweler lifted its first-quarter revenue by 14 percent, boosted by improved trading in North American and Australian markets. Gold miner OceanaGold climbed 3.6 percent to hit a 22-month high after the company provided an update on its Didipio project.

Fletcher Building, the nation's largest construction company, and industrial rubber products supplier Skellerup Holdings jumped 3-4 percent, while retailers Pumpkin Patch and Kathmandu Holdings rose 1-2 percent.

Elsewhere, India's benchmark Sensex was moving down 0.7 percent, weighed down by profit taking in banking, technology and oil/gas stocks following recent sharp gains. Malaysia's KLSE Composite was down marginally, while Indonesia's Jakarta Composite index rose 0.7 percent, Singapore's Straits Times index gained 0.6 percent and the Taiwan Weighted average edged up 0.1 percent.

Commodities
To view the charts please add newsdesk@advfn.com to your contact list
USDCADUSDEURUSDGBPUSDJPY
Enable images to view USDCAD chart Enable images to view USDEUR chart Enable images to view USDGBP chart Enable images to view USDJPY chart
Please click on the images to view our interactive charts
Crude Holds Above $90

The price of crude oil was moving lower Friday morning as traders await cues from the non-farm payroll report from the U.S. Labor Department, due out later today.

Light Sweet Crude Oil (WTI) futures for November delivery, shed $0.90 to $90.81 a barrel. Yesterday, oil rebounded from its 2-month low to settle higher on supply concerns from the Middle East after tensions between Turkey and Syria escalated. Oil prices held on to the gains after minutes of the Federal Reserve's policy meet showed members agreed to a third round of quantitative easing last month, due to the uncertainty prevailing in the economy.

This morning, the U.S. dollar was recovering from a two-week low versus the euro and the Swiss franc, while ticking higher against sterling. The buck was paring recent gains versus the yen.

In economic news, Germany's factory orders declined more than expected in August, the Federal Ministry of Economics and Technology reported. Orders fell 1.3 percent from a month ago, when it rose 0.3 percent. Orders were forecast to decline by 0.5 percent. Domestic orders slipped 3 percent on a monthly basis, while foreign orders remained flat in August.

Traders will look to the non-farm payroll report from the U.S. Labor Department due out at 8.30 a.m ET. Economists expect non-farm payrolls for September to increase by 113,000, while the unemployment rate is expected to remain unchanged at 8.1 percent. The private sector is expected to have added 130,000 jobs. In August, the economy added 96,000 jobs, while the jobless rate dipped to 81. percent.