News Update 1st June 2010
Good evening Fellow Traders,
I am looking at the futures now reading down 100 points a very good sign for us bears.
Some news in the current headlines affecting the market:
Headlines from CNBC
CHINA:
China’s factories scaled back production last month and slowed the pace of hiring in response to a drop in new orders from both home and abroad.
The purchasing managers’ index (PMI) compiled by the China Federation of Logistics and Purchasing (CFLP) fell to 53.9 in May from 55.7 in April.
The decline comes against a background of slowing money and credit growth, the gradual withdrawal of fiscal stimulus and measures to deter speculative buying in real estate.
Li Daokui, a professor at Tsinghua University and a member of the Chinese central bank’s monetary policy committee, said recent government measures to cool the property market needed to be part of a long-term push to bring high housing prices under control.
He added that there were still signs that the economy was overheating and recommended modest increases in interest rates and the level of the currency.
The housing market problem in China is actually much, much more fundamental, much bigger than the housing market problem in the US and UK before your financial crisis,” he said in an interview. “It is more than [just] a bubble problem.”
The news sent shares in China down 2.4 percent.
EUROPE:
The European Central Bank warned on Monday that euro zone banks face up to 195 billion euros in a “second wave” of potential loan losses over the next 18 months due to the financial crisis, and disclosed it had increased purchases of euro zone government bonds.
And the news on the oil spill is playing havoc it’s much worse than expected and with hurricane season around the corner things could get much worse.
What will it mean tonight more downside?
Trader Lyn
