Thursday 28 June 2012

Market update - 29 June 2012

Market update - 29 June 2012



Wall Street declined as investors continue to await for more cues from the EU summit. The Dow     -0.20%, S&P -0.21% and Nasdaq -0.90%.
Despite an agreement to inject EUR120bn “growth pact” was announced, sentiments remained underwater as Italy and Spain refused the proposal unless the EU agree to underwrite Italian and Spanish bonds.

Selling pressure in key bluechip counters sent the KLCI breaking below its psychologically     important 1,600 to 1,594.24. Risk sentiments may be affected by negative developments from the EU summit front, KLCI possibly range-trading at current levels with downside risks.
USD/MYR and SGD/MYR risks fresh charge to 3.2000 and 2.5000 levels respectively, market eyeing BNM aid

Petronas agreed to buy Progress Energy Resources Corp. for approximately USD 4.6billion in its biggest deal as it moves to export Canadian gas to Asia
The US Supreme Court, in a 5-4 ruling, upholds the law, including its much-disputed mandate that almost all the people in US have health care or pay a fine.

Highlights from theEuropean Summit

European Union leaders struggle to meet demands by Spain and Italy for relief from rising borrowing costs, threatening to derail a 120billion-euro pledge to boost economic growth
Germany has opposed any effort to join forces on sovereign debt or expand the crisis-fighting role of the European Central Bank

French President Francois Hollande said Italy and Spain out to receive support from the euro area’s firewall funds anf that their yields are still too high after the efforts they have made to reform their economies


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