Sunday, 24 March 2013
FKLI Related News (Mon, Mar 25)
U.S. stocks gained ground Friday, nearly erasing the week's losses for the Dow industrials as investors started to look past the latest euro-zone debt drama. For European markets, however, it was a different story, as the turmoil in Cyprus continued to damp sentiment. The Dow Jones Industrial Average advanced 90.54 points, or 0.6%, to 14512.03 Friday, bouncing back from a 90-point slide on Thursday, which was its biggest one-day loss since Feb. 25.
Cyprus's effort to secure a bailout from its euro-zone partners raised concerns about the region's woes this week. The Standard & Poor's 500-stock index added 11.09 points, or 0.7%, to 1556.89. The Nasdaq NDAQ +1.00%Composite Index rose 22.40 points, or 0.7%, to 3245.00. About 5.3 billion shares changed hands, 16% below the average daily volume for U.S. stocks this year. A deadline looms on Monday that could result in the European Central Bank withdrawing support from Cyprus's banking system.
The Cypriot episode has led to losses for U.S. stocks in recent days. For the week, the S&P 500 fell 0.2%, just its second weekly decline this year. The Dow ended the week lower by just two points, or less than 0.1%. The Stoxx Europe 600 fell 0.1%, capping its biggest weekly loss since mid-November. Germany's DAX slid 0.3%. Demand for Treasury prices rose as investors sought a haven, sending the yield on the 10-year note down to 1.915%.
In addition to signs of recovery, bulls are pointing to continued stimulus from the Federal Reserve, said Paul Nolte, managing director at Dearborn Partners, which manages about $4 billion in Chicago. Among U.S. stocks, consumer-oriented shares in the S&P 500 led gains across all 10 of the index's sectors. Nike NKE +11.06%jumped after reporting a quarterly profit that beat analysts' expectations, amid higher global shoes and apparel sales.
In Asia, Japanese stocks declined, as a strengthening yen undermined exporters' shares. The Nikkei Stock Average slid 2.4%. The yen was on track to close at a 2½-week high against the dollar amid disappointment that the new Bank of Japan governor renewed his pledge to expand monetary easing but gave no indication of new, more aggressive stimulus measures. Meanwhile, China's Shanghai Composite Index and Australia's S&P ASX 200 both gained. Crude-oil prices gained 1.4%, to settle at $93.71 a barrel, while gold eased 0.5%, to settle at $1,606.20 a troy ounce. The dollar lost ground against the euro. [The Wall Street Journal]
Malaysian shares finished lower on Friday at 1626.89, tracking declines in regional equities on continued worries over Cyprus’ bailout deal. FKLI spot month contract opened unchanged this morning at 1,624.5 as jittery investors continue to lock in gains ahead of the much anticipated national elections. Today’s Support and Resistance for March contract is located around 1,615 and 1,634 respectively.