Wall Street rally pauses on global headwinds

www.cfb.ae

 
Wall Street was little changed on Monday as Italy's credit downgrade and disappointing Chinese economic data gave investors a reason to pause after last week's rally that took the Dow to record highs.
Even with the slight decline, the S&P 500 index .SPX was only about 1 percent away from its all-time closing high. U.S. stocks have seen a strong gain in the first three months of the year and pullbacks have been short lived as investors look for an opportunity to buy.
"There's a lot of pent-up demand and people seem to be buying on weakness," said Alan Lancz, president of Alan B. Lancz & Associates Inc in Toledo, Ohio.
"I don't see this as anything negative from the standpoint of what the market's done throughout 2013 so far."

The S&P is up 8.7 percent since the beginning of the year, while the Dow has climbed nearly 10 percent. Markets have been cheered by signs of improvement in the U.S. economic recovery, including recent unexpected strength in the labor market.

But a number of potential roadblocks are not far from investors' minds, including worries about the euro zone debt crisis after Fitch downgraded Italy due to the country's political stalemate.
Data over the weekend from China pointed to an uneven recovery for the world's second-largest economy as inflation rose to a 10-month high in February and factory output and consumer spending were weaker than forecast.

The Dow Jones industrial average .DJI edged down 1.95 points, or 0.01 percent, at 14,395.12. The Standard & Poor's 500 Index .SPX slipped 1.89 points, or 0.12 percent, to 1,549.29. The Nasdaq Composite Index .IXIC was off 9.56 points, or 0.29 percent, to 3,234.81.

Dell Inc (DELL.O) has agreed to give Carl Icahn a closer look at its books less than a week after the activist investor joined a growing chorus of opposition to founder Michael Dell's plan to take the world's No. 3 personal computer maker private. Dell shares were up 1.1 percent at $14.31, above the take-private offer price of $13.65.

Genworth Financial Inc (GNW.N) shares jumped 6.4 percent to $10.46 following a report by Barron's that the mortgage insurer's stock could almost double in the next year, boosted by gains in mortgage and healthcare pricing.

Dick's Sporting Goods Inc (DKS.N) slumped 7.9 percent to $46.61 after the retailer reported lower-than-expected fourth-quarter results and gave a disappointing forecast.

 Contact Us:

Asad Rasheed
Direct:04-3841906
Email:asad@cfb.ae
Email:info@cfb.ae


For more information please visit our website:  www.cfb.ae

News Source: www.reuters.com

Here is another blog that provides regular news and information and is very useful to stay updated
on the markets... http://century-financial-brokers-uae.blogspot.ae/

Bank of Japan to adopt 2% inflation target

The Bank of Japan on Tuesday formally adopted a 2% inflation target in a major shift in its policy stance, and said it will continue its asset purchases on an "open-ended" basis to further expand its monetary stimulus. At the conclusion of its two-day policy meeting, the central bank said its "price stability target" of 2% year-on-year increase in consumer prices will replace its previous "goal" of a 1% increase in inflation. Under its open-ended asset purchases, the Bank of Japan said it will pursue "aggressive monetary easing" aimed at achieving its 2% price stability target, "through a virtually zero interest rate policy and purchases of financial assets," for as long as the bank judges it appropriate. The decision sent the yen and Japanese stocks on a wild ride: The yen initially fell sharply after the announcement, sending stocks rallying, but the currency soon bounced back sharply as the market digested the details, with shares likewise moving back to losses

Gold futures move higher as dollar slips

Gold futures rose in electronic trading during Asian hours Monday as the U.S. dollar moved lower, recovering a portion of losses made in regular trading at the end of last week.

Gold for February delivery GCG3 +0.43%  advanced $4.40 to $1,664.90 an ounce in electronic trading Monday.

Some support for gold on Monday came from a weaker U.S. dollar. The ICE dollar index DXY -0.11% , which measures the greenback against a basket of six other currencies, traded at 79.409, down from 79.566 in late North American trading Friday.

Gold’s gain came after the benchmark futures fell $17.40 on Friday to settle at $1,660.60 an ounce on the Comex division of the New York Mercantile Exchange after the release of stronger-than-expected Chinese inflation data.

 

Southeast Asia a worry in 2013

Global markets have started 2013 on a bullish note, but that may not continue for the rest of the year.

However, the metal notched a 0.7% for the past week. Read: Gold settles lower for the day, up for the week

“Lack of conviction has tainted gold price action, and gold has struggled to establish its identity as a safe-haven asset,” said commodity strategists at Barclays Capital.

“The hurdles for gold are mounting, from dollar strength to a softer physical market, but in our view, a number of positive macro catalysts still exist that could push prices significantly higher,” they said.

Potential triggers for gold included the U.S. debt-ceiling debate and other fiscal issues, which the strategists said “are far from fully resolved” and pose a risk to the U.S. credit rating.

“Risks are skewed towards the near term, [and] we believe that the first quarter of 2013 will be key in setting the tone of trading,” the strategists said.

Around the wider metals complex, silver for March delivery SIH3 +1.03%  advanced 25 cents to $30.66 an ounce.

April platinum PLJ3 -2.34%  climbed $7.50 to $1,638.70 an ounce, while March palladium PAH3 -0.68%  advanced $2.40 to $703.85 an ounce.

March copper HGH3 +0.70%  rose 2 cents to $3.68 per pound.

Real estate prices expected to drop this year

• 
  Reuters - The increasing real estate prices will decline in 2013.

The increasing real estate prices will decline in 2013, Ayed Al-Qahtani, head of the Real Estate Committee in the Eastern Chamber, told a local newspaper. During a symposium on real estate in Dhahran last week, Al-Qahtani said that real estate prices in some areas of the Kingdom rose during the past four years by 150 percent. The Saudi market overcame all the consequences of the global crisis of 2008. “This gave way to a great confidence in the country’s real estate market,” he said.

The Eastern Province has the highest number of real estate auctions, and the most diverse new products in the sector, despite the obstacles it is facing. “A developer must obtain a so-called Aramco document, before any new land scheme can be approved. That is the biggest obstacle for the sector,” said Al-Qahtani.
The problem of liquidating assets, which distressed real estate contributions, was resolved in 2012 through the direct supervision of the Ministry of Commerce.
“The mortgages finance regulation was approved last year, with its many passages and codes. This is considered to be a strong driver for the real estate market in the Kingdom, with the inclusion of mortgage, leasing finance, executive judiciary and assessment,” said Al-Qahtani.
He said that assessment law is the most difficult of all, and should only be applied with a clear and precise mechanism. He mentioned the US mortgage crisis that led to the collapse of the property sector. He stressed that the establishment of a commission for assessment is a good step forward to implement the law.
For 2013, Al-Qahtani predicted, “Residential units still fall short to cover the demand in the Kingdom. The market here needs more than 300 thousand units, against the 120 thousand units provided by developers annually,” he concluded.

CENTURY FINANCIAL BROKERS

Benefits & Services facilitated by CFB

• 24 hours trading 5 days a week with continuous access from any part of the world.
• An enormous liquid market making it easy to trade most markets.
• Volatile markets offering huge profit opportunities.
• Wide range of trading markets and financial instruments.
• Leverage trading with low capital.
• Recognized instruments for controlling risk exposure.
• The ability to profit from rising or falling markets.
• Leveraged trading with low margin requirements.
• Proper training for trading in FX Markets.

• CFB provides state-of-the-art online trading software, providing electronic order entry in the most liquid and dynamic market movers world-wide
• Through one window, traders access FX, futures, stocks, CFDs, metals, energies etc.
• As a client you will have access to real-time prices, two-way quotes, charts, news, market commentaries & analysis of all major currencies, metals, commodities, futures, energies etc. and  receive statements of your account on regular basis

We request you for a few minutes from your valuable time to give you a brief idea of how our company can help explore the investment opportunities in the global financial markets which can give you amazing returns on your investments. For more details, please visit our website www.cfb.ae

Thank you.

CONTACT

Asad Khan  (CFB)
(0508774861)
asad@cfb.ae

www.cfb.ae

CENTURY FINANCIAL BROKERS Forex

Dear Investor,

CFB realizes that you have many choices and opportunities in the international financial markets when it comes to seeking, evaluating and selecting a personal and professional broker. Founded in Dubai in1989, CFB is the region’s largest independent brokerage firm in the financial industry. Regardless of how you want to invest and trade the financial markets – CFB can provide you with the tools, resources and services you desire. 

Century Financial Brokers LLC (CFB) is licensed and regulated by the Central Bank of United Arab Emirates and Emirates Securities and Commodities Authority (ESCA). We are also the principal broker & clearing member of Dubai Gold and Commodities Exchange (DGCX).

Margin Trading

Facilitating margin trading in Currencies, Commodities and Metals and more, with a leverage facility of 100% of face value. In the financial markets, you can trade (Buy or Sell) any currency, commodity or metals simply by investing 1% or 2% of the product value.

Products offered by CFB

• Currencies: Euro, British Pound, Swiss Franc, Japanese Yen & over 25 crosses
• Metals:        Gold, Silver, Aluminum, Nickel, Copper, etc.
• Energies:     Crude Oil, Heat Oil, Natural Gas, Gasoline, etc.
• Commodities: Sugar, Wheat, Corn, Coffee, Grains, etc.
• Indices:       Dow Jones, NASDAQ, S&P, FTSE, CRB, etc.
• CFD Stocks: American, European & Asian stocks.

Benefits & Services facilitated by CFB

• 24 hours trading 5 days a week with continuous access from any part of the world.
• An enormous liquid market making it easy to trade most markets.
• Volatile markets offering huge profit opportunities.
• Wide range of trading markets and financial instruments.
• Leverage trading with low capital.
• Recognized instruments for controlling risk exposure.
• The ability to profit from rising or falling markets.
• Leveraged trading with low margin requirements.
• Proper training for trading in FX Markets.

• CFB provides state-of-the-art online trading software, providing electronic order entry in the most liquid and dynamic market movers world-wide
• Through one window, traders access FX, futures, stocks, CFDs, metals, energies etc.
• As a client you will have access to real-time prices, two-way quotes, charts, news, market commentaries & analysis of all major currencies, metals, commodities, futures, energies etc. and  receive statements of your account on regular basis

We request you for a few minutes from your valuable time to give you a brief idea of how our company can help explore the investment opportunities in the global financial markets which can give you amazing returns on your investments. For more details, please visit our website www.cfb.ae

Thank you.

CONTACT

Asad Khan  (CFB)
(0508774861)
asad@cfb.ae

www.cfb.ae

FISCAL CLIFF (What’s in Boehner’s “Plan B” – and what’s not)

What’s in Boehner’s “Plan B” – and what’s not

December 19, 2012, 11:30 AM

House Speaker John Boehner’s “Plan B” is Topic A in Washington as Republicans and the White House try to avert the fiscal cliff. And while it has almost no chance of clearing the Democratic-controlled Senate, passage in the House would allow the GOP to say Republicans acted to stop some tax increases. A vote — which the White House says President Obama would veto — is expected on Thursday.

Here’s a look at what’s in the bill, and what’s not.

The marquee element of the bill, which Boehner first unveiled on Tuesday, is its extension of Bush-era tax cuts for Americans making less than $1 million. That threshold was a concession by Boehner, who’d originally wanted tax increases on no one. But it’s much higher than President Obama’s $400,000 threshold (which was itself a concession for Obama).

Plan B also sets at 20% the tax rates for capital gains and dividends on income higher than $1 million — but keeps the current 15% rate for those making less than $1 million. Without a fiscal cliff agreement, rates on capital gains go up to a maximum of 23.8%. For dividends, rates go even higher, from 15% now to 43.4%. Click here for a Tax Foundation primer on the fiscal cliff.

Boehner’s bill would keep current rules on the estate tax, setting the exemption just north of $5 million with a top rate of 35%. That’s compared to 55% without a fiscal-cliff deal. Obama would set the estate tax at 45% with a $3.5 million exemption.

Plan B would also prevent the expansion of the alternative minimum tax, and extend some expensing for small businesses.

What it would NOT do is address the across-the-board spending cuts set to kick in next year for the Pentagon and domestic spending. Nor would it deal with the debt limit.

So while passage of Plan B would put Republicans on the record as opposing most tax increases (as if that were in doubt) it would only address half of the fiscal cliff. But Republicans could blame someone else for that.

FISCAL CLIFF (What’s in Boehner’s “Plan B” – and what’s not)

What’s in Boehner’s “Plan B” – and what’s not

December 19, 2012, 11:30 AM

House Speaker John Boehner’s “Plan B”is Topic A in Washington as Republicans and the White House try to avert the fiscal cliff. And while it has almost no chance of clearing the Democratic-controlled Senate, passage in the House would allow the GOP to say Republicans acted to stop some tax increases. A vote — which the White House says President Obama would veto — is expected on Thursday.

Here’s a look at what’s in the bill, and what’s not.

The marquee element of the bill, which Boehner first unveiled on Tuesday, is its extension of Bush-era tax cuts for Americans making less than $1 million. That threshold was a concession by Boehner, who’d originally wanted tax increases on no one. But it’s much higher than President Obama’s $400,000 threshold (which was itself a concession for Obama).

Plan B also sets at 20% the tax rates for capital gains and dividends on income higher than $1 million — but keeps the current 15% rate for those making less than $1 million. Without a fiscal cliff agreement, rates on capital gains go up to a maximum of 23.8%. For dividends, rates go even higher, from 15% now to 43.4%. Click herefor a Tax Foundation primer on the fiscal cliff.

Boehner’s bill would keep current rules on the estate tax, setting the exemption just north of $5 million with a top rate of 35%. That’s compared to 55% without a fiscal-cliff deal. Obama would set the estate tax at 45% with a $3.5 million exemption.

Plan B would also prevent the expansion of the alternative minimum tax, and extend some expensing for small businesses.

What it would NOT do is address the across-the-board spending cuts set to kick in next year for the Pentagon and domestic spending. Nor would it deal with the debt limit.

So while passage of Plan B would put Republicans on the record as opposing most tax increases (as if that were in doubt) it would only address half of the fiscal cliff. But Republicans could blame someone else for that.

Gold and Silver Miners Show Strength as Futures Decline

On Tuesday, gold (NYSEARCA:GLD) futures for February delivery, the most active contract, dropped $25.30 to settle at $1,695.80 per ounce, while silver (NYSEARCA:SLV) fell 95 cents to close at $32.78.

Both precious metals declined as political rhetoric over the fiscal continues to dominate headlines. In an interview on Bloomberg Television, President Barack Obama said, “We have the potential of getting a deal done.”

 However, he also added, “We’re going to have to see the rates on the top 2 percent go up, and we’re not going to be able to get a deal without it.” The statement shows that both sides of the aisle still have some work to do before reaching an agreement.

Some analysts believe that a failure to prevent the fiscal cliff will send gold prices lower, as everything in the market will selloff in the short-term. However, long-term bullish trends like ultra-low interest rates still remain in place for precious metals. Australia’s central bank cut interest rates by 0.25 percent to 3.0 percent on Tuesday, matching the lowest level on record since 2009.

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) fell about 1.0 percent, while the iShares Silver Trust (NYSEARCA:SLV) declined 2.0 percent. Gold miners (NYSEARCA:GDX) performed better, with Barrick Gold (NYSE:ABX) and Goldcorp(NYSE:GG) both jumping more than 1.0 percent. First Majestic Silver (NYSE:AG) and Silver Wheaton (NYSE:SLW) also climbed higher.

CONTACT

Asad Khan  (CFB)
(0508774861)
asad@cfb.ae

www.cfb.ae