Month: June 2013

When it comes to the equity market, the institutional mindset is useful; it’s equally as important as changes in Federal Reserve policy.

While examining views and portfolios of many large, buy-side institutions, I’ve been reading what could only be described as unscientific cautious optimism for the U.S. economy.

There is an expectation to further accumulate the equity market’s existing winners based on earnings growth and valuations. The buy-side is paid to play, but I read many views with these intentions.

This is including corporations like Wal-Mart Stores, Inc. (NYSE/WMT), Johnson & Johnson (NYSE/JNJ), PepsiCo, Inc. (NYSE/PEP), The Home Depot, Inc. (NYSE/HD), International Business Machines Corporation (NYSE/IBM), and even Berkshire Hathaway, Inc. (NYSE/BRK-A).

Sticking with the equity market’s existing winners does make sense for institutional buyers for a number of reasons: liquidity, earnings reliability, growing dividends, very strong balance sheets, and window dressing. Big investors don’t want to look like they’ve missed the equity market’s top stocks.

Everybody knows what can go wrong, but what’s most important for investors is how you structure your portfolio to deal with the investment risk.

Because of the equity market’s stunning performance since the beginning of the year, I view investment risk as being way up. I am very reticent about buying stocks right now.

But what is most important is what corporations are saying about their businesses and how the institutional mindset interprets it.

Last week, Costco Wholesale Corporation (NASDAQ/COST) reported another solid quarter of growth in sales and earnings. The company said its fiscal third quarter of 2013 (ended May 12, 2013) produced sales growth of eight percent, reaching $23.6 billion.

Comparable store sales (which black out gasoline and currency changes due to volatility) grew a solid seven percent. (See “Retail Stocks Find Big Success in the Great Outdoors.”)

Earnings rose 18% to $459 million, or $1.04 per diluted share. Membership fees (which are highly profitable) jumped to $531 million from $475 million comparatively.

All macroeconomic factors matter, but it’s still the value attributed to a corporation’s business conditions by institutions that drives equity market prices.

Costco’s earnings results were great. As a low-margin, mature corporation, membership fees are an important contributor to Costco’s earnings.

Like so many other corporations, the company’s cash and short-term investments grew nicely from $5.98 billion in the comparable quarter to $6.51 billion, making it likely that the corporation will offer up another dividend increase this year. April’s sales were up seven percent to $7.98 billion, compared to the same period last year.

This equity market will still reward the performance of growing corporations, and Costco’s latest numbers were certainly impressive.

Article by profitconfidential.com

Chinese stocks continue to be major underperformers this year—they have been for the past three years from 2010 to 2012. I must admit that having been a bullish supporter of Chinese stocks, it has been a major disappointment; but like everything in life, things will surely get better. I’m just not putting a timeframe on when Chinese stocks will regain their glory and outperform.

At this juncture, there is no evidence that the landscape for Chinese stocks will improve soon. The Shanghai Composite Index (SCI) is up a mere 2.12% this year, easily underperforming the S&P 500 and the Dow. Even the Nikkei 225 has blown away the SCI.

Just take a look at the comparison in the chart below of the SCI (as indicated by the red candlesticks) and the S&P 500 (as indicated by the green line). The purple oval on the right side of the chart shows the divergence forming between the SCI and the S&P 500 since around 2008, based on my technical analysis.

Chart courtesy of www.StockCharts.com

In the short- to medium-term of less than one year, the SCI will likely continue to underperform the U.S. key stock indices.

For Chinese stocks to come back, two things must happen:

First, China must make sure the Chinese economy doesn’t falter back into a tailspin. The new government, under President Xi Jinping and Premier Li Keqiang, must work to drive domestic consumption in the country to levels similar to those in the United States and Japan, where consumer spending accounts for about two-thirds of the countries’ gross domestic product (GDP). In China, domestic consumer spending currently only accounts for about 25%, so there’s plenty of work ahead.

To increase local spending, Chinese wages must rise. We are seeing this now, but it must continue in both the cities and the rural areas of China. A wealthier China means less dependence on exports and on what happens in the global economy.

China is estimated to show growth that will still far overshadow that of Japan and many parts of the global economy. According to the Organization for Economic Cooperation and Development (OECD), in its semi-annual Economic Outlook report, the agency reported that China is estimated to expand its economy by 7.8% this year, followed by 8.4% in 2014. (Source: “Global economy advancing but pace of recovery varies, says OECD Economic Outlook,” Organization for Economic Cooperation and Development web site, May 29, 2013.)

China is clearly stalling, as evidenced by key companies in the country. In its first-quarter report, Chinese infrastructure company Joy Global Inc. (NYSE/JOY) stated that “China’s economy has not been able to get traction and continued slowing has reduced the demand for coal. Electricity demand is growing at only half the rate of prior years, reflecting a significant deceleration in the economy.” (Source: Alva, M., “Coal Glut, Weak Demand Hit Mining Company Joy Global,” Investor’s Business Daily, May 30, 2013.)

I don’t think China will tank, but the country will continue to struggle to get back on track; albeit, it’s unlikely the country will ever be the way it used to be.

The key is patience, and there are better investing opportunities elsewhere in the world, including our own backyard. (Read “‘Year of Snake’ Favors U.S. Over Chinese Stocks.”)

Article by profitconfidential.com

By WallStreetDaily.com

Four-plus years into a bull market and stocks keep hitting new record highs.

The economy keeps recovering, too. Granted, it’s sluggish. But it’s a recovery, nonetheless.

And, of course, the Fed keeps promising to backstop the whole shebang with easy money and absurdly low interest rates.

So what’s not to like about the current market backdrop?

Well, finding bargains to profit from the continued boom keeps getting harder and harder.

In fact, the valuation boogeyman is lurking around every corner.

Beware of the P/E Creep

We know that stock prices ultimately follow earnings. But prices have gotten a little ahead of themselves.

Case in point: In the first quarter, S&P 500 companies reported earnings growth of 3.3%. Yet, on average, stock prices are already up 11.5% this year.

As Garth Friesen, Co-Chief Investment Officer at III Associates, says, “The whole move we’ve had in the S&P this year has been due to multiple expansion.”

Now, Mr. Friesen might be stretching the truth a tad. But not much. Take a look:

Since the beginning of the year, the trailing 12-month price-to-earnings (P/E) ratio for the S&P 500 Index has crept 12.6% higher, from 14.13 to 15.92 (as of Friday’s close).

As you can tell, the “multiple expansion” accelerated in recent weeks, too.

So with screaming bargains getting harder and harder to come by, what are investors doing? The absolute worst thing possible.

They’re going dumpster diving in hopes of finding an undervalued gem.

Don’t Join “The Dash for Trash”

A recent analysis by Bespoke Investment Group reveals that the 50 stocks in the S&P 500 with the highest short interest outperformed the 50 stocks with the lowest short interest. (So far this quarter, the former is up 12%, versus a decline of 5% for the latter.)

So investors are betting on the most shorted stocks, simply because their valuations might be beaten down relative to the broader market.

It’s a recipe for disaster. And Bespoke rightly labels the trend “the dash for trash.”

Whatever you do, don’t join it!

Instead, be patient and more selective. Take the time to unearth companies that trade in line with the market valuation, and benefit from accelerating sales and earnings growth rates.

Even if the current trend of a multiple expansion for the S&P 500 Index slows down or flat-lines, these companies will demand a much higher stock price in short order.

I’m about to reveal one such company to WSD Insider subscribers.

As we speak, I’m finishing up my research report on an under-the-radar and undervalued small-cap opportunity – one that could easily double in price by the end of the year.

It sells one of the hottest lines of specialty merchandise in the Southeast. And it won’t be long before the rest of the country catches on.

I plan to release the report next week. All you have to do to be included on the list is sign up here.

Bottom line: Finding bargains in the current market might require a little more work than in years past. But nobody ever said that stock picking is so easy a caveman could do it!

In all seriousness, as valuations start to get stretched and the average investor starts rotating into the stock market, now is the worst time to throw caution out the window.

Instead, we need to be more and more selective if we hope to boost our profits in the months ahead.

Ahead of the tape,

Louis Basenese

Article By WallStreetDaily.com

Original Article: The Biggest Dilemma Facing Investors Today

By www.CentralBankNews.info     Australia’s central bank left its cash rate unchanged at 2.75 percent, saying the current easy policy stance should help economic growth slowly strengthen but the current outlook for inflation “may provide scope for further easing, should that be required to support demand.”
    The Reserve Bank of Australia (RBA), which has cut rate by 200 basis points since October 2011, most recently by 25 basis points in May, said further effects of that easing can be expected over time but the pace of borrowing remains relatively subdued so far, though there has been some signs on increased demand for finance by households.
    In May the RBA also said the outlook for inflation would afford its scope for further easing.
    It also said in May that the exchange rate of the Australian dollar was at a historical high level and repeated today that despite its recent depreciation,  it was still high given lower export prices.
     “The exchange rate has depreciated since the previous Board meeting, although, as the Board has noted for some time, it remains high considering the decline in export prices that has taken place over the past year and a half,” the RBA said today, quoting its governor, Glenn Stevens.
   Since the RBA’s rate cut on May 6, the Australian dollar has depreciated by 5 percent against the U.S. dollar. The A$ was quoted at 0.97 to the U.S. dollar today.

    The RBA said economic growth over the past year has been a bit below trend with unemployment edging higher and growth in labour costs moderating. Inflation is consistent with the bank’s’ medium-term target and is expected to remain so over the next one to two years.
    Australia’s Gross Domestic Product rose by a quarterly 0.6 percent in the fourth quarter of 2012 from the third, for annual growth of 3.1 percent.
    Global growth is still running a bit below average this year, the RBA said, with reasonable prospects of a pick-up next year. While commodity prices have declined, they remain high by historical standards. But global inflation has moderated in recent months.
    In the first quarter of 2013, Australia’s inflation rate rose to 2.5 from 2.2 percent in the fourth quarter. The RBA targets inflation of 2-3 percent.
    The RBA said financial conditions internationally were very accommodative and despite the recent rise in sovereign bond yields, “funding conditions for sovereigns, well-rated corporates and most financial institutions remain very favourable.”
   

By MoneyMorning.com.au

Don’t look now…but gold stocks are soaring!

Maybe my screen’s upside down…

No, that’s not it. Maybe gold stocks really are going up after all!

Since I wrote to you last week explaining why gold stocks had bottomed, the All Ords Gold Index (XGD) is up by 9%, and the Market Vectors Gold Miners index (GDX) is up by 12%. 

Many stocks have fared much better. Northern Star (NST) is up by 28%, Troy (TRY) is up by 16%, and Beadell (BDR) is up by 20%. 

These are impressive short-term moves, and are a clear signal to sit up and pay attention. And if you thought you may have missed the boat, think again.

This is just the beginning…

In a nutshell, the reason I called a bottom last week was that the market was so universally negative on gold stocks that sentiment had hit zero.

And from there, it’s basically impossible for things to get any worse. To quote the famous market analyst Bob Dylan, ‘When you aint got nothing, you got nothing to lose.’ 

This is precisely why when sentiment bottoms out, a new bull market starts. 

One week later, and it already looks like it’s game on.

A big part of this is the recovery in the gold price.

‘Recovery!?’ I hear you say.

Yes.

No one seems to have seen what has happened since gold copped it in April with its biggest fall in 33 years.

At the time I wrote to you saying the historic fall in gold spelt a historic opportunity for you. And since then it has seen an incredible bounce. Thanks in part to the gold price and in part to the falling Australian dollar, gold in Aussie terms has jumped 14% in just six weeks. 

In fact, the bounce has been so big that Aussie dollar gold is nearly back to where it was before the once-in-33 year crash.

Aussie Dollar Gold – 85% Recovered from the Crash Already

Source: StockCharts

A reader, Pat, took our advice and was kind enough to email after the crash to say:

‘Nailed It! All the graphs show we were just off the bottom…you can have a day off from banging the gold drum because someone heard and took action!’

That’s so great to hear, thanks for that Pat.

I expect that gold stands to rise further.

But I think gold stocks are the next shoe to drop.

They are only just starting to play catch up now. Some very interesting signals have come out of the gold sector. For one thing, over the last week, they have gained faster than gold. In other words, they have provided leverage.

Once upon a time, that’s what investors bought gold stocks for. If gold looked like going up 5%, a good quality gold stock could go up 10%, 15%, or 20%. But it hasn’t worked like that for a long, long time.

So it was interesting to see gold stocks actually outperform the gold price in the last week. This chart shows the ratio of the gold stock index (GDX) to the gold price. When gold stocks are giving leverage, this ratio rises.

Gold Stocks Giving Leverage? Next Thing We Know Flares Will be Cool Again

Source: StockCharts

What really catches my eye in this chart is the fact that not only is this ratio rising, but it has poked its head above the 50 day moving average (blue line) for the first time in six months, and has actually held there. This is the first bullish sign from this chart in a long time. I’d keep a close eye on this.

Just two weeks ago, George Soros, one of the world’s most famous, experienced and wealthiest investors, made a massive bet on gold stocks. I wrote to you about how in total he now has a quarter of a billion dollar bet on gold to go up.

When players like him get involved, it’s often well worth punting alongside them. So far it’s paying off.

But that doesn’t mean all gold stocks will go up. It’s a market of stocks, not a stock market after all.

Warning: Quality Varies Wildly

Many of these gold stocks are running dangerously low on cash. So that’s the first thing look at when thinking about a stock.

To find out a company’s cash balance, I read the quarterly reports. It’s certainly not a pastime for adrenaline junkies, but it is essential. I recently read over five hundred of them, to find the most cashed up stocks on the market.

The findings were surprising. Although most stocks were running on fumes, there were also quite a few stocks with at least a few years-worth of cash.

This is so important because if they have enough cash in the bank while capital markets are tight, they can just get on with business. They can also buy their competitors for peanuts.

Three stocks in particular passed the cash test, and a host of other screening tests I use, so I tipped them in the latest monthly issue of Diggers and Drillers.

These break a six month patch in which I only tipped two stocks. That tells you how dangerous the market has been until now.

Like gold stocks, the entire resource space has been very weak, but after a very long rough patch, the mining sector looks to be on the rebound.

In fact, I’m increasingly convinced we’ve seen the low point in the resource market. Resource stocks should see good gains from here. And I’m not the only one to think this way. Controversial analyst Phillip J Anderson believes commodity markets are only half-way through a 30-year bull market cycle.

Anderson says all markets, including property and stock markets, move in long cycles. If Anderson is right (and I think he is) 2013 could be the best opportunity to buy resource stocks in more than 10 years.

And as gold is the most oversold of all the resource stocks, good quality gold stocks stand to make investors the biggest gains of them all.

Dr Alex Cowie
Editor, Diggers & Drillers
Join me on Google+

From the Port Phillip Publishing Library

Special Report: How to Buy Better Stocks

Daily Reckoning: Why Growth Stocks Could be the New Target of the Big Money Hunt

Money Morning: The Single Best Way to Build Wealth: Invest in Business…

Pursuit of Happiness: Australian Housing: Neither a Bull nor a Bear

By MoneyMorning.com.au

1. In the Future Your Mind Will be the Most Powerful Computer You Own

   The future of computing doesn’t exist in your phone, as a watch, or even as a pair of glasses.

   Computing will transcend the devices we have today and are getting in the next year.

   Computing will be immersed in your everyday life. Not as something you flip out of your pocket. Your entire world will become interactive. The way you see and what you see with will merely be the conduit for what is actually going on.

   Your display might be glasses, or a contact lens. Bionic eyes might be better than having real ones. Either way everything you come in contact with will have embedded microchips and wireless communication built in.

   It will allow for a completely augmented reality (AR). The information of the world will be available to you everywhere you look and think. Computing power will be embedded in your biology to enable you to fully interact with your physical world and your digital world through your 5 senses, and a 6th, your mind.

   At first you may think that sounds a bit creepy. But think of the applications…

   You will simply need to think about a question you want an answer to, to find the information.

   People with a disability could use this technology to control bionics and robotic aides. The world of AR will slowly and comfortably enhance your world and provide you with a seamless interaction between physical and digital worlds.

2. Safe and Waste-Free Nuclear Power?

   Nuclear Fission is the process by which the power is made in nuclear power plants today.

   But the future of power lies in Thermonuclear Fusion.

   The detailed physics of how it all works is far too complicated to explain briefly. But the key things you need to know are it’s safer than Nuclear Fission, as it doesn’t produce radioactive waste.

   This means in the event of an accident there wouldn’t be a repeat of Chernobyl or Fukushima.

   Not only that, but thermonuclear fusion can generate about four times as much energy as current fission. Advances in the science mean that it could be the best source of energy the world has within the next 10 years.

   Right now in southern France the International Thermonuclear Experimental Reactor (ITER) in being constructed. This has the potential to be the first Fusion reactor to break the plasma energy breakeven point, and produce more energy output than energy input.

3. Liver Failure? Don’t Panic, Here’s Another Made to Order…

   Stem Cells, your own little cellular ‘Mr Fix-its’.

   The advances in medical technology are astounding. But none are as potentially revolutionary as the benefit stem cells can provide us.

   Poised to revolutionise the way the world practices medicine, Stem Cells have the ability to find their way to broken parts of the body – a bone, the liver, the heart – and to repair an otherwise unrepairable organ.

   It means living longer, staying healthier, and perhaps evading death.

   The current work on stem cells revolves around the potential for growing of fully functional human organs. It could be a future where as you age and parts of you wear away, you can simply replace them. The most important mechanic you might have will be the one that gives your body new parts…not your automated car.

4. Safer Roads Without Passing a Driving Test

   Ever considered how misleading the word Automobile is? It obviously refers to a car, but I can tell you one thing, there’s nothing auto about it…yet.

   You may as well stop using the term car now. In fact if you have young children, put away all the story books about people driving cars. When your newborn is of ‘driving’ age, he/she will ask you this simple question. ‘Why did you ever drive cars in the olden days? That’s soooo 2013.’

   Cars themselves are the pinnacle of safety and technology, but last year in Australia 1,309 people died from road accidents. The road toll creeps down every year. But soon there could be a dramatic shift towards a zero fatality year.

   And it will be because of a fully automated car. Jump in, input destination, and let the car take you there. This technology is already available, but laws and regulations are holding it back. If we take human error out of the equation, traffic flows better, cars travel at safer speeds, and getting everyone where they want to be more efficiently.

   It’s a future world not of flying cars. But fully automated, self-driving, autopilot cars.

Sam volkering.
Editor, Money Morning
Join me on Google+

From the Archives…

Keep One Eye on Resource Stocks and the Other on the NASDAQ
31-05-2013 – Kris Sayce

Getting in on the ’99 Cent Craze’ with Crowdfunding
30-05-2013 – Sam Volkering

Buyer Beware: Japanese Government Bonds are Moving
29-05-2013 – Murray Dawes

The Best Contrarian Play on Gold I’ve Ever Seen…
28-05-2013 – Dr Alex Cowie

A Revolution in the Share Market is Coming…
27-05-2013 – Kris Sayce

After a long holiday weekend, Wall Street got off to a relatively good start this week, with the Dow Jones Industrial Average finishing higher for the 20th straight Tuesday. In economic news, investors welcomed better-than-expected housing and consumer confidence data; the S&P Case-Shiller 20-City home price index rose 10.39% for March, while the Conference Board’s Consumer Confidence Index for May also topped analysts’ expectations, jumping to a five-year high of 76.2. Meanwhile, investors shifted their attention to the high-yielding corners of the market, which have recently suffered as Treasury yields skyrocket to levels not seen in over 13 months.

Below, we outline seven insightful articles circulating around the financial space this week:

1. Stocks As Bonds And Modern Portfolio Theory at The Blog of Horan Capital Advisors
   In this article, David Templeton takes a close look at the relationship between stocks, bonds and the central bank’s stimulus measures, highlighting how modern portfolio theory has played out in the current market environment.
2. Precious Metals & Miners Start Bottoming Process at TheGoldAndOilGuy.com
   Though precious metals have taken a beating so far this year, Chris Vermeulen thinks both precious metals and miners may be finally bottoming out. In this article, Vermeulen gives us his technical analysis of gold, silver and the Market Vectors Gold Miners ETF  (GDX, B).
3. As US House Prices Explode Higher, We’re Still Quite A Way From Bubble Levels at Quartz
   In this short and insightful piece, Matt Phillips discusses the key housing trends seen in recent years, highlighting several charts that investors should be paying close attention to.
4. Treasury Yield Snapshot: 10-Year Yield Highest Since Early April of 2012 at Advisor Perspectives
   On Tuesday, yields on the 10-year note rose to their highest level in more than 13 months. This article, written by Doug Short, discusses U.S. Treasuries’ recent price movements as well as a historical look at yields over the years the Fed implemented QE.
5. Is Tesla The Next Google Or DoubleClick? at UpsideTrader
   In recent sessions, investors have witnessed Tesla’s (TSLA) meteoric rise, making many understandbly leery of the share’s recent rally. In this piece, Joe from UpsideTrader discusses his take on the stock, highlighting where he thinks Tesla may be headed next.
6. Inflation, Deflation, and QE at Coppola Comment
   In this article, Frances Coppola highlights a key topic that has gotten significant attention since the Fed started its stimulus measures: inflation.
7. Utilities And Staples: One Of These Defensive Sectors Is Not Like The Other at Afraid To Trade
   In this insightful piece, Corey Rosenbloom gives us his analysis of the utilities and consumer staples sectors, highlighting recent trends seen in the Utilities Select Sector SPDR ETF  (XLU, A) and the Consumer Staples Select Sector SPDR ETF (XLP, A+).

Know What the Market Will Do Next – JOIN NOW!

Chris Vermeulen

London Gold Market Report
from Adrian Ash
BullionVault
Mon 3 June, 07:50 EST

LONDON PRICES to buy gold and silver rose in volatile trade Monday morning, recovering Friday evening’s late losses as Asian and European stock markets fell hard.

Far Eastern premiums over and above international prices continued to ease back, according to wholesale dealers.

“Bids [to buy gold] seemed to vanish into thin air,” says one, “as soon as the price got close to $1420 on Friday.”

With Turkey’s stock market losing 6% after a weekend of anti-government protests were broken up by police last night, the MSCI world index of 9,000 equities in 45 countries today reversed the last of May’s rise to 5-year highs.

Last month’s drop in US Treasury debt prices pulled global bonds to their worst monthly loss in 9 years, down 1.5% overall according to the Bank of America-Merrill Lynch Global Broad Market Index.

US Treasury yields rose Monday as prices fell further, pushing 10-year yields up to a new 1-year high of 2.17%.

“Rising yields – albeit at historically low levels – is not a friendly environment for gold,” says Swiss bank and London bullion market maker UBS in a note.

With UBS’s interest-rate analysts saying that “the rise in rates is too much, too fast,” however, the predicted drop in 10-year yields to 1.7% “would be a gold-positive development,” says the precious metals team.

“It may well act as the tailwind gold needs right now to stay northbound.”

Speculative betting on rising gold prices is now “at its lowest ebb for almost a decade,” say analysts at Deutsche Bank today. So “one could argue that the pace of liquidation is likely to slow.

“The past six months,” says Deutsche, “has seen one of the most dramatic reductions in net speculative length in gold on record.”

Latest data show what Standard Bank today calls a “massive addition to short [bearish] positions” in US gold futures and options.

Analysis of the same data by BullionVault shows that less than 60% of all directional betting on gold prices by hedge funds and other speculators is for rising prices, the lowest “bull ratio” since at least 2005.

“While gold prices may temporarily move higher in the next few years,” reckons economist and Stern School of Business professor Nouriel Roubini, “they will be very volatile and will trend lower over time as the global economy mends itself.

“The gold rush is over,” he says, forecasting $1000 gold by 2015.

Roubini called gold “a bubble” in December 2009, saying almost two years and 60% before its all-time high that the bull market would burst thanks to a rising US Dollar.

Last week saw speculative betting on a rising Dollar near record levels, according to analysts at Nomura bank, while ING bank calls it “the largest ‘long’ USD position on record.”

“The bull market is over” for developing-nation currencies, reckons SocGen strategist Kit Juckes, speaking to Bloomberg, calling the South African Rand “the first of what I suspect will be a series of dominoes to fall,” after its worst 1-month drop in two years.

Data from the Bank for International Settlements meantime show international banking flows shrinking fast at the end of 2012, with cross-border loans in the 17-nation Eurozone shrinking at a 20% annual pace.

Domestic lending by UK banks also continued to shrink in the first 3 months of this year, down by £300 million despite the coalition government’s new funding-for-lending scheme.

“Gold continues to be useful as an insurance policy in people’s portfolios to guard against uncertainty and possibly some economic dislocation,” says Michael Cuggino, manager of some $14 billion in assets at the Permanent Portfolio Family of Funds in San Francisco.

“You have a lot of monetary creation going on,” he tells Bloomberg.

“While inflation is not a current threat, that doesn’t mean it’s not a threat at some point.”

Adrian Ash

BullionVault

Gold price chart, no delay | Buy gold online

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold and silver in Zurich, Switzerland for just 0.5% commission.

(c) BullionVault 2013

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

By HY Markets Forex Blog

For the first time in a month, Brent crude traded lower than $100, while WIT declined speculations that stockpiles will increase after OPEC reserved it production target unchanged. Brent crude priced the most among other country oil, which was changed after dropping to 0.6% to $99.75 per barrel.

The Organization of Petroleum Exporting Countries kept its yield ceiling of 30 million barrels per day, according to reports from the meeting in Vienna in May. Crude inventories in the U.S, rose to 398 million barrels in a week in the month of May, according to government reports released on May 30.

Brent oil prices in the month of July stood at $100.26 per barrel. While UK’s ICE Futures Europe exchange at 1.09pm, which later dropped to a low 64 cents to trade below $100. Last week prices dropped by 2.3 percent and 1.6 percent in the month of May.

The Organization of Petroleum Exporting Countries’ production has varied from 30.6 million to 32.4 million barrels per day since the target introduced in 2011, according to the data taken from Bloom berg.

According to data released from the Energy Information Administration, crude in the U.S. increased by 34,000 barrels to 7.29 million per day in a week ended May 24.

According to reports from the commodity futures trading commission, hedge funds reduced bullish WTI crude stakes by the most in six weeks. Money managers cut net-long wagers on higher prices by approximately 6.2 percent ended May 28.

The post Brent Crude Trades lower than $100 appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

By HY Markets Forex Blog

From the data to be released from euro zone members for the final manufacturing data for the month of May, European shares are predicted to open in a negative territory.

Shares in Europe are predicted at a low and negative rate while investors look forward to the activity reports from some of the largest companies in euro zone.

Futures for the Germany’s DAX dropped from 0.76% to 8,303.00, while pan- European Euro Stoxx 50 slid 0.81% to 2,751.50, the French CAC 40 futures slid 0.55% lower at 3,919.30 and the UK FTSE 100 futures edged 0.70% to 6,527, all as of 6:06am GMT.

The PMI’s are likely to approximately settle at the same level as the preliminary reports previously recorded last week, which indicated France and Germany economies, are still stuck within contraction territory.

Germany’s final manufacturing PMI is expected to stand at 49.0 points in the month of May ,while in France , the manufacturing PMI is expected to progress to 45.5 in May , from 44.4 in the month of April .

The final manufacturing activity for the euro zone is expected to show a development of progress   from 46.7 to 47.8 in May.

Markit Economics are expected to release the final report for the manufacturing Purchasing Managers’ Indices (PMI) data for the month of May for countries in the euro zone.

According to the European Central Bank (ECB) President Mario Draghi, the monetary union was stable than before and a possibility of a breakup of euro zone coming ahead.

“The economic situation in the euro area remains challenging but there are a few signs of a possible stabilization, and our baseline scenario continues to be one of a very gradual recovery starting in the latter part of this year,” he said in a speech in Shanghai on Sunday.

The post Europe Stocks show signs to open lower before PMI data appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog