*Stocks were generally weak in Asian trade. The Nikkei in particular had a bad day as it fell almost 3.6% on the session; the biggest daily decline in about three months. Australia and the Hang Seng were each down by about one percent and Shanghai lost a half percent. European indexes were also broadly lower with both the Footsie and Dax off by one percent. US stock futures are trading down a half percent.

*The Q2 reading of Australia’s Current Account Balance was a deficit of AD$5.6 billion, about one billion less than forecast. Their Net Exports as a percent of GDP rose 0.4% in the quarter.

*The July reading of Australia’s Retail Sales were +0.7% on a month on month basis, beating the estimate of +0.4%.

*The preliminary July reading of Japan’s Industrial Production is +0.3% on a month on month basis, better than the forecast for a decline of 0.2%.

*The July reading of Japan’s Retail Trade was up 0.7% from the month before; it had been forecast to gain 0.5%.

*The August reading of Germany’s Unemployment Rate was steady at 7.6%, as expected. The net change in the number of Unemployed was -17k, just missing the -20k estimate.

*In July there were 48.7k Mortgage Approvals in the UK, according to the Bank of England; a couple thousand more than expected.

*The weekly report on chain store sales from ICSC shows an increase of 0.1% on a week to week basis for the week ended August 28. The Johnson Redbook report of the same thing is due out at 7:55am CDT.

*The June reading of the Case/Shiller Home Price Index is due out at 8:00am CDT, it is expected to be +3.50% on a year over year basis. The August reading of the Chicago Purchasing Managers Index is due out at 8:45am CDT, three minutes earlier for subscribers. The Chicago PMI is expected to be 57.0, which would be down from 62.3 the month before. The August reading of Consumer Confidence is set to be released at 9:00am CDT, it is forecast to improve three tenths on the month to 50.7.

For more information visit  http://www.worldmarketmedia.com/779/section.aspx/2303/post/3-things-you-need-to-know-before-trading

- About the Author: WorldMarketMedia.com (The Global Online Investment Community) is a high traffic stock market, news data website providing cutting edge new media products and services to publicly traded companies worldwide. Our Editor’s Desk authors insightful real-time coverage on the economy, the capital markets and their listed companies. Article Source

Overnight Developments

• European stocks are weaker with the European DJ Stoxx 50 down -1.01% and Sep S&Ps down -4.20 points. The dollar and most commodities are lower while Treasuries and bunds are higher. European bank stocks are leading share prices lower with Raiffeisen International Bank Holding AG down 1.8% after the Austrian bank that operates in 17 former communist countries in eastern Europe reported Q2 net income of 71 million euros ($89.75 million), below analysts’ estimates of 99 million-euros. Eurobank Ergasias SA fell 3.1% as Greece’s second-largest lender said first-half profit fell after loan losses and taxes increased. Aug Euro-Zone inflation slowed to 1.6% y/y from 1.7% y/y in July, while the Aug Euro-Zone unemployment rate held at 10.0% for a fifth month, the highest in 12 years. In Germany, the number of people out of work declined -17,000 in Aug, its 14th consecutive month of declines, as the unemployment rate held steady at 7.6%. The German economy is leading Europe’s recovery as exports and investment surge, and may limit any slowdown in the Euro-Zone.
• The Asian markets today closed lower with Japan down -3.55%, Hong Kong -0.97%, China -0.41%, Taiwan -1.61%, Singapore -0.23%, South Korea -1.23%, India -0.34%. Asian stocks fell after slower-than-estimated growth in US personal income increased concern the economic recovery may falter. Japanese stocks tumbled despite an unexpected +0.3% m/m increase in Jul Japan industrial production and the larger-than-expected +0.7% m/m increase in Jul Japan retail sales. Stock prices in Japan remain under pressure on concern that the steps taken Monday by the BOJ and the government to halt the yen’s gain and boost economic growth will be insufficient. Q2 GDP in India expanded 8.8% annualized, its fastest pace in 2-1/2 years, which increases pressure on the Reserve Bank of India (RBI) to extend its recent string of interest rate hikes. The markets now expect another 25 bp rate hike by the RBI at its next meeting Sep 16 to cool inflation as India’s wholesale-price inflation has rem ained stubbornly around 10% since Jan.

Overnight U.S. Stock News

• Sep S&Ps this morning are down -4.20 points. The stock market yesterday opened lower and sold-off steadily the entire day and finished on its low (Dow -1.39%, S&P 500 -1.47%, Nasdaq Composite -1.56%). Bearish factors included (1) comments from the BOJ after its emergency meeting in which it expanded its bank loan program and said that "uncertainty" regarding the American economy is growing, (2) the weaker-than-expected Jul US personal income which fuels concern the economic rebound may slow further (+0.2% versus expectations of +0.3%), (3) the action by Morgan Stanley to cut its second-half GDP estimate for the US to between 2.0% and 2.5% from an earlier estimate of 3.0% to 3.5%, and (4) the action by Barclays Capital to reduce its year-end S&P 500 forecast to 1,120 from an earlier forecast of 1,220, saying "the market-implied probability of recession increases."
• Bullish factors included (1) carry-over strength from an early rally in European equities after Aug Euro-Zone economic confidence rose more-than-expected to its highest level in 2-1/2 years along with a rally in Asian shares after the BOJ expanded its bank-loan program, (2) the stronger-than-expected Jul US personal spending (+0.4% versus expectations of +0.3%), and (3) increased M&A activity after Sanofi-Aventis bid $18.5 billion for Genzyme, Intel agreed to buy Infineon Technologie’s wireless unit for $1.4 billion and 3M said it agreed to buy Cogent for $943 million.
• Ford Motor (F) slipped 2.1% in European trading on speculation that tomorrow’s US auto sales results will show that Aug sales this year were the slowest since 1982 as model-year closeout deals failed to entice customers.

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It is Friday, and there is not much to report.  Lots of red appears on my watch list and and a sigh of frustration escapes my mouth.  Yesterday it was reported that the unemployment rate continues to remain at 9.5% with figures showing less improvement now than earlier in the year, hinting at a slowed recovery.   It would seem that each day a new figure is released that swings the market wildly one way or another, making investment decisions very difficult.

One day were climbing out of the recession, and the next, our economy is undoubtedly headed for a double dip.  This morning the market dropped drastically, regaining about half of its losses by lunch.  International markets continue their decline as confidence in the U.S. economic recovery lessens each day.  The FTSE, DAX, and the Nikkei  all closed low especially Japan, closing down 183 points.  It has also been reported that China has begun to offload our Treasury bills, selling off its stockpile by about 10%.  China will not need us if we continue on in this manner.  Even the Quants cannot get  a firm grip on Wall Street anymore.

In an article by the New York Times, the writer explains that 2008 and 2009 were both bad years for quant investment managers.  Quant funds have dropped from $1.2 trillion to $467 billion.  The writer goes on to say that the finance world is undergoing a technical arms race to Out Smart and out Trade Wall Street, so don’t feel bad even the rocket scientists are taking a hit.  The market remains to defy quant theory and remain anomalous, and it would appear that the golden years of the Quants, where Jim Simmons returned 39% a year, after fees between 2000 and 2007 are over.

Each day it would seem that the news grows more grim.  China is at our heels and our government continues to spend an exorbitant amount of money in an attempt to stimulate our economy.  It’s not working and we could be in a lot of trouble in the upcoming months.  Hopefully some positive news will be released next week to lift the spirit’s of U.S. investors but until then I think traders are just going to step away from their desk and take a long lunch.

For more information visit http://www.worldmarketmedia.com/779/section.aspx/2272/post/us-economy-continues-to-frustrate-investors

- About the Author: WorldMarketMedia.com (The Global Online Investment Community) is a high traffic stock market, news data website providing cutting edge new media products and services to publicly traded companies worldwide. Our Editor’s Desk authors insightful real-time coverage on the economy, the capital markets and their listed companies. Article Source

Overnight Developments

• European stocks are trading mildly lower with the European Stoxx 50 down -0.28%. Sep S&Ps are down 4.80 points (-0.44%). S&Ps are on edge ahead of this morning’s Q2 GDP report (expected +2.6%). There is also some caution ahead of Sunday’s expected release of China’s purchasing managers index due to talk of a sharply weaker figure. The market consensus is for a moderate 0.7 point decline to 51.4 from 52.1 in June. The Eurozone July CPI rose to a 20-month high of +1.7% y/y from +1.4% y/y in June, which was in line with market expectations. However, the core CPI rose to only +0.9% y/y from +0.8% y/y in June. Meanwhile, the Eurozone June unmeployment rate remained at 10%, the highest level in almost 12 years. The IMF said today that US banks may need as much as $76 billion more in capital. A senior executive from Moody’s said that Spain, already on review for a possible downgrade, will probably lose its Aaa rating. Spain has already lost its triple-A ra ting from S&P and Fitch. The Moody’s executive also said that the U.S. needs a "clear plan" for tackling its deficit.
• The Asian markets today closed lower across the board: Japan -1.64%, Hong Kong -0.30%, China -0.32%, Taiwan -0.49%, Australia -0.68%, Singapore -0.33%, South Korea -0.83%, Bombay -0.69%. Asian markets were undercut by the report that Japan’s June unemployment rate rose to a 7-month high of 5.3%, which was higher than the consensus of 5.2%. In addition, Japan’s factory output fell 1.5% m/m versus the consensus for a +0.2% rise.

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Overnight Developments

• European stocks are higher with the European Stoxx 50 up 0.55% after hitting a 3-month high. Sep S&Ps are up 5.70 points (+0.52%). European stocks received support from positive earnings reports from AstraZeneca and Volkswagen and from positive confidence and employment reports. The European Commission’s business and consumer confidence index rose to a 2-1/3 year high of 101.3 from 99 in June. Meanwhile, Germany unemployment fell by 20,000 to 3.21 million, which was the lowest level in 1-1/2 years and was the 13th consecutive monthly decline. The Germany unemployment rate fell to 7.6% from 7.7%. French Finance Minister Christine Lagarde today said she expects a "serious pickup" in global growth in 2011, "if only because global trade has significantly improved." UBS upgraded European stocks to "neutral" from "underweight," cut U.S. stocks to "neutral," and cut Japanese stocks to "underweight."
• The Asian markets today closed mixed: Japan -0.59%, Hong Kong +0.01%, China +0.50%, Taiwan +0.18%, Australia -0.13%, Singapore +0.41%, South Korea -0.17%, Bombay +0.19%. Asian stocks were undercut by Wednesday’s U.S. Beige Book report, which suggested lackluster U.S. demand for Asian exports. Panasonic fell 7.7% today after news that the company would offer stock to help it purchase full control of its Sanyo Electric and Panasonic Electric Works units.

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Overnight Developments

• Global stocks are mostly higher with the European Euro Stoxx 50 Index up +0.17% and Sep S&Ps up +0.60 of a point. The dollar and Treasuries are weaker and most commodities are higher as the markets square positions ahead of this morning’s Jun US payrolls report. The European Union’s statistics office today said that the May Euro-Zone unemployment rate remained at 10.0%, its highest level in nearly 12 years, after the April figure was revised down from a previously reported 10.1%. European automakers led stocks higher as Daimler AG rose 1.7% after it reported a 25% jump y/y in June US car sales and BMW gained 1.1% after it reported a 12% increase in June US car sales. Deutsche Boerse AG, the operator of the Frankfurt stock exchange, climbed 3% after Morgan Stanley upgraded the stock to "overweight" from "equal weight," saying that exchanges are "starting to look more attractive given lower balance sheet risks compared with banks and st rong, volatility-driven volumes." Steel makers also advanced led by a 2.3% jump in ThyssenKrupp AG after Goldman Sachs Group upgraded Germany’s largest steelmaker to "buy" from "neutral," saying "recent volatility in the equity markets has driven steel valuations to low levels."
• The Asian markets today closed mostly higher with Japan up +0.13%, Hong Kong -1.11%, China +0.32%, Taiwan +1.06%, Australia +0.03%, Singapore +0.85%, South Korea -0.75%, India -0.28%. Currencies of commodity-producing countries strengthened and mining stocks rallied after Australia reached a compromise on a new resource tax. Australian Prime Minister Gillard agreed to exempt most commodities from the tax, cut the planned tax on mining profits to 30% from 40% on coal and iron ore earnings and to raise the levy’s trigger level. Japanese exporters closed slightly higher after the yen fell back from a 7-month high against the dollar, although most shipping companies weakened after the Baltic Dry Index of shipping costs for commodities fell for a 25th consecutive session, its longest losing streak since Aug 2005. Goldman Sachs Group cut its growth forecast for China for this year to 10.1% from 11.4%, saying that government restrictions on lending and real estate will slow expansion in the world’s fastest-growing major economy.

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Overnight Developments

• Global stocks are weaker with the European Euro Stoxx 50 Index down -1.99% and June S&Ps down -14.50 points. The dollar index rose to a 14-month high and most commodities sank on concern that global economic growth is starting to slow. The euro sank to a 4-year low and bank stocks tumbled after the ECB said in its bi-annual Financial Stability Report yesterday that Euro-Zone banks may see another 90 billion euros in net writedowns this year on loans and securities and will need to make provisions for losses of about 105 billion euros next year, which may be even bigger amid "heightened sovereign risks and possible second-round effects of the fiscal consolidation." European stocks weakened further after the April Euro-Zone unemployment rate unexpectedly rose +0.1 to a 12-year high of 10.1% as the region’s sovereign debt crisis undermined the outlook for the economy. ECB Vice President Papademos, speaking on the final day of his term as Vice President , said that Europe’s economy may struggle to gather strength after contagion from Greece’s fiscal crisis eroded confidence in consumers and companies last month and forced governments to deepen spending cuts to reduce budget deficits and that "the consolidation measures can be expected to have some short-term negative impact on growth and employment."
• The Asian markets today closed lower with Japan down -0.58%, Hong Kong -1.36%, China -1.05%, Taiwan -1.15%, Australia -0.37%, Singapore -1.35%, South Korea -0.62%, India -2.20%. Chinese stocks declined and helped to send global stock markets lower after manufacturing in China slowed more than expected. China’s Federation of Logistics and Purchasing reported that the April China Purchasing Managers’ Index fell -1.8 to 53.9, lower than estimates for a decline to 54.5, which raises concern that China’s economy, the engine of global growth, is slowing. China’s real estate market may also be weakening after the Shanghai Securities reported that real estate closings in Beijing, Shanghai and Shenzhen in May plunged as contract numbers dropped by as much as -70% m/m from April. Japanese stocks closed lower on concern the nation’s political instability may slow the economic recovery after Prime Minister Hatoyama said he will consider his political future and do "what’s b est for the people of Japan" after polls showed 80% of Japanese voters want him to step down 6 weeks before mid-term elections.

Overnight U.S. Stock News

• June S&Ps this morning are trading down -14.50 points on global economic growth concerns. The US stock market weakened last Friday and finished with moderate losses (Dow Jones -1.19%, S&P 500 -1.24%, Nasdaq Composite -0.91%). Bearish factors included (1) the action by Fitch Ratings to cut Spain’s credit rating to AA+ from AAA, spurring concern the European debt crisis will worsen, (2) concerns that the US economic recovery will slow after April personal spending unexpected failed to increase for the first time in the last 7 months (unchanged versus expectations of +0.3%), (3) the weaker-than-expected May Chicago purchasing managers index (-4.1 to 59.7 versus expectations of -2.8 to 61.0), (4) an escalation of tensions in Korea after a North Korean general warned of "all out war" if any accidental clashes with South Korea break out, and (5) weakness in oil-services companies and energy producers after President Obama extended a moratorium on deep-w ater offshore drilling permits, suspended exploration in two areas off of Alaska, cancelled pending lease sales in the Gulf of Mexico and proposed sales off Virginia’s coast, and suspended operations at 33 deep-water wells being drilled in the Gulf of Mexico.
• Bullish factors included (1) an easing of liquidity concerns after the 3-month dollar Libor rate fell for the first time in the last 14 sessions, (2) the unexpected increase in the May US University of Michigan consumer confidence (+0.3 to 73.6 versus expectations of unchanged at 73.3), and (3) the action by Goldman Sachs to raise their operating earnings per share estimates for S&P 500 companies to $78 for 2010 and $93 for 2011, up from $76 and $90 respectively, citing stellar Q1 results and better net margins than they had expected.
• British Petroleum Plc (BP) plunged nearly 17% in European trading after it abandoned an attempt to plug the leaking well in he Gulf of Mexico.
• Alcoa (AA) fell nearly 2% and Freeport-McMoRan (FCX) dropped 2.4% in pre-market trading after industrial metals prices slumped.

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Foreign exchange rates are set by the Federal Reserve Bank of New York as outlined by the law under the tariff act of 1930. This information is updated several times each day and posted on various investment sites and marketing information sites. It is important that those who deal with currency exchanges including investors, banks, corporations, and the government are aware of the most current information relating to foreign exchange rates.

The foreign exchange rates continually change based on various factors that take place. Politics play a very important role in foreign exchange rates. During times of war and conflict among countries the exchange rates are very low. This can end up hurting those countries involved economically.

Economic factors also affect foreign exchange rates. If the economy is good and the unemployment rate is low, consumers tend to be spending more money on the things they need and want. This has a positive effect on the exchange rates. However, during times of economic hardship and high unemployment rates the opposite end of the spectrum comes into play.

One of the biggest political and economic factors to affect the foreign exchange rates was the September 11, 2001 attacks that destroyed the World Trade Center. In addition to hundreds of people losing their lives, the economic impact was devastating. The United States still has not recovered from that financial or emotional loss.

Since foreign exchange rates are constantly changing, it is important for those in this area of expertise to keep a close eye on the currency exchange rates. The number of transactions that take place each day are unbelievable. Some of them occur at the major trade centers, some through investment brokers, and the majority online.

The process of foreign exchange rates will continue to grow as more global economic transactions take place between e-commerce website, corporations, and banks. While most of us don’t stop to think about foreign exchange rates when you go to our local bank, it is important to realize that they do impact the prices we pay for goods and service. They also affect interest rates from banks and private lenders.

Paul Ingersole is an Australian based business person who enjoys writing.Paul discovered a great system that makes small continuous recurring profits using the internet.You can see Google Sniper at Paul’s website

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