Posts Tagged ‘japan’
European stocks Tumbled, Euro Derailed
As was expected, the stock market in the region of Europe directly react negatively to the decision decreased the debt rating of 9 countries on the continent of Blue. However, the decline was the feared perpetrator who whet the markets.
As quoted from Reuters.com pages, Monday, January 16, 2012, the FTS Eurofirst 300 index stock (FTEU3) which is a stock index-top stocks in Europe, down 0.5 percent to 1,013 level General Agreement.
“A decline in ranking bonds France already according to the estimate. So, no negative surprises here. This decline is very logical after the United States (U.S.) experienced a similar thing, “said the Head of Quantitative Sales Trading Global Equities, David Thebault.
However, David still wary of the impact of a decrease in the debt rating of 9 European countries were against a European Financial Stability rating Facility (EFSF) or European funding facilities now ranked triple a.
As known, at the end of last week, the Standard & poor’s lowered the rating of bonds, Italy, Portugal, Spain and Cyprus as two levels. Meanwhile, France, Austria, Malta, Slovakia, and Slovenia only down one level.
International rankings of institutions that also gave a negative outlook towards the 14 other countries and the possibility of a further decline in ratings.
Around Europe, the FTSE 100 index in London Stock Exchange was down 0.4 percent, the DAX Germany 0.6 percent, and France weakened 1 percent CAC.
Stocks that go down pretty big among Society General of France are SAG 4.4 percent and BNP Paribas by 3 percent. Meanwhile, Italy’s stock exchange, fell 6 percent Uni Credit.
The exchange rate of the euro also recorded its largest decline against the yen for 11 years and 5 months in Japan against the u.s. dollar. Euro recorded a 0.4 percent against the yen weakens Japan became 97,14 yen.
This position is equal to the lowest point is the exchange rate of the euro against the yen on 11 of last year amounted to 97,04 yen. The same condition occurs on the exchange rate of the euro against the US dollar which dropped 0.3 percent to US $ 1,2646
Tags: BNP Paribas, France, Italy, japan, London Stock Exchange, Standard & Poor, UniCredit, United States | No Comments »
Europe Back So The Focus Of The World Stock Exchange
The news less savory from Europe come back to haunt the world stock exchange. Rating agency Fitch Rating concerns that will lower the ranking of debts owed to Italy and Spain to make Japan’s Nikkei stock index corrected at the opening of stock trading today.
As quoted from Reuters.com pages, Thursday, January 12, 2012 reportedly Nikkei Index down 0.3 percent to as low as 8.426,59. This reduction makes the main Exchange back moves to Japan’s average level were 8,485 has been running for 25 days of trade exchanges.
Decline in the index that took place in Japan this was helped by the lack of improvement in economic data from the Ameriksa States (u.s.).
Not only from the stock exchange in Japan, South Korea also possible today will start trading stocks with flat or even position tends to weaken. Again, the main concern of investors is still directed at an auction of bonds in Spain and Italy.
While from the land of Uncle Sam, the financier is still waiting for test results of the European market bonds can be considered an indicator of the direction of improvement of the European debt crisis of the letter.
At the beginning of this year, the US stock exchange showed a good performance after scoring record highs over the past five months. The strengthening of the Exchange AS it is somewhat remarkable considering the investors concerned about the decrease in debentures rating of European countries.
What’s more the investors assess the European Central Bank does not provide support for a possible action of the fall of the euro currency.
At the close of trading yesterday, the Dow Jones closed in desk weakened 13.02 points or 0.1 percent to as low as 12.449 .45. While the S & P 500 index was up 0.4 points to 1,292,48 so is the level with the Nasdaq which strengthened 8,26 point or 0.31 percent to 2,756 level,76.
“The US dollar is now clearly being the safest trade purposes (safe heaven). Not only in fixed-income investments but also for financial investors, “said Managing Director at ICAP Equities in New York, Ken Polcari.
Tags: European Central Bank, European sovereign debt crisis of 2010–present, Italy, japan, Nikkei 225, South Korea, Spain, United States | No Comments »
Adverse Effects of Dumping Trade
September 15, 2008 to record the dark history of the United States economy, the bankruptcy of Leman Brothers, one investment company or the bank’s senior financial and 4th largest in the United States to be the beginning of the drama of the financial crisis in the country glorifying the capitalist system with no limits. Who would have thought a country which is a wall of the capitalist world would collapse. Unfortunately what happens in the United States quickly spread and spread throughout the world. Only moments after the collapse of the information world financial center in America, stock market transactions in various parts of the world such as Hong Kong, China, Australia, Singapore, South Korea, and other countries has decreased dramatically, even the Indonesian Stock Exchange (IDX) should be suspended for several days, Indonesian government also seemed to panic in addressing these issues, this event marks the initial phase feels the impact of the global economic crisis which was originally incurred in the United States is perceived by the Indonesian state.
Viewed from a contributing factor, the global economic crisis at this time is different from the economic crisis that hit Indonesia more or less a decade ago, which at that time the economic crisis that hit Indonesia more due to the inability of Indonesia provides a means of payment abroad, and not sturdy economic structure Indonesia, but the global financial crisis in 2008 is derived from factors that occur overseas. But if we are not careful and vigilant in addressing this problem, it’s possible impact of the global financial crisis in 2008 this will be the same or even worse when compared to the impact of the economic crisis that occurred in 1998.
Tags: Financial crisis of 2007–2010, Indonesia, Indonesian government, japan, Politics of Indonesia, Singapore, South Korea, United States | No Comments »
Dumping could cause a domino effect and affect the value of investments
China can reduce its holdings of dollar assets, but not “exaggerated” as the country tries, dominates the structure of their assets in dollars adjusted foreign exchange reserves, analysts say.
The foreign-exchange reserves amounting to nearly 2.4 billion U.S. dollars by the end of last year – one third of the world – is concerned that the sheer magnitude of the undertaking could be counterproductive.
About 70 percent of reserves in dollar assets, estimated by experts, and the high ratio means that suffered after the collapse of the U.S. dollar, China with huge losses.
But it is also difficult for China to dump its dollar assets because it could trigger a domino effect on other investors and amortization compared to companies in China.
“China is faced with a dilemma,” said Dong Yuping, an economist at the Chinese Academy of Social Sciences.
The latest U.S. Treasury International Capital (TIC) data, China is a net buyer of U.S. government bonds in December, reducing its holdings of 34.2 billion U.S. dollars to 755.4 billion U.S. dollars.
Part of the total stock of the way from China into the short and long term, U.S. declined Among the owners of government bonds abroad to 20.9 percent in December from 23 percent in mid-2009, and sold its position as the largest investor in U.S. Treasury Japan.
The data suggest that China may be more actively diversifying their reserves away from U.S. Treasury bills, “says Jing Ulrich, managing director and chairman of the China stocks and commodities, JP Morgan.” We hope that the country something to change some of the exposure to other currencies. ”
Although it is unclear whether the sale is part of a coherent strategy, the country must obtain a share “substantial” assets in dollars from its reserves, said Sun Lijian, an economist at Fudan University.
“China should not unduly reduce their dollar assets, given its high liquidity of the market,” he said. Assets in dollars is relatively easy to sell if China Guide is the money to ensure their financial stability, he said.
More than a decade after the Asian financial crisis of 1997-98, there are indications that the increasing use of the reserves in growth in China for the purchase of resources, technology and attract top professionals abroad. Although important, Sun said, China should have enough reserves to protect their financial stability.
Asia was a blow against international financial crisis when speculators attacked the currencies of various countries appear not to fit you into a spiral of currency depreciation, economic contraction and social chaos.
Since then, Asian countries, increasing attention paid to foreign exchange reserves, and now has seven of the 10 nations.
While China’s growing reserves, but the fear increases the possibility of inviting speculative capital flows, especially if the economic recovery is faster than in other regions.
As soon as the transfer of capital from the country, there is no crisis on the domestic market and the economy, “said SO
To tackle the problem, China needs to accelerate its attempts to balance between the pace of domestic demand and exports, to spur consumption as an important engine for economic growth, “said Dong.
Tags: asian financial, assests, china, companies, dominates, Dumping, economic, exchange, financial, foreign exchange, government, investment, investor, japan, speculative | No Comments »