Market Review By TraderXP:
German shares rose with the benchmark index DAX (DAX) completion of its sixth consecutive month in advance, amid optimism that American politicians agree on a new federal budget.
"We are in solidarity with each other in the direction of financial compromise," Guy Spier, CEO of Aquamarine Capital Management LLC in Zurich, said in a Bloomberg Television interview today. "They know that they will reach a compromise, but if the markets overreact to public statements, we obtain a kind of fluctuations that we have seen."
Market News
WallStreet ends flat as a "financial cliff" focus delayed
S & P 500 wrapped up its fifth positive month for the last six on Friday, although he ended the day flat aspoliticians differences remain on how to avoid the so-called financial cliff.
Trading was volatile in the last two weeks, as investors react to the statements frompolicymakers status discussions about how to prevent a series of tax increases and spending cuts, which would bring the economy back into recession.
S & P 500 rose 0.29 percent in November, even as he suffered a slide more than 6 percent to its highest month low.
"With 'again, again' financial cliff (the negotiations), it's pretty amazing how resilient the market was," said David Rolfe, chief investment officer at St. Louis Wedgewood partners.
"Between now and the end of the year, it will be an information vacuum outside the financial cliff, and I believe that stability will be tested."
In contrast to the apparent calm in stocks Volatility Index CBOE (VIX), the sensor alarm market, jumped 5.4 percent, the biggest daily gain in two weeks.
VIX, also rose for the week, but posted a whopping 14.7 percent decline in November.
On Friday, U.S. President Barack Obama accused "a handful of Republicans" in the House of Representatives the U.S., raising legislation to extend tax cuts for middle class Americans, to try to save them for the rich.
Speaking shortly after the president, House Speaker John Boehner, Republican of Ohio, said: "There is a dead end, let us not fool ourselves."
Despite the language differences, many market participants are betting that the deal will be struck - if only at the eleventh hour.
Corporations continue to respond to what is expected to be more stringent tax regime next year.Whole Foods Market was the last to declare a special dividend in cash - $ 2.00 per share, in this case - in front of expected higher tax rates in 2013.
Index Dow Jones Industrial Average rose 3.76 points, or 0.03 percent, to 13,025.58 at the close. S & P 500 added 0.23 simple points, or 0.02 percent, closing at 1,416.18. But the Nasdaq Composite Index dipped 1.79 points, or 0.06 percent, to end at 3,010.24.
For the month of November, S & P 500 rose 0.29 percent, the lowest monthly change from March 2011. Dow fell 0.5 percent, and the Nasdaq gained 1.1 percent.
For the week, although all three major U.S. stock indexes advanced, with the Dow up 0.1 percent, S & P 500 rose 0.5 percent, and the Nasdaq rose 1.5 percent.
VeriSign shares fell 13.2 percent to $ 34.15 after the company said that the U.S. Department of Commerce approved an agreement with ICANN to run. Com Internet registry, but VeriSign can not raise prices, as it were.
Yum Brands slid 9.9 percent to $ 67.08 a day after the parent of KFC, Taco Bell and Pizza Hut chains said he expected drop in fourth-quarter sales at established restaurants in China.
After a relationship for a few years, Facebook and Zynga revise the terms of the partnership, in accordance with the regulations on Thursday. Under the new agreement, Zynga, the creator of "Farmville" game, will have limited opportunities for promotion on Facebook.
Shares of Zynga, fell 6.1 percent to $ 2.46. Facebook shares gained 2.5 percent to $ 28.
Latest iPhone Apple Inc has received final approval from Chinese regulators, paving the way for a debut in December in a highly competitive market, where the lack of a new model has been seriously undermined by its share of sales of the product. Shares of Apple fell 0.7 percent to $ 585.28.
Market reaction to the data on Friday was disconnected.
U.S. consumer spending fell in October for the first time in five months and income growth to a standstill, leading some economists to reduce the already weak estimates for the fourth quarter economic growth.
Slightly more than 7 billion shares changed hands on the New York Stock Exchange, NYSE, Nasdaq and MKT, more than the daily average this year of about 6.48 billion shares and the largest in two weeks.
On the NYSE, about six issues rose for every five that fell, while on the Nasdaq, the ratio was about 1 to 1. Reuters.com
Currencies
Eurorises for the fourth month in a row against the dollar
The euro rose to its highest in more than five weeks against the dollar on Friday, posting its fourth consecutive month of revenue as investors clung to the hope that American politicians must reach a deal by the end of the financial year.
The yen fell and registered its worst month since February against the dollar on speculation that the probability of a change of government in Japan will lead to aggressive monetary easing. Speculators increased their bets against the yen to the highest level since May 2007.
Over the past few weeks, the financial markets are trading at the headlines of America's political leaders to "financial cliff", higher taxes and spending cuts worth $ 600 billion set to kick in early next year, which could hurt the economy.
U.S. House of Representatives Speaker John Boehner said Republicans and President Barack Obama are locked in a stalemate. Obama accused Republicans, who control the House holds a deal.
"The market is a kind of wishful thinking that some compromise will be reached by December 31. This thinking in the market right now," said Fabian Eliasson, vice president of currency sales in Mizuho Corporate Bank in New York.
The euro rose 0.2 percent to $ 1.3001, having earlier touched $ 1.3027 on Reutersdata, its strongest level since October 23. Traders reported offers at $ 1.3040-50.
For the month, the euro rose 0.3 percent against the dollar.
German lawmakers on Friday approved the latest Greek rescue an overwhelming majority, as well as helping the euro sentiment. But the result was widely expected.
Revenues in the common European currency came despite weak data, which included a sharp drop in German retail sales, the decline of French consumer spending and record-high unemployment rate in the euro area.
Gloomy economic outlook for the euro zone should limit further growth in the euro zone, analysts said.
"The unemployment rate still sits at 11 per cent in the euro area and inflation is just 2 percent, I can not see how the euro can rise from here, other than people looking for alternatives to the dollar," said Chris Gaffney, co chief investment officer in Everbank Wealth Management in St. Louis.
The euro fell to session lows against the U.S. dollar after weak personal income and spending data. Data dented risk appetite in the market, as investors sought the dollar for their safety appeal.
"The disappointing data dampened modest enthusiasm that major economies are gaining momentum," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. "The report also confirms the fact that U.S. economic growth in the 4th quarter will be weak."
The dollar rose 0.5 percent to 82.51 yen, close to the nearly eight-month high of 82.82 yen hit last week. It was on the rate of growth of 3.4 percent in November, the biggest since February.
The euro rose 0.6 percent to 107.19 yen. Previously, he had risen to 107.66, its highest level since late April. Traders cited month-end demand for euros from Japaneseimporters.
In November, the euro was up 3.7 percent, the best month since June against the yen.
Although Japan's main opposition leader, Shinzo Abe, the favorite to become the new prime minister, appeared to soften its aggressive stance on the independence of the Bank of Japan, he returned to the bank's desire to buy foreign bonds.
"The market is preparing for the December 16 elections," said Eliasson. He said, with growing expectations of further easing, the dollar could continue to grow to 85 to 87 yen, if the election goes as expected.
The dollar index ended in November rose 0.3 percent after three consecutive months of losses. Reuters.com
