Investors Trim Stocks Bets, Pile Into Cash: Merrill
(Bloomberg) -- Investors turned the most pessimistic on global equities in five months, as concerns about European sovereign debt prompted money managers to sell bank stocks and build up levels of cash, a BofA Merrill Lynch Global Research report showed. Respondents, who together manage $502 billion, scaled back their outlook for economic growth and moved to an underweight stance in European stocks for the first time since September. A separate regional survey for Europe showed fund managers were the most bearish on banks stocks since March.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=axcGBe0k18a0
Palm Oil Stocks Drop is ‘Buying Opportunity’: Standard Chartered
(Bloomberg) -- A recent decline in shares of palm oil producers is an “excellent buying opportunity” given the outlook for prices of the commodity, according to Standard Chartered Bank, which initiated coverage on seven stocks. The brokerage rated PT Perusahaan Perkebunan London Sumatra Indonesia, Indofood Agri Resources Ltd., Golden Agri-Resources Ltd., PT Astra Agro Lestari and Kuala Lumpur Kepong Bhd. “outperform” in new coverage. Sime Darby Bhd. and IOI Corp. were also rated “in line” in new coverage, according to a report by Standard Chartered analyst Adrian Foulger today.
S&P 500 May Retreat Below 200-Day Average: Technical Analysis
(Bloomberg) -- Declines by other countries’ stock markets and by individual companies suggest that U.S. equity benchmarks are likely to extend the past month’s retreat into a bear market, according to John Murphy, chief technical analyst at StockCharts.com Inc.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aUrdckz297bU
0350 GMT [Dow Jones] Standard Bank report says jump in canceled warrants at LME warehouses is positive sign for metals demand. "With anecdotal evidence suggesting that stocks of copper in bonded warehouse in China have fallen sharply over the past few weeks, all the signs point to a period of strong Chinese demand after the Chinese New Year," says note. Adds, premiums for copper in Singapore and South Korea doubled over past week to $50-$80/ton vs material in European locations which static at $30-40/ton. LME copper warehouse stocks rose 775 tons to 549,900 tons Tuesday but canceled warrants now total 16,400 tons indicating the inventory trend could be about to turn. LME 3-month copper at $7,130/ton, down $14 with a slim 154 lots done.
0319 GMT [Dow Jones] Don't let overnight rally in AUD/USD fool you, local currency is still range bound, says Darrel Forrest, head of institutional sales for OANDA Asia-Pacific. AUD/USD last 0.9006 after pushing above 0.9000 for first time in weeks in overnight rally for riskier currencies that also included euro. "We need a good strong close above 0.9000 to confirm this rally, but I'm not looking for that. I'm looking for volatility around 0.8800 to 0.9100," says Forrest. (GER)
0308 GMT [Dow Jones] Indonesia shares +0.6% at 2573.369 in moderate volume, helped by overnight gains on Wall Street, firmer IDR, while investors expect more companies to report strong 4Q earnings later this month, say dealers; resistance eyed at 2590. "Continued foreign buying in most blue chips has driven the main index higher despite sporadic profit-taking by local funds," says trader at Valbury Securities. Foreigners net buyers in local stock market so far, picking up IDR224 billion worth of shares. Among gainers: coal miner Bumi (BUMI.JK) +3.2% at IDR2,400, nickel miner Inco (INCO.JK) +3.3% at IDR3,875 on higher commodity prices, while food maker Indofood (INDF.JK) +2.0% at IDR3,800 on bargain buying.
0250 GMT [Dow Jones] Gold's February revival could stall around current levels, says Phillip Futures report; "markets remain uncertain and the release of central banks meeting minutes by the Bank of England and the Fed on Wednesday and Thursday respectively will likely impact currencies and gold prices. The recent surge in gold prices may prompt profit taking as well and resistance levels of $1,125 are unlikely to be breached," says broker. Spot gold at $1,115.90/oz, down $1.90 since New York close.
0231 GMT [Dow Jones] Nikkei ends morning session up 2.1% at 10,244.62, near intraday high of 10,257.74, on Wall Street's overnight rally and Hong Kong market strength after Lunar New Year holiday. "All external factors are looking positive and relieved investors are covering short positions," says Daiwa Securities Capital Markets deputy general manager Yumi Nishimura. Adds, buying of Toshiba (6502.TO) and other nuclear plant-related stocks on U.S. government's plan to back new plant construction also lifting broader market. Still, buying cues now mostly priced in and further rise may be limited, with index resistance around 10,300 for rest of session today. 32/33 Topix subindexes higher, with shippers (+3.4%), steel makers (+3.6%) leading market. Toshiba up 4.9% at Y448. Trading house Mitsui & Co. (8031.TO) up 4.4% at Y1,397. TSE 1st section volume still lacking robust volume, however, at under 830 million shares traded.
0223 GMT [Dow Jones] Deutsche Bank tips China to hike reserve requirement ratio by another 100 bps over coming 4-5 months, in order to control M2 growth at 17% this year (target recently unveiled by PBOC). "But the exact timing of the first rate hike (ahead) remains quite uncertain...due to the weaker-than-expected January CPI, (also) given the volatility of food prices and the changing behavior of depositors." PBOC says Friday it will raise reserve requirement ratio for banks by 50 bps, move to take effect February 25. Deutsche says move largely expected, thus less significant than first move a month ago.(
Stocks Will Ride Ongoing Cyclical Bull: Chief Strategist
By: JeeYeon Park CNBC News Associate
Stocks rallied on Tuesday after the Empire State Manufacturing Index rose past expectations, and on some positive earnings reports. How should investors be positioned going forward? Rod Smyth, chief investment strategist at Riverfront Investment Group, shared his investment strategies.
http://www.cnbc.com/id/35421574
Halftime Report: Europe Stabilizing Or Getting Worse?
By: Lee Brodie Producer
The Dow [.DJIA Loading... () ] jumped more than 100 points on Tuesday as regional manufacturing data and solid earnings from Merck [MRK Loading... () ] and Abercrombie [ANF Loading... () ] fueled investor optimism. However it's the action in the currency markets that has really captured the attention of the Fast Money traders.
http://www.cnbc.com/id/35409337
How Greece is Affecting Dollar, Oil & Gold: Experts
By: JeeYeon Park CNBC News Associate
How will the European debt crisis affect the currency and commodities markets this week? Adam Cole, director and global head of FX strategy at RBC Capital Markets, Tom Pawlicki, precious metals analyst at MF Global and Stephen Schork, editor of The Schork Report, shared their views.
http://www.cnbc.com/id/35370271
US 'Creative Accounting’ Could Repeat Greek Tragedy: CEO
By: Brooke Sopelsa Writer/Producer, CNBC.com
The US could end up with the same problems as debt-laden Greece if it does not get its spending under control and deal with its structural deficit, David Walker, president and CEO of the Peter G. Peterson Foundation, told CNBC.
http://www.cnbc.com/id/35422136
China May Raise Reserve Requirement Further, Credit Suisse Says
(Bloomberg) -- China, which ordered banks to set aside more deposits as reserves for a second time in a month, will probably raise the requirement further and boost interest rates by the end of 2010, Credit Suisse Group AG said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a9J0knTde7a8
International Demand for U.S. Financial Assets Slowed
(Bloomberg) -- International demand for long-term U.S. financial assets grew in December at a slower pace than a month earlier, as China sold U.S. government securities, a U.S. Treasury Department report showed. Net buying of long-term equities, notes and bonds totaled $63.3 billion for the month, compared with net purchases of $126.4 billion in November, the Treasury said in Washington. Including short-term securities such as bills and stock swaps, foreigners purchased a net $60.9 billion in December, compared with net buying of $30.7 billion the previous month.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1mKfP3W.Ang
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