World Stocks Up After Greece Asks For Bailout
World stock markets rose Monday as fears of a Greek debt default eased following last week’s request by the country to tap a rescue package from its 15 partners in the eurozone and the International Monetary Fund.
Rate decisions in the US, Japan and New Zealand, and the first GDP release from the US for 2010 are the highlights of this week, which begins slowly and then explodes. Will the dollar index break to a one year high?
Greek hopes turned into worries once again, as more credit downgrades for Greece were released and the talks of a possible default became louder. This story continues to accompany us, as well as the indicators.
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1. American CB Consumer Confidence: Published on Tuesday at 14:00 GMT. This broad survey of 5,000 households had a big dip in February but recovered quickly in March and reached 52.5 points. It’s now expected to take one step higher and rise to 54.2 points. EUR/USD is quite sensitive to this release.
2. Ben Bernanke talks: Starts speaking before the National Commission on Fiscal Responsibility and Reform on Tuesday at 14:00 GMT. In this official public appearance, Bernanke will definitely move the markets. He will testify on the challenge of achieving fiscal sustainability and will comment about the economy.
3. Australian CPI: Published on Wednesday at 1:30 GMT. Australia published its consumer prices only once every quarter, making this event an important release – an important indicator towards the next rate decision. After rising by 0.5% in Q4 of 2009, an acceleration is expected this time – 0.9%. A rise above 1% might push the Stevens to another rate hike. He seems reluctant to make another move soon.
4. American rate decision: Published on Wednesday at 18:15 GMT. Ben Bernanke isn’t expected to make any surprises with the Federal Funds Rate – it’s expected to remain unchanged at a maximum level of 0.25%. Maybe the discount rate will be mentioned. As usual, the FOMC Statement will be closely watched – every change in the wording might have hints, especially the clause about holding interest rates at a low level for an extended period of time.
5. New Zealand rate decision: Published on Wednesday at 21:00 GMT. New Zealand didn’t follow Australia with a move on the rates, and isn’t expected to move them now as well. The Official Cash Rate is expected to stay at 2.5%. Given the unconvincing rise in prices and weak retail sales, this won’t happen soon. The RBNZ Rate Statement that accompanies the rate decision will have a strong impact on the currency, especially if the economic forecast is updated.
6. American Unemployment Claims: Published on Thursday at 12:30 GMT. After rising to alarming levels, last week’s numbers were back to normal, at 456K. This time, a drop down to 440K is predicted. A break under 430K is necessary for seeing serious growth in the job market. Note that this is the best indicator for the Non-Farm Payrolls. Up to now, jobless claims indicate that no fireworks will be seen at the next NFP.
7. Japanese rate decision: Published on Friday morning. Japan’s Overnight Call Rate won’t move from 0.1%, not in the near future. The focus will be on the easing steps that the BOJ will make, and on the updated economic forecasts. Japan declared a war on deflation and could take more steps to stimulate the economy and move prices. Note that the Tokyo Core CPI, the best inflation indicator, is published just before the rate decision and will probably show an annual drop of 2% in prices, worse than previous months.
8. Swiss KOF Economic Barometer: Published on Friday at 9:30 GMT. This important Swiss indicator, based on 12 basic ones, is a good reflection of the Swiss economy, and its moves go hand in hand with the Swissy’s strength. After rising to 1.93 points, a rise to 1.99 is predicted this time, the highest since December 2007.
9. European Unemployment Rate: Published on Friday at 9:00 GMT. The European unemployment rate and flash CPI are published together. Unemployment is flirting around 10% for a few months. This is a big burden on Europe, and prevents Trichet from moving the rates, despite improvements various surveys.
10. European Flash CPI: On the other hand, inflation is slowly picking up. The CPI Flash Estimate is expected to show an annual rise of 1.4% in prices, exactly like last month and the highest level since the end of 2008. German PPI unexpectedly leaped last week. A rise above 1.5% will be problematic for Trichet – fighting inflation with higher rates will endanger the fragile recovery.
11. Canadian GDP: Published on Friday at 12:30 GMT. Canada’s monthly GDP is expected to rise by 0.5% in February, slightly lower than the 0.6% in January, but still in the same good rate as in Q4. Another nice month of growth will support the Canadian dollar in its battle on parity, which is still going on. GDP helped the loonie last month, and after the weak CPI and retail sales, it’ll sure need another boost.
12. American Advance GDP: Published on Friday at 12:30 GMT. After a very strong fourth quarter, that wasn’t accompanied with the same recovery in jobs, economists expect Q1 to show slower growth – an annual rate of 3.4%. Note that these expectations aren’t low, and that exceeding them will be a big boost for the dollar.
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How to trade Google into its earnings report tonight
Here is a great post about trading Google into earnings:
http://blogs.marketwatch.com/cody/2010/04/15/how-to-trade-google-into-its-earnings-report-tonight/
Will the EUR/USD go up or down?-April 12-16 Weekly Review
The EUR/USD pair gapped enormously today on the news of the European Union bailout of Greece announced over the weekend. This powerful move broke through a very significant 4 month descending line of resistance and can only indicate further gains to the EUR/USD. Expect strong volume for this currency pair with important economic events from the U.S. throughout the week. Don’t miss out on this opportunity to make quick gains on the EUR/USD using Binary Options trading.
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1. American & Canadian Trade Balance: Published on Tuesday at 12:30 GMT. This double-feature event always shakes USD/CAD and the American figure, shakes all the majors. It’s expected to show a bigger deficit this time – over 38 billion dollars. USD/CAD parity continues to draw attention.
2. American CPI: Published on Wednesday at 12:30 GMT. Inflation is a key to raising interest rates and making the currency more attractive, but this probably won’t happen this time. CPI is expected to rise by 0.2% after remaining unchanged last time. Core CPI, which the Fed watches closely, is expected to rise by 0.1%, exactly like last month.
3. American Retail Sales: Published on Wednesday at 12:30 GMT, together with the CPI. Consumer behavior is felt strongly in retail sales. The hopes are high this time – Retail Sales are expected to rise by 1.1% after a small 0.3% rise last time, while Core Retail Sales are expected to be rise by 0.5% – more modest. Both releases mean very choppy trading.
4. Ben Bernanke talks: Begins testifying on Wednesday at 14:00 GMT. Bernanke arrives at the Joint Economic Committee and will lay out his economic outlook. Talking about the economy will definitely shake the dollar. Talks about interest rates will cause stronger moves and referring to the dollar will rock the markets, although this is highly unlikely.
5. American Unemployment Claims: Published on Thursday at 12:30 GMT. Last week saw a disappointment – a rise to 460K. This came after a steady improvement, week after week. This figure has proved to be the best indicator for the Non-Farm Payrolls. It’s expected to drop back to 439K this time.
6. American TIC Long-Term Purchases: Published on Thursday at 13:00 GMT. The flow of money into the US is a good gauge of confidence. After leaping above 120 billion three months ago, the figure rapidly squeezed afterwards, reaching 19.1 billion last time. The dollar needs another boost, over 20 billion, to rise.
7. American Philly Fed Manufacturing Index: Published on Thursday at 14:00 GMT. This important gauge of production has been on the rise in the past three months, ticking up to 18.9 points last time. It’s now predicted to take the next step and rise to 20.3 points.
8. European CPI: Published on Friday at 9:00 GMT. European prices are too stable for a rate hike in the foreseeable future. This is a burden on the Euro. CPI will probably be confirmed at an annual rise of 1.5% while Core CPI is expected to be revised from 0.8% to 0.9% – still quite low. The Euro still suffers from the Greek crisis.
9. American housing figures: Published on Friday at 12:30 GMT. Building Permits ticked up to 640K last month, slightly better than expected. So now, they’re predicted to slip back down to 630K. The complementary figure, Housing Starts, is expected to make a bigger move with a rise from 580K to 610K. If both figures surprise in the same direction, this will rock the markets.
10. American Consumer Sentiment: Published on Friday at 13:55 GMT. The University of Michigan publishes this important indicator close to the end of the day. After a few stable months, this figure is predicted to rise above 75 points, the highest since January 2008. Choppy trading is expected.
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iPad Launched this Saturday how is it going to impact on the stock’s price?
Stock Highlights: Apple iPad Launch
There has been a lot of talk about the iPad since the announcement of its launch. Still, many debate what it really is, what it can do, what are the applications that are best fit for the iPad. But the main question that remains is: how is it going to impact on the stock’s price?
Apple’s [Nasdaq:AAPL] new wonder device, the iPad, got off to a strong start even before this weekend’s official launch date. Eager customers lined up at Apple stores Saturday to get their hands on the new and much-hyped tablet-style PC. This was due in part, no doubt, to the fact that Apple sold out of preorders of the iPad. With a starting price of $499 to $699, estimates for iPad sales for all of 2010 range from 3 million to 6 million units. Estimates for just this weekend alone range from 300,000 to 500,000 units out the door and into the hand of early adopters and Apple fanatics.
Forex Market Review:
The upcoming week begins with important American figures on Easter day, and continues with a very busy week all over the world – four rate decisions, two employment releases and one Ben Bernanke are on the menu this week. Let’s see what’s awaiting us:
This market review was brought to your by our partner: ForexCrunch.com
The echoes of the Non-Farm Payrolls will be heard at the beginning of the week, when the calendar is light, and also afterwards. The rise in jobs, that finally arrived, will raise the pressure for a rate hike. OK, let’s start reviewing the 11 major events:
1. American ISM Non-Manufacturing PMI: Published on Monday at 14:00 GMT. After the same figure for the manufacturing sector posted a huge surprise last week, expectations are high for this figure as well – a rise from 53 to 54.3 points is predicted – the highest in two and a half years.
2. American Pending Home Sales: Published on Monday at 14:00 GMT. After a huge disappointing drop of 7.6% last month, this important housing indicator is predicted to drop by another 0.9%. Together with the PMI, both figures will rock the markets on Easter Day, as most traders are on holiday, and only these releases are due.
3. Australian rate decision: Published on Tuesday at 4:30 GMT. There contradicting expectations for this decision. On one hand, Glenn Stevens (RBA governor) signaled another rise in rates to 4.25%, but the recent figures from Australia indicated a pause, after they reached 4%. The uncertainty will make the impact stronger than usual.
4. American FOMC Meeting Minutes: Published on Tuesday at 18:00 GMT. Despite the rise in the discount rate and one member, Thomas Hoeing, that wants the bank to be more hawkish, the FOMC statement hasn’t really changed recently. Will the meeting minutes reveal something new about a future rate hike?
5. Japanese rate decision: Published on Wednesday morning. The BOJ isn’t expected to move the interest rates, still at 0.1%. The focus will be on the tone of the accompanying statement and especially on extra easing steps. Japanese policymakers are happy with the recent decline of the yen, but the economy is still struggling, as seen in the Tankan index. This will shake USD/JPY and the yen crosses.
6. Australian employment data: Published on Thursday at 1:30 GMT. After 4 superb months, the recent employment figures in Australia were only OK. More positive yet stable data is due this time – employment change is predicted to rise by 20K, and the unemployment rate to remain unchanged at 5.3%.
7. British rate decision: Published on Thursday at 11:00 GMT. The Official Bank Rate is expected to stay at the historic low of 0.5%, and the Quantitative Easing program will probably not receive extra cash, after exhausting the 200 billion pounds allocated to it. The focus will be on the MPC rate statement, and especially comments about the government deficit and the economy. Will Mervyn King hurt the Pound again?
8. European rate decision: Published on Thursday at 11:45 GMT. Jean-Claude Trichet will make his first rate decision after the Greek accord (“safety net”), that helped the Euro recover. The rate has no reasons to rise above 1%, so also here, comments about the economy at the press conference (45 minutes after the release) will rock the Euro.
9. American Unemployment Claims: Published on Thursday at 12:30 GMT. Yet another drop in the weekly jobless claims is due. After reaching 439K, they’re predicted to drop to 432K, supporting more job gains in the next NFP. Recent releases were better than expected. Will there be another positive surprise?
10. Ben Bernanke talks: Starts speaking on Friday at 00:30 GMT. The chairman of the Federal Reserve always moves the markets, even if he doesn’t say anything meaningful. He’ll speak about economic policy at a dinner in Washington, and will respond to questions from the audience. The dollar could move sharply in the middle of the Asian session.
11. Canadian employment data: Published on Friday at 11:00 GMT. After the recent drop to 8.2%, Canada’s unemployment rate will probably remain unchanged. The accompanying figure, employment change, will probably show another nice gain in jobs – 25.3K. This can push the loonie higher.
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