Why the euro could fall even further

It's been a one-way euro trip lower. The common currency has fallen every day this week, and is now near the lowest levels in 12 years.

Now, currency traders are keenly watching American economic data, as better news about the economy could lead the euro drop to intensify.

It all comes down to expectations about the Federal Reserve's next move. Most market participants believe the Fed will raise short-term rate targets this year. That should help the US dollar and hurt the euro, as it means that holding dollars will produce greater returns than holding euros, increasing demand for the greenback.

Expectations about a June Fed move have been tamped down due to a bevy of soft economic readings, most conspicuously the March jobs number. But this week, the Fed minutes and hawkish words from William Dudley have told investors that a June hike is still on the table, according to Boris Schlossberg of BK Asset Management.

Dudley, the generally dovish New York Fed president, told Reuters on Wednesday that depending on how the data develops, a June move could be "still in play."

Read More: American stocks are the world's worst this year

In the week ahead, Schlossberg says the biggest data point he will watch is Tuesday's retail sales report. If it indicates that "the US consumer finally started to spend, then dollar bulls run wild, and we may see 1.0500 break" on the euro, which is currently a bit below 1.0600 per dollar.

That's because better data could serve to convince traders that the much-awaited Fed move will come sooner than previously anticipated.

However, some traders say the move is overdone.

"This short-term move is technical, so I expect to see the euro bounce and the dollar pull back off of the recent move," said David Seaburg, head of equity sales trading with Cowen and Co.

14.02 | 0 komentar | Read More

Gold regains Rs 27K level on global cues

Besides, increased buying by jewellers to meet wedding season demand helped the precious metal to recapture the crucial level. Silver also advanced by Rs 150 at Rs 36,900 per kg on increased offtake by industrial units and coin makers.

Gold prices rose for the second straight day and reclaimed the psychologically important Rs 27,000-mark, surging by Rs 280 to trade at Rs 27,080 per 10 grams at the bullion market on Saturday amid a firming global trend.

Besides, increased buying by jewellers to meet wedding season demand helped the precious metal to recapture the crucial level. Silver also advanced by Rs 150 at Rs 36,900 per kg on increased offtake by industrial units and coin makers.

Bullion traders said besides a firming trend overseas, increased buying by jewellers mainly led to the rise in gold prices.

Gold in New York, which normally sets price trend on the domestic front, shot up by 1.16 percent to USD 1,207.30 an ounce and silver by 2.07 percent to USD 16.49 an ounce in yesterday's trade.

In the national capital, gold of 99.9 and 99.5 percent purity rose by Rs 280 each to Rs 27,080 and Rs 26,930 per 10 grams, respectively.

It had gained Rs 50 yesterday. However, Sovereign remained flat at Rs 23,700 per piece of eight grams in scattered deals. In a similar fashion, silver ready rose further by Rs 150 at Rs 36,900 per kg and weekly-based delivery by Rs 310 at Rs 36,710 per kg.

On the other hand, silver coins, however, traded at last level of Rs 55,000 for buying and Rs 56,000 for selling of 100 pieces.

14.02 | 0 komentar | Read More

Airbus supports Modi's 'Make in India' initiative

In India, Airbus Group already operates two engineering centres - one focused on civil aviation and the other one defence - besides, a research and technology (R&T) centre which together employ over 400 highly qualified people.

Expressing support to 'Make in India' initiative, aircraft manufacturer Airbus on Saturday said it is ready to manufacture in India, as Prime Minister Narendra Modi visited its facility here.

Modi took the tour of the facility where planes are manufactured. He was given a briefing by officials on the functioning.

Airbus Group CEO Tom Enders, who received the Indian leader, said: "We are honoured to host Prime Minister Modi in Toulouse and convey to him our desire to forge a stronger industrial bond with India. India already takes a centre-stage role in our international activities and we want to even increase its contribution to our products".

"We support Prime Minister Modi's 'Make in India' call and we are ready to manufacture in India, for India and the world," he added.

In India, Airbus Group already operates two engineering centres - one focused on civil aviation and the other one defence - besides, a research and technology (R&T) centre which together employ over 400 highly qualified people.

The group's senior representative conveyed their decision to expand these centres so that they can take on comprehensive design responsibilities for future Airbus group programmes. 

14.02 | 0 komentar | Read More

No country should provide shelter to terrorists: Modi

On a day Mumbai attack mastermind Zaki-ur-Rehman Lakhvi was released, Prime Minister Narendra Modi today gave a veiled message to Pakistan, saying no country should provide shelter to terrorists but should punish them.

"There is a need for global action to deal with terrorism. All nations should commit that they will not provide shelter to terrorists but punish them," Modi said at a joint press interaction with French President Francois Hollande after their talks here.

Hollande said he understands anger in India over the release of a person who is responsible for such a reprehensible act, a reference to Lakhvi who was behind the attack in Mumbai in November 2008 that claimed 166 lives.

Modi and Hollande discussed the issue of terrorism in the context of recent attack in Paris and release of Lakhvi and decided to intensify cooperation against the menace. "The world is facing many challenges.

There is an upheaval in the world and all are affected...Terror is spreading in new forms in various countries," the Prime Minister said. France suffered in Paris when terrorists struck here in January and understands India's "pain" over terrorism, he said.

"They agreed that India and France must intensify their cooperation within the framework of JWG on Counter-Terrorism, including on information and intelligence sharing on terror networks and work together to share experiences on dealing with the growing phenomenon of radicalisation," a joint statement said after Modi and Hollande held wide-ranging talks.

"They asked officials on both sides to schedule the next meeting of the JWG on Counter-Terrorism at the earliest," it said.

The two countries also agreed to commence bilateral dialogue to discuss ways and means of enhancing their cooperation in the maritime domain, in particular in the Indian Ocean Region (IOR).

"India welcomes closer engagement of France in the affairs of the Indian Ocean Rim Association and will continue to work closely with France in realisation of the objectives enshrined in the Charter of the Association," the statement said.

"The two leaders noted with satisfaction the holding of second round of the Cyber Dialogue on 17 March 2015 in New Delhi, which outlined new areas of cooperation between France and India in the field of cyber security," it said.

14.03 | 0 komentar | Read More

Wall Street week ahead: US stocks look to extend breakout

US stocks are poised for more upward momentum even as uncertainty over oil prices and Greek debt negotiations keeps the market on tenterhooks, analysts say.

Strong fourth-quarter US company earnings and signs of an overall improving economy, alongside what appears to be the start of a bottoming in crude oil prices, have given equities support.

After starting 2015 with its sharpest monthly drop in a year and a spike in volatility, the benchmark S&P 500 .SPX hit an intraday record on Friday while the Dow Jones Industrial Average .DJI reached its highest point so far this year.

As "stocks have found a footing, people aren't as afraid of the potential negative" stemming from recent instability in oil prices and Greece, said Wayne Kaufman, chief market analyst at Phoenix Financial Services in New York.

"That's allowed stocks to start breaking out of the channel that they've been stuck in since the beginning of the year," he said.

Volatility seems to abating. The CBOE Market Volatility Index .VIX, Wall Street's fear gauge, oscillated between 15 and 24 for most of 2015, rising over its historical mean of 20 during 15 of the year's 30 trading days so far.

Its 20-day moving average hit its highest since mid-2012 earlier this month.

But on Friday, the VIX fell to its lowest level this year, briefly trading below 15. That, together with a rising market, could be a promising sign.

"Market breadth, while it hasn't been wonderful, has been positive," said Phoenix Financial's Kaufman. The S&P 500 breaking above its 2,064 level earlier this month was another bullish technical sign, he said.

CONSUMERS, GREECE COULD ADD SUPPORT

With the bulk of US earnings season already in the bag, and positive on the whole, analysts are looking ahead to next week when consumer giant Wal-Mart Stores Inc (WMT.N) is scheduled to report fourth-quarter results.

"So far we're pretty pleased with the reports," said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco.

Of the 391 S&P 500 companies that have reported earnings, about 71.1 percent have topped profit expectations, above the historical average, Thomson Reuters data show.

Wal-Mart is likely to benefit from lower gas prices, which could translate into more consumer spending. At the same time, its global reach could leave it exposed to the negative impact of a stronger US dollar.

As stocks hit new highs, market participants will be paying close attention to developments in Greece - which, alongside oil prices, have been at the root of the volatility seen in the market this year.

Greece's new leftist government and euro zone finance ministers failed to agree this week on the next step for the country's bailout, leaving negotiations on the table for next week as they inch closer to a February 28 deadline. The Greek government promised to do "whatever we can" to secure a deal with international creditors.

While US exposure to Greek debt is "pretty minor," uncertainty over the situation and the impact on broader markets adds to volatility, according to Charles Lieberman, chief investment officer of Advisors Capital Management LLC in New Jersey.

"It's more in the nature of psychology than real substance," he said.

14.03 | 0 komentar | Read More

Watch who wins IIT Delhi’s Aarambh 2015

Young Turks brings all the action from the IIT-Delhi B-Plan Contest Aarabh 2015, organized by the department of management studies. Six B-Plans were shortlisted for the final round and Young Turks was there for all the action.

Young Turks brings all the action from the IIT-Delhi B-Plan Contest Aarabh 2015, organized by the department of management studies. Six B-Plans were shortlisted for the final round and Young Turks was there for all the action.

Watch accompanying video for more...

14.03 | 0 komentar | Read More

SBI up 1.5%; Barclays ups target but cuts EPS estimates

Shares of State Bank of India gained 1.5 percent intraday Friday after brokerage Barclays raised target price to Rs 353 apiece from Rs 346, citing strong performance saving accounts and credit cards.

Moneycontrol Bureau

Shares of  State Bank of India (SBI) gained 1.5 percent intraday Friday after brokerage Barclays raised target price to Rs 353 apiece from Rs 346, citing strong performance saving accounts and credit cards.

According to the brokerage, SBI is the only PSU bank to have gained saving accounts share over the last eight years and also only PSU bank with a significant credit cards business (11 percent share of spends) with customer spending patterns similar to private banks.

Barclays believes the country's largest lender has better staff productivity trends than other PSU banks. The key reason is its success in migrating transactions to alternative channels, it said.

SBIs alternative channel transaction volumes are 1.5 times larger than the other PSU banks combined, even though the other PSUs have twice the assets/CASA. SBI is the largest player in the 3 key alternative channels – ATMs, electronic and point-of-sales terminals and is growing rapidly in each.

Brokerage said SBI benefits from the government's new capital allocation approach and has a less capital intensive balance sheet.

However, the brokerage cut its earnings per share (EPS) for FY15 and FY16 by 1 percent and 6 percent, respectively as slower revenue growth and marginally higher provisions offset lower operating expenses.

According to the note, revenue pick-up would be greater than cost increases if loan growth picked up faster.

Key risk to its overweight rating is lumpy credit events of the bank, particularly in the steel and infra space. SBI's large corporate and infra exposures have grown rapidly since FY13. Further SBI has high steel exposures. However, the stock of un-provisioned problem assets at SBI is lower," it explained.

At 11:51 hours IST, the scrip of State Bank of India was quoting at Rs 284.55, up Rs 4.10, or 1.46 percent on the BSE.

Posted by Sunil Shankar Matkar

14.02 | 0 komentar | Read More

Hold NALCO, advises Ashish Chaturmohta

Ashish Chaturmohta - Head Technicals & Derivative Research at Fortune Group recommends holding National Aluminium Company as the stock may touch Rs 65-67 in next 2 months.

Ashish Chaturmohta - Head Technicals & Derivative Research at Fortune Group told CNBC-TV18, "One can hold on to National Aluminium Company  (NALCO) because already we have seen a very steep correction in the stock in last couple of months from almost Rs 68-69 to around Rs 38-39 kind of level. The stock has formed a very strong base around Rs 40-41 kind of levels. So clearly till it holds above this Rs 41-42 levels for next couple of days then there can be a good upside in the stock."

"May be in the next 2-3 months one may expect a target of around Rs 58-60 kind of levels and still if someone continues to hold it then even NALCO has the potential to cross Rs 65-67 but around those levels, I will suggest to book profits," he added.

Disclosure: Analyst does not have any holdings in the stock nor he has recommended the stock to his clients.

14.02 | 0 komentar | Read More

Richie Benaud passes away at the age of 84

Former Australia captain Richie Benaud, the celebrated 'voice of cricket' in the commentary box, has died at the age of 84 after battling skin cancer.

A giant figure in the game both on and off the field, Benaud died peacefully in his sleep in a Sydney hospice late on Thursday, his employer Channel Nine reported, citing family.

"Richie Benaud's passing has robbed us not only of a national treasure but a lovely man," Nine Network CEO David Gyngell said in a statement.

"Richie earned the profound and lasting respect of everyone across the world of cricket and beyond. First as an outstanding player and captain, then as an incomparable commentator and through it all, as a wonderful human being."

Benaud revealed in November he was fighting a skin cancer on his head and his public appearances had become increasingly rare in recent years.

After starting his career as a leg-spinning allrounder, Benaud never lost a series as captain and led the side to three successive Ashes series victories in the 1950s and 1960s.

He played 63 Tests for his country and was the first player to score 2000 Test runs and take 200 Test wickets.

A former newspaper journalist, he would then carve out a 40-year career behind the microphone, his measured style and distinctive voice marking him as one of the game's finest analysts.

Known simply as "Richie" to cricket-lovers world-wide, Benaud would also play an instrumental role in the World Series Cricket revolution.

His recruitment by Australian media tycoon Kerry Packer to call World Series games lent respectability to the breakaway professional circuit which would ultimately change the game.

Tributes poured in from former players, celebrities and politicians.

"There would hardly be an Australian over the last 40 years who hasn't listened to Richie Benaud," Australia Prime Minister Tony Abbott told ABC radio, describing him as a very effective cricketer and great personality.

"He certainly will be very, very much missed."

Australia Test captain Michael Clarke said it was a "really sad day."

"I think that's why he's such an idol to so many current cricketers because he's been such a gentlemen on the field, an amazing player, and a lot of current players probably don't realise how good a player he was," Clarke told the Today show on Channel Nine.

14.02 | 0 komentar | Read More

GBPINR likely to trade on positive note: Sushil Finance

Accordint to Sushil Finance, GBPINR is likely to trade on the positive note on the back of upcoming May general election.

Sushil Finance's report on rupee

GBPINR

Sterling rose on Wednesday on talk that foreign bids for two major British firms would bolster demand for the pound, while activity in the options market showed investors were busy hedging against sharp swings before a May general election.

Outlook

We expect GBPINR is likely to trade on the positive note on the back of upcoming May general election

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Accordint to Sushil Finance, GBPINR is likely to trade on the positive note on the back of upcoming May general election

To read the full report click here

14.02 | 0 komentar | Read More