Asia stocks score biggest monthly jump in a decade

HONG KONG: Asian stocks edged up on Tuesday to score their biggest monthly rise in a decade as some investors bet the most painful stretch of
corporate earnings damage may be over and bought technology shares. As the first quarter and Japan's financial year draws to a close, stocks, oil prices and higher-yielding currencies gained after a one-day battering on news that the US government was considering pushing General Motors into bankruptcy. Government bonds retreated as equity markets regained their composure, while the dollar slipped as investors favoured riskier assets. Asian stocks outside Japan finished the first quarter with a dip of around a per cent but were up around 14.3 per cent in March, the largest monthly gain since April 1999. "There has been a huge change in sentiment. Rather than anticipating huge sell-offs in the US, we've been anticipating rallies," said Peter Wright, a dealer with Burrell Stockbroking in Sydney. Many stock markets have thrashed in ranges near last year's lows, with investors cautious about calling a turnaround as the global economy remains mired in a deep recession. read more

European stocks rise in broad rally led by banks

PARIS, March 31 (Reuters) - European stocks gained ground in early trade on Tuesday in a broad rally clawing back a portion of the past two sessions' sharp losses as investor focus turned to a meeting of G20 world leaders.
British retailer Marks & Spencer (MKS.L) surged 11 percent after posting a smaller-than-expected fall in underlying fourth-quarter sales, saying it was turning around its troubled food business and holding market share in clothing.
At 0832 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was up 1.6 percent at 720.58 points. The index, which sank 3.9 percent on Monday, is down 14 percent in 2009, hit by the deepening global economic downturn as well as fears over the health of the banking system.
"The macro landscape has been stabilising, which has helped equities bounce back from historical lows. But to really improve market sentiment, we need to see the data improving and not just stabilising," said Jacques Henry, analyst at Louis Capital Markets, in Paris. read more

C$ lifted by oil strength, climbing equities

TORONTO, March 31 (Reuters) - The Canadian dollar roseagainst the U.S. currency on Tuesday, as the price of oil roseand equity markets climbed after tumbling the previoussession. At 7:29 a.m. (1129 GMT), the unit was at C$1.2542 to the U.S. dollar, or 79.73 U.S. cents, up from Monday's finish at C$1.2618 or 79.25 U.S. cents. At one point on Tuesday, the Canadian unit touched 1.2503 to the U.S. dollar, or 79.98 U.S. cents. "As equity markets rally that tends to lower levels of risk aversion and it tends to point to a slightly more optimisticoutlook for the markets and the global economy," said George
Davis, chief technical strategist at RBC Capital Markets. "The Canadian dollar tends to benefit from that type of backdrop." read more

Dollar, euro advance vs yen on fiscal year-end demand.

TOKYO, March 31 (Reuters) - The dollar and euro advanced against the yen on Tuesday, buoyed by Japanese investors' demand on the last day of Japan's financial year.
The greenback was also supported as a safe haven amid risk aversion that battered other currencies such as the euro the previous day.
The dollar and yen, traditional safe havens during times of financial market turmoil, were boosted the previous day as fears of bankruptcy for U.S. automakers General Motors (GM.N) and Chrylser sparked a sharp drop in global stock markets.
But on Tuesday the dollar gained a slight advantage against the yen as the end of Japan's financial year generated book-keeping demand for foreign currencies.
"The dollar is being buoyed as Japanese investors try to secure the currency on the last day of the fiscal year. Investors' demand for the yen stemming from repatriation flows, on the other hand, appears to have peaked," said a trader at a Japanese bank. read more

Oil tumbles below $49 on gloomy economic outlook

HOUSTON (AP) — Oil prices tumbled below $49 Monday as unease about the economy — from Asia to Wall Street — raised doubts about the global appetite for energy.
Benchmark crude for May delivery fell more than 7.6 percent, or $3.97, to settle at $48.41 on the New York Mercantile Exchange.
In London, Brent prices fell $3.19 to settle at $47.99 a barrel on the ICE Futures exchange.
Gasoline futures plunged more than a dime a gallon.
Jim Ritterbusch, president of energy consulting group Ritterbusch and Associates, said he expects oil to fall as low as $47 in advance of the U.S. crude inventory report, the monthly unemployment report and a meeting of the Group of 20 world leaders in London, all this week.
"Late in the week, all hell could break loose, but I don't know whether it makes the market go up or down," Ritterbusch said. read more

Euro in biggest one-day loss vs dollar in 2 months

NEW YORK, March 27 (Reuters) - The euro endured its biggest one-day loss against the dollar in more than two months on Friday after Germany's finance minister said fiscal irresponsibility in Europe could put the currency at risk.
Traders said the comments by German finance minister Peer Steinbrueck, along with weaker-than-forecast euro zone industrial orders and German inflation data, triggered pre-placed euro sell orders.
The greenback drew support ahead of next week's Group of 20 meeting while the yen rallied on last-minute fund repatriation by Japanese investors ahead of fiscal year end and expectations for further flows to Japan due to a change in tax regulation. read more

Stocks fall as automaker plans are rejected

NEW YORK – Wall Street's big March rally was officially on hold after the White House rejected turnaround plans from General Motors Corp. and Chrysler and gave investors a reality check on the economy.
All the major indexes fell more than 3.5 percent, including the Dow Jones industrial average, which lost more than 280 points. Financial stocks weighed heavily on the market.
Fears of an automaker bankruptcy have been looming over investors for months, and the latest developments, which included the removal of GM's CEO Rick Wagoner, made the market even more uneasy not only about the industry, but the overall economy. However, analysts said the pullback, which began with a 148-point drop in the Dow Friday, wasn't surprising after the average surged 21 percent over just 13 days. read more

Pound Falls, Gilts Rise as Stocks Slide, Bank Job Losses Loom

March 30 (Bloomberg) -- The pound fell against the dollar for a fourth day and gilts rose as equities dropped and an industry group said financial-services companies may eliminate as many as 15,000 jobs in the second quarter.
Sterling slipped to its lowest level in almost two weeks as leaders of advanced and emerging economies prepared to meet to discuss a global approach to financial regulation at the Group of 20 summit in London on April 2. Today’s drop versus the dollar put the pound on course for its third straight quarterly loss, the longest stretch of declines since December 2005.
“The pound is going to suffer given the negative global news,” said Ian Stannard, a senior currency strategist at BNP Paribas SA in London. “The increasing likelihood that we might not get anything significant out of the G-20 is going to weigh on equity markets and the pound too. Sterling could well be the underperformer of the week.” read more

Options Turn Most Bullish on Aussie, Kiwi Since 2003

March 30 (Bloomberg) -- Investors are the most bullish on Australian and New Zealand dollars since 2003, anticipating that spending on commodities will increase as central banks print unprecedented amounts of cash to rescue their economies.
Nineteen of the largest developed economies are spending 43 percent of their average gross domestic product to end the worst economic crisis since the Great Depression, the International Monetary Fund said March 6, adjusting for cost-of-living variances. The Group of 20 nations’ debt will jump next year to 77 percent of GDP, up 11 points from 2008, the IMF report said.
Aberdeen Asset Management, Hermes Pension Management Ltd. and Kokusai Global Sovereign Open Fund figure that new money will spur demand for everything from iron ore and oil to wool, so they’re buying Aussies, kiwis and Norwegian kroner. read more

U.S. stock futures slump as GM may go bankrupt

LONDON (MarketWatch) -- U.S. stock futures slumped on Monday after the White House said bankruptcy might be the best option for General Motors, forced out its chief executive and told Chrysler to form an alliance with another car maker, while hopes for a new round of global stimulus spending looked likely to fall short of earlier expectations.
S&P 500 futures fell 18.4 points to 797.8 and Nasdaq 100 futures fell 21 points to 1,235. Dow industrial futures fell 173 points.
U.S. stocks, despite a weak Friday, enjoyed a strong week, with the Dow Jones Industrial Average up nearly 7% and the other major indexes rising around 6% as the U.S. Treasury announced a program designed to get a combination of public and private money buying the toxic assets from banks read more

Dollar and yen rally as stocks falter

The dollar and the yen advanced on Monday as concerns over the US auto sector helped stem the recent rally in risky assets.
The Obama administration rejected restructuring plans for General Motors and Chrysler. Meanwhile, news of more bank bail-outs in Spain and the UK undermined financial stocks.
Analysts said investors were also on the defensive ahead of the G20 meeting of world leaders, which is due to start in London on Thursday.
“Although we remain of the view that forces are growing that will seriously undermine the dollar in the longer term, it is clear that the greenback has yet to fully relinquish its status as haven currency of choice,” said Neil Mellor at Bank of New York Mellon. read more

Global stocks, oil fall on worries on automakers

NEW YORK, March 30 (Reuters) - Global stocks skidded on Monday as President Barack Obama's harsh medicine for ailing U.S. automakers threatened bankruptcy for General Motors and Chrysler, and oil fell below $50 a barrel on the slumping equity markets and a stronger dollar.
The dollar and yen rallied on fears the two automakers may be forced into bankruptcy after Obama rejected their turnaround plans, prompting anxious investors to cut exposure to risk and seek safety in the two currencies.
Gold also firmed as investors sought safety, but gold futures later turned lower on the stronger dollar.
Bank rescues in Europe weighed on financial shares on both sides of the Atlantic, while the renewed concerns about banks and automakers lifted U.S. and European government debt prices.
The flare-up of woes in the banking and auto industries unnerved investors who bid up stocks and the dollar in recent weeks on hopeful signs the economic downturn might be bottoming.

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G20 to agree not to hurt others with devaluations.

LONDON (Reuters) - Leading and emerging nations will commit this week to pursuing responsible economic policies that do not hurt each other's prospects with protectionism or currency devaluations, according to a draft G20 statement.
The G20 group is due to meet in London on Thursday to discuss the next steps to tackle a crisis that has brought about the collapse of major financial institutions and huge job losses after credit dried up.
As the British capital and financial district braced for clashes around the summit, police said five people suspected of planning to join protests had been arrested and were being held under counter-terrorism powers, after weapons were found in a raid on a house in western England. read more

US Dollar Bull Trend Accelerates; Buy Dips

EURUSD resistance at 1.3415
-GBPUSD triangle, support below 1.40
-AUDUSD and NZDUSD sell off - tops in place?
-USDCHF support at 1.1350

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