Media Blog Review

World stocks hit a 12-day low on Monday, depressed by recent weak U.S. economic data and failing to find support from the G20 summit, while the yen attracted fresh flows to hit an eight-month high against the dollar. Weaker-than-expected U.S. housing sales and durable goods orders on Friday drove U.S. stocks lower, and world and European stocks followed that trend on Monday. Leaders of the Group of 20 rich and developing nations pledged on Friday to bring the global economy back into balance but their statement contained few surprises and investors are already looking ahead to U.S. employment data at the end of this week. Global equities and other higher risk assets have risen sharply in the last six months on growing optimism about the economic outlook, but markets are starting to run out of impetus, analysts say. “Investors are a little bit reluctant to add to their risk positions,” said Koen De Leus, economist at KBC Securities. “The market is going to have a very good look at macroeconomic numbers this week. If some of these figures disappoint, then the market is going to go down further.” Analysts are starting to question whether the global recovery is V-shaped, or if it could be W-shaped, with a second dip to come. The MSCI world equity index was down 0.52 percent at 282.94, bringing losses since Sept 22 to 3 percent. U.S. stock index futures , however, were indicating a slightly stronger open on Wall Street after the market scored a third consecutive day of losses on Friday. The FTSEurofirst 300 index hit its lowest in nearly three weeks before trimming losses to 982.53, down 0.14 percent from the U.S. close. GERMAN STOCKS UP German stocks , however, rose 1.3 percent with particularly strong gains in utilities E.ON and RWE , on expectations of longer lifetimes for German nuclear power plants as a result of the German election. German Chancellor Angela Merkel’s conservatives won a weekend parliamentary election with the pro-business Free Democrats (FDPP), enabling her to end her awkward four-year-old partnership with the Social Democrats (SPD). “(This) government provides the greatest opportunities for equity market-friendly reforms compared to other party combinations,” said Tammo Greetfeld, equity strategist at Unicredit, in a client note. The yen, typically regarded as a safe-haven currency, surged to an eight-month high against the dollar as Japanese officials waved off any plans to stem the currency’s rise. The yen later gave up some gains as Finance Minister Hirohisa Fujii changed gear on his comments during the course of the day, saying yen gains were becoming one-sided just hours after saying the rise was “not abnormal”. The dollar fell as far as 88.26 yen before trimming losses to 89.35, down 0.31 percent. However, the dollar hit a 2-1/2 week high against an index of currencies and a 13-day high against the euro as the U.S. currency also attracted safe-haven flows. Funds are starting to shift money home ahead of the quarter-end later this week, analysts say. Crude oil dipped 20 cents to $65.82 a barrel . Euro zone government bonds also benefited from safety trades, with 10-year yields briefly hitting a one-month low. December Bund futures were up 5 ticks, trimming earlier gains. Sept 28 (Reuters)

Tags: Angela Merkel, democrats, european stocks, finance, financial news, g20 summit, german, german stocks, global recovery, international investing, party, social, week
Posted September 28, 2009 by under Contrarian Investing

The commodity markets are surging today. Are the bulls charging because of investor fear or is something else going on? Here’s the answer. There is a buzz in the commodities markets this week. Just about anything that can be pulled from the ground is surging in value. Everything, that is, but natural gas. Most notably, gold is just about ready to reach over the critical $1,000 level, proving that investors are looking for safety. Even without a hint of inflation, the precious metal has surged by over 5% so far this week. The quick run means the world’s gold miners are surging in value. The more leverage packed into their balance sheets, the higher their prices are going to go. So far, Yumana Gold (NYSE: AUY ) is up by nearly 20% this week, while AngloGold Ashanti (NYSE: AU ) is up by over 15%. It is a similar situation for the silver industry. As investors search for tangible value, the silver industry is taking its investors on a wild ride. One of the more popular ways of playing the trend, the iShares Silver Trust ETF (NYSE: SLV ) was up by as much as 5%, taking the week’s gains into double-digit territory. TFN Strategic Trader subscribers love the action. Our call options are worth 66% more this afternoon than they were this morning. The juicy story Now, I realize you come to TFN sight looking for more than the usual take on the day’s news. Fortunately, our friends over in Russia are creating more than enough action to feed our appetite for story material. As if the government-centric action unfolding around the Chinese commodity market was not enough to prove my prediction and profit potential of the “Commodities Carry Trade,” the Russian government is stepping into the ring to create some action on its own. Unable to secure a firm economic future through normal economic means, Putin is “calling” for the country’s banks to start buying Mechel’s (NYSE: MTL ) debt. There are also rumors of strong tax breaks heading towards the large Russian miner. Not only is this yet another wrinkle in my Commodity Carry Trade theory, it helps prove that the effort truly is becoming a global phenomenon. With their economies weak and the world’s banking industry even weaker, governments are quickly turning to the commodities market for their financial security. Why invest in paper backed by a desperate government when you can invest in a commodity the world will need no matter what happens in the coming years? No questioning the profit potential While there are lots of facets affecting this trade, one thing that is certain is it will be extremely bullish for the commodities market. We are seeing a mere glimpse of things to come. Once demand surpassed production… stand back. Prices will soar. I have a fantastic way to take advantage of this situation, but I absolutely cannot give it away to a wide audience. Its value was up by nearly 50% today with a trading volume of just 287 trades. Imagine what would happen if thousands of eager investors suddenly jumped in. If you want me to email you with the trade to make, just click here . Finally, just to prove there is an exception to every rule, natural gas prices are hitting yet another new low today, dropping the to a paltry $2.50 per million BTUs. Could it be that foreign investors want nothing to do with an American-based economy? Or is the bearish action a result of the growing inventory glut across the globe? Now that some of the world’s most powerful governments are getting in on the action, the commodity trade is not going anywhere anytime soon. This is exciting stuff that is going to drastically change the commodities industry. The situation has profit opportunity written all over it. I say we take advantage of it. Source: Russia’s Maneuvering Boosts the Commodities Market

Tags: action, auy, chinese, commodity, financial, Gold, gold prices, mtl, Russia, russian, silver, week, world
Posted September 4, 2009 by under Contrarian Investing