Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
Source: ForexYard
The euro received a positive boost during today’s session, as news that Greece may be close to a deal on its debt led to risk taking among traders. Additionally, the IMF proposal to increase its lending capacity helped riskier currencies like the euro throughout the day. That being said, the euro’s gains were not so significant to signal a change in its long term bearish trend. The euro-zone’s problems still far outweigh any positive news, and analysts maintain that a real reversal for the common currency is still nowhere in sight.
Turning to tomorrow, traders will want to pay attention to any announcements out of the euro-zone, especially regarding a deal on Greek debt. Positive news may be able to help the euro extend yesterday’s gains. At the same time, the threat of Greece defaulting on its debt is still a very real possibility. Should such an event take place, the euro will likely tumble as a result. Traders will also want to note the results of a batch of US news scheduled to be released later in the day. Positive figures may lead to more risk taking which could boost the euro.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
Goldman Sachs Group (GS) announced that profit fell 56 percent in the fourth quarter. However, earnings did beat analyst estimates.
London Gold Market Report
from Ben Traynor
BullionVault
Wednesday 18 January 2012, 08:30 EST
THE SPOT MARKET price to buy gold climbed to $1658 an ounce during Wednesday morning’s London trade – 0.8% up on Asian session lows – following reports that the International Monetary Fund is seeking to boost its lending capacity by $1 trillion.
European stock markets also recovered from an early dip, with industrial commodities also edging higher.
Prices to buy gold remained below the five-week high of $1667 hit yesterday, though by Wednesday lunchtime it was up 1.0% for the week so far.
“Gold is working on its third up week,” says the latest market commentary from technical analysts at Scotia Mocatta.
“[Gold] faces critical resistance at $1667 [which] was the mid-November low. Our view is that while $1667 holds then big picture risk remains bearish.”
Price to buy silver meantime hit a Wednesday morning high of $30.43 – 2.1% up on last week’s close – after briefly dipping below $30.
“We believe the medium term risk for silver is another move lower to $26.10,” say the Scotia analysts.
If silver falls below $28 an ounce “industrial end-users should certainly be active again,” adds the latest precious metals update from German refiner Heraeus, noting that industrial silver demand appears held back at current levels.
The IMF meantime is asking Brazil, China, India, Japan and Russia to help it boost its lending capacity by $1 trillion, according to one anonymous IMF official who spoke to newswire Bloomberg.
Oil-exporting nations have also reportedly been asked to contribute, as the IMF prepares for a potential deterioration in the Eurozone crisis.
“Recent developments accelerate the long-run trends of [global] economic convergence and declining US hegemony,” said Bank of England Monetary Policy Committee member Adam Posen in a speech yesterday.
“Importantly, this will reduce shock-absorption and provision of public goods to the international system as a whole.”
In October last year, Brazil’s finance minister Guido Mantega said he was opposed to the idea of Brazil buying European government bonds, adding that any assistance should come via the IMF.
The World Bank today warned that “”the risk of a much broader freezing up of capital markets and a global crisis similar in magnitude to the Lehman crisis remains.”
“In particular,” says the twice-yearly Global Economic Prospects report, “the willingness of markets to finance the deficits and maturing debt of high-income countries cannot be assured. Should more countries find themselves denied such financing, a much wider financial crisis that could engulf private banks and other financial institutions on both sides of the Atlantic cannot be ruled out.”
Greece meantime will resume negotiations with its creditors over the level of ‘haircuts’ private sector bondholders, such as banks, should take.
Talks broke down last Friday, with Charles Dallara, managing director of the Institute of International Finance, which is representing the banks, saying that some Eurozone government “collaborators” were not following an agreement reached last October that private sector losses should be 50%.
There is also ongoing uncertainty over what would constitute voluntary or involuntary losses – and thus what would represent a formal default – amid fears that credit default swaps, a form of bond insurance, could be triggered.
“The policymakers don’t want to reward the hedge funds for their perceived participation in the sovereign problem,” says Ira Jersey, New York-based interest-rate strategist at Credit Suisse.
As things stand, Greece will be unable to make a €14.5 billion bond payment that comes due on March 20.
On the currency markets, the Euro gained against the Dollar Wednesday morning, breaching $1.28 for to make a 1.5% rally from last week’s low. The gold price in Euros meantime – in contrast to the Dollar price to buy gold – fell throughout Wednesday morning, approaching Asian session lows and hitting €41449 per kilo (€1289 per ounce).
Stocks also rallied, with the FTSE in London up 0.8% by lunchtime from its morning low.
“As we see it [though] a bearish reversal in risk sentiment is entirely plausible once the morsels of positive news that have sustained it so far in 2012 dry up and markets are forced to confront the larger issues,” notes one gold bullion dealer here in London, adding that a “dramatic risk-off move” could lead more investors to buy gold, “although likely US Dollar strength could limit any gains.
UK unemployment meantime rose to a 17-year high last month, hitting 2.68 million, figures from the Office for National Statistics published Wednesday show. The unemployment rate meantime rose to 8.4% last quarter, the highest level since the start of 1996.
Over in China, a number of analysts report rumors that the central bank may cut the reserve requirement ratio – the amount of cash banks must hold relative to their assets.
“This is…adding to support for precious metals, [but] historically, changes in the reserve requirement have little bearing on commodity prices over the long term,” says Standard Bank commodity strategist Marc Ground.
Gold value calculator | Buy gold online at live prices
Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK’s longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.
(c) BullionVault 2011
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.
Video courtesy of ForexCT – A leading Australian forex broker, liscensed by the Australian Securities & Investments Commission, offers the MetaTrader4 and PROfit Platform to retail traders. Other services include Segregated Accounts, Trading workshops, Tutorials, and Commodities trading.
Source: ForexYard
Positive Chinese and German economic indicators led to some bullish movement for the euro during mid-day trading yesterday. That being said, the gains were for the most part short-lived, as the common currency once again began moving downward by the evening session. Today, traders will want to pay attention to a batch of British and US indicators that are likely to generate market volatility.
The USD saw bearish movement against many of its main currency rivals yesterday, as a positive Chinese GDP number combined with a better than expected German economic sentiment figure drove investors toward riskier assets. The EUR/USD went as high as 1.2807 before hitting resistance and changing course. That being said, the pair is still far above the 17-month low the pair hit last Friday. Against the Australian dollar, the greenback gave up well over 100 pips throughout the day before staging a correction.
Today, a batch of US economic data is expected to generate market volatility. Both the PPI and TIC Long-Term Purchases figures, set to be released at 13:30 and 14:00 GMT respectively, are forecasted to show positive growth in the US economy. It is possible that any positive US data will generate risk taking among investors which could in turn drive the USD lower. That being said, investors remain cautious about going long with currencies like the euro. Should the USD turn bullish again today, it will likely be a temporary trend.
A positive Chinese GDP report, combined with a better than expected German ZEW Economic Sentiment figure led to some investor risk taking throughout yesterday’s trading. The euro received a significant boost against its safe-haven currency rivals as a result of the news. Against the US dollar, the euro rose as high as 1.2807 before retreating during the evening session. Still, the EUR/USD remains well above the 17-month low reached last week at 1.2624. The EUR/JPY, which recently hit an 11-year low, shot up well over 100 pips before hitting resistance during yesterday’s afternoon session.
Analysts continue to warn that any gains the euro makes for the foreseeable future are likely to be short lived. The problems surrounding the euro-zone debt crisis are too big to ignore and are likely to grow unless significant action takes place in the near future. At the moment, investors remain concerned that Greece will have to default on its debt, while it is widely expected that the EU will cut interest rates in the near future. While positive global data is likely to boost riskier currencies like the euro in the short-term, they may not be able to help them stage a long-term recovery.
News that the Bank of Canada (BOC) would leave national interest rates at 1% did not come as a shock to many traders as the move was widely expected. Still, the assumption that weak global data and the euro-zone debt crisis would prevent Canada from raising interest rates for at least another year led to some losses for the loonie in trading yesterday.
Today, the BOC Monetary Policy Report and press conference will likely shed some more light on the current state of the Canadian economy. Should the BOC’s paint a negative economic outlook for the near future, the CAD may take some significant losses during the evening session.
The price of crude oil rose above $101 a barrel yesterday, as positive global data led to risk taking among investors. The price of oil typically increases along with the euro, as the commodity becomes more attractive to international investors when there is a weak US dollar. That being said, oil was unable to maintain its bullish movement, and began to stage a downward correction by the evening session.
Today, oil prices will likely be determined by news out of the euro-zone. At the moment, fears that Greece will default on its debt have led to a return to safe-haven currencies. Should this trend continue, oil will likely fall as a result. Traders will also want to keep a close watch on the current state of Middle East tensions. Any further escalation in the current situation between Iran and the West may lead to an increase in the price of oil.
Most long term technical indicators place this pair in oversold territory, meaning an upward correction is possible in the near future. The daily chart’s Williams Percent Range is around the -95 level, while the weekly chart’s Relative Strength Index has drifted below 30. Going long this week may be a wise choice.
Following last week’s bearish trend, technical indicators are now showing this pair trading in neutral territory. The daily chart’s Relative Strength Index is currently at 40, which typically signifies that no significant movement is expected in the near future. Traders may want to take a wait and see approach for this pair.
Most long term technical indicators are placing this pair in neutral territory, meaning that it may maintain its current trend for the time being. That being said, the Bollinger Bands on the daily chart appear to be tightening. If this continues, a price shift may take place. Traders will want to take a wait and see approach for this pair.
Technical indicators on both the daily and weekly charts are placing this pair in overbought territory, meaning a downward correction may take place. A bearish cross appears to be forming on the weekly chart’s Stochastic Slow, while the daily chart’s Williams Percent Range has gone above the -20 level. Traders may want to think about going short in their positions.
Technical indicators are showing that this pair may see some upward movement in the near future. The daily chart’s Stochastic Slow has formed a bullish cross, while the Relative Strength Index is hovering around oversold territory. Forex traders may want to go long in their positions today, as an upward correction could take place.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
Stephen Colbert pokes fun at the nation’s campaign finance laws through “The Definitely Not Coordinating with Stephen Colbert Super PAC”.
Britain’s finance minister Georger Osborne and his Japanese counterpart, Jun Azumi, stay focused on the euro zone crisis.
As high-paying finance jobs disappear in Europe and the US, many young bankers have been looking to Asia. But the grass isn’t always so green on the other side of the pasture, reports Jon Gordon.
Indonesia’s central bank, Bank Indonesia, widened its interest rate corridor for interbank funding (the deposit facility rate) to 200 basis points below the Bank Indonesia rate, from 150bps previously – effectively easing monetary policy settings. The Bank said [translated]: “This is done as a step to strengthen the liquidity management of banks, by encouraging banks to transact with each other, while expected to improve the efficiency of banking. This decision is effective from Wednesday, January 18, 2012.”
The Bank held its rate unchanged at its January meeting, and cut the interest rate by 50 basis points at its November 2011 meeting, and also cut the key monetary policy rate (the BI Rate) by 25 basis points to 6.50% at its October meeting. Previously the Bank raised the BI rate by 25 basis points to the current 6.75% in February 2011. Indonesia reported annual inflation of 4.1% in November, down slightly from 4.61% in September, compared o 4.79% in August and July, 4.61% in June, 5.98% in May, 6.16% in April, and 6.65% in March, and just inside the inflation target of 5% +/-1% in 2011 (which changes to 4.5% +/-1% in 2012).
Bank Governor Nasution previously said the Bank expects “inflation next year [2012] will be below 5%”. Bank Indonesia has previously forecast GDP growth of 6.3-6.8% in 2011 and 6.4-6.9% in 2012 for the Indonesian economy, meanwhile Indonesia reported annual GDP growth of 6.5% in the June quarter last year. The Indonesian Rupiah (IDR) has weakened by about 1% against the US dollar over the past year, and the USDIDR exchange rate last traded around 9,118.
