Stock Market dan Currency Highlight at 04:38 ET (09:38 GMT)
>From Source : http://marketcall.net/2011/11/stock-market-dan-currency-highlight-at-043\ 8-et-0938-gmt/ <http://marketcall.net/2011/11/stock-market-dan-currency-highlight-at-04\ 38-et-0938-gmt/> * UK October Retail sales Forecast -0.2% On Mo; 0.0% On Year * UK October Retail Sales +0.6% On Month; +0.9% On Year * Riksbank : Fin Stability Policy And Monetary Policy Are Separate * Riksbank : House Prices Not Target Variable For Monetary Policy * Fitch Assigns Russian Standard Bank RUB5bn Bonds Final `B+' Rating Hong Kong August October Jobless Rate At 3.3% In Line Hong Kong's unemployment rate rose to 3.3% in the August-October period from 3.2% in the July-September period, in-line with the 3.3% median forecast of seven economists polled by Dow Jones Newswires. Economists say the uncertain global outlook prompted employers to hold back on hiring and the jobless rate may rise more in coming quarters. "The uptrend of jobless rate has begun and it is likely to see a sharper rise in the first quarter next year amid the weakening local economy amid the global slowdown," Daiwa Capital Markets senior economist Kevin Lai says, adding he expects the jobless rate may rise as high as 4% in 1Q of 2012. Malaysian Shares End Down 0.8% ; 1450 Support Tipped Malaysian shares close 0.8% lower at 1465.47 in heavy volume amid concerns that the European debt crisis may spread; the benchmark index declines more after the weak performance of European shares, with 20 out of 30 component stocks posting losses. "Sentiment essentially got worse after the European markets opened and investors took it as a cue to sell," says a local dealer; "at this moment, we're seeing more downside risk rather than upside." The KLCI may retreat towards its immediate support of 1450 without new positive leads, he adds. Market breadth ends with 377 losers and 344 gainers after 1.59 billion shares changed hands. Among losers, CIMB Group (1023.KU) and IOI Corp (1961.KU) both end down 2.7% at MYR6.87 and MYR5.09 respectively while Genting (3182.KU) is down 1.8% at MYR10.68. Among gainers, Public Bank (1295.KU) closes up 0.6% at MYR12.68 and Maxis (6012.KU) is 0.2% higher at MYR5.35. Hungary Bond Sales Eyed After Last One Was Poor Hungary's bond sale Thursday is eyed after a poor outcome last time, says ICAP. "At the previous two bond auctions the Government Debt Management Agency cut the issued amount on poor demand, and recent T-bill auctions also had difficulties," says ICAP. However, Tuesday's sale of 3-month T-bills in Hungary attracted decent demand. Today's auction follows tenders in Poland and the Czech Republic Wednesday, which won "fairly decent demand." Hungary will issue HUF38 billion in 2014, 2017 and 2022-dated government bonds. Auction results are due at 1030 GMT. China Aluminum Smelters Mull Capacity Closures Some aluminum smelters in China's Henan and Hubei provinces are preparing to suspend capacity due to falling domestic prices, a Beijing-based analyst says. "Get ready for some capacity closures in China," the analyst says, adding that he expects smelters to suspend output at SHFE prices around CNY15,000 a metric ton. Chinese smelters' cost of production is around CNY16,000/ton and costs have been rising in recent weeks due to climbing Chinese power prices. SHFE benchmark January aluminum settled down CNY25, or 0.2%, at CNY16,130/ton Thursday, 3.3% lower than a month ago. Prices have dropped due to continuing macroeconomic concerns over the effect of the euro-zone debt crisis on base metals demand. UK Takes Loss In Sale Of Northern Rock, Symbol Of Financial Crisis The U.K. government Thursday said it will sell Northern Rock PLC to Virgin Money for GBP747 million cash, marking a major loss on its investment in the mortgage lender that became a symbol of the financial crisis when its near-collapse sparked a run on the bank four years ago. U.K. Financial Investments Ltd., the government body that managed the holding, said it could receive as much as GBP1 billion over time through a further GBP150 million in Northern Rock bonds it will hold, and a promise of additional money if the bank is sold or floated for a profit within the next five years. Another GBP50 million might also be paid to the government when the sale completes next year, depending on the bank's net asset value at the time. The purchase is a coup for Virgin Money, which had tried to buy Northern Rock before it was nationalized in February 2008 and restructured into a smaller bank, and which is trying to gain a foothold in a U.K. retail banking sector dominated by just five major banks. The government has invested around GBP1.4 billion in equity in Northern Rock since taking it over, but had been resigned to making a loss on the bank because of the costs involved in restructuring it and preparing it for the sale. A larger "bad bank" holding the bulk of the original Northern Rock's mortgage loans is still owned by the government. Chancellor of the Exchequer George Osborne said "it's the best deal for British taxpayers" and that the sale is part of the longer-term recovery of the U.K. economy and its banking system USD/IDR Higher 9000 9,070 Band Tipped Traders The USD/IDR climbs to 9,040 from IDR8,995 late Wednesday, but is off an intraday high at 9,065, as growing concerns over European events dampened sentiment in the local currency, traders say. Suspected "moderate dollar-selling by the central bank pulled down the dollar from its highs but failed to drive the rupiah back to 9,000," say three traders. A trader at a local bank says that healthy dollar bids prevented the dollar from falling more. Traders tip the pair in a 9,000-9,070 range Friday India Swaps Lower 1-Year India's front-end swaps fall after the RBI's announcement late Wednesday that it will buy back bonds worth INR100 billion next week to ease liquidity conditions, while the back-end tracks falling government bond yields. The one-year OIS are at 8.08%/8.11% from 08.13%/08.17% late Wednesday, while the five-year OIS are at 7.25%/7.28% vs 7.31%/07.33%. However, the announced round of open market operations is unlikely to ease liquidity enough to increase receiving interest at the short-end unless there are more buybacks, says a dealer with a private bank, who tips the 1-year OIS in a 8.05%-8.15% short-term range. Barclays Capital says a section of the market was expecting a cut in banks' cash reserve requirement, which would have had a bigger impact on liquidity, and the RBI's buyback announcement should reduce those expectations and push up the one-year OIS Source : http://marketcall.net/2011/11/stock-market-dan-currency-highlight-at-043\ 8-et-0938-gmt/ <http://marketcall.net/2011/11/stock-market-dan-currency-highlight-at-04\ 38-et-0938-gmt/>
