Market Gazer Hong Kong - Japan - Germany - UK - North America
market review : global thus hurt the market sentiment. The
Nikkei 225 fell on Friday while other
indexes ended positive at the end of the
week. Nikkei fell 94.65 points or 0.99% to
9,471.67 as the market was rife with
speculation over whether the Bank of
Japan has intervened again to weaken the
yen against the greenback. Hang Seng
Index ended positive at 22,119.43, after
returning from holiday on Thursday. The
Chinese market was still closed for holiday
and set to re-open on Monday.
In Europe, both DAX and FTSE 100 indexes
ended with hefty gains. DAX settled at
6,298.30, up 113.59 points or 1.84% and
FTSE 100 index ended at 5,598.48, adding
51.40 points or 0.93% higher than
Thursday’s close. US shares ended higher
sharply higher as well, with the Dow Jones
Index settled at 10,860.26, up 1.86%,
Nasdaq Composite advanced 54.14 points,
or 2.33% to 2,381.22, and S&P 500 index
climbed 2.12% or 2.20 points to 1,148.67
by the end of the day. Despite uninspiring
US housing data, the durable goods data
was more than enough to boost shares
higher.
Did Japan intervene in the
currency market on Friday?
Finance Minister Yoshihiko
Noda refused to comment,
but the yen slumped against the dollar as
USDJPY jumped from ¥84.90 to¥85.40.
The confusion struck Nikkei average, while
in middle of it the Bank of Japan Governor
Masaaki Shirakawa was rumored to step
down, adding even more confusion and
24 September 2010
rumor was denied by the BOJ, however.
Disputes between Japan and China were
also a drag to the Japanese shares
performances.
New home sales were stagnant in the US
throughout August at 288k. The market
expected the reading at 295k after
previously in July the sales fell 7.7%. The
earlier durable goods data however,
showed that total orders were down 1.3%
in August, reversing a rise of 0.7% and
worse than the consensus of a 1% decline.
Excluding transportation items however,
orders advanced 2%, reversing a decline
of 2.8% in July, and better than the
expected rise of 1.0%.
Earlier in Europe, the Ifo index for
Germany showed that business climate
inched higher from 106.7 to 106.8 in
September, against the expected fall to
106.4. Current assessment index was also
improving from 108.2 to 109.7, better
than the expected decline to 108.7.
September expectations index slipped
however, from 105.2 to 103.9. Slightly
below the consensus reading of 104.0.
Nippon Steel Corp.
warned that the yen’s
strength and the expiry of the
government economic stimulus on eco-
friendly cars in Japan were the risk factors
that could hurt demand. China’s move to
reduce stocks was also causing a decline
in prices in Asia. Shoji Muneoka, the
company’s president indicated that the
company will not reduce prices of its
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 Market Gazer Hong Kong - Japan - Germany - UK - North America
products in 2H (October-March) because
the higher materials costs in 1H have not
been fully passed at the moment.
Domestic demand, added Muneoka, is
likely to stay flat at best. Nippon Steel
ended down 2.41% at ¥284.
Commonwealth Bank of Australia has
upped its stakes in China Telecom from
9.96% to 10% on September 20th. About
5,650 million of shares were bought by
the bank for HK$24.20 million at
HK$4.284 per share. The shares ended at
HK$4.19 on Friday, up 1.45%.
BMW AG was upgraded
from NEGATIVE to STABLE
by Moody’s. The ratings
service cited significant
improvements in operational
performance and credit conditions in 1H
2010 as the factors behind the upgrade.
BMW was at €50.35, up 4.26% on Friday.
Daimler AG’s 7 billion-euro refinancing
will cut the company’s borrowing costs.
The German automotive giant has
improved its credit risk after the
company’s improved performance in the
last 12 months. The shares soared 4.03%
on Friday as it ended at €46.13.
AT&T expanded its coverage
to Chenango County as it
began activation of four new
cell sites, according to the
company’s announcement on Friday.
AT&T added 0.25% to end at $28.58.
24 September 2010
Motorola, Inc. will hold a secial meeting
for its stockholders on November 29th
2010 to discuss for a reverse stock split of
the company’s common stock. The ratio
will be around 1-for-every-3 to 1-for-
every-7. The stock split is to be
implemented on Motorola Solutions’
common stock when the company has
been split at the beginning of 2011.
Bank of America was
initiated at MARKET
PERFORM by JMP Securities. The shares
ended higher at $13.60, rising 3.26%.
week ahead
Week ahead will be light within the first
half, but Thursday and Friday will be full of
key data such as US GDP, jobless claims,
Chicago Purchasing Manager index,
personal consumption expenditure,
personal income and spending, U. of
Michigan confidence index, and also ISM
for the manufacturing sector. Another
housing data from S&P/Case-Shiller will
also be released on Tuesday.
Europe will be busy with PMI data as well
coming from Germany, Eurozone, UK, and
Italy. Unemployment data from Germany
will also due. In Asia, Japan’s trade
balance, industrial production and retail
sales will be scheduled for release. The
focus however, will be on the Tankan
index due Wednesday.
Disclaimer: This report is provided for information purposes
only. It is not an offer to sell or to buy any securities. This
report has been prepared based on sources believed to be
reliable, but there is no assurance or guarantee regarding its
completeness & and accuracy. The author accepts no
responsibility or liability arising from any use of the report.
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