Commodities Trader Undervalued

Fundamental Analysis EUR "The debt crisis damps demand for German products in Europe but Russia, China, India, Brazil and South Africa should generally be able to compensate declining sales." - Gerd Hassel, an economist at BHF Bank AG German industrial production unexpectedly soared in March, adding to signs the euro zone’s largest economy is weathering debt crisis. Production jumped 2.8 per cent from February, when it declined 0.2 per cent, said the Economy Ministry on Tuesday. USD "People are preparing for a shock that may or may not occur." - Michael Holland, chairman and founder of New York-based Holland & Co. U.S. stocks fell on Tuesday as Greece’s bailout pledge came into question. GBP "The health of the housing market is a reverberation of consumer confidence and credit ...

Fundamental Analysis EUR "Once we hit the 6.5 per cent mark , the alarm bells will go off loudly in Brussels and more rhetoric will be coming from the European Central Bank" - Adrian Miller, a global markets strategist at GMP The rating agency Standard & Poor’s has downgraded Spain’s credit rating by two notches to BBB-plus with a negative outlook from A, citing expectations the government finances will deteriorate. USD "While the economy continued to grow in the first quarter, the expansion remains modest in pace and subpar from a historical perspective" - Jim Baird, chief investment strategist at Plante Moran Financial Advisors The U.S. economy grew at a slower pace than forecast in the first quarter as businesses cut on investment. Gross domestic product increased at a 2.2 per cent ...

Fundamental Analysis EUR "Ifo index paints a too positive picture of the growth prospects for the German economy" - Carsten Brzeski, senior economist at ING Group German business confidence unexpectedly improved in April, a sign the euro zone’s largest economy is weathering Europe’s debt crisis. Ifo business climate index, which is based on a survey of 7,000 businesses, rose to 109.9 points from 109.8 points in March. USD "A strong Germany helps the euro massively, and helps other assets too" - Neil Jones, head of European hedge-fund sales at Mizuho Corporate Bank Ltd. U.S. stocks closed mixed on Friday while German investor confidence unexpectedly improved and blue chip companies from General Electrics to Microsoft reported better than expected earnings. GBP "While the month of March ...

Fundamental Analysis EUR Spain faced increasing borrowing costs during successful sale of bonds with two and ten-year maturity. The country's Treasury sold 1,116 billion Euros of two-year bonds at yield of 3.463% and 1,425 billion Euros in ten-year bonds with yield of 5.743%. Demand for Spain's debt was strong as bids surpassed demand 3.3 times. USD The American session also gained from the higher-than-estimated German Ifo business climate reading released today. The increase in stocks was also accompanied by a gain in commodity prices and a decline of treasury yields. GBP British FTSE 100 index traded modestly higher on Friday as data showed UK retail sales rallied in March, reaching 1.8% growth instead of predicted 0.4% gain. IMI Plc jumped 1.8% after engineering group reported an ...

Fundamental Analysis EUR "The debt crisis is far from over still and I think Spain will be worse before it gets better" - Henrik Drusebjerg, a senior equity strategist at Nordea Bank AB Spain sold 2.54 billion euros of debt dated 2014 and 2022 on Thursday, above the target range of 1.5 to 2.5 billion euros for the auction. USD "Progress in the labor market is not quite as strong as people had hoped, but we are still on a recovery track here" - Scott Brown, chief economist at Raymond James & Associates Inc. The number of Americans claiming for unemployment benefits declined by 2,000 to 386,000 in the week ended April 14 from the week before, said the Department of Labor on Thursday. GBP "Economic data does look like it is showing some stabilization" - Samantha Fitzpatrick, senior ...

Fundamental Analysis EUR France and Spain plan to assemble EUR 13.5 billion (USD 17.6 billion) in bill auction today as Spanish PM Rajoy struggles to reduce budget deficit and presidential elections in the France drive yields up. France is issuing 2017 bills and 2018 inflation linked notes, a maximum target of EUR 11 billion while Spain is planning to raise EUR 2.5 billion in 2-year and 10-year bonds. USD The IMF announced that it has secured 320 billion US Dollars in drive for increasing the fund's lending capacity. Switzerland and Poland have already contributed to the fund expansion. The IMF hopes to raise about 400 billion US Dollars in commitments from countries around the world. The move followed surging borrowing costs of Italy and Spain that escalated concerns over the Euro ...

(Reuters) - European shares fell on Tuesday, on track for two days of losses, as talks in Greece on a second bailout continued and after some company earnings including UBS (UBSN.VX) and Alfa Laval (ALFA.ST) reflected a slower growth environment in Europe. Investor sentiment fell as Greek leaders faced crunch talks to secure a fresh bailout package and avoid a messy default, which could cause havoc in the financial markets, although European shares were holding above a major resistance level. "The consequences of a Greek chaotic default is so serious and would not be in the interest of anyone," said Bill Dinning, head of investment strategy at Kames Capital in Edinburgh, which has $76.4 billion under management. "Policymakers in Europe certainly have the means to prevent it from ...

(Reuters) - The euro rose against the dollar on Tuesday, supported by expectations that a Greek debt restructuring deal could be clinched soon to help avoid a messy default, while a resurgent yen kept alive the risk of intervention by Japanese authorities. The dollar extended its recent losses against the yen to hit a three-month low, under pressure after the U.S. Federal Reserve said last week it was likely to keep interest rates near zero at least until late 2014. The euro got a lift after Greek Prime Minister Lucas Papademos said negotiators had made "significant progress" in talks to strike a restructuring deal on government debt, with the aim of a definitive agreement by the end of this week. But gains were likely to be tempered as worries mount that Portugal could follow Greece ...

Currencies are coming into focus again this week. Japanese officials have made another move to devalue the yen to keep their exports humming. Like other commodities, precious metals are affected by currency changes. Whether it is shifts in monetary policy or developments in the European Economic Community (EEC), when currency relationships change look for gold and silver prices to be impacted. Gold prices have been traditionally used as a store of value and considered by many as the ultimate currency. Investors have developed a trust in gold when they become fearful towards other investment vehicles like stocks and bonds. Gold prices are typically valued in US dollars so as a result there tends to be an inverse relationship between the two. In other words, buyers and sellers of gold are ...