Update Daily Investment News

S&P May Downgrade Greece Within a Month on Risks to Budget Plan 
Standard & Poor’s may downgrade Greece’s credit rating again by the end of March as a weak economy and political opposition threaten the country’s ability to cut the European Union’s largest budget deficit.
http://www.bloomberg.com/apps/news?pid=20601087&sid=abuLTVWwK_YA&pos=3

0507 GMT [Dow Jones] Indonesia shares down 1.4% at 2542.594 midday in light volume, weighed by falls in many Asian markets, weak IDR, traders say; tip support at 2530. "Some investors also prefer to take cash ahead of long weekend," says trader at First Asia Capital. Indonesian markets will be closed Friday for holiday. Foreigners net sellers of IDR516 billion worth of shares. Among decliners, carmaker Astra (ASII.JK) down 2.5% at IDR35,900 on profit taking after gaining more than 4.0% over previous 5 sessions, Bank Mandiri (BMRI.JK) off 1.7% at IDR4,475, while coal miner Bumi (BUMI.JK) down 1.1% at IDR2,250.

0357 GMT [Dow Jones] Nikkei down 0.7% at 10,123.67 after setting fresh intraday low of 10,108.80 about 17 minutes into afternoon session; yen strengthening sinking market (USD/JPY now 89.57), with Sony (6758.TO) down 2.1% at Y3,045 and Panasonic (6752.TO) down 2.1% at Y1,247. "Stronger yen fears won't ease any time soon," says Nikko Cordial senior strategist Tsuyoshi Kawata; selling pressure on dollar growing as near-term U.S. interest rate hike becoming less and less likely, he says. Adds, if psychological support at 10,000 breaks, next support for Nikkei will be 2010 closing low of 9932.90 recorded Feb. 9.

0352 GMT [Dow Jones] China shares stay higher midday in modest trade, led by real estate companies. Shanghai Composite Index +1.0% at 3053.54, expected to test resistance of 3,080 (120-day moving average) in afternoon. "But it's difficult for the benchmark Shanghai Composite Index to stay well above 3,100 before the annual meeting of China's legislature ends," says Shanghai-based fund manager at state-owned bank's asset management firm; China's two-week legislature meeting, a platform for government officials to debate economic policies, will start March 5. Real estate plays extend gains on state-run China Securities Journal report regulators may resume approvals for equity fundraising by listed developers soon after a temporary halt: China Vanke (000002.SZ) +2.1% at CNY9.42, Poly Real Estate Group (600048.SH) +2.2% at CNY19.78. Shenzhen Index +1.3% at 1168.76. (

0258 GMT [Dow Jones] Spot gold at $1,096.80/oz, down 40 cents since New York close and with EUR moves the main influence, says Singapore based trader at European Bank. Adds, close below $1,100 not that significant; says February 5 low of $1,045 the technical line in the sand. "It doesn't feel that bearish at the moment but if the euro drops to $1.30 maybe we could see a test of that level ($1,045)." Adds, overhang from announcement of IMF sale of 193 tons hurting sentiment with suspicion that buyers looking for lower price to lock in the gold. Reserve Bank of India bought IMF gold at $1,045 level in November.

0259 GMT [Dow Jones] Kospi down 0.6% at 1603.39 in light volume, off early high of 1621.84, due to foreign, program selling; but local retail investors net buyers so far, preventing further fall. "Sentiment turned bearish as foreigners sold stocks even after U.S. stocks rose overnight," says Kwak Joong-bo at Hana Daetoo Securities; also cites Korea's first current account deficit for 12 months in January as negative, though expects negative impact to be short-lived as Korea's current account likely to return to surplus following brief dip into deficit. Kospi tipped to hover around 1600 for while. Most large-cap techs lower on program selling, foreigners' continued profit-taking with Samsung Electronics (005930.SE) down 1.2% at KRW743,000. Woori Finance (053000.SE) down 1.5% at KRW13,300, shrugging off block sale news. Hyundai Motor (005380.SE) still +0.9% at KRW115,000, Daewoo International(047050.SE) also +0.1% at KRW36,900.

0254 GMT [Dow Jones] Declines in EUR, GBP vs majors earlier partly due to Wall Street Journal article highlighting risks that Spain poses to EUR, say several dealers in Tokyo. Though there's no fresh news or data in article, it was enough to spook investors on quiet trading day. WSJ says "the euro zone's No. 4 economy, Spain has an unemployment rate of 19%, a deflating housing bubble, big debts and a gaping budget deficit....leaving Spain in its deepest and longest recession in a half-century." Credit Agricole head of FX Yuji Saito says report helped drive EUR-crosses lower, hitting stop-loss sell orders, which accelerated drops. EUR/USD last at 1.3496, may fall to 1.3450; EUR/JPY last at 121.12, may fall to 120.50; GBP/USD last at 1.5378, may fall to 1.5350; GBP/JPY last at 137.98, may fall to 137.50, dealer at major Japan bank says.

Crude Oil Price Set to Rise to Mid-$80s: Technical Analysis
(Bloomberg) -- Crude oil futures are “well positioned” to rise above $84 a barrel, according to technical analysis by Newedge Group.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aTPu68d3hm0Q

FTSE 100 Futures Rally May Stall on Volumes: Technical Analysis
(Bloomberg) -- FTSE 100 Index futures may end a two-week rally as volumes fail to advance with prices in a so- called classic technical divergence, according to analysts at Commerzbank AG.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ahrZHSY0F18o

Silver May Drop 11% to $14, Barclays Says: Technical Analysis
(Bloomberg) -- Silver, the worst-performing precious metal this year, may drop as much as 11 percent to $14 an ounce, according to technical analysis by Barclays Capital.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a7tAJPXYNrFI

Gold Rebound Should ‘Soon Run Out of Puff’: Technical Analysis
(Bloomberg) -- Gold’s rally to the highest level in a month should end “soon” after it reached a resistance level, Commerzbank AG said, citing trading patterns.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4RDpwl49NDc

U.S. Market Total Short Interest by Industries as of Feb. 12
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aZuMykcZesnk

Hedge Funds Lure More Cash From Pensions as Benefit Gap Looms
(Bloomberg) -- Florida’s state pension system, manager of $112 billion for a million firefighters, teachers and garbage collectors, is set to decide next week on the size of its first investment in hedge funds.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aUCOlAxvY7BE

Hedge Fund Assets May Rise 14% in 2010 as Rules Buoy Confidence
(Bloomberg) -- Hedge fund assets may climb 14 percent this year as proposed regulations ease the concerns of risk-averse investors, according to Eurekahedge Pte.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEy_Lc4Deytk

Correction Coming, but You Can Still Invest: Econ Strategist
By: JeeYeon Park CNBC News Associate
A correction is “clearly on its way,” but investors can still make money in this market environment, said Enzio von Pfeil, CEO of EconomicClock.com. He shared his market strategies.
http://www.cnbc.com/id/35559026

Market to Rise 10%—Buy Techs & Banks: Stock Picker
By: JeeYeon Park CNBC News Associate
Stocks rallied on Wednesday following a decline in equities over the previous two trading sessions, when major indexes posted their biggest losses since early February. How should investors be positioned? David Katz, chief investment officer of Matrix Asset Advisors, discussed his market strategy.
http://www.cnbc.com/id/35562333