Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Gold Amid Epidemiological and Economical Update - 15th Jul 20
Is it Time To Dump Gold Stocks? - 15th Jul 20
Retail Stock Market Traders & Investors Squeezed to Buy High-Risk Assets Again - 15th Jul 20
SPX about to Challenge 8/08 High - 15th Jul 20
How to Grow Huge Fruiting Magical Indoor Grape Vines at Home UK - 15th Jul 20
Stock Market Dow 30k before End of 2020? - 13th Jul 20
Credit Market Investments Turned Into End-User Risk Again - 13th Jul 20
Investors Are Going All-In on This Coronavirus Proof Industry - 13th Jul 20
5 Vital Insights That You Can Gain From Instagram Trackers - 13th Jul 20
Stop Believing The 'Economy' Is The Same As The Stock Market - 12th Jul 20
Spotify Recealed as The “Next Netflix” - 12th Jul 20
Getting Ahead of the Game: What Determines the Prices of Oil? - 12th Jul 20
The Big Short 2020 – World Pushes Credit/Investments Into Risk Again - 11th Jul 20
The Bearish Combination of Soaring Silver and Lagging GDX Miners - 11th Jul 20
Stock Market: "Relevant Waves Vs. Irrelevant News" - 10th Jul 20
Prepare for the global impact of US COVID-19 resurgence - 10th Jul 20
Golds quick price move increases the odds of a correction - 10th Jul 20
Declaring Your Independence from Currency Debasement - 10th Jul 20
Tech Stocks Trending Towards the Quantum AI EXPLOSION! - 9th Jul 20
Gold and Silver Seasonal Trend Analysis - 9th Jul 20
Facebook and IBM Tech Stocks for Machine Learning Mega-Trend Investing 2020 - 9th Jul 20
LandRover Discovery Sport Service Blues, How Long Before Oil Change is Actually Due? - 9th Jul 20
Following the Gold Stock Leaders as the Fed Prints - 9th Jul 20
Gold RESET Breakout on 10 Reasons - 9th Jul 20
Fintech facilitating huge growth in online gambling - 9th Jul 20
Online Creative Software Development Service Conceptual Approach - 9th Jul 20
Coronavirus Pandemic UK and US Second Waves, and the Influenza Doomsday Scenario - 8th Jul 20
States “On the Cusp of Losing Control” and the Impact on the Economy - 8th Jul 20
Gold During Covid-19 Pandemic and Beyond - 8th Jul 20
UK Holidays 2020 - Driving on Cornwall's Narrow Roads to Bude Caravan Holiday Resort - 8th Jul 20
Five Reasons Covid Will Change SEO - 8th Jul 20
What Makes Internet Packages Different? - 8th Jul 20
Saudi Arabia Eyes Total Dominance In Oil And Gas Markets - 7th Jul 20
These Are the Times That Call for Gold - 7th Jul 20
A Reason to be "Extra-Attentive" to Stock Market Sentiment Measures - 7th Jul 20
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Stock Markets Another Glass Half Full Day

Stock-Markets / Financial Markets 2009 Aug 21, 2009 - 04:10 AM GMT

By: PaddyPowerTrader

Stock-Markets

Best Financial Markets Analysis ArticleA real pick and mix day US data wise yesterday with initial jobless claims unexpectedly rising again, the Philadelphia Fed manufacturing index breaking into positive territory, leading indicators9.24% of all loans are now delinquent rising for the fourth consecutive month and mortgage delinquencies reaching record highs in Q2. . 23% of the mortgages in Florida are now either late on payment or in some part of the foreclosure process.


Still despite poor results from Sears and Gamestop, financials propelled markets higher with Citibank up 8.5% (to its best close since Jan 14th) on some wild talk from analyst Richard Bove of Rochdale Securities that it will triple over the next three years. Also AIG soared another 22% on comments by incoming CEO Benmosche (who will have to get by on $7m a year) that it may be able to repay some TARP monies (yeh maybe this century). Over on the Nasdaq Google was perky after being added to Goldman Sachs conviction buy list.

Sentiment appears to be oscillating between risk aversion and relief on a session-by-session basis. However, the past month has been characterised by declining volumes typical of the summer holiday season. History suggests that trends established during periods of low trading volumes have swiftly petered out once volumes picked up.

Today’s Market Moving Stories

  • The Nikkei average fell 1.3% overnight as automakers were weaker ahead of the end of the US “cash for clunkers” programme on Monday. Shares in the world’s biggest automaker, Toyota Motor shed 2.7%. A stronger Yen also hurt exporters.
  • The overnight price action provides further confirmation, if any were needed, of the market’s current fetish with all things Chinese. At this stage, though, the suggestion that policy makers want to reign in the banks is insufficiently concrete to drive a major reappraisal of global growth or stock markets.
  • Watch out for Bernanke’s speech at 15.00 from the Jackson Hole Conference. It’s a session closed to reporters but no doubt his comments will eek and on a thin Friday may make for some volatility if he hints at any change in the time table for rate hikes.
  • China said to plan tightening of capital requirements. The China Banking Regulatory Commission sent a draft of rule changes to banks on August 19 requiring them to deduct all existing holdings of subordinated and hybrid debt sold by other lenders from supplementary capital. Banks have until August 25 to give feedback. As a result, banks may need to rein in lending or sell shares to lift capital adequacy ratios to the 12% mandated by the regulator. “This move will cut one of the most important funding sources for banks,” said Sheng Nan, an analyst at UOB Kayhian Investment. Banks will “have to either raise more equity capital or slow down lending and other capital consuming businesses to stay afloat.”
  • Separately a government think-tank, the Orwellian sounding State Information Centre, said China’s gross domestic product would grow about 8.5% in the third quarter from a year earlier, picking up pace from the second quarter’s 7.9%.
  • Japanese retail investors have become considerably less bearish on domestic stocks with sentiment at its highest in nearly two years, a Reuters poll showed, reflecting hopes the economy has bottomed out. The monthly survey also showed a majority of retail investors favour the campaign platform of the main opposition Democratic Party, which has a good chance of ousting the ruling Liberal Democratic Party in an election on August 30. The poll’s investor sentiment index hit minus 10, an improvement of 24 points on July. This marked the first rise in three months and was the highest level since September 2007 when it was at zero.
  • The next phase of the credit crisis looms, warns the Wall Street Journal. After all the losses racked up from their own loans gone wrong, the banks now face all the losses from the debt they bought. The Journal picked up on the woes of Guaranty Financial, which is on the brink of failure (and sale to Spain’s Banco Bilbao) as a result of its bought investments gone wrong. Guaranty is based in Texas yet it owns $3.5bn worth of ARM mortgages of which two-thirds originated in California and Arizona.
  • As its Friday, play the great flu game.

Mortgage Modifications
Missed this Thursday (you can look such a prat with a Kindle on the Underground) but a Manhattan judge made an extremely important ruling Wednesday – that Countrywide could not modify the terms of many of its mortgages. The reason was that the mortgages had been spun off into MBS product and hence they didn’t belong to Countrywide for it to modify. Remember that the US government has been pushing hard for loan modifications in order to alleviate the worst of the housing pressures (as well as foreclosure moratoriums). MBS holders sued Countrywide for the simple fact that modifications to the underlying mortgages would completely alter the terms of their MBS – in short they wouldn’t be the bonds they thought they held. The story is widely reported in the US press, though the NY Times’ write up is thorough.

More Ryanair Routes This Winter
Ryanair announced that it will operate eight new Edinburgh routes this winter while also extending its summer routes to/from Malta and Rome. The company also announced expansion at its Dusseldorf and Madrid bases, with two new routes at Dusseldorf and four new Madrid routes. This on top of the recent announcement of 14 new routes from Leeds Bradford, Ryanair has announced 22 new UK routes in August. The development of Edinburgh and Madrid demonstrates Ryanair’s appetite and ability to grow at big city bases previously underserved by low-cost carriers and suffering from declining offerings from the legacy incumbents. It is also worth noting that the new routes include four Spanish destinations, all of which will offer zero airport charges for the winter period. This a real hobby horse of Michael O’ Leary.

Another Great Video From Paddy Hirsch
There has been an awful lot of talk about the new boggy man of High Frequency Trading and the long arm of Goldman Sachs causing late in the day pops in prices into what was looking like being a soggy close. But what exactly is it. Well I’ll let the other Paddy explain.


And Finally… A Tip On Negotiating Your Salary – “The Flinch” Technique


Disclosures = None

By The Mole
PaddyPowerTrader.com

The Mole is a man in the know. I don’t trade for a living, but instead work for a well-known Irish institution, heading a desk that regularly trades over €100 million a day. I aim to provide top quality, up-to-date and relevant market news and data, so that traders can make more informed decisions”.© 2009 Copyright PaddyPowerTrader - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

PaddyPowerTrader Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules