Golden Fibonacci

Nov. 30 (Bloomberg) — The euro and the Australian dollar rose against the greenback and the yen after the United Arab Emirates’ central bank said it “stands behind” the country’s banks, easing concerns about a possible default by Dubai World.

The U.S. dollar pared earlier gains against Japan’s currency after the Mainichi newspaper reported Finance Minister Hirohisa Fujii as saying the government won’t intervene to weaken the yen. The euro gained for the first time in three days after the Abu Dhabi-based central bank of the U.A.E. said lenders will be able to borrow using a special facility tied to their current accounts.

“The market is willing to assume that there will be no actual default in Dubai,” said Sean Callow, a strategist at Westpac Banking Corp. in Sydney. “We’re likely to get back to what everybody is most comfortable with, which is selling U.S. dollars.” Ream more »

Nov. 26 (Bloomberg) — Most Asian stocks rose, led by commodity producers after oil and metal prices climbed. Japanese automakers and electronic companies declined as the U.S. dollar traded close to a 14-year low against the yen.

BHP Billiton Ltd., the world’s largest mining company, added 1 percent in Sydney as copper rose to a 14-month high in New York yesterday. Woodside Petroleum Ltd. advanced 1.2 percent after crude oil touched $78 a barrel. Honda Motor Co., a carmaker that gets 47 percent of its sales in North America, lost 1.8 percent. Sony Corp., the maker of the PlayStation 3 game machine, fell 1.2 percent.

“The improved economic climate is bolstering demand for commodities,” said Mitsushige Akino, who oversees the equivalent of $450 million in Tokyo at Ichiyoshi Investment Management Co. “The strong yen will curb a further rebound in corporate earnings and weigh on investor sentiment.” Ream more »

Nov. 25 (Bloomberg) — Japan’s exports fell at the slowest pace in a year in October as stimulus spending by governments worldwide boosted demand, sustaining the nation’s recovery from its deepest postwar recession.

Shipments abroad dropped 23.2 percent from a year earlier, compared with a 30.6 percent decline in September, the Finance Ministry said today in Tokyo. The median estimate of 18 economists surveyed by Bloomberg was for a 26.8 percent drop.

Renewed demand from emerging nations including China is spurring sales for Japanese manufacturers from Honda Motor Co. to Hitachi Construction Machinery Co. Exports helped Japan’s economy expanded at the fastest pace in more than two years in the third quarter, even as prices of goods declined and the yen gained 7.4 percent against the dollar. Ream more »

Nov. 20 (Bloomberg) — Asian stocks fell, dragging the MSCI Asia Pacific Index to its longest losing streak in more than four months, after Merrill Lynch & Co. cut its outlook on the global semiconductor industry and commodities retreated.

Advantest Corp., the world’s biggest maker of memory-chip testers, lost 2.6 percent in Tokyo. Sony Corp., the maker of the PlayStation 3 game machine, slid 2.8 percent after pushing back its profitability targets by two years. BHP Billiton Ltd., the world’s biggest mining company, slid 1.6 percent, snapping a four-day advance, after oil and metal prices fell.

“It seems investors are rushing to sell off stocks,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. “Since sentiment is bad, any news could drag shares lower.”

The MSCI Asia Pacific Index fell 0.3 percent to 117.14 as of 10:02 a.m. in Tokyo. The gauge is headed for a fourth day of declines, the longest losing streak since July 8. The index has dropped 0.9 percent this week. Ream more »

Nov. 17 (Bloomberg) — Goldman Sachs Group Inc., under fire in Washington for setting aside billions of dollars for bonuses a year after getting a taxpayer bailout, said it’s teaming up with Warren Buffett to provide assistance to 10,000 small businesses in the U.S.

The $500 million charitable effort coincides with one of the Obama administration’s top economic priorities: spurring hiring at smaller companies. The initiative aims to provide assistance — ranging from counseling to obtaining funding — to 10,000 businesses. Buffett’s Berkshire Hathaway Inc. is the largest shareholder in New York-based Goldman Sachs.

Goldman Sachs, the most profitable securities firm in Wall Street history, is trying to dispel criticism from lawmakers and pundits who portray the company as the greedy face of a financial industry whose excessive risk-taking fueled the credit crisis. Unlike competitors that make home loans and provide small-business credit lines, more than 90 percent of Goldman Sachs’s pretax earnings this year came from trading and principal investments. Ream more »

Nov. 17 (Bloomberg) — Asian stocks rose, led by technology and mining companies, after a report showed retail sales rebounded in the U.S. and commodity prices climbed.

Canon Inc. advanced 2.4 percent in Tokyo, after the company agreed to buy Oce NV, the world’s largest maker of wide-format printers. Those of Mitsubishi Corp., Japan’s biggest commodities trader, gained 1.8 percent after oil and metal prices climbed. Alumina Ltd., an aluminum producer, added 3.4 percent in Sydney.

“Consumption has been solid,” said Kazuhiro Takahashi, a general manager at Daiwa Securities SMBC Co. in Tokyo. “This will prompt hopes for the Christmas sales season.” Ream more »

Nov. 16 (Bloomberg) — The euro rose for a second day against the dollar as signs the worldwide economy is recovering boosted demand for higher-yielding assets.

The euro gained against 13 of its 16 most-active counterparts as Japan’s gross domestic product expanded for a second-consecutive quarter. The Australian dollar traded near the strongest in 15 months against the greenback after gains in U.S. stocks added to signs the economic recovery is gathering momentum, backing the case for the Reserve Bank of Australia to raise rates again next month.

“The GDP data were much stronger than expected, boosting risk appetite,” said Yuji Saito, head of the foreign-exchange group in Tokyo at Societe Generale SA, France’s third-largest bank. “The bias is for the yen and the dollar to be sold to buy higher-yielding currencies.” Ream more »

Nov. 13 (Bloomberg) — Asian stocks dropped for a second day, paring the MSCI Asia Pacific Index’s first weekly advance in four, as commodity-related shares fell on lower crude oil and metal prices.

BHP Billiton Ltd., the world’s biggest mining company and Australia’s largest oil producer, sank 1.9 percent in Sydney today. BlueScope Steel Ltd., Australia’s largest steelmaker, lost 1.4 percent, extending a slump from yesterday after saying it expects to post a loss in the first half. Japanese glass makers Central Glass Co. and Nippon Sheet Glass Co. dropped more than 5 percent after reporting losses.

“Energy-related stocks should sag” in Asia, said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc.

The MSCI Asia Pacific Index lost 0.3 percent to 117.51 as of 10:20 a.m. in Tokyo, paring gains this week to 1 percent. The gauge has lost 3 percent from a 13-month high on Oct. 20 amid concern the withdrawal of government stimulus measures will cause the global recovery to falter. Ream more »

Nov. 12 (Bloomberg) — Australian employers unexpectedly added workers in October, pushing up the nation’s currency on speculation the central bank will raise interest rates for a record third straight month.

The number of people employed rose 24,500 from September, the statistics bureau said in Sydney today. The median estimate of 20 economists surveyed by Bloomberg was for a decline of 10,000. The jobless rose to 5.8 percent from 5.7 percent.

Australia’s economy is expanding with “less spare capacity than earlier thought likely,” according to the central bank, as Chinese-led demand for resources spurs companies such as Chevron Corp. to hire workers. Reserve Bank Governor Glenn Stevens will raise the benchmark interest rate by a quarter percentage point on Dec. 1 to 3.75 percent, economists surveyed by Bloomberg say. Ream more »

Nov. 11 (Bloomberg) — Asian stocks rose, driving the MSCI Asia Pacific Index higher for a fourth day, after Japan’s machinery orders increased more than economists expected and shipping rates climbed.

Mori Seiki Co., a maker of precision lathes, advanced 1.9 percent as orders for Japanese machinery climbed 10.5 percent in September. STX Pan Ocean Co., South Korea’s biggest bulk carrier, climbed 3.2 percent in Seoul as the Baltic Dry Index posted its steepest jump in a month. Newcrest Mining Ltd., Australia’s largest gold producer, gained 0.7 percent as bullion advanced. Daikin Industries Ltd., the world’s No. 2 air conditioner maker, jumped 3.2 percent after lifting its annual profit forecast.

The MSCI Asia Pacific Index advanced 0.7 percent to 118.83 as of 9:54 a.m. in Tokyo, extending its four-day increase to 3.6 percent. South Korea’s Kospi climbed 0.5 percent, while Australia’s S&P/ASX 200 Index gained 0.6 percent.

Japan’s Nikkei 225 Stock Average added 0.7 percent to 9,922.12. The 10.5 percent increase in September for machinery orders, an indicator of business investment in three to six months, beat economist predictions for a 4.1 percent increase. Ream more »