Dollar climbs at start of 2011 on hopes for growth

Dollar climbs at start of 2011 on hopes for growth
That suggests that the broader economy grew at an annual rate of about 4 to 4.5 percent, said Capital Economics analyst Paul Ashworth. The U.S. economy grew 2.6 percent in the July-September quarter. In late trading in New York, the Euro dropped to $1.3364 from $1.3367 late Friday. The British pound dropped to $1.5491from $1.5590, while The Dollar rose to 81.65 Japanese Yen from 81.21 yen. Seventeen European nations use the Euro after Estonia on Saturday adopted the common currency. It has dro...

What's Up, What's Down: Spotlight on Currencies
CURRENCIES: 1/3/11 Higher closes for the last trading day of the year, for the Japanese Yen,Euro Fx, Swiss Franc, Aussie Dollar, British Pound and Canadian Dollar while lower for The Dollar index.The euro and franc settled higher with the franc making a new CONTRCT HIGH AND CLOSE while the euro is now close to a buy signal. Also the swiss/ euro spreading continues to work. The yen made best high and close since Nov. 11th(higher 11 trading sessions in a row) but now in a resistance area. The Cana...

Central banks underpin euro and diversify toward "other currencies"
The IMF released its Q3 2010 Currency Composition of Official Foreign Exchange Reserves (COFER) report. The COFER database provides the breakdown of official Central Bank portfolio holdings by currency across advanced and emerging/developing market economies. The picture is roughly half complete, as 44% of the global reserve positions go unallocated. But the trend in reported FX holdings indicates that central banks are supporting the euro, giving it a lower bound. Furthermore, there has been ...

Commodities: The bull that won't die - The Buzz
NEW YORK (CNNMoney) -- Gold, oil and other commodities enjoyed a stellar run in 2010. The party may not be over just yet ... but investors have to be wary. Several experts say that the main forces behind the bull run in commodities last year, namely strong economies in Emerging Markets coupled with worries about the health of the U.S. and Europe, are likely to remain in place this year. Email Print Comment Concerns about the Sovereign Debt crisis in Europe and the slow grind of a recovery in t...

2011: Year of the bank run?
2011: Year of the bank run? Posted by Colin Barr January 3, 2011 6:27 am Is a bank run about to bring Europe to its knees? Some market watchers say yes, pointing ominously to the torrents of money pouring out of Ireland. Not such a good bet Irish bank deposits declined in November for the fourth straight month, the Central Bank said last week. Overseas deposits fled the country at their fastest pace in more than a year. The deposit flight compounds the stress on a Financial System whose ma...

Economic Themes at the Start of 2011
3.  China’s Economic Growth appears to be moderating.  The official Dec Manufacturing ISM eased to 53.9 from 55.2 in November and compares with consensus expectations of around 55.5.  The results were in line with the private measure released last week.  The moderation was widespread including output, new orders and employment.  New export orders bucked the general trend and ticked up to 53.5 from 53.2.  Just as important, if not more so, input prices eased (t...

Britain's FTSE leads stock markets higher
LONDON (AP) - The FTSE 100 index of leading British shares outperformed its peers Tuesday, leading European shares higher as traders played catch-up following a belated New Year return. Oil company BP PLC made sizable gains following reports that rival Royal Dutch Shell considered a bid for a company when it was mired in its Gulf of Mexico woes last year. Stock Markets have started 2011 buoyantly in the wake of a run of upbeat economic data from around the globe. In Europe, Germany's DAX was ...

Stocks poised to start year higher
NEW YORK (CNNMoney) -- U.S. stocks were poised to kick off the new year with gains Monday, as investors return from the holidays and await a key report on Manufacturing. Dow Jones industrial average (INDU), S&P 500 (SPX) and NASDAQ (COMP) futures were higher ahead of the opening bell. Futures measure current index values against perceived future performance. Stocks ended a rollercoaster year with a lackluster showing Friday, but all three major indexes logged double-digit gains for the ye...

Feds claim dollar will rise in 2011
Never mind the lackluster economy, the huge Trade Deficit or the government’s piles of Debt: The U.S. dollar is still expected to outperform most of the world’s major currencies next year. “By all rights, The Dollar should be declining in value, but it’s not,” says Eswar Prasad, Economics Professor at Cornell University. “For The Dollar to decline in value, you must have currencies on the other side that will” rise. Bad as things are in the United States...

Stocks poised to extend gains
NEW YORK (CNNMoney) -- U.S. stocks were poised to follow world markets higher Tuesday, building on the previous session's big rally. Dow Jones industrial average (INDU), S&P 500 (SPX) and NASDAQ (COMP) futures were higher ahead of the opening bell. Futures measure current index values against perceived future performance. Email Print Comment Stocks started the year off strong Monday, with the Dow closing at a fresh two-year high, after Manufacturing and construction reports stoked investor...

On Future Oil Prices And The Economic Deterioration Should Crude Follow Gold's Surge
So with fundamentals irrelevant, what is? Well, the value of The Dollar for one. And as QE3 is rolled out the impact on The Dollar will be anything but favorable. Typically, those forecasters that are painting a picture of much higher prices throughout 2011 are not doing it on the back of divergent expectations about the supply/demand fundamentals. The effect of speculative trading and the impact of currency movements, most notably US dollar weakness, are prominent. In 2007, 2008 and 2009, the ...

World stocks rise as 2011 trading opens
PARIS - Major European Stock Markets rumbled higher at the start of 2011, with bourses in Frankfurt and Paris gaining ground in the wake of an upbeat start across Asia. In late morning European trade, the CAC-40 in Paris was up 2.2 percent to 3,886.92 as Germany's DAX rose 1.6 percent to 7,024.16. The London Stock Exchange was closed for a Bank Holiday. The biggest Asian markets closed higher, as investor confidence was boosted by signs that China's efforts at keeping a lid on Inflation ma...

Crisis In Euroland
The euro, that artificial Funny Money used by 331 million Europeans in17 nations -- the 17th, Estonia, joined the euro just this week -- was conceived in sin and born in Corruption. The New Year brings the prospect that the sins of the European Union's Founding Fathers will be visited on its hapless citizens in the form of financial turmoil and fiscal pain. The original sins at the euro's conception included stealth, lies, and hypocrisy. That at least was consistent with the creation of "Europe"...

Stocks start 2011 with a lift
NEW YORK (AP) - Stocks started 2011 with a lift Monday thanks to better than expected economic news out of Europe. Shares rose throughout Europe after a report showed that Manufacturing in the Eurozone expanded faster than analyst's forecasts. The Euro Stoxx 50 index rose 0.8 percent. Benchmark indexes in France, Spain, and Germany each gained more than 1.1 percent. Investors will get reports on Manufacturing growth and construction spending in the U.S. on Monday as well. Economists expect tha...

Stocks Start 2011 With A Lift
NEW YORK (AP) — Stocks started 2011 with a lift Monday thanks to better than expected economic news out of Europe. Shares rose throughout Europe after a report showed that Manufacturing in the Eurozone expanded faster than analyst’s forecasts. The Euro Stoxx 50 index rose 0.8 percent. Benchmark indexes in France, Spain, and Germany each gained more than 1.1 percent. Investors will get reports on Manufacturing growth and construction spending in the U.S. on Monday as well. Economists ...

The world in 2011
THE EU THE fundamental question facing the EU this year is one of leadership - is there anyone with the vision to lead the 27-nation bloc forward after a very tough 2010? Britain is of course in a different position from the other big western European count ADVERTISEMENT ries, being outwith the Eurozone - it is the now 17 countries using the currency that have most to lose if national economic interest triumphs over concerted action. However, these are same European countries that make up...

One Minute Macro Update
Europe : EURIBOR-OIS has fallen back below 40bp as EURIBOR drops below 100bp and SOVXWE trades back towards 200bp. We still believe the European periphery situation will continue to deteriorate and will eventually overtake the Bullish tone the market has adopted over the past few weeks. UK December Manufacturing PMI 58.3 v 57.2E as M4 growth printed at -0.8% MoM v +0.7% prior. YoY -1.4% v -0.8% prior. The BOE has reportedly been targeting 5% M4 growth to avert Recession. German employment figure...

Spain's ACS snaps up stake in German builder
Spain's biggest Public Works group ACS said on Tuesday it has succeeded in snapping up more than 30 percent of shares in German rival Hochtief, a key step towards taking overall control. ACS, led by Real Madrid football club chairman Florentino Perez, said it has acquired 30.34 percent of the German group, which had battled furiously against the Spanish bid. Under German law, ACS is now allowed to buy its prey's shares on the open market, opening the way for it to take a majority stake and bec...

Spain's ACS snaps up stake in German builder
Spain's biggest Public Works group ACS said on Tuesday it has succeeded in snapping up more than 30 percent of shares in German rival Hochtief, a key step towards taking overall control. ACS, led by Real Madrid football club chairman Florentino Perez, said it has acquired 30.34 percent of the German group, which had battled furiously against the Spanish bid. Under German law, ACS is now allowed to buy its prey's shares on the open market, opening the way for it to take a majority stake and becom...

Gold gives up a little with dollar mixed
Gold jumped to near record prices Friday, climbing briefly above $1,420 per troy ounce. On Monday, gold shed $6.70 to $1,414.70 per troy ounce. February deliver Crude Oil prices added 16 cents to $91.54 per barrel. The Dollar on Monday the dollar gained ground against the euro, the pound and the yen with the euro falling to $1.3357 from Friday's $1.337. Against the yen, the dollar rose to 81.70 yen from Friday's 81.22 yen. Against the the Hong Kong dollar, the U.S. dollar fell to 7.7703 HKD from...

Stocks kick off 2011 on a high note
NEW YORK (CNNMoney) -- U.S. stocks started 2011 with 1% gains at Monday's open. Bank of America led financial shares higher after it announced a $3 billion Mortgage settlement. Investors were also awaiting a key report on Manufacturing. The Dow Jones industrial average (INDU) gained more than 108 points, or 0.9%; the S&P 500 (SPX) rose 13 points, or 1%; and the NASDAQ (COMP) increased 35 points, or 1.3%. Email Print Comment While The Economy has a long road to recovery, investors are bull...

Oil extends rally above $91 on optimism, eyes U.S. data
By Jennifer Tan Singapore | Mon Jan 3, 2011 2:42am EST Singapore (Reuters) - Oil extended its rally above $91 a barrel on Monday on optimism the global economic rebound is gathering momentum, which could drive demand growth and send prices above $100 later this year. Traders will scour U.S. Dec Manufacturing survey data, initial claims for jobless benefits and December employment figures, due later this week, for more clues on the pace of recovery in the world's top energy consumer. Upbeat U....

2011: Year of the bank run?
Irish bank deposits declined in November for the fourth straight month, the Central Bank said last week. Overseas deposits fled the country at their fastest pace in more than a year. The deposit flight compounds the stress on a Financial System whose massive property-lending losses already have driven the government to accept an unpopular Bailout from the European Union and the International Monetary Fund. Worse yet, it shows that the solutions policymakers slapped together in the fall of 2008 h...

Stocks recovery rally to continue
NEW YORK (CNNMoney) -- Stocks have had a great run since bottoming out nearly two years ago, and Wall Street experts anticipate 2011 to be no different. Investment Strategists and money managers expect the S&P 500 to rise 11%, on average, according to an exclusive CNNMoney survey. In fact, not one of the 32 experts surveyed by CNNMoney think the S&P 500 will decline this year. Email Print Comment "Everything seems to be in place for the Stock Market to rise," said Weeden &...;

Wall Street climbs in first session of 2011
By Leah Schnurr NEW YORK (Reuters) - Stocks greeted the new year with a rally on Monday as encouraging signs about the outlook for Manufacturing around the world prompted investors to inject new money into the market. Data from the United States,... Traders work on the floor of the New York Stock Exchange early in the trading session in New York January 3, 2011. NEW YORK (Reuters) - Stocks greeted the new year with a rally on Monday as encouraging signs about the outlook for Manufacturing arou...