Finance News

The Euro is losing value against the dollar for the second day in a row while Asian stocks plummeted after European politicians were unable to present a plan to put a halt to the region’s debt crisis. Gold prices increased and the dollar appreciated against most other major currencies. DT Trading experts report that the Euro had dropped 0.8% to 1.3689 as of 8:20AM in Hong Kong. The MSCI Asia Pacific Index dropped 0.6%, not accounting for Japan. Meanwhile, futures on the S&P 500 Index fell 1.3% and gold ascended 0.7%. The dollar index, which measures the value of the dollar against the currencies of six of the US’s main trading partners, increased 0.6%. EU finance ministers announced at their summit that the 18-month debt crisis is not leaving room for tax cuts or additional expenses for stimulating the economy, which is on the brink of stagnation. Economic reports on Germany this week show reduced investor confidence and a drop in...

Stocks rose yesterday during trading in America, boosting the Standard & Poor’s broad market index even higher for a third day in a row. The Euro also appreciated after the German and French leaders expressed support for Greece to stay in the Euro zone. Speculation also grew around the fact that China may help out the biggest European debtors. Italian and Spanish debt securities grew immediately after Zhang Xiaoqiang, the vice-chairman of the National Committee for Development and Reform, said that China is ready to buy bonds from countries suffering from the debt crisis. The S&P 500 rose 1.4%, closing at 1,188.68. At the same time, December futures on the index slid down less than 0.1% as of 7:21PM in New York. The Stoxx Europe 600 Index rose by 1.5%, while the Euro went up 0.6% to $1,3755. Yields on 10-year treasury bonds fell by one basis point to 1.98%. Oil futures fell 1.4% to reach $88.91 per barrel after...

While the markets were waiting for the European Economic and Financial Affairs Council meeting results, The Single currency has managed to ease back again versus the greenback under the pressure of having €2.5B EU Trade Balance deficit in July while the markets were waiting for €1.7B surplus from €1.5B deficit in June after it had failed to get over its previous resistance at 1.3935 falling below 1.377 whereas it has started its rising following the news of offering 3 months loans by the ECB for the European banks in an coordinated action with the Fed, SNB, BOE and BOJ for underpinning the US dollar liquidity into the European banking system for longer time as this has been allowed for just one week by the ECB. God willing, further EURUSD declining can meet over the short term supporting levels at 1.3702, 1.3635, 1.3554 then 1.3494 again whereas it has started to correct its loses reaching the current levels and the breaking of...

Managers on the US money market, headed by Vanguard Group Inc and Legg Mason Group Inc, are cutting loans to French banks so fervently, that it may force these banks to increase their capital by selling stocks, said William Prophet, an analyst with Deutsche Bank Securities Inc. Meanwhile, Italian officials, led by Prime Minister Silvio Berlusconi, conducted negotiations with their Chinese colleagues about potential investments in the EU’s third-largest economy. Signs of the “Greek contagion” are threatening to infect Italy and have pushed yields on the country’s bonds to a record high since the Euro zone’s creation. Berlusconi’s government swiftly passed a 54 billion Euro austerity package through parliament to convince the European Central Bank to buy its debt. But DT Trading analysts note that over 60 billion Euros spent on buying up European bonds the past five weeks have not convinced investors to buy Italian bonds. American funds are reducing their shares in European banks amid fears that financial institutes...

On August 25, 2011, the Commodity Futures Trading Commission (“CFTC”) adopted its final rules on “Commodity Whistleblower Incentives and Protection.” According to the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), the CFTC must pay an award, subject to certain limitations, to eligible whistleblowers that voluntarily provide the CFTC with original information about a violation of the Commodity Exchange Act (“CEA”) that leads to a successful enforcement action. In other words, the CFTC is now required to reward certain persons that expose fraud within the industry that it regulates. Dodd-Frank also prohibits retaliation by employers against persons who provide the CFTC with information about possible CEA violations. CFTC regulated employers should make themselves aware of the existence and possible implications of these new final whistleblower rules which become effective on October 24, 2011. A brief summary of the new rules follows. The final regulations are substantially similar to those that were proposed. We encourage you to seek assistance if you...

Gold prices tumbled on Wednesday amid rising optimism around global financial markets, where traders were optimistic after Italy announced new austerity measures, which provided stock markets in Europe and the United States with strong bullish momentum, and accordingly, traders opted to invest in higher yielding and more risky assets, which put strong negative pressure on gold prices one day after rising to a new record high on Tuesday. We still preserve our bullish outlook for gold prices, where traders are likely to continue targeting safe assets including gold amid the huge uncertainty that continues to surround the outlook for global growth, especially since emerging signs suggest global growth is slowing, and that should continue to support demand for gold as a safe haven over the coming period. Moreover, traders will be focused on rate decisions from Europe, where the Bank of England and the European Central Bank are both expected to leave the benchmark interest rates unchanged, however, some traders are speculating...

Natural gas prices rose on Wednesday, as the National Hurricane Center signaled a storm in the Gulf of Mexico could develop into a cyclone, which raised concerns that supply of natural gas could be disrupted from the area, putting upside pressures on natural gas prices. Traders will be eyeing the EIA report for natural gas stockpiles on Thursday, while traders will be also watching the developments of the storm in the Gulf of Mexico. Thursday September 08: At 14:30 GMT, the EIA report for natural gas inventories will be released, where the EIA report is expected to show that natural gas inventories increased by 61 billion cubic feet, compared with the prior rise of 55 billion cubic feet.

Crude oil prices rose on Wednesday, as optimism spread through markets that President Obama will announce a new stimulus plan to support the labor market. Moreover, concerns from the European debt crisis eased after Italy announced new austerity measures. Also, traders were focused on a strong in the Gulf of Mexico that could disrupt oil supplies, which pushed crude oil prices higher. U.S. President Obama will announce a new stimulus plan to support the labor market, where the specific details of Obama’s plan will be released before the Congress on Thursday. Moreover, traders will be watching closely rate decisions from Europe, where the Bank of England and the European Central Bank are expected to leave interest rates unchanged. Traders will be also eyeing the EIA report for crude oil inventories on Thursday, since it was postponed due to the Labor Day Holiday earlier this week. Thursday September 08: At 12:30 GMT, the U.S. will release the trade balance for July, where the trade...

Crude oil prices rose on Tuesday, despite fears of a recession in the United States and slowing global growth, as traders were hopeful a U.S. economic stimulus plan will support economic growth, while supply concerns also contributed to the rise in crude oil prices after an oilfield was closed in China as a result of leaks, which is expected to increase China’s oil imports this year. The outlook for crude oil though remains negative, since the outlook for global growth remains somewhat bleak, and that could put negative pressure on crude oil prices over the coming period. Moreover, concerns from the European debt crisis could also weigh down on crude oil prices, as traders will most likely continue to target lower yielding and more safe assets. We should note that the EIA report which is usually released on Wednesday will be postponed to Thursday due to the Labor Day Holiday earlier this week. Wednesday September 07: At 18:00 GMT the United States will...

Gold prices fluctuated heavily on Tuesday while setting a new record high above $1900 an ounce amid the mixed sentiments that dominated global financial markets, where the Swiss National Bank announced it has set a minimum target for the Franc against the Euro, which supported confidence earlier in the day and pushed gold prices to drop. Nonetheless, gold prices rose back to the upside, as fears spread through markets over the outlook for global growth after data from Europe signaled economic activities was slowing down. We still preserve our bullish outlook for gold prices, where traders are likely to continue targeting safe assets including gold amid the huge uncertainty that continues to surround the outlook for global growth, especially since emerging signs suggest global growth is slowing, and that should continue to support demand for gold as a safe haven over the coming period.