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Green session on the Asian markets

Most of the Asian indices ended the trading session on Tuesday with increases. The indexes rose after the news of the Chinese inflation, but the Japanese shares fell as investors gathered the accumulated profits. In Japan, the benchmark Nikkei 225 declined with 0.85% to 14,994.80 points. In China, the Shanghai Composite rose with 1.08% to 2,052.53 points. The Hong Kong’s Hang Seng rose with 0.78% to 23,298.79 points. The South Korean KOSPI added 1.09% to its value to 2,011.80 points. In Australia, the S&P ASX 200 slightly went up with 0.10% to 5,469.70 points. In Jakarta the JCI rose with 0.83% to 4,925.44 points, following the first presidential debate before the election. The Indian SENSEX slid slightly with 0.34% to 25,494.32 points.

In May, the consumer price inflation in China accelerated to its fastest pace in four months due to rising food prices. The consumer price index rose by 2.5% yoy, while the producer prices declined by 1.4% compared to May 2013. After the news, Shanghai Composite climbed to its highest level in two weeks and the financial companies led the winners. The Chinese central bank cut the reserve requirement ratio for some banks yesterday. The Agricultural Bank of China and the Bank of Communications increased their capitalizations at a rate and ICBC with 2% each. The growth overshadowed news that the other 10 companies will meet their IPOs after nearly 4 months of break market. On Hong Kong Stock Exchange the shares of China Mobile rose 1% after the mobile operator has acquired 18% of Thai Telco True Corp. for 881 million USD. The shares of Citic Resources fell with 9%.

The Japanese Nikkei 225 got down to a week of bed a day after finishing a three-month high. Investors took winnings, but are waiting for news from the economic minister Akira Amari in terms of corporate tax reform. According to Amare clarity on the issue will be the end of the week. Sony wiped 0.6% of its share price despite news that has surpassed its rival Nintendo in sales of consoles in 2013 securities to Nintendo remained unchanged after the news. Fast Retailing market capitalization shrank by 1.5% after announcing that it will raise prices in the chain Uniqlo by 5% from August.

The South Korean KOSPI climbed to near 2-week high. Today, the index reached its strongest one-day increase of nearly four weeks. The consumer electronics companies enjoyed an enviable investor interest. LG Electronic was among the winners with a growth of 3.6% in the share price. LG Display added 6% and Samsung Electronics added 2%.

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Wall Street indexes ended the session on green after anemic trade

The leading US indices ended the first weekly trading session with growth, albeit the anemic trade during the day after the Easter holidays. Many traders continued their vacation today, after the exchanges in Europe were closed for the holiday.

Nasdaq index was the index with highest growth in the first session of the week, as the value of the technology index reached level of 4,121.55 points or an increase of 0.64%. The growth was based on the good performance of the pharmaceutical company Sarepta Therapeutics, which reported that by the end of the year will submit to the Agency on FDA its experimental medicine to treat the disease Duchenne muscular dystrophy. The shares of the company rose with 41% to a price of 34.38 USD per share. The good financial results of AMD led to an increase in the price of the processor manufacturer’s shares with more than 12% to a price of 4.15 USD per share. AMD announced that will reduce the losses in the first quarter due to increased revenues of 28% to 1.4 billion USD. For the first three months of the year the company has managed to reduce its losses to 20 million USD compared to 146 million USD for the same period of 2013.

The blue chip index Dow Jones Industrial Average rose with 0.25% to 16,449.25 points. The border index S&P 500 recorded its longest series of growth since October 2013 after increased with 0.38% to 1,871.86 points.

The rumors of the deal between Berrick Gold and Newmont, led to the growth of the shares of Newmont mining company with almost 6% to 25 USD per share. On the other side were the shares of Berrick Gold, which fell with 3% to a price of 17.44 USD per share.

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Wall Street is back on the green track

The US stock markets closed the first session of the week with increases despite the ongoing global political instability. The trade was supported by the economic data from the country, which showed stronger than expected growth in retail sales. The blue chip index Dow Jones Industrial Average rose with 0.89% to 16,169.00 points. The wide benchmark S&P 500 added 0.66% to a value of 1,823.65 points, while the technology Nasdaq Composite closed with a growth of 0.68% to 3,467.40 points.

Following the reported 22% growth during the last week, the fear index VIX, known officially as the CBOE Volatility Index, fell with 0.46% to 16.57 points. The index is a leading measure of uncertainty among the investors. The lack of a strong jump in VIX shows that there is not much panic on Wall Street and investors are looking for good options for their money.

Earlier in the day the Ministry of Commerce revealed the data for retail sales in March. The trade expanded with the rapid pace in the past year and a half, signaling that the economy comes out of hibernation and is set to accelerate in the second quarter. The retail trade in the largest economy in the world rise with 1.1% in March, as the increase was the largest since September 2012.

Meanwhile the quarterly profit of Citigroup Inc rose unexpectedly, as the net profit of the investment bank rose with 3.5% to 3.94 billion USD. Data for the period surprised the analysts after the financial institution was able to recover the funds set aside as provisions for bad loans.

The USD improved its positions against the major currencies. The yields on 10-year government bonds used in the formation of interest rates on mortgages and other consumer loans, added two basis points to 2.644%. The investment gold with June delivery rose to 1,326.70 USD per ounce, while the WTI crude oil prices fell to 103.61 USD per barrel.

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European markets recovered slightly in Monday

The European markets recovered from the heavy losses during the last week trade, closing with slight increases in Monday. The growth rates were supported by the data on retail in USA that surprised the forecasts. The pan-European benchmark FTSEurofirst 300 expanded with 0.43% to 1,318.58 points, traded with slight decrease in the earlier session. Most affected were the companies from the technology sector. Ericsson shares fell with 4.4%, while Alcatel-Lucent wiped 3.4%.

The British FTSE 100 expanded with 0.10% to 6,568.29 points, while the German DAX 30 added 0.11% to 9,325.85 points. The French CAC 40 grew to 4,382.46 points, expanding with 0.38%. In Spain IBEX 35 slid with 0.37% to 10,167.90 points.

The weaker EUR helped for growth of the European markets from low levels. The optimism was raised by the financial results of Citigroup, which quarterly net profit grew with 3.5% to 3.94 billion USD. Meanwhile the retail sales in USA rose in March with the fastest pace for the last year and half, which is a sign that the economy is coming out of hibernation and is about to accelerate in the second quarter. The retail trade in the largest economy in the world grew with 1.1% on a monthly basis according to figures from the US Commerce Department. The increase was the largest since September 2012.

The investors’ sentiment remained subject of the ongoing conflict in Eastern Europe. Earlier in the day the Western countries and Russia held another meeting without much result regarding the crisis in Ukraine. The tension in the country is getting deeper, which hardly reflects the markets in the world.

On the European macroeconomic front, Greece publishes primary budget surplus of 1.6 billion EUR in the first quarter of 2014. The level is more than three times larger that the achieved an year earlier. The optimistic result also exceeds the target set in the bailout program for the Mediterranean country. Athens international lenders wanted to achieve a primary surplus of 878 million EUR.

Meanwhile the European Central Bank (ECB) announced that may consider buying assets as an option for keeping the interest rates low in long term. The market took this as another sign indicating that the bank is ready for serious action in an attempt to prevent the arrest of inflation in the Eurozone in order to dangerously low levels in recent times.

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Pessimism ruled of Asian markets

Most of the Asian stock markets started the week with declines following the negative trend in global markets last week. The trading remained under pressure due to the ongoing political tensions in Eastern Europe. The geopolitical problems around Ukraine continues to be in the spotlight after on Saturday pro-Russian separatists took control of the Ukrainian city Slavyansk. In response to recent events, the Security Council of the United Nations (UN) held an emergency meeting in the early hours local time on Monday.

The Japanese benchmark Nikkei 225 ended the trading on Monday with a new 6-month low, losing 0.36% to a value of 13,910.16 points. The decline came after another strengthening of the JPY against the USD. The Japanese currency traded at around 101.5 JPY per USD away from Friday’s high of 101.3. Also sharp drop reported the shares of Sharp, which fell 9% amid the rumors that the company is considering issuing of new bonds to boost its capital.

The Australian S&P ASX 200 reported its biggest one-day drop in the last month, closing at nearly two-week low. The benchmark wiped 1.28% to a value of 5,358.95 points. The majority of the gold mining companies have been under pressure, although the estimate of the yellow metal rises to a three-week top. The shares of Alacer Gold dropped with nearly 4%, while Evolution Mining decrease exceeded 1%.

The Chinese Shanghai Composite reported its modest growth of 0.05% to 2,131.54 points after a highly volatile session. The market capitalization of Chongqing Changan Auto grew with the maximum possible value of 10% after the company predicted strong profit growth in the first quarter of 2014. The news from the company also suppoert the other shares in the sector, as Jiangling Motors added 1.7% to its value. The largest Chinese brokerage company CITIC Securities, decreased with 2% its market capitalization, after acquiring the US trading company BTIG.

The shares of South Korean companies closed session little changed despite the profits of the blue chips. KOSPI index lost just 0.02%, reaching a value of 1,997.02 points. The shares of technology giant Samsung Electronics rose with 0.4%, caused by the good sales of Galaxy S5 on the local market.

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Wall Street started the week on red

On Monday the US stocks fell for a third consecutive day. Dow Jones Industrial Average fell with 1.01% to 16,247.22 points. The broader index S&P 500 slid with 1.08% to 1,845.04. The technological Nasdaq Composite fell with 1.16% to 4,079.75 points and recorded its third worst performance this year.

Thee analysts comment that the investors come from many market sectors, which were well performing during the last year. In particular, the internet companies, social networks and biotech industry experience biggest weakness. On Friday, the shares of the technology companies suffered a deep downturn. The minor mood of market participants moved to the exchanges in Asia and in Europe today.

Amazon.com, Apple, Google were under serious pressure during the Friday trade and today their drop continue. Amazon lost 1.6%, Apple lost 1.55% and Google lost 1% during the Monday trading session. TripAdvisor also decreased its market capitalization with 2.72% to 83.36 USD per share.

The shares of Pfizer dropped with 3% to 31.20 USD. The pharmaceutical giant had the worst presentation among Dow Jones companies.

Among the winners most significant growth reported Kellogg Co, which shares grew with 2.02% to a level of 65.06 USD.

On the New York Stock Exchange crude oil futures with May delivery dropped with 0.70 USD, or 0.7% to a level of 100.44 USD per barrel. The price of the gold contracts with June delivery dropped with 5.20 USD, or 0.4% to 1,2908.30 USD per ounce.

The yields on 10-year US government bond decreased with 3 basis points to 2.695%.

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Asian markets finished the session on green

The leading Asian markets finished the Wednesday session with increases on green territory, as the markets in Japan, Australia and South Korea reported new weekly highs.

The Japanese shares ended the session on Wednesday on new 3-week high, as the investors welcomed the cheaper JPY. The leading stock index Nikkei 225 grew with 1.04% to 14,46.32 points. The Chinese Shanghai Composite rose with 0.56% to 2,058.99 points, while the Hong Kong’s Hang Seng gained 0.34% to 22,523.94 points. The South Korean KOSPI grew for the fourth consecutive session, as this time the growth was with 0.26% to level of 1,997.25 points. The Australian S&P ASX 200 rose with 0.26% to 5,403.30 points and reached new 3-week high, in spite of the fact that the AUD retreated from yesterday’s four-month high against the USD.

The markets in Southeast Asia also reported growths after the broad MSCI Emerging Markets Index rose above 1,000 points for the first time since January 2nd. Thus, it extended its gains for the eighth consecutive session. The Philippine and India shares also rose, because of the good economy data from the countries.

On the stock exchanges in Japan the automakers were the biggest winners. The shares of Mitsubishi Motors rose with almost 5%, while those of Mazda Motor grew with nearly 3%. This comes on the heels of news that auto sales in USA rose with 6% in March, which is the fastest pace since November last year.

Renesas increased its market capitalization with 19% after rumors that Apple is in talks to acquire the share of the manufacturer of semiconductor division to design chips Renesas SP Drivers. At the same time the shares of Kyushu Electric Power fell with 5% after rumors that the company needs a capital injection from the state-controlled Japanese Development Bank. The news caused large losses for shares of companies in the sector. Kansai Electric Power and Hokuriku Electric also lost nearly 2% of their market capitalization.

The stock exchanges in China are best presented designers of real estates. Poly Real Estate lead to profitable growth in the share price of 7%. China Merchants Property added 5.6%, while Shanghai Shimao grew with 3,4%.

In Australia, the mining companies posted the strongest performance. The shares in Fortescue Metals rose with 2.8%, while those of BHP Billiton added almost 1%, after the price of copper rose to near 3-week high because of the earthquake in Chile.

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Wall Street indexes finished the Tuesday session on green

The major Wall Street indexes finished the Tuesday session on green territory, supported by the positive news from the automotive sector and the growth of US industrial production. The benchmark S&P 500 reached a new record level, registering growth of 0.7% to 1,885.52 points. However, the most serious increase on today’s session did the technological Nasdaq Composite, whose value reached 4,268.04 points, or an increase of 1.64%. The blue chip index Dow Jones Industrial Average rose to 16,532.61 points or an increase of 0.46%.

Among the big winners today were the automobile manufacturers. The sales report of Ford Motor Company satisfied the investors and exceeded the market expectations, which grew the shares of the company with 5% to 16.30 USD. In the same time the shares of GM lost just 0.25% from its market capitalization. The trading was done at around 34.30 USD per share, after the problems with the recall of defective vehicles are getting deeper. The CEO of the company was asked by the Congress to describe the measures taken by the company for prevention of technical defects of the cars.

Also the company MGM Resorts reported good trading session, as the shares rose with 2.5% to a price of 26.50 USD, while Las Vegas Sands grew with 2% to a price of 82.51 USD per share. The market capitalization of the technological giant Cisco grew with 4.5%, supporting the growth of Nasdaq.

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Asian indexes finished the session with mixed results

Asian indexes finished the session with mixed results

Asia Nikkei growthThe leading stock markets in Asia ended the trading on Monday with increases amid the hopes that China may stimulate its economy. However, the first quarter of 2014 was marked by the fear of the market participants.

The Japanese benchmark Nikkei 225 was the worst performing index in the region for the first three months, counting a loss of 9%. In this way it reached its weakest quarter in nearly two years. The presentation of leading Indonesian index Jakarta Composite was absolutely opposite, as it rose with 11.5% over the period. The Philippine’s benchmark PCOMP, even recorded growth of nearly 9%.

Despite of its decline for the quarter the Japanese stocks rose to their highest level in nearly three weeks during the Monday trading session. They grew for the fourth consecutive session. Nikkei 225 rose with 0.90% to 14,827.83 points, supported by the decline of the JPY to a one-week low against the USD. The market capitalization of Sony expanded with 4%, while Nintendo and Honda Motor closed with growths of more than 2%.

The investors also weighed the weak economic data that showed a decline in manufacturing activity in February. Activity in the sector declined by 2.3% on a monthly basis after rising 3.8% in January. The analysts predicted expansion of 0.3%. Measured on an annual basis, the activity still reported growth, expanding by 6.9%.

The Chinese Shanghai Composite fell by 0.41% to 2,033.31 points. The market was scared before the publication for the key production data compiled by HSBC and the Chinese government. Anhui Conch lost 1.2% despite the announcement of an increase in net profit for 2013 with 48.3%. The shares of Dongfeng Motor fell with 1.3%. Here, however, the decline came despite good corporate results, which showed a rise in annual profit by 15.8%.

The Australian S&P ASX 200 ended the quarter at two-week maximum 5 394.80 points, expanding by 0.52% for the day. The local mining companies reported mixed results from after the copper toward its biggest monthly loss since June. BHP Billiton added 1.1%, while Fortescue Metals slid more than 1%. Meanwhile AUD retreated from 4-week high of 0.9261 USD reached on Friday.

The South Korean KOSPI expanded with 0.23% to 1,985.61 points, supported by Hyundai Motor grwoth, which reached 1.2%. The economic data showed that South Korean current account surplus fell in February. Samsung SDI ended the session with a growth of 6.6%, while its affiliate for electronic materials Cheil Industries added 5.7%. The rise came after news that the giant will acquire a smaller company by the swap deal.

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Asian markets closed the week with increases

Asian stock markets ended the last weekly session with growths, due to the increased hopes of monetary easing in China. The latest comments of the Chinese Prime Minister Li Keqiang feed the further speculation about a new monetary stimulus of the country. In his speech on Wednesday, he said that the government has prepared a policy, which will get targeted measures to support the economy.

The Japanese benchmark Nikkei 225 closed the session with 2-week high at 14,696.03 points, adding 0.50% during the trade. The investor optimism increased, following the recent economic data from the country. The inflation maintained its level in the last month against the government’s plan to create a virtuous cycle of growth by increasing investment, expanding the profits of the business and increased consumption. Underlying the consumer price index, which excludes fresh fruit and vegetables, rose with 1.3% yoy in February. The annual rate of inflation remained unchanged in December last year, maintaining its highest level since April 2010. The retailers reported solid growth, as Takashimaya, Aeon and Fast Retailing added more than 2% to their market capitalization. The shares of Yahoo Japan fell with 6.3% after the company announced that will buy the mobile operator Softbank eAccess at the amount of 3.2 billion USD.

The Chinese Shanghai Composite dropped with 0.24% to 2,041.71 points, shrinking for the third consecutive session. The investors were looking to the production data, which will be presented next week. In the corporate part of the index, the largest-volume automaker in the country SAIC Motor, expanded with 13% after accounting for 19.5% growth in net profit for 2013. The Industrial and Commercial Bank of China added 2% despite the weakest profit growth in the last 7 years.

The Australian Index S&P ASX 200 rose with 0.31% to 5,366.94 points, supported by the gains in the financial sector. Meanwhile, the AUD hit a new four-month high of 0.9295 against the USD. National Australia Bank and Australia New Zealand Banking reported 0.8% growth rates of their market capitalization. The gold mining companies rebounded, although the price of the yellow metal fell to a six-week low. The shares of Evolution Mining and Newcrest Mining rose with more than 1% during the trade today.

The South Korean benchmark KOSPI ended at its highest level since the beginning of the year, taking into account its strongest weekly performance in the last 7 months. The index added 0.15% to 1,981 points. The increase was supported by one of the largest components of the country - Hyundai Motor, which expanded with 0.8%.

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