12 Aug 2008 | 16:05
Asian Markets Slips In to Red After Arousing Start
The
stock markets across the Asian region closed lower after Wall Street
closed a volatile trading session with moderate gains overnight on the
back of a fall in crude oil prices. Oil finished the New York session
below $115, as fears of easing demand and a stronger dollar offset
concerns about the conflict between Russia and Georgia. In the Asian
session Tuesday, oil plunged further hovering around US$ 113 level.
The
U.S. market closed moderately higher after seeing considerable
volatility over the course of the trading session on Monday as oil
prices fell on concerns about weakening demand. The Dow closed up 0.4%
and the broader S&P 500 gained 0.7%, while the Nasdaq advanced 1.1%.
Crude
prices slid further today, even as Russia attacked a key strategic oil
pipeline in its battle with Georgia, as the International Energy Agency
forecast a steep drop in energy demand. Oil prices also fell as the
dollar hit a six-month peak against the euro, traders said. A stronger
US currency tends to dampen demand for dollar-denominated commodities
as they become more expensive for buyers holding weaker currencies.
London's
Brent North Sea crude for September delivery lost 1.56 dollars to
111.11 dollars per barrel in electronic trading on Tuesday. New York's
main contract, light sweet crude for September delivery sank US$ 1.35
dollars to 113.10.
The Russian airforce attacked a key oil
pipeline running through Georgia on Tuesday but there was no word yet
on whether it had been damaged, the secretary of Georgia's National
Security Council told AFP.
The International Energy Agency
raised its demand estimates in its latest monthly report expecting
world oil demand growth rose by approximately 60,000 barrels per day
(bpd) to 930,000 bpd in 2009 as consumption in non-OECD countries
increases, the International Energy Agency said today.
Compared
with its previous monthly report, it also nudged up its expectations
for demand in 2009 by 70,000 bpd to 87.8 million bpd and said its
outlook for 2008 was virtually unchanged.
In the currency
market, the U.S. dollar gained on expectations that the U.S. slowdown
was spreading to other economies. In early Tokyo deals, the dollar was
quoted in the lower 110-yen levels compared to upper 109-yen levels
late Monday. In South Korean local trade, the dollar opened lower at
1,030.0 won. The Australian dollar extended its losses for a tenth
consecutive trading session after opening lower at US$0.8838-0.8843.
The kiwi was trading weaker at US$0.6975 in early local deals.
The
Japanese market closed lower, as investors locked in profits following
a two-day winning streak. After opening weaker, despite a positive
finish on Wall Street overnight, the market made a vain attempt to move
into positive territory in the afternoon session. The benchmark Nikkei
225 index closed down 0.95% at 13,303.60 after advancing 2% in the
previous session. The broader Topix index closed down 0.7% at 1,271.42.
Among
economic data released today, wholesale price inflation jumped 7.1% in
July from a year ago. The Bank of Japan said that on a monthly basis,
the price of corporate goods rose 2.0%, sharply higher than the 0.8%
increase in June, which is also the forecast for July.
Market
remains cautious ahead of the release of Japan's second-quarter gross
national product data scheduled to release tomorrow. Traders are The
Japanese economy is expected to have contracted for the first time in
four quarters as the key growth drivers of exports, private consumption
and capital investment lost momentum.
In China, Shanghai-listed
stocks turned volatile closing lower for a third day, despite a
slowdown in July inflation. The benchmark Shanghai Composite Index shed
0.52% to finish at 2,457.20, its lowest closing level in 19 months.
Inflation slipped to 6.3% in July from 7.1% in the previous month.
However this a decline in consumer-level inflation could prove
temporary after the producer price index surged 10%, its highest rate
since 1996.
In another economic event, the actual foreign direct
investment (FDI) in China in the first seven months of this year
totaled US$ 60.724 billion, up 44.54% from a year earlier, the commerce
ministry said. There were 16,891 new foreign-funded enterprises formed
in the first 7 months of the year, down 22.15 pct from a year earlier,
according to a statement published on the ministry's website.
In
Hong Kong, the Hang Seng Index lost 1% to 21,640.89, after flirting
with gains earlier in the session, while the Hang Seng China
Enterprises Index gave up 1.7% to 11,445.55.
The Australian
market closed higher for a fifth day on Tuesday, recording the longest
winning streak in four months. The market started off weak, despite a
positive Wall Street lead, but moved into positive terrain following a
rebound in big miners in the afternoon session. The benchmark
S&P/ASX 200 index closed up 0.5% at 5,053.6 and the broader All
Ordinaries index gained 0.4% to finish at 5,090.3.
On the
economic front, the National Australia Bank's latest survey showed that
business conditions weakened to the lowest point in Australia in July
since the weeks after the September 11, 2001 terrorist attacks in the
U.S. The survey also showed that business confidence remained at the
lowest point since the 1991 recession.
The latest business
conditions score of -5 is below the zero level separating an expansion
from a contraction. The score has fallen by 25 points since reaching a
peak in October last year. The NAB's business confidence expectations
reading stood at -9 for July, a 17-year low for the second month in a
row.
The New Zealand market closed lower Tuesday, reversing
Monday's moderate gains. After a flat opening, the market was led lower
by top stocks Telecom and Fletcher Building. The benchmark NZX 50
closed down 0.49% at 3,353.63 and the broader NZX All Capital Index
lost 0.74% to finish at 3,347.80.
The Real Estate Institute of
New Zealand said that July house sales figures showed an unexpected
recovery. According to the Institute, the national median house price
remained the same as that for the previous month at NZ$340,000. Nine
out of twelve districts surveyed recorded increases in median prices.
The
South Korean market closed slightly lower amid worries that a
post-Olympics economic slowdown in China would hurt emerging markets.
The key index briefly gained ground in the afternoon session, rising
above the 1,590 mark, but failed to sustain momentum as investors
continued their selling spree. The benchmark KOSPI index closed down
0.25% at 1,577.12, ending a two-day winning streak.
The Indian
market is trading weak after opening slightly higher this morning. The
much-awaited data Index of Industrial Production (IIP) released today
afternoon showing the general index stands at 269.1, which is 5.4%
higher as compared to the level in the month of June 2007. The
cumulative growth for the period April-June 2008-09 stands at 5.2% over
the corresponding period of the pervious year
As per provisional
closing, the BSE 30-share Sensex was down 281.27 points or 1.81% to
15,222.65. At the day?s low of 15,124.91, the Sensex lost 379.01 in
afternoon trade. The index rose 75.86 points at day?s high of 15,579.78
at the onset of trading session. The S&P CNX Nifty provisionally
ended down 64.90 points or 1.40% to 4555.50.
Indonesian consumer
confidence rose in July after falling for eight straight months,
indicating that fewer respondents expressed pessimism about current
economic conditions and the economic outlook for Indonesia. According
to a central bank survey of 4,600 households in 18 cities across the
consumer confidence index rose to 82.1 points in July from 79.1 points
in June. However the Jakarta Composite plunged by 3.6% to 2,057.58.
Elsewhere,
Taiwan's Taiex shed 0.4% to 7,293.80 while Singapore's Straits Times
Index declined 0.3% to 2,816.82, after each of them changed direction
at least once during the session. In Malaysia the Kula Lumpur Composite
Stock exchange fell 0.77% to 1,118.78.
In the other part of the
world, the European markets broke there five-session winning streak,
with banks under pressure after UBS unveiled a second-quarter loss and
automakers giving back some strong gains made over the past week. The
German DAX 30 index fell 0.7% to 6,567.46.
The U.K. FTSE 100
index dropped 0.5% to 5,513.70 as U.K?s consumer price inflation marked
a fresh 16-year high in July, sharply accelerating to more than twice
the Bank of England's inflation target, data from the Office for
National Statistics showed.
Consumer prices climbed 4.4% on the
year, up from 3.8% in June and logging the third consecutive month that
inflation has been more than one percentage point above the Bank Of
England's 2.0% target.
The 4.4% annual gain in the CPI was the
largest since April 1992 based on a retrospective index and also the
biggest since the current series began in January 1997. The 0.6%
increase in the annual inflation rate in July marked the largest rise
since April 1991.
Consumer prices were flat on the month in
July, down from a 0.6% increase in June, but defied economists'
expectations of a 0.3% decline. The ONS said gains in food and
non-alcoholic beverage prices, which rose 12.3% in July, provided the
main stimulus for higher annual inflation. That increase marked a sharp
acceleration from a 9.5% gain in June, and was the highest since
records began in 1989.
Rising energy prices also provided
upward pressure, with average petrol prices increasing 1.2 pence to
118.8 pence a liter in July from June. Air transport prices also
surged, rising 8.9% after a 5.4% gain in June.
The core CPI,
which excludes energy, food, alcoholic beverages and tobacco, also
continued to rise more sharply last month, gaining 1.9% on the year.
That followed a 1.6% rise in June and was the highest rate since June
2007. In monthly terms, it fell 0.2%. Core annual inflation in July was
forecast at 1.7%.
In another worrying sign for policymakers,
the retail price index, which has historically been used as a guide for
pay settlements, rose 5.0%, marking its sharpest increase since July
1991. That followed a 4.6% rise a month earlier. In monthly terms, the
RPI fell 0.1%.
On the housing front there were further evidence
of the marked deterioration in the UK housing market; with government
data showing house price growth has slowed sharply from a year earlier.
The Department for Communities and Local Government (DCLG) found that
annual house price inflation fell to 0.6 percent in June from 3.0
percent in May. The average weighted house price, on a non-seasonally
adjusted basis, dropped to 215,029 pounds from 216,625 pounds in May,
the DCLG said.
In France, the French CAC-40 index lost 0.8% to
4,502.67. On the economic front, the consumer inflation eased on the
month in July as retailers cut prices for clothing in summer sales,
fresh food prices fell and energy prices rose moderately. According to
data from statistics office INSEE the consumer prices fell 0.3 percent
in July from the previous month but that left the year-on-year rate
unchanged at 4%.
The data in detail reveals prices for
manufactured goods were down 1.9 percent, with clothing and shoes
falling 9.5 percent, while fresh food products were 1.5 percent lower.
But
the data did not reflect the fall in crude oil prices over recent weeks
and overall energy prices, which have surged over the past year, were
up 0.2 percent on the month and 18.5 percent on the year. Processed
food products were up 0.3 percent on the month and transport and
communications costs rose 2.1 percent.
Looking ahead the day is
slated to release international merchandise trade balance for Canada,
which will be followed by the trade balance data from US. In the
evening we have July?s monthly budget statement, which will be followed
by ABC/ Washington post weekly consumer confidence. In the late evening
we have wholesale inflation data from New Zealand which will be
followed by series of economic event from Japan including the release
of GDP figure for second quarter.
Visit our site at – http://investorline.co.in/
Newsromm - http://newsroom.investorline.co.in/
Learning Center- http://learning.investorline.co.in/
Mutual funds - http://mutualfunds.investorline.co.in/
Life Insurance - http://insurance.investorline.co.in/
Investor Journal - http://research.investorline.co.in/
Latest News - http://investorline.co.in/blogger/?q=aggregator/categories/1
News Resources - http://investorline.co.in/blogger/?q=aggregator/sources
Newscatcher- http://catcher.investorline.co.in/
Newsgroups- http://groups.google.com/group/india-investor
Asian Markets Slips In to Red After Arousing Start
The
stock markets across the Asian region closed lower after Wall Street
closed a volatile trading session with moderate gains overnight on the
back of a fall in crude oil prices. Oil finished the New York session
below $115, as fears of easing demand and a stronger dollar offset
concerns about the conflict between Russia and Georgia. In the Asian
session Tuesday, oil plunged further hovering around US$ 113 level.
The
U.S. market closed moderately higher after seeing considerable
volatility over the course of the trading session on Monday as oil
prices fell on concerns about weakening demand. The Dow closed up 0.4%
and the broader S&P 500 gained 0.7%, while the Nasdaq advanced 1.1%.
Crude
prices slid further today, even as Russia attacked a key strategic oil
pipeline in its battle with Georgia, as the International Energy Agency
forecast a steep drop in energy demand. Oil prices also fell as the
dollar hit a six-month peak against the euro, traders said. A stronger
US currency tends to dampen demand for dollar-denominated commodities
as they become more expensive for buyers holding weaker currencies.
London's
Brent North Sea crude for September delivery lost 1.56 dollars to
111.11 dollars per barrel in electronic trading on Tuesday. New York's
main contract, light sweet crude for September delivery sank US$ 1.35
dollars to 113.10.
The Russian airforce attacked a key oil
pipeline running through Georgia on Tuesday but there was no word yet
on whether it had been damaged, the secretary of Georgia's National
Security Council told AFP.
The International Energy Agency
raised its demand estimates in its latest monthly report expecting
world oil demand growth rose by approximately 60,000 barrels per day
(bpd) to 930,000 bpd in 2009 as consumption in non-OECD countries
increases, the International Energy Agency said today.
Compared
with its previous monthly report, it also nudged up its expectations
for demand in 2009 by 70,000 bpd to 87.8 million bpd and said its
outlook for 2008 was virtually unchanged.
In the currency
market, the U.S. dollar gained on expectations that the U.S. slowdown
was spreading to other economies. In early Tokyo deals, the dollar was
quoted in the lower 110-yen levels compared to upper 109-yen levels
late Monday. In South Korean local trade, the dollar opened lower at
1,030.0 won. The Australian dollar extended its losses for a tenth
consecutive trading session after opening lower at US$0.8838-0.8843.
The kiwi was trading weaker at US$0.6975 in early local deals.
The
Japanese market closed lower, as investors locked in profits following
a two-day winning streak. After opening weaker, despite a positive
finish on Wall Street overnight, the market made a vain attempt to move
into positive territory in the afternoon session. The benchmark Nikkei
225 index closed down 0.95% at 13,303.60 after advancing 2% in the
previous session. The broader Topix index closed down 0.7% at 1,271.42.
Among
economic data released today, wholesale price inflation jumped 7.1% in
July from a year ago. The Bank of Japan said that on a monthly basis,
the price of corporate goods rose 2.0%, sharply higher than the 0.8%
increase in June, which is also the forecast for July.
Market
remains cautious ahead of the release of Japan's second-quarter gross
national product data scheduled to release tomorrow. Traders are The
Japanese economy is expected to have contracted for the first time in
four quarters as the key growth drivers of exports, private consumption
and capital investment lost momentum.
In China, Shanghai-listed
stocks turned volatile closing lower for a third day, despite a
slowdown in July inflation. The benchmark Shanghai Composite Index shed
0.52% to finish at 2,457.20, its lowest closing level in 19 months.
Inflation slipped to 6.3% in July from 7.1% in the previous month.
However this a decline in consumer-level inflation could prove
temporary after the producer price index surged 10%, its highest rate
since 1996.
In another economic event, the actual foreign direct
investment (FDI) in China in the first seven months of this year
totaled US$ 60.724 billion, up 44.54% from a year earlier, the commerce
ministry said. There were 16,891 new foreign-funded enterprises formed
in the first 7 months of the year, down 22.15 pct from a year earlier,
according to a statement published on the ministry's website.
In
Hong Kong, the Hang Seng Index lost 1% to 21,640.89, after flirting
with gains earlier in the session, while the Hang Seng China
Enterprises Index gave up 1.7% to 11,445.55.
The Australian
market closed higher for a fifth day on Tuesday, recording the longest
winning streak in four months. The market started off weak, despite a
positive Wall Street lead, but moved into positive terrain following a
rebound in big miners in the afternoon session. The benchmark
S&P/ASX 200 index closed up 0.5% at 5,053.6 and the broader All
Ordinaries index gained 0.4% to finish at 5,090.3.
On the
economic front, the National Australia Bank's latest survey showed that
business conditions weakened to the lowest point in Australia in July
since the weeks after the September 11, 2001 terrorist attacks in the
U.S. The survey also showed that business confidence remained at the
lowest point since the 1991 recession.
The latest business
conditions score of -5 is below the zero level separating an expansion
from a contraction. The score has fallen by 25 points since reaching a
peak in October last year. The NAB's business confidence expectations
reading stood at -9 for July, a 17-year low for the second month in a
row.
The New Zealand market closed lower Tuesday, reversing
Monday's moderate gains. After a flat opening, the market was led lower
by top stocks Telecom and Fletcher Building. The benchmark NZX 50
closed down 0.49% at 3,353.63 and the broader NZX All Capital Index
lost 0.74% to finish at 3,347.80.
The Real Estate Institute of
New Zealand said that July house sales figures showed an unexpected
recovery. According to the Institute, the national median house price
remained the same as that for the previous month at NZ$340,000. Nine
out of twelve districts surveyed recorded increases in median prices.
The
South Korean market closed slightly lower amid worries that a
post-Olympics economic slowdown in China would hurt emerging markets.
The key index briefly gained ground in the afternoon session, rising
above the 1,590 mark, but failed to sustain momentum as investors
continued their selling spree. The benchmark KOSPI index closed down
0.25% at 1,577.12, ending a two-day winning streak.
The Indian
market is trading weak after opening slightly higher this morning. The
much-awaited data Index of Industrial Production (IIP) released today
afternoon showing the general index stands at 269.1, which is 5.4%
higher as compared to the level in the month of June 2007. The
cumulative growth for the period April-June 2008-09 stands at 5.2% over
the corresponding period of the pervious year
As per provisional
closing, the BSE 30-share Sensex was down 281.27 points or 1.81% to
15,222.65. At the day?s low of 15,124.91, the Sensex lost 379.01 in
afternoon trade. The index rose 75.86 points at day?s high of 15,579.78
at the onset of trading session. The S&P CNX Nifty provisionally
ended down 64.90 points or 1.40% to 4555.50.
Indonesian consumer
confidence rose in July after falling for eight straight months,
indicating that fewer respondents expressed pessimism about current
economic conditions and the economic outlook for Indonesia. According
to a central bank survey of 4,600 households in 18 cities across the
consumer confidence index rose to 82.1 points in July from 79.1 points
in June. However the Jakarta Composite plunged by 3.6% to 2,057.58.
Elsewhere,
Taiwan's Taiex shed 0.4% to 7,293.80 while Singapore's Straits Times
Index declined 0.3% to 2,816.82, after each of them changed direction
at least once during the session. In Malaysia the Kula Lumpur Composite
Stock exchange fell 0.77% to 1,118.78.
In the other part of the
world, the European markets broke there five-session winning streak,
with banks under pressure after UBS unveiled a second-quarter loss and
automakers giving back some strong gains made over the past week. The
German DAX 30 index fell 0.7% to 6,567.46.
The U.K. FTSE 100
index dropped 0.5% to 5,513.70 as U.K?s consumer price inflation marked
a fresh 16-year high in July, sharply accelerating to more than twice
the Bank of England's inflation target, data from the Office for
National Statistics showed.
Consumer prices climbed 4.4% on the
year, up from 3.8% in June and logging the third consecutive month that
inflation has been more than one percentage point above the Bank Of
England's 2.0% target.
The 4.4% annual gain in the CPI was the
largest since April 1992 based on a retrospective index and also the
biggest since the current series began in January 1997. The 0.6%
increase in the annual inflation rate in July marked the largest rise
since April 1991.
Consumer prices were flat on the month in
July, down from a 0.6% increase in June, but defied economists'
expectations of a 0.3% decline. The ONS said gains in food and
non-alcoholic beverage prices, which rose 12.3% in July, provided the
main stimulus for higher annual inflation. That increase marked a sharp
acceleration from a 9.5% gain in June, and was the highest since
records began in 1989.
Rising energy prices also provided
upward pressure, with average petrol prices increasing 1.2 pence to
118.8 pence a liter in July from June. Air transport prices also
surged, rising 8.9% after a 5.4% gain in June.
The core CPI,
which excludes energy, food, alcoholic beverages and tobacco, also
continued to rise more sharply last month, gaining 1.9% on the year.
That followed a 1.6% rise in June and was the highest rate since June
2007. In monthly terms, it fell 0.2%. Core annual inflation in July was
forecast at 1.7%.
In another worrying sign for policymakers,
the retail price index, which has historically been used as a guide for
pay settlements, rose 5.0%, marking its sharpest increase since July
1991. That followed a 4.6% rise a month earlier. In monthly terms, the
RPI fell 0.1%.
On the housing front there were further evidence
of the marked deterioration in the UK housing market; with government
data showing house price growth has slowed sharply from a year earlier.
The Department for Communities and Local Government (DCLG) found that
annual house price inflation fell to 0.6 percent in June from 3.0
percent in May. The average weighted house price, on a non-seasonally
adjusted basis, dropped to 215,029 pounds from 216,625 pounds in May,
the DCLG said.
In France, the French CAC-40 index lost 0.8% to
4,502.67. On the economic front, the consumer inflation eased on the
month in July as retailers cut prices for clothing in summer sales,
fresh food prices fell and energy prices rose moderately. According to
data from statistics office INSEE the consumer prices fell 0.3 percent
in July from the previous month but that left the year-on-year rate
unchanged at 4%.
The data in detail reveals prices for
manufactured goods were down 1.9 percent, with clothing and shoes
falling 9.5 percent, while fresh food products were 1.5 percent lower.
But
the data did not reflect the fall in crude oil prices over recent weeks
and overall energy prices, which have surged over the past year, were
up 0.2 percent on the month and 18.5 percent on the year. Processed
food products were up 0.3 percent on the month and transport and
communications costs rose 2.1 percent.
Looking ahead the day is
slated to release international merchandise trade balance for Canada,
which will be followed by the trade balance data from US. In the
evening we have July?s monthly budget statement, which will be followed
by ABC/ Washington post weekly consumer confidence. In the late evening
we have wholesale inflation data from New Zealand which will be
followed by series of economic event from Japan including the release
of GDP figure for second quarter.
Visit our site at – http://investorline.co.in/
Newsromm - http://newsroom.investorline.co.in/
Learning Center- http://learning.investorline.co.in/
Mutual funds - http://mutualfunds.investorline.co.in/
Life Insurance - http://insurance.investorline.co.in/
Investor Journal - http://research.investorline.co.in/
Latest News - http://investorline.co.in/blogger/?q=aggregator/categories/1
News Resources - http://investorline.co.in/blogger/?q=aggregator/sources
Newscatcher- http://catcher.investorline.co.in/
Newsgroups- http://groups.google.com/group/india-investor
0 comments:
Post a Comment