Chains And Weak European

U.S. Review To QE3 or Not To QE3: That is the Question - Some market participants are beginning to speculate about another round of quantitative easing. Although recent growth indicators have not been particularly stellar, the economy is still growing. Moreover, core CPI inflation in the neighborhood of 2 percent means that the threshold for more QE is relatively high. - Overall, indicators were positive during the week. Housing starts increased by 2.6 percent in April, the Empire Manufacturing index improved to 17.09 in May from a 6.56 print in April and retail sales printed a 0.1 percent increase in April, in line with expectations. To QE3 or Not To QE3: That is the Question QE3 seems to have more lives that a cat; it comes back into the forefront of the U.S. economy discussion ...

Fundamental Analysis EUR The 17-nation currency depreciated versus its US counterpart and Japanese currency ahead of Spanish debt sale on Tuesday. The Euro shed 0.2% versus US Dollar to USD 1.3110 and gave up also 0.2% against Yen to JPY 105.42. Currently EUR/USD is trading at USD 1.3110 and EUR/JPY is trading at JPY 105.41. USD China has raised its US debt holding for the second consecutive month as country's foreign exchange portion continued to advance. China purchased 12.7 billion US dollars of the US Treasuries in February thus boosting the debt holding to 1,178.9 billion US Dollars, according to the US Treasury Department. Chinese foreign exchange reserves gained 3.9% in Q1 on an annual basis. GBP FTSE 100 index rallied on Tuesday as Spanish successfully auctioned bonds and US ...

(Reuters) - Stocks edged higher on Tuesday as investors awaited the outcome of discussions on a bailout package for Greece that is critical to the country avoiding a chaotic default. Greek officials worked on the draft of a text on the 130-billion-euro bailout plan that will be put to political leaders for approval while strikers protesting against more austerity tussled with police outside parliament. A light U.S. economic calendar this week shifted investor focus back to the euro zone. With the S&P 500 up nearly 7 percent this year the market has grown hesitant before Greek leaders put pen to paper on the terms of the deal. An improving technical picture for equities, reasonable earnings, better economic data and optimism over Europe's debt crisis were all boosting stocks, said Marc ...

Fundamental Analysis EUR Belgian business climate improved in January, but remained in the negative territory since May 2011. The business climate index added 1.1 point to minus 9.5 this month on a seasonally adjusted basis from minus 10.6 in the preceding month, reported the Bank of Belgium. Experts predicted the index to inch up 0.5 points approaching minus 10.1 this month. USD US President Obama called the government to impose higher taxes on country's wealthy to restore income equality in US economy, fueling predictions he will use this call in his election campaign. Obama claims that those who earn millions must pay at least 30% tax to make sure more citizens have a fair share of income. President also demanded to create more jobs in domestic natural gas production and ...

Fundamental Analysis EUR After substantial gains on Tuesday, German benchmark DAX index was marginally up on Wednesday. At the moment of writing DAX index is 0.07% or 4.21 points up at 5,893.97. Among main decliners were German automakers BMW AG and Volkswagen AG tumbling 1.2% and 1% respectively. USD Dow Jones Industrial Average traded nearly flat on Tuesday following 427 point increase previous week. Blue chip index slipped 0.02% or 2.65 points closing at 12,291.35. Dow Jones was higher most of the session but retreated shortly ahead of closing as Sears announced about closing 120 of its stores. GBP Brazil has outperformed the UK as it has become the sixth largest economy in the world, according to an economic research group. Brazilian economy expanded by 7.5% in 2010 and is ...

(Reuters) - Japan's central bank offered a bleaker view of the economy and the government warned of worsening business sentiment as exports slumped, adding to evidence of the pain Europe's debt crisis is inflicting on global growth and Japan's recovery prospects. But in a sign Japan's tattered finances leave it with little room for more fiscal stimulus, Rating and Investment Information Inc (R&I) stripped the country of its AAA status, the first downgrade by a domestic credit ratings agency. That puts the onus on the Bank of Japan, which kept monetary settings unchanged at a rate review on Wednesday but cut its economic assessment and acknowledged that growth will stagnate at least until spring next year. BOJ Governor Masaaki Shirakawa said that while Japan's economy was still headed ...

(Reuters) - The Bank of Japan kept monetary settings unchanged on Wednesday but offered a bleaker view on the economy than last month on mounting evidence of the pain Europe's debt crisis is inflicting on global growth and Japan's recovery prospects. Slowing exports, worsening business sentiment and soft capital spending are challenging the central bank's view that the world's third-largest economy will recover early next year. In a sign of the growing damage from the global slowdown, Japan's exports fell at their fastest annual pace in six months in November with shipments to Asia declining on weak demand for semiconductor chips and digital cameras. The BOJ held off on offering additional monetary stimulus, as widely expected, but cut its economic assessment to say that the pickup in ...

The Weekly Bottom Line HIGHLIGHTS OF THE WEEK United States This time last year many economists, including ourselves, were hopeful that the U.S. economic recovery had finally hit its stride. Unfortunately, a series of economic shocks in the first half of the year caused growth to stall by the summer. Once those shocks petered out, growth resumed course, and once again the economy is showing year-end momentum. However, this year ushered in a new phase of the economic recovery where the nature of the downside risks have turned decidedly political. On Capital Hill, much-needed fiscal stimulus is on the chopping block. In Europe, a lack of policy supports threatens the survival of the common currency itself. While recent momentum gives cause for hope that the economic ...

(Reuters) - Factories shrugged off weakness in the global economy during November as manufacturing activity rose to its highest level in five months, giving a fresh sign that the American economy could be accelerating. Also pointing to stronger growth, U.S. construction spending increased more than expected in October. "We could see an acceleration in the momentum ... in the manufacturing sector and the economy more generally," Millan Mulraine, a macro strategist at TD Securities in New York, said on Thursday following the data's release. The Institute for Supply Management said its index of national factory activity rose to 52.7 from 50.8 the month before. The reading topped expectations of 51.5, according to a Reuters poll of economists. Separately, the Commerce Department said ...