The German DAX, is up nearly 20% for 2010, and continues to look vibrant. The German Index is technology heavy, and similar to the US NASDAQ is showing signs of continued strength.
Last week, a slightly worse than expected GDP, might create some doubt in the minds of investors with regard to the strength of the Germany export lead economy. German GDP grew 0.7% in third quarter from the previous three months, down from 2.3% growth in Q2 and below the 0.8% expected rate. In addition, Euro zone third quarter GDP growth slowed to 0.4% q/q suggesting that the euro zone pace of growth is moderating. The slowdown is slightly behind the market consensus and nearly half the pace of last quarter’s 1%. Continue reading
Just as Apple was poised to take the top spot as the US largest company, Exxon XOM, had a spectacular October/November rising from 62 to 70. The 13% rise is one of the best in 6 weeks that the bell weather oil stock has even had.
Exxon had excellent earnings during the third quarter of 2010, beating analysis estimates just as the underlying equity markets began to rise. Exxon garners most of its gains from high oil prices. Price of WTI crude oil has also moved higher, just as Exxon began to break out to the upside. Oil prices moved above the 84.50 resistance level and prices are currently trading between 86-87. Continue reading
With all of the issues that are facing the Euro zone, it is amazing that consumers and investors are so optimistic in Germany. Last week, the German IFO, showed a better than expected overall number, which reflects enthusiasm in the European economic situation.
The IFO, Information and Forschung (research) is a non-profit association. Continue reading
As the US launches into the Holiday shopping season on Friday, Apple Inc., creates the products that are at the top of many people’s gift list.
Apple manufactures PCs, MP3 players, smart phones, software and peripherals for a worldwide customer base. Its products the iPod MP3 line, the iPhone, the iPad, and various consumer products. Apple derives 40%-45% of its revenue from the Americas, 20%-25% from Europe/MEA, 4%-6% from Japan, 8%-10% from Asia-Pacific, and 15%-18% from its own retail stores. Continue reading
The EUR/YEN cross continues to tradunbg in a tight range between 115.68 and 111.04. The currency pair priced right in the middle currently, and is poised to make a run to one side or another. The break to the upside seems more likely, but the issues surrounding the European peripherals debt, will continue to make any Euro cross volatile. Continue reading
The price for WTI crude oil has come down remarkable quick over the past 5 trading sessions. Crude oil has fallen off, as China has announced that it will consider placing price curbs, to reduce the cost of commodities. At the same time the dollar has move up, removing value from assets that are priced in dollars.
Finding the value of WTI, given the current state of the US economy is difficult, but the FOMC has made the case for a asset purchase program that will create inflation. One of the key ingredients in inflation is the price of petroleum products. Continue reading
Combinations a strong manufacturing survey’s are pushing the S&P 500 Index above trend line resistance. The NASDAQ market has already lead US equity markets higher, and there are many economic and monetary data points still to come this week. Continue reading
Oil prices continue to remain robust, and are in the process of consolidating prior to making a move. Oil prices have been driven by a combination of economic news that is positive out of Asia, a weak dollar, and the fundamental information that is available in the US.
Last week, the Peoples Bank of China increased interest rates in a pre-emptive move prior to the release of a deluge of economic data, which included, GDP, Retail Sales and Inflation. The GDP in China continues to grow as a solid rate, moving up 9.6% on a year over year basis. Retail Sales increased by 18.8%, which was also better than analysts’ expectations. Continued strong growth out of the world’s second largest economy, is a good reason for oil prices to remain high. Continue reading
In a very stead and solid manner, the dollar has been consolidating and is ready to regain some of its recent losses. The USD/JPY moved from the 94 level to the 80 level over the last 6 months without stopping or even resting. A market participants prepared for the FOMC to announce its QEII, the dollar was punished even further, but it was not the US that was hurt by the rise in the Yen is was Japan. Continue reading
The pause that refreshes:
The Euro has moved up dramatically and touched 1.40 before consolidation took over along with some profit taking. There are a number of factors that have contributed to the rise in the Euro, including a weakness in US yields (and the dollar), and a lack of desire from the ECB to continue its current bond buying program. Continue reading