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Dollar, Euro, Pound & Yen

23:23 Monday 19 July, 2010

A look at how equities are shaping up, with Liz-Ann Sonders, Charles Schwab.

23:16 Monday 19 July, 2010

U.S. and European stocks advanced, while Treasuries retreated, as Halliburton Co. reported earnings that beat estimates and takeover offers lifted shares of companies from Australia to the U.K. and America. Oil rallied.

The Standard & Poor’s 500 Index gained 0.5 percent to 1,070 at 9:33 a.m. in New York after the U.S. benchmark index tumbled 2.9 percent July 16. The Stoxx Europe 600 Index advanced 0.3 percent. The yield on the 10-year Treasury note climbed 0.03 percentage point to 2.95 percent, rising for the first time in four days. The forint slid more than 2.5 percent versus the euro and dollar and Hungary’s BUX Index slid 2.2 percent as deficit- reduction talks with the International Monetary Fund broke down.

Nokia Siemens Networks said it will pay $1.2 billion for wireless network assets from Motorola Inc., and buyout firm Onex Corp. and the Canada Pension Plan Investment Board are considering a 2.9 billion-pound ($4.4 billion) bid for Tomkins Plc. Halliburton said its profit almost doubled, while International Business Machines Corp. and Texas Instruments Inc. are scheduled to announce results later today.

“After taking a battering for much of Friday’s session, there are signs of stability returning to the U.S. indices ahead of the open,” said Anthony Grech, head of research at IG Index in London. “Earnings season continues and today’s main event for traders is IBM’s latest set of numbers.”

20:02 Monday 19 July, 2010

"Equities are going to lose you money between now and October. You either sell right now or wait for the rest of the rally and sell into that," Robin Griffiths from Cazenove Capital told CNBC when taking a technical look at the FTSE.

19:58 Monday 19 July, 2010

U.S. index futures rose, indicating the Standard & Poor’s 500 Index may rebound from its biggest sell-off this month. The forint weakened and the cost of insuring Hungarian debt surged as deficit-reduction talks with the International Monetary Fund broke down.

Futures on the S&P 500 gained 0.4 percent at 11:19 a.m. in London, after the U.S. benchmark index tumbled 2.9 percent July 16. The Stoxx Europe 600 Index advanced 0.1 percent. The forint weakened 1.9 percent versus the euro and Hungary’s BUX Index declined 2.2 percent. Irish bonds dropped after Moody’s Investors Service lowered the nation’s rating one step.

Twenty of the 23 companies in S&P 500 that have reported quarterly earnings since July 12 have beaten analysts’ estimates, according to Bloomberg data. Halliburton Co., International Business Machines Corp. and Texas Instruments Inc. announce results today.

“After taking a battering for much of Friday’s session, there are signs of stability returning to the U.S. indices ahead of the open,” said Anthony Grech, head of research at IG Index in London. “Earnings season continues and today’s main event for traders is IBM’s latest set of numbers.”

19:54 Monday 19 July, 2010

The euro’s biggest rally in a year is threatening exporters in Europe’s weakest economies as they grow more reliant on international sales for growth.

The 9.5 percent gain to $1.3008 from a four-year low on June 7 reduced speculation that the region’s debt crisis would break up the single currency. At the same time, the head of Spain’s Exporters Club says the stronger euro will make it harder to counter a “paralyzed” domestic market. European Aeronautic, Defence & Space Co., the maker of Airbus planes, says at $1.20, the currency still wouldn’t be weak. Salvatore Ferragamo SpA says it’s counting on exports to boost sales as austerity measures crimp demand from France to Italy.

Even after declining 14 percent during the past eight months as mounting deficits threatened the region’s economic recovery, the euro remains stronger than the $1.184 average since its introduction in 1999. The currency is overvalued by 14 percent, according to purchasing power data compiled by Bloomberg. Foreign-exchange strategists say the result will be a weaker euro.

“If the euro continues to appreciate it would be a disaster for the euro zone,” said Ken Wattret, chief euro-area economist at BNP Paribas SA in London. “The worst-case scenario for the euro area is you have a sustained exchange-rate appreciation because it would snuff out the recovery.”

16:39 Monday 19 July, 2010

Bank of China looks attractive, say Jim Antos, bank analyst, Mizuho Securities Asia & Dominique Dwor-Frecaut, macro strategist at Royal Bank of Scotland. They explain why to CNBC's Bernard Lo & Emily Chan. They also share their outlook for China's banking sector.

16:36 Monday 19 July, 2010

The euro fell against the U.S. dollar and the yen Monday in Asian trade, hit by some profit-taking after it rose to a two-month high Friday, amid concerns on the health of the euro-zone's bank sector ahead of the release of key stress-test results later this week.

The single currency briefly rose Friday above the psychologically key $1.30 mark as the market focus switched to growing signs that the U.S. recovery could be slowing. Still, it faces significant hurdles to extend its rally from the four-year low hit last month, and analysts say the prospect of comatose economic growth and further losses for European banks should drive the euro lower again.

In addition, news that negotiators for the International Monetary Fund and European Union walked away from talks with Hungary over the weekend, over differences on government budget cuts, may weigh further on the euro, as Hungary is expected to join the euro zone in coming years.

"The big question in forex markets is whether the euro can hold onto its recent gains and whether the dollar will be punished further amidst growing double-dip worries," said Mitul Kotecha, a foreign exchange strategist with Credit Agricole. "The bigger risk this week is to the euro."

16:31 Monday 19 July, 2010

Stocks fell for a second day, the euro weakened and bond risk increased as concern deepened the global economic recovery is faltering and Moody’s Investors Service cut Ireland’s debt rating.

The MSCI World Index of 24 developed countries declined 0.4 percent at 8:07 a.m. in London. The Stoxx Europe 600 Index dropped 0.4 percent and the MSCI Asia Pacific excluding Japan Index sank 1.2 percent. Standard & Poor’s 500 Index futures gained 0.1 percent. The euro depreciated 0.3 percent against the dollar. Hungary’s forint lost 2.6 percent against the euro after the International Monetary Fund and European Union ended talks with the government without endorsing its budget deficit plan.

Moody’s cut Ireland to Aa2 from Aa1, citing the government’s “gradual but significant loss of financial strength.” Chinese premier Wen Jiabao said on a trip to Shaanxi province that the global recovery was slow and New Zealand reported the jobless rate was likely to stay “elevated” over coming quarters. U.S. consumer confidence sank to the lowest level in a year and Bank of America Corp., Citigroup Inc. and General Electric Co. reported worse-than-estimated revenue.

10:31 Monday 19 July, 2010

CNBC's Sue Herera looks ahead to next week's top business and financial stories.

10:26 Monday 19 July, 2010

Volatile stock markets have left investor confidence in tatters. Now some say it's time to accept the turmoil and adopt more dynamic trading strategies.

Proponents of so-called trend investing -- buying and selling stocks depending on technical analysis of the market's direction -- say the tactic not only enables investors to navigate unstable markets, but also prevents big losses when prices fall.

The proactive stance is winning converts at a time when concern about the strength of the U.S. economic recovery and the future of consumer spending is running high.

10:21 Monday 19 July, 2010

Australian and South Korean stocks fell after revenue at Bank of America Corp., Citigroup Inc. and General Electric Co. missed analyst estimates and a gauge of U.S. consumer confidence sank to the lowest in a year.

James Hardie Industries SE, the biggest seller of home siding in the U.S., slumped 2.9 percent in Sydney on concern demand for its products will fall. Samsung Electronics Co., which gets a fifth of its sales in America, sank 0.8 percent in Seoul. BHP Billiton Ltd., the world’s largest mining company, lost 1.2 percent in Sydney following declines in metal prices last week.

“The revenue misses, coupled with the softer U.S. consumer confidence number, served to reinforce the possibility of growth stalling in the U.S.,” said Angus Gluskie, who oversees $300 million at White Funds Management Pty in Sydney.

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