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Looking to Invest in Automotive Stocks? Try the High-End Markets

If you are looking for some solid returns in automotive stocks, investors might want to step away from typical run-of-the-mill car stocks.  Most automotive stocks service a wide spectrum of consumers, and most actually fall into the mid-range. Unfortunately, consumer-focused mid-range automotive stocks are not performing above average these days. While these stocks have appreciated in value, they are lagging against companies like Daimler-Benz and BMW.

What do the maker of the Mercedes-Benz and the maker of BMW have in common? Both make vehicles that are in the upper end of the market. These companies produce high-performance luxury vehicles that have always been the pride and envy of the upper middle-class as well as the young and ambitious.   Considering the very uneven wealth growth in the United States and everywhere else, these stocks are doing quite well.  There is a huge demand for very expensive Mercedes-Benz and BMW cars, especially among traders and those in the finance industry. Thanks to all the cheap stimulus money, there is a huge boom of both income and net worth of people making over $500,000 a year. This is precisely the market upscale BMWs and Mercedes focus on.

Outside of the developed markets in the United States and Europe, the demand for luxury cars in China is strong.   BMW sold 456,000 units last year in China alone.  Mercedes didn’t do quite as well selling over 282,000 units.   Time will tell whether the Chinese market will remain strong due to its recent economic slowdown.  What the statistics prove is that when it comes to automotive stocks, the action is in the upper end of the market.   Experts suggest that investors looking for solid returns should look past companies such as Ford Motors and General Motors and focus on BMW and Mercedes.

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European markets ended six consecutive growing sessions

European markets ended six consecutive growing sessions

Deutsche BorseThe European markets took a break from the positive movement in the last six sessions, which had sent the leading Stoxx Europe 600 index to its highest value for the last seven years. The focus of investors today focused on enterprise data. The broad benchmark reported a decline of 0.13% to a level of 386.76 points after companies from the areas of energy, consumer goods, financial services and communications, part of the index ended the session with a fall in its share price.

The most serious cuts, however recorded Greek banks, part of the Stoxx Europe - Piraeus Bank and National Bank of Greece. Although the Eurogroup to give approval of extension of the loan to Greece, the media in Europe, doubts that German lawmakers will not support this request. This caused a distrust of investors in bank shares. The shares of Piraeus lost a little over 13% of its value and closed the trading price of 0.64 EUR per share. NBG for the decrease is within 11% to 1.49 EUR per share.

Meanwhile, shares of Moller-Maersk rose more than 9% to 15,260 DKK per share, after the company said it would sell its 20% in Danish bank Danske Bank. The German DAX 30, however, still green series, although today its growth is the minimum level of 0.04% to 11,210.27 points. Session one of the leading indices on the London Stock Exchange - FTSE 100 ended in red and he retreated from its highest closing level since December 1999, reached Tuesday. Index lost 0.21% of its value and closed at 6,935.38 points. French SAS40 recording a decline of 0.09% to 4,882.22 points.

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Shanghai Composite Index fell with over 7%

Shanghai Composite Index fell with over 7%

Shanghai Stock Exchange index decreaseChinese shares tumbled on Monday due to sharp sell-offs in the financial sector. The positive performance on Wall Street late last week did support the growth rates of other Asian markets. The main Shanghai Composite Index fell with over 7%, led by declines in most financial shares fell by the maximum of 10%. The reason was that regulators have accused local brokers in illegal activities in margin trading. Losses came a day before the release of data for China’s economic growth in the fourth quarter. Sitic Securities, Haitong Securities and Everbright Securities were just some of the companies that erased 10% due to the repression of the authorities in relation to the margin lending.

It was a bloodbath for Chinese stocks. Although this is a blow to the shares in the short term, attitudes seem positive, as officials continue to carry out reforms and to limit excessive speculation, commented analysts.

In Hong Kong Hang Seng cpadna c nearly 2%, a China Enterprises index wiped more than 5%.

The Japanese benchmark Nikkei 225 index closed above 17,000 points, recovering from the loss of almost 1% on Friday. Among the biggest winners were Sony and Itochu, added more than 2%. Sharp wiped almost 9% after the Nikkei newspaper reported that the company can provide a net loss of “billions of JPY” for the current financial year.

The AUstralian benchmark S&P ASX 200 terminate five straight sessions of losses, moving away from one-month low of 5,299 points on Friday. The mining companies performed strongly after the appreciation of copper. Oz Minerals and Sandfire Resources added respectively 8% and 7%. Macquarie expand by more than 5% after predicting 10-20% growth in annual profit.

South Korean KOSPI returned to growth after a loss of 1% on Friday, boosted by increases in manufacturers of ships. Hyundai Heavy Industries and Daewoo Shipbuilding rose by 9%.

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US stock indexes conquered new territory on Wednesday

US stock indexes conquered new territory on Wednesday

US StocksThe US stock indexes conquered new territory on Wednesday amid a series of economic data and disclosure of excerpts from the “Beige Book” of Fed. The blue-chip Dow Jones Industrial Average raise the minimum 0.23% to 17,920.91 points, lead by UnitedHealth growing shares of 1.6% to 101.025 USD per share, while American Express led the losers components with a decline of 1.82% to 91.30 USD per share. The broader index S&P 500 rose with 0.46% to 2,076.34 points and the technological benchmark Nasdaq Composite grew with 0.52% to 4,780.03 points.

The index S&P for the energy sector registered a growth of 1.3%. With an increase of almost 5% Cimarex Energy is among the most profitable components in S&P. The market capitalization of Diamond Offshore increased by 3%.

Statistics by country showed that private sector employment in the US rose less than expected in November according to the latest data of Automatic Data Processing (ADP) and Moody’s Analytics. New job positions reached 208,000 last month with expectations for an increase of 222 000. The data from ADP last month you were revised up to an increase of 233,000 from the previous estimate of 230,000.

The breakdown shows that employment growth in small businesses largely remained for the second consecutive month, reaching 101,000 after an increase of 103,000 in the previous month. The growth in the average business has slowed down to 65,000 from 122,000 in solid previous month, commented analysts. The US economy is still in good shape, the evidence presented late Wednesday Economic Report of the Federal Reserve, known in financial markets and the term “Beige Book”. The paper analyzes the macroeconomic situation in the country through the eyes of central bankers.

In October and November, the economy has registered steady growth, it is clear from the document. Consumers have benefited from lower prices for gasoline and fuel.

Earlier today it became clear that in November the activity in the US service sector accelerated at a faster than expected pace - a signal that the largest economy in the world is gaining momentum. The index of the Institute for Supply Management (ISM) activity in the services sector rose to 59.3 points - just under the after recession record of 55.6 points made in August, which was the highest since August 2005. In October index stood at 57.1 points. Data for November were above the consensus evaluation of surveyed analysts by Reuters for 57.5 points.

The fashion chain Abercrombie & Fitch compensated the declines in the beginning of the session and ultimately reported growth of 4.8%. Over the past quarter revenue and profit collapse, but focus on fashion clothing for teenagers concern outperforming expectations for the coming year.

The crude oil futures for January delivery rose with 0.8%, or 50 cents to 67.38 USD per barrel on the New York Stock Exchange. The contracts on gold also rose with 9.3 USD to 1,208.70 USD per ounce.

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Asian indices did not find single direction on Wednesday

Asian indices did not find single direction on Wednesday

Asian indexesThe Asian indices did not find single direction on Wednesday, although the two largest markets on the continent - in Tokyo and Shanghai, climbed new peaks perennial. Wall Street ended with new records on Tuesday, boosted by positive sentiment in the region. Dow Jones Industrial Average rose to a new high after data showed that the November car sales reported the best result since 2003. The growth of the Chinese services sector remained stable last month, according to recent government and private data due to strong economic activity in the fourth quarter. The non-productive PMI index rose to 53.9 points in November from 53.8 points a month earlier, staying again at the 50 points separating expansion from contraction.

Similar sector PMI index produced by HSBC and published a few hours earlier, showed a growth of up to 53 points in November from 52.9 points a month earlier. The data came just weeks after China’s central bank cut interest rates surprisingly for the first time in more than two years. The institution denied the move aims to support growth, although several key indicators of activity reported delay of the second largest economy in the world.

The Chinese benchmark Shanghai Composite closed at a new 3-year high for a second day after fractional session. On Tuesday, the index rose by 3% amid rumors that the Chinese central bank may take cutting reserve requirements for banks. The financial companies largely erased achieved in recent sessions profits. New China Life Insurance lost 6%, while Everbright Bank fell by 5%.

Trade in Hong Kong navigated between gains and declines to end eventually retreat to 0.7% after the rise by over 1% on Tuesday. The Japanese Nikkei index finished a new seven-year for the fourth consecutive session after the yen again dropped to a seven-year low against the USA. The manufacturer of airbags Takata surged From 2.6% after news of the formation of an independent commission to investigate the issues of road safety.

In Australia, trade completed a one-week high, as investors shrugged off news of slowing economic growth in the third quarter. However, the AUD fell to a new four-year low against the greenback after data economy. The mining companies reported positive results. Fortescue Metals added over 5%, while Atlas Iron growth reached 3%. Shares of Ten Network fell by 6% after the company announced that it has received several offers for takeover.

Shares in South Korea reported a modest extension after the 10-day bed earlier in the week. Hyundai Motor added 0.6% despite the 4% decline in annual sales in the US in November.

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Asian indexes rose on Wednesday

Asian indexes rose on Wednesday

Shanghai CompositeMost Asian indexes rose on Wednesday after better-than-expected data on US growth. Strengthening of the JPY, however, put pressure on trade in Tokyo. The growth of gross domestic product (GDP) of the largest economy in the world was revised to 3.9% from 3.5% in July-September. However, the news failed to stimulate trade in Wall Street, where were recorded modest changes. The focus of investor sentiment continued to be the situation in the commodity markets. Brent fell below 80 USD per barrel. US crude extended losses after closing at 4-year low on the eve of the meeting of the Organization of Petroleum Exporting Countries (OPEC) on Thursday. The investors consider the prospects for the first reduction in production quotas from 2008.

Financial stocks were the biggest winners in the composition of the Shanghai Composite. Huatei Security gained maximum within one day 10 percent after news that it has received approval for a parallel listing on the stock exchange in Hong Kong. Insurers New China Life Insurance and China Life also added 10%. In Hong Kong Hang Seng climbed up one week, driven by the expansion of 3% of Chow Tai Fook. Capitalization of the company increased despite the fall in first-half profit by 23%.

In Australia, the S&P ASX 200 also rose to a one-week peak and the AUD recovered after hitting a four-year low yesterday. Earlier, deputy governor of the Reserve Bank of Australia Philip Lowe determine the currency as overvalued, which supported the loss. Rio Tinto ended with a growth of almost 2% amid news that Glencore is considering a new takeover offer of the mining giant.

In Japan, the Nikkei 225 ended with a slight decline after fractional session with a view to strengthening of JPY against USD. The pair retreated to the limit of 118 shrink from 7-year high last week. The capitalization of Honda Motor declined by almost 3% after the company admitted that not all reported serious accidents of its cars in USA in the last decade.

Growth recorded producers of aluminum, after a newspaper Nikkei reported that Toyota Motor will use metal instead of steel in their luxury cars. Daiki Aluminum surged by over 10%, while UACJ Corp - almost 9%. Trading in South Korea was quiet for a second day after nearly two-month peak on Monday. The shares of Samsung Techwin rose 15% after news that the company was acquired by Hanwha Chemical. The price of shares of Hanwha does surged by almost 1%.

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US indexes grew on Thursday admire new European stimulus

US indexes grew on Thursday admire new European stimulus

ECB WallstreetLeading indices of the New York Stock Exchange ended the session on Thursday with increases taking into account new highs. The market responded positively to the guarantees by the President of the European Central Bank (ECB) Mario Draghi that the institution will adopt further easing of monetary policy as appropriate. The Organization for Economic Cooperation and Development (OECD) called on Member States to redouble their efforts to promote growth. According to the organization, governments need to delay efforts to reduce public debt, which is one leg of the “three-legged stool” to improve growth.

Outlining growth assumptions similar to those of the International Monetary Fund last month, the OECD predicts the global economy to grow by 3.3% this year and 3.9% in 2016. The macro data from the US showed that new claims for unemployment benefits fell by 10,000 to 278,000 last week. The result was more optimistic projections level of 285,000. The another report showed that productivity rose more than expected in the third quarter.

Shares of Tesla Motors rose 4.02% after the maker of electric cars predicted significant growth in sales in the coming years. The market capitalisation of Genworth Financial fell with 38.06% after its CEO made a public apology for the poor financial performance in the previous quarter. Chain grocery stores Whole Foods Market published better than expected report and the shares of the company rose 11.92%. The shares of Qualcomm fell with 8.92% after the chipmaker failed to meet the expectations of the market with its quarterly financial report.

The yields on 10-year US bonds rose two basis points to 2.367%. The USD continue to improve its position against major currencies competitive, resulting in prices denominated in the greenback goods reported declines.

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Asian stocks with mixed results on Tuesday

Asian stocks with mixed results on Tuesday

Asia indexAsian stocks reported mixed results on Tuesday, as the investors focused on the decisions of central banks in Japan and Australia. The markets in Shanghai remained closed for the celebration of the national holiday and trade will resume on Wednesday. Earlier in the day the Bank of Japan to maintain an aggressive monetary policy that began in April 2013, despite expectations of further efforts to permanently maintain the inflation target. The increase in the monetary base will continue to amount to 60-70 trillion JPY per year, showed the official statement of the institution following the two-day meeting of the bank. The expectations of bankers to raise inflation and final withdrawal of Japanese 15-year deflationary spiral.

Meanwhile the Australian central bank also maintained the monetary policy, leaving interest rates at a level of 2.5% as expected. The bank reiterated its concern about the possibility of “overheating” in the housing market and the strength of the currency, which prevents growth. Australian benchmark S&P ASX 200 ended a week-long bed, shrugging But in the end their retreat after earlier reached an 8-month minimum. The AUD hovered around 0.8766 USD, after the central bank said the currency remains above historical standards. The capitalization of National Australia Bank declined by 1%, while Commonwealth Bank of Australia wiped 0.5%. Rio Tinto rose more than 4% after the company said on Tuesday it had rejected a proposal for merge with Glencore in August. Previously listed on the New York Stock Exchange shares of the company rose more than 9%.

The Japanese benchmark Nikkei 225 ended with a decline after a volatile session. The news that the world’s largest pension fund, which is under government control, may postpone the decision until November to restructure its portfolio affected the mood of the market. Fujifilm ended with a growth of 2.7% after Monday Guinea and France announced that they are considering using the company developed a cure for Ebola.

The Hong Kong’s Hang Seng shook off early losses, taking into account its biggest one-day rise in more than a month. The shares of local casinos rose for the second consecutive session. Galaxy Entertainment and Melco International Development Galaxy Entertainment has added more than 1%. The protesters remained on the streets on Tuesday. On Monday evening the association of students and state officials agreed to start negotiations with the authorities later this week.

The South Korean KOSPI rose thanks to the good performance of Samsung Electronics. Shares in technology giant rose more than 1%, although the company predicts 60% drop in operating profit for the third quarter.

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Nasdaq Composite grew at 14-year maximum

Nasdaq Composite grew at 14-year maximum

Nasdaq CompositeThe Wall Street indexes started the week with increases. The positive attitudes after the agreement between Russia, Ukraine and the Red Cross for relief the convoys support the technologically oriented benchmark Nasdaq Composite grew at 14-year maximum and rose with 0.94% to 4,506.76 points. The blue chip index Dow Jones Industrial Average added 1.03% to 16,833.89 points, while S&P 500 expanded with 0.82% to 1,971.17 points.

The Russian Foreign Minister Sergei Lavrov announced that was reached an agreement with Ukraine and the International Red Cross for the route of the Russian convoy with humanitarian aid to eastern Ukraine. Lavrov announced the news a day after his meeting with the foreign ministers of Ukraine, Germany and France. The convoy with humanitarian aid from Russia to Eastern Ukraine is still on Russian territory, but close to the border with Ukraine. In his words, still there is no progress on the ceasefire and political negotiations and urged USA to get involved in trying to reach an agreement.

The news shows some degree of cooperation that can be more constructive environment for global and local shares. According to the analysts the meeting of the US Federal Reserve in mid-September is the next really big event for the capital markets. Meanwhile, the US stocks rebounded after the markets probably believe that slowing global economic growth will keep interest rates low for some time

The National Association of Home Builders in USA reported that the index of confidence of the industry in July rose by 2 points to 55 points, which exceeded market forecasts. Sensata Technologies Holding announced that it would pay 1 billion USD for the acquisition of the group of companies under the umbrella of Schrader. After the release of this news the shares of Sensata rose with 5.76%

The capitalization of Dollar General rose with 11.51%. Earlier in the day the retailer offered 9.7 billion USD for the acquisition of a competitor Family Dollar, rising further its previous offer of July Shares of Family Dollar rose with 5.04%.

The USD gained a foothold against the currencies of major trading partners of USA. The yields on 10-year American bonds even rose 4 basis points to 2.389%. The contracts on gold with December delivery fell with 0.52% to 1,299.40 USD per ounce. The crude oil prices with delivery in December fell by 1.55% to 93.84 USD per barrel.

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Nikkei 225 lost 3% due to strong JPY

Nikkei 225 lost 3% due to strong JPY

Nikkei 225 dropThe leading Asian indices reported decreases despite the positive trade data from China. The country reported export growth of 14.5% yoy in July 2014. The stronger than expected result rose to 47.3 billion USD foreign trade surplus of Celestial Empire. The Japanese Nikkei 225 index dropped to its lowest level since May 30th, erasing 2.98% to 14,778.37 points.

The pressure applied strengthening of the JPY to two weeks maximum. Currency once again was jointly owned by the market as a safe haven amid the global geopolitical conflicts. However, approaching as expected, Japan’s central bank kept its monetary policy, but offered a gloomy forecast for exports and industrial production. The shares of Japan Display fell 7% after reporting a larger than expected loss for the April-June. The SoftBank capitalization fell by 3.4% on the eve of the presentation of financial results after market close.

The South Korean KOSPI fell to 2-week low, falling by 1.14% to 2,031.10 points. The pressure was applied to the shares of automakers. Hyundai Motor and Kia Motors fell by more than 1%, while Hyundai Mobis wiped 2%.

In China, the Shanghai Composite added 0.31% to 2,194.43 points thanks to upbeat data on trade in July. The support came from the companies in the banking sector. The shares of Bank of Communications and China Merchants Bank rose by 1.0% and 0.8%.

In Australia, the S&P ASX 200 ended with a new one-month bottom, extending its losses by 1.34% to 5,435.31 points. Earlier in the day Australian central bank confirmed that it will maintain low interest rates. The news came from a quarterly report submitted by the institution. The companies reported sharp declines in the mining sector. Fortescue Metals wiped 3.4% and BHP Billiton - 1,8% lower. Rio Tinto market cap rose with 0.2% after the financial report on Thursday.

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