Market Review By TraderXP:
German DAX (DAX) is on course to complete their best years since 2003 this week, the bulls will be the first to mention the calibration of national standards in the euro area must be less than the 2007 peak earnings.
"It was an impressive rally, and we believe that the structural and cyclical driver for Germany is still there," said Mathieu L'Hoir, equity strategist at Axa Investment Managers in Paris. "Germany is also subject to a rebound in world trade. Decline we saw in riskpremiums still not reflected in the German campaign. "
Market News
Wall Street rebounds at home session, but with a 4-day
Stocks fell for a fourth day on Thursday, but recover most of its losses after the House of Representatives, the urgent indication of progress, said he would return to work to prevent the "financial cliff" this weekend.
It was a nervous session for stocks, shares fall more than 1 percent after Senate Majority Harry Reid warned deal unlikely before deadline, only to rebound only on the news that the house will reconvene Wednesday, a day before the 31 December " cliff "period.
"There is no belief in the movement, or the market as a whole, on the basis of cross-board reduction in the volume we saw ... but there will continue to be weak as long as there stable positive directioncoming from our leaders," said Joseph Cangemi, managing director of ConvergEx Group in New York.
The market was prone to rapid response to headlines and the steps it sometimes seemed more dramatic because of reduced volume. About 5.18 billion shares changed hands on the New York Stock Exchange, Nasdaq and NYSE MKT, which is well below this year's daily average of about 6.48 billion shares.
Investors are looking for any hint that lawmakers avoid $ 600 billion in tax increases and spending cuts, which will come into force next week, and could push the U.S. economy into recession.
"The markets turned in a heartbeat, as the house is the first session of the announcement than getting done," said Randy Bateman, chief investment management Huntington Asset, in Columbus, Ohio, which oversees $ 14.5 billion in assets. "I am not convinced that this will lead to a deal, but you can get enough concessions from both sides, at least to avoid a direct transition cliff."
In a sign of anxiety, Volatility Index CBOE. VIX, or VIX, rose above 20 for the first time since July, projected growth concerns, but eventually finishing the day up 0.4 percent, as the stock market rebounded.
Shares in the materials and financial sectors, which are more vulnerable to economic productivity, bore the sale to recover. Shares of Bank of America fell 0.6 percent to $ 11.47 while Freeport-McMoRan Copper & Gold fell 0.7 percent to $ 33.68.
Some of the biggest growth in 2012 violated the general trend and rallied, a sign of the end of the year "window dressing." Expedia Inc was the highest winning percentage of S & P 500, climbing 4.1 percent to $ 60.30. The value of shares online travel agency has doubled this year.
Index Dow Jones Industrial Average slipped 18.28 points, or 0.14 percent, to 13,096.31 at the close. 500 Index Standard & Poor dropped 1.73 points, or 0.12 percent, to end at 1,418.10. The Nasdaq Composite Index fell 4.25 points, or 0.14 percent, to close at 2,985.91.
Marvell Technology Group fell 3.5 percent to $ 7.14after he said that he would seek the abolition of the jury finding of patent infringement. Shares fell more than 10 percent in the previous session, after a jury found the company violated patents owned by Carnegie MellonUniversity chips and ordered to pay $ 1.17 billion in damages.
Four-day drop was recorded long streak S & P 500 during the three months. The index has lost 1.8 percent over the period, as investors struggle with the possibility that the transaction may not be reached until next year.
U.S. President Barack Obama returned to Washington from Hawaii to restart the stalled negotiations with Congress. House Speaker John Boehner and other Republican leaders were to hold a conference call with Republican lawmakers. It was expected that the legislature would have said, to return to Washington quickly if the Senate passed the bill.
Treasury Secretary Timothy Geithner announced the first of a series of measures to postpone the date when the U.S. government will hit its legal authority to borrow - the limit known as the debt ceiling - about two months.
Economic data seemed to confirm fears about the impact on the economy of the financial cliff.
The Conference Board, industry group, said its index of consumer confidence fell in December to 65.1 as a budget crisis dented growing optimism about the economy. Sensor fell more than expected to 71.5 in November.
However, the labor market continues to improve. Initialclaims for unemployment benefits fell 12,000 to 350,000 seasonally adjusted last week and four-week moving average fell to the lowest sinceMarch 2008.
Decliners outnumbered advanced on the New York Stock Exchange in a ratio of about 8 to 7, and on the Nasdaq, about 14 stocks fell for every 11 that rose. Reuters.com
Currencies
Ian gets two-year low on expectations of easing bold BOJ
The yen fell to its lowest level in more than two years against the dollar on Friday, pressured by expectations that the new government of Japan will push the Bank of Japan in a more aggressive monetary easing.
Rise of the dollar against the yen gained impetus due to the stop-loss buying, which helped lift the dollar to 86.64 yen, its strongest level versus the Japanese currency since August 2010.
"There were lots of stops associated with option barriers in very fine condition this morning, and what seemed to happen is that they were called one by one," said a trader at a Japanese bank in Singapore.
After trimming some of its gains, the dollar traded at 86.40 yen last, up 0.4 percent from late U.S. trade on Thursday.
The yen was also down against the euro, touching its lowest level in about 17 months. The euro rose to 114.675 yen, its strongest level against the yen since July 2011.
Euro last stood at 114.42 yen, a test of its 200-week moving average around 115.00 yen in sight.
The yen reached a two-year low against the dollar for the third day in a row, coming in a renewed pressure after Shinzo Abe led the Prime Minister of Japan on Wednesday.
Abe promised to push through aggressive monetary stimulus to fight deflation. One of the key advisors Abe told Reuters in an interview on Thursday that the Bank of Japan should set a higher inflation, and the government needed to make the central bank more accountable for their political goals.
Dollar all but certain to end the week above its 200-week moving average, currently at around 84.95 yen, the first time since the week ending December 23, 2007, technical signal foreshadowed further growth.
"A lot of people are looking for 90 as a reasonable goal," said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co in New York.
"The only way we're going to get there through a radical change in policy, and it has some real momentum behind it," Wilkinson said.
Weak trend YEN
The yen has fallen more than 12 percent against the dollar in 2012, putting it on the way to the largest annual percentage decline since 2005.
Analysts at JPMorgan among those who expect the greenback to go to 90 yen.
In a research note on Friday, they have revised their forecast for the range of the dollar in 2013 from 80 yen to 90 yen from 75 yen to 85 yen earlier. Their end-2013 forecast for the dollar has been revised to 87 yen, compared to 79 yen.
JPMorgan analysts said the weak yen trend is likely to continue until the upper house election in Japan in July, adding that they had underestimated the impact of the trade deficit by Japan on the yen, as well as the extent to which the perception of foreign investors "of Japanese politics and politicians were changed.
"Simply put, the fact that we are watching was the power of the market speculation that" this time is different and growing hopes that the Japanese economy and politics were headed for real change this time, "JPMorgan analysts wrote.
"Indeed, the Abe administration has a strong incentive to keep the market was hoping for more, while the upper house election in July," they said.
In addition, the recent decline of the yen and a rally in the benchmark Nikkei average share of Japan may encourage risk appetite of Japanese investors and encourage independent outflow, they added.
The euro exchange rate unchanged against the dollar at $ 1.3243with investors waiting to see whether the last chance round of the U.S. budget will reach a deal to avoid a "financial cliff".
U.S. President Barack Obama and Vice President JoeBiden meet congressional leaders of both parties to the White House on Friday to try to resume negotiations in order to avoid tax increases and spending cuts, and $ 600 billion - to go into effect on January 1.
Market participants say that the dollar could benefit from safe haven buying, if a deal is not reached by the end of the year. Reuters.com
