Friday, September 17, 2010

World Market Pulse Daily - Market Indicators Friday Sept. 17, 2010

I: Market senti-meter representing 27 top markets of the world after close of Asian Markets




II: World Markets At A Glance


Asia-Pacific


Market sentimeter based on 10 key Asian markets

Index Close Change %Change

AORD – Australia 4685.10 35.10 0.75Up
NZ50 - New ZeaLand 3212.26 16.62 0.52Up
BSE - Bombay SENSEX India 19594.75 177.26 0.90Up
CNXN - S&P CNX NIFTY INDIA 5884.95 56.25 0.97Up

HKX - Hong Kong 30 index 1017.67
HSCEI - Hang Seng china enterprise 12171.19 169.78 1.41Up
HSI - Hang Seng 21970.86 279.41 1.27Up
JKSE-Jakarta Composite Index 3384.65 43.02 1.39Up
KOSPI - South Korea 1,827.35 15.50 0.85Up

NIKK - Nikkei Japan average index 9626.09 116.59 1.21Up
SETI - Thailand SETI index Thailand
SSEC - Shanghai Composite Index 2,598.69 -3.78 -0.15Down
STI - Singapore Strait times Index 3,076.37 9.26 0.30Up
TA100 - TelAviv 100 Israel 1087.75 -3.09 0.28Down
THDOW - Dow Jones Thailand 173.17 0.74 0.43Up
TWII - Taiwan Weighted 8,158.33 58.58 0.72Up



Europe-Russia



Market sentimeter based on 8 key European markets
Index Current Change %Change
(Prices At 2:00 PM CET)

AEX - Amsterdam Netherlands 336.27 1.64 0.49Up
ATX - ATX vienna index Austria 2525.77 15.34 0.61Up
CAC - France 3751.12 14.82 0.40Up
CH30 - SWISS CH30 Switzerland 6454.34 30.18 0.47Up
DAX – Germany 6290.09 40.44 0.65Up
EUR - EUROPE 100
XU100 - Istanbul Turkey TURKEY
FTSE - FTSE Uk 5584.39 44.25 0.80Up
IBEX - Bolsa Madrid IBEX 35 Spain
RTSI -Russian Trading System 1474.31 9.90 0.68Up
RTS index Russia

North & Latin America :


Market sentimeter based on NYSE, S&P500 & Nasdaq



Index Close Change %Change

BVSP - Brazil Bovespa 67662.997 -443.853 -0.65%Down
MERV - Argentina Mercado Valores
Index Argentina 2447.07
MXX -Mexico Bolsa IPC Index 33,046.69 11.31 0.03% Down
CDNX – Canada 1,650.34
Canada - S&P/Tsx Composite Index 12173.35 28.51 0.23% Up

DJX - Dow Jones 100 105.95
NDX - 100 Nasdaq 100 1948.11
INDU - Dow Jones Industrial Average 10594.83 22.1 0.21 UP
SPX - S&P 500 large cap index
JRS - JRS Nuveen Real estate fund 10.10
WLSH - WILSHIRE 5000 full cap index


Major Indices Close Change % Chg

NYSE Composite 7,169.48 -10.31 -0.14%
Nasdaq Compos. 2,303.25 +1.93 +0.08%
Dow Industrial 10,594.83 +22.10 +0.21%
AMEX Composite 1,987.14 -3.24 -0.16%
S&P 500 1,124.66 -0.41 -0.04%


III: World Market Indicators:


Dow Jones World Stock Index, SMA > 20-period 50-period

Market Breadth Close Change % Chg

VIX Volatility Index 21.72 -0.38 -1.72%
CPC Put/Call Ratio 0.82 -0.11 -11.83%
NYAD NYSE A-D Line -460.00 -637.00 -359.89%
NYSI NYSE McClellan Chart 670.79 +22.39 +3.45%
NYHL NYSE Highs-Lows 126.00 -1.00 -0.79%
NAAD Nasdaq A-D Line -648.00 -1,040.00 -265.31%
NASI Nasdaq McClellan Chart -179.65 +32.50 +15.32%
NAHL Nasdaq Highs-Lows 37.00 -13.00 -26.00%


Market Momentum:

Market advancing and declines issues


NYSE NASDAQ AMEX OTCBB

Advancing Issues 1,247 966 558 406
Declining Issues 1,827 1,792 1,006 683
Unchanged Issues 135 132 83 274


IV: Market Day To Come In Ny Exchanges:

Top Events Of The Day:

Time (ET) Report Period Consensus Previous
Forecast


8:30 am Consumer price index Aug. 0.3% 0.3%
8:30 am Core CPI Aug. 0.1% 0.1%
10 am Consumer sentiment Sept. 70.0 68.9
12 noon Household borrowing 2Q N/A -2.4%

This Week Earning Calendar

Monday, September 20

Before The Open Actual Consensus Yr Ago Yr/Yr Rev
Discover Financial Services DFS 0.33 1.07
Lennar LEN 0.05 -0.97


V: Latest Upgrades Or Downgrades By Top Analysts

+ Upgrades

Company Ticker Brokerage Firm Ratings Change Price Target

Ford Motor F Barclays Capital Equal Weight » Overweight 15 » 16
IDEX Corp IEX Robert W. Baird Neutral » Outperform 35 » 41
Medicis MRX Jefferies Hold » Buy 29 » 41
OpenTable OPEN Merriman Neutral » Buy
Regal-Beloit RBC Robert W. Baird Neutral » Outperform 78

- Downgrades

Company Ticker Brokerage Firm Ratings Change Price Target

Actuant ATU KeyBanc Capital Mkts Buy » Hold
Borg Warner BWA Barclays Capital Overweight » Equal Weight 53 » 50
Lear LEA Barclays Capital Overweight » Equal Weight 93 » 85
Sappi Limited SPP BMO Capital Outperform » Market Perform 5.75 » 5.50
Savient Pharma SVNT Oppenheimer Outperform » Perform



Future Projections For Today

Sector Out-performers:
1. Coal +2.31% 2. Education +1.25% 3. Gold +1.16%

Sector Under-performers:
1. Home builders -2.78% 2. Hospitals -1.85% 3. Disk Drives -1.50%

Top performers of today with potential for more bullishness in next day or two:

GNI , OPEN, SVNT, SINA , PLUS, CTL , MNRO, HMY, ABV, HDB

World markets are reaching an overbought state on very short term and the current bullish momentum may reverse in next 2 trading days.


Future,Earnings, Momentum,Indicators , Asian , European , North American,NYSE, Nasdaq, Dow Industrial, AMEX,SPY, QQQQ, IWM, EWZ, EWJ, FXI, EEM, GNI, OPEN, SVNT,SINA, PLUS, CTL, MNRO, HMY, ABV, HDB

Tuesday, September 14, 2010

China Investment Guide-I: The Rise And Coming Fall Of The Red Dragon

image There is no denying the fact the China has risen metaphorically like no other nation has in the recent past. The Chinese growth model has not only attained enormous success for the citizens and investors worldwide but has also been an envious state for many other developing countries that have literally failed to do anything with their moribund economies where as the Asian giant successfully managed to bring about a change in common mans life. China’s GDP has multiplied while exports have risen exponentially, so much so that the country has been labeled the factory of the world. But Change is the only thing that is constant in this world and same is true for the Chinese growth cycle. Whatever comes up goes down just as night gives way to day and the life gives way to death. The problem is that just about everyone wants to go to heaven but no one quite wants to die, just as everyone is talking about the China growth story but not many are actually able to understand the haze of uncertainty surrounding the Chinese economy and its growth story.
  • Even though China has attained enormous highs, yet the growth of 200 to 300% of past 2 decades has reached at a critical point where the growth has attained a peak and the only way forward is an eminent decline.
  • China's harsh reality is that after decades of double digit GDP growth, average household incomes still trail miles behind many emerging economies.
  • Not only is China marching towards the greatest bubble in history of mankind, the massive misallocation of wealth is also accelerating at an alarming speed. One doesn’t need to be an economic genius to understand the fact that the wealth gap epitomized by the Chinese economy and Real estate segment is dividing the Chinese society’s social fabric.

China's Society Divide And Rising Black Money:

A recent Credit Suisse-sponsored study by a top economic think-tank has revealed that China's richest citizens may hold as much as 9.3 trillion yuan ($1.4 trillion) of hidden assets. The report has confirmed fears that nearly two thirds of all the unreported income goes into the pockets of the richest 10 %, widening China's wealth gap alarmingly.

Another very important element of the Chinese growth story is the government-sponsored abuse of the country’s human resource, the largest in the world. China is the manufacturing base of the world with cost effective products but not many people seem to understand that China has cheap labor mainly because the government literally robs most of their hard earned money by printing trillions and trillions of Yuan that were used to finance infrastructure project and to maintain cheap labor through a cheap currency. Not only are the Chinese workforces fighting with their lives, majority of Chinese peasants are hand to mouth farm labor who have no other alternative but to work at any cost to survive or to sustain their families in rural areas. What’s more shocking is that the migrant workers are forced to commit suicides in order to get a raise, but with the growing high misallocation of wealth, a petty wage increase is unlikely to solve the problem.

China Manufacturing Sector:


There is no debate the Chinese factories have mastered the art of producing cheap goods but with most global markets being saturated; Chinese factory owners are offering their products below cost price just to sustain the factories. As the world markets are getting bit tired due to high unsold inventory, reducing desire to consume non-essential items and high import bills. All the above factors are collectively reaching a breaking point soon that would definitely deflate the China bubble.

Analysts feel that the popping of the Chinese bubble is expected to have a global impact across major sectors of world trade. The great Chinese buying boom of raw materials and storing them has created big market bubbles in shipping, freight, raw material markets. If the factories are not able to sell their products, all the buying revolution is destined to slow down and thus prices of raw materials come to more realistic levels with global repercussions.


Environmental Damages: The Chinese industrial base is causing distress to urban landscape with heavy pollution, smog and extremely foul air with industrial residuals entering into water base, air and general environment causing extreme strain on Chinese Eco system. The average concentration of particulates in city air during 2008, for example, was six times the ideal standard recommended by the World Health Organization . The Chinese economy may be witnessed a definite boom but at what costs? Perhaps, the Chinese economy revolution has done more harm to the environment in the last 15 years what Europe possibly did in 150 years or USA in the last 75 years.

  • China's coal consumption jumped more than 7.6% last year, boosted in large part by increased demand for energy from smokestack industries.
  • Sixteen of the 20 worst cities in the world for air pollution are in China; acid rain falls on 30% of the country; and more than a quarter of the land is subject to desertification, an area that increases by 2,000 sq km every year.
  • The World Bank estimates that environmental degradation already shaves China's annual GDP growth by about 7% due to lost productivity from sick workers and wasted resources.

Chinese Stock Markets: As the world fought the global financial crisis, China was busy boosting government spending on infrastructure and social welfare projects, engineering a lending boom and re-pegged its currency to the U.S. dollar to support exports in response to the fallout of the global financial crisis. The measures might be effective in the short term with China's economic growth likely to exceed 9 percent in 2010, but have surely aggravated the imbalances that are at the heart of China's development story. The Shanghai composite index has been the worst performer in Asia this year. China's growth model is based on government-led investment and foreign enterprise-led export. As exports grew in the past, the government channeled income into investment to support more export growth. Now that the global economy is weak and China's exports are not coming back to earlier attained highs, there is not much income growth to support investment growth.


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About World Market Pulse

An unbiased review of world markets. Review of current market scene, news, events and forecasting for the days to come.
Our focus is on prominent emerging markets, major world markets and national financial centers of big industrialized nations.

There are many markets that have their own personality and they do not necessarily follow the United States Financial markets. We can post news, views and analysis and forecasts for specific market areas to enhance value for your portfolios. If you are based outside the country of interest, you could participate in the world markets by investing in Exchange traded funds about we would be discussing and providing ample information.