koeksGHT
Dealer
I would wait a week. If the shutdown is still in effect at that stage, then buy, buy, buy!
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US Government shutdown and Dollar
- Thread starter Drifter
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LazyLion
King of de Jungle
US Budget Showdown weighs hard on Markets
Stocks took a pounding Monday as the partial shutdown of the U.S. government entered a seventh day and lawmakers appeared to be making little headway in raising the country's debt ceiling.
The U.S. has to raise its debt ceiling by Oct. 17. If it doesn't, the world's largest economy faces the possibility of defaulting on its debts, a move that would send shockwaves around the global economy and financial markets.
Though most analysts think a deal between Republicans in Congress and the White House to avoid default will be cobbled together in time, investors are fidgety - uncertainty discourages investors from buying into risky assets, such as stocks.
On Sunday, Republican House of Representatives Speaker John Boehner ruled out a vote on a straightforward bill to raise the government's borrowing authority without concessions from President Barack Obama before the deadline.
"As the partial shutdown of the U.S. government enters week two, there is little sign that the fiscal stalemate in Washington is being broken," said Neil MacKinnon, global macro strategist at VTB Capital. "Investors are on the sidelines until there is greater clarity or a last-minute resolution between the White House and the Republicans ahead of the debt ceiling deadline."
In Europe, the FTSE 100 index of leading British shares was down 0.9 percent at 6,393, while Germany's DAX fell 1.1 percent to 8.528. The CAC-40 in France was 1 percent lower at 4,124.
Wall Street was poised for further falls at the open with Dow futures and the broader S&P 500 futures down 0.9 percent.
The focus of attention in financial markets will likely remain on developments in the U.S. capital. Any comments from leading Republicans, such as Boehner, and President Barack Obama, could potentially be big market-moving events.
The dollar has also been on the defensive amid the budget fallout. It was struggling again Monday, with the euro up 0.1 percent at $1.3577 and the dollar 0.4 percent lower at 96.89 yen. Oil prices have drifted lower, and the benchmark New York crude rate was down another $1.20 at $102.64 a barrel.
Earlier in Asia, Japan's Nikkei index tumbled by 1.2 percent to close at 13,853.32. Hong Kong's Hang Seng index dipped 0.7 percent to 22,973.95. Trading was nearly flat on South Korea's Kospi, which fell 0.1 percent to 1,994.42. China's markets were closed Monday for a public holiday.
Source : Sapa-AP /sdv
Date : 07 Oct 2013 13:37
Stocks took a pounding Monday as the partial shutdown of the U.S. government entered a seventh day and lawmakers appeared to be making little headway in raising the country's debt ceiling.
The U.S. has to raise its debt ceiling by Oct. 17. If it doesn't, the world's largest economy faces the possibility of defaulting on its debts, a move that would send shockwaves around the global economy and financial markets.
Though most analysts think a deal between Republicans in Congress and the White House to avoid default will be cobbled together in time, investors are fidgety - uncertainty discourages investors from buying into risky assets, such as stocks.
On Sunday, Republican House of Representatives Speaker John Boehner ruled out a vote on a straightforward bill to raise the government's borrowing authority without concessions from President Barack Obama before the deadline.
"As the partial shutdown of the U.S. government enters week two, there is little sign that the fiscal stalemate in Washington is being broken," said Neil MacKinnon, global macro strategist at VTB Capital. "Investors are on the sidelines until there is greater clarity or a last-minute resolution between the White House and the Republicans ahead of the debt ceiling deadline."
In Europe, the FTSE 100 index of leading British shares was down 0.9 percent at 6,393, while Germany's DAX fell 1.1 percent to 8.528. The CAC-40 in France was 1 percent lower at 4,124.
Wall Street was poised for further falls at the open with Dow futures and the broader S&P 500 futures down 0.9 percent.
The focus of attention in financial markets will likely remain on developments in the U.S. capital. Any comments from leading Republicans, such as Boehner, and President Barack Obama, could potentially be big market-moving events.
The dollar has also been on the defensive amid the budget fallout. It was struggling again Monday, with the euro up 0.1 percent at $1.3577 and the dollar 0.4 percent lower at 96.89 yen. Oil prices have drifted lower, and the benchmark New York crude rate was down another $1.20 at $102.64 a barrel.
Earlier in Asia, Japan's Nikkei index tumbled by 1.2 percent to close at 13,853.32. Hong Kong's Hang Seng index dipped 0.7 percent to 22,973.95. Trading was nearly flat on South Korea's Kospi, which fell 0.1 percent to 1,994.42. China's markets were closed Monday for a public holiday.
Source : Sapa-AP /sdv
Date : 07 Oct 2013 13:37
LazyLion
King of de Jungle
US Stocks Tumble as Budget Impasse Continues
US stocks tracked international markets lower in opening trade Monday as the US budget stalemate entered its second week with the government partially shut down.
Five minutes into trade, the Dow Jones Industrial Average lost 134.22 (0.89 percent) at 14,938.36.
The broad-based S&P 500 sank 14.04 (0.83 percent) to 1,676.46, while the tech-rich Nasdaq Composite Index gave up 30.07 (0.79 percent) at 3,777.68.
There was no progress towards a resolution over the weekend, as Republicans and Democrats blamed each other for the standoff that forced a partial closure of the government since october 1.
Markets in Britain, France and Germany were all lower Monday, following losses in Hong Kong, Japan and Singapore.
"Clearly, there is still time to end the impasse, yet the lack of any semblance of progress in reaching a deal has created an unsettling backdrop to begin the week," wrote analyst Patrick O'Hare in Briefing.com.
Source : Sapa-AFP /sdv
Date : 07 Oct 2013 15:48
US stocks tracked international markets lower in opening trade Monday as the US budget stalemate entered its second week with the government partially shut down.
Five minutes into trade, the Dow Jones Industrial Average lost 134.22 (0.89 percent) at 14,938.36.
The broad-based S&P 500 sank 14.04 (0.83 percent) to 1,676.46, while the tech-rich Nasdaq Composite Index gave up 30.07 (0.79 percent) at 3,777.68.
There was no progress towards a resolution over the weekend, as Republicans and Democrats blamed each other for the standoff that forced a partial closure of the government since october 1.
Markets in Britain, France and Germany were all lower Monday, following losses in Hong Kong, Japan and Singapore.
"Clearly, there is still time to end the impasse, yet the lack of any semblance of progress in reaching a deal has created an unsettling backdrop to begin the week," wrote analyst Patrick O'Hare in Briefing.com.
Source : Sapa-AFP /sdv
Date : 07 Oct 2013 15:48
LazyLion
King of de Jungle
Markets cling to belief in US Debt Deal
Financial markets continue to take the prospect of a U.S. default in stride, even though a deadline to raise the country's debt ceiling is just hours away.
Most stock markets edged lower Wednesday - but not precipitously -following the previous day's retreat on Wall Street, when investors were spooked by a series of dramatic twists. Republicans in the House of Representatives abandoned a vote to temporarily increase the debt ceiling and Fitch warned that it could strip the U.S. of its triple-A rating even if a deal is cobbled together in time.
Unless Congress acts by Thursday, the government will lose its ability to borrow and will be required to meet its obligations by relying on cash in hand and incoming tax receipts. That could mean the U.S. is unable to repay holders of Treasury bills that mature in coming days, or that it could miss interest payments on longer-dated Treasurys, and would be in default on its debt.
Investors have been remarkably sanguine in recent days as they seem to expect a deal will eventually be agreed between Republicans in Congress and the White House because no politician wants to be blamed for a default.
"The financial markets continue to buy into claims on Capitol Hill that a deal on the debt ceiling will be done before tomorrow's deadline," said Craig Erlam, market analyst at Alpari.
In Europe, the FTSE 100 index of leading British shares was down 0.5 percent at 6,518 while Germany's DAX fell 0.2 percent to 8,791. The CAC-40 in France was 0.8 percent lower at 4,222.
Wall Street futures are pointing to a solid opening, with both Dow futures and the broader S&P 500 futures 0.4 percent higher.
The Senate now appears to have taken the initiative once again in trying to forge a deal. The expectation in the markets is that the Senate will agree on the deal and then send it to the House, where Republicans will have to make a decision that could seriously impact both their political futures as well as the wider economy.
Analysts said trading through the day could be choppy and nervous, especially if a deal is not forthcoming. In Europe, that could mean some volatility towards the end of the session.
"Providing there are no further developments by then, an aggressive sell in late afternoon trading could well take place," said Alastair McCaig, market analyst at IG.
Earlier in Asia, Japan's Nikkei 225 rose 0.2 percent to close at 14,467.14 while Hong Kong's Hang Seng dropped 0.5 percent to 23,228.33. China's Shanghai Composite fell 1.8 percent to 2,193.07. Australia's S&P/ASX 200 added 0.1 percent to 5,262.91.
The mood outside stock markets was fairly cautious too. Among currencies, the euro was up 0.1 percent at $1.3531 while the dollar rose 0.1 percent to 98.37 yen. In the oil markets, a barrel of benchmark New York crude was up 20 cents at $101.41 a barrel.
Source : Sapa-AP /sdv
Date : 16 Oct 2013 12:33
Financial markets continue to take the prospect of a U.S. default in stride, even though a deadline to raise the country's debt ceiling is just hours away.
Most stock markets edged lower Wednesday - but not precipitously -following the previous day's retreat on Wall Street, when investors were spooked by a series of dramatic twists. Republicans in the House of Representatives abandoned a vote to temporarily increase the debt ceiling and Fitch warned that it could strip the U.S. of its triple-A rating even if a deal is cobbled together in time.
Unless Congress acts by Thursday, the government will lose its ability to borrow and will be required to meet its obligations by relying on cash in hand and incoming tax receipts. That could mean the U.S. is unable to repay holders of Treasury bills that mature in coming days, or that it could miss interest payments on longer-dated Treasurys, and would be in default on its debt.
Investors have been remarkably sanguine in recent days as they seem to expect a deal will eventually be agreed between Republicans in Congress and the White House because no politician wants to be blamed for a default.
"The financial markets continue to buy into claims on Capitol Hill that a deal on the debt ceiling will be done before tomorrow's deadline," said Craig Erlam, market analyst at Alpari.
In Europe, the FTSE 100 index of leading British shares was down 0.5 percent at 6,518 while Germany's DAX fell 0.2 percent to 8,791. The CAC-40 in France was 0.8 percent lower at 4,222.
Wall Street futures are pointing to a solid opening, with both Dow futures and the broader S&P 500 futures 0.4 percent higher.
The Senate now appears to have taken the initiative once again in trying to forge a deal. The expectation in the markets is that the Senate will agree on the deal and then send it to the House, where Republicans will have to make a decision that could seriously impact both their political futures as well as the wider economy.
Analysts said trading through the day could be choppy and nervous, especially if a deal is not forthcoming. In Europe, that could mean some volatility towards the end of the session.
"Providing there are no further developments by then, an aggressive sell in late afternoon trading could well take place," said Alastair McCaig, market analyst at IG.
Earlier in Asia, Japan's Nikkei 225 rose 0.2 percent to close at 14,467.14 while Hong Kong's Hang Seng dropped 0.5 percent to 23,228.33. China's Shanghai Composite fell 1.8 percent to 2,193.07. Australia's S&P/ASX 200 added 0.1 percent to 5,262.91.
The mood outside stock markets was fairly cautious too. Among currencies, the euro was up 0.1 percent at $1.3531 while the dollar rose 0.1 percent to 98.37 yen. In the oil markets, a barrel of benchmark New York crude was up 20 cents at $101.41 a barrel.
Source : Sapa-AP /sdv
Date : 16 Oct 2013 12:33
LazyLion
King of de Jungle
Relief around the world as US avoids debt default
The International Monetary Fund appealed Thursday to Washington for more stable management of the nation's finances as Asian stock markets rose after U.S. leaders agreed to avoid a debt default and end a 16-day government shutdown.
With only hours to spare until the $16.7 trillion debt limit was reached, Congress passed and sent a waiting President Barack Obama legislation Wednesday night to allow more government borrowing and reopen public agencies.
The debt standoff had rattled global markets and threatened to erode the image of U.S. Treasury debt as a risk-free place for governments and investors to store trillions of dollars in foreign reserves. Few expected a U.S. default but some investors sold Treasurys over concern about possible delayed repayment and put off buying stocks that might be exposed to an American economic downturn.
IMF managing director Christine Lagarde welcomed the deal but said the shaky American economy needs more stable long-term finances. The deal only permits the Treasury to borrow normally through Feb. 7 and fund the government through Jan. 15.
"It will be essential to reduce uncertainty surrounding the conduct of fiscal policy by raising the debt limit in a more durable manner," Lagarde said in a statement.
The Tokyo stock market, the region's heavyweight, gained as much as 1.1 percent Thursday. Markets in China, Hong Kong and South Korea also rebounded from losses.
Still, the congressional cliffhanger might dent longer-term confidence in American government debt, a cornerstone of global credit markets, prompting creditors to demand higher interest.
"With the U.S. government's antics, the risks go up, so the cost of money could go up too," said Nick Chen, managing partner of Taipei law firm Pamir Law Group.
Big Asian exporters including China and South Korea also faced the risk of a slump in global demand if a U.S. default had disrupted other economies.
Martin Hennecke, chief economist at The Henley Group, a financial advisory firm in Hong Kong, expressed exasperation at what he said was a failure by U.S. politicians to fix underlying budget problems in the world's biggest economy.
"It's just show business, to distract from real issues and keep the public busy with nonsense," said Hannecke. "What they should negotiate is how to make a bankruptcy negotiation of the United States, because they are broke. That's the issue. It's not about some stupid debt ceiling."
China and Japan, which each own more than $1 trillion of Treasury securities, appealed earlier to Washington for a quick settlement. There was no indication whether either government had altered its debt holdings. South Korea's government has $51.4 billion of Treasury securities while Taiwan has $185 billion.
Earlier, China's official Xinhua News Agency had accused Washington of jeopardizing other countries' dollar-denominated assets.
It called for "building a de-Americanized world," though analysts say global financial markets have few alternatives to the dollar for trading and U.S. government debt for holding reserves.
In Israel, a key American ally in the Middle East, commentators said the fight hurt America's overall image.
"There is no doubt that damage was done here to the image of American economic stability," Israel's economic envoy to Washington, Eli Groner, told Israel's Army Radio. "It's not good for the financial markets, not in the United States and not around the world."
China and other central banks might want to move assets into other currencies, said Hannecke. However, he said their dollar-based holdings are so huge they cannot sell without driving down prices.
Hennecke said he would advise clients to stop holding Treasurys.
"Why hold it?" he said. "There's no yield and inflation and interest rate risk are on the up."
Source : Sapa-AP /pk
Date : 17 Oct 2013 10:30
The International Monetary Fund appealed Thursday to Washington for more stable management of the nation's finances as Asian stock markets rose after U.S. leaders agreed to avoid a debt default and end a 16-day government shutdown.
With only hours to spare until the $16.7 trillion debt limit was reached, Congress passed and sent a waiting President Barack Obama legislation Wednesday night to allow more government borrowing and reopen public agencies.
The debt standoff had rattled global markets and threatened to erode the image of U.S. Treasury debt as a risk-free place for governments and investors to store trillions of dollars in foreign reserves. Few expected a U.S. default but some investors sold Treasurys over concern about possible delayed repayment and put off buying stocks that might be exposed to an American economic downturn.
IMF managing director Christine Lagarde welcomed the deal but said the shaky American economy needs more stable long-term finances. The deal only permits the Treasury to borrow normally through Feb. 7 and fund the government through Jan. 15.
"It will be essential to reduce uncertainty surrounding the conduct of fiscal policy by raising the debt limit in a more durable manner," Lagarde said in a statement.
The Tokyo stock market, the region's heavyweight, gained as much as 1.1 percent Thursday. Markets in China, Hong Kong and South Korea also rebounded from losses.
Still, the congressional cliffhanger might dent longer-term confidence in American government debt, a cornerstone of global credit markets, prompting creditors to demand higher interest.
"With the U.S. government's antics, the risks go up, so the cost of money could go up too," said Nick Chen, managing partner of Taipei law firm Pamir Law Group.
Big Asian exporters including China and South Korea also faced the risk of a slump in global demand if a U.S. default had disrupted other economies.
Martin Hennecke, chief economist at The Henley Group, a financial advisory firm in Hong Kong, expressed exasperation at what he said was a failure by U.S. politicians to fix underlying budget problems in the world's biggest economy.
"It's just show business, to distract from real issues and keep the public busy with nonsense," said Hannecke. "What they should negotiate is how to make a bankruptcy negotiation of the United States, because they are broke. That's the issue. It's not about some stupid debt ceiling."
China and Japan, which each own more than $1 trillion of Treasury securities, appealed earlier to Washington for a quick settlement. There was no indication whether either government had altered its debt holdings. South Korea's government has $51.4 billion of Treasury securities while Taiwan has $185 billion.
Earlier, China's official Xinhua News Agency had accused Washington of jeopardizing other countries' dollar-denominated assets.
It called for "building a de-Americanized world," though analysts say global financial markets have few alternatives to the dollar for trading and U.S. government debt for holding reserves.
In Israel, a key American ally in the Middle East, commentators said the fight hurt America's overall image.
"There is no doubt that damage was done here to the image of American economic stability," Israel's economic envoy to Washington, Eli Groner, told Israel's Army Radio. "It's not good for the financial markets, not in the United States and not around the world."
China and other central banks might want to move assets into other currencies, said Hannecke. However, he said their dollar-based holdings are so huge they cannot sell without driving down prices.
Hennecke said he would advise clients to stop holding Treasurys.
"Why hold it?" he said. "There's no yield and inflation and interest rate risk are on the up."
Source : Sapa-AP /pk
Date : 17 Oct 2013 10:30