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By MoneyMorning.com.au

We try not to do it.

But sometimes we can’t help it.

We get distracted.

But from time to time news stories flash before our eyes that remind us where we should focus our attention.

It’s not on Russia, or Ukraine, or central bank money printing. It’s on the latest discoveries that could actually mean something – such as research from the US that one cosmologist says could be ‘the Holy Grail of cosmology.‘

That’s big…

Our old buddy Dan Denning sent us a link to the news report yesterday. He included the simple comment that, ‘This looks like it could be huge news.‘

So, what was the news?

According to the Guardian:

‘There is intense speculation among cosmologist that a US team is on the verge of confirming they have detected “primordial gravitational waves” – an echo of the big bang in which the universe came into existence 14bn years ago.

‘Gravitational waves are the last untested prediction of Albert Einstein’s General Theory of Relativity. They are miniscule ripples in the fabric of the universe that carry energy across space, somewhat similar to waves crossing an ocean…

‘The discovery of gravitational waves from the big bang would offer scientists their first glimpse of how the universe was born.‘

Dan was right. That is big news. And yet most folks tend to ignore this type of news.

But not Sam Volkering. When he comes across ground-breaking and revolutionary news; there’s no stopping him. He’s always looking for any opportunity to showcase what’s going on the world of science and technology.

Forget Crimea, This Could Change Lives

But what do ‘primordial gravitational waves‘ have to do with stock markets?

Nothing really.

We’re simply making a point that however important things may seem on face value (Russia and Ukraine, or a Chinese solar power firm defaulting on debt repayments) they usually aren’t that important when you put it in perspective.

As the report from the Guardian shows, scientists could be another step closer to unravelling the mysteries of the universe.

But that’s not the only thing going on in the world of science. On any given day scientists and entrepreneurs are doing all manner of things to solve problems and improve people’s lives.

Take for instance the medical breakthrough Sam told Revolutionary Tech Investor readers about two weeks ago:

‘Multiple Sclerosis is a neurological disease, which affects the central nervous system. Approximately two million people worldwide have been diagnosed with MS.

‘As it stands there is no known cure, in part because of the complexity of the disease.

‘What happens in MS sufferers is the body’s own immune system begins to attack the central nervous system. In effect the body turns on itself. This in turn leads to inflammation of the brain, spinal cord and optic nerves.

‘The result from this self-attack is damaged nerves.‘

The good news is there’s a tiny biotech firm doing its darnedest to find a treatment and cure…and it may have found it in the most unlikely of places.

We don’t know about you. But in our view that’s important. That’s the kind of breakthrough that can change lives for the better. But it’s also the kind of information investors can use to make informed decisions on whether to support the company and its plans.

This is Speculating not Trading

We’ll make that clear.

When you invest in speculative and revolutionary stocks you’re actually investing in the company.

This isn’t like trading where you don’t care what the company does. Most traders couldn’t care less about the stock. All they care about is the three digit stock code and how the lines shape up on the chart.

Speculating on tiny revolutionary stocks is different. You’re investing in the company – financially and mentally. You can’t just throw a few bucks at these things based on the charts.

You need to understand what the company is doing and how it plans to do it. You need to have confidence in the company. And importantly, you need to have the stomach to back it with cash.

It’s a simple fact of this type of investing that small-cap revolutionary companies will need to raise extra capital from investors. Some investors don’t like them doing that.

To us that’s a crazy attitude. Companies at this end of the market need to raise capital in order to finance their projects. The beauty of it is that it gives you the opportunity to invest directly in the company.

Rather than just buying your shares from another investor, you get to write a cheque or transfer money straight to the company when it raises capital. In return you get extra shares in the company.

That’s an uplifting feeling. You know that your hundreds or thousands of dollars are going straight to the company so it can develop and potentially market its life-changing drug or treatment.

Not only that, but you get the potential to make big double-, triple-, or even quadruple-digit percentage gains.

For example, another one of the biotech stocks Sam recommended just seven months ago is up 422.9%. It trades on the ASX too.

Who says you can’t make money in this market? And to prove it this video -produced urgently – shows how to do it…

Cheers,
Kris+

PS: If you click on this link you’ll go through to Sam Volkering’s latest video feature, in which he lays out the high-tech opportunities available to investors today – Sam calls them ‘Moon-Shots’. To be honest, when I first saw the presentation I thought Sam must have shot it from the Moon, the audio quality was so bad! But soon enough I got used to the crackling and the other sound glitches, because the underlying message was so important. You can watch the film here…

Special Report: Mining Boom Act II

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By MoneyMorning.com.au

By MoneyMorning.com.au

Apple [NASDAQ:AAPL] might have officially gone bonkers. I get the feeling they’re trying too hard to be everything to everyone. I say this because in the last week there have been reports about Apple getting into making electric cars.

Now this wouldn’t be out of place for a company like Google [NASDAQ:GOOG]. Google is renowned as a ‘Moonshot’ company. They go with the out-there project like self-driving cars. Whether or not they turn out to be a success…who knows? But Moonshot projects are as important to Google as their search engine.

But at the core of Apple they make very pretty computers and smartphones. So why on earth would they be considering electric cars? Maybe things are worse at Apple than we realise?

Just the idea and rumour of Apple getting into electric cars is a revelation in itself. It means that a ‘cool’ company like Apple believes these kinds of cars are a fit for the brand.

Just a few short years ago hybrid and electric cars were very ‘uncool’. I’m sure every Toyota Prius came with an Al Gore poster and a ‘Welcome to the Club’ letter on hemp paper from Leonardo DiCaprio.

It’s not like there haven’t been attempts to bring the electric car industry to life. You can look back 100 years to find examples of battery powered electric cars. Yet until the last few years, most failed.

The most notorious example of failed electric cars was the GM EV1. Some believe an underhanded conspiracy by the major oil companies signed the death warrant for the EV1. But if you take it on face value, perhaps it failed because it was possibly the ugliest, most ‘uncool’, and rubbish looking car ever made.

Fast forward to 2013 and 2014 and it’s a whole different story. It’s simple…electric cars are back. And this time they’re here to stay.

The Big Car Makers Know the Time is Right

Anyone with an electric or hybrid car now is a trendsetter, a pioneer, a saviour of the earth. It’s about time too. I believe the auto industry needs to make electric power the standard when it comes to car making. And it looks like a few of them might just agree.

Electric charging infrastructure has been one of the car industry’s failures. But with the success of the Tesla Motors [NASDAQ:TSLA] supercharger network across North America, it’s clear to see this failure is about to be fixed.

Speaking of Tesla, you have to give a lot of credit in the resurgence of electric cars to Elon Musk. Tesla is the first car maker that makes electric cars people want to buy. Simply, it’s jam-packed full of tech, looks amazing and smashes other electric cars with its range.

And the fact Musk has built a $25 billion car company that only makes two models says something. There’s a huge market for electric cars with a genuine bit of sex appeal. And as Tesla release an SUV, and an ‘affordable’ electric car, this is going to be a hotly contested market.

Because of the increasing popularity of Tesla cars, other car makers have realised that the time is ripe to push this technology through to the masses. If they don’t they’re going to fall behind, fast.

BMW now has the i3. It too is an electric car (with an optional petrol range extender). The i3 is also full of new technology and looks like something you’d want to drive. Not to stop there, BMW also has the soon to be released i8 (a hybrid), which is even better looking and will be sold alongside Porsches, Ferraris and Lamborghinis. And BMW’s use of carbon fibre really has car makers talking.

More on carbon fibre shortly. But what’s clear is that car makers around the world know that hybrids and electric cars are inevitable. That’s why other electric cars you can already buy include the Fiat 500e, Renault Zoe, Chevrolet Spark, Volkswagen e-UP! and soon the Audi A3 e-tron.

If you have any doubt that the immediate future of cars is hybrid and electric, just look at those names. We’re talking the biggest car companies in the world. And they’ve all figured out that for EV’s and Hybrid to be a success they need the x-factor. A bit of sex appeal. They need to be ‘cool’.

To realise this you only need to look at a comparison of today’s tech-laden ‘green’ cars versus yesterday’s… It’s the modern day McLaren P1 versus yesterday’s GM EV1.

© Copyright McLaren Automotive Limited      Source: RightBrainPhotography (Rick Rowen)

It’s pretty easy to see which you could term ‘inspiration’ and which you could call ‘aberration’.

The McLaren P1 is more than just good looks though. It’s possibly the biggest leap forward in car making since the Model T Ford.

If you’ve never heard of the P1 here’s a brief explanation. It’s the future of cars. It’s the world’s most technologically advanced road car. Sure it’s got a 3.8 litre twin-turbo V8 petrol engine, but it’s also got a 176 horsepower electric motor. Its CO2 emissions are sub 200 g/km (about on par with a Ford Mondeo) and you can even switch it into full electric mode for pottering around short distances.

Now although the P1 might cost north of $1.5 million, it’s full of technology that’ll eventually find its way down into passenger cars over the next five to 10 years. One of the biggest advances you’ll see filter down is the P1′s full carbon fibre monocoque.

What that means is the car is basically all carbon fibre. McLaren’s Press Release explains it best,

‘On the McLaren P1™, the new carbon fibre MonoCage forms a complete structure, incorporating…the vehicle’s roof and distinctive snorkel air intake.‘

The release continues to explain,

‘At just 90kg, the McLaren P1™ has one of the lightest carbon fibre full-body structures used in any road car to date, and uses the most advanced carbon fibre technology. A combination of Formula 1 style pre-preg autoclave technology and precision resin transfer moulding (RTM) achieves a single piece.‘

From Le Mans and Monte Carlo to the Dealers of Melbourne

The use of carbon fibre composites in car making isn’t all that new. Motorsport championships like F1™ and Le Mans series have used carbon fibre monocoques for years. But what happens is the tech from F1™ and Le Mans finds its way into the workshops of car makers. Ferrari, Porsche, Mercedes, Audi and McLaren are a few car makers that benefit greatly from this process.

And as the technology improves over time it filters down from the supercar makers to the rest of the auto world.

Carbon fibre is crucial to the long term future of ‘green’ cars with low emissions. The big problem is it’s always been expensive to use in the car making process. However, one Aussie company, who I can’t name, thinks their proprietary carbon fibre composite system is the answer car makers have been looking for.

They’re currently in discussions with leading car makers about licensing out their system. The technology this Aussie minnow has could completely change the auto industry. Instead of carbon fibre being commonplace in cars that cost six figures and more, you could see carbon fibre on your next Corolla, Mazda 3 or Hyundai i30. It’s this kind of technological approach and innovation that’s going to drive the auto industry forward in the coming years.

Even when driverless cars are on the road, how car makers put them together will be crucial to a sustainable, ‘green’ world. Carbon fibre in cars makes them stronger, lighter and more fuel efficient. It improves safety, economy and makes the cars look cool. So you can see the potential this has in the modern, ‘green’ world.

The P1, i8, Model S and soon to be released Porsche 918 Spyder are the aspirational cars of the future. They combine pioneering technology with car making and motorsports. The sophistication and technology used is simply mind-blowing.

Thanks to these hybrids electric cars are finally cool. Although some of these ‘hero’ cars aren’t technically full electric, the fact they use electric motors and electric energy systems, is a huge step forwards.

Advanced technology companies like Tesla and McLaren just happen to also make cars for a living. And that’s a good thing. With these tech pioneers at the helm of car making, the future looks bright for hybrids and electric cars.

Sam Volkering+
Editor, Revolutionary Tech Investor

Ed note: The above article was originally published in Sam Volkering’s Tech Insider, the free daily eletter in which Sam Volkering gives his readers the inside scoop on the new technology and tech companies that are changing the world.

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By MoneyMorning.com.au

Find out how at the 4th Annual Social Mood Conference

By Elliott Wave International

Robert Prechter forecasted more than 10 years ago that the War on Drugs would become more violent, leading eventually to the decriminalization of the possession and sale of recreational drugs. The Socionomist followed up in 2009 with an in-depth story by Euan Wilson called “The Coming Collapse of a Modern Prohibition.” We published an update in November 2013, “Marijuana: The Mood Shifts, and Decades of Prohibition Go Up in Smoke,” that was a timely reminder just before marijuana stocks exploded in early 2014. The recent rush of new state laws to decriminalize pot bears out these forecasts.

Enter Alan Brochstein, a pioneer in the Green Rush by way of his groundbreaking website, 420 Investor, which provides investors information about how to invest in the nascent cannabis industry. He will be just one of the speakers from around the globe at the upcoming 4th Annual Social Mood Conference on April 5, 2014. Join the many people already scheduled to attend who are also interested in understanding how socionomics makes it possible to understand changes in the world — before they happen.

Here are the topics of five of the nine researchers and business people who will present their ideas in Atlanta.

Capitalizing on Cannabis: The Transformation of an Industry and the Creation of a New Investment Bubble

Alan Brochstein, CFA, Founder of 420 Investor.com

Mr. Brochstein has seen the herding impulse up close on a consistent basis through his investing service. The rapidly changing landscape for legal and medical cannabis presents opportunities for many stakeholders, including patients, consumers, entrepreneurs and government entities. Investors, whether through publicly traded companies or privately, are poised to capitalize on cannabis as well.

He will discuss how the combination of a rapidly changing industry and a political dynamic that touches many investors on a deeply personal level is already attracting substantial capital that might even be characterized as a bubble in the publicly traded stocks. At the same time, a highly uncertain financial regulatory environment has left the cannabis industry without ample access to traditional funding sources. Mr. Brochstein will discuss the opportunities ahead for investors who can navigate what will likely be a volatile environment.

Predicting Human Behavior with Internet Data

Suzy Moat, Assistant Professor of Behavioral Science at the Warwick Business School, UK

Our everyday Internet usage generates huge amounts of data on how humans collect and exchange information worldwide. Dr. Moat’s recent research asks whether this data can be used to measure and to even predict human behavior.

Her talk will aim to show how large-scale patterns of communication can indeed help us to understand large-scale patterns of behavior. Dr. Moat will describe a number of illuminating case studies that link data (from sources such as Google, Wikipedia and Twitter) to collective behavior in the economic domain and beyond. For example, her team tested a hypothetical investment strategy based on big data about Google searches for financial terms such as “debt,” “portfolio” and “stocks.” It earned a 326% theoretical profit from 2004 to 2011, compared with 16% if the model had simply purchased the same stocks in 2004 and sold them in 2011.

From Individual Decision Making to Collective Dynamics

Thomas Brudermann, Ph.D., Researcher at the Institute for Systems Sciences, Innovation and Sustainability Research, University of Graz, Austria

How do ideas go viral on a large scale? Decades of research on human decision making have yielded rich insights on psychological biases. We are well aware of the power of social influence, conformity pressure and herding. At the same time, suitable methods have been developed to keep track of collective phenomena. To get an idea about ongoing processes in markets and society, we may analyze Twitter tweets, track Google search trends, observe sales figures of certain products or look at stock market indexes.

What is still missing is a comprehensive understanding of the underlying collective dynamics, that is, the missing link between decisions happening on the individual level and emergent phenomena occurring on a macro level scale. This talk will address prospects and challenges of this research as well as possible links to socionomics, and discuss under which circumstances thoughts, ideas and preferences might go viral on a large scale.

How to Use Socionomics in Real Time

Peter Atwater, President of Financial Insyghts, a U.S. consulting firm

Using examples from his own socionomic applications � ranging from huge unexpected wins to failed applications � Mr. Atwater will discuss the valuable lessons he has learned, some the hard way, in his years as a social mood researcher and finance professional.

He will share some of his real-life experiences with socionomics, such as what happens when he challenges money managers to view what is happening outside the markets as equally important as, if not more important than, what is happening inside the markets. He will also discuss how some pioneering business leaders have adopted socionomics as an indispensable tool for strategic planning.

The Socio Edge: Making Socionomically Informed Decisions in an Era of Dynamic Change

Matt Lampert, Ph.D. candidate at the University of Cambridge, UK

Despite the availability of information in the Age of Big Data, we are consistently blindsided by game-changing events. Mr. Lampert’s thesis is that, in a world marked by constant change and fluctuation, being able to see around the corner before others gives you the opportunity to prepare early. Socionomic analysis can cut through the noise to identify the signals that matter most. It can also generate a strategic advantage — from forecasting entirely new industries to recognizing the potential for swift trend changes. He will explore how the socio edge has allowed analysts to anticipate and adjust for changes in the social landscape that catch most of the world off guard.

Book Your Seat: The 2014 Social Mood Conference Registration is now openJoin these five exciting speakers at the 2014 Social Mood Conference, April 5 in Atlanta, GA. Learn more and reserve your seat now >> If you would like to receive the free socionomics content each week, sign up here.

By WallStreetDaily.com

Before the implementation of hydraulic fracturing and horizontal drilling technologies, the domestic energy industry was in a state of steady decline.

Well, the same can be said right now of the gold mining industry, particularly in South Africa.

South Africa was once the premier producer of the precious metal, yet it now ranks sixth – and is still dropping.

But hope is on the way…

A new drilling technology is being developed that promises a brighter future for gold miners – not only in South Africa, but anywhere around the globe that performs deep level mining.

Reef-Boring Technology

AngloGold Ashanti (AU) is behind this new technology, which is called reef boring.

The company’s CEO, Srinivasan Venkatakrishnan, said that it’s “a game changer, or a paradigm shift.”

Indeed, the current processes for gold mining involve drilling holes many feet below the surface and using explosives.

Reef boring, on the other hand, involves using smaller and more agile machines.

These vastly reconfigured tunnel-boring machines are used to drill parallel access tunnels into gold reef deposits quickly.

Then, between the tunnels, the company drills smaller interconnecting holes. It then fills these holes with a solution that turns rock-hard within three weeks. This keeps the entire mining area stable.

In the end, this allows the company to remove only gold-bearing ore – and then replace it with a rock-hard solution that stabilizes the mine.

This results in shorter drilling times and the ability to operate 24 hours a day.

In other words, much lower overhead.

To show how transformative this new reef-boring technology is, consider the following:

• Drilling that used to take 30 days is now taking a mere three and a half days! And the company is aiming to lower that to just two.

• The company also expects that the new technique could extend the life of mines to 30 years – or double the current age.

To date, AngloGold has been employing reef boring only in no-go areas of mines that are deemed too dangerous for human miners to go.

But the experiment is going well so far.

Reef-Boring Promise

On February 19, AngloGold reported that it had produced 40 kilograms of gold from ore at one site – with an average grade of 90 grams of gold per ton mined. This includes enormously valuable gold grades of more than 200 grams per ton.

That’s very good news, indeed, for South Africa, which faces the potential for massive mine shutdowns in the years ahead – due to a decline in grade ores and other factors.

In effect, gold that was previously inaccessible to AngloGold can now be mined using this new reef-boring technology.

The experiment was such a success that AngloGold Ashanti is now rolling it out at five other sites.

The latest machines are being made to work even in the thinnest of reefs – and in the narrow reef platinum mines of South Africa.

In a boost for South Africa, the company doesn’t plan to keep this technology proprietary. It’s willing to share the know-how with other mining firms.

If so, the gold mining industry in South Africa – along with other regions around the globe – may enjoy a new renaissance in the years ahead. And we’ll be tracking any potential opportunities to profit as the trend progresses.

And “the chase” continues,

Tim Maverick

The post New Gold-Drilling Technology: Shale-Drilling Redux? appeared first on Wall Street Daily.

Article By WallStreetDaily.com

Original Article: New Gold-Drilling Technology: Shale-Drilling Redux?

Capital Trust Markets – For twelve hours on Sunday, March 17, the Crimean parliament asked its residents to vote on the future of the region. Voters had two options. The first, to join Russia, the second, to remain a part of Ukraine but with increased autonomy. The former proved to attract the overwhelming majority, and on Monday morning, Russia named the Crimean peninsula as annexed to its Federation.

As the markets open on Monday, what impact might this decision have? The answer lies in sentiment. Europe, the U.S. and Asia have declared the referendum illegal, and in turn, vowed to impose economic sanctions on Russia. The geopolitical, and potentially military, tension such sanctions could create will likely turn traders and investors towards a risk-off sentiment, as they reduce their exposure to any assets that are vulnerable to devaluation.

Traditionally, the benefactor assets in such situations are the precious metals, gold and silver. Heading into the Monday morning session however, the markets seem to be overlooking the unrest; at least for now.

The Asian session saw gold and silver gain strength, as expected, but at Monday U.S. open, the precious metals start the day on a somewhat weaker footing. Gold futures (April 14 delivery) are down 0.04%, currently trading at 1,378.50. Silver futures (May 14 delivery) are down 0.58%, with the contracts currently trading at 21.28, just shy of key February resistance.

These small declines may simply be a correction of the action seen in the gold and silver markets towards the end of last week, as both assets gained strength heading into the weekend. Whatever the reason, expect a resurgence in the precious metals as the week plays out. The stock and currency markets look resilient at present, but any hint at escalation will likely have a domino effect on sentiment. The more risk averse operators are likely already reallocating capital, but there is undoubtedly a fringe group that are holding their exposure with one eye on the events as they unfold. Any suggestion of military mobilization will spur this fringe into action, which will likely drive a sell-off in the stock markets and a shift toward gold and silver. The more risk-prone investors will not react to events in Ukraine, but purely to market action as stocks decline and the precious metals appreciate.

Look for gold to test 1,420.00 resistance before the middle of the week, and silver to hit 22.00 within the same timeframe.

About the author

Written by Samuel Rae – Currency Strategist at Capital Trust Markets

Capital Trust Markets  – On Monday evening, the Reserve Bank of Australia (RBA) will release its latest monetary policy meeting minutes. The release comes after a spate of data that suggests the economy of China is slowing, and as such, traders are especially eager to gain insight into RBA monetary policy.

Last weekend, the National Bureau of Statistics of China (NBSC) reported Chinese consumer price index (CPI) at 0.5%, missing expectations of 0.8%. Shortly after, the Peoples Bank of China (PBC) reported disappointing new loans at 645B, and as the week came to a close, the NBSC reported slower than expected industrial production growth at 8.6%.

The data hints that, contrary to many analysts’ forecasts, the economy of China is bucking its long-term trend and losing steam. Australia’s dependence on the Asian superpower puts it as first in line to feel the impact of a waning Chinese economy.

Australia is the world’s leading coal producer, one of the top six copper producers and its mines contain nearly 25% of global proven uranium resources. The vast majority of its resource exports goes to China; a trade flow that was instrumental in helping Australia avoid the most recent economic downturn. This dependence however, may yet prove toxic if the economy of China wanes.

If the disappointing data from China filters through to Australian releases, the RBA may choose to exercise control through its main policy tool: the nation’s interest rate. Australia’s interest rate is already at an all-time low of 2.5%, but if Chinese demand for its exports falls, it could have a negative effect on employment, consumer spending, and in turn, economic output. In response, the RBA may choose to cut interest rates, to stimulate borrowing and maintain growth.

Forex traders will look to Monday evening’s minutes to serve up a bias. Dovish minutes hint at a future rate cut, and will likely fuel a downside revaluation of the Australian dollar (AUD), whereas hawkish minutes, hinting at a future rate hike, will have the opposite effect. During Monday’s trading, the AUDUSD has recouped the majority of last week’s economy of China-driven losses, but look to the minutes release as a determinant of short-medium term direction.

The pair has recently broken through key resistance at 0.9050, and a hawkish release will reinforce this level as medium term support. In this scenario, and assuming a Monday close above the aforementioned level, look for an initial target at previous resistance of 0.9150. A dovish release will likely cause a break below 0.9050, which would offer up an initial downside target of 0.8950 and suggest a resumption of the longer-term downtrend.

All said, the economy of China is not the only determinant in the success of the Australian economy, but it plays a vital role in sustaining the nation’s growth. The more risk averse traders will undoubtedly be quick to redirect capital away from the AUD, despite its attractive interest rate, if Australian data starts to mirror that of its Asian partner.

Written by Samuel Rae – Currency Strategist at Capital Trust Markets

Capital Trust Markets is a fully regulated and compliant online Forex Brokerage, offering a flawless trading environment to traders of all types. The world class trading infrastructure – backed up by advanced trading tools and cutting edge trading software and technology – is combined with award winning customer support to provide a highly successful blend of customized trading solutions.

By CentralBankNews.info
    Vietnam’s central bank cut its main interest rates, including the benchmark refinancing rate by 50 basis points to 6.50 percent, to help strengthen economic activity while inflation is slowing.
    Nguyen Thi Hong, head of the State Bank of Vietnam’s monetary policy department, told a press conference that from early 2014 the central bank had been actively implementing measures to control inflation, stabilize the economy and “support economic growth at a reasonable level to ensure the liquidity of credit institutions and the economy.”
    She also said that the world economy continues to be positive, with the U.S. economy forecast to strengthen and become more resilient, according to a statement by the central bank.
    Vietnam’s central bank cut its refinancing rate by 200 basis points in 2013, with the last cut in May last year, after slashing rates by 600 basis points in 2012.
    Vietnam’s inflation rate fell to 4.65 percent in February, the lowest rate November 2009, and down from 5.45 percent in January. The government has targeted 7 percent inflation this year but Hong said it could be below 7 percent this year compared with 2013’s 6.6 percent.

    In addition to cutting the refinancing rate, the State Bank cut the rediscount rate to 4.5 percent from 5.0 percent and the overnight leading rate to 7.5 percent. The maximum rate on deposits from 1 to 6 months was cut to 6.0 percent from 7.0 percent, and deposits of 6 months of more was cut to 6.5 percent from 7.5 percent.
    The State Bank added that foreign exchange reserves were rising and the currency market stable.
    Last month the State Bank’s governor said he was continuing to ask commercial banks to cut their rates to businesses by 1-2 percent after last year’s cut to deposit and benchmark rates. The government wants to boost credit by 12-14 percent this year following 2013’s rise of 12.5 percent.
    Vietnam’s Gross Domestic Product expanded by an annual 6.04 percent in the fourth quarter of 2013, up from 5.54 percent in the third quarter.
    The economy expanded by 5.4 percent in 2013 and the government has targeted 5.8 percent growth this year.

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By HY Markets Forex Blog

The 18-bloc common currency was seen trading lower against the US dollar on Monday, dragged lower by the disappointing CPI data, which revealed a downward movement in February.

The euro dropped under $1.3900 per US dollar at the opening of the Asian trading session; following Sunday’s Crimean referendum which showed the Crimea peninsula backed leaving Ukraine to join Russia and could possibly spurred a Cold War between the countries. Tensions between the countries added to the greenback’s strength.

The euro edged 0.12% lower to $1.3888 at the time of writing, after climbing to an intra-day high of $1.3915 before the release of the CPI data.

Euro – Crimea Referendum

Following the Black sea peninsula’s referendum to spilt from Ukraine and join the Russian Federation, the Western nations and the US Secretary of State John Kerry warned Russia that it would not accept the vote and should expect sanctions, while foreign ministers from the European Union are expected to meet in Brussels to discuss possible similar actions later in the day.

The US President Barack Obama and the Ukrainian government have considered the referendum illegal, “The world won’t recognize the Crimea vote,” Obama said on Sunday.

“The euro is expected to further trade at around the $1.39 area, reflecting dollar swings and the increased relevance of the euro gains for price stability, which ECB President Mario Draghi reaffirmed last week,” UniCredit quoted on Monday.

Euro Inflation

The revised Consumer Price Index (CPI) in the eurozone came in below expected for February, coming in at 0.7% on an annual basis, compared to forecasts of 0.8%, the same as the flash reading released earlier in this month.

The consumer inflation on a monthly basis came in at 0.3%, compared to a forecast of 0.4% and the preliminary reading which revealed a 1.1% contraction.

Visit www.hymarkets.com   to find out more about our products and start trading today with only $50 using the latest trading technology today

The post Euro Dragged Lower by Weak Inflation appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

By HY Markets Forex Blog

Gold prices kicked off the start of the week trading higher on Monday, trading close to a six-month high after the referendum on Sunday which showed that Crimea’s voters decided to split from Ukraine and become part of the Russian Federation, increasing the tension between the two countries and increasing the demand for the metal as safe haven.

Gold futures added 0.39% to $1,384.50 an ounce at the time of writing, after climbing to a six-month high of $1392.60, an ounce earlier in the session, while futures for silver climbed 0.19% higher to $21.455 an ounce.

Holdings in the world’s largest bullion-backed exchange-traded fund, SPDR Gold Trust; came in at 816.59 tons on Friday.

Gold – Crimea Referendum

Sunday’s referendum revealed that the Crimea peninsula backed leaving Ukraine to join Russia, with a total of 95.5% of the voters in the region agreeing to join the Russian Federation. However, the Ukrainian government and the Western nations considered the referendum illegal, raising fears and concerns of an international backlash with Russia.

US President Barack Obama has signed an order authorizing financial sanctions on Russia, which would permit Treasury Secretary Jacob J.Lew to freeze assets and block any business relationships between American companies and Russia.

The US Secretary of John Kerry said the referendum would not be accepted by the US and warned to expect sanctions, while European Union foreign ministers are expected to decide on similar consequences against the nation later in the day.

Gold – Fed Meeting

The market will be focusing on the Federal Reserve (Fed) March policy meeting, which will commence on Tuesday and end on Wednesday, as analysts are expecting the central bank to continue to trim down its asset purchases further.

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The post Gold Trades Near Six-Month High; Crimea Vote Spurs Demand appeared first on | HY Markets Official blog.

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EU foreign ministers are due to discuss further sanctions against Russia after a Moscow-backed referendum in Crimea backed a split from Ukraine.

Election officials in Crimea, where pro-Russian forces are in control, say 97% of voters backed  joining Russia. The EU and US say the referendum was illegal, but Russia says it was consistent with international law.

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