Countries & Regions Archives - Page 333 of 360

[gigya src=”http://s.wsj.net/media/swf/VideoPlayerMain.swf” width=”512″ height=”363″ quality=”high” wmode=”transparent” allowFullScreen=”true” flashVars=”videoGUID={C0F27595-4101-4E21-83A0-A65A8C53D4F0}&playerid=1000&plyMediaEnabled=1&configURL=http://wsj.vo.llnwd.net/o28/players/&autoStart=false”]

His plan ticks many of the right boxes:

Low corporate tax rate
Low flat personal tax rate
Broad-based consumption tax
Remove the Fed’s dual mandate and limit them to protecting the dollar against inflation

Consumption taxes are often seen as regressive — because everyone pays the same rate — but can easily cater for the poor/unemployed through food stamps and/or changes to unemployment benefits. The worst thing is to create an administrative nightmare with a two-tier system where some items (e.g. basic food or medicines) are exempt from the tax.

October 6, 2011

Widening Gap Between Sentiment and Action – WSJ

Individuals tell pollsters the economy is bad, bad, bad. But they are still shopping…… September U.S. chain-store sales rose by 5.5% on a year-over-year basis, according to the International Council of Shopping Centers.

via Widening Gap Between Sentiment and Action – Real Time Economics – WSJ.

October 6, 2011

Bank of England Expands Quantitative Easing – WSJ.com

The Bank of England said Thursday it will buy £75 billion of government bonds in a fresh bout of quantitative easing aimed at stimulating the U.K.’s stagnant economy.

….The decision sent sterling sharply lower. The pound plummeted to a 15-month low against the dollar, trading at $1.5286 from $1.5459 before the decision. Prices for government bonds surged.

via Bank of England Expands Quantitative Easing – WSJ.com.

October 6, 2011

ECB to Wield Anticrisis Tools – WSJ.com

Mr. Trichet said it would be inappropriate for the ECB to lend to Europe’s main bailout vehicle, the European Financial Stability Facility. A number of both U.S. and European politicians—not least the European Union’s Economic and Monetary Affairs Commissioner Olli Rehn—have urged that the EFSF be given a banking license, which would allow it to borrow from the central bank. However, a number of ECB officials have said this would break the terms of the EU treaty on monetary financing of governments. “We consider that governments have all capacity to leverage the EFSF themselves,” Mr. Trichet said. “We cannot substitute ourselves for governments.”

via ECB to Wield Anticrisis Tools – WSJ.com.

October 6, 2011

ASX 200 rally — but it’s still a bear market

Australia’s ASX 200 index rallied strongly Thursday and is headed for a test of the upper trend channel. 63-day Momentum declining below zero reminds that we are in a strong primary down-trend. Respect of the upper channel would warn of another decline — to test the lower channel border.

ASX 200 Index

* Target calculation: 4000 – ( 4500 – 4000 ) = 3500

We are experiencing exceptional volatility at present and risk of false signals is high. It is important in such situations to look for strong confirmation. One step is to wait for signals on the weekly chart to confirm those on the daily chart. As you can see, this bear market is a long way from over.

ASX 200 Index Weekly

October 6, 2011

Rand triangle

Apologies. I messed up the links at the bottom of the Trading Diary newsletter. For the correct link click here. Correct links are also available on the Trading Diary web page and under Recent Posts in the right margin of this page.

The US Dollar looks like it is forming a triangle against the South African rand. Breakout above the upper border would signal continuation of the advance — with a target of R9.00* — while breach of the secondary trendline would warn of a correction to the longer-term trendline (at 7.35).

USDZAR

* Target calculation: 8.30 + ( 8.50 – 7.70 ) = 9.10

October 6, 2011

Japanese Yen

The dollar is testing support at ¥76, continuing its long-term bear-trend against the yen. Failure of support would signal a decline to ¥72*.

USDJPY

* Target calculation: 76 – ( 80 – 76 ) = 72

October 6, 2011

Pound joins Euro slide

The euro retraced to test resistance at $1.34 but is likely to continue in its downward trend channel. Reversal below $1.3150 would test our target of $1.30*. 63-Day Momentum declining below zero confirms the primary down-trend.

EURUSD

* Target calculation: 1.40 – ( 1.50 – 1.40 ) = 1.30

The pound has been dragged lower by the euro-zone crisis. Breach of support at $1.53 would offer a target of the 2010 low at $1.43.

GBPUSD

October 5, 2011

Kiwi dollar

The Aussie dollar found support between $1.23 and $1.24 against its Kiwi counterpart. The trend channel has weakened and AUDNZD is now likely to range between $1.24 and $1.28. The primary trend remains down, however, and failure of support would offer a target of $1.20*.

AUDNZD

* Target calculation: 1.24 – ( 1.28 – 1.24 ) = 1.20

October 5, 2011

Commodities drag Aussie Dollar and Loonie lower

Falling commodity prices have started a primary down-trend on both the Australian and Canadian dollar. The Aussie rallied off support at its target of $0.94, but respect of the (secondary) declining trendline would warn of further losses.

AUDUSD

* Target calculation: 1.02 – ( 1.10 – 1.02 ) = 0.94

The Loonie also bounced of $0.94 and is testing the first line of resistance at $0.9650. Respect would again warn of further losses.

CADUSD

* Target calculation: 1.00 – ( 1.06 – 1.00 ) = 0.94

Category: Countries & Regions

Herman Cain Explains His 9-9-9 Plan

Widening Gap Between Sentiment and Action – WSJ

Bank of England Expands Quantitative Easing – WSJ.com

ECB to Wield Anticrisis Tools – WSJ.com

ASX 200 rally — but it’s still a bear market

Rand triangle

Japanese Yen

Pound joins Euro slide

Kiwi dollar

Commodities drag Aussie Dollar and Loonie lower