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Jun 17, 2013

MarketWatch I Asian Markets Latest News At The Time; June 17, 2013.

Asia
Hong Kong stocks off as China banks, property down HONG KONG (MarketWatch) -- Hong Kong stocks on Tuesday pulled back after a two-day rally amid uncertainty over the pace of the U.S. Federal Reserve's bond purchases, with Chinese property developers dropping after another strong monthly increase in home prices on the mainland. The Hang Seng Index dropped 0.8% to 21,039.02 and the Hang Seng China Enterprises Index gave up 1% to 9,645.56. Shares of each of the four largest Chinese banks dropped despite news that state-owned investment agency Central Huijin Investment Co. has increased stakes in them, with China Construction Bank Corp. losing 1.4% and Bank of China Ltd. shedding 1.5%. Among developers, China Overseas Land & Investment Ltd. fell 2.1% and China Resources Land Ltd. dropped 2.3%. The decline came on the heels of official data showing that home prices rose in 69 of 70 cities in May from the same month a year ago. China's Shanghai Composite was flat in choppy trade, after dropping in nine of the last 10 trading days.



Australia sees scope for more rate cuts: minutes LOS ANGELES (MarketWatch) -- The Reserve Bank of Australia is ready to cut interest rates further if need be, according to the minutes from its June 4 meeting, released Tuesday. The RBA's policy board "judged that the inflation outlook as currently assessed might provide some scope for further easing, should that be required to support demand," the minutes said. The RBA left rates unchanged at the June meeting. The Australia's dollar slipped following the minutes' release, buying 95.26 U.S. cents, down from 95.40 cents just prior to the release.



Japan, Korea stocks choppy as investors eye Fed Japanese and South Korean stocks rise after wavering between gains and losses, as investors ponder whether the U.S. Federal Reserve will maintain its monthly bond purchases. 9:28 p.m. Today

Jeff Nielson: Gold-bashing mythology hits new crescendo: GATA I THE GATA DISPATCH; June 17, 2013.

Jeff Nielson: Gold-bashing mythology hits new crescendo

2p ET Monday, June 17, 2013

The mainstream financial news media's propaganda campaign against gold has gotten more intense than ever even as evidence abounds that gold -- the metal, not the paper labeled "gold" -- is in greater demand than ever. That's what Jeff Nielson of Bullion Bulls Canada writes in his commentary today, "Gold-Bashing Mythology Hits New Crescendo":

http://www.bullionbullscanada.com/gold-commentary/26267-gold-bashing-myt...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

CNBC Top News and Analysis; June 17, 2013.




CNBC Top News and Analysis

Stock rise; Fed feeds Dow’s triple-digit moves: Wall Street at Close Report by MarketWatch; June 17, 2013.

By Kate Gibson, MarketWatch 
 
NEW YORK (MarketWatch)U.S. stocks surged Monday, with the Dow industrials extending their triple-digit moves into a fifth session, as investors latched onto any clues ahead of Wednesday’s monetary-policy decision by the Federal Open Market Committee. 

“I’m a little surprised investors are willing to get this much in front of the FOMC meeting, just on the off chance the Fed says something meaningful,” Mark Luschini, chief investment strategist at Janney Montgomery Scott. 

The Dow average made its fifth straight triple-digit move Monday.
Volatility returned to the stock market more than a month ago, when Wall Street interpreted testimony by Federal Reserve Chairman Ben Bernanke as a mixed message on the timing and pace of eventual Fed tapering. 

The Dow Jones Industrial Average DJIA +0.73% has made a triple-digit move in 11 of the 16 sessions that followed Bernanke’s May 22 briefing to Congress.
After rallying as much as 191 points, the Dow finished up 109.67 points, or 0.7%, at 15,179.85, with 25 of its 30 components advancing, including Boeing Co. BA +1.18% , which said General Electric Co.’s GE +1.06%  aircraft-leasing arm had pledged to buy 10 of its 787 jets. 

The S&P 500 SPX +0.76%  added 12.31 points, or 0.8%, to 1,639.04, with energy and technology pacing sector gains that included all but one of its 10 industry groups.


Why AMD is rallying
Three stocks climbing sharply after a mention in Barron's: AMD, Amgen, and Big Lots. 


Netflix Inc. NFLX +7.12%  surged 7.1% after the video-streaming service inked a multi-year accord with DreamWorks Animation SKG Inc. for original programming. Micron Technology Inc. MU +3.76%   jumped 3.8% after Citigroup raised its price target for the memory-chip manufacturer.
The Nasdaq Composite COMP +0.84%  rose 28.58 points, or 0.8%, to 3,452.13. 

For every stock falling, two gained on the New York Stock Exchange, where 677 million shares traded. Composite volume neared 3.1 billion. 

Investors had dramatically curbed their enthusiasm for equities after the Financial Times on Monday afternoon published an article saying Bernanke would likely signal the central bank is close to cutting back on its $85 billion in monthly bond buys, while also reiterating any such move is dependant on the economy. 

But the FT writer behind the piece, U.S. economics editor Robin Harding, then tweeted that he was only offering his view point, and had not insider knowledge of what the Fed would do. 

“Most observers expect Bernanke to clear things up for them on Wednesday with respect to the tapering question. What if it is the same old line, ‘it’s data dependent?’ I’d prefer to take some profits and hedge going into the Wednesday press conference,” said Elliot Spar, market strategist at Stifel, Nicolaus & Co. 

“We don’t expect to see any change in policy, either in bond buying or interest rates,” Luschini added of expectations the central bank would hold its federal-funds-target rate near zero and maintain its asset purchases. 

The Fed Tuesday begins a two-day meeting, with Bernanke slated to speak at a press conference after the Wednesday decision. Stocks declined last week as investors considered whether Bernanke would communicate that reduced central-bank stimulus lies ahead. 

Gold prices fell and oil futures also slid; the dollar advanced against other currencies and Treasury prices were mixed, with the yield on the 10-year note 10_YEAR +2.39%  used in determining mortgage rates and other consumer loans at 2.177%. 

“The bond market is really unchanged at this juncture, perhaps anticipating the FOMC meeting for any kind of guidance,” said Luschini. 

Economic data on Monday had a gauge of factory activity in the New York region and a separate index of home-builder sentiment rising in June. 

The manufacturing report was “clearly positive and a welcome turnabout from the previous reading,” while the builder results reinforce “what has been a good news story in the housing market,” said Luschini. 

Kate Gibson is a reporter for MarketWatch, based in New York. Follow her on Twitter @MWKateGibson.

Stocks End Higher, but Fed Taper Talk Weighs; Dow Rallies 100: Wall street at Close Report by CNBC; June 17, 2013.


Stocks recovered from their lows to end higher across the board in another choppy session Monday, but investors continued to question when the Fed could begin to wind down its asset-purchase program.

(Read More: Here's Bernanke: Time for the Fed to Be Specific)

Stocks briefly took a leg lower as investors reacted a Financial Times article, released around 2pm ET, which stated that Fed Chairman Ben Bernanke is likely to signal that the central bank is "close to tapering down" its $85 billion-a-month in asset purchases during the highly-anticipated press conference on Wednesday. Major averages had been up more than 1 percent for most of the day, boosted by a global rally and amid optimism that Bernanke would provide more clarity on the central bank's easy money policy during the press conference.

Stocks eventually recovered from their lows as traders noted that the article did not contain much new information.
Name Price Change %Change
DJIA Dow Jones Industrial Average 15179.85
109.67 0.73%
S&P 500 S&P 500 Index 1639.04
12.31 0.76%
NASDAQ Nasdaq Composite Index 3452.13
28.58 0.83%

The Dow Jones Industrial Average finished up more than 100 points, logging its fifth-consecutive triple-digit move.

The S&P 500 and the Nasdaq also closed higher. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 17.

With the session's gains, the Dow and S&P 500 poked back into positive territory for the month.
Cyclical sectors including techs, energy and financials led the S&P 500 sector leaders, while telecoms ended in the red.

Who Cares About the Fed?
Dissecting today's market action, and whether the economy is strong enough to not care about the Fed, with the "Street Signs" panel.
"Today's driver seat continues to be speculation about what Bernanke will do, but should the yen begin to spike again, they will resume taking the wheel immediately," said Art Cashin, director of floor operations at UBS Financial Services. On the economic front, the New York Fed's "Empire State" manufacturing index gained to 7.84 in June from minus 1.43 in May, exceeding estimates for zero. A reading above zero indicates expansion. However, the forward-looking new orders index and employment reading weakened. Meanwhile, homebuilder sentiment jumped, with the NAHB/Wells Fargo Housing index soaring to 52 in June from 44 in May. It was the first time the index rose above 50 for the first time since April 2006. Reading above 50 signal that more builders view market conditions a favorable than poor. All major homebuilders including Toll Brothers and KB Home added to gains following the report. The two-day Fed meeting, ending on Wednesday with a press briefing and economic forecast from Chairman Ben Bernanke, will be the main focus for global markets this week. Investors will be listening for details on when the Fed may start scaling back its $85 billion monthly bond purchases. "There's been a tug-of-war in the market [in the last few sessions], but investors are anticipating some more clarity coming from the FOMC meeting on Wednesday," said Matt Kaufler, portfolio manager of the Federated Clover Fund. "My personal view is that the dips should be bought…as there's still room in the market left to the upside."
The Fed is also expected to provide an update on its economic projections for 2013-2015. The Fed's latest projections, made in March this year, saw real GDP growth at around 2.6 percent in 2013 and 3.2 percent in 2014. In terms of unemployment, the Fed projected a rate of around 7.4 percent in 2013, improving to around 6.9 percent in 2014. "If, and how, these forecasts change could send an important signal about the Fed's near term intentions," said Scicluna. In company news, Smithfield Foods advanced after shareholder Starboard Value said the pork processor should be broken up rather than be sold to Chinese meat company Shuanghui International. The activist shareholder, which disclosed a 5.7 percent stake in the company, said Smithfield might be worth "well in excess" of the $34 per share offered by Shuanghui if it split into hog production, pork and international units and shopped the businesses separately. Netflix soared to lead the S&P 500 gainers after the online move-streaming company struck its largest-ever original content deal with DreamWorks Animation. Facebook edged higher after the social-networking giant sent out invitations to members of the press for a "new product" event this Thursday. Investors will also be focused on Apple stock, after the tech giant closed below its 50-day moving average of $434.76 last Friday, after trading on either side of the level all week. (Read More: Apple Received up to 5,000 US Data Requests in 6 Months) In other news, U.S. crude oil prices may return to $100 per barrel this week, according to a CNBC sentiment survey, after prices rebounded to a nine-month high on Friday. JPMorgan strategists said in a note that investors are ignoring the possibility of a price shock due to Mideast tensions that could sent brent crude prices to $115 a barrel this year. (Read More: $100 a Barrel Looms for US Crude This Week) President Barack Obama will meet with leaders of the world's richest countries in Northern Ireland on Monday, for the annual meeting of the Group of 8 (G8). (Read More: Obama Faces Tough Sell on Europe Austerity at G8)
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: )

Can the Fed Soothe Markets? Jim Jubak: MoneyShow Daily Investors Alert; June 13, 2013.


INVESTORS DAILY ALERT
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BIV Today's Business News; June 17, 2013: Northern Gateway final panel hearings begin; Rogers plans West Van cell towers; Fresh start for Burns Lake workers




Mining and Energy

Northern Gateway panel final arguments begin today

Final arguments for Enbridge's Northern Gateway pipeline start today in Terrace ... READ MORE

Technology

 

Rogers plans three architect-designed telecoms towers in
West Vancouver

Rogers Communications hopes to solve poor wireless service in West Vancouver by installing three 36-metre towers along ... READ MORE

Human Resources

 

Former Burns Lake mill workers graduate skills training program

The Industry Training Authority (ITA) announced Friday that 17 former sawmill employees from Burns Lake ... READ MORE

Agriculture

 

Ottawa inks cherry export deal with China

On a trade mission in China last week, federal agriculture minister Gerry Ritz announced Canada had signed a preliminary agreement that ... READ MORE

More News...

   

Kevin Falcon joins board of directors West Kirkland Mining

Non-profit biotech groups launch talent-finding initiative

This Week's Issue

 

Lumber prices drop, but forestry still a strong bet: analysts

A rusty supply chain will contribute to uneven growth and continuing volatility in the sector, but industry watchers are confident that prices ... READ MORE

CMI Spot Prices as of Close of Trading in New York on June17, 2013.


Spot Prices as of close of trading in New York

Updated 6/17/2013 Today Change Week Ago Month Ago Year Ago
GOLD $1,384.10 -$4.85 $1,387.25 $1,367.30 $1,627.70
SILVER $21.86 -$0.20 $22.00 $22.45 $28.76
PLATINUM $1,437.90 -$13.10 $1,509.50 $1,471.60 $1,491.40
PALLADIUM $732.60 +$0.00 $758.90 $743.60 $632.50
GOLD/SILVER RATIO 63.31

Victory for the Islamic Republic: The Economist I New Selected Articles - June 16, 2013.


 
Monday, June 17th 2013
Editor's picks



Pomegranate:
Victory for the Islamic Republic
The triumph of a relative moderate could be a blessing for both Iran's reformists and its conservative establishment
READ MORE »
Democracy in America:
Whistleblowers and the economy of esteem
The debate over Edward Snowden's honour affects the supply of future leaks, and the legitimacy of American government
READ MORE »
Graphic detail:
High spirits
Who drinks most vodka, gin, whisky and rum?
READ MORE »
Free exchange:
Under trial
ECB president Mario Draghi It would be surprising if bond markets do not at some stage re-evaluate just how powerful a deterrent OMT really is
READ MORE »
Game theory:
Golf, fatherhood and Justin Rose
Modern dads don't have time for golf
READ MORE »

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Seasonal Spreads: A Great Way to Trade, Markus Heitkoetter: MoneyShow Traders Daily Alert; June 17, 2013.






Traders Daily Alert


Tips for Traders

Options Idea

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Currency Corner
The Forex Trading Week Ahead, Kathleen Brooks

Trading Idea of the Day

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ADVFN III Evening Euro Markets Bulletin; June 17, 2013.


ADVFN III Evening Euro Markets Bulletin
Daily world financial news Monday, 17 June 2013

London Market Report
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London close: Gains trimmed as nerves set in ahead of Fed decision
Markets started the new week on a positive note, though gains were trimmed by the close on Monday as traders refrained from taking too much risk ahead of the all-important policy decision from the Federal Reserve later this week.

Global markets have been extremely choppy over the last month since Fed Chairman Ben Bernanke suggested that the bank could begin 'taper' its quantitative easing (QE) programme if the economic recovery picks up.

Though economic data has steadily improved over recent weeks, the majority of market participants don't expect the Fed to pull the plug on stimulus just yet. "Traders feel that the US economic recovery is still very much a work in progress and are hoping the Fed sticks to its pledge to not unwind prematurely," said Market Strategist Ishaq Siddiqi from ETX Capital.

After hitting a high of 6,371 on Monday afternoon, the FTSE 100 finished at 6,330, a rise of just 22 points on the day, with investors nervously awaiting the Federal Open Market Committee (FOMC) meeting which concludes on Wednesday.

Senior Market Analyst Michael Hewson from CMC Markets said: "This easing of tension surrounding the taper has manifested itself in a slightly weaker US dollar, which appears to suggest that markets are coming around to the possibility that in the face of potentially weaker growth expectations, any tapering expectations are likely to be pushed out into 2014, making the imminent paring back of stimulus measures much less likely." FTSE 100: Aggreko gains ahead of Q2 update
Temporary power and temperature control supplier Aggreko was making strong gains ahead of its second-quarter trading update tomorrow morning. While JPMorgan Cazenove kept its 'neutral' rating on the stock on Friday, analysts said that given the stock has underperformed so far this year and trades towards the bottom-end of the recent range, "a positive statement would be met with strength".

Financial services giant Resolution was in demand after JP Morgan increased its target from 273p to 302p as part of its review of the UK life insurance sector. While the broker said it prefers others in the sector – including Standard Life and Aviva - it said that Resolution's cost savings amid improving market conditions should underpin its strong dividend yield of 7.6% against the sector at 4.0%.

Vodafone, which is currently mulling a bid for German cable group Kabel Deutschland, was also being lifted higher by M&A activity in the wider telecom sector after it was rumoured that AT&T is looking to buy Spanish giant Telefonica.

Consumer products giant Reckitt Benckiser was a high riser after Citigroup reiterated its 'buy' rating for the stock, saying that the shares are cheap given that its pharmaceuticals division is "undervalued by the market".

In contrast, ARM Holdings retreated as Numis analysts downgraded the microprocessor developer to 'reduce' from 'hold'. Similarly, Associated British Foods slumped after Nomura cut the food ingredients and retail group from 'neutral' to 'reduce', saying that the stock is too expensive now that the profit boom for Sugar and Primark over the past two years is no longer supported.

Randgold Resources was a heavy faller today as gold prices declined. According to analysts at Societe Generale, continued large-scale gold ETF selling this year and the next will exceed higher demand for jewellery, bars and coins. As such, the broker revised lower its year-end gold-price target to just $1,200 an ounce, compared with current prices around $1,380.
FTSE 250: Int'l Personal Finance jumps after upbeat broker comment
Eastern Europe-focused home-credit business International Personal Finance was the best performing stock on the FTSE 250 on Monday after analysts at Renaissance Capital named it as their top pick in the financial sector in that region. "We like the resilience of the business model, while we love its earnings growth (+20% earnings per share compound annual growth rate 2012-2015E) in a region offering little," the Russian broker said.

Chip designer Imagination Technologies was trading lower ahead of its full-year results on Wednesday. The company underwhelmed the market today with the announcement of a licence agreement with tech group Cavium to provide its latest 'Release 5 MIPS architecture'.


Europe Market Report
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European Markets Firmly In Positive Territory
The European are firmly in the green on Monday, as investors remain hopeful ahead of the two-day policy meeting of the Federal Reserve. Fed Chief Ben Bernanke is expected to address some investor concerns after the meeting.
Germany's economic activity will pick up strongly in the second quarter, the Bundesbank said in its monthly report. But the bank forecast the momentum to slowdown in summer.
Employment in the German manufacturing sector increased modestly in April, preliminary data released by the Federal Statistical Office showed.
Meanwhile, Eurozone's trade in goods with the rest of the world resulted in a surplus in April, which was lower than a month earlier, data from Eurostat revealed.
The Systemic Risk Survey conducted by Bank of England showed that the risk of another financial crisis over the coming three years fell to the lowest since survey began in 2008. The perceived probabilities of a "high-impact event" over both the short - term fell to 8 percent and to 24 percent between one and three years ahead.
Asking price for a property in the UK rose to a fresh record high in June, lifted by a jump in prices in the South East and London, the latest survey by Rightmove revealed.
Group of Eight leaders are holding their two-day summit in Northern Ireland with trade being in focus.
The euro Stoxx 50 index of eurozone bluechip stocks is adding 1.70 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 1.39 percent.
The German DAX is gaining 1.5 percent, the French CAC 40 is rising 1.8 percent and Switzerland's SMI is adding 1.5 percent. The UK's FTSE 100 is rising 0.9 percent.
In Frankfurt, Bayer is gaining 3.2 percent. Insurer MunichRe is adding 2.5 percent.
Carmakers Volkswagen and Daimler are notably higher while BMW is up 0.6 percent.
Gagfah is climbing 3.6 percent after Kepler Cheuvreux raised the real estate investment trust to ''Buy'' from ''Hold.''
In Paris, France Telecom is adding 4.4 percent. JPMorgan cut telecoms to ''Underweight'' from ''Neutral.''
Sanofi is rising 3.2 percent and GDF Suez is gaining 2.8 percent.
Bucking the trend, Technip is falling 1.5 percent.
In London, Resolution is climbing 3.4 percent. Experian and Reckitt Benckiser are rising 2.8 percent and 2.5 percent, respectively.
Legal & General appointed Mark Gregory as Group Chief Financial Officer with effect from July 1. The stock is gaining 0.9 percent.
Morgan Stanley raised HSBC to ''Overweight'' from ''Equalweight.'' The lender is advancing 1.1 percent.
ARM Holdings is losing 3.4 percent and Associated British Foods is falling 3.1 percent.
ABB is gaining 3.5 percent in Zurich after it announced a new chief executive.
Richemont is adding 2.4 percent in Zurich, following a broker upgrade at HSBC.
Telefonica is rising 3.1 percent in Madrid, after a report said the Spanish government blocked a friendly takeover bid from AT&T Inc. for some 70 billion euros and 52 billion euros in debt. The company has denied the report.
Philips is gaining 4.4 percent in Amsterdam. Deutsche Bank raised the stock to ''Buy'' from ''Hold.''
Saipem is plunging 25.6 percent in Milan after the oil-services provider issued a profit warning.
Across Asia/Pacific, most markets ended higher. Japan's Nikkei 225 climbed 2.7 percent and Hong Kong's Hang Sengadded 1.2 percent. Australia's All Ordinaries advanced 0.6 percent while China's Shanghai Composite index slid 0.3 percent.
In the U.S., futures point to a higher open. In the previous session, stocks ended firmly in the red, with disappointing industrial production and consumer confidence data weighing on the markets following the previous session's rally. The Dow slid 0.7 percent, while the tech-heavy Nasdaq and the S&P 500 dropped about 0.6 percent each.
In the commodity space, Crude for July delivery is adding $0.69 to $98.54 per barrel while August gold is losing $1.3 to $1386.3 a troy ounce.

US Market Report
US open: Stocks start the week on a strong note
The main US equity gauges have begun the day with a large bounce following the previous week's selling.

That comes ahead of this Wednesday's speech from US Fed President Bernanke following his latest policy meeting.

He is expected to try and further disassociate a possible beginning to the tapering of the Fed's quantitative easing program from any potential for an earlier than expected start to rate rises.

Johnson&Johnson will purchase prostate cancer drug developer Aragon for up to $1bn.

Netflix shares jumped after agreeing a multi-year deal with DreamWorks Animation SKG.

The rise in shares of Boeing is being attributed to the forthcoming start of the 50th Paris Air Show.

Banks are moving slightly higher in the early going, after taking a hit last week. However, in the recent correction they have fared quite well.

The Federal Reserve bank of New York's regional manufacturing gauge rose to 7.84 points in June from -1.43 in the month before (Consensus: 0.0).

The NAHB housing market index for the month of June will be released at 15:00.

Front month West Texas crude futures are rising by 0.32% to the 98.16 dollar per barrel mark on the NYMEX.

10 year US Treasury yields are now flat, at 2.13%.


Broker Tips
Broker tips: AB Foods, Reckitt, Invensys
Nomura has downgraded its rating for food ingredients and retail group Associated British Foods from 'neutral' to 'reduce', saying that the stock is too expensive now that the profit boom for Sugar and Primark over the past two years is no longer supported.

The broker cut its target for the stock from 1,800p to 1,650p following the reduction in earnings forecasts on the back of a more volatile outlook for profitability, especially in Sugar.

Shares in consumer products giant Reckitt Benckiser were making gains on Monday morning after Citigroup reiterated its 'buy' rating and 5,450p target, saying that the stock is undervalued.

"We are buyers of Reckitt for the recovery of its core business and for its potential in Consumer Health. However, we also think Reckitt Benckiser Pharmaceuticals (RBP) is undervalued by the market, particularly in light of its early resilience to the recent entry of generic competition in the US Suboxone market."

Technology group Invensys saw its share price jump on Monday morning after Canaccord Genuity mulled the potential of a takeover by foreign investors.