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US stocks tumble in late selloff on European crisis fears
May 25th
NEW YORK: US stocks slumped Monday on new fears over Europe”s debt crisis, triggered by the rescue of a Spanish savings bank.
The Dow Jones Industrial Average lost 126.82 points (1.24 percent) to end at 10,066.57, extending last week”s massive losses when the blue-chip index shrank more than four percent and briefly fell below the sensitive 10,000-point level.
The tech-rich Nasdaq composite dipped 15.49 points (0.69 percent) to 2,213.55 while the broad-market Standard Poor”s 500 declined 14.04 points (1.29 percent) to 1,073.65.
The market opened on a bearish note after the Spanish central bank”s weekend rescue of regional savings bank CajaSur, burdening Spain”s already strained public finances.
CajaSur”s rescue came as the Spanish government introduced a fresh round of austerity measures aimed at bringing the public deficit down to a eurozone limit of three percent of gross domestic product from 11.2 percent last year.
The bailout “exacerbated fears of continental debt contagion, and provided more than enough ammunition for the bears to claim the session,” said analyst Andrea Kramer of Schaeffer”s Investment Research.
It also triggered “another round of concerns regarding the health of the financial system in that country in spite of the existence of the huge EU/IMF rescue plan,” said Frederic Dickson, chief market strategist at D.A. Davidson Co.
“Investors will continue to follow the ongoing financial soap opera in Europe and the movement of the euro in response to changing investor expectations regarding how the sovereign debt situation plays out in Greece, Portugal, and Spain,” he said.
Wall Street received a temporary boost Monday when industry data showed a jump in US existing-home sales. It cut losses by midday but a late selloff on the European concerns pulled stocks down.
“A solid increase in existing-home sales helped repair some of the damage in late-morning trading, but sentiment seems to still be cautious amid the backdrop of the euro-area debt crisis, exacerbated by the weekend”s government bailout of a Spanish regional bank,” analysts at Charles Schwab Co said.
The National Association of Realtors (NAR) said sales of existing homes increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April, from an upwardly revised 5.36 million in March.
As stocks shrank in value, technology companies proved resilient.
Apple was up 1.83 percent to 246.76 dollars after an upgrade of the stock by Morgan Stanley.
Yahoo! gained 0.48 percent to 15.54 dollars as it partnered with Finnish firm Nokia, the world”s largest mobile phone maker, for an Internet services venture.
In banking, Citigroup rose 0.8 percent to 3.78 dollars after the stock was upgraded by Goldman Sachs.
Other banking shares were not spared. Bank of America fell 3.69 percent to 15.40 dollars, JPMorgan Chase was down 3.57 percent to 38.62 dollars and Goldman Sachs slipped 2.79 percent to 136.69 dollars.
The bond market also fell. The yield on the 10-year US Treasury bond rose to 3.227 percent from 3.200 percent on Friday and that on the 30-year bond increased to 4.104 percent from 4.065 percent.
Euro gives ground and Asian stocks weak
May 24th
TOKYO: The euro struggled to hold on to gains on Monday as investors sold into its latest bounce, while Asian stocks recouped ground from last week”s eight-month lows on fears the euro zone debt crisis will hit world economic growth.
Market volatility remained high following the euro”s decline to a four-year low last week, however, and investors further cut risk in their books to wait for things to calm down, traders said.
Losses in the Australian dollar deepened after miner Rio Tinto said a mining tax had damaged Australia”s investment reputation. The currency bounced back from its lows as stocks in China, with which Australia has close trade ties, rose 3 percent.
The MSCI index of Asia-Pacific shares outside of Japan rose 1.2 percent after a weaker start, moving up from the lowest level since September 2009.
“Today”s gains were merely a technical rebound as the slides last week were too much, too fast,” said Eddy Chen, a manager at the fund business at Taiwan”s First Financial.
The Shanghai Composite Index gained 3.1 percent, buoyed by a surge in property shares after a media report quoted a government official as saying a new property tax recently under discussion would not come within the next three years.
Investors sold Japanese exporters” shares to pull the benchmark Nikkei average down to its lowest level in more than five months, taking the view that a strong yen undermines future profits. The Nikkei fell 6.5 percent last week, its worst weekly drop in more than a year.
The euro fell to around $1.2500 in Asian trade from around $1.2570 in late New York dealings on Friday. The currency had posted its first weekly gain against the dollar in six weeks last week as investors bought it after a long slide.
Dealers said the health of the Europe”s banks weighed on the euro. At the weekend, the Bank of Spain said it was taking over the running of savings bank CajaSur after its planned merger with another small Spanish lender failed.
“The currency market focus is still the euro zone”s fiscal trouble, but weariness about its impact on the global economy seems to be spreading, making investors increasingly risk averse,” said Jun Kato, senior manager for investment at Shinkin Asset Management.
The Australian dollar fell as investors, fearful of slower world economic growth, unwound carry trades funded in the euro.
The euro rebounded sharply against the high-yielding Aussie last week, hitting three-month highs of A$1.5456, on the back of a huge sell-off by hedge funds.
On Monday, the pair was trading at A$1.5108, just above late levels in New York on Friday. The Australian dollar fell 0.5 percent against the yen to 74.61 yen.
The Aussie dollar extended its broad slide after Rio Tinto said it is reviewing all capital spending plans in light of the government”s proposed resource super profits tax.
Australian stocks rose, buoyed by bargain hunters picking up banks and miners, following a slight recovery on Wall Street. The benchmark SP/ASX 200 index gained 1.4 percent to 4,364.2, moving away from 10-month lows on Friday.
Oil prices snapped three straight sessions of decline and rose slightly to hover above $70 a barrel, though analysts said sentiment remain fragile and prices could be again be hit by macroeconomic pessimism.
An oil price of $65 per barrel is still reasonable for all producers, but a price below that will be a “disadvantage,” the chief executive of Saudi Basic Industries Corporation (SABIC) said on Sunday.
Pakistan to play 4-nation hockey tourney in China
May 23rd
LAHORE: Pakistan hockey team will take part in the four-nation tournament in China.
Sources said that this tournament will be played from July 7 to 11 in Chinese city of Dalian where Pakistan, Malaysia and Russia besides hosts will take part in the event.
Earlier, the Pakistan Hockey Federation has finalized the national teams tour of Europe where Green Shirts will play series against Spain and Holland before participating in the Commonwealth Games and the Asian Games.
MESSI SAYS NO PRESSURE TO TAKE ARGENTINA TO WORLD CUP GLORY
May 21st
BUENOS AIRES: Ace Argentinean striker Lionel Messi has said that he feels under no pressure to take Argentina to World Cup glory.
The Barcelona striker is tipped to be World Player of the Year and is Diego Maradona”s best hope of winning in South Africa.
“I don”t feel pressure playing in the Argentina shirt. In Spain, I”m also in a team that has to win everything,” local media quoted him as saying.
“The World Cup is a nice -opportunity to show I can do the same things in the national team as for Barcelona,” Messi added.
EURO SLIDES AS DEBT CONCERNS PERSIST
May 20th
TOKYO: The euro fell against other major currencies in Asia on Thursday after a short-lived rally on intervention rumours amid persistent concerns over eurozone debts, analysts said.
The euro was quoted at 1.2327 dollars in Tokyo afternoon trade after the single currency rallied to 1.2408 dollars in New York late Wednesday. However, it held off from the four-year lows below 1.22 it hit earlier Wednesday.
It also fell to 112.92 yen from 113.90.
The dollar was at 91.39 yen, down from 91.70 yen in New York.
The euro staged its strongest rally since the beginning of the year in New York on Wednesday following rumours of intervention by the European Central Bank.
There was also speculation the US and British central banks may also be drawn on to shore up the single currency.
However, “I don”t think the ECB wants to intervene at this level”, said Mizuho Corporate Bank market economist Daisuke Karakama.
“It would bring few benefits… If the euro falls further, it would be better for Greece as crisis-hit countries in the past have seen their currencies fall and exports rise,” he said.
Not only Greece but Spain, Portugal and even Germany would be happy with a weak euro, barring drastic falls such as below dollar parity, he said.
“I think that intervention would really be a last resort for the ECB,” as it may implicitly accept the lower euro for now as a benefit to export-dependent eurozone economies,” a director at Canadian bank in Japan told Dow Jones Newswires.
Markets remain concerned despite a near trillion-dollar package to prevent Greece”s debt troubles spreading to the rest of Europe.
Dealers took in their stride Japanese data showing the economy surged in January-March, marking the fourth straight quarter of expansion as the country”s export-driven recovery gathers pace.
The dollar was mostly higher against regional Asian currencies.
The greenback rose to 1,195.90 South Korean won from 1,166.50, to 1.4046 Singapore dollars from 1.3985 and to 45.92 Philippine pesos from 45.56.
It also went up to 9,215 Indonesian rupiah from 9,105 and to 32.42 Thai baht from 32.40. It was unchanged at 32.05 Taiwan dollars.
PAK WANTS TO EXTEND ASSISTANCE IN AFGHANISTAN RECONSTRUCTION FM
May 18th
ISLAMABAD: Foreign Minister Makhdoom Shah Mahmood Qureshi on Monday said that Pakistan wanted to assist Afghanistan in capacity building and reconstruction efforts, including through the involvement of Pakistans private sector.
In this regard, he said Pakistan was willing to continue working with the international community and remain engaged with Afghanistan.
He was speaking as Chief Guest at a dinner hosted by the Spanish Ambassador Gonzalo Maria Quintero Saravia here today. The Spanish Ambassador hosted the dinner in Spains capacity as the current President of the rotating Presidency of the EU.
The dinner was attended by all Envoys of the EU countries based in Islamabad.
The Foreign Minister recalled the visit of EU Ambassadors to Peshawar and their support to the people of Khyber Pakhtunkhwa. He briefed the EU Ambassadors on the Governments policies aimed at strengthening democracy and democratic institutions in the country.
The successful counter-terrorism strategy of the Government was also highlighted.
On Foreign Policy issues, the Foreign Minister informed the EU Ambassadors about several initiatives, including the Friends of Democratic Pakistan which had lent strategic support to Pakistan in its difficult times.
ASIAN STOCKS PLUNGE AS EURO FALLS TO 4 YEAR LOW
May 17th
SINGAPORE: Asian stock markets tumbled Monday on investor concern the Europe debt crisis will worsen as the euro fell to a4-year low.
Japan”s benchmark Nikkei 225 stock average dropped 260.36 points, or 2.5 percent, to 10,202.15, while South Korea”s Kospi lost 2.8percent to 1,648.04 and Australia”s SP/ASX 200 index was down 2.6percent at 4,491.30.
China”s benchmark index in Shanghai tumbled 3.6 percent, Hong Kong”s Hang Seng index lost 2.5 percent, India slid 2.3 percent and Thailand sank 2.8 percent.
Asian investors are concerned that cost-cutting fiscal measures being taken by Greece, Portugal and Spain could hamper a recovery in the eurozone economy and undermine export demand.
Some thoughts on England vs Egypt
Mar 5th
I actually felt like doing a piece on the JT-Wayne Bridge fiasco, but everything i wanted to say was said in a much better way by John Nicholson over at Football 365. A few choice words ”And before you’re too judgemental, until you have successfully m…
IMF, Spain differ over pace of economic recovery
Jan 8th
WASHINGTON: The IMF cautioned Spain on Friday that its deficit-reduction goals rely on overly optimistic economic forecasts and its budget picture wil
