Category: Countries & Regions

Posted on

Canada: TSX60 rising

The TSX 60 broke resistance at 685 on the weekly chart, penetrating the descending trendline to signal that a bottom is forming. Bullish divergence on 63-day Twiggs Momentum suggests reversal to an up-trend. Breakout above the 2012 high of 730 would confirm.

TSX 60 Index

Posted on

S&P 500 and Nasdaq test key resistance

On the monthly chart, the S&P 500 Index is testing resistance at 1420. A trough above zero on 13-week Twiggs Money Flow indicates buying pressure. Breakout above 1420 would signal an advance to the 2007 high at 1560*.

S&P 500 Index

* Target calculation: 1420 + ( 1420 – 1280 ) = 1560

The Nasdaq 100 is similarly testing resistance at 2800 on the weekly chart. Breakout would offer a target of 3150*. A 63-day Twiggs Momentum trough above zero indicates continuation of the primary up-trend.

Nasdaq 100 Index

* Target calculation: 2800 + ( 2800 – 2450 ) = 3150

10-Year Treasury Yields recovered above initial resistance at 1.70 percent. Expect an attempt at the primary level of 2.40 percent. The Fed purchased $5 billion of Treasury notes/bonds (nominal) and MBS last week; so they are not the cause of the rise. Investors appear to be flowing out of Treasuries and driving stocks higher.

10-Year Treasury Yields

Posted on

Correlation Breakdown as Proxies for Risk Boost Aussie, Kiwi – Bloomberg

By Allison Bennett and Lucy Meakin – Aug 14, 2012

The strength of the Aussie is increasingly driven by reasons other than raw materials as growth slows for exports to China, its largest trading partner. Prices for iron ore delivered to the port of Tianjin have dropped to the lowest level since December 2009, according to Steel Index Ltd., and contracts for coal used to make steel may fall 11 percent to the lowest price in two years, according to a Bloomberg survey of seven analysts and industry officials.

via Correlation Breakdown as Proxies for Risk Boost Aussie, Kiwi – Bloomberg.

Posted on

"François Hollande’s Wrong Idea of France" by Brigitte Granville | Project Syndicate

Since the euro’s introduction, unit labor costs have risen dramatically faster in France than they have in Germany. According to Eurostat data published in April 2011, the hourly labor cost in France was €34.2, compared to €30.1 in Germany – and nearly 20% higher than the eurozone average of €27.6. France’s current-account deficit has risen to more than 2% of GDP, even as its economic growth has ground to a halt.

The high cost of employing workers in France is due not so much to wages and benefits as it is to payroll taxes levied on employers. The entire French political class has long delighted in taxing labor to finance the country’s generous welfare provisions, thus avoiding excessively high taxation of individuals’ income and consumption – though that is about to come to an end as Hollande intends to slap a 75% tax on incomes above €1 million. This is a version of the fallacy that taxing companies (“capital”) spares ordinary people (“workers”).

via “François Hollande’s Wrong Idea of France” by Brigitte Granville | Project Syndicate.

Posted on

See which presidential candidate you side with

Answer the following questions to see which presidential candidates you side on most issues with.
Click the image below to complete the quiz.

Click this image to complete the quiz

via See which presidential candidate you side with.

Posted on

French Industrial Policies Are Aiding Rapid Decline of Peugeot – SPIEGEL ONLINE

By Dietmar Hawranek and Isabell Hülsen:

When Helping Is Hurting
Ironically, the victims of these two developments — focusing on production in France and high wage increases — are those whose cause is being championed by governments and labor representatives: the autoworkers themselves. Workers at the [Peugeot] Aulnay plant had to look on as their company went into gradual decline. Aulnay was once one of the most modern plants in the country, annually producing more than 400,000 cars. Today, fewer than 140,000 vehicles roll off its assembly lines each year. An auto plant that produces so few vehicles can hardly be profitable. If President Hollande and the unions compel Peugeot to keep the plant in operation, they will only accelerate the company’s demise.

via French Industrial Policies Are Aiding Rapid Decline of Peugeot – SPIEGEL ONLINE.

Posted on

ASX revenue from high frequency trading soars

A new data center, catering for high-speed trading, is becoming a major revenue-source for the ASX. My concern is that this could change the entire focus of the ASX, outweighing revenue from traditional stock market trading. Tom Steinert-Threlkeld at the Securities Technology Monitor writes:

The Australian Securities Exchange Group said Thursday that its revenue from Technical Services in its 2012 fiscal year topped the amount of revenue it received from stock market trading……

The growth in Technical Services revenue came as the company introduced different order types and execution services, and completed a state-of-the art data center. That data center operates at high speed and handles high volumes of trading orders, from computers belonging to trading firms that are located inside its walls. ASX said it was hosting 59 clients in the new data center as of June 30.

via Stock Trading Revenue Topped by Technology at Australia Exchange.

 

Posted on

Friedman’s Japanese lessons for the ECB « The Market Monetarist

Milton Friedman, December 1997:

Defenders of the Bank of Japan will say, “How? The bank has already cut its discount rate to 0.5 percent. What more can it do to increase the quantity of money?”

The answer is straightforward: The Bank of Japan can buy government bonds on the open market, paying for them with either currency or deposits at the Bank of Japan, what economists call high-powered money. Most of the proceeds will end up in commercial banks, adding to their reserves and enabling them to expand their liabilities by loans and open market purchases. But whether they do so or not, the money supply will increase.

There is no limit to the extent to which the Bank of Japan can increase the money supply if it wishes to do so. Higher monetary growth will have the same effect as always. After a year or so, the economy will expand more rapidly; output will grow, and after another delay, inflation will increase moderately. A return to the conditions of the late 1980s would rejuvenate Japan and help shore up the rest of Asia.

via Friedman’s Japanese lessons for the ECB « The Market Monetarist.

Friedman was suggesting that the BOJ implement QE to boost the money supply and create inflation. Inflation would rescue the banks and real-estate-owners with underwater mortgages.

Posted on

Forex: Euro, Pound Sterling, Canadian Loonie, Australian Dollar and Japanese Yen

The Euro is testing short-term support at $1.2250 on the daily chart. Recovery above $1.2400 would indicate another rally, while failure of support would test primary support at $1.2050. The primary trend is still downwards, but breach of the descending trendline means the primary down-trend is losing momentum and a bottom is forming. Failure of primary support is unlikely but would warn of another down-swing, with a target of $1.185.

Euro/USD

* Target calculation: 1.215 – ( 1.245 – 1.215 ) = 1.185

Pound Sterling found support at €1.255 against the Euro before rallying to €1.28. Narrow consolidation between €1.27 and €1.28 suggests continuation of the rally. Breach of resistance at €1.29 would signal an advance to €1.315*. Rising 63-day Twiggs Momentum reflects a strong primary up-trend.

Pound Sterling/Euro

* Target calculation: 1.285 + ( 1.285 – 1.255 ) = 1.315

Canada’s Loonie is headed for a test of resistance against the greenback at $1.02.  Bullish divergence on 63-day Twiggs Momentum on the weekly chart suggests a primary up-trend; confirmed if resistance at $1.02 is broken.

Canadian Loonie/Aussie Dollar

Shallow retracement of the Aussie Dollar against the greenback suggests trend strength. Recovery above $1.06 would indicate an advance to $1.075. Breakout above $1.075/$1.08 would offer a long-term target of $1.20* but RBA intervention, to protect local industry, could be a factor.

Aussie Dollar/USD

* Target calculation: 1.045 + ( 1.045 – 1.015 ) = 1.075

The greenback found support at ¥78 against the Japanese Yen. Rising Twiggs Momentum and penetration of the descending trendline both warn that a bottom is forming. Recovery above ¥80.50 would complete a double bottom reversal, suggesting an advance to ¥84.

US Dollar/Japanese Yen

* Target calculation: 81 + ( 81 – 78 ) = 84

The Aussie Dollar broke medium-term resistance at ¥82 against the Japanese Yen, headed for a test of the upper range border at ¥88/¥90. Rising 63-Day Twiggs Momentum and recovery above zero suggest a primary up-trend as the Aussie Dollar attracts capital inflows.

Aussie Dollar/Japanese Yen

Posted on

New Research Busts High-Frequency Trading and Dark Pool Myths — CMCRC

Press Release: Capital Markets Cooperative Research Centre

CMCRC, the Australian independent academic centre for capital market research, has found that high-frequency trading (HFT) actually benefits capital market structures and performance, while dark pools may have damaging effects.

Speaking at an event in Beijing, Professor Frino outlined his research that showed that HFT activity adds real liquidity to markets and has no impact on price volatility — surprising findings, as HFT has regularly been accused of negatively impacting these measures of market quality.

“High frequency traders now account for more than 50 percent of trading volume in some global markets, whereas seven years ago it was virtually absent from markets,” Professor Frino said. “Alongside this trend is an explosion in so-called ‘dark pools,’ in which investors are executing their trading in invisible or non-transparent markets. Dark pools are making trading on exchanges less relevant.”

via New Research Busts High-Frequency Trading and Dark Pool Myths — CMCRC – Yahoo! Finance.

Powered by WordPress / WordPress Maintenance Service By Website Helper