FKLI Related News

NEW YORK (Reuters) - The S&P 500 ended nearly flat on Wednesday as solid earnings from two major banks and a bounceback in Apple shares offset concerns about a lower forecast for global growth in 2013. Shares of Goldman Sachs (GS) hit their highest since May 2011 as earnings nearly tripled on increased revenue from dealmaking and lower compensation expenses.

JPMorgan Chase (JPM) said fourth-quarter net income jumped 53 percent and earnings for 2012 set a record. JPMorgan shares rose 1 percent to $46.82, while Goldman climbed 4.1 percent to $141.09. They were among the first big banks to report results and helped to lift estimates for S&P 500 corporate earnings slightly, to a 2.2 percent gain, Thomson Reuters data showed. Apple (AAPL) rebounded after three days of losses, helping the Nasdaq outperform the S&P 500 and Dow. Apple rose 4.2 percent to $506.09. It closed below $500 on Tuesday for the first time since February.

A slow economic recovery in developed nations is holding back the global economy, the World Bank said on Tuesday, as it sharply scaled back its forecast for world growth in 2013 to 2.4 percent from an earlier forecast of 3.0 percent. The Dow Jones industrial average (^DJI) was down 23.66 points, or 0.17 percent, at 13,511.23. The Standard & Poor's 500 Index (^GSPC) was up 0.29 points, or 0.02 percent, at 1,472.63. The Nasdaq Composite Index (^IXIC) was up 6.77 points, or 0.22 percent, at 3,117.54.

The biggest drag on the Dow was Boeing (BA), whose shares fell 3.4 percent to $74.34 on concerns about its new Dreamliner passenger jets. Japan's two leading airlines grounded their fleets of 787s after an emergency landing, adding to safety concerns triggered by a series of recent incidents. After the bell, shares of eBay (EBAY) were trading up 0.7 at $53.28, reversing an initial decline following the release of its results. Earlier in the day, U.S. economic data showed consumer prices were flat in December, pointing to muted inflation pressures that should give the Federal Reserve room to prop up the economy by staying on its ultra-easy monetary policy path. Other data showed U.S. homebuilder confidence in the market for single family homes held steady near seven year highs in January, suggesting the outlook for the housing market remained upbeat.

Volume was roughly 5.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion. Decliners outpaced advancers on the NYSE by nearly 8 to 7 and on the Nasdaq by almost 7 to 5.

Malaysia might be shielded from external market uncertainties at the moment as we still can expect robust GDP growth for this quarter. FKLI opened slightly higher this morning at 1,680 but short term direction is likely to remain negative based on technical analysis. Today’s Support and Resistance for January contract is located around 1,675 and 1,690  respectively.

FCPO Related News (Wed, Jan 16)

KUALA LUMPUR, Jan 16 (Reuters) - Malaysian palm oil futures rose to a more than one-week high on Wednesday on investor optimism a zero-duty tax structure will spur exports from the world's No.2 producer and help boost global demand for the tropical oil. The positive sentiment was also buoyed by seasonally slowing production which could help curb stockpiles that hit a new record of 2.63 million tonnes in December.

The Malaysian government announced on Tuesday that it will retain its crude palm oil export tax at zero percent for February, in an effort to give a competitive edge over top producer and biggest rival Indonesia. "Indonesia's crude palm oil is now pricier than Malaysian crude palm oil. So Malaysian exports will definitely pick up," said a trader with a foreign commodities brokerage.  "Most traders are trading on the forward view. Even though exports are not looking so good now, but with the overall drop in production, we are expecting stocks to be lower in February or March," the trader added.

By the midday break, the benchmark April contract on the Bursa Malaysia Derivatives Exchange had climbed 0.8 percent to 2,433 ringgit ($806) per tonne. Prices earlier touched 2,441 ringgit, the highest level seen since Jan. 7. Total traded volume stood at 15,373 lots of 25 tonnes each, higher than the usual 12,500 lots. Technical analysis showed that Malaysian palm oil may test a resistance of 2,449 ringgit per tonne, a break above which will lead to a further gain to 2,522 ringgit, said Reuters market analyst Wang Tao.

Weaker winter demand from Europe and China had taken a toll on palm oil exports, causing shipments to fall more than 20 percent in the first 15 days of January. Palm oil tends to solidify in cold temperatures. But with warmer weather on its way, traders expect demand to pick up in the coming weeks ahead. "Moving forward, it can only improve -- it will not go worse. The weather is getting warmer and you will see more imports going into China," the trader added.

Brent crude rose towards $111 a barrel on Wednesday on hopes of a revival in demand growth in the world's top oil consuming nation after U.S. retail sales beat forecasts and oil inventories there rose far less than what was expected.  U.S. soyoil for March delivery was almost flat in early Asian trade. The most active May soybean oil contract on the Dalian Commodity Exchange edged up 0.1 percent.         [Reuters]

Crude palm-oil futures on Malaysia’s derivatives exchange ended up Tuesday because of gains in CBOT soyoil and short covering after several days of decline. Further gains remain limited on record stockpiles and lower exports. The benchmark March contract at Bursa Malaysia Derivatives ended 1.2% higher at 2,399 ringgit a metric ton after moving in a MYR2,382-MYR2,413 range.  CBOT March soyoil was last trading 0.1% higher at 50.52 cents/lb at 1027 GMT. "Investors covered shorts mainly on [CBOT] soy movements," a trading executive at a Kuala Lumpur-based brokerage said.

Market sentiment also got a small boost from Jan. 1-15 export estimates by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. The export numbers fell by less than previously thought. Exports during the period fell 21% from the previous month to 570,510 tons, Intertek said, while SGS put the figure at 571,481 tons compared with an expected 24% fall to 550,000 tons. "Shipments to China remain weak but some are hoping for further improvements in the second half of January," a vegetable-oil exporter in Penang said. SGS and Intertek said Jan 1-15 exports to China fell 43% and 45% to 126,450 tons and 120,950 tons, respectively–a result of uncertainty over stricter quality-control rules for cooking-oil imports by No. 2 importer China. The rules came into effect Jan. 1. A visit by China’s food safety officials at the end of the month could shed some light, Malaysian officials said Monday. Open interest on the BMD was 173,608 lots, versus 177,332 lots Monday. One lot is equivalent to 25 tons. A total of 42,040 lots of CPO were traded versus 36,146 lots Monday.

Today’s Support and Resistance for benchmark April contract is located around 2,400 and 2,450 respectively.

FKLI Related News

U.S. stocks advanced, rebounding from earlier losses in the Standard & Poor’s 500 Index, as a rally in retail and transportation companies overshadowed concern about discussions on raising the debt ceiling. Consumer discretionary companies led the gains in the S&P 500 as data showed retail sales rose more than forecast in December.  The S&P 500 rose 0.1 percent to 1,472.34 at 4 p.m. New York time, after falling as much as 0.5 percent earlier. The Dow Jones Industrial Average added 27.57 points, or 0.2 percent, to 13,534.89. The Dow Jones Transportation Average gained 0.7 percent to a record 5,639.64.

About 5.8 billion shares changed hands on U.S. exchanges, or 5.7 percent below the three-month average, according to data compiled by Bloomberg. “The retail data is good news for economic expansion,” said Peter Jankovskis, who helps oversee $3 billion of assets as co-chief investment officer at Lisle, Illinois-based Oakbrook Investments LLC. He spoke in a telephone interview. “It’s encouraging. We have the earnings season going on, people are on wait-and-see mode. In addition, there’s a lot of rhetoric on the debt-ceiling front. Though it’s probably a bit early to start getting concerned about that.”  Retail sales rose more than forecast in December to end 2012 on a positive note, indicating Americans may be able to rise above Washington’s budget rancor to keep contributing to economic growth.

Manufacturing in the New York region contracted in January for the sixth straight month as the industry continued to face the effects of fiscal uncertainty in the U.S. and lackluster demand overseas.  With as little as a month until the U.S. runs out of money to pay its bills, President Barack Obama warned Republicans in Congress not to use the need for a debt-limit increase to force through new spending cuts. Obama insisted yesterday he won’t negotiate on raising the debt ceiling because the U.S. has no choice other than to pay for spending it has authorized. Many Republicans in Congress say a boost in borrowing authority must be linked to spending cuts.  

The Treasury Department has been using emergency measures since the end of December to prevent a breach of the $16.4 trillion debt limit. In a letter yesterday to House Speaker John Boehner, Treasury Secretary Timothy Geithner said the department expects to exhaust those measures “between mid-February and early March.” Investors also watched earnings reports. Almost 80 percent of the 30 S&P 500 companies which reported quarterly results beat analysts forecasts. Fourth-quarter profits at S&P 500 companies grew 2.5 percent, according to analysts’ estimates compiled by Bloomberg. That would be the second-slowest quarterly growth since 2009, the data show.

Three out of 10 groups in the S&P 500 retreated as phone and technology shares had the biggest losses. Apple, the world’s most valuable company lost 3.2 percent to $485.92. HP dropped 2.5 percent to $16.53. The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against declines in the S&P 500, rose 0.2 percent to 13.55. The gauge ended last week at the lowest level since 2007.            [Bloomberg]

FKLI opened slightly lower  this morning at 1,686.5. Despite gains in the U.S market on solid retail sales data, investors are still cautious on concern over the ongoing US fiscal problems and weak corporate earnings for the first quarter. Today’s Support and Resistance for January contract is located around 1,674 and 1,688 respectively.

FCPO Related News (Tues, Jan 15)

SINGAPORE, Jan 14 (Reuters) - Malaysian palm oil futures edged up on Monday, rebounding from the previous session's 3-week low, although gains were limited by concerns over weak demand and record-high stocks.

Prices on Friday slumped to their lowest since Dec. 21 as official data pointed to record stocks at 2.63 million tonnes in December, going against expectations of a slight drop. But traders are hoping inventories could soon fall due to the heavy rain now disrupting the harvest of a crop that is expected to decline due to seasonal factors. "The market is trying to make a comeback on the premise that production dropped over the last 10 days," said a trader with a foreign commodities brokerage in Malaysia. "However, demand is anaemic and we may have end stocks of around 2.7 million tonnes by end-January."

The benchmark March contract on the Bursa Malaysia Derivatives Exchange gained just 0.1 percent to close at 2,370 ringgit ($786) per tonne. Prices dropped to a low of 2,332 ringgit on Friday. Total traded volume stood at 36,146 lots of 25 tonnes each, higher than the usual 25,000 lots. Technical analysis shows palm oil is expected to retest support at 2,334 ringgit per tonne, as a downtrend from the Jan. 2 high of 2,524 ringgit has not been completed, said Reuters market analyst Wang Tao.

Malaysia will set the export tax for crude palm oil at zero percent in February, flat with January, a government minister said on Monday. An official announcement is expected on Tuesday. Traders are awaiting Malaysia's Jan. 1-15 exports data due to be released on Tuesday after a disappointing showing on the first ten days despite the zero percent export tax. Exports fell as much as 34 percent for the period from a month ago on seasonal factors and tougher Chinese curbs on imported edible oils, cargo surveyor data showed.

Malaysian crude palm oil production this year will rise marginally to 18.9 million tonnes, from 18.8 million tonnes in 2012 as yields improve, an industry regulator said on Monday. Crude rose above $111 a barrel on Monday as concern about supply resurfaced amid growing optimism over signs that the world's biggest economies are on their way to a steady recovery.

U.S. soyoil for March delivery edged up 1.3 percent in late Asian trade. The most active May soybean oil contract on the Dalian Commodity Exchange closed 0.1 percent lower.

Today’s Support and Resistance for benchmark March contract is located around 2,360 and 2,420 respectively.

FKLI Related News

NEW YORK, Jan 14 (Reuters) - The S&P 500 and Nasdaq ended lower on Monday as worries over demand for Apple products drove down its shares and investors braced for earnings disappointments. Running counter to that was Dell Inc's stock which jumped 13 percent to about a five-month high at $12.29 after Bloomberg reported the No. 3 personal computer maker is in talks with private equity firms to go private. Dell's gains offset some tech-sector weakness.

Tech heavyweight Apple lost 3.6 percent to $501.75 and was the biggest weight on both the S&P 500 and Nasdaq 100 indexes after reports the company has cut orders for LCD screens and other parts for the iPhone 5 this quarter due to weak demand. The stock hit a session low of $498.51, the first dip below $500 since Feb. 16.

The Dow Jones industrial average was up 18.89 points, or 0.14 percent, at 13,507.32. The Standard & Poor's 500 Index was down 1.37 points, or 0.09 percent, at 1,470.68. The Nasdaq Composite Index was down 8.13 points, or 0.26 percent, at 3,117.50. The Dow fared better than the other two indexes, helped in part by Hewlett-Packard shares, which rose 4.9 percent to $16.95. The stock, up early in the session after JPMorgan upgraded its rating on the shares and raised its price target to $21 from $15, added to gains following the Dell report.

Earnings reports are due this week from Goldman Sachs , Bank of America, Intel and General Electric, among other companies. Third-quarter reports ended with a gain of just 0.1 percent, the worst for an S&P 500 profit period in three years, according to Thomson Reuters data.

President Barack Obama warned Congress at a news conference on Monday that a refusal to raise the U.S. debt ceiling next month could mean a government shutdown and trigger economic chaos. S&P futures had little reaction to comments after the bell by Federal Reserve Chairman Ben Bernanke, who urged lawmakers to lift the country's borrowing limit to avoid a debt default.

Volume was roughly 5.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion. Decliners were about even with advancers on the NYSE while decliners outpaced advancers on the Nasdaq by about 12 to 11.

FKLI is unchanged this morning at 1,691.5, as investors are mostly on the sidelines amid lack of fresh leads to boost the market. Today’s Support and Resistance for January contract is located around 1,682 and 1,696  respectively.

FCPO Related News  (Mon, Jan 14)

Crude palm-oil futures on Malaysia’s derivatives exchange fell Friday and headed for a weekly decline of 4% as Malaysian export demand falls. The benchmark March contract at Bursa Malaysia Derivatives ended 0.9% lower at 2,366 ringgit a metric ton after falling as much as 2.3% to MYR2,332/ton.

The latest palm-oil export estimates by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. show a slump in shipments to big consumer China which reflect exporters’; reluctance to ship cargoes because of uncertainty about China’s new quality-control rules. China won’t accept imports of edible oils containing excessive peroxide or stearic acid from Tuesday, according to China’s Inspection and Quarantine Bureau.

Palm-oil inventory levels in December hit a high of 2.53 million tons. But analysts expect stocks to ease in the coming months as CPO output continues to decline during the January-March period as a result of seasonal factors. "The downside for CPO prices is relatively limited given parity to Brent crude prices which will help trigger demand for use in the energy sector," Alvin Tai, senior plantation analyst at Kuala Lumpur-based OSK Investment Bank, said.

Malaysia’s move to cut the tax on CPO exports and abolish a duty-free shipment quota from the beginning of January will have "some positive impact on [CPO] shipments," he said. "We should see the effects the next one to two months," he said. For the week ahead investors are likely to monitor export trends during the Jan 1-15 period to see whether a new tax rate has helped boost orders. Malaysia is scheduled to announce its February CPO export-tax rate on Tuesday.

Open interest on the BMD was 173,776 lots versus 170,416 lots Thursday. One lot is equivalent to 25 tons. A total of 45,433 lots of CPO were traded versus 50,625 lots Thursday.                                                [Dow Jones Newswire]

Today’s Support and Resistance for benchmark March contract is located around 2,350 and 2,420 respectively.

FKLI Related News

U.S. stocks rose for a second week, as the Standard & Poor’s 500 Index climbed to the highest level in five years, amid optimism about fourth-quarter corporate earnings and better-than-estimated data on Chinese exports. Bank of America Corp. slid 4 percent for the biggest drop in the Dow Jones Industrial Average. The S&P 500 advanced 0.4 percent to 1,472.05 for the week. The benchmark equity gauge closed at 1,472.12 on Jan. 10, the highest level since December 2007. The Dow added 53.22 points, or 0.4 percent, to 13,488.43. The Chicago Board Options Exchange Volatility Index, known as the VIX, fell 3.4 percent to 13.36, the lowest level since June 2007.  

Equities also advanced for the week as a report showed China’s overseas sales rose 14.1 percent in December from a year earlier, almost triple the 5 percent gain predicted. A separate report on the final day showed China’s inflation accelerated more than forecast to a seven-month high, a pickup that may limit room for easing to support an economic recovery.  The S&P 500 (SPX) posted the biggest gain in more than a year during the previous week as lawmakers passed a bill averting most of the more than $600 billion in spending cuts and tax increases, known as the fiscal cliff, and Labor Department figures showed payrolls rose last month. The benchmark index has rallied 8.8 percent from its November low as the Federal Reserve expanded its bond purchase program to boost the economy and optimism grew that Congress would reach a budget agreement.  

Hewlett-Packard Co., the largest maker of personal- computers and printers, surged 6.7 percent to $16.16 for the biggest gain in the Dow this week. American Express rallied 2.7 percent to $61.24. The biggest U.S. credit-card issuer by purchases said it will eliminate jobs, mostly in travel services, as consumers and businesses rely more on digital technology for bookings. Alcoa slumped 3.5 percent to $8.94 even as the largest U.S. aluminum producer reported fourth-quarter sales that exceeded analysts’ estimates after the company sold the commodity at a higher-than-expected average price.  Goldman Sachs Group Inc., JPMorgan Chase & Co. (JPM), Bank of America, Citigroup Inc. and Morgan Stanley are among the largest U.S. banks scheduled to report earnings next week. Earnings for financial companies in the S&P 500 grew 16 percent in the fourth-quarter, the second-biggest increase only behind telephone companies’ profits, according to data compiled by Bloomberg.

FKLI spot month opened higher this morning at 1,686. Today’s Support and Resistance for January contract is located around 1,680 and 1,694  respectively.