Update Daily Investment News

We Are in V-Shaped Recovery, Stay in Stocks: Strategist
By: Lisa Auret Assistant Web Producer, CNBC
The recovery won't be bolstered by the consumer, like in previous recessions. Instead demand will come from a build-up of low inventories and large companies' exposure to emerging market growth, Edith Thouin, vice president of ABN Amro Private Banking said Monday."We do think we are in a V-shaped recovery and equities are the place to be," she said, adding that investors should still shift their focus into a more diversified portfolio.She told CNBC investors should bet on industrial and base material companies, as well as international companies with good exposure to China, South America and other emerging market countries.

http://www.cnbc.com/id/34921771

Euro May Fall to 7-Month Low on Fibonacci: Technical Analysis
(Bloomberg) -- The euro may decline to a seven- month low of $1.380, Tokai Tokyo Securities Co. said, citing trading patterns. The euro is poised to fall to its 200-day moving average of about $1.4288, said Yoh Nihei, a Tokyo-based trading group manager at Tokai. Should the 16-nation currency drop below that level, it will decline toward $1.4120, a 38.2 percent Fibonacci retracement of its advance from $1.2457 on March 4 to $1.5144 on Nov. 25, he said.If the 16-nation euro falls below $1.4120, the next support level will be $1.380, a 50 percent Fibonacci retracement, Nihei said. That would be the lowest since June 16. Support refers to an area where buy orders may be clustered.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aFXZ8OpC2PsY

Euro Weakness Versus Pound Set to Intensify: Technical Analysis
(Bloomberg) -- The euro’s decline against the pound may accelerate, according to at least four technical indicators. The moving average convergence/divergence, or MACD, which signals directional trends for a security, gave a so-called sell signal for the euro on Jan. 13. Parabolic systems, used by traders to track the strength of a trend, switched to a sell a day later. The directional movement indicator, or DMI, also indicated the trend for the common European currency is lower.The euro is weakening after European Central Bank President Jean-Claude Trichet said on Jan. 14 that the region’s economic outlook remains uncertain and said policy makers won’t rescue Greece as the country struggles to reduce its budget deficit. The pound gained versus the single currency last week on speculation the Bank of England will allow its bond-buying program to expire as the recovery takes hold.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=awNzWDIO_Tlc

Fibonacci Shows DAX Index May Fall to 5,840: Technical Analysis
(Bloomberg) -- Germany’s benchmark DAX Index may fall to 5,840 in a “continued consolidation move,” according to a technical analyst at DZ Bank AG who looks at Fibonacci retracements to predict market movements. “The significant upward momentum of the short-term trend has now been lost, at least from a quantitative point of view,” after the measure dropped below the 38.2 percent Fibonacci retracement level at 5,910, DZ Bank’s Dirk Oppermann wrote in a report to clients today. “The continued consolidation move once again confirms the currently unfavorable cyclical environment on the international stock markets.”

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ayx8TK8L5jVM

Oil Prices to Fall This Week: CNBC Survey
By: Sri Jegarajah Singapore Reporter
CNBC's weekly poll of analysts forecasts oil to continue to fall this week as weak fundamentals (supply overhang and anemic demand) weigh on the market.Out of 12 analysts, nine (or 75 percent) expect prices to fall this week, three said they would be largely unchanged and none expected prices to rise.
Oil fell nearly 6 percent last week and some respondents see a test of $76/bbl, possibly $74 this week. China monetary tightening and a slow start to the U.S. earnings season may also drag. But investor buying on the dips -- as the the global economic recovery gains traction-- may limit any move lower.

http://www.cnbc.com/id/34916169

Market Tips: Stocks Still in a Bull Run
By: CNBC.com
Global stocks were firmer on Monday as metal prices rose on strong Chinese demand hopes. But crude prices were weak as renewed concerns about energy demand prompted investors to sell down their positions.Experts told CNBC that stocks can still go higher, while the oil market could be in for a further correction.Buy on Dips as Equities Still in Bull Run
Roger Groebli, executive director at LGT Capital Management says equity markets are still in a bull run and investors should buy on dips, especially for those who had missed the rally in 2009.

Crude Market In For Further Correction
The crude market could correct further, says Peter McGuire, managing director at CWA Global Markets.

Dollar Bounce Expected
There is a good reason for a dollar-bounce, predicts Sean Callow, senior currency strategist at Westpac Bank. He shares his outlook for the dollar & commodity currencies.

China Data to Impact Dollar
China's economic data will have a strong impact on the greenback, says Damien McColough, chief interest rate strategist at Westpac Institutional Bank.

Yen Set to Weaken
The yen may become another carry-trade currency that will support the US dollar, says Andrew Freris, senior investment strategist at BNP Paribas Wealth Management, which could eventually see the Japanese currency weaken progressively.

Investing in Asia
China, Hong Kong and South Korea will be on a growth trajectory, says Paul Heffner, CEO at Gen2 Partners.

Food Shortages Coming, Buy Commodities: Jim Rogers

Chartology: Is Market About To Tumble?
By: Lee Brodie Producer
Selling dominated on Friday after JPMorgan dashed hopes that consumer credit was on the mend.Adding to the bearish tone, a survey showed U.S. consumer sentiment was little changed in early January, as worries over income and high unemployment offset news of an improving economy. Also energy [XLE Loading... () ] and materials [XHB Loading... () ] names were hammered after the dollar [US@DX.1 Loading... ()] made gains against a basket of currencies dragging down commodity prices; lately a stronger dollar has been bearish for the market.

http://www.cnbc.com/id/34883179

U.S. Stocks May Outperform Asian Equities, Says HSBC’s Evans
(Bloomberg) -- U.S. shares may surprise on the upside this year after lagging behind 2009’s worldwide stock rally, said Garry Evans, head of global equity strategy at HSBC Holdings Plc. “People have got very high expectations for Asia already,” Evans said on Bloomberg Television. “Contrast that to the US where everyone is so bearish, it can only surprise on the upside.” HSBC has an “overweight” rating for U.S. equities and “underweight” on Asia excluding Japan.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aPUzyK8bs_nw

Guinness Wealth Managers Avoid Corporate Bonds, Prefer Stocks
(Bloomberg) -- The managers of the Guinness brewing family’s fortune are putting more money into stocks and avoiding government and corporate bonds because of concern about rising debt in places such as the U.K. Iveagh Private Investment House, the company that oversees the money, is staying away from bonds sold by the British and Greek governments as well as soccer club Manchester United, said Paul Ross, chief executive officer of the asset manager.

http://www.blogger.com/post-edit.g?blogID=6833542981102286398&postID=1657225379961211701

OPEC Won’t Need to Raise Oil Output in 2010, IEA Says
(Bloomberg) -- The Organization of Petroleum Exporting Countries won’t need to raise oil production this year as its output of natural gas liquids increases, the International Energy Agency’s deputy executive director said. “We don’t see a big change in OPEC production this year,” Richard Jones said in an interview late yesterday in Abu Dhabi. “First, non-OPEC production is going to go up, modestly. But the big difference is that OPEC’s production of natural gas liquids increases, by 800,000 barrels a day.”

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aePS_yr3mlYo

India Stocks Are ‘Most Vulnerable’ to Rates, Goldman Sachs Says
(Bloomberg) -- Indian stocks may be most at risk of a “tactical correction” from rising interest rates after China restrained lending, dragging equities lower last week, Goldman Sachs Group Inc. said. The Reserve Bank of India may increase its repurchase and reverse repurchase rates and cash reserve ratio at a Jan. 29 meeting, the first increases since July 2008, Goldman Sachs analysts led by Timothy Moe wrote in a Jan. 15 report. India’s wholesale prices may rise 5 percent in the 12 months ending March 2011 from 3.4 percent this year, they estimated.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aMfgi04jqOPY