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luni, 12 septembrie 2011
European Factors-Shares set for steep fall on Greece worries
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luni, 5 septembrie 2011
GLOBAL MARKETS-Stocks, euro slide on recession worries
By Natsuko Waki
LONDON, Sept 5 | Mon Sep 5, 2011 3:33am EDT
LONDON, Sept 5 (Reuters) - World stocks fell to a one-week low on Monday and the euro hit a three-week trough against the dollar as investors worried the U.S. jobs market may be beyond easy repair and Europe faced a series of risks that would reignite its debt crisis.
A week packed with political and legal challenges begins with the German Federal Constitutional court ruling on Wednesday on suits claiming Berlin is breaking German law and European treaties by contributing to multi-billion euro bailouts of Greece, Ireland and Portugal .
Data on Friday showed U.S. employment growth ground to a halt in August, sending Wall Street sharply lower . With the jobless rate stuck at 9 percent, President Barack Obama and the Federal Reserve are under pressure to provide more stimulus to aid the frail recovery.
"Jobs have been front and centre of this whole recovery debate. The problem is that there simply hasn't been any meaningful jobs growth, which is precisely why markets are so worried about slipping back into recession. The authorities have thrown a lot of stimulus at the problem and to date, it's basically done nothing," said Ben Potter, strategist at IG Markets.
"One of the major reasons why markets are going to struggle to move higher any time soon is the fact that there simply isn't any clarity as to how and where these jobs may come from. Markets are realising that there probably isn't a lot more authorities can do."
MSCI world equity index fell 1.4 percent on the day. It is just over 4 percent above an 11-month low hit during market turmoil in early August and has lost nearly 10 percent since January.
European stocks fell 2.2 percent while emerging stocks lost 2.3 percent.
U.S. crude oil CLc1 fell 1.8 percent to $84.92 a barrel.
Bund futures FGBLc1 rose 82 ticks to a record high.
The dollar rose 0.4 percent to set a one-month high against a basket of major currencies.
The euro fell 0.3 percent on the day to $1.4124.
As many European financial institutions are saddled with losses on bond holdings, traders are also worried that their funding could face more strains, putting pressure on the euro.
"Countries that need help are getting tired of reforms. Countries that are paying money are getting tired of helping," said Kimihiko Tomita, manager of forex at State Street. "The outlook of the euro zone bailout scheme is becoming a bit shaky." (Editing by Patrick Graham)
FTSE roiled as China survey adds to growth worries
* FTSE down 1.6 percent
* Commods fall on downbeat China services data
* Banks down on Moody's warning, U.S. subprime risks
By David Brett
LONDON, Sept 5 (Reuters) - Miners led Britain's top share index sharply lower on Monday after downbeat data from China, on the back of Friday's poor U.S. jobs figures, heightened concerns the economy may fall into recession.
The UK's benchmark index was down 84.59 points or 1.6 percent at 5,207.44 by 0751 GMT, extending the previous session's 2.3 percent sell-off and tracking sharp declines overnight in Asia and on Friday on Wall Street.
Investors still reeling from Friday's disappointing U.S. non-farm payrolls, which showed no jobs growth in the world's biggest economy in August, faced more pain as a survey showed China's fledgling services sector grew in August at the lowest pace on record.
That further darkened the outlook for commodities, prompting a flight from risk out of the mining sector , which relies heavily on demand from the world's hungriest consumer of commodities.
Antofagasta and Kazakhmys were the top fallers among the miners, shedding 3.5 and 3.4 percent, respectively.
Banks were also hit with Barclays , Royal Bank of Scotland and Lloyds Banking Group up to 5.4 percent lower as Credit rating agency Moody's said it was still reviewing several leading British banks for a possible downgrade.
Meanwhile, newspaper reports said UK banks could be forced to pay out more than 5 billion pounds ($8.1 billion) in damages related to the subprime mortgage scandal in the U.S.
London's blue chip index pared gains made at the start of last week when investors had hoped that the poor economic data, particularly from the U.S., would spell the start of a fresh round of economic stimulus in order to boost flagging growth.
"The reason for the upturn in sentiment was seemingly based on the view that the U.S. was about to switch the quantitative easing life support back on," said Lothar Mentel, chief investment officer at Octopus Investments, which manages $4 billion.
That hope, however, has now turned to fear as the downbeat economic data shows no sign of abating and investors are unconvinced policymakers have anything left in their arsenal to fire growth in the global economy.
"Rather than relying on more of the same in terms of QE, we'd prefer to see something more encouraging and positive come from President Obama in his post-Labour day address," added Mentel.
U.S. President Barack Obama, in a speech set for Thursday, will unveil a jobs program he hopes will provide "meaningful" tax relief and help the nation's long-term unemployed, a top aide told Reuters Insider.
No U.S. data will be released on Monday, with U.S. equity markets closed for the Labor Day public holiday. On the domestic data front, August's Markit/CIPS services PMI will be released at 0828 GMT, with a reading of 54.0 forecast, down from 55.4 in July.
BROKERS CAUTIOUS
In a bleak assessment of current market conditions and the tough outlook facing corporates, UBS initiated coverage on global equities with an "underweight" stance.
"Given the deterioration in economic and policy fundamentals, we find it difficult to see why equity markets should trade at more elevated levels than their summer lows," UBS said in a note.
The broker said that in addition to the challenging macro backdrop, investors would have to deal with falling earnings expectations and therefore it retained its preference for "quality" stocks.
The broker moved to an "underweight" rating in financials and materials and moved consumer staples to "neutral". It kept its "overweight" rating on tech, healthcare, and telcos.
Credit Suisse too opted for safety first saying its strategists' sector allocation tended to reflect protection from the visible risks.
The safety first option taken by investors has seen bonds in Germany and the U.S. well supported in the last couple of days -- on the likelihood that the Federal Reserve would make new bond purchases. Gold has crept back towards its record highs around the $1900 mark.
That has provided support for Randgold Resources , the only FTSE riser, up 0.2 percent as investors bought the gold miner as a proxy for the precious metal. ($1 = 0.617 British Pounds) (Editing by Jon Loades-Carter)
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