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Dollar, Euro, Pound & Yen

23:22 Wednesday 28 July, 2010

Buy small-cap funds when investing in China, advises Hugh Young, MD of Aberdeen Asset Management. He explains why this is the correct theme to be playing in China, with CNBC's Martin Soong, Bernard Lo & Karen Tso.

23:18 Wednesday 28 July, 2010

U.S. stocks slid Wednesday morning as investors worried about mixed earnings reports and a drop in demand for U.S. manufactured durable goods.

Weighing on sentiment, an early report showed a drop in demand for U.S. manufactured durable goods, casting more doubt on the strength of the economic recovery ahead of a Federal Reserve report this afternoon.

Durable-goods orders fell by 1.0% in June to a seasonally adjusted $190.5 billion, the Commerce Department said Wednesday, worse than an expected 1.1% gain. The drop was the second in a row, the latest sign of slowing manufacturing-sector expansion.

23:11 Wednesday 28 July, 2010

U.S. stocks fell, Europe’s benchmark equity index halted a six-day rally and the dollar declined versus the yen as an unexpected drop in American durable-goods orders deepened concern the economic recovery is slowing.

The Standard & Poor’s 500 Index lost 0.2 percent to 1,111.93 at 9:48 a.m. in New York. The Stoxx Europe 600 Index slipped 0.3 percent after climbing 4.9 percent since July 19. Oil fell below $77 a barrel and the dollar declined from the highest level in almost two weeks versus the yen, weakening 0.4 percent. Copper rallied to an 11-week high in London on speculation growth is sufficient to boost demand.

Industrial shares helped lead declines in equities after orders for U.S. goods meant to last at least three years dropped 1 percent in June, depressed by a decrease in demand for aircraft, Commerce Department figures showed. Bank of England Governor Mervyn King said there may be a “considerable” way to go before U.K. interest rates return to “normal” as policy makers debate when to halt emergency stimulus measures.

15:17 Wednesday 28 July, 2010

Wong Sui Jau, GM of fundsupermart.com, is cautious on gold on the basis that it has already experienced a 9-year run. He shares his investment strategy in this edition of Protect Your Wealth.

15:12 Wednesday 28 July, 2010

Chinese authorities feel confident that the current economic slowdown won't turn into a "double dip," but they will maintain stimulus spending to support the economy, according to government statements Tuesday.

The People's Bank of China said that while the nation's economy is definitely slowing, it will continue to grow and its fundamentals remain strong, according to the central bank's quarterly report, as cited by the official Xinhua news agency.

The central bank said the current slowdown was a correction after earlier "excessive expansion" - as well as policy to stop steep real-estate price inflation and cutting loans to local governments - and added that the easing was "good for rebalancing the economic structure and achieving a sustainable economic growth," according to the Xinhua report.

11:40 Wednesday 28 July, 2010

Hugh Young, MD of Aberdeen Asset Management, prefers India over China. He tells CNBC's Martin Soong, Karen Tso & Sri Jegarajah why he'll rather forgo China's growth story so as to avoid the risks involved in investing there.

11:33 Wednesday 28 July, 2010

The yen rose against all of its 16 major counterparts on speculation signs of a slowing U.S. economic recovery will increase demand for safer assets.

Japan’s currency climbed from a two-month low versus the euro after U.S. consumer confidence fell to a five-month low. A report due in two days is forecast to show the U.S. economy expanded at a slower pace in the second quarter. Australia’s dollar ended a four-day gain against the yen on concern a consumer-price report today will prompt the central bank to hold the key interest rate unchanged next week.

“I doubt the U.S. economic recovery will be self- sustainable and policymakers seem to have few options left to support the economy,” said Hitoshi Asaoka, senior strategist at Mizuho Trust & Banking Co. in Tokyo. “The yen will see upward pressure.”

11:28 Wednesday 28 July, 2010

Asian stocks rose, driving the MSCI Asia Pacific Index higher for the fourth straight day, as Canon Inc. reported earnings that beat analysts’ estimates.

Canon, the world’s largest camera maker, surged 4.3 percent as JPMorgan Chase & Co. upgraded the stock. Sony Corp., which gets about 70 percent of sales abroad, jumped 3.1 percent on speculation a weaker yen will bolster export earnings. Fuji Heavy Industries Ltd., the maker of Subaru cars, climbed 4.8 percent in Tokyo after reporting production and export gains.

“Corporate earnings are improving and expectations for strong earnings will likely increase,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc.

08:03 Wednesday 28 July, 2010

CNBC's Sharon Epperson discusses the day's news in the commodities markets and looks ahead to where oil and gold are likely headed tomorrow.

07:56 Wednesday 28 July, 2010

U.S. stocks labored Tuesday, with the Dow industrials extending their win streak to a fourth day but other indexes falling, as investors weighed a lengthening list of companies reporting surprisingly strong results against a decline in consumer confidence.

"We started out OK in the morning with earnings, and then we got more economic news, which never helps," said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank.

"The earnings season is going very well, and the commentary about the third and fourth quarters seems to be giving investors a lot of comfort that things are progressing nicely," said Deutsche Bank's Fitzpatrick.

07:33 Wednesday 28 July, 2010

American consumers lost confidence in July, shaken by mounting concern over jobs and wages that threatens to constrain the economic recovery.

The Conference Board’s sentiment index fell to 50.4, below the median forecast of economists surveyed by Bloomberg News and the lowest level in five months, figures from the New York-based private research group showed today. Another report showed home prices rose more than forecast in May as a government tax credit temporarily underpinned sales.

A jobless rate that is projected to hover near 10 percent for the rest of the year means household spending, which accounts for 70 percent of the economy, will take time to recover. Ford Motor Co. is among companies lowering industry sales forecast for the year as concerned consumers focus on saving more and paying down debt.

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