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Market News that affect STI

China hits back in US tyre import dispute
Posted: 13 September 2009 2253 hrs

	Photos 1 of 1 Chinese workers check tyres at a factory in Hangzhou.

 

BEIJING: China on Sunday denounced US tariffs on its tyre exports and announced it would investigate possible unfair practices in US exports of car parts and chicken meat, straining ties between the two giants.

Chinese foreign ministry spokeswoman Jiang Yu said the US tariffs amounted to a "grave" form of protectionism.

"The United States, by making the decision, failed to honour its commitments made at the G20 financial summit and abused trade remedy measures, which is grave protectionism and will undermine China-US economic and trade ties as well as the early recovery of the world economy.

"We hereby express our strong discontent and firm opposition to the US decision," she said, quoted by state news agency Xinhua.

Earlier, China's commerce ministry announced a probe into the United States' own exports of car products and chicken meat to China, having warned it was likely to retaliate against the US tyre tariffs.

"In line with national laws and World Trade Organisation rules, the commerce ministry has started an anti-dumping and anti-subsidy examination of some imported US car products and chicken meat," the commerce ministry said.

"Recently, the commerce ministry has received word from domestic industries indicating that the above mentioned products had entered our nation's markets via dumping, subsidies and other unfair trade means.

"This impacted domestic industries and the commerce ministry was requested we launch an anti-dumping and anti-subsidy probe."

It gave no further details on the exact products involved or the alleged trade violations.

China was responding to an announcement by The White House on Friday of punitive duties of an extra 35 percent on Chinese-made tyres.

The dispute comes just weeks before Obama is due to host his Chinese counterpart Hu Jintao at the G20 summit this month, a meeting now sure to be a test of Washington's stated commitment to strengthening ties with Beijing.

Obama approved an increased duty on all imports of passenger vehicle and light truck tyres from China for a period of three years.

The decision was taken "in order to remedy a market disruption caused by a surge in tyre imports," the White House said.

Obama had been under pressure domestically to curb rocketing imports of Chinese goods that critics suggest have cost more than 5,000 jobs in the United States.

The government-run US International Trade Commission (USITC) had urged duties of up to 55 percent after union leaders claimed imports of cheap Chinese tyres had tripled over the last five years.

However, to minimise Chinese anger, Obama opted for a lower figure, whereby tariffs - already at four percent - will soar by an additional 35 percent in the first year, 30 percent in the second and 25 percent in the third.

China was already angered earlier in the week when the US imposed tariffs on pipes used in the petroleum industry.

The United States has long grappled with a ballooning trade deficit with China amid allegations that Beijing has been manipulating its currency to make its exports more competitive.

Obama entered the White House in January after campaigning for a robust trade policy with China. - AFP/ms/de

 

Hope STI don't back track. Cheers

dealer0168      ( Date: 12-Sep-2009 09:33) Posted: Should phrase it in this way instead: Currently, the STI is testing the 2660 level as resistance. Should the STI has push beyond 2660, the next target would be 2700 and possibly 2744. dealer0168      ( Date: 12-Sep-2009 09:28) Posted: Currently, the STI is testing the 2660 level as resistance. Should the STI push beyond 2660, the next target would be 2700 and possibly 2744.

 

Should phrase it in this way instead:

Currently, the STI is testing the 2660 level as resistance. Should the STI has push beyond 2660, the next target would be 2700 and possibly 2744.

dealer0168      ( Date: 12-Sep-2009 09:28) Posted: Currently, the STI is testing the 2660 level as resistance. Should the STI push beyond 2660, the next target would be 2700 and possibly 2744.

 

possible target..

 

Currently, the STI is testing the 2660 level as resistance. Should the STI push beyond 2660, the next target would be 2700 and possibly 2744.

 

 

Another US bank fail !!!

 

Corus, Minn. bank busts bring '09 failures to 91

SAN FRANCISCO (MarketWatch) -- Regulators closed Chicago-based Corus Bank N.A. and Woodbury, Minn.-based Brickwell Community Bank on Friday, bringing the number of U.S. bank failures this year to 91 and costing the federal deposit-insurance fund more than $1.7 billion as the credit crisis continues claiming victims.

Corus /quotes/comstock/15*!cors/quotes/nls/cors (CORS 0.25, -0.02, -5.77%) had $7 billion in assets and $7 billion in deposits as of June 30, the Federal Deposit Insurance Corp. said in a statement. The bank's deposits have been assumed by MB Financial Bank, the FDIC added.

MB Financial /quotes/comstock/15*!mbfi/quotes/nls/mbfi (MBFI 16.51, -0.52, -3.05%) will pay the FDIC a premium of 0.2% to assume all of the failed bank's deposits, and has agreed to purchase roughly $3 billion of its assets, "comprised mainly of cash and marketable securities," the regulator said.

Reports of Corus Bank's failure had surfaced earlier Friday. The Corus failure will cost the federal deposit-insurance fund $1.7 billion.

Separately, Brickwell Community Bank had $72 million in assets and $63 million in deposits as of July 24, according to the FDIC. Its deposits have been assumed by Mitchell, S.D.-based CorTrust Bank.

Brickwell Community Bank is the third bank to fail in Minnesota this year, and will cost the deposit-insurance fund $22 million.

 

 

 

I stay invested in equity on what I see, hear  and believe.....

Chinese govt is becoming wiser and wiser in the world stage...if developed countries do not stimulate their own economies, then who else can ? Get the richest people in the world to help ?

 

    Trade What You See, Not What You Hear 

ozone2002      ( Date: 11-Sep-2009 15:02) Posted: BIG BIG BUBBLE FORMING.. erictkw      ( Date: 11-Sep-2009 12:57) Posted: China assures world on stimulus efforts 08:09, September 11, 2009 China will not end its stimulus initiatives at a time when the global economy is starting to see "slow and zigzag" recovery from its free fall, Premier Wen Jiabao assured global business leaders Thursday. Instead, he said the country will "enrich its stimulus package" to better link it to the creation of new engines of China''s growth. "We cannot and will not change the direction of our policies at an inappropriate time," Wen said at the opening of the World Economic Forum in Dalian, Liaoning province. "The foundations of China''s economic recovery are not stable, not solidified and unbalanced and the global economic outlook is uncertain," he said. "The top priority of our work is to maintain stable and quick economic growth, so we will unswervingly stick to a relatively loose monetary policy and an active fiscal policy," said Wen. Economists and analysts saw Wen''s rejection of an early "stimulus exit" as a firm international commitment to shore up the global economy and they said the subject is sure to be further debated at the upcoming G20 leaders summit in Pittsburgh, Pa., late this month. Foreign Ministry spokesperson Jiang Yu said yesterday in Beijing that China hopes the forum will help tackle the world economic downturn and send a "stronger signal" for global recovery. "It''s too early to discuss the stimulus exit timetable because the global economy is still filled with uncertainties," Bi Jiyao, a senior economist with the National Development and Reform Commission, told China Daily. Bi said developed economies may consider withdrawing their fiscal stimulus measures around the middle of next year, if the world economy steadily picks up. China's Premier Wen Jiabao (L) waves next to World Economic Forum (WEF) founder Klaus Schwab after his speech at the opening ceremony of the WEF meeting, in China's port city Dalian September 10, 2009. (chinadaily.com.cn/Agencies) "For China, I think we will continue with strong fiscal spending but we should readjust where the taxpayers' money is going," said Bi. Wen said China would insist on policy consistency to ensure high-speed economic growth. "We should fully implement and continuously improve policies and discover and resolve new problems in a timely manner," said Wen. He warned about the risk of inflation even though the country was still experiencing deflation. "We should be alert and prevent all potential risks, including inflation," he said. China Daily learned yesterday from reliable sources that industrial growth last month was believed to be up by between 8.0 and 8.5 percent from 7.5 percent in July. The financial crisis led to the figure plunging to 3.8 percent in February, compared to its average of 15 percent before the financial turmoil. China began the year with many economists predicting that it would fail to hit its target of 8 percent growth for the year, which is crucial if China is to generate enough jobs for its millions of migrant workers. Hitting 8 percent is now within reach after China's economy expanded 7.9 percent in the second quarter, according to the central bank. Analysts have applauded the effectiveness of China's two-year, 4-trillion-yuan ($585 billion) stimulus package, but some have fretted that, in emphasizing investment, China has slowed the much-needed transition to a consumption-driven economy. Full Coverage: Davos at Dalian

 

Though we all looking to China to save the world, but, can it really save the world on its own? or ,  be enough to drag the rest of the world into a recovery?   Size matters -

The U.S. has a $14 trillion economy; China's is $4.4 trillion. The U.S. accounted for nearly 21% of total global GDP last year; China just 6.4%. Chinese consumption, in other words, is growing — but is still insufficient to lift the world's advanced economies out of recession. Consumer spending drives less than 40% of China's GDP; in the U.S. before the bust, the consumer accounted for almost 70%. With American shoppers now on the sidelines — the U.S. savings rate has soared from zero to nearly 7% in the past nine months as consumers have closed their wallets — the world desperately needs someone to step into that void.

 

 

 

Dun mind justify your reason (with substances like facts, figures, TA, etc) tat make u say tat.

Thks

ozone2002      ( Date: 11-Sep-2009 15:02) Posted: BIG BIG BUBBLE FORMING.. erictkw      ( Date: 11-Sep-2009 12:57) Posted: China assures world on stimulus efforts 08:09, September 11, 2009 China will not end its stimulus initiatives at a time when the global economy is starting to see "slow and zigzag" recovery from its free fall, Premier Wen Jiabao assured global business leaders Thursday. Instead, he said the country will "enrich its stimulus package" to better link it to the creation of new engines of China''s growth. "We cannot and will not change the direction of our policies at an inappropriate time," Wen said at the opening of the World Economic Forum in Dalian, Liaoning province. "The foundations of China''s economic recovery are not stable, not solidified and unbalanced and the global economic outlook is uncertain," he said. "The top priority of our work is to maintain stable and quick economic growth, so we will unswervingly stick to a relatively loose monetary policy and an active fiscal policy," said Wen. Economists and analysts saw Wen''s rejection of an early "stimulus exit" as a firm international commitment to shore up the global economy and they said the subject is sure to be further debated at the upcoming G20 leaders summit in Pittsburgh, Pa., late this month. Foreign Ministry spokesperson Jiang Yu said yesterday in Beijing that China hopes the forum will help tackle the world economic downturn and send a "stronger signal" for global recovery. "It''s too early to discuss the stimulus exit timetable because the global economy is still filled with uncertainties," Bi Jiyao, a senior economist with the National Development and Reform Commission, told China Daily. Bi said developed economies may consider withdrawing their fiscal stimulus measures around the middle of next year, if the world economy steadily picks up. China's Premier Wen Jiabao (L) waves next to World Economic Forum (WEF) founder Klaus Schwab after his speech at the opening ceremony of the WEF meeting, in China's port city Dalian September 10, 2009. (chinadaily.com.cn/Agencies) "For China, I think we will continue with strong fiscal spending but we should readjust where the taxpayers' money is going," said Bi. Wen said China would insist on policy consistency to ensure high-speed economic growth. "We should fully implement and continuously improve policies and discover and resolve new problems in a timely manner," said Wen. He warned about the risk of inflation even though the country was still experiencing deflation. "We should be alert and prevent all potential risks, including inflation," he said. China Daily learned yesterday from reliable sources that industrial growth last month was believed to be up by between 8.0 and 8.5 percent from 7.5 percent in July. The financial crisis led to the figure plunging to 3.8 percent in February, compared to its average of 15 percent before the financial turmoil. China began the year with many economists predicting that it would fail to hit its target of 8 percent growth for the year, which is crucial if China is to generate enough jobs for its millions of migrant workers. Hitting 8 percent is now within reach after China's economy expanded 7.9 percent in the second quarter, according to the central bank. Analysts have applauded the effectiveness of China's two-year, 4-trillion-yuan ($585 billion) stimulus package, but some have fretted that, in emphasizing investment, China has slowed the much-needed transition to a consumption-driven economy. Full Coverage: Davos at Dalian

 

BIG BIG BUBBLE FORMING..

erictkw      ( Date: 11-Sep-2009 12:57) Posted: China assures world on stimulus efforts 08:09, September 11, 2009 China will not end its stimulus initiatives at a time when the global economy is starting to see "slow and zigzag" recovery from its free fall, Premier Wen Jiabao assured global business leaders Thursday. Instead, he said the country will "enrich its stimulus package" to better link it to the creation of new engines of China''s growth. "We cannot and will not change the direction of our policies at an inappropriate time," Wen said at the opening of the World Economic Forum in Dalian, Liaoning province. "The foundations of China''s economic recovery are not stable, not solidified and unbalanced and the global economic outlook is uncertain," he said. "The top priority of our work is to maintain stable and quick economic growth, so we will unswervingly stick to a relatively loose monetary policy and an active fiscal policy," said Wen. Economists and analysts saw Wen''s rejection of an early "stimulus exit" as a firm international commitment to shore up the global economy and they said the subject is sure to be further debated at the upcoming G20 leaders summit in Pittsburgh, Pa., late this month. Foreign Ministry spokesperson Jiang Yu said yesterday in Beijing that China hopes the forum will help tackle the world economic downturn and send a "stronger signal" for global recovery. "It''s too early to discuss the stimulus exit timetable because the global economy is still filled with uncertainties," Bi Jiyao, a senior economist with the National Development and Reform Commission, told China Daily. Bi said developed economies may consider withdrawing their fiscal stimulus measures around the middle of next year, if the world economy steadily picks up. China's Premier Wen Jiabao (L) waves next to World Economic Forum (WEF) founder Klaus Schwab after his speech at the opening ceremony of the WEF meeting, in China's port city Dalian September 10, 2009. (chinadaily.com.cn/Agencies) "For China, I think we will continue with strong fiscal spending but we should readjust where the taxpayers' money is going," said Bi. Wen said China would insist on policy consistency to ensure high-speed economic growth. "We should fully implement and continuously improve policies and discover and resolve new problems in a timely manner," said Wen. He warned about the risk of inflation even though the country was still experiencing deflation. "We should be alert and prevent all potential risks, including inflation," he said. China Daily learned yesterday from reliable sources that industrial growth last month was believed to be up by between 8.0 and 8.5 percent from 7.5 percent in July. The financial crisis led to the figure plunging to 3.8 percent in February, compared to its average of 15 percent before the financial turmoil. China began the year with many economists predicting that it would fail to hit its target of 8 percent growth for the year, which is crucial if China is to generate enough jobs for its millions of migrant workers. Hitting 8 percent is now within reach after China's economy expanded 7.9 percent in the second quarter, according to the central bank. Analysts have applauded the effectiveness of China's two-year, 4-trillion-yuan ($585 billion) stimulus package, but some have fretted that, in emphasizing investment, China has slowed the much-needed transition to a consumption-driven economy. Full Coverage: Davos at Dalian

 

 

richtan      ( Date: 11-Sep-2009 12:36) Posted:   Asia Europe America Commodity(** = 30 mins delayed) Index Last Change % High Low Time STI 2681.35 -0.67 -0.02% 2696.79 2679.75 12:34:00 Hangseng 21237.48 167.92 0.8% 21284.74 20980.15 12:30:02 Nikkei225 10422.66 -91.01 -0.87% 10522.23 10422.66 13:34:02 SSE 2960.00 35.12 1.2% 2964.90 2915.90 11:30:07 KLCI 1207.73 6.45 0.54% 1210.36 1201.28 12:20:15 SET 705.87 2.78 0.4% 710.90 705.87 11:34:48

 

China assures world on stimulus efforts

08:09, September 11, 2009

China will not end its stimulus initiatives at a time when the global economy is starting to see "slow and zigzag" recovery from its free fall, Premier Wen Jiabao assured global business leaders Thursday.

Instead, he said the country will "enrich its stimulus package" to better link it to the creation of new engines of China''s growth.

"We cannot and will not change the direction of our policies at an inappropriate time," Wen said at the opening of the World Economic Forum in Dalian, Liaoning province.

"The foundations of China''s economic recovery are not stable, not solidified and unbalanced and the global economic outlook is uncertain," he said.

"The top priority of our work is to maintain stable and quick economic growth, so we will unswervingly stick to a relatively loose monetary policy and an active fiscal policy," said Wen.

Economists and analysts saw Wen''s rejection of an early "stimulus exit" as a firm international commitment to shore up the global economy and they said the subject is sure to be further debated at the upcoming G20 leaders summit in Pittsburgh, Pa., late this month.

Foreign Ministry spokesperson Jiang Yu said yesterday in Beijing that China hopes the forum will help tackle the world economic downturn and send a "stronger signal" for global recovery.

"It''s too early to discuss the stimulus exit timetable because the global economy is still filled with uncertainties," Bi Jiyao, a senior economist with the National Development and Reform Commission, told China Daily.

Bi said developed economies may consider withdrawing their fiscal stimulus measures around the middle of next year, if the world economy steadily picks up.


China's Premier Wen Jiabao (L) waves next to World Economic Forum (WEF) founder Klaus Schwab after his speech at the opening ceremony of the WEF meeting, in China's port city Dalian September 10, 2009. (chinadaily.com.cn/Agencies)


"For China, I think we will continue with strong fiscal spending but we should readjust where the taxpayers' money is going," said Bi.

Wen said China would insist on policy consistency to ensure high-speed economic growth.

"We should fully implement and continuously improve policies and discover and resolve new problems in a timely manner," said Wen. He warned about the risk of inflation even though the country was still experiencing deflation.

"We should be alert and prevent all potential risks, including inflation," he said.

China Daily learned yesterday from reliable sources that industrial growth last month was believed to be up by between 8.0 and 8.5 percent from 7.5 percent in July.

The financial crisis led to the figure plunging to 3.8 percent in February, compared to its average of 15 percent before the financial turmoil.

China began the year with many economists predicting that it would fail to hit its target of 8 percent growth for the year, which is crucial if China is to generate enough jobs for its millions of migrant workers.

Hitting 8 percent is now within reach after China's economy expanded 7.9 percent in the second quarter, according to the central bank.

Analysts have applauded the effectiveness of China's two-year, 4-trillion-yuan ($585 billion) stimulus package, but some have fretted that, in emphasizing investment, China has slowed the much-needed transition to a consumption-driven economy.

Full Coverage:
Davos at Dalian

 

Quote from "Big Trends" below:

Trade What You See, Not What You Hear

The numbers to watch on the SPX include 1044 for a breakout, 2060 on the Nasdaq and 9635 on the Dow.

 

 

 

U.S. Markets Wrap: Stocks Rise for Fifth Day, Bonds Rally



By Jeff Kearns

Sept. 10 (Bloomberg) -- U.S. stocks gained for a fifth day, the longest streak for the Standard & Poor’s 500 Index since November, as rising forecasts for oil demand boosted energy shares and jobless claims slid to the lowest level since July.

Treasuries rallied, sending the 10-year note’s yield down 12 basis points to 3.35 percent, following stronger-than- forecast demand at a $12 billion auction of 30-year bonds. Crude oil gained and the dollar declined to the weakest level against the euro this year.

The S&P 500 advanced to its highest level since Oct. 6 after weekly jobless claims decreased by 26,000 to 550,000, lower than economists forecast. The VIX, the benchmark index for U.S. stock options, fell to its lowest closing level since July as investors paid less to use the contracts for protection against declines in stocks.

“The jobs number was another confirmation that the economy may have reached the bottom,” said Wasif Latif, who helps oversee $90 billion at USAA Investment Management Co. in San Antonio.

The S&P 500 added 1 percent to 1,044.14 at 4:06 p.m. in New York. The Dow Jones Industrial Average increased 80.26 points, or 0.8 percent, to 9,627.48, also the highest since Oct. 6. Europe’s benchmark stock index rose 0.2 percent while Asia’s jumped 1.4 percent.

Benchmark equity indexes extended gains after Treasury Secretary Timothy Geithner told Congress that the government is preparing to withdraw some of its support for financial markets as it moves from “crisis response to recovery, from rescuing the economy to repairing and rebuilding the foundation for future growth.”

54 Percent Rebound

The S&P 500 has rebounded 54 percent from a 12-year low on March 9 amid signs the recession is easing and better-than- estimated earnings at companies from Johnson & Johnson to Goldman Sachs. The rally pushed the index’s valuation to about 19 times reported earnings of its companies, the highest level since June 2004, according to weekly data compiled by Bloomberg. That’s up from a 24-year low of 10.11 times earnings in March.

Treasuries gained as stronger-than-forecast demand at this week’s three auctions of $70 billion of notes and bonds suggests that concern about record amounts of government debt sales is overblown.

Treasury Auctions

The $12 billion of 30-year bonds sold today drew a yield of 4.238 percent, below the 4.289 percent forecast in a Bloomberg News survey of seven of the 18 primary dealers required to bid on the auctions. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 2.92, the strongest since November 2007.

Crude oil futures rose 0.9 percent to $71.95 a barrel in New York trading. World oil demand is likely to average 85.7 million barrels a day next year, according to a monthly report from the Paris-based agency. That’s 450,000 barrels a day more than estimated in August. Prices also advanced after U.S. oil inventories dropped more than expected and OPEC maintained output quotas.

The dollar depreciated 0.2 percent to $1.4585 per euro, from $1.4557 yesterday. It touched $1.4613, the weakest level since Dec. 18. The dollar dropped 0.4 percent to 91.72 yen, from 92.04, after reaching 91.44, the lowest level since Feb. 16. The euro fetched 133.77 yen, compared with 133.99.

Gold futures for December delivery slipped 30 cents to $996.80 an ounce on the New York Mercantile Exchange’s Comex division. The most-active contract has surpassed $1,000 in each of the past three days.

Sugar, Hogs

Sugar futures jumped 4 percent in New York on speculation that countries including India, the world’s largest consumer, are increasing imports to replenish inventories. Coffee fell. Hog futures rose to a five-week high in Chicago on signs bacon demand is climbing as the U.S. economy rebounds. Cattle fell.

The VIX, as the Chicago Board Options Exchange Volatility Index is known, lost 3.2 percent to 23.55 and dipped as low as 22.86, the lowest intraday level in a year. The index, which measures the cost of using options as insurance against declines in the S&P 500, has averaged 20.24 over its 19-year history and reached a record 80.86 in November.

“The break towards 23 definitely reflects that there’s less demand for protection,” said Philippe Trouve, the VIX options trader and vice president for equity derivatives at Bank of America in New York. “People are starting to feel better about this rally.”

The S&P 500 has gained about 2.3 percent so far in September, historically the worst month for U.S. equities. The index retreated 1.3 percent on average since 1928 in that month before this year, data compiled by Bloomberg show.

The S&P 500 plunged 9.1 percent last September after Lehman Brothers Holdings Inc. collapsed. The biggest drop occurred in September 1931 during the Great Depression, when the S&P 500 tumbled 30 percent.

To contact the reporter on this story: Jeff Kearns in New York at jkearns3@bloomberg.net. Last Updated: September 10, 2009 17:14 EDT

 

 

richtan      ( Date: 10-Sep-2009 12:10) Posted:   Asia Europe America Commodity(** = 30 mins delayed) Index Last Change % High Low Time STI 2691.58 41.10 1.55% 2691.58 2676.54 12:08:15 Hangseng 21183.58 332.54 1.59% 21228.16 21124.57 12:08:17 Nikkei225 10461.46 149.32 1.45% 10490.59 10382.99 13:08:01 SSE 2918.56 -27.70 -0.94% 2950.79 2911.21 11:30:11 KLCI 1209.26 12.80 1.07% 1210.11 1196.46 12:08:30 SET 705.60 10.01 1.44% 706.68 702.29 11:08:21

 

richtan      ( Date: 10-Sep-2009 12:07) Posted:

 

Are we in last wave now. Last wave maybe very strong one............May go higher........ 

 

Intraday had aredi broke above 2700, will probably head towards the fibo retracement level of 61.8% at around 2965, but of course not in one straight line, with corrections in between.

Dyodd n BOSAYOR

richtan      ( Date: 10-Sep-2009 12:23) Posted: STI is very close to breaking above the 2700 mark.