This week investors on Wall Street, New York, again waiting for signs that could reinforce the belief that the United States economy began to come out of recession. They also need strong evidence to continue the rally.
A number of foundations for economic recovery in recent weeks began to appear. The level of consumer confidence rose, so did the housing market, which showed signs of improvement.
Last week, the data appeared that level of gross domestic product (GDP) America in the second quarter was still down. However, the decline was not as big as expected.
In addition, investors also enthusiastically welcomed the statement from the Governor Central Bank (the Fed), Ben Bernanke, August 21 and that the U.S. economy began to be on the verge of recovery.
In the last six months, the stock price index Dow Jones industrial achieve significant progress. Group of blue chip stocks are now living longer need 500 points to reach the level of 10,000.
According to analysts, the increase could continue to occur if the number of new reports that will be announced this week could lead to positive sentiment for investors. This week they will receive unemployment report and the performance of the manufacturing sector during August.
"The market is now in the atmosphere when the investors only got the news that is not so bad, but only slightly positive, then they will start selling off," said Ben Halliburton, an observer of Tradition Capital Management in Summit, New Jersey.
A story that seems most investors awaited this weekend is to report the unemployment rate. They already know that currently would not a positive sign considering the ongoing case of termination of employment (FLE) mass of recovery despite a number of companies started to happen.
However, investors hope that many companies began to reduce layoffs. According to the economists surveyed by Thomson Reuters, the number of layoffs in August of this case will come down, from 247,000 cases in July to 220,000 cases.
The investors hope that the projections will not miss from government data, which will be announced next Friday. If the number of new layoffs cases actually reduced, then the investor would dare to take action borong shares. "That would be big news and could be a turning point," said Maury Fertig, investment officer of Relative Value Partners
Senin, 09 November 2009
Investors worried about Rising Unemployment in the U.S.
The perpetrators of Wall Street, New York, now find it difficult to re-boost the stock price index significantly. Rally during the last six months, which raised the index by more than 45 percent, more weight to continue as investors realize the economic recovery in the United States (U.S.) is not as fast as expected.
The reason is, "We have no catalyst to boost prices in the market," said Brett D'Arcy, chief investment officer of CBIZ Wealth Management Group in San Diego. "We can only hope that the situation does not get worse before they move into a better direction," said D'Arcy.
On Wall Street, Monday, August 7, 2009 is the time off in order for Labor Day celebrations. However, the trade in this short week investors await economic reports from the U.S. Central Bank (Beige Report) and projection of the University of Michigan on consumer confidence in September.
In addition, investors are also awaiting the latest report on unemployment rate, which will be announced next Friday, and reports on retail sales and consumer spending levels. The third report in the past year become an important barometer for the market actors in the situation whether or not rapid economic recovery in the U.S..
Mike Rubino, CEO Rubino Financial Group in Troy, Michigan, considered that market participants are waiting for significant progress on reports drop in unemployment and rising levels of consumer spending. However, until now, the signs had not yet emerged.
"We assess the numbers this time even worse," Rubino said, referring to the continued increase in the unemployment rate. "We still continue to have problems with employment sector," said Rubino.
The proof, the U.S. Labor Department last Friday revealed that the unemployment rate in August remained up, even larger than the estimate of 9.4 percent in July to 9.7 percent. Nevertheless, there are encouraging reports that last month a little more new cases of termination of employment in the U.S..
"We really hope that the labor sector could be improved so that it can increase consumer spending," said Ingrid Nedershot, president Hendershot Investment in Bristow, Virginia. "If the unemployment rate continues to rise, recovery of [economic] will run sluggish," continued Nedershot
The reason is, "We have no catalyst to boost prices in the market," said Brett D'Arcy, chief investment officer of CBIZ Wealth Management Group in San Diego. "We can only hope that the situation does not get worse before they move into a better direction," said D'Arcy.
On Wall Street, Monday, August 7, 2009 is the time off in order for Labor Day celebrations. However, the trade in this short week investors await economic reports from the U.S. Central Bank (Beige Report) and projection of the University of Michigan on consumer confidence in September.
In addition, investors are also awaiting the latest report on unemployment rate, which will be announced next Friday, and reports on retail sales and consumer spending levels. The third report in the past year become an important barometer for the market actors in the situation whether or not rapid economic recovery in the U.S..
Mike Rubino, CEO Rubino Financial Group in Troy, Michigan, considered that market participants are waiting for significant progress on reports drop in unemployment and rising levels of consumer spending. However, until now, the signs had not yet emerged.
"We assess the numbers this time even worse," Rubino said, referring to the continued increase in the unemployment rate. "We still continue to have problems with employment sector," said Rubino.
The proof, the U.S. Labor Department last Friday revealed that the unemployment rate in August remained up, even larger than the estimate of 9.4 percent in July to 9.7 percent. Nevertheless, there are encouraging reports that last month a little more new cases of termination of employment in the U.S..
"We really hope that the labor sector could be improved so that it can increase consumer spending," said Ingrid Nedershot, president Hendershot Investment in Bristow, Virginia. "If the unemployment rate continues to rise, recovery of [economic] will run sluggish," continued Nedershot
Investors Wait for Unemployment Data
Mid last week, investors on Wall Street welcomed the economic rise of the United States (U.S.), characterized by positive levels of gross domestic product (GDP) in the third quarter - after declining in the last year.
However, last week also ended anti-climax after all the major indexes dropped again. The reason, investors again are unsure about the U.S. economic recovery accelerated in the last months of this year.
That is why, after rising 200 points had positive news following the U.S. GDP, stock price index Dow Jones industrial Friday last week plummeted 250 points instead. This week, investors waiting for a number of important data, which can determine whether the stock market continued to slip, or even back up.
Among a number of reports that market participants awaited the unemployment data, manufacturing, service sector, and the sale of the house. The numbers in the data is expected to support the positive rate in the third quarter GDP, which grew 3.5 percent.
In addition, this week the leadership of the Federal Reserve, the Fed, will meet for two days to discuss economic development and the determination of interest rates. Current interest rates the Fed is at the level of 0 percent.
Institute survey of the Institute for Supply Management earlier this week also announced the manufacturing sector index for October. Jill Evans, portfolio manager of the Alpine Dynamic Fund in Purcahse, New York, considered that although consumer spending is still low, a number of elements such as manufacturers increasingly are expected to improve along with economic recovery in several countries.
Often falling dollar in recent weeks could make the price of U.S. exports become cheaper and attractive to foreign buyers. "I think we're having push-pull situation," said Evas, referring to the improvements in a number of business sector and consumer spending still low
However, last week also ended anti-climax after all the major indexes dropped again. The reason, investors again are unsure about the U.S. economic recovery accelerated in the last months of this year.
That is why, after rising 200 points had positive news following the U.S. GDP, stock price index Dow Jones industrial Friday last week plummeted 250 points instead. This week, investors waiting for a number of important data, which can determine whether the stock market continued to slip, or even back up.
Among a number of reports that market participants awaited the unemployment data, manufacturing, service sector, and the sale of the house. The numbers in the data is expected to support the positive rate in the third quarter GDP, which grew 3.5 percent.
In addition, this week the leadership of the Federal Reserve, the Fed, will meet for two days to discuss economic development and the determination of interest rates. Current interest rates the Fed is at the level of 0 percent.
Institute survey of the Institute for Supply Management earlier this week also announced the manufacturing sector index for October. Jill Evans, portfolio manager of the Alpine Dynamic Fund in Purcahse, New York, considered that although consumer spending is still low, a number of elements such as manufacturers increasingly are expected to improve along with economic recovery in several countries.
Often falling dollar in recent weeks could make the price of U.S. exports become cheaper and attractive to foreign buyers. "I think we're having push-pull situation," said Evas, referring to the improvements in a number of business sector and consumer spending still low
Good News from the U.S. Making Menguat Index
Stock price index at a number of major Asian markets rose in late afternoon trading Friday, 6 November 2009, following the strengthening of Wall Street, New York on Thursday. Strengthening on Wall Street happened because of some positive data on economic conditions the United States (U.S.).
The main bourses close higher with the Nikkei 225 index climbed 0.7 percent to 9782 levels and the Hang Seng (Hong Kong) rose 1.7 percent to 21,841 level. Index Kospi (South Korea) rose 1.1 percent to 1569.50 level. Index in Australia, India, and Singapore close higher as well.
Asian stock indexes have been very sensitive to movement in the U.S., the strongest economies in the world and is a key partner for the Asian region. Trigger positive movement on Wall Street yesterday was a report from the U.S. government about the decreasing number of people who signed up for unemployment benefits last week. The decline reached its lowest level since January.
In addition, the signal of increased retail sales also help reduce the fears of investors would condition U.S. consumer purchasing power.
"That means the economy really getting better, better than people think," said Jackson Wong, vice president of Tanrich Securities in Hong Kong. "If the U.S. condition good, then everyone will be fine," he said. Investors are now waiting for the U.S. unemployment report which will be announced this Friday.
Analysts estimate the U.S. unemployment rate last month climbed to 9.9 percent. Although technically the U.S. economy began to rise in the third quarter of this year after declining for a year, the unemployment rate increases.
Unemployment data was the main focus for a major impact on the national sentiment. Consumers seem to lose its purchasing power is no longer growing unemployment. This means that export demand from Asia and other regions to the U.S. will be lower
The main bourses close higher with the Nikkei 225 index climbed 0.7 percent to 9782 levels and the Hang Seng (Hong Kong) rose 1.7 percent to 21,841 level. Index Kospi (South Korea) rose 1.1 percent to 1569.50 level. Index in Australia, India, and Singapore close higher as well.
Asian stock indexes have been very sensitive to movement in the U.S., the strongest economies in the world and is a key partner for the Asian region. Trigger positive movement on Wall Street yesterday was a report from the U.S. government about the decreasing number of people who signed up for unemployment benefits last week. The decline reached its lowest level since January.
In addition, the signal of increased retail sales also help reduce the fears of investors would condition U.S. consumer purchasing power.
"That means the economy really getting better, better than people think," said Jackson Wong, vice president of Tanrich Securities in Hong Kong. "If the U.S. condition good, then everyone will be fine," he said. Investors are now waiting for the U.S. unemployment report which will be announced this Friday.
Analysts estimate the U.S. unemployment rate last month climbed to 9.9 percent. Although technically the U.S. economy began to rise in the third quarter of this year after declining for a year, the unemployment rate increases.
Unemployment data was the main focus for a major impact on the national sentiment. Consumers seem to lose its purchasing power is no longer growing unemployment. This means that export demand from Asia and other regions to the U.S. will be lower
Oil Prices Approach U.S. $ 80/barel
Crude oil prices climbed close to U.S. $ 80 per barrel. The crude oil investors seemed to watch the global stock market movements, which is currently experiencing an increase followed gains in Asian stock index.
Based on elektronok transactions for Asian trade on the New York stock exchange, Friday afternoon in Singapore, the price of light sweet crude for December delivery rose 34 cents to U.S. $ 79.96 per barrel. On the London ICE exchange, Brent crude for December delivery rose 68 cents to U.S. $ 78.68/barel.
Oil investors have been affected by the sentiment of the stock exchange floor. Dow Jones stock index rose 2.1 percent and unemployment is declining to give a positive signal. The increase was also hit in the index major bourses Friday afternoon Asia.
In addition investors also observe the signs of decreasing oil supplies increased significantly bersaaman shrinking demand this year. "We hope the improvement of economic fundamentals to drive demand for oil," said Morgan Stanley's assessment in his report.
"Until the oil market is shrinking, the oil will bring increased risk to asset prices," he said. Morgan Stanley predicted prices would reach minyal average of U.S. $ 85 per barrel next year.
Oil prices could reach U.S. $ 80 per barrel last week due to kekahawatiran investors U.S. consumer purchasing power and currency volatility Dola
Based on elektronok transactions for Asian trade on the New York stock exchange, Friday afternoon in Singapore, the price of light sweet crude for December delivery rose 34 cents to U.S. $ 79.96 per barrel. On the London ICE exchange, Brent crude for December delivery rose 68 cents to U.S. $ 78.68/barel.
Oil investors have been affected by the sentiment of the stock exchange floor. Dow Jones stock index rose 2.1 percent and unemployment is declining to give a positive signal. The increase was also hit in the index major bourses Friday afternoon Asia.
In addition investors also observe the signs of decreasing oil supplies increased significantly bersaaman shrinking demand this year. "We hope the improvement of economic fundamentals to drive demand for oil," said Morgan Stanley's assessment in his report.
"Until the oil market is shrinking, the oil will bring increased risk to asset prices," he said. Morgan Stanley predicted prices would reach minyal average of U.S. $ 85 per barrel next year.
Oil prices could reach U.S. $ 80 per barrel last week due to kekahawatiran investors U.S. consumer purchasing power and currency volatility Dola
Wall Street drop Anticipation Index
In recent weeks, investors on Wall Street, New York, more often experience instability index (volatility), often up and down. Thus, some observers predict that the big rally that started in early March and may have ended.
In the last 12 trading days, the price index Dow Jones industrial stocks often rise and fall of more than 100 points. On Thursday, the Dow had soared by 205 points, making it the index rises almost 53 percent greater than the closing on March 9 last.
However, a day later, the Dow actually fell nearly 108 points after the government of the United States (U.S.) revealed rising unemployment rate for October, which is a 10.2 per cent.
In the last two months, only eight days in which the Dow could reap more than 100 points. Thus, observers predict that the decline in the index could be more frequent.
"We have experienced great rally and reach the highest results," said Scott Burns of Morningstar Inc. analysts. "But now comes the uncertainty regarding the health service sector and unemployment. The investors are now totally confused what to do. That's what causes instability appear," Burns continued.
In the last 12 trading days, the price index Dow Jones industrial stocks often rise and fall of more than 100 points. On Thursday, the Dow had soared by 205 points, making it the index rises almost 53 percent greater than the closing on March 9 last.
However, a day later, the Dow actually fell nearly 108 points after the government of the United States (U.S.) revealed rising unemployment rate for October, which is a 10.2 per cent.
In the last two months, only eight days in which the Dow could reap more than 100 points. Thus, observers predict that the decline in the index could be more frequent.
"We have experienced great rally and reach the highest results," said Scott Burns of Morningstar Inc. analysts. "But now comes the uncertainty regarding the health service sector and unemployment. The investors are now totally confused what to do. That's what causes instability appear," Burns continued.
Index of Asia early this week Menguat
Stock price index at a number of major Asian markets associated with strong investor enthusiasm for the United States government report about the rising unemployment rate. Negative report to Wall Street on Friday last week that it expected the Asian investors continue to give signals of low interest rates in the U.S..
Hong Kong index (Hang Seng) closed rose 1.1 percent to 22.063 and Japan Index (Nikkei) also closed up 0.4 percent to 9,823.90. The influence is also common in the Index of South Korea, Taiwan, Singapore, Australia, and New Zealand. Shares of banking and insurance products increased sharply in trading on several exchanges.
AXA Pacific Holdings Ltd, Australian insurance companies earned more than 32 percent after the owner refused to offer insurance to U.S. $ 10 million from its competitors, AMP Ltd and the main business of AXA SA of France. This refusal to make an offer mengaharpkan investors with higher value.
In Japan, Mitsui Sumitomo Insurance Group gain 8.8 percent increase from non-life insurance, better than the company's revenue last April-September.
Along with the strengthening yen currency value of export products to hit this country. Toyota Motor Exports slipped 0.6 percent while Canon Inc. exports have decreased 0.9 percent.
Asian indices follow the movement of movements on Wall Street with the movement of rising slowly since last Friday. The U.S. government said unemployment would exceed 10 percent for the first time since 1983.
Although the unemployment rate increases, investors received assurances from the U.S. Federal Reserve (the Fed). The Fed will keep interest rates low level of credit between 0-0,25 percent. Low interest rates affect the low demand for U.S. dollar liquidity and support. Ultimately this will impact on the improvement in capital markets.
"Economic sector is still weak and we still expect interest rates will not rise any time soon," said Linus Yip, "This will help boost the U.S. market and Hong Kong," explains Yip.
Yip revealed, after the investor has the U.S. labor data, they will concentrate to the market in mainland China. Several economic indicators which will be released this week oenjualan sectors including retail, industrial output and consumer price index.
In Friday trading, Dow Jones average rose 0.2 percent to 10, 023.42. The Standard and Poors index of 500 closed up 0.3 percent to as low as 1,069.30.
Hong Kong index (Hang Seng) closed rose 1.1 percent to 22.063 and Japan Index (Nikkei) also closed up 0.4 percent to 9,823.90. The influence is also common in the Index of South Korea, Taiwan, Singapore, Australia, and New Zealand. Shares of banking and insurance products increased sharply in trading on several exchanges.
AXA Pacific Holdings Ltd, Australian insurance companies earned more than 32 percent after the owner refused to offer insurance to U.S. $ 10 million from its competitors, AMP Ltd and the main business of AXA SA of France. This refusal to make an offer mengaharpkan investors with higher value.
In Japan, Mitsui Sumitomo Insurance Group gain 8.8 percent increase from non-life insurance, better than the company's revenue last April-September.
Along with the strengthening yen currency value of export products to hit this country. Toyota Motor Exports slipped 0.6 percent while Canon Inc. exports have decreased 0.9 percent.
Asian indices follow the movement of movements on Wall Street with the movement of rising slowly since last Friday. The U.S. government said unemployment would exceed 10 percent for the first time since 1983.
Although the unemployment rate increases, investors received assurances from the U.S. Federal Reserve (the Fed). The Fed will keep interest rates low level of credit between 0-0,25 percent. Low interest rates affect the low demand for U.S. dollar liquidity and support. Ultimately this will impact on the improvement in capital markets.
"Economic sector is still weak and we still expect interest rates will not rise any time soon," said Linus Yip, "This will help boost the U.S. market and Hong Kong," explains Yip.
Yip revealed, after the investor has the U.S. labor data, they will concentrate to the market in mainland China. Several economic indicators which will be released this week oenjualan sectors including retail, industrial output and consumer price index.
In Friday trading, Dow Jones average rose 0.2 percent to 10, 023.42. The Standard and Poors index of 500 closed up 0.3 percent to as low as 1,069.30.
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