Daily Markets - China’s Economic Outlook For August

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• China’s Economic Outlook For August
• EMC Leads In Storage Market
• Vale Intends Chinese Borrowing
• GoL Airlines Expands Globally
• CSN To Redeem 9.50% Perpetual Bonds
• Forex Trading: GBPUSD Falling Back Toward 200 Day MA Support
• Global Output Reaches All-Time High In June; World Economy In New Cycle Of Economic Growth
• Forex Trading: USDCAD Tests The Trendline Support Once Again At The 1.0261
• Goldcorp Bountiful With Penasquito
• Garmin Stock Write-UP
• Sinopec, CNOOC Step Up For OGX Bid
• GD Bags $30M US Army Contract
• DATATRAK To Outperform
• Initiating Coverage Of Zalicus
• Hertz Ups Bid For Dollar Thrifty
• Dejour Upgraded To Outperform
• DTS Partners With Digital Rapids
• Swiss Franc: Under Pressure
• Australian Dollar: Caution
• Canadian Dollar: The Bias Remains Bullish
• Japanese Yen: The Downside Prevails
• British Pound: Rebound
• Euro: Caution
• BCE Buys Remaining Stake In CTV
• ICE Link Launches C=C For Its CDS
• UDR Prices Share Offer
• Boeing: Good Times Are Ahead
• Staples In Neutral Lane
• Stock Picks For This Week: Aruba Networks, CTC Media, GMX Resources, Newpark Resources, WABCO Holdings
• Bull Stock Of The Day: Wabco Holdings
• Oracle Shares On Track For Another Bullish Run
• On The Road To Nowhere
• Forex Trading: GBPUSD Bulls Favored In The Over/under.
• Forex Trading: EURUSD Tests 100 Month MA
• Climbing Out Of A Hole

China’s Economic Outlook For August Posted: 13 Sep 2010 12:01 PM PDT In this report we look at the rise in inflation in the economy of China, followed by continued monitoring of the rise in consumer spending and domestic demand. Then we review the potential rebound in industrial production; looking also at its links with international trade. Finally we note how along with the trends in trade, how loan growth is playing into the dynamics of the global economy and the Chinese economy. 1. China Inflation China’s inflation rate rose to 3.5%, matching … [visit site to read more]

EMC Leads In Storage Market Posted: 13 Sep 2010 11:35 AM PDT EMC Corp. (NYSE:EMC) gained market share in the external storage market during the second quarter ended June. According to technology research firm IDC, EMC is leader in the external storage market.   According to IDC, EMC's market share improved to 25.7% in the reported quarter from 22.0% in the year-ago period, outperforming its major competitors such as International Business Machines Corp. (NYSE:IBM), Hewlett-Packard Co. (NYSE:HPQ) and NetApp Inc. (NASDAQ:NTAP).   EMC posted revenues of … [visit site to read more]

Vale Intends Chinese Borrowing Posted: 13 Sep 2010 11:05 AM PDT Brazil's largest miner, Vale S.A. (VALE) earlier decided to build shipping vessels in China for the transportation of iron ore from Brazil to China.   At present, Vale intends to borrow $1.23 billion from Chinese lenders namely, Bank of China and the Export-Import Bank of China (China Eximbank) to finance the construction of these shipping vessels. Borrowing in China will have two benefits. Firstly, it will help as a natural hedge against exchange rate fluctuations and secondly, Vale … [visit site to read more]

GoL Airlines Expands Globally Posted: 13 Sep 2010 11:05 AM PDT Low-cost Brazilian airline, GOL Linhas Aereas Inteligentes S.A. (NYSE:GOL) signed a code-share agreement with American Airlines, a subsidiary of AMR Corporation (AMR) to increase connectivity between various destinations in the United States and Brazil.   The agreement is expected to have a positive impact on Brazilian tourism. The agreement is justified by the continuous increase in international passenger traffic recorded by American Airlines during the last couple of months. During … [visit site to read more]

CSN To Redeem 9.50% Perpetual Bonds Posted: 13 Sep 2010 11:05 AM PDT Companhia Siderurgica Nacional (NYSE:SID), or CSN has chosen to fully redeem all its 9.50% Guaranteed Perpetual Bonds resulting in the payment of principal amount of US$750 million along with accrued and unpaid interest.   The Bonds were issued in 2005 through CSN's wholly owned subsidiary CSN Islands X Corp. and guaranteed by CSN. The redemption date is October 14, 2010.   Companhia Siderurgica Nacional produces hot- and cold-rolled flat steel, galvanized sheets, and tin plates … [visit site to read more]

Forex Trading: GBPUSD Falling Back Toward 200 Day MA Support Posted: 13 Sep 2010 11:04 AM PDT The 1.5393 level is the 200 day MA level. The price has fallen to 1.5406. Back below the 100 and 200 hour MA levels at 1.5412/14 … [visit site to read more]

Global Output Reaches All-Time High In June; World Economy In New Cycle Of Economic Growth Posted: 13 Sep 2010 10:58 AM PDT According to the Netherlands Bureau for Economic Policy Analysis, world industrial production increased in June for the 15th straight month after declining in 11 out of 12 months between April 2008 and March 2009 (see chart above).  Compared to last June, world output has improved by 10.4% year-over-year, and June was the sixth consecutive month of double-digit percentage increase over the same month in 2009.  For the last two months, world production levels (135.1 in … [visit site to read more]

Forex Trading: USDCAD Tests The Trendline Support Once Again At The 1.0261 Posted: 13 Sep 2010 10:51 AM PDT … [visit site to read more]

Goldcorp Bountiful With Penasquito Posted: 13 Sep 2010 10:35 AM PDT Goldcorp Inc. (NYSE:GG) has commenced production at its Penasquito mine in Zacatecas, Mexico. The company reported combined 30-day average throughput rate in excess of 70,000 tons per day, including daily throughputs as high as 105,000 tons. In its earlier release, Goldcorp had announced to produce 180,000 ounces of gold at Penasquito in 2010, and is on track to meet its guidance.   Goldcorp is building a high pressure grinding roll circuit at the Penasquito mine with capacity of 30,000 … [visit site to read more]

Garmin Stock Write-UP Posted: 13 Sep 2010 10:19 AM PDT Key Statistics Market Cap (millions) $ 5,410.00 Current Price $  27.82 Shares outstanding (millions) 194.60 Business Overview and Valuation Garmin Ltd., together with its subsidiaries, designs, develops, manufactures, and markets global positioning system (GPS) enabled products and other navigation, communication, and information products worldwide. It operates in four segments: Automotive/Mobile, Outdoor/Fitness, Marine, and Aviation. The automotive/mobile sector brings in … [visit site to read more]

Sinopec, CNOOC Step Up For OGX Bid Posted: 13 Sep 2010 10:05 AM PDT China's initiative to acquire overseas properties seems likely to continue with the recent bidding process for stakes in assets owned by the Brazilian oil and gas companies OGX SA. Sinopec (NYSE:SNP) and CNOOC Ltd. (NYSE:CEO)  were likely to launch a joint bid for this $7 billion deal, as per news published in Reuters.   After a series of hydrocarbon finds in recent months, OGX, a part of Brazil's EBX industrial conglomerate, is now conducting exploration activity in 29 blocks in … [visit site to read more]

GD Bags $30M US Army Contract Posted: 13 Sep 2010 10:05 AM PDT Virginia-based US defense contractor, General Dynamics Corp. (NYSE:GD), through its business unit, General Dynamics Armament and Technical Products won a six-year $30 million contract from the U.S. Army. The contract requires General Dynamics to produce and provide field support to Joint Biological Point Detection Systems (JBPDS).   As per the terms of the deal, production will take place at General Dynamics Armament and Technical Products' detection production facility in Charlotte , N.C. … [visit site to read more]

DATATRAK To Outperform Posted: 13 Sep 2010 09:35 AM PDT DATATRAK International, Inc. (NASDAQ:DATA) is a global technology and services company delivering electronic clinical (eClinical) solutions to support clinical research. Its software suite and service offerings are used to collect, review, report, store and submit to regulatory agencies clinical trial data electronically. While the competition uses an integrated heterogeneous solution (information silos), DATATRAK uses a unified system. The result is seamless communication, optimized data flow and … [visit site to read more]

Initiating Coverage Of Zalicus Posted: 13 Sep 2010 09:35 AM PDT Price Target of $3 We are initiating coverage of Zalicus, Inc. (ZLCS) with an 'Outperform' rating and $3 price target. Zalicus, Inc. is a biopharmaceutical company that engages in the development of synergistic combinations of approved drugs and new chemical entities focusing on the treatment of pain and inflammation. We believe the company is well positioned from an existing and new product development, financial and management standpoint. Zalicus has one commercialized product in … [visit site to read more]

Hertz Ups Bid For Dollar Thrifty Posted: 13 Sep 2010 09:35 AM PDT Hertz Global Holdings Inc. (NYSE:HTZ) has raised its offer price for Dollar Thrifty Automotive Group Inc. (NYSE:DTG) to $50.00 per share, amounting to $1.56 billion. The offer consists of $43.60 in cash (including about $6.87 a share to be paid by Dollar Thrifty as a special cash dividend) and 0.6366 of a Hertz common share. Per the new agreement, Hertz Global added $10.80 a share to the cash consideration from the original $32.80 per share.   Earlier in April, Hertz Global had proposed to … [visit site to read more]

Dejour Upgraded To Outperform Posted: 13 Sep 2010 09:35 AM PDT We have upgraded our rating on Dejour (DEJ) to Outperform based upon a higher confidence level of a successful drilling program at Woodrush later this year, coupled with a more attractive valuation level of the stock. The company's production profile should dramatically improve with the new wells. In addition, the removal of allowable production constraints is expected next year when the water flood project is completed. Our price target is $1.05. Significant fundamental events can … [visit site to read more]

DTS Partners With Digital Rapids Posted: 13 Sep 2010 09:35 AM PDT A leading provider of high definition (HD) audio technology, DTS Inc. (NASDAQ:DTSI) entered into a partnership with Digital Rapids, a premier provider of encoding and transcoding solutions.   Under the terms of the agreement, DTS and DTS-HD audio support will be integrated into the prospective versions of all Digital Rapids solutions.   Headquartered in Ontario, Canada, Digital Rapids offers products for customers with varying profiles and sizes across the globe.   Digital Rapids … [visit site to read more]

Swiss Franc: Under Pressure Posted: 13 Sep 2010 09:19 AM PDT Update on supports and resistances. … [visit site to read more]

Australian Dollar: Caution Posted: 13 Sep 2010 09:19 AM PDT Update on supports and resistances. … [visit site to read more]

Canadian Dollar: The Bias Remains Bullish Posted: 13 Sep 2010 09:19 AM PDT Update on supports and resistances. … [visit site to read more]

Japanese Yen: The Downside Prevails Posted: 13 Sep 2010 09:19 AM PDT Update on supports and resistances. … [visit site to read more]

British Pound: Rebound Posted: 13 Sep 2010 09:19 AM PDT Update on supports and resistances. … [visit site to read more]

Euro: Caution Posted: 13 Sep 2010 09:19 AM PDT Update on supports and resistances. … [visit site to read more]

BCE Buys Remaining Stake In CTV Posted: 13 Sep 2010 09:05 AM PDT BCE Inc. (NYSE:BCE), Canada's incumbent telecom carrier, agreed to acquire full control of Canada's largest private television broadcaster, CTV Network, for C$1.3 billion (US$1.25 billion). BCE Inc. is  100% subsidiary of Bell Canada.   Acquiring full stake in CTV will accelerate Bell's video growth for mobile, online services and satellite TV system with competitive cost structure. The transaction will reduce content costs for BCE's mobile services, satellite TV system and will … [visit site to read more]

ICE Link Launches C=C For Its CDS Posted: 13 Sep 2010 09:05 AM PDT For the first time in the industry, IntercontinentalExchange Inc. (NYSE:ICE) launched the Novation Consent=Confirmation (C=C) initiative through its ICE Link platform on Sept 12, in order to smoothen the credit default swap (CDS) processes in the market. Over the past year, regulators had been seeking such an operation that could make automated OTC derivative transactions more cost-effective and efficient while also providing transparency. Finally, ICE Link's C=C came as the answer for such a … [visit site to read more]

UDR Prices Share Offer Posted: 13 Sep 2010 09:05 AM PDT UDR Inc. (NYSE:UDR), a leading multifamily real estate investment trust (REIT), has recently announced plans to offer 16.0 million common shares at $20.35 each to raise cash. The company will also grant the underwriters an option to purchase an additional 2.4 million shares to cover any over-allotments. BofA Merrill Lynch, the investment banking and wealth management division of Bank of America Corporation (NYSE:BAC), and Wells Fargo Securities, part of Wells Fargo & Company (WFC), are acting as … [visit site to read more]

Boeing: Good Times Are Ahead Posted: 13 Sep 2010 08:35 AM PDT In a twist of fate reflecting the cyclical variations of the commercial aerospace industry it's raining good news for The Boeing Company (NYSE:BA). Earlier Boeing's commercial airplane deliveries were badly affected worldwide by cancellation and deferment from its airliner customers badly affected by the worldwide recession. To catch up with the expected rise in air traffic, airliners will need to retire older airplanes to maintain capacity and keep their fleet young. The company predicts … [visit site to read more]

Staples In Neutral Lane Posted: 13 Sep 2010 08:35 AM PDT Being a leading retailer of office products and services, Staples, Inc. (NASDAQ:SPLS) is better positioned than its competitors to benefit from the economic recovery, and is poised to sustain growth based on its margin expansion, effective merchandising, and growth prospects across its retail, delivery and international divisions.   Staples, which anticipates a modest recovery in the economy in fiscal 2010, is making prudent investments in the highly fragmented North American retail market to … [visit site to read more]

Stock Picks For This Week: Aruba Networks, CTC Media, GMX Resources, Newpark Resources, WABCO Holdings Posted: 13 Sep 2010 08:31 AM PDT Here is a watchlist of a few stocks that I like heading into this week. I have commented on the charts itself. As the futures stand now, it looks like the markets will gap up this morning. I personally am not a fan of chasing gap ups unless the stocks gap up on volume above important resistance levels or gap up and make a successful test of importance resistance (now support after the gap up) levels. Aruba Networks (NASDAQ:ARUN) CTC Media (NASDAQ:CTCM) GMX Resources … [visit site to read more]

Bull Stock Of The Day: Wabco Holdings Posted: 13 Sep 2010 08:24 AM PDT A quick post on what I think is a good play here. This was a part of the watchlist posted last week and even earlier this morning. Here is an updated daily chart. It has crossed the important 40 level. Wabco Holdings (NYSE:WBC) However, things get really interesting when we have a look at the weekly chart. This was an important level way back in 2008 and the stock has finally cracked it on the second attempt after a nice period of consolidation. I like the odds of it going higher … [visit site to read more]

Oracle Shares On Track For Another Bullish Run Posted: 13 Sep 2010 08:18 AM PDT Good day stock traders! For those who are not aware, the shares of Oracle Corporation (NASDAQ:ORCL) soared by about 9.3% last week. As you can see from its daily chart, the bullish gods must be behind the company when its stocks gapped up after dangerously falling below both the 50-day and 200-day moving averages. In the process, the shares of Oracle went back  above the mentioned averages and the resistance just above 24.50. Now, it could use these two averages including the 24.50 marker … [visit site to read more]

On The Road To Nowhere Posted: 13 Sep 2010 08:17 AM PDT Fundamentals It seems neither bulls nor bears can take control of the Crude Oil futures market, as prices seem destined to remain range-bound for the near future. Traders seem to be confused by the conflicting data presented in economic reports on whether we are really seeing a recovery in the world economy. In addition, there are many opinions regarding why Oil prices are holding above $70 per barrel, given the record or near record inventories here in the US of Crude and refined products. It … [visit site to read more]

Forex Trading: GBPUSD Bulls Favored In The Over/under. Posted: 13 Sep 2010 07:53 AM PDT The GBPUSD has an over/under level of 1.5393 . The level is the 200 day MA and the last move down in the non -trending NY trading range found buyers at 1.5395.   The move above the 100 bar MA at 1.5429 is the next level to get … [visit site to read more]

Forex Trading: EURUSD Tests 100 Month MA Posted: 13 Sep 2010 07:21 AM PDT The EURUSD inches higher as it targets the 1.2854 level next, but also in the way is the 100 month MA which comes in at 1.2839. This level is currently being breached on the upside and if the market can stay above, will be another notch for the bulls (thanks to John Ferguson for the heads … [visit site to read more]

Climbing Out Of A Hole Posted: 13 Sep 2010 07:11 AM PDT This is post 559 and I’m marching on to a personal goal of 600 posts by year-end. I neglected to announce the blog’s 5th anniversary on July 1 but hitting 600 posts will be momentous enough (the total number of posts since the launch actually exceed 900 but I deleted most prior to 2007; the ones I deleted were less focused, many dealt with the CNBC stock market game, etc.). By the way, all the posts are accessible in monthly sequence on the Archives link in the panel on the right. Click on … [visit site to read more]

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