Thursday, January 10, 2013

Weak, Euro Pressured Ahead of ECB Meeting

Weak, Euro Pressured Ahead of ECB Meeting. Until the European trading session took place on Thursday (10/01), the single currency euro still appeared to be in the range of negative after two consecutive sessions weakened against the USD ahead of the meeting (meeting) of the European Central Bank (ECB) this afternoon. Although analysts predict the ECB will keep interest rates low in the range, a number of investors and economists remain convinced that the rate cuts may still occur during the year 2013. The euro is now monitored and stabilized at 1.3061 area had only climbed up to 1.3074, in contrast with the high level session recorded at 1.3095 yesterday. Today the market is also wary of the emergence of a negative tone at the press conference after the ECB President Mario Draghi announced the interest rate, because it could potentially affect sentiment towards the euro.

Estimated ECB Interest Rate Unchanged

European Central Bank (ECB) is expected to keep interest rates at a record low rate at 0.75% on Thursday, refrain from pruning as the economy showed signs of stability in the euro zone and inflation remains a prime target. 17 members of the euro zone is in recession, but some recent data suggest that economic stability ECB President, Mario Draghi is likely to give more positive comments at the press conference post the ECB's monetary policy-setting. The results were compiled by Reuters poll also showed that ECB interest rate fixed, even though there is still an indication of a recession, but further weakening is not visible, the level of borrowing maish weak, but not declining consistently so the ECB is likely to remain on hold

Morgan Stanley release Workers

Morgan Stanley plans to lay off employees 1.600. Termination of employment is part of the initial steps were taken in this major investment bank. This action follows an in-depth evaluation performed against Wall Street business conditions in the face of new regulations and capital standards. Morgan Stanley, which was recorded as the largest U.S. bank by assets plans to begin trimming workers. Pruning begins working in the security sector starting this week, according to two sources close yesterday (09/01). Third parties involved in this plan and other big banks said this plan has been discussed for several months and is expected to take a long time. Previous Morgan Stanley had to cut workers when the financial crisis hit the U.S. housing market. Bank was focused on trimming workers in areas where activities have been halted as mortgage insurance or sector weighed down by new regulations such as proprietary trading.

Morgan Stanley is currently making strategic decisions about business conditions in the "gray zone" in which the team management did not see a great advantage or after learning that they are not competitive individual bank, the 3nd source. It is difficult to perform this action. However, the management team must be realistic and make the decision to get out of the business and to cut more staff. So far, banks have faced a big decision this is Swiss bank UBS AG, which in October banks decided to halt trading of bonds and cut 10.000 workers.

Oil Post Strong China Data

Crude oil rose in today's electronic trading session on Thursday (10/01). Reinforcement occurs after data China's exports rose more than expected and sparked investors' interest in buying risky assets. Oil still able to strengthen despite dollar exchange rate also remained strong. Contracts light-sweet crude for February delivery rose 41 cents, or 0.4%, to $ 93.51 per barrel. Price was down 5 cents at the NYMEX regular session last night, after supply data and distillate fuels rose above U.S. estimates.

Strengthening these days occurs after official data showed china country's annual export figures jumped 14.1% in December. The ratio of the increase in exports was greater than hope and increase the amount of trade surplus to $ 31.6 billion. China imported 23.67 million tons of crude oil in December, or more than the previous record month (23.37 million tonnes). The ICE Dollar Index, which is a parameter of the exchange rate of USD against six major currencies, was observed at 80,598 or more powerful than the record yesterday, 80,514. Until this story was written, the price of crude is seen at the level of $ 93.71 per barrel.

Session II Hang Seng Technical vulnerable to a correction

Until well into the second session of trading on Thursday (10/01), the Hang Seng Index traded higher apparent after the morning session China government reported export figures in December to appear higher than expected and jumped from the previous month previous. The Hang Seng Index rose 0.72% now recorded and are in the range 23384.57 +167.43 points, or as much, while the Hang Seng futures rallied 0.85%, or the points at +197 in the area of ​​23 400.

A number of stocks listed in Hong Kong and China is sensitive to economic conditions, strengthened after the data was released. Noted New World Development Co shares. rebound to 3.4% and Wharf Holdings Ltd.. rose 1.4%. In addition, the banking sector helped to strengthen the Bank of China Ltd.. rallied 1.2% and Bank of Communications Co. rose 0.7%. Entering into the second session, the Hang Seng still appeared vulnerable to a correction factor for the Stochastic indicator of duration 1 hour (H1) was in overbought zone and has maneuvered downtrend.

So the decline will be dominant to support 23 370 and 23 275 (23.6% retrace of Fibonacci) even to enter the second session today. Meanwhile, confirm bullish MACD visible index will deliver to the least resistant up to 23 700 23 650 23 570 then.

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