Thursday, November 4, 2010

DailyMarkets.com - 9 Reasons Why Quantitative Easing Is Damaging To The U.S. Economy

DailyMarkets.com - 9 Reasons Why Quantitative Easing Is Damaging To The U.S. Economy


9 Reasons Why Quantitative Easing Is Damaging To The U.S. Economy

Posted: 04 Nov 2010 03:30 AM PDT

Buckle up and hold on – a new round of quantitative easing is here and things could start getting very ugly in the financial world over the coming months.  The truth is that many economists fear that an out of control Federal Reserve is “crossing the Rubicon” by announcing another wave of quantitative easing.  Have we now reached a point where the Federal Reserve is simply going to fire up the printing presses and shower massive wads of cash into the financial system whenever … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – NZD/USD Surges To 30-month High Post-Fed

Posted: 04 Nov 2010 03:11 AM PDT

Forex Pros – New Zealand's dollar was sharply higher against its U.S. counterpart on Thursday, surging to a 30-month high, after the Federal Reserve announced a fresh round of quantitative easing.

NZD/USD hit 0.7936 during European morning trade, the pair's highest since April 24, 2008; the pair subsequently consolidated at 0.7925, jumping 1.63%.

The pair was likely to find support at 0.7700, Wednesday's low and resistance at 80.32, the high of April 23, 2008.

Late Wednesday, the … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex Trading: Eurozone PPI Inline At 0.3%

Posted: 04 Nov 2010 03:05 AM PDT

Eurozone PPI m/m came in at 0.3% inline as expected and stronger than the 0.1% prior reading.
Eur/Usd currently trades at … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – AUD/USD Soars To Record High After Fed Launches QE2

Posted: 04 Nov 2010 02:38 AM PDT

Forex Pros – The Australian dollar was up against its U.S. counterpart on Thursday, soaring to an all-time high, after the Federal Reserve announced a fresh round of quantitative easing.

AUD/USD hit 1.0099 during European morning trade, an all-time high; the pair subsequently consolidated at 1.0094, gaining 0.31%.

The pair was likely to find support at 0.9891, Wednesday's low and resistance at 1.2000.

Late Wednesday, the Federal Reserve announced that it would buy USD 600 billion of U.S. … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Northern Bear – Aiming To Emerge From The Winter Freeze

Posted: 04 Nov 2010 02:15 AM PDT

In the last couple of years the stock market has taken an axe to valuations of companies exposed to the building and property sector.  The demise of Connaught and the well flagged public sector cuts that slashed social housing budgets in two have hit the sector hard.  One of the sector minnows that has seen its share price particularly badly affected is Northern Bear Plc (LON:NTBR) which now trades on a forecast p/e of barely over three times earnings on a market cap of just £3.3m.  … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex Trading: Eurozone Final Services PMI

Posted: 04 Nov 2010 02:02 AM PDT

Eurozone Final Services PMI was revised to 53.3 from 53.2.
Eur/Usd continues to look bid currently trading at … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – Dollar Tumbles Vs. Rivals After Fed Announces QE2

Posted: 04 Nov 2010 01:55 AM PDT

Forex Pros – The U.S. dollar was sharply lower against the other major currencies on Thursday, following the Federal Reserves announcement of a second round of quantitative easing.

During European morning trade, the greenback was down against the euro, with EUR/USD gaining 0.47% to hit 1.4207.

The greenback was also down against the pound, with GBP/USD climbing 0.58% to hit 1.6175. Earlier in the day, data showed that the Halifax Bank of Scotland U.K. HPI rose significantly … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex- GBP/USD Soars To 10-month High After Halifax HPI

Posted: 04 Nov 2010 01:35 AM PDT

Forex Pros – The pound was up against the U.S. dollar on Thursday, soaring to a 10-month high following the release of better-than-expected data on U.K. house prices.

GBP/USD hit 1.6184 during early European trade, the pair's highest since January 28; the pair subsequently consolidated at 1.6181, surging 0.61%.

Cable was likely to find support at 1.6005, Wednesday's low and resistance at 1.6310, the high of January 21.

Earlier in the day, U.K. mortgage lender Halifax said that its … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Asia Stocks Broadly Higher After FOMC; Nikkei Soars 2.17%

Posted: 04 Nov 2010 01:30 AM PDT

Forex Pros – Asian stock markets posted sharp gains on Thursday, as investor sentiment was boosted after the Federal Reserve's announcement of a second round of quantitative easing.

During late Asian trade, Hong Kong’s Hang Seng Index jumped 1.41%, South Korea’s Kospi Composite gained 0.34%, while Japan's Nikkei 225 Index soared 2.17%.

Late Wednesday, the Fed said that it would buy USD 600 billion of U.S. government bonds over the next eight months in an effort to kick-start a … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex Trading: Euro Continues To Show Strength

Posted: 04 Nov 2010 01:25 AM PDT

Eur/Usd continues its grind higher, as the pair has jsut made a fresh high of 1.4180. It has not gained a sufficient stronghold above 1.4170, which was an earlier high made after yesterdays FOMC meeting. If the pair does not break above a pullback to 1.4140-45 is likely. A break above should bring us to 1.4210-15 , where there may be light … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Halifax U.K. House Price Index Rises More-than-expected

Posted: 04 Nov 2010 01:17 AM PDT

Forex Pros – British house prices rose more-than-expected in October, industry data showed on Thursday.

In a report, the Halifax Bank of Scotland said its House Price Index rose by 1.8% in October, after tumbling by 3.7% in September, whose figure was revised from a decline of 3.6%.

Economists expected the index to rise by 0.4% in October.

However the report said that house prices declined by a seasonally adjusted 1.2% in the third quarter.

Commenting on the report, Halifax housing … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – USD/JPY Falls To Daily Low After Fed Boost

Posted: 04 Nov 2010 01:08 AM PDT

Forex Pros – The U.S. dollar was down against the yen on Thursday, falling to a daily low following the Federal Reserves announcement of a second round of quantitative easing.

USD/JPY hit 80.74 during late Asian trade, the daily low; the pair subsequently consolidated at 80.95, shedding 0.14%.

The pair was likely to find support at 80.23, the low of November 1 and the all-time low and resistance at 81.97, the high of October 27.

Late Wednesday, the Fed said that it would buy USD 600 … [visit site to read more] or compare Best Credit Cards and Best CD Rates


What Does Quantitative Easing Mean For Banks?

Posted: 04 Nov 2010 01:01 AM PDT

The Federal Reserve today announced a new quantitative easing plan in which they will buy $600 billion of long-term Treasury securities. What does this mean for banks?

Bank deposits and reserves will increase. Even if your bank does not sell securities directly to the Fed, some of your clients may be selling securities. Across the country, total bank deposits and reserves will increase. This will put many banks in the awkward position of earning less on their reserves than they pay. … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – Euro Lower Against Dollar After Fed FOMC

Posted: 04 Nov 2010 12:37 AM PDT

Forex Pros – The euro was down against the U.S. dollar on Thursday, retreating from a 9-month high following the Federal Reserves announcement of a second round of quantitative easing.

EUR/USD hit 1.4103 during late Asian trade, a daily low; the pair subsequently consolidated at 1.4125, shedding 0.10%.

The pair was likely to find support at 1.3991, Wednesday's low and resistance at 1.4191, Wednesday's high and a 9-month high.

Late Wednesday, the Fed said that it would buy USD 600 … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Australia Retail Sales Rise Less-than-expected

Posted: 04 Nov 2010 12:37 AM PDT

Forex Pros – Retail sales in Australia rose less-than-expected in September, official data showed on Thursday.

In a report, the Australian Bureau of Statistics said that retail sales rose by a seasonally adjusted 0.3% in September, after rising by 0.3% in August.

Analysts had expected retail sales to increase by 0.5% in September.

The report showed that Australia’s trade surplus narrowed more-than-expected in September, falling to AUD 1.76 billion, down from 2.45 billion in August, whose … [visit site to read more] or compare Best Credit Cards and Best CD Rates


N.Z. Unemployment Rate Falls More-than-expected In Q3

Posted: 04 Nov 2010 12:27 AM PDT

Forex Pros – The unemployment rate in New Zealand fell more-than-expected in the third-quarter, official data showed on Thursday.

In a report, Statistics New Zealand said the rate of unemployment declined to 6.4% in the third-quarter, down from 6.9% in the second-quarter, whose figure was revised from 6.8%.

Analysts had expected the rate of unemployment to fall to 6.7% in the third-quarter.

According to the data, the number of employed people in New Zealand rose by 1.0% in the … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Crude Oil Hits New 6-Month Highs On Bullish Inventory Report, Gold Sinks After Fed As Dollar Correlation Breaks Down

Posted: 03 Nov 2010 11:46 PM PDT

Commodities – Energy
Crude Oil Hits New 6-Month Highs on Bullish Inventory Report
Crude Oil (WTI) – $85.26 // $0.57 // 0.67%
Commentary: Crude oil decisively broke out of a recent congestion range to hit new six-month highs after a bullish inventory report and decisive action from the Federal Reserve. Prices rose $0.79, or 0.94%, to settle at $84.69. As we have stated numerous times in our daily updates, the Fed meeting is a sideshow. The real story is the state of the global economy, and … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Bull Of The Day: Bayer AG

Posted: 03 Nov 2010 11:05 PM PDT

We are upgrading Bayer AG (BAYRY) to Outperform from Neutral based on the strong results posted by the company in the third quarter of 2010. All segments performed well in the quarter.
The company earned EUR0.95 (approx. $1.22) in the quarter as against EUR0.78 (approx. $1.00) in the year-ago period. The Material Science segment performed impressively with sales climbing 30.8% due to improved sales of high-tech materials.
In addition, Bayer maintained its positive outlook for 2010. Earnings … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Growth & Income Stock: The Toronto-Dominion Bank

Posted: 03 Nov 2010 11:05 PM PDT

The Toronto-Dominion Bank (NYSE:TD) continues to see strong growth in its retail banking business on both sides of the border. Consumer loan volumes have been solid as the global economic recovery gains traction.
Management was cautiously optimistic following the release of its third quarter results as it expects stable, albeit slow, economic growth in Canada. The company also pays an attractive, steady dividend and the valuation picture looks attractive.
About TD Bank
Toronto-Dominion Bank is the … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Bear Of The Day: Greatbatch, Inc. (GB)

Posted: 03 Nov 2010 11:05 PM PDT

We downgrade our recommendation for Greatbatch (NYSE:GB) to Underperform following its lower-than-expected third quarter fiscal 2010 results and management’s tepid outlook. Both revenues and earnings for the quarter missed the Zacks Consensus Estimate, impacted by the decline in the company’s CRM/Neuromodulation business.
Greatbatch has narrowed its fiscal 2010 revenue and operating margin targets based on sluggish market conditions. The company’s cost-cutting and restructuring initiatives … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Aggressive Growth Stock: Coach Inc.

Posted: 03 Nov 2010 11:05 PM PDT

Coach, Inc. (NYSE:COH) has the wind at its back as sales and earnings continue to surge in this post-recession environment.
Growth rates and estimates are rising following the latest earnings surprise, keeping valuations at relatively attractive levels for this Zacks #1 Rank (Strong Buy).
Company Description
Coach makes signature leather handbags and accessories for men and women. The company’s price points are on the higher end of the spectrum, but not as high as brands like Louis Vuitton, Fendi … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Momentum Stock: Complete Production Services, Inc.

Posted: 03 Nov 2010 11:05 PM PDT

Complete Production Services, Inc. (NYSE:CPX) continues to pressure its multi-year high at $25.97 after reporting solid Q3 results that included a 35% earnings surprise. With an average earnings surprise of 178% over the last four quarters and a bullish growth projection, this Zacks #1 rank stock is gushing momentum.
Company Description
Complete Production Services, Inc. provides specialty production services to oil and gas companies primarily in North America and southeast Asia. The company was … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – EUR/USD Down During The Asian Session

Posted: 03 Nov 2010 11:00 PM PDT

Forex Pros – The Euro was lower against the U.S. Dollar on Thursday.

EUR/USD was trading at 1.4122, down 0.13% at time of writing.

The pair was likely to find support at 1.3864, Monday's low, and resistance at 1.4182, Wednesday's high.

Meanwhile, the Euro was down against the British Pound and the Japanese Yen, with EUR/GBP shedding 0.28% to hit 0.8767 and EUR/JPY falling 0.44% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Singapore Stock Market Update For Thursday 04 November

Posted: 03 Nov 2010 10:56 PM PDT

Morning Highlights

There Are No Quick Picks For Today!
Most of the Asian Stocks are higher, including Tokyo market rising sharply on recent positive earnings reports, while other investors welcomed the U.S. Federal Reserve’s latest stimulus package.
Likewise, Singapore market also advanced in green, with STI up 13.45 points to open at 3238.42. However, market is deemed doing its correction, hence, we advise to trade with cautious.
We have removed NOL from our picks as it is currently pulling … [visit site to read more] or compare Best Credit Cards and Best CD Rates


All Markets Are Now Lined Up As A Massive One-Sided Trade

Posted: 03 Nov 2010 10:40 PM PDT

True believers in a massive deflationary wave are few and far between.  In fact, among professional analysts and more “renowned” forecasters, you can count the number of real deflationists on one hand – maybe two if you stretch things.

The large majority of forecasters, and more importantly the investors who listen to them, are predicting inflation.  Hyperinflation is a fairly common term these days, one can hear it frequently by flipping on a major financial station.

However, … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Stock Market And ETF Outlook: Bullish Sentiment At Extreme Levels?

Posted: 03 Nov 2010 10:12 PM PDT

Here's your  market outlook for Thursday, November 4, 2010

Instratrader Indicators:

Red Flag: We Expect Lower Prices Ahead

Daily Technical Sentiment Indicators: Bullish

Short Term Market Condition: Overbought

It certainly has been an exciting week so far.   And more still to come with tomorrow's non-farm payrolls report.

The election went pretty much as forecast with the Republicans regaining the house and nearly taking back the Senate.  The U.S. electorate seems … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – GBP/USD Up During The Asian Session

Posted: 03 Nov 2010 10:00 PM PDT

Forex Pros – The British Pound was higher against the U.S. Dollar on Thursday.

GBP/USD was trading at 1.6122, up 0.26% at time of writing.

The pair was likely to find support at 1.5963, Tuesday's low, and resistance at 1.6179, Wednesday's high.

Meanwhile, the British Pound was up against the Euro and down against the Japanese Yen, with EUR/GBP shedding 0.27% to hit 0.8768 and GBP/JPY falling 0.06% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – GBP/JPY Down During The Asian Session

Posted: 03 Nov 2010 09:00 PM PDT

Forex Pros – The British Pound was lower against the Japanese Yen on Thursday.

GBP/JPY was trading at 130.33, down 0.04% at time of writing.

The pair was likely to find support at 128.79, Monday's low, and resistance at 131.25, Wednesday's high.

Meanwhile, the British Pound was up against the U.S. Dollar and the Euro, with GBP/USD gaining 0.26% to hit 1.6123 and EUR/GBP falling 0.27% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates


U.S. Car Sales Top 12 Million Units In October For The First Time In Two Years, Except For CFC Month

Posted: 03 Nov 2010 08:33 PM PDT

Except for the “cash for clunkers” jolt that boosted car sales in August 2009 to an artificially high 14.17 million units (on a seasonally adjusted annual rate basis), auto sales in October reached a two-year high in October of 12.26 millions vehicles.   That was the strongest month for auto sales since September 2008 when 12.52 million vehicles were sold.  Chrysler and Ford helped fuel strong October car sales with two of the largest year-over-year gains of 37% and 19.3% … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Four ETFs To Play Commercial Real Estate

Posted: 03 Nov 2010 08:17 PM PDT

Despite a stubbornly weak labor market and insignificant increases in consumer sentiment and spending, commercial real estate and the exchange traded funds [[ETFs]] which track the sector have fared relatively well this year and are expected to continue to do so.
Commercial real estate values appear to be stabilizing as rents are no longer falling, vacancies for apartment buildings, office buildings and retail malls are no longer rising.  A major driver behind this stabilization is … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – NZD/USD Up During The Asian Session

Posted: 03 Nov 2010 08:00 PM PDT

Forex Pros – The New Zealand Dollar was higher against the U.S. Dollar on Thursday.

NZD/USD was trading at 0.7842, up 0.56% at time of writing.

The pair was likely to find support at 0.7634, Monday's low, and resistance at 0.7886, Wednesday's high.

Meanwhile, the New Zealand Dollar was up against the Australian Dollar and the Euro, with AUD/NZD shedding 0.71% to hit 1.2806 and EUR/NZD falling 0.66% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex Trading: EUR/JPY Could Retest 12-Month Trendline Resistance

Posted: 03 Nov 2010 07:29 PM PDT

On a weekly chart we see trendline resistance defending the appreciation of the EUR/JPY pair since last October. The markets risk profile has been on a rollercoaster ride; however the Yens constant appreciation has kept the pair below the line. Tomorrow's BOJ meeting results could spell further easing and any depreciation in the Yen could push the pair to test this 12-month old resistance. It is also interesting to note that the 21 week moving average has supported the pairs sell offs … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – AUD/USD Down During The Asian Session

Posted: 03 Nov 2010 07:00 PM PDT

Forex Pros – The Australian Dollar was lower against the U.S. Dollar on Thursday.

AUD/USD was trading at 1.0036, down 0.26% at time of writing.

The pair was likely to find support at 0.9814, Monday's low, and resistance at 1.0066, Wednesday's high.

Meanwhile, the Australian Dollar was down against the Euro and the Japanese Yen, with EUR/AUD gaining 0.11% to hit 1.4069 and AUD/JPY falling 0.19% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – USD/JPY Up During The Asian Session

Posted: 03 Nov 2010 06:00 PM PDT

Forex Pros – The U.S. Dollar was higher against the Japanese Yen on Thursday.

USD/JPY was trading at 81.17, up 0.11% at time of writing.

The pair was likely to find support at 80.25, Monday's low, and resistance at 81.57, Wednesday's high.

Meanwhile, the U.S. Dollar was up against the Euro and down against the British Pound, with EUR/USD shedding 0.22% to hit 1.4109 and GBP/USD rising 0.07% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates


The Republican Recipe For An Anemic Economy Through Election Day 2012

Posted: 03 Nov 2010 05:40 PM PDT

The real message from voters was "Fix this stinking economy." But Republicans have no intention of doing so.
With Republicans in control of the House, forget spending increases or tax cuts to stimulate the economy.
Republicans don't believe in stimulating economies. They think markets eventually clear — once the pain is sufficient. Or in the immortal words of Herbert Hoover's treasury secretary, millionaire industrialist Andrew Mellon: "Liquidate labor, liquidate stocks, liquidate … [visit site to read more] or compare Best Credit Cards and Best CD Rates


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