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Morning Rage 8.29.2012

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The Hang Seng slipped 0.1% being drug down by a 4.2% slide from Want Want China, a foodmaker. Although Want Want posted a better than expected first half profit of 38%, its revenue was still below expectations. The big trade to day comes from Permira, a European private equity firm, who sold a 750M dollar stake in Macau Casino. Evergrande, a Chinese developer, lost 3.1% due to falling margins as they cut prices to sell homes. China Life insurance was 2% after its chairman told reporters there were not promising prospects for increasing investment yields this year, it seems they appreciate the honesty.

The FTSE 300 is down 0.4% at the moment on weak results from French luxury goods companies L’Oreal and Bouygues. Bouygues slid 8% and was downgraded by Citigroup to sell. L’Oreal lost 4.2% and suffered a UBS bank downgrade to neutral from buy. Italian Bank Banca Monte deiPaschi di Siena lost 6% in an already troubled area. Around Europe France’s CAC is down 0.7%, the DAX 0.6% and the Madrid General 0.5%.

In commodities today energies are all currently starting down. Gold is also down, while silver is up 1.65%.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market. Comments can be directed to ryghcw19@uww.edu

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Morning Rage 8.28.2012

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Despite Japan’s outlook China still managed gains as  the Hang Seng adding 0.1% today helped by strong performance from steel. Baoshan Steel and Iron announced plans to buyback 5B Yuan of A shares and jumped the maximum 10% in Shanghai. China Mobile rose 0.6% and was the top booster of the Hang Seng. Foxconn International Holdings dove 8% and is now down 47% in 2012.

Europe is down 0.4% on a doubtful macro-economic outlook as investors are reluctant to trade without stimulus. Spain’s economy contracted further in Q2 giving more incentive for companies to stay away from the region. French Bank Credit Agricole rose 0.6% as it grows closer to closing the deal to sell its Greek arm. Kingfisher, Europe’s biggest home improvement retailer, fell 4.3% after being downgraded by BofA Merrill Lynch to underperform from buy.

Ford is planning of bringing over its Lincoln brand to China, which is expected to be the largest luxury market by 2020.

In commodities, crude and silver are both set to begin up today while gold and natural gas are both down.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market. Comments can be directed to ryghcw19@uww.edu

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Morning Rage 8.27.2012

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The Hang Seng went the opposite direction losing 0.4% today hit by weakened non-bank financial, brokers and insurers. China Life Insurance, the largest mainland insurer, slid 3.5% today. A rival, Ping AN Insurance, lost 2.6%. Haitong Securities lost 4.4%. China Construction Bank, China’s second largest lender, slipped 0.8% today. China Petroleum and Chemical Corp was the only of 3 Chinese Oil companies to rise today gaining 3.4%.

European shares were down today with revised data that Spain’s economy has contracted more than previously estimated, 0.3% vs a previously estimated 0.1% in 2010, the Spanish IBEX was down 0.8% today. Spanish and Italian Banks were down with BancoSantandor losing 1.3% and Unicredit down 0.8%. Trading was thin today due to the UK market being closed for a public holiday. Nokia, the world’s second largest cell phone maker, jumped 11% today after rival, Samsung, lost a court case against Apple. Around Europe the Dax is up 0.2%, the CAC 0.10% and the Madrid General is down 0.4%.

Ford breaks ground on a new factory in Chongqing, China where it will produce its 2-liter ecoboost engine.

Crude and Natural gas are both set to begin up over 1%, silver up 0.5% and gold the opposite way 0.2%.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market. Comments can be directed to ryghcw19@uww.edu

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Morning Rage 8.24.2012

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The Hang Seng lost 1.2% today, putting it down 1.3% this week, while the Shanghai composite lost 1%
putting it at a 3 year low. The resources sector was among the worst performers with China Shenhua,
China’s biggest coal producer, losing 3.5%. PetroChina stumbled back 0.6% after a 21% decline in Q2
net profits. CNOOC lost 1.1% today, 5% this week, due to week profit and a 40% slash in their dividend.
Banks were also week today with the Bank of China losing 1.3% after its weakest quarterly profit growth
in 3 years. China construction bank is also down 1.9% today.

The FTSEurofirst is beginning today flat as investors lock in profit to minimize risk and exposure. Mining
stocks were the biggest losing sector today as their sector is very economically sensitive. Eurasian
natural resources and Rio Tinto were among top fallers on the index losing 3.6 and 3.3% respectively.
Eurozone banks were also week with the sector losing 1.3% today. Today’s focus will be on the meeting
between the German Chancellor and Greek Prime Minister.

Global bank eyes are on Denmark’s after last month’s experiment of setting its main deposit rates for
banks at -0.2%, which the ECB said it may follow.

Apple is now 4th being knocked down from 2nd, in Q2 in China’s smartphone market. Consumers are
waiting for the next Iphone or buying other brands; Samsung maintains the lead.

Crude, gold and silver are set to begin below while natural gas is on the rise this morning.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu