Americas Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. http://www.brecorder.com/markets/equity/americas.html Thu, 29 Jan 2015 12:09:15 +0000 SRA Framework 2.0 en-gb TSX drops as oil prices fall on supply concerns http://www.brecorder.com/markets/equity/americas/220547-tsx-drops-as-oil-prices-fall-on-supply-concerns.html http://www.brecorder.com/markets/equity/americas/220547-tsx-drops-as-oil-prices-fall-on-supply-concerns.html imageTORONTO: Canada's main stock index was lower on Wednesday as a decline in oil prices on concerns about a buildup in U.S. crude inventories hit shares of energy producers.

Investors were also awaiting a policy statement from the U.S. Federal Reserve later in the day following a two-day Fed meeting.

The market in recent days has had to process uncertainty over the Greek election results, as well as sluggish economic data from China and the United States.

The American Petroleum Institute said late on Tuesday that U.S. crude stocks shot up last week. That sent the price of U.S. crude oil down nearly 3 percent, and shares of oil and gas producers on the Toronto stock market were 2.3 percent lower on Wednesday.

"Oil is trying to settle at these levels, but it's still going to be choppy because it's come down so far, so fast," said Colin Cieszynski, chief market strategist at CMC Markets.

"There will be more uncertainty, at least in the near term, because we're getting a so many mixed signals. We're going to see a lot of turbulence for the next several months."

The Toronto Stock Exchange's S&P/TSX composite index was down 33.83 points, or 0.23 percent, at 14,800.05. Seven of the 10 main sectors on the index were higher.

In the energy sector, Canadian Natural Resources Ltd shed 1.9 percent to C$35.94, and Suncor Energy Inc gave back 1 percent to C$37.24.

The gold-mining sector fell with the bullion price. Goldcorp Inc was down 0.9 percent at C$30.27, and Barrick Gold Corp lost 0.4 percent to C$16.20.

In corporate news, AGF Management Ltd posted fourth-quarter earnings and revenue that missed expectations. Shares of the fund manager fell 2.9 percent to C$7.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Americas Wed, 28 Jan 2015 16:28:30 +0000
Brazil's Bovespa dragged down by Petrobras plunge http://www.brecorder.com/markets/equity/americas/220544-brazils-bovespa-dragged-down-by-petrobras-plunge.html http://www.brecorder.com/markets/equity/americas/220544-brazils-bovespa-dragged-down-by-petrobras-plunge.html imageSAO PAULO: Brazil's main stock index sank on Wednesday as shares of state-run oil company Petrobras plunged on concerns over potential losses stemming from a multibillion-dollar corruption scandal.

The benchmark Bovespa index dropped about 1.4 percent and was on track for its weakest closing level in over three weeks, while the broader MSCI Latin American stock index erased the previous session's gains.

Petrobras released unaudited third-quarter results on Wednesday after months of delays, though the statement left investors in the dark over the financial impact of the kickback scheme that investigators unveiled last year.

Preferred and common shares of Petroleo Brasileiro SA , as the company is formally known, both shed about 12 percent, their biggest loss in three months.

"It's quite frustrating," wrote analysts at Brazilian brokerage Planner in an investor note. "Everyone was waiting for these numbers in order to have some kind of measure of the losses and the value of the company's assets."

Investors began dumping the stock last year on concerns over the re-election of President Dilma Rousseff, whose government enacted fuel price policies meant to control inflation at the expense of the firm.

Now, uncertainty over the size of the potential corruption-related losses and Petrobras' repeated delays in publishing financial information have added a new scare.

Petrobras preferred shares are down about 60 percent since Sept. 1.

In currency markets, the Brazilian real gave up nearly all of the previous session's gains against the dollar, with some traders saying they will stay cautious until the U.S. Federal Reserve issues its next policy statement later in the day.

Colombia's peso strengthened slightly, while Chile's peso was little changed.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Americas Wed, 28 Jan 2015 16:24:32 +0000
US stocks rise on strong Apple, Boeing results http://www.brecorder.com/markets/equity/americas/220527-us-stocks-rise-on-strong-apple-boeing-results.html http://www.brecorder.com/markets/equity/americas/220527-us-stocks-rise-on-strong-apple-boeing-results.html imageNEW YORK: US stocks rose in early trade Wednesday following strong earnings reports from technology giant Apple and aerospace powerhouse Boeing.

About 25 minutes into trade, the Dow Jones Industrial Average stood at 17,462.76, up 75.55 points (0.43 percent).

The broad-based S&P 500 gained 11.39 (0.56 percent) to 2,040.94, while the tech-rich Nasdaq Composite Index jumped 49.78 (1.06 percent) to 4,731.28.

Apple bolted 8.0 percent higher after disclosing that first-quarter profit was a record $18 billion on booming sales of big-screen iPhone models, especially in China.

Dow member Boeing followed suit, rising 4.1 percent after reporting fourth-quarter profit increased 18.9 percent to $1.5 billion on strong commercial aircraft deliveries.

The robust earnings reversed negative momentum from Tuesday, when a stream of disappointing profit reports sent markets sharply lower.

Investors were eyeing the conclusion of a two-day Federal Reserve meeting Wednesday and the release of a policy statement that will be scrutinized for signals on when the central bank could raise interest rates.

Yahoo advanced 3.0 percent on news it will spin off its stake in Chinese Internet giant Alibaba in a move designed to avoid a hefty tax bill.

Alibaba fell 2.8 percent following an unusual rebuke from a Chinese regulator accusing the company of "illegal" actions on its multi-billion-dollar online shopping platform. The State Administration for Industry & Commerce castigated the company for poor oversight of its employees as well as merchants and products on its platforms.

Online game developer Electronic Arts surged 9.4 percent as it reported third-quarter profits of $142 million, up from a $308 million loss a year ago.

Bond prices rose. The yield on the 10-year US Treasury fell to 1.80 percent from 1.82 percent Tuesday, while the 30-year dropped to 2.37 percent from 2.40 percent. Bond prices and yields move inversely.

Copyright AFP (Agence France-Presse), 2015

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imad_kueconomist@yahoo.com (Imaduddin) Americas Wed, 28 Jan 2015 15:17:16 +0000
Wall St opens up on Apple, Boeing boost http://www.brecorder.com/markets/equity/americas/220506-wall-st-opens-up-on-apple-boeing-boost.html http://www.brecorder.com/markets/equity/americas/220506-wall-st-opens-up-on-apple-boeing-boost.html imageNEW YORK: US stocks rose at the open on Wednesday, boosted by earnings from Apple and Boeing, but focus could shift later in the day to the Federal Reserve's first two-day policy meeting of the year.

The Dow Jones industrial average rose 30.34 points, or 0.17 percent, to 17,417.55, the S&P 500 gained 11.14 points, or 0.55 percent, to 2,040.69 and the Nasdaq Composite added 60.55 points, or 1.29 percent, to 4,742.05.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Americas Wed, 28 Jan 2015 14:39:28 +0000
Earnings trigger Wall St selloff, data weighs further http://www.brecorder.com/markets/equity/americas/220294-earnings-trigger-wall-st-selloff-data-weighs-further.html http://www.brecorder.com/markets/equity/americas/220294-earnings-trigger-wall-st-selloff-data-weighs-further.html imageNEW YORK: US stocks tumbled on Tuesday, with Microsoft and Caterpillar shares down sharply after quarterly results, while an unexpected decline in durable goods orders also weighed on sentiment.

Energy shares on the S&P 500 were looking to post their sixth positive day in the last seven, boosted by a more than 2 percent rise in the price of crude futures.

Microsoft fell nearly 9 percent to $42.93 the day after the Dow component reported results. The main engine of its historic earnings power, selling Windows and Office to big businesses, is showing signs of waning. Shares of construction and mining equipment maker Caterpillar fell 7.4 percent to $79.69 after its net profit came in below market expectations.

Many multinational companies have posted disappointing results and forecasts, with the stronger dollar a common culprit.

Adding to earnings concerns, a gauge of US business investment plans unexpectedly fell in December, a potential sign that slowing global growth and falling crude oil prices were starting to have an impact on the economy.

On the other hand, consumer confidence posted its highest reading since August 2007. "US equities could come under pressure as investors ratchet down their growth estimates for the US economy," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin. "There was just too much hype about the US economy having risen into a new and higher growth channel. We're still stumbling along."

At 12:29 p.m. EST (1729 GMT) the Dow Jones industrial average fell 308.41 points, or 1.74 percent, to 17,370.29, the S&P 500 lost 24.05 points, or 1.17 percent, to 2,033.04 and the Nasdaq Composite dropped 72.29 points, or 1.52 percent, to 4,699.47.

Worries lingered over Greece's new anti-bailout government and its implications for the euro zone.

The leftist government that came to power in Athens following elections on Sunday looks set on a collision course with the country's creditors.

US-traded shares of the National Bank of Greece fell 12.9 percent to $1.35.

Facebook shares fell 1.9 percent to $76.02 after access to the world's largest social network and its Instagram photo-sharing site was blocked around the world for up to an hour on Tuesday.

The company said the reason was an internal fault and not an outside attack.

Procter & Gamble shares fell 3.6 percent to $86.37 after the world's largest household products maker reported a near 31 percent fall in quarterly profit, hurt by a stronger dollar.

Declining issues outnumbered advancing ones on the NYSE by 1,738 to 1,233, for a 1.41-to-1 ratio on the downside; on the Nasdaq, 1,641 issues fell and 976 advanced for a 1.68-to-1 ratio favoring decliners.

The benchmark S&P 500 index was posting 29 new 52-week highs and 10 new lows; the Nasdaq Composite was recording 37 new highs and 41 new lows.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Americas Tue, 27 Jan 2015 20:43:39 +0000
Brazil stocks drop on China data; Petrobras earnings eyed http://www.brecorder.com/markets/equity/americas/220201-brazil-stocks-drop-on-china-data;-petrobras-earnings-eyed.html http://www.brecorder.com/markets/equity/americas/220201-brazil-stocks-drop-on-china-data;-petrobras-earnings-eyed.html imageSAO PAULO: Brazil's benchmark Bovespa stock index fell the most in over a week on Tuesday following disappointing economic data from top trade partner China.

The broader MSCI Latin American stock index slipped for the third straight day, while most of the region's currencies edged higher following a weak US durable goods number.

Data on Tuesday showed China's factory profit grew at its weakest rate in two years in 2014 as economic growth slipped to a 24-year low.

China is a top market for Brazilian raw material exports such as iron-ore, soybeans and petroleum.

The data "ends up hurting commodities prices and so we're seeing the raw materials sector pressuring (the index)," said Luis Gustavo Pereira, an analyst with Guide Investimentos in Sao Paulo.

Shares of iron-ore miner Vale SA, which counts China as its biggest customer, were down nearly 5 percent.

Preferred shares of state-run oil producer Petroleo Brasileiro SA, known as Petrobras, fell about 3 percent. The company is expected to release unaudited third-quarter results after market close on Tuesday.

Investors have been cautious on the outlook for Petrobras given an ongoing corruption investigation at the firm. Local media estimate the company may take a charge of nearly $20 billion in the third quarter in relation to the scandal.

In currency markets, the Brazilian real strengthened about 0.6 percent, erasing the previous two sessions' losses. The real has not closed stronger than 2.5735 per dollar since Dec. 3.

Traders said the move came on the tail of weaker than expected durable goods data from the United States.

Disappointing data from the world's largest economy tends to boost riskier emerging market currencies because it reduces expectations that US interest rates could rise sooner than the market had previously forecast.

One exception is Mexico, which saw its peso weaken slightly. Mexico is a key supplier of durable goods to its northern neighbor, with many products manufactured in plants near the international border.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Americas Tue, 27 Jan 2015 17:03:33 +0000
Wall St tumbles with Microsoft, Caterpillar; data weighs http://www.brecorder.com/markets/equity/americas/220200-wall-st-tumbles-with-microsoft-caterpillar;-data-weighs.html http://www.brecorder.com/markets/equity/americas/220200-wall-st-tumbles-with-microsoft-caterpillar;-data-weighs.html imageNEW YORK: US stocks fell sharply on Tuesday, with Microsoft and Caterpillar shares tumbling after quarterly results, while an unexpected decline in durable goods orders also weighed on sentiment.

Microsoft fell 10 percent to $42.27 the day after the Dow component reported results. The main engine of its historic earnings power, selling Windows and Office to big businesses, is showing signs of waning.

Shares of construction and mining equipment maker Caterpillar fell 7.5 percent to $79.52 after its net profit came in below market expectations.

Many multinational companies have posted disappointing results and forecasts, with the stronger dollar a common culprit.

Adding to earnings concerns, a gauge of U.S. business investment plans unexpectedly fell in December, a potential sign that slowing global growth and falling crude oil prices were starting to have an impact on the economy.

On the other hand, consumer confidence posted its highest reading since August 2007.

"U.S. equities could come under pressure as investors ratchet down their growth estimates for the U.S. economy," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.

"There was just too much hype about the U.S. economy having risen into a new and higher growth channel. We're still stumbling along."

At 10:19 a.m. EST (1519 GMT) the Dow Jones industrial average fell 294.37 points, or 1.67 percent, to 17,384.33, the S&P 500 lost 27.05 points, or 1.31 percent, to 2,030.04 and the Nasdaq Composite dropped 81.82 points, or 1.71 percent, to 4,689.94.

Worries lingered over Greece's new anti-bailout government and its implications for the euro zone. The leftist government that came to power in Athens following elections on Sunday looks set on a collision course with the country's creditors. U.S.-traded shares of the National Bank of Greece fell 14.5 percent to $1.32.

Market participants were watching a snowstorm that appeared to have spared New York City but continues to pound parts of the U.S. Northeast. New York Stock Exchange and Nasdaq spokesmen said Tuesday was expected to be business as usual.

Facebook shares fell 1.6 percent to $76.28 after access to the world's largest social network and its Instagram photo-sharing site was blocked around the world for up to an hour on Tuesday. The company said the reason was an internal fault and not an outside attack.

Procter & Gamble shares fell 3.1 percent to $86.79 after the world's largest household products maker reported a near 31 percent fall in quarterly profit, hurt by a stronger dollar.

Declining issues outnumbered advancing ones on the NYSE by 2,059 to 848, for a 2.43-to-1 ratio; on the Nasdaq, 1,770 issues fell and 684 advanced for a 2.59-to-1 ratio favoring decliners.

The S&P 500 was posting 29 new 52-week highs and 10 new lows; the Nasdaq Composite was recording 24 new highs and 30 new lows.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Americas Tue, 27 Jan 2015 17:01:57 +0000
Dollar down on mixed US data ahead of FOMC decision http://www.brecorder.com/markets/equity/americas/220188-dollar-down-on-mixed-us-data-ahead-of-fomc-decision.html http://www.brecorder.com/markets/equity/americas/220188-dollar-down-on-mixed-us-data-ahead-of-fomc-decision.html imageNEW YORK: The US dollar fell on Tuesday with currency strategists pointing toward a surprise drop in U.S. durable goods orders that is feeding into speculation the Federal Reserve might hold off on raising interest rates longer than currently expected.

Investors have bid the dollar higher in anticipation that the Fed will be raising interest rates around mid-year as the U.S. economy recovers its growth momentum at the same time major central banks in Europe and Japan are loosening policies to spur activity.

Tuesday's non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, fell 0.6 percent in December after a similar drop in November.

"I think for the long dollar position that is in the market, investors do feel comfortable taking some profit after this data. Mostly it feeds into our expectation for Friday's GDP print. Given the durables data people are more wary of the GDP print and are lightening up their positions," said Richard Cochinos, head of Americas G10 FX strategy at Citi in New York.

The latest Reuters poll of advance fourth quarter gross domestic product report is for 3 percent growth.

Dollar losses were trimmed after a U.S. consumer confidence report for January came in at its highest level in more than seven years.

The data was released just as the U.S. Federal Reserve begins a two day meeting that finishes on Wednesday.

"The risk for the dollar is that the FOMC might sound a little more concerned with regard to the global economy, the impact of low energy prices on their inflation forecast, and the potential impact of the very strong dollar on the economy and the very low wage backdrop," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

"A slightly more cautious tone to the statement tomorrow would effectively push out the time line for an eventual rate hike and that has been one of the pillars of the dollar's rally," Esiner said.

The euro rose 1.51 percent to $1.14080, off the session high $1.14230 on the EBS trading platform. That pulls it further away from Monday's 11-year low of $1.1098 after voters in Greece elected a new anti-bailout government.

The dollar traded down 0.8 percent to 117.53 yen. The euro gained 0.59 percent to 133.92 yen. The euro climbed 1.25 percent to 1.02865 Swiss francs.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Americas Tue, 27 Jan 2015 16:48:24 +0000
US stocks tumble on weak earnings http://www.brecorder.com/markets/equity/americas/220185-us-stocks-tumble-on-weak-earnings.html http://www.brecorder.com/markets/equity/americas/220185-us-stocks-tumble-on-weak-earnings.html imageNEW YORK: The Dow fell more than 260 points in early trade Tuesday following several disappointing earnings reports from big companies and a surprising drop in durable goods orders.

About 30 minutes into trade, the Dow Jones Industrial Average stood at 17,414.63 down 264.07 points (1.49 percent).

The broad-based S&P 500 dropped 24.53 (1.19 percent) to 2,032.56, while the tech-rich Nasdaq Composite Index fell 77.34 (1.62 percent) to 4,694.43.

Investors pummelled Dow member Caterpillar (-7.2 percent) after the heavy equipment maker said fourth-quarter earnings fell by nearly a quarter due in part to a hit from lower oil prices. Microsoft was another big loser, falling 9.6 percent as profits declined 10 percent to $5.9 billion.

New orders for long-lasting industrial goods fell 3.4 percent in December, signalling some persistent weakness in the manufacturing sector, according to Commerce Department data.

Markets in Britain, France and Germany all dropped sharply as Greece's new government was on a collision course with creditors over plans to renegotiate its enormous bailout.

Investors were also gearing up for a two-day Federal Reserve meeting that concludes Wednesday. Investors will be looking for the Fed's commentary on how weak earnings and eurozone uncertainty affect the time-frame for raising interest rates.

Dow member Procter & Gamble shed 2.9 percent as second-quarter net income dropped 31 percent to $2.4 billion in part due to the strong dollar.

Pfizer, another Dow component, gained 1.4 percent as net income sank 52.1 percent to $1.2 billion. The results, however, bested forecasts from Wall Street analysts.

Mining giant Freeport-McMoRan plummeted 6.3 percent as it reported a $2.9 billion fourth-quarter loss, primarily due to a $3.4 billion charge on the value of oil properties. Lower metals prices also marred results.

Large banks were hit hard in the sell-off. Citigroup lost 1.5 percent, while Bank of America shed 1.8 percent.

In the tech sector, Oracle fell 1.8 percent and Intel sank 4.7 percent. Apple fell 1.6 percent ahead of its earnings announcement following the market close.

Bond prices gained. The yield on the 10-year US Treasury fell to 1.76 percent from 1.82 percent Monday, while the 30-year dropped to 2.34 percent from 2.40 percent. Bond prices and yields move inversely.

Copyright AFP (Agence France-Presse), 2015

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imad_kueconomist@yahoo.com (Imaduddin) Americas Tue, 27 Jan 2015 16:08:20 +0000
TSX opens lower on Greek concerns, mining weakness http://www.brecorder.com/markets/equity/americas/220160-tsx-opens-lower-on-greek-concerns-mining-weakness.html http://www.brecorder.com/markets/equity/americas/220160-tsx-opens-lower-on-greek-concerns-mining-weakness.html imageTORONTO: Canada's main stock index fell on Tuesday, hit by concerns about the Greek election results and weaker copper prices, which pulled mining shares lower.

The Toronto Stock Exchange's S&P/TSX composite index was down 105.95 points, or 0.72 percent, at 14,691.88 shortly after the open.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Americas Tue, 27 Jan 2015 15:13:40 +0000