T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com
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29 September 2009
Nikkei rises on exporters, eyes on yen
Yesterday's huge (relatively speaking) jump was essentially missed by yours truly in the original pre-opening commentary other than my few words indicating there seemed a disconnect between Main and Wall (Streets) while tacitly alluding to the Asian weakness against the fact of US screen trade strength - clear evidence SOMEBODY had caught a whiff of the M&A events prior to formal announcement. As soon as I heard, I posted a brief one line UPDATE but that wasn't done until just a few moments prior to the bell. This is an event driven market as we saw yesterday but M&A aside - the risks of a geo-political blow up over IRAN are right now the greatest they've been since Ayatollah Khomeni came back to Tehran from Parisian exile on the heels of Shah Pahlavi's ouster. Only this time, Israel's Bebe Netanyahu has told Obama we have 2 maybe 3 months MAX to resolve the problem of nuke proloiferation before either Mossad takes out the leadership or there's an all-out war into which we'll be dragged whether we want to or not. That's by New Year's Eve, people. No I'm not trying to justify my bearishness - I'm simply pointing out a series of facts overlooked by the media in favor of the Health Care Circus! Check with old pal Steven Aftergood if you don't believe me.
Pre-market screen trade slightly higher a/o 07:30 CDT by almost double-digits.
Japan's Nikkei average rose 0.9 percent on Tuesday, with exporters such as Kyocera Corp climbing after the yen pulled back from an eight-month high against the dollar.
Hong Kong shares rebounded from a three-week low on Tuesday, their biggest one-day percentage gain in more than a week, as investors scooped up shares of oversold stocks including banks and telecoms on an overnight rally on Wall Street. Brokers said the expiration of futures contracts also boosted heavyweights such as HSBC (0005.HK), as investors with long positions sought to prop up the market…
The Hang Seng index, which touched a year high two weeks ago, has climbed 14 percent since the start of July. But steep valuations and an uncertain U.S. economic outlook could cap the rally in the short term, brokers warned.
"In October, I will be more pessimistic," said Conita Hung, head of equity research for Delta Asia Financial Group. "At this level, it's not attractive for buyers to enter the market. The upside is not much at this level."
Euro Shares Dip; Weak Oils Outweigh Banks
European shares dipped on Tuesday after the previous session's sharp gains, dragged lower by commodity stocks, but financials offered support after BNP Paribas raised capital to shake off government influence. Financials were standout gainers, with BNP Paribas up 2.6 percent as investors welcomed its move to launch a 4.3 billion euros ($6.3 billion) capital increase and pay back French state aid.
But heavyweight oil producers came under pressure as oil prices fell ahead of weekly U.S. crude inventory data, pushing the FTSEurofirst 300 of top European shares lower. "We are running towards the end of the year. If fund managers miss the market, they are going to want to use any pullback to get in," said Philip Lawlor, chief portfolio strategist at Nomura, in London.
T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com
T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com
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Pre-Opening Market Report

