- Markets surged in pre-open trading and shot up higher after the bell this
morning thanks to Hank Paulson's announcement that he will exercise the
Treasury's authorization to bail out Fannie Mae and Freddie Mac. The DJIA
topped out at +3% just after the bell and the Nasdaq was up just over 2%, but
indices have been trending downwards in early trading. As nearly everyone now
knows, the Treasury said late on Friday that it would seize control of the
GSEs, ensure that the firms would continue buying mortgage-backed securities
and back up the holders of the firms' outstanding bonds. No support was offered
to holders of common stock, although interestingly both names have been allowed
to continue trading; FRE and FNM opened down more than 75% and even traded up
momentarily. Central bankers, administration officials, the presidential
candidates and almost every other major stakeholder in the world financial
system has commented on the bailout over the last three days; the commentary
has tended to the admission that the bailout was inevitable and more or less
positive. Leading financial names opened strong, up 7-9% (GS opened +5%, C
+9.2%, XLF+8%), but the sector has given up a third to a half of these gains in
early trading. LEH is an exception, opening up 9% and then falling
precipitously into negative territory. A South Korean Regulator said over the
weekend that potential Lehman suitor Korea Development Bank (KDB) needs to
think carefully about any investment in firm, noting that while there is no
conflict between KDB and the government on pursuing â€śoverseas deals,â€ť KDB
should concentrate on fighting domestic risk. In addition, the London Times
reported that Lehman is preparing a plan to split the firm in two with Q3
earnings, hoping to spin off its toxic assets in a separate company.
Oppenheimer's Whitney lowered her outlook on US investment banks, cutting Lehman's Q3
EPS estimates to -$2.70/shr from -$0.23/shr prior and Merrill's Q3 estimates to
-$4.60/shr from -$2.93/shr prior. Both WM and WB opened +16% and have declined
to +3% and +10%, respectively. The WSJ reported overnight that both banks are
close to announcing new CEOs; WM later confirmed the story. ZION+8% is up (after spiking up 20% at the
open) despite the FDIC seizing its Silver State Bank subsidiary ($2B in assets)
on Saturday. Homebuilders have benefited from the GSE news as well as positive
comments on the sector from a Goldman analyst; the XHB traded up as high as
+12% before settling to around +8% in early trading. Crude has remained calm
ahead of the OPEC conference in Vienna tomorrow and news that Hurricane Ike
will likely miss the industry in the Gulf. Overnight the Kuwaiti oil minister
said there is no need to cut production at the meeting, while the UAE oil
minister said global oil markets are well supplied. A Goldman analyst
recommended the Homebuilders as long-term investment. MO+4% after saying that
it would acquire UST+2% for $69.50/shr in cash in deal worth $11.7B, confirming
earlier media speculation. United Airlines was halted after falling steeply
this morning after a staffer at the Chicago Tribune reportedly posted a four-year-old story
on the airline going bankrupt, taking the entire airline sector down with it.
Investors are disappointed in BIOD-65% lukewarm diabetes trial results. It is
also worth noting that the NASDAQ is noticeably underperforming today with the
semis and shares of Apple weighing on the index.
- Treasury prices came off hard in electronic trade mostly in reaction to the
GSE bailout plane and subsequent strength in stocks. Prices did pare losses
after the open of floor trade though yields are still higher and the benchmark
curve is flatter. The 10-year note future is down 29 ticks with the cash
yielding 3.74%. The Jan fed fund future is again pricing in roughly a 15%
chance for a rate hike by the end of the year. That contract had seen very
small odds of a rate cut following Friday's disappointing jobs data.
- In currencies, the greenback maintained a firm tone against the European
currencies as oil and gold retreated from their best levels. The EUR/USD
continues to hover around Friday's pre-US employment low of 1.42 and Euro
tested fresh 11 months lows below 1.4175 area. Risk aversion slowly creeping
back into the market causing JPY and CHF to firm against various European pairs
with EUR/JPY back below the 154 handle and EUR/CHF dipping below the 1.60 area.
Germany's IG Metall Union is reportedly seeking
a 7-8% wage increase, which the board will likely endorse on Sept 23. Various
central bankers continued to speak highly of the US government bailout of the GSEs, adding
that the process of repricing risk is continuing while central banks must
remain alert to the remaining risk in this process. The ECB's Trichet said that
the US action was welcome, reiterating that
global inflation remains at a very high level and that anchoring global
inflation expectations remain important, as global levels are
"abnormal." ECB's Stark reiterated that slower economic growth may
not dampen inflation in the short term and added that the current stance will
help achieve stability in prices.
- European equities remain broadly higher on the US GSE bailout. Euro Stoxx 50
+3.9% at 3,307; FTSE 100 Index +3.8% at 5,440; CAC 40 Index +4.3% at 4,377 and
DAX Index +2.9% at 6,303.
Legal disclaimer and risk disclosure
All information provided by Trade The News (a
product of Trade The News, Inc. "referred to as TTN hereafter") is
for informational purposes only. Information provided is not meant as investment
advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed
reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete
2. Information can be mistakenly re-released or be
delayed, 3. Information may be incorrect, misread,
misinterpreted or misunderstood 4. Human error is a business risk you are
willing to assume 5. Technology can crash or be interrupted without notice 6.
Trading decisions are the responsibility of traders, not those providing
additional information. Trade The News is not liable
(financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities
involves a high degree of risk, and financial losses can and do occur on a
regular basis and are part of the risk of trading and investing.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Actionable trading levels delivered to YOUR charts in real-time.
Mon 10 Sep 2018 AA 08:30 GB- GDP, Trade, Output Tue 11 Sep 2018 AA 08:30 GB- Employment Decision A 09:00 DE- ZEW Survey Wed 12 Sep 2018 A 12:30 US- PPI A 14:30 US- EIA Crude A 18:00 US- Beige Book Thu 13 Sep 2018 A 1:30 AU- Employment AA 11:00 GB- Bank of England Decision AA 11:45 EZ- European Central Bank Decision A 12:30 US- Weekly Jobless AA 12:30 US- CPI Fri 14 Sep 2018 A 08:30 GB- GDP AA 12:30 US- Retail Sales A 13:15 US- Industrial Production AA 14:00 US- prelim University of Michigan
John M. Bland, MBA co-founding Partner, Global-View.com
Global-View Affiliate Program
We are starting an affiliate program to market some of our products.
Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.
Put the word "affiliate" in the email subject line.
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.