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U.S. Stock Market Indexes Surge at Record High

U.S. stocks market indexes surge at record high, led by modest gains in banks and technology companies.The latest gains were enough to nudge the Dow Jones industrial average to its second all time closing high in two days. 

The S&P 500 Index closed within five points of its record. The financial index was the best performer among the 11 major S&P sectors, ending up 0.61%. Quarterly earnings kick off later today with three of the biggest U.S. banks including JPMorgan Chase, Wells Fargo and Citigroup reporting results.

Analysts estimate Q2 earnings for S&P 500 companies rose 7.8% from a year ago, with financials projected to have had the third best profit growth among sectors.

Investors have more than doubled the amount of cash invested in a key financial sector fund in the last few days, betting that Q2 bank earnings will be strong.

 

The Dow Jones Industrial Average rose 0.1% to 21,553.09, the S&P 500 gained 0.19% to 2,447.86 and the Nasdaq Composite added 0.21% to 6,274.44.

About 5.8 billion shares changed hands on U.S. exchanges, below the 6.8 billion daily average for the past 20 trading days

 

 

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Asian Shares Rally Amid Fed Raise Rates

Asian shares scaled a two year top today as investors wagered that policy tightening in the United States would be glacial at best, lifting Wall Street to record peaks and lowering bond yields almost everywhere.

The star performer was the Canadian dollar, which rocketed to 1 -month highs after the country's central bank hiked rates for the first time in seven years and left the door wide open to further moves.

 

MSCI's broadest index of Asia Pacific shares outside Japan rose 0.45% to its highest since mid 2015. Japan's Nikkei firmed 0.4% and Australia's ASX index jumped 1%.

Stocks were underpinned by a drop in bond yields as Dr Yellen sounded cautious on inflation and noted the Fed would not need to raise rates, all that much further to reach current low estimates of the neutral funds rate.

Indeed, markets doubt even that modest tightening will ensue and imply only a 50-50 chance of a rise by December. Treasuries rallied in reaction, with yields on two year notes falling to three week lows, as did bonds in Europe.

The odd man out was Canada, where yields hit their highest since late 2013 after the Bank of Canada raised rates a quarter point, saying the economy no longer needed as much stimulus.

 

Against a basket of currencies, the dollar was holding just above nine month lows at 95.793. The drop in US yields benefited gold, which pays no interest, and nudged the precious metal up to US$1,218.35 and away from its recent trough of US$1,204.45.

Oil prices faded as a report showing hefty draw downs in US crude inventories was offset by data pointing to lackluster gasoline demand.

 

 

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Temasek Holdings Surged $275 billion SGD in Portfolio Value

Temasek Holdings reported that its portfolio value increased to $275 billion SGD. Its one year total shareholder return was 13%, reflecting the strong performance in equity markets around the world over the period from April 1, 2016, to March 31, 2017.

This measure includes dividends paid to its shareholder, the Finance Ministry, but not capital injections from the ministry. Temasek's shareholder did not make any capital injections in the last financial year. 

 

The boost in portfolio comes from a recovering global economy and strong stock markets which helped Temasek Holdings net portfolio value to a new all-time high. But the investment company warned in its annual review that the global economic recovery is still in its early stages and a host of uncertainties remain, both in the medium and long term.

It is also facing stiffer competition amid a difficult investing environment, yield hungry investors are driving up asset prices and making it tougher to find good deals.

Temasek invested $16 billion and divested $18 billion in the portfolio during the fiscal year, marking the first net divestment position since the end of March, 2009.

The report marks a sharp turnaround from the previous year, when Temasek reported its net portfolio value tumbled by around S$24 billion, or around 9 percent, to around S$242 billion as of March 31, 2016. It was the first time the portfolio had declined since 2009, which was during the global financial crisis.

 

The investment company has now continued to focus on new, long-term opportunities in areas including technology, life sciences, agribusiness, non-bank financial services, consumer and energy and resources.

While the company had previously looked to publicly listed investments, Temasek was focusing on private and negotiated opportunities such as equity market valuations.

 

 

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Snap Inc. Shares Crashes, Falls Below its IPO Price

Snap Inc. shares falls below its initial public offering price (IPO) of $17 down 1.1% to $16.99 marking a new post IPO low for the social media upstart. The stock has fallen more than 30% so far this year, as concerns about Snap's future growth, profitability and rivalry with other social media. 

In May, Snap reported its first earnings as a public company and missed on all three of its most important metrics - earnings, revenue and user growth which did little to reassure nervous investors.

 

Credit Suisse analysts cut their price target for Snap to $25 from $30, although they kept their outperform rating. The analysts said they expect Snap to be volatile in the near term as more than 700 million shares potentially come out of their lock up period later this month.

However, advertisers still appear to be flocking to Snap Inc. as they were drawn to the platform's access to younger users and improving return on investment. This signify well for Snap, as advertising is the main revenue source for the company. 

In its most recent quarter, about $129 million of Snap's total $149.6 million in revenue came from advertising. Other deals, such as Snap's purchase of Zenly for $200 million in late March, could have indirect benefits for advertisers. 

Snap likely used the Zenly acquisition to build out its Snap Map product, which was released in late June and lets users share their location with friends inside an interactive map. Snap Maps could become a crucial part of the online to offline integrated advertising ecosystem.

 

Snap's recent declined was 42.4% below the record high of $29.44 reached in its second day of trading. The IPO breach came in Snap's 90th trading day on the public market. The stock had previously dipped to $17 in mid June.

Dipping below an IPO price is seen on Wall Street as a setback to be avoided by chief executives and their underwriters, but it is not uncommon for Silicon Valley companies.

 

The Snapchat messaging app is popular among people under 30 who enjoy applying bunny faces and vomiting rainbows onto their pictures. But many on Wall Street have been critical of Snap's high valuation and slowing user growth and the company has warned it may never become profitable. 

 

 

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China Hedge Funds Bounces after 5 Years Low

Greater China hedge funds added more than 13% on average in the first half of 2017 to rank among the top performing strategies in the world. Hedge funds from Greenwoods Asset Management, Springs Capital and SPQ Asia Capital were among standout performers with gains of 20% or more.

Hedge funds worldwide are struggling with investor redemption after central bank intervention suppressed volatility and sapped returns. China funds were a rare pocket of out performance as global hedge funds on average gained about 2.4% in the first half. 

 

China hedge funds bounced back after five years of worst performance.  Investors are taking notice that the majority of hedge funds in China saw inflows in May for the first time since 2015.

While Greater China equity funds overall benefited from surging Hong Kong listed shares and large cap stocks on the mainland, mainly bets on technology, Internet and consumer companies drove returns at some of the top performers. 

 

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong touched post October 2015 highs in the first half. The MSCI China Index added about 24% through June 30. China’s initiation into MSCI Inc.’s indexes has further boosted the outlook for the nation’s largest stocks.

Greenwoods’ $1.6 billion Golden China Fund made nearly 27% in the first half. Performance was boosted by bullish bets on consumer stocks listed in Hong Kong and China.

Other managers found opportunities in overlooked areas. Springs Capital’s China Opportunities Fund added more than 7.5% in June, with 2017 gains topping 24%.

Profit at the fund, one of the rare offshore stock hedge funds that focuses on yuan-denominated shares traded in China, was driven by gains in chemical materials, high-end manufacturing and healthcare stocks. It avoided large cap stocks most popular with foreign investors in the yuan shares market.

 

Large companies, including blue-chips and leaders of small industries, may outperform small and mid-cap stocks over the next three years as large companies gain share when China’s slowing economy spurs industry consolidation.

 

 

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MMG Sold its Nickel Mine in Tasminia for $25 Million to Dundas Mining

MMG has completed the sale of its Avebury nickel mine in Tasmanian to Dundas Mining for $25 million.

The Avebury mine, located 8km west of Zeehan in Tasmania’s West Coast has been in care and maintenance since 2009. MMG is confident that the sale will reinvigorate the Zeehan area, by providing new jobs and economic benefit to the region. 

 

The Tasmanian Government welcomed the sale and the resources minister Guy Barnett said it showed a positive sign of growing confidence in the state’s resource sector. 

MMG remains committed to Tasmania through its Rosebery operation and will continue to make social and economic contributions to the state and West Coast region. 

Dundas Mining is a privately owned exploration and mining development company based in Tasmania and their commitment to bringing the Avebury operation back into production as soon as possible is.

He added that jobs are the state government’s main priority and looks forward to the restart of the mine to create more employment.

 

 

 

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U.S Market Data Glitch Causing Stock Prices Crashing

The prices of several big name Nasdaq listed stocks appeared on some websites to either spike or plummet, seemingly due to a glitch related to the market data that runs the largely automated markets.

The prices of Amazon Inc and Microsoft Corp stocks appeared to have lost more than half their value, while Apple Inc shares appeared to more than double. 

Google parent Alphabet Inc and eBay Inc shares were among others that all appeared to be priced at $123.47 on some financial news websites on Monday evening.

According to Nasdaq,  the actual prices of the stocks were not affected and no trades were completed at that price.

They were now investigating the improper use of test data distributed by third parties. Prices on Nasdaq's website were not affected.

 

Nasdaq and other U.S. stock exchanges closed early on Monday ahead of the U.S. Independence Day holiday on Tuesday.

Testing of stock exchange software is mandated by the U.S. Securities and Exchange Commission and happens on a regular basis to help prevent electronic glitches, often using test symbols and historical data.

 

 

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Emmerson and Evolution Mining will Begin its Gold Production in Northern Territory AU

Emmerson Resources will open its new gold mine with the Australian gold producer Evolution Mining in Northern Territory. The company announced that the local government in NT granted the final approvals for Edna Beryl gold mine to begin its production.

According to the managing director of Emmerson, the commencement of production at Edna Beryl is a pivotal step since Emmerson began its exploration in the Tennant Creek Mineral Field back in 2008.

 

In the said agreement, Evolution is funding $15 million in exploration by the end of the year in order to earn a 65% interest in the project with an option to earn an additional 10% over the next two years through a $10 million commitment.

The mine is being developed in cooperation with the NT government, which is conducting a feasibility study into establishing a mill at Tennant Creek which could lead to the mine's expansion. The first 600 tonnes of development ore averaged grades of 40 grams per tonne, which would make the mine high grade. 

Mining at Edna Beryl East will be undertaken by the Edna Beryl Mining Company under a tribute agreement. It says the underground mine will start small but has exploration upside. The agreement relates to a 3D envelope around the shallow mineralisation. 

Drilling last year extended the mineralisation beyond this 3D envelope, opening up the possibility of either expanding the current mining area or if the next round of drilling is successful, contemplating a larger scale of development.

 

Emmerson's stock price has risen 7.53% in the last 5 trading days since the announcement, compared to a year to date loss of 23.08% on the ASX.

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Australian Shares Edges Lower Amid Mixed Economic Data

The Australian stock market is edging lower today with investors treading cautiously ahead of the release of a raft of local and international economic data today.

In late morning trades, the benchmark S&P/ASX 200 Index is dropping 0.10%. The broader All Ordinaries Index is down 0.08% to 5,759.30. Among the major miners, BHP Billiton is plunged almost 1%, while Rio Tinto is up 0.2% and Fortescue Metals is adding 0.6%.

 

Oil stocks are also mostly higher after crude oil prices rose on Friday for a seventh straight session. Woodside Petroleum is adding 0.2% and Santos is advancing more than 1 percent, while Oil Search is lower by almost 1%.

Gold miners are mixed after gold futures extended monthly losses. Newcrest Mining is rising almost 1%, while Evolution Mining is down 0.6%.

The big four banks are also advancing. Commonwealth Bank, National Australia Bank and Westpac are up in a range of 0.2% to 0.9%. ANZ Banking is edging down less than 0.1%. 

In the currency market, the Australian dollar is higher against the U.S. dollar. In early trades, the local unit was trading at $0.7691, up from $0.7678 on Friday.

 

In economic news, the latest survey from the Australian Industry Group revealed that the manufacturing sector in Australia continued to expand in June and at a faster rate with a Performance of Manufacturing Index score of 55. That's up from 54.8 in May and it moves farther above the boom or bust line of 50 that separates expansion from contraction.

Australia will also see the inflation forecast from TD Securities, job ads from ANZ and the commodity price index from the Reserve Bank of Australia plus May figures for building approvals today.

 

 

 

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Nasdaq Indexes Plunged Sharply

Nasdaq indexes plunged sharply causing Wall Street a massive declined overnight of 1.61%. The benchmark S&P 500 posted its biggest one day drop in about six weeks and closed at its lowest point since last month of 0.81%, Dow Jones Industrial Average fell 0.46% and  The Russell 2000 of small company stocks dropped 0.9%.

Technology stocks led a broad slide in U.S. stocks after a day of mostly choppy trading. Phone and utilities companies were among the big decliners after a sell off in bonds sent yields sharply higher. 

Computer memory maker Seagate Technology gave up 6.8%, while semiconductor manufacturer Advanced Micro Devices slid 4.8%, Netflix also fell, losing 4.1%.

Alphabet, Google's parent company, slid 2.5% after the European Union mandate the online search giant with a $2.7 billion fine. The EU alleges that the company breached antitrust rules with its online shopping service. Alphabet said it is considering an appeal. 

 

Bond prices fell. The 10-year Treasury yield rose to 2.20 percent from 2.13 percent late Monday. The bond sell off was triggered early Tuesday as investors reacted to remarks from European Central Bank President Mario Draghi, who expressed optimism over the future of the economy of the 19 country eurozone. 

And while Draghi did not say the ECB was ready to rein back its stimulus measures, investors took his remarks as a hint that a change of policy could be coming in the next few months.

 

 

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DAX Lifted as IFO Business Climate Index in Germany Hits New Record

DAX climbed as IFO business climate index in Germany hits new record high. Currently trading at 12,837.25 points, up 0.83%. Commerzbank and Deutsche Bank have posted strong gains of 2.35% and 1.24% respectively. German Ifo Business Climate improved to 115.1, above the estimate of 114.6. 

The robust German economy has earned an approval from the business sector. The indicator has improved for five consecutive months, pointing to stronger optimism among German businesses. 

 

Ifo's two sub indices both beat forecasts, with the measure of current economic conditions rising to 124.1 in June from a revised 123.3 and the gauge of expectations improving to 106.8 from 106.5.

The Business Climate Index is based on ca. 7,000 monthly survey responses from firms in manufacturing, construction, wholesaling and retailing. In June, the index of manufacturing rose slightly. In wholesaling the business climate improved for the third month in succession to reach its highest level since December 2010. 

The index in retailing also improved notably. Retailers' optimism about the short-term business outlook reached its highest level since September 2015.But the index in construction fell.

Contractors marginally scaled back their assessments of the current business situation and business expectations, which nevertheless remain at a high level.

 

Major economic institutes and the German central bank have revised upwards their forecast for German growth in 2017 and 2018. German GDP grew 0.6% in the first quarter and has been the locomotive which has boosted growth in the eurozone. 

Analysts are closely monitoring how the ECB plans to respond to stronger economic conditions in the euro zone. The central bank has dismissed calls to tighten monetary policy, saying that it will not make any moves until inflation moves closer to the ECB's target of 2.0%. 

 

 

 

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Australian Stocks Jumped 0.6% Higher in Early Trade

Australian stocks, ASX 200 index climb 0.6% higher in early trade. With more than three quarters of the top 200 names are on rally, the uplift is spread across all sectors. 

Notable is a 6.4% jump in Metcash after the independent grocery wholesaler reported upbeat annual profits. Wesfarmers and Woolies, which are both up around 0.8%.

Major banks are up a uniform 0.5% and miners are also enjoying support, ticking off two major components of the market. CSL and Telstra are also higher.

The Australian dollar launched a spirited recovery after four days of losses. Prices moved inversely of front end US Treasury yields and alongside an advance in gold, hinting that soft US PMIs weighed against Fed rate hike bets that bolstered the relative appeal of the higher-yielding Aussie. 

More of the same may be on tap this week as data flow continues to undermine the case for further tightening but external political jitters remain a potent downside risk. 

 

 

 

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Banking Stocks Traded Lower as State Gov. Announced New Tax on Big Banks

Australian Markets traded sideways today. The S&P/ASX 200 edged higher by 0.06%, buoyed by gains in its health care and telecommunications sub indexes which were up 1.03% and 1.25% respectively. Australian financials remained under pressure, with the sub-index edging lower by 0.58%.

Banking stocks traded mostly lower after the South Australia government announced a new tax on the nations big banks. Shares of ANZ declined 0.93% and NAB fell 0.95%. Westpac gave up earlier gains to trade 0.05% lower.

 

Losses in the banks were higher in the first minutes of trade, showing that the reaction may be overdone. The overall impact of the tax on the banks earnings is likely to be negligible but investors are worried about the possibility of other states introducing similar taxes.

In general terms this serves as a reminder that Australian shareholders generally and bank shareholders in particular, are in a period of heightened political risk that needs to be factored into investment decisions.  

The Australian dollar is hovering near more than a week lows at 75.53 cents in four straight sessions. It has also been pressured by an interest rate hike in the United States this month, while the RBA has made it clear it is in nor rush to tighten monetary policy. 

Also narrowed the rate differential between the two to plus 25 basis points, with some traders speculating the spread might turn negative if the US Federal Reserve continues to tighten further. 

 

 

 

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Domestic Equities in China will Join MSCI's Global Benchmark Indices

Domestic equities in China will join MSCI’s benchmark indices. The decision, announced by the New York based index compiler. A move that should help the capital market of the world’s second largest economy edge towards becoming more globally integrated. 

After three failed attempts, it has finally succeeded and it will give China’s $6.9 trillion stock market a bigger role in everything. The Emerging Markets Index previously excluded mainland traded stocks due to concerns about restrictions on purchases by overseas investors and flawed rules in listed companies trading suspension. The gauge currently only includes shares of Chinese companies listed in Hong Kong or the US.

 

According to the index compiler, China’s A shares will initially represent a 0.73% weighting in the MSCI Emerging Markets Index and the weighting could increase further over time if China implements more changes in its market reform. 

The full inclusion of domestic Chinese stocks in the widely tracked MSCI Emerging Markets Index could pull more than $400 billion of funds from asset managers, pension funds and insurers into mainland China’s equity markets over the next decade.

MSCI made its decision after the Chinese regulators made it easier for foreign investors to access mainland equities through the two Stock Connect trading links between Hong Kong and Shanghai/Shenzhen and restricted the number of trading suspensions by listed companies. 

It had ejected inclusions over the past three years, citing concerns including capital controls and listed company abuse of the trading halt rules. 

 

However, months ago the MSCI moved to relax its investment criteria by cutting the number of stocks to 169 from 448 in a bid to address curbs on repatriating capital from China and concerns over the country’s high number of suspended stocks.

The revised proposal helped address these issues because the 169 stocks can be easily accessed by foreigners through the “Stock Connect” link launched in 2014 and significantly expanded in December.

MSCI said it planned to add the 222 stocks and will begin a review of the A-shares and include them in provisional indices beginning in August.

 

 

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Asian Stocks Gain Higher, Set for a Strong Week

Asian markets gain higher during opening, the dollar climbed above 111 yen Monday after Japan posted a surprise trade deficit for May.

The Nikkei Stock Average was up 0.6% in early trade, with a softer yen aiding a move back above 20,000 points. Australia’s S&P/ASX 200 was up 0.5%, Korea’s Kospi SEU 0.6% and Hong Kong’s Hang Seng Index gained 1%.

 

 

In Japan, economists had expected a modest trade surplus for May. Instead, the country reported its first deficit since January. Still, local stocks shrugged off the report as the exports data in Japan continue to reinforce the growth story for Japan’s economy.

Japan’s exports increased 14.9% for May from a year earlier, the biggest rise since January 2015, marking the sixth consecutive month of increases. But the figure came in lower than an 18.2% increase expected by economists.

Asian market could find index provider MSCI's annual market classification review a key event to follow. MSCI will decide tomorrow whether to include a group of China A-shares in its main emerging market index.

If approved, it would give investors easier access to the China markets, create more liquidity for the shares and prompt funds all over the world to pour billions into the country's stocks. For China, acceptance by MSCI would mark a key step for Beijing as it seeks to open up its financial markets and attract foreign capital. 

 

While, oil prices pulled back in Asia after ending in positive territory last week. July Nymex was down 0.3% at $44.60 a barrel, while August Brent fell 0.2% to $47.25.

 

 

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Tech Stocks in U.S have Tumbled Sharply

US tech stocks slid again overnight as investors continued a recent move away from the year’s best performing sector. Bearish analyst reports on the two tech titans contributed to the latest bout of selling. Both the S&P 500 and Nasdaq Composite fell, though tech shares pared some of their early losses into the close.

The declined follows the worst two day drop for the sector in nearly a year. But tech remains up 17% this year, almost twice the 8.7% rise for the overall S&P 500.

Shares of Google’s parent Alphabet closed down 0.8% as Canaccord Genuity downgraded its rating of the stock to hold from buy. Eventually, the downgrade triggered a broader tech selloff.

Apple shares ended 0.6% lower, paring earlier sharper losses. Microsoft declined 0.5% overnight, Facebook dropped 0.3% each also pared sharper early losses. 

Snap Inc who held its initial public offering earlier this year has dropped 4.9%. While the tech sector has fallen 4% in the past week, the overall S&P is only off about 0.2 percent.

 

 

 

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Stock Market in Australia Extends Rally

Australian stock market is higher today, extending gains from the previous session, following the positive lead overnight from Wall Street. In mid-day trades, the benchmark S&P/ASX 200 Index is adding 24.90 points or 0.43% to 5,797.70, off a high of 5,804.80. The broader All Ordinaries Index is rising 25.20 points or 0.43% to 5,827.00.

The AUD is lower against the U.S. dollar today after iron ore prices fell sharply. In early trades, the local unit was trading at US$0.7537, down from US$0.7550 on Tuesday. 

Gold miners are also advancing. Newcrest Mining is adding 0.4 percent and Evolution Mining is rising more than 1 percent. The major miners are mostly lower amid the sharp fall in iron ore prices. 

BHP Billiton is adding 0.7 percent, while Rio Tinto is losing 1 percent and Fortescue Metals is lower by more than 1 percent.

Among oil stocks, Oil Search is up 0.6 percent and Woodside Petroleum is rising 0.3 percent, while Santos is declining almost 1 percent. 

 

Westpac Bank revealed that consumer confidence in Australia ebbed again in June, as its index slipped 1.8 percent to a score of 96.2. That follows the 1.1 percent decline in May to 98.0. 

The index has declined in three straight months and continues to rest beneath the break-even line of 100 that separates optimists from pessimists.

 

Nevertheless, investors are cautious ahead of the release of Chinese economic data and the Federal Reserve's monetary policy decision later in the day. 

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DAX Index Closes Trade at 0.59% Higher

DAX index has closes trade at 0.59% higher. The index is currently at 12,757.75 points. On the release front, German ZEW Economic Sentiment dipped to 18.6, missing the forecast of 21.6 points. Eurozone ZEW Economic Sentiment improved to 37.7, beating the estimate of 37.2 points. In the US, the Federal Reserve is expected to increase interest rates by a quarter-point.

European stock markets were slightly lower on yesterday, as a result of sharp losses on the Nasdaq, which dropped 1.8% on last week session. Major technology stocks were all down by more than 3 percent. Key German financial stocks responded with losses, notably Deutsche Bank and Commerzbank.

The best performers of the session on the DAX were Lufthansa which rose 3.00% or 0.550 points to trade at 18.875 at the close. 

The worst performers of the session were Beiersdorf which fell 0.69% or 0.660 points to trade at 94.780 at the close. Deutsche Telekom declined 0.44% or 0.075 points to end at 16.880 and Henkel & Co was down 0.36% or 0.45 points to 124.65. 

DAX volatility index, which measures the implied volatility of DAX options, was down 6.39% to 12.60.

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Latest in Stocks

ASX 200 (5741, 1.1%) is up 63 points as it continues to push higher into late arvo trade. 

Its going from strength to strength today after defying the early pointer from futures trading that suggested the recent sell-off in tech stocks on Wall Street would send the local index lower.

 

Dow (21235.67, -0.17%) is slowly inching up towards 21600 and could possibly test 21400 on the upside this week. Support remains at 21000 and while the index is trading above 21000, the trend remains bullish.

 

Dax (12690.44, -0.98%) fell sharply yesterday instead of breaking above 12850. We could possibly see some trade within the 12650-12850 region in the near term before testing 13000.

Shanghai (3138.67, -0.04%) has enough scope on the upside towards 3160-3170 for the next couple of sessions.

 

Nikkei (19885.72, -0.11%) is holding above 19825 and could move up towards 20000 in the coming sessions. Near term looks bullish.

 

Nifty (9616.40, -0.54%) has been fluctuating within the 9700-96500 region and could possibly continue to do so for some more sessions. 

Immediate support is seen near 9600 which could extend to 9550 on the downside. Overall the index could be ranged sideways before rallying to higher levels.

 

 

 

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Global Stocks Update

Dow (21136.23, -0.23%) came off from resistance near 21230 and may test 21000 on the downside before bouncing back towards 21300 and higher in the medium term. Near term could see some consolidation or a corrective dip but overall long term looks bullish.

 

Dax (12690.12, -1.04%) is also in a short correction mode and could rise back soon towards 13000.Downside could be limited to 12600 just now.

 

Shanghai (3127.91, +0.83%) has risen sharply breaking the immediate resistance near 3120 instead of testing lower levels of 3050 as mentioned yesterday. 

While the index sustains levels above 3120, it could move higher towards 3170 else a re-test of 3070 is possible.

ASX (5644.7, -0.4%) on track for a fourth straight session in the red and a fall of more than 5 per cent since its recent high at the start of May.

 

Nikkei (19936.42, -0.22%) Resistance near 20200 has held well for which fell sharply in the last 2-sessions. 

It could test 19820 in the next 2-sessions before again bouncing back from there.

 

Nifty (9637.15, -0.39%) is in a corrective mode now and could extend losses to an extent of 9600-9550 levels. 

Thereafter a rise back towards 9700-9800 is possible in the near term.

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Berkshire Hathaway Acquired 200 Million Stakes in Lanxess AG

Berkshire Hathaway acquired a $200 million stakes in Lanxess AG. Lanxess shares jumped 2.9 percent to 65.06 euros by 0936 GMT after the news, even though the stock was trading without the rights to a 0.70 euro/share dividend for the first time.

In a regulatory filing, Lanxess said that Berkshire Hathaway’s General Reinsurance subsidiary took a stake that reached just over 3 percent on May 19. The shares held by General Re  whose total financial investments excluding cash holdings stood at about $22 billion at the end of last year, were worth about 180 million euros ($200 million) at that time.

General Re’s stake in Lanxess crossed the 3 percent threshold after Lanxess on May 11 beat consensus estimates for first-quarter earnings on strong sales of engineering plastics and synthetic rubber, but the company warned at the time that demand would soften later this year. 

Shares in Lanxess, a former unit of Bayer whose products include pesticide ingredients, construction pigments and leather chemicals, earlier this month reached four-year highs. The company has said that after recent acquisitions worth a combined 2.6 billion euros more strategic steps could be in the offing in the second half of the year.

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Stocks in USA Dropped Further

U.S. stocks dropped after JP Morgan and Bank of America warned of revenue weakness, offsetting gains in defensive plays.

JPMorgan blamed lower volatility for a 15 percent decline in trading revenue in the current quarter compared with last year, while Bank of America said trading revenue in the second quarter was on track to be 10 to 12 percent lower than last year.

 

Financials .SPSY rallied more than 20 percent in the wake of the U.S. presidential election on hopes of fiscal stimulus and deregulation under President Donald Trump, but they have struggled in recent weeks. The sector is now down 0.3 percent on the year.

Measures of market volatility are at rock-bottom, hitting trading desks at big banks. The U.S. stock market's main gauge of investor anxiety .VIX closed at its lowest level in over two decades on May 8 and has not topped its long-term average of 20 since November. It did, however, hit a seven-day high of 11.30 on Wednesday.

JPMorgan shares lost 2.1 percent while Bank of America was down 1.9 percent as the two biggest weights on the S&P 500. Goldman Sachs fell 3.3 percent, the biggest drag on the Dow. 

Energy stocks down 0.4 percent, also lost ground. Oil prices touched a three-week low as rising output from Nigeria and Libya fueled concerns that OPEC-led output cuts are being undermined. U.S. crude settled down 2.7 percent at $48.32 a barrel and Brent settled 3 percent lower at $50.1.

 

Dow Jones Industrial Average fell 20.82 points, or 0.1 percent, to 21,008.65, the S&P 500 lost 1.1 points, or 0.05 percent, to 2,411.81 and the Nasdaq Composite dropped 4.67 points, or 0.08 percent, to 6,198.52.

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Global Stocks Update

Dow (21080.28, -0.01%) was closed yesterday. As mentioned yesterday, 21200 is an important resistance for the near term. 

In case it breaks on the upside, the index could rally towards 21400-21600 else a fall back towards 21100 is possible in the coming sessions.

 

Dax (12628.95, +0.21%) is stable and may continues to remain sideways within 12800-12400 (broad region of trade for at least this week.

Shanghai (3110.06, +0.07%) looks bullish in the near term towards 3170. A small dip to 3070 is also possible before the index starts to rise higher.

 

Nikkei (19576.19, -0.54%) seems to be confused on which direction to take. Immediate movement within 19500-20000 is possible but only if it breaks on either side, can we confirm on further direction. 

For now, some sideways consolidation is possible.

 

Nifty (9604.90, +1%) has been rising in line with our expectation. 9700-9800 is on the cards for medium term.

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Global Market Review

Asian equity futures open to a mixed start today. Hong Kong is on holiday and markets in China are shut for a second day after the U.K. and U.S. were closed Monday, depressing volumes and limiting price movements

South Africa’s rand declined for a second day after President Jacob Zuma survived a bid by some members of his party to oust him.  Italian assets fell as former Prime Minister Matteo Renzi raised the prospect of an early election.

The key challenge for investors remains gauging the ability of the world’s economy to withstand rising borrowing costs. Despite the record highs posted by global equities, the rally in bond markets suggests traders are cautious. 

Fed Bank of San Francisco President John Williams reaffirmed his view that a total of three interest-rate increases makes sense for the world’s biggest economy this year.

 

Main Market  Movers:

  • The euro fell 0.2 percent to $1.1138 as of 7:41 a.m. in Tokyo. The yen was flat at 111.25 per dollar.
  • Gold was down 0.1 percent at $1,267.36 an ounce.
  • Treasury 10-year futures were at 126 1/4, up 2/32, after the market was closed Monday. The yield on 10-year Treasuries was 2.25 percent at the end of last week.
  • The rand fell 0.2 percent to 12.9959 per dollar, adding to the previous session’s 0.6 percent decline.
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Crude Oil Plummeted Sharply

 

Crude oil prices plummeted to below $50 a barrel after an extension to a global output agreement disappointed investors looking for more.

The Organization of Petroleum Exporting Countries (OPEC) reportedly have agreed on a nine-month extension to a production cut agreement, which was set to expire at the end of June.

 

Stocks in Tokyo and Sydney opened lower, with energy producers dropping the most. Oil held losses after falling the most in three weeks as OPEC stuck to the most predictable outcome in its plans to limit production.

Commodity currencies maintained losses against the dollar. The S&P 500 Index reached a fresh record on Thursday while the U.S. currency strengthened as retailer results boosted confidence in the American consumers’ ability to buoy economic growth.

 

Global equities are on course for the best week since April, trading at a record high after six weeks of gains, as investors bet global economic growth can withstand higher U.S. interest rates as soon as next month.

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Markets And You explains What are Stock Indices?

What are Stock Indices?
A stock index is a statistical indicator measuring the combined value of underlying stocks within a particular index. Simply put, stock indices worldwide will move either low or high depending of the financial situation acted upon by investors in reaction to a serious of factors. Factors may include an important company announcement about a new product launch, financial results, political situations, internal company structure changes or economic announcements. A significant change in any one stock within a particular index group will reflect in the overall value of that index.
Australian Index Trading analysis company Markets And You Pty Ltd track these important announcements and directions of individual stocks. That information provides us with the bigger picture to the direction the group of stock indices will move as a whole. This direction is then provided in real time to our clients.
Types of Indices
Stock market indices may be classed in many ways, a global or world stock market index includes companies within the location they are traded or located. A national index signifies the performance of the stock market of a given country and reflects investor attitude of the performance of its economy. The most represented market indices and nation indices are composed of stocks of giant companies listed on the nation’s big stock exchanges such as the American S&P 500, the Japanese Nikkei 225, the British FTSE 100, and our own ASX 200. Markets And You for like to point out that sometimes the most popular Indices are not the best ones to trade upon for most profitable results.
Markets And You Preferred Indices
Through years of research Markets And You have developed best trading systems that have indicated which are the most reliable markets to trade. These markets include the
• XJO (Australian Stock Exchange) – ASX 200. Otherwise known as the Australian Securities Exchange (ASX) is the primary stock exchange in Australia.
• IBEX (Spanish Stock Index) – IBEX 35. This is the IBEX 35 (an acronym of Iberia Index) it’s the benchmark stock market index of the Bolsa de Madrid, Spain's principal stock exchange.
• BEL20 - Belgian Stock Index. The BEL20 is the major stock market index of Euronext Brussels.
• CAC – (Paris - French Stock Exchange – CAC40). The CAC 40, is a French stock market index.
You can view all Markets And You other preferred markets on their website www.marketsandyou.com

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Stock Market Indices explained by Markets And You

Stock Market Indices explained by Markets And You - A typical successful FALLS trade.

Before getting started with Index Trading, you need to understand the basics of "what are Stock Market Indices?"

If you don’t know this terminology or understand how to define a Trade Index, then starting to trade the market will become like flipping a coin or even worse like choosing the red or black on the roulette table at the casino after you have had a few to many drinks. Chances are not good.

To help you get started with trading the market, specifically Index Trading, it is best to understand the terminology and how it fits into the big picture of the stock market.

Below are 5 short descriptions to help understand ‘what are Stock Market Indices explained by Markets And You.

1. Indices is the plural for an Index. An Index is the term used for a group of stock market publicly listed uppermost businesses within a region.
2. There are numerous Stock Market Indices within the world. Index Trading company, Markets And YOU focuses on analysing the following leading Indices: The Australian Index (ASX 200); The UK Index (FTSE100); The French Index (CAC40); The Dutch Index (AEX); The German Index (DAX), The Spanish Index (IBEX), The Euro 100 Index (EURO100), The Swiss Index (SMI), The Euro 50 Index (EURO50) and The Belgian Index (BEL20) just too name a few.
3. An Index will rise or fall as the average of all shares within this group change in value. This is called an Index indicator.
4. You never actually own an Index (as you would a stock), you can only ever take a ‘position’ on a particular Index, whether it will either RISE or FALL.
5. Taking a position on a Stock Market Index is a form of Binary Options trading.

Traditionally, the investors purchase the asset they invest in and the value of the profit and loss is determined upon the changing value of the purchased asset.

 

$10 10% $11

  Trade Amount      Direction        Percentage Gain                  Total Return on investment

 

In comparison - Index Trading allows you to profit from any Country’s stock market movement no matter if that market RISES or FALLS in value over any specific time period. This unique type of trading enables you to trade and profit in ALL market conditions. In addition to this, the ROI (Return on Investment) per trade is much higher and achieved much faster (usually over a 1-hour period) when compared to traditional Stock Market trading methods.

 

$10 88% $18

  Trade Amount          Direction          Percentage Gain                    Total Return on investment

 

If you intend to start Trading Stock Market Indices, do it with the assistance of an experienced trader and start learning how to trade an Index that is easy to follow. This may include a choosing a popular Index that is common to your own time period and will fit into your own schedule.
This way, whether you are working or retired you can still find the time to listen to your trainer and better understand how to place the trade. Never make an uneducated prediction based off old or non-interactive charts.
Trading Stock Market Indices needn’t be a tedious task.

Taking small steps will help you see positive results and your trading account rise. Limit the stress and risk by learning from an expert trading team such as Markets And YOU.

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