StockMarkets.com - Financial News and Insight

World Markets Affected by Greek Debt Resolution Delays

Editor — Thu, 09 Feb 2012 10:00:04 +0000

As the European Central Bank struggles to reach consensus on how it will contribute to the restructuring of Greece’s debt, stocks on Wall Street closed higher than expected. The Dow Jones Industrial Average gained 5.75 points to 12,884; the Nasdaq Composite climbed 11.8 points to 2,916; and the Standard & Poor’s 500 rose by 2.9 points to close the day at 1,350. In contrast London’s FTSE dropped by 0.24 percent, with Germany’s DAX closing down 0.08 percent. Hong Kong’s Hang Seng index rose 1.54 percent, and Japan’s Nikkei Average close 1.1 percent up. Greek Prime Minister Lucas Papademos is engaged in negotiations with his country’s political leaders in an attempt to finalize austerity measures. The austerity package has reportedly been presented in a fifty-page document to be studied by the three parties supporting the country’s transition government under the leadership of Papademos. Emphasizing the meaning of “austerity” in economic jargon, the package includes cuts of up to €360 from monthly pensions, a twenty percent reduction on minimum wages, and the loss of up to 15,000 civil service jobs. The support of the European Central Bank is vital for Greece to resolve its debt problems, as it urgently requires €130 billion [...]

Wall St Boosted by Fed Rates Forecast

Editor — Thu, 26 Jan 2012 09:39:09 +0000

Following a slow start on Wall Street on Wednesday, US stocks rebounded on news that the Federal Reserve intends to keep interest rates low through to late 2014 – an adjustment of its previous indication that rates would be kept low through to mid-2013. The announcement came as the Fed’s two-day policy meeting drew to a close, and by the end of the day the Dow Jones industrial average had gained 83 points, recovering from its loss of 95 points in the morning trading session. The Standard & Poor’s 500 gained 11 points, after having lost 7 points earlier. The Nasdaq composite added 32 points, with Apple and software company CA Inc reporting better than expected earnings and boosting the tech-favored index. While investors are clearly encouraged by the Federal Reserve’s commitment to low interest rates, in view of favorable economic data of late there are some who are questioning why the Fed is being so cautious. The federal funds rate is one of the Fed’s main avenues for stimulating the sluggish economy as it determines the interest rate charged by banks to one another for overnight loans. The goal of keeping this rate low, is to lower interest rates [...]

NYSE Euronext/Deutsche Boerse Deal May Be in Jeopardy

Editor — Thu, 12 Jan 2012 08:57:13 +0000

While a final decision has not been made yet, it has been reported that the European Union has strong reservations about giving the go-ahead to the NYSE Euronext/Deutsche Boerse. Sources in the know have revealed that European Union antitrust regulators have made a recommendation that the deal should not be finalized, citing concerns that this may result in a European monopoly in exchange-traded futures and options. While speculation is rife, the final say on whether the deal can proceed or not lies with the twenty-seven European Union commissioners. They are scheduled to meet on February 1, with their ruling expected on or before February 9. The two exchanges are nonetheless determined to continue with negotiations which received Deutsche Boerse shareholder approval in July last year. Executives from both exchanges met on Wednesday to discuss the matter. Chief Executive of NYSE Euronext, Duncan Niederauer, noted that the recommendation by EU antitrust examiners was flawed in that it appears they have not factored in competing markets in privately traded derivatives and international competitor exchanges. While analysts disagree on whether approval of the deal will benefit the exchanges or not, executives of both the Deutsche Boerse and NYSE Euronext are standing by their [...]

Wall Street Indexes, Auto Industry, Housing Market at Year End

Editor — Thu, 29 Dec 2011 09:06:07 +0000

As 2011 draws to a close, Europe’s debt problems remain in the spotlight for anxious Wall Street investors, resulting in stocks being down by more than one percent at close of business Wednesday. Trading volumes have been light in this last week of the year, and with few economic and corporate reports due it is doubtful that this light trading trend will change until the New Year. Analysts have noted that recent market movement is likely to have been influenced by investors taking stock of their investment portfolios and taking action to balance these in preparation for 2012. The Standard & Poor’s 500 dropped into negative territory for the year by losing 16 points, or 1.3 percent on Wednesday, while the Nasdaq composite dropped 35 points, or 1.3 percent, and the Dow Jones industrial average closed with a decline of 140 points or 1.1 percent. With the tech sector being negatively impacted by Fossil, RIMM and Netflix, the Nasdaq is down by about two percent for the year. Of the three major Wall Street indexes, at five percent up the Dow is the only index to remain in positive territory for the year. Although the auto industry has a long [...]

European Debt Crisis Could Impact U.S.

Editor — Thu, 15 Dec 2011 13:24:33 +0000

In a meeting on Capitol Hill on Wednesday, Federal Reserve chairman Ben Bernanke reportedly revealed to Republican senators that he is concerned about the unresolved European debt problem, noting that a collapse of European markets would be detrimental to the United States. Despite the so-called ‘fiscal plan’ agreed to by Eurozone members last week, Bernanke is not the only influential figure voicing his concern over the ability of European authorities to put their house in order. Britain is not in agreement with the plan, a key point of which is for Eurozone members to contribute an additional €200 billion to the IMF. A further indication that enthusiasm for the fiscal plan is waning, is the fact that the euro fell to below the $1.30 mark on Wednesday, its lowest point since mid-January this year. The reasons for the rise and fall of the euro are many, and theories and opinions abound, but the fact remains that the national debts of some euro members, most notably Greece and Ireland, have brought the currency to the brink of collapse, and leaders are desperate for a solution. Although the European debt crisis is far from resolved, US stocks showed a slight improvement on [...]

Facebook IPO May Happen Before Year-End

Editor — Thu, 01 Dec 2011 02:13:58 +0000

As social media continues to gain ground both in the business world and with private users, speculation continues as to whether Facebook, arguably the most popular social media network at this time, will go public. Following LinkedIn's successful initial public offering in May this year, investors appeared keen to support IPOs by prominent players in the social media segment of the tech sector. So there was a measure of disappointment that Facebook seemed to be dragging its heels with regard to going public, with rumors that if this happened at all, it would only be in 2012. As we enter the last month of 2011, however, speculation has resurfaced that Facebook may very well issue an IPO before the end of the year, with the objective of raising $10 billion, valuing the company at $100 billion.

SOPA Triggers Tech Sector Backlash

Editor — Thu, 17 Nov 2011 08:39:46 +0000

With tech and social media companies continuing to grow in size and influence in the US economy, investors take note when companies like Google and Facebook make waves about proposed legislation affecting these market sectors. The Stop Online Piracy Act (SOPA) introduced in the House of Representatives at the end of last month, has these tech giants up in arms as they criticize the proposals for being too stringent, noting that it opens up possibilities for a host of unintended consequences. As the name of the act suggests, its intention is to deal with trademark and copyright issues by targeting foreign sites that facilitate piracy of copyrighted materials such as music, films and television shows.

Stocks Rally on Fed’s Resolve to Aid Economic Recovery

Editor — Thu, 03 Nov 2011 10:01:59 +0000

The first two days of the week saw Wall Street markets declining significantly, with a noteworthy recovery occurring on Wednesday afternoon. The latest policy statement from the Federal Reserve, backed up by positive remarks from Fed Chairman Ben Bernanke, indicate a commitment from authorities to continue to assist the US economy in its recovery efforts. The Dow Jones industrial average climbed by 178 points, with the S&P 500 rising by 20 points, and the Nasdaq composite surging 33 points, being 1.5 percent, 1.6 percent and 1.3 percent respectively.

US Job Market, Europe Crisis, Earnings of Interest in Week Ahead

Editor — Mon, 31 Oct 2011 09:31:35 +0000

With analysts warning that the current climate of market uncertainty is far from over, it appears that Wall Street is set to end the month of October on a high, with the Dow recording the greatest October gain ever. Despite the fact that French President Nicolas Sarkozy has been reported as saying that Greece should never have been permitted entrance to the Eurozone in 2001, European authorities have reached an agreement and mapped out a plan to rescue ailing European countries, including Greece, Italy and Spain. This has done much to boost confidence among Wall Street investors who will continue to keep an alert eye on Europe as leaders of nations forming the G-20 gather in Cannes, with the debt crisis a highlight on the agenda for discussion.

Europe Resolution Boosts Investor Confidence

Editor — Thu, 27 Oct 2011 09:14:54 +0000

Tuesday saw a sharp drop in US stocks ahead of the EU summit to be held the following day. By Wednesday afternoon investors began gaining confidence that European authorities would agree upon a workable solution to Eurozone woes. Following an uneasy day on Wall Street, all major indexes ended the trading day higher with the S&P 500 moving up 13 points, the Dow Jones industrial average adding 162 points, and the Nasdaq composite climbing 12 points, being 1 percent, 1.4 percent and 0.5 percent respectively. Although details of the plan to bring Europe's debt crisis under control, and to assist its banking sector, still need clarification and fleshing out, the very fact that an agreement has been reached on how to move forward was enough to boost investor confidence to a degree.