Update Daily Investment News

JPMorgan’s Lee Says S&P 500 May Top 1,300 by Year-End
(Bloomberg) -- The Standard & Poor’s 500 Index may surpass 1,300 by the end of this year as the economy gathers momentum, said Thomas J. Lee, the chief U.S. equity strategist at JPMorgan Chase & Co.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aYWuGRfC.WtU

Investors Pull $37 Billion From Money Market Funds, EPFR Says
(Bloomberg) -- Investors pulled $37 billion out of money market funds in the week ended Feb. 17 and pumped cash into global stock and bond funds, EPFR Global said in a statement.
Funds invested in global stocks tracked by the company took in $3.69 billion in the period, while those focused on global bonds took in $3.48 billion, according to the research company. Emerging market funds posted the first inflows in four weeks, EPFR said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aA8sHmnRjg3c

S&P 500 to Climb After Breaching 1,093: Technical Analysis
(Bloomberg) -- The Standard & Poor’s 500 Index is likely to rise further after breaching the 20-day moving average at 1,093, according to technical analysts at UBS AG. The S&P 500 rallied 1.8 percent to 1,094.87 yesterday, the biggest increase in three months for the U.S. benchmark index. Zurich-based analysts Michael Riesner and Marc Mueller had written in a report before the start of New York trading that such a move would indicate “a reliable entry point for tactical longs.”
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aG91XdVP4o0o

Look Ahead: Fed's Move Will be Talk of Friday's Markets
By: Patti Domm CNBC Executive Editor
The Fed surprised markets just after the New York close Thursday by hiking the rate banks pay for emergency loans by a a quarter point to 0.75 percent, a first step on the road to unwinding the programs it used to fight the financial crisis.
http://www.cnbc.com/id/35470054

Dr Doom: China Will Drag Down US Stocks By 20%
By: Lee Brodie Producer
In a rare interview, one of the Street’s most influential strategists sounded the alarm about the next leg down. And the trouble will likely start overseas, that’s according to Marc Faber, author of the “The Gloom Boom & Doom Report"
http://www.cnbc.com/id/35444726

Platinum Targets 2-Year High After Declines: Technical Analysis
(Bloomberg) -- Platinum may rally to $2,000 an ounce, presenting a “good buying opportunity” after a recent drop, Mizuho Corporate Bank Ltd. said, citing trading patterns. If the metal closes at more than $1,555 an ounce at the end of a month, the bullish momentum should increase, according to a note yesterday from Nicole Elliott, London-based senior technical analyst at Mizuho.

Dollar to Reach 6-Week Yen High on Triangle: Technical Analysis
(Bloomberg) -- The dollar will strengthen to a six- week high versus the yen as a so-called triangle pattern signals a reversal of this year’s declines, according to Bank of Tokyo- Mitsubishi UFJ Ltd. The dollar’s 21-, 65- and 90-day moving averages against Japan’s currency have converged around 90 for the past two weeks, according to data compiled by Bloomberg. This comes amid a triangle pattern signaling that the current trend is coming to an end, said Sumino Kamei, a Tokyo-based senior analyst. The triangle is formed by the ascending trend line, which connects the low of Nov. 27 to the low of Feb. 4, and by a descending line, which connects the Jan. 8 high to the Feb. 3 high.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a9.GeHPkDLPM

Golden Cross May Indicate Dollar Index Gain: Technical Analysis
(Bloomberg) -- A “golden cross” of two moving price averages of the Dollar Index for the first time in 18 months indicates that the rally in the greenback may accelerate, Auerbach Grayson & Co. and Brown Brothers Harriman & Co. say.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ai4IGYIsClxY

Gold May Advance to $1,400 in 12 Months: Technical Analysis
(Bloomberg) -- Gold may climb to about $1,400 an ounce in the next 12 months, according to technical analysis by Chartered Market Technician Daniel Bruno, who advises banks and hedge funds.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=auBQnoSvlsEk

0409 GMT [Dow Jones] USD/IDR retreats from session high as Bank Indonesia suspected of selling near IDR9,350-IDR9,360 to stem IDR's fall, say dealers. Pair last at 9,355 vs intraday high at 9,365. Dealers add Bank Indonesia likely sold $25 million-$50 million; tip 9,340-9,390 immediate range.

0335 GMT [Dow Jones] Spot gold at $1,105.20/oz, down $2.90 since NY close, but off its intraday low of $1,099.73. Federal Reserve decision to raise discount rate by 25 bps to 75 bps late Thursday knocked gold lower but looks resilient at current levels, says Wong Eng Soon, analyst at Phillip Futures in Singapore. "Any correction will be short term. The feeling is there is more upside potential," he says. Notes buying interest strong at $1,100 and especially $1,050 level where India's central bank purchased 200 tons of IMF gold in November. Adds, $34 billion drop in China's US treasury holdings in December has helped sentiment for gold. "That money is going somewhere and gold could be a major beneficiary," he says. IMF gold sale re-announcement yesterday concerned 193 tons of gold, worth around $6.8 billion at current prices.

0316 GMT [Dow Jones] Indonesia shares last off 0.6% at 2543.69 in light volume, weighed by weak IDR, falls in several Asian markets due to weakness of U.S. stock futures after Fed hikes discount rate by 25bps; support at 2530. "Overall, it's mild selling and it looks like the market will soon be recovering given Indonesian economy remains solid," says trader at First Asia Capital; expects bargain buying later in session to offset index losses. Among decliners, tin miner Timah (TINS.JK) down 2.4% at IDR2,075, coal miner Bumi (BUMI.JK) off 2.2% at IDR2,275, while heavyweight Telkom (TLKM.JK) down 1.2% at IDR8,600.

0318 GMT [Dow Jones] Comments from Fed's Lockhart, Bullard should dispel any false illusions that discount rate hike portends a nearer-term monetary tightening, says Mizuho Corporate Bank senior market economist Daisuke Karakama. Atlanta Fed President Lockhart earlier says he wouldn't interpret central bank's move on discount rate "as a tightening of monetary policy or even a sign that a tightening is imminent"; FOMC member Bullard says policy rate hike may not come until 2011. "The comments reflect the reality that the hike in the discount rate is just a kind of normalization of an emergency liquidity measure, and has no bearing on monetary policy," Karakama says; adds this "somewhat difficult distinction" may be given short shrift, particularly if any further improvement in economic data fuels more USD-positive speculation for nearer-term tightening. "But we've got to take Fed official comments at face value, and as that sinks in, it should weigh on the dollar." By end March, looks for USD/JPY "at levels below Y90.00" vs last 91.78, while EUR/USD could rebound to 1.3900 vs 1.3486.(

0220 GMT [Dow Jones] Nikkei ends morning session down 0.7% at 10,259.43, extending losses after flirting above/below breakeven early. Weakness of U.S. stock futures on Globex, Hong Kong bourse weakness spur profit-taking and some speculative selling, says Yumi Nishimura, Daiwa Securities Capital Markets deputy general manager. "Traders are waiting to see how U.S. stocks will move (later today) and how Shanghai stocks will re-open Monday," she says. Expects support for Nikkei for rest of session at 10,200. 30/33 Topix subindexes lower, with real estate firms (down 2.9%), trading houses (down 1.5%), construction firms (down 1.5%), iron & steel (down 1.2%) particularly weak. Among real estate names, Mitsui Fudosan (8801.TO) down 3.8% at Y1,469 and Mitsubishi Estate (8802.TO) down 3.0% at Y1,373. Trading houses Mitsui & Co. (8031.TO) down 2.5% at Y1,361 and Itochu (8001.TO) down 1.9% at Y709. USD/JPY trading 91.82 following US Fed discount rate hike to 0.75%.

0223 GMT [Dow Jones] Citi keeps call that RBA will remain on hold in March, resuming the tightening cycle with a 25bps hike in April or May after Governor Steven's testimony to Parliament earlier today. Citi notes there's very little new in day's comments, which included talk of 2-speed global recovery, moderating inflation outlook, tightening trajectory down track, reiterated positive economic story for Australia.

MEMPHIS (Dow Jones)--The president of the St. Louis Federal Reserve Bank said Thursday that the possibility that the U.S. central bank will raise its key interest rate is "overblown," at least for now. An increase in the short-term federal-funds rate is "just as far away as it ever was," said St. Louis Fed President James Bullard. Speaking to reporters following a speech to the Economic Club of Memphis, the Fed official said that financial markets are probably pricing in too high of a probability that the funds rate will rise this year. It's more likely, said Bullard, that the Fed will boost the funds rate in 2011.

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