US Investment Views 27 Oct
27 October, 2010, 20:09. Posted by Zarathustra
Tags: Investment, US daily (Discontinued)
Asia
Asian markets were kind of mixed today, as Hong Kong/China markets had a massive loss while the Japan market was largely flat. NIKKEI +0.10%, HSI –1.85%, SHSE –1.46%, S&P/ASX –0.85%.
Dollar Index (DXY) weaken in Asian sessions, so drop in Hong Kong is not very surprising (see this article to know why). Warren Buffett’s favourite BYD (1211.HK) dropped another 8.91% after dropping around 10% yesterday on super poor earnings. On the other hand, Bank of China (3988.HK; 601988.SS) reported a record earnings in Q3 today.
Europe
European markets are mixed as of now. FTSE is down while CAC and DAX are up. Deutsche Bank (DBKGn.DE, DB.N) reported better-than-expected loss for Q3, helping the German market, although the €1.21bn loss was still very massive. On the other hand, SAP (SAPG.DE) dropped after they reported a worse-than-expected earnings.
As I expected, the problem with Greek’s public finances has been far from resolved. That is why Euro dropped today as Greek Finance Minister said taxation dropped, causing Greek bonds to fall.
US equities preview
US market futures are down. As dollar sort of strengthening, it is not very surprising to see stocks going lower. Today there are some discussions on how large the QE2 would be when the FOMC meet next week. Some weeks ago Goldman Sachs seem to suggest that most of the QE2 has been largely discounted, and now they think the QE2 should have the scale of 2 trillion or so. Although not many agree that, and some are sceptical.
P&G (PG.N) and Comcast (CMCSA.O) just reported a better-than-expected Q3 earnings, and Visa (V.N) will report Q4 today. Today economic data releases include durable goods order (estimates: +2%, Reuters) and new home sales (estimates: 300,000).
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About Zarathustra
Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.