- The unremitting, disheartening economic news hammered US equity markets in
the early going. The DJIA, S&P 500 and Nasdaq all traded at fresh
multi-year lows. Indices are well off their worst levels and seen green, but
around the S&P 500 was 50%
below its high in October, 2007, while the Nasdaq and DJIA were hitting levels
last seen in early 2003. The latest bout of risk aversion was inspired by a
toxic combination of deflation fears, Congressional inaction on the auto
industry bailout, surging unemployment claims hitting highs last seen in 1982
and the Philly Fed index plunging to lows from 1990. The VIX rose above 80 for
the first time in three weeks while Treasury yields moved to historic lows on
the short end. The equity weakness is hitting commodities: front-month crude
briefly broke the $50 handle before the open, while copper is making three-year
lows and aluminum is at four-year lows.
- The major financial names are suffering. Just after the open Goldman briefly
traded briefly below its 1999 IPO price of $53/shr, Citibank is trading below
$5/shr down 20% and JP Morgan is down 10% after earlier hitting lows of -18%.
Before the open Saudi Prince Alwaleed made a vote of confidence in Citi's
recently announced restructuring plans, boosting his stake to 5% from about
4.3% prior. Alwaleed said he believes Citi is taking "all the right
steps," and that its banking model is a "long-term winner."
Overnight the Wall Street Journal took a closer look at Citi's move to
reclassify $80B of off balance sheet assets, noting that the move has unnerved
investors given that the holdings involved aren't garden-variety securities but
rather tricking things like CDOs.
- In other equity news, GE was down more than 10% in early trading after FT
Deutschland reported that the company was holding talks with sovereign wealth
funds in Singapore
and China about
a taking stakes. A GE spokesperson said that GE had no plans to raise
additional capital through Asian funds, flatly contradicting the story. GM and
Ford continue to loose value, with GM briefly trading below $2. GMAC filed its
application to become bank holding company submitted its application for TARP
funds today. Interesting there was also an IPO this morning, the first seen on
US markets since early August. Grand Canyon Education
(LOPE) opened for trading at $10/shr, below the initial pricing of $12.
- A raft of leading US retailers reported third-quarter results yesterday and
this morning that were on the whole not as bad as expected, although many are
cutting their view for the future. Yesterday after the close The Limited,
Gymboree and Hot Topic all beat earnings estimates; encouragingly only The
Limited cut any guidance, bringing its EPS view for FY08 into line with already
diminished analyst estimates. Bon-Ton's loss was smaller than expected,
although it expects a much bigger loss for the year than projected. Buckle,
Gamestop, Perry Ellis, the Children's Place and Wet Seal reported more or less in
line with analysts' estimates; only Gamestop cut guidance. PERY+35% and GYMB
+22% are making big gains, while all the rest expect GME and HOTT are making
respectable gains in early trading.
- The Swiss National Bank surprised currency traders with a big inter-meeting
move, cutting rates in half with a 100 bps ease. The SNB said the surprise move
was necessary as prices have fallen in both oil and raw materials at a rate
that could put inflation below 2% as early as at the end of this year. More
growth concerns are coming to the fore elsewhere in Europe,
Bundesbank noting a "marked slackening" of market dynamics in Q4. In
the US, the
unemployment claims data provided no relief, with the four-week moving average
of 506K at its highest level since 1982. Continuing Claims came in at their
highest level since 1982. EUR/USD tested back below the 1.25 level on chatter
the ECB could announce a rate change at an scheduled non-policy meeting, but
the pair moved back towards the 1.26 area as the morning wore on and
expectations of a intra-meeting cut waned. The ECB has hinted that it would
likely cut rates at its December policy meeting, but need the next series of staff
projections to confirm the move. The USD and JPY kept a firm tone as equity
markets hit multi-year lows just after the open. Commodity currencies will
remain vulnerable on the back of the lower energy and basic metal prices.
USD/CAD is testing the 1.28 level and AUD/USD is probing toward the 0.618 area.
- In fixed income, US Treasury yields continue their move lower on safe-haven
buying as global equity weakness continued overnight. The market saw a record
low on the 2YR yield, now seen trading below 1%. The 10YR yield declined below
the 3.15% to levels not seen in five years. Dealers are noting that the
2YR-10YR spread has narrowed further to +220 bps, which is around a
half-percent under its Oct peak. January fed fund futures are forecasting a 40%
chance of a 75bps rate cut by end of 2008.
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."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
POTENTIAL PRICE RISK: HIGH to Medium- Wed --14:15 GMT-- US- Industrial Production
POTENTIAL PRICE RISK: HIGH- Wed -- 15:00 GMT-- CA- Bank Of Canada Decision
John M. Bland, MBA co-founding Partner, Global-View.com
Max McKegg's Daily Forex Trading Forecasts
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.