Sunday, 23 September 2012
FKLI Related News
NEW YORK (Reuters) - Stocks could struggle to stay close to nearly five-year highs this week as worries mount about third-quarter earnings and the market appears primed for a pullback from recent stimulus-driven gains. The Dow Jones industrial average and the benchmark Standard & Poor's 500 index remain close to highs not seen since December 2007. The S&P 500 is up 16.1 percent since the end of 2011.
"I think the market certainly is ripe for a pullback. But whatever the pullback, it's going to be rather shallow," said Peter Cardillo, chief market economist at Rockwell Global Capital, in New York. "Any disappointment in key economic data that would reverse the market's feeling the economy has stabilized, I think could trigger a 2 to 4 percent pullback," he added. Some of that move was seen last week in stocks. The S&P 500 slipped 0.4 percent for the week. The Dow industrials and the Nasdaq each finished the week down 0.1 percent. Besides August durable goods orders, data on personal income and spending is due this week, as well as new home sales and the final read on U.S. Gross Domestic Product for the second quarter.
The euro gained against other currencies including the dollar after a report European officials would reveal a rescue plan for Spain. Spain is mulling freezing pensions and picking up the pace of a planned increase in the retirement age as it tries to curb spending and meet conditions of an anticipated global rescue package.
Asian stocks ended a turbulent week on an upbeat note Friday, with the launch of Apple Inc.’s newest iPhone helping technology and telecom companies, while Japan Airlines Co. fell below its offer price as bilateral tensions between China and Japan weighed on airlines.
Stock index continue to correction as investors grew wary about the impending slow down on certain major Asia economy, namely China and Japan. Technically, the index futures might be topping out at the moment as market refuse to recover above the all time high last week. In Malaysia, market is likely to head into sideways movement with resistance area located around 1,620 while support is located around 1,580 level.