Friday, March 16, 2012

NCDEX TIPS, STOCK TIPS (MAR 16)


US Markets Closed Flat Dow Extends Winning Streak For
Sixth Session
                                            
  16th March – 2012

The US markets made a mixed closing on Wednesday, with the Dow extending its winning streak to a sixth session, as investors showed relief about largely positive bank stress tests and US economic data. Also, the Federal Reserve's improved economic assessment caused investors to reduce bets on more monetary easing. The Fed, which acts as a bank regulator as well as a central bank, released results of the stress tests. Most banks had enough capital under a stress test designed to mimic the conditions of a 2008-type crisis, including an unemployment rate of 13%. The Federal Reserve plans to conduct stress tests annually and make company-by-company details publicly available like it did this year, the Fed official stated. However, the US mortgage applications fell 2.4% in the week ending March 9, following a 1.2% drop registered the previous week, according to data released by the Mortgage Bankers Association. Besides, the US current-account deficit increased to $124.1 billion in the fourth quarter of 2011, from the $107.6 billion deficit in the third quarter, driven by a drop in the surplus of income and an increase in the goods and services deficit. Separately, US import and export prices rose in February, according to a report released by the US Labor Department driven by a surge in fuel prices.

The euro area member formally approved the second adjustment program for Greece, according to a statement from the president of the Eurogroup, Jean-Claude Juncker. In the prepared statement Juncker stated that all required national and parliamentary procedures have been finalised. The member states have also authorised the EFSF to release the first installment of €39.4 billion to be disbursed in several tranches. Moreover, Fitch Ratings upgraded Greece's long-term foreign and local currency debt ratings to B- with stable outlook from Restricted Default. The rating actions follow the official confirmation of a 96% participation in the distressed debt exchange and the initial exchange of €177 billion of Greek-law bonds for new securities. Also, industrial production in the euro area rose 0.2% from a month ago in January compared to the 1.1% fall in December, Eurostat stated.

The Dow Jones Industrial Average closed higher by 16.42 points, or 0.12 percent, at 13,194.10. The S&P 500 lost 1.67 points, or 0.12 percent, at 1,394.28, while the Nasdaq was up by 0.85 points, or 0.03 percent, at 3,040.73.Powered by The Economic News

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