Asian equities soar on European optimism, Japanese export data

Asian equity indices have got off to a promising start on the first day of a new week and most of them are currently trading with large gains in the range of 1-4%. Sentiments in the region got buoyed by the European leaders’ assurances of an upcoming rescue deal for the region’s lingering debt problem. The weekend meeting of EU leaders resulted in “good progress”, though not many concrete details were announced post the meet, investors remain optimistic that region’s policy makers will announce significant measures on Wednesday to bolster the bailout fund and resolve Greece’s debt crisis, while also supporting the region’s banks.Over the weekend rally on Wall Street too supported sentiments in Asia amid speculations that QE3 might become warranted if necessary to boost the US economy challenged by unemployment and financial turmoil.

Benchmark in Tokyo traded with solid gains in the session after Japanese exports rose at a better than expected pace and signaled that the global economic outlook may not be as bad as feared earlier. Shares on Shanghai too have rebounded after trading in the red terrain earler as China’s Flash PMI indicated that resilient manufacturing activity in the country accelerated in October after a three-month contraction as new orders and new export orders strengthened.

Shanghai Composite gained 7.04 points or 0.30% to 2,324.31, Hang Seng rocketed 586.95 points or 3.26% to 18,612.67, Jakarta Composite spurted 68.84 points or 1.90% to 3,689.51, KLSE Composite climbed 17.54 points or 1.22% to 1,456.37, Nikkei 225 surged 119.92 points or 1.38% to 8,798.81, Straits Times ascended 46.53 points or 1.72% to 2,758.94, Seoul Composite soared 43.61 points or 2.37% to 1,881.99 and Taiwan Weighted jumped 186.67 points or 2.57% to 7,441.18.

Source: www.indothai.co.in

US markets closed lower on weak earnings by JP Morgan

The US markets closed lower on Thursday, with S&P 500 retreating after a three sessions rise, on disappointing earnings from JP Morgan Chase and after Spain had its long-term sovereign-debt rating cut. S&P lowered Spain’s rating to AA- from AA with negative outlook. Also, UBS AG, Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc had long-term issuer default grades cut by Fitch Ratings, which put more than a dozen other lenders on watch negative as part of a global review. The market mainly edged lower after JP Morgan reported that its net income fell in the third quarter, depressed by lower investment-bank fees. Also, China’s customs bureau reported exports climbed a less-than-expected 17.1% last month from the year-ago period, while Beijing’s trade surplus totaled $14.51 billion, the smallest since May.

US markets close mixed on Slovakian development

The US markets made a mixed closing on Tuesday amid lot of volatility, with investors unwilling to make big bets ahead of an unofficial start to the earnings season and Slovakia’s vote on the euro zone’s bailout fund. The day was marked by caution as investors were watching developments in Slovakia, where lawmakers delayed a vote on the expanded European Financial Stability Facility. Slovakian parliament rejected the measure to expand the 440 billion euros rescue fund. Of the 124 members only 55 backed the measure, far less than required majority of 76. The rejection also led the fall of the current four member coalition government.  The parliament, however, is still expected to approve the bailout fund later this week. Alcoa, the biggest US aluminum producer, became the first company of the Dow to report results for the third quarter. It announced a quarterly profit which was short of estimates.

US markets surge as France and Germany pledge to support Europe’s banks

The US markets surged on Monday, delivering their best one-day performance in over six weeks, as France and Germany pledged to do everything necessary to support Europe’s banks. The French and German comments gave investors hope that European officials may take bigger steps deemed necessary to control the region’s sovereign-debt crisis. German Chancellor Angela Merkel and French President Nicolas Sarkozy stated that they will deliver a plan to recapitalize European banks and address the Greek debt crisis by November 3. Also, Belgium stated that it will buy part of Dexia SA and provide security for depositors as part of a plan to rescue the lender.

US markets climbs for a third day in a row

The US markets closed higher for a third straight day on Thursday, sending the Dow industrials back above 11,000, as Europe stepped up efforts to bolster its banks and jobless claims rose less than expected. European Central Bank President Jean-Claude Trichet stated that ECB will resume covered-bond purchases and reintroduce year long loans for banks, while defying calls for an interest-rate cut and acknowledging the intensified downside risks to the economy. The European Commission is pushing for a coordinated capital injection for banks to shield them from the fallout of a potential Greek default.

Also, the US Labor Department stated that the first-time applications for jobless benefits last week rose by 6,000 to 401,000, as and the four-week average dropped to 414,000. Separately, President Barack Obama urged Congress to move quickly and pass his jobs bill, that would help protect the economy from another downturn should Europe’s debt troubles worsen. Obama’s proposal involves cutting payroll taxes for employers and employees, hiking expenditures for improving roads and other public-works projects and extending aid to states for education and emergency workers. Also, US Treasury Secretary Timothy F. Geithner told the Senate Banking Committee that there is absolutely no chance of another US financial institution collapsing like Lehman Brothers.

The Dow Jones industrial average gained 183.38 points, or 1.68 percent, to 11,123.30. The Standard and Poor’s 500 closed higher by 20.94 points, or 1.83 percent, to 1,164.97, while the Nasdaq composite gained 46.31 points, or 1.88 percent, to 2,506.82.

The Indian ADRs closed mixed on Thursday, Infosys Technologies was up by 1.23%, ICICI Bank was up by 1.06% and HDFC Bank was up by 0.73%. On the flip side, Patni Computer was down by 0.13% and MTNL was down by 0.01%.

Source: www.indothai.co.in

Indo Thai Securities Ltd IPO Oversubscribed!

THANKS FOR THE SUPPORT

IPO of Indo Thai Securities was subscribed 1.18 times on final day. It received total of 4.70 million against issue size of 4 million, of which 4.39 million were obtained at a cut-off price.

Indo Thai entered the capital market with a fresh issue of 4 million equity shares of Rs.10 each, in the price band of Rs. 70 to Rs. 80 a share, aiming to raise Rs. 280-340 million. The issue, comprising about 40% of the company`s post issue paid-up capital.

www.indothai.co.in

Launching Indo Thai securities IPO on 30 Sept 2011

View Prospectus

Website: www.indothai.co.in

Obama Courting Another Recession

Stocks are dropping like stones tossed into a summer lake, and the economy dances along the precipice of a second recession.

The U.S. economy is imploding, thanks to incompetence in Washington and arrogance on Wall Street. President Obama is hardly the victim of his predecessor’s mistakes as much as his own decisions.

Massacre continues for another day on US bourses

The US markets suffered a sharp plunge on Thursday, extending losses for the second day in a row with the major indices taking their hardest single-day hit in five weeks, amid widespread selling of stocks and commodities on escalated fears about the global economy. Investors’ reaction to the Federal Reserve’s statement late Wednesday continued. The central bank warned of risks to the economic outlook and unveiled a bond-swap program, seen as something that would have minimal sway in revitalizing growth. Also, HSBC’s preliminary China Manufacturing Purchasing Managers’ Index fell to a two-month low in September, signaling a broad slowdown in China’s economy.

US markets plunge after much awaited Fed move

The US markets suffered a sharp plunge on Wednesday, after the Federal Reserve moved to lower interest rates on consumer loans with a $400 billion debt-swap program that was widely expected. Fed stated that strains in global financial markets were among risks to the economic outlook. Also, a downgrade of several Italian bank ratings by Standard & Poor’s kept alive investor concerns over Europe’s sovereign-debt situation.

Fed policy makers stated that they would replace short-term debt in the central bank’s portfolio with longer-term Treasury bonds in a bid to further cut borrowing costs. The central bank, also reiterated to keep rates at historic lows near 0% through mid-2013, and stated that it was acting in view of significant downside risks to the economic outlook, including strains in global financial markets. The Fed also would reinvest principal payments from its holdings of mortgage-related securities, a move designed to help mortgage markets.

Early in the session, stock indices briefly added some gains after an industry report illustrated a surge in existing-home sales, with the National Association of Realtors reporting a 7.7% rise in August.

The Dow Jones industrial average lost 283.82 points, or 2.49 percent, to 11,124.80. The Standard and Poor’s 500 closed lower by 35.33 points, or 2.94 percent, to 1,166.76, while the Nasdaq composite lost 52.05 points, or 2.01 percent, to 2,538.19.

The Indian ADRs closed in red on Wednesday, Infosys Technologies was down by 0.95%, HDFC Bank was down by 0.78%, Tata Motors was down by 0.55%, Dr. Reddy’s Lab was down by 0.41% and Sterlite Industries was down by 0.41%.