Free Intraday Cash Tips from Tipz.in for 23rd Jun 2010
OPTOCIRCUI
Action ................Trigger Price.............Stop Loss............... Target-1...........Target-2
BUY ABOVE....................237.........................234.5.............................241...................243
Tuesday, June 22, 2010
Watch Daily Foreign Market Update Overview
Daily Market Update
On Wall St overnight, US stocks gave up early gains as excitement over the news from China waned and a downgrade of French banking giant BNP Paribas thrust European concerns back into focus.
The S&P 500 had been up as much as 1.2% earlier before reversing to close lower by 0.4%. The Nasdaq was the worst performer, down 0.9%, while the Dow Jones Industrial Average closed down a modest 0.1%.
US markets had opened strongly with the S&P trading to an intra-day high of 1131, a gain of 1.2%. However as the euro pulled back to the low 1.23 level, equity markets reacted negatively. Importantly for the UK open, the S&P dropped 1.2% from the FTSE close, hence we should see a weaker open.
There had been analysts suggesting the positive response to the news from China was an over-reaction, with traders buying risk assets in Asia. After participants decided to actually take a closer look at the announcement, the market realised that the revaluation was still going to be gradual and very much on China terms. At the end of day, it looks like it was an emotional reaction to the news, with traders quickly selling the rally after the strong US open.
Overnight, early in the Asian trading session we saw the PBOC increase the yuan fix by 0.43%, to 6.7980 from 6.8275. This was what currency and equity traders would have ideally liked yesterday, however even though the Chinese had compromised under pressure from US and other G20 nations to revalue the yuan, they sent an indirect message that they would not get it all one way. There are still those who see the revaluation of the yuan as a PR exercise and the muted reaction to buying in risk currencies may be testament to the fact we may see a gradual approach to the appreciation. Australian miners Rio Tinto and BHP Billiton did have a positive reaction to the news so this may provide some support for the UK listing.
In Asia, regional markets are mostly lower this Tuesday, the first fall in 9 sessions following the weaker leads from the US and a downgrade from Fitch to French banking giant BNP Paribas. Standard & Poors also said Spanish lenders face years ahead because of the nation’s slow growth. As at 06:00 the Nikkei is the heaviest faller, down 1.1% while the Hang Seng is flat. In China, the Shanghai Composite is firmer by 0.2%.
Given these leads from the US and Asia, the expectations are for major European markets to open markedly lower, although traders are likely to find fresh economic data to be working with very quickly. The German IFO survey will be released at 9am (BST), whilst the UK emergency budget report is also set to carry some significant news in the shape of tax changes and cutbacks on a number of public spending projects. Arguably this could see movement in either direction if too much downside has already been factored in, but the detail could well take some hours to digest in full. There's an interim management statement due from Whitbread this morning ahead of the company's AGM but elsewhere the corporate calendar remains quiet. Again, BP will be one to watch after the stock’s ADR tumbled almost 5% in US trade last night.
Ahead of the open we're calling the FTSE down 48 at 5251, the DAX down 38 at 6255 and the CAC down 39 at 3697.
On Wall St overnight, US stocks gave up early gains as excitement over the news from China waned and a downgrade of French banking giant BNP Paribas thrust European concerns back into focus.
The S&P 500 had been up as much as 1.2% earlier before reversing to close lower by 0.4%. The Nasdaq was the worst performer, down 0.9%, while the Dow Jones Industrial Average closed down a modest 0.1%.
US markets had opened strongly with the S&P trading to an intra-day high of 1131, a gain of 1.2%. However as the euro pulled back to the low 1.23 level, equity markets reacted negatively. Importantly for the UK open, the S&P dropped 1.2% from the FTSE close, hence we should see a weaker open.
There had been analysts suggesting the positive response to the news from China was an over-reaction, with traders buying risk assets in Asia. After participants decided to actually take a closer look at the announcement, the market realised that the revaluation was still going to be gradual and very much on China terms. At the end of day, it looks like it was an emotional reaction to the news, with traders quickly selling the rally after the strong US open.
Overnight, early in the Asian trading session we saw the PBOC increase the yuan fix by 0.43%, to 6.7980 from 6.8275. This was what currency and equity traders would have ideally liked yesterday, however even though the Chinese had compromised under pressure from US and other G20 nations to revalue the yuan, they sent an indirect message that they would not get it all one way. There are still those who see the revaluation of the yuan as a PR exercise and the muted reaction to buying in risk currencies may be testament to the fact we may see a gradual approach to the appreciation. Australian miners Rio Tinto and BHP Billiton did have a positive reaction to the news so this may provide some support for the UK listing.
In Asia, regional markets are mostly lower this Tuesday, the first fall in 9 sessions following the weaker leads from the US and a downgrade from Fitch to French banking giant BNP Paribas. Standard & Poors also said Spanish lenders face years ahead because of the nation’s slow growth. As at 06:00 the Nikkei is the heaviest faller, down 1.1% while the Hang Seng is flat. In China, the Shanghai Composite is firmer by 0.2%.
Given these leads from the US and Asia, the expectations are for major European markets to open markedly lower, although traders are likely to find fresh economic data to be working with very quickly. The German IFO survey will be released at 9am (BST), whilst the UK emergency budget report is also set to carry some significant news in the shape of tax changes and cutbacks on a number of public spending projects. Arguably this could see movement in either direction if too much downside has already been factored in, but the detail could well take some hours to digest in full. There's an interim management statement due from Whitbread this morning ahead of the company's AGM but elsewhere the corporate calendar remains quiet. Again, BP will be one to watch after the stock’s ADR tumbled almost 5% in US trade last night.
Ahead of the open we're calling the FTSE down 48 at 5251, the DAX down 38 at 6255 and the CAC down 39 at 3697.
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