Fundamental-News Monday, January 25, 2010

Today the shares of Asia fell for the sixth day because of concerns about the plan Barack Obama to rein in U.S. banks. Dollar and the yen weakened amid expectations of Federal Reserve Chairman Ben. S. Bernanke will win a second term. The MSCI Asia Pacific Index fell 0.6 percent to 121.65 at 14:45 in Tokyo. Japan's Nikkei 225 Stock Average slumped 0.4 percent while the yen fell against all of the 16 most-peer traded. Futures on the U.S. Standard & Poor's 500 Index rose 0.5 percent and the dollar traded at $ 1.4161 per euro from $ 1.4139 on Friday.
"Market Asia correcting the concerns trajectory of growth is not enough to justify some of the assessment," said Tim Schroeders, who helps manage $ 1.1 billion at Pengana Capital Ltd. in Melbourne. "Change the rules the U.S. banking will greatly hamper the ability of many banks to meet the expected profit growth, especially the problem hedge funds trade and exposure." Investors in Asia reacted to the plan Obama to limit the size and trading activity of financial institutions in an effort to reduce risk taking.

Support for Bernanke
Senate Mitch McConnell, chairman of the Republican Party, said he expects Bernanke to win a second term, with a mission to spur recovery in the U.S.. The Fed also will keep interest rates near zero at a meeting Wednesday.
Seven stocks fell for every two that rose on the index MSCI Asia. Most of the banks of China fell after the Bank of China Ltd., the state lender's third largest by market value, proposed to issue as much as 40 billion yuan ($ 5.86 billion) of convertible bonds into new shares to raise capital. JPMorgan Chase & Co. lowered the allocation for stocks banks China in the model portfolio, with the prediction that China will experience a loss of "short term".
Bank of Communications Co. fell 2.9 percent. Industrial & Commercial also fell 0.8 percent.
"The size of the fund raising Bank of China is very big," Li Jun, a strategist at Central China Securities Holdings Co., said in Shanghai. "I fear more big banks to follow in order to increase the capital adequacy ratio of those who will be negative for the market."

Sales Share
Woori Finance Holdings Co. fell 3.9 percent because of concerns South Korea intends to sell the stock.
The yen weakened to as low as 127.84 per euro as the news was released.
Dollar declined against the currencies of higher interest rates because the predicted decline in home sales in the U.S. tonight.
Copper for delivery in three months fell 0.6 percent to $ 7,346.25 per metric ton on the London Metal Exchange after a decline of 1 percent. Zinc rose 0.6%.
Oil prices go down the associated negative sentiment in China.

Predicted price movement today:

GBPUSD: 1.6050 - 1.6175 (trend down)

EURUSD: 1.4100 - 1.4185 (trend down)

AUDUSD: 0.9000 - 0.9085 (trend down)

NZDUSD: 0.7100 - 0.7185 (trend down)

USDCAD: 1.0500 - 1.0625 (trend up)

USDCHF: 1.0340 - 1.0455 (trend up)

USDJPY: 89.50 - 90.75 (trend down)

NZDJPY: 64.00 - 64.85 (trend down)

AUDJPY: 81.00 - 82.45 (trend down)

EURJPY: 127.00 - 128.55 (trend down)

GBPJPY: 145.00 - 146.55 (trend down)

EURGBP: 0.8700 - 0.8845 (trend down)

-HAPPY TRADING-