Forex and Dow Jones recommended levels

Forex and Dow Jones recommended levels

November 27, 2009

EUR/USD

Today’s support: - 1.4878 and 1.4853(main), where correction is possible. Break would give 1.4816, where correction also may be. Then follows 1.4794. Break of the latter would result in 1.4772. If a strong impulse, we would see 1.4757. Continuation will give 1.4732.
Today’s resistance: - 1.4991 and 1.5033(main). Break would give 1.5058, where a correction is possible. Then goes 1.5074. Break of the latter would result in 1.5092. If a strong impulse, we’d see 1.5116. Continuation will give 1.5135.


USD/JPY

Today’s support: - 85.36, 84.94 and 84.60(main). Break would bring 84.46, where correction is possible. Then 84.17, where a correction may also happen. Break of the latter will give 83.84. If a strong impulse, we would see 83.70. Continuation would give 83.36 and 82.87.
Today’s resistance: - 86.82, 87.37 and 87.64(main), where a correction may happen. Break would bring 87.83, where also a correction may be. Then 88.02. If a strong impulse, we would see 88.24. Continuation will give 88.53, 88.90 and 89.10.

DOW JONES INDEX

Today’s support: - 10440.00, 10423.10, 10395.00 and 10358.25(main), where a delay and correction may happen. Break of the latter will give 10333.12, where correction also can be. Then follows 10295.75. Be there a strong impulse, we would see 10271.18. Continuation will bring 10248.70.
Today’s resistance: - 10486.40 and 10528.42(main), where a delay and correction may happen. Break would bring 10544.28, where a correction may happen. Then follows 10572.40, where a delay and correction could also be. Be there a strong impulse, we’d see 10598.70. Continuation would bring 10618.80.

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India may be more flexible on climate talks -report

India may be more flexible on climate talks -report

India's environment minister said the country may have to be more flexible over climate change talks after China unveiled its first firm targets to cut carbon emissions, a newspaper reported on Friday.

On Thursday, China pledged to cut the amount of carbon dioxide produced for each yuan of national income by 40-45 percent by 2020, compared to 2005 levels, a move hailed as a vital to rekindling U.N. talks to tackle global warming.

"China has given us a wake-up call," Jairam Ramesh was quoted as saying by the Hindustan Times newspaper. "We have to think hard about our climate strategy now and look for flexibility."

"Now the pressure is even from the advanced developing countries on us to declare targets on emissions which are not legally binding," Ramesh said ahead of a trip to Beijing.

India and China have said they would work towards a common position in talks on a climate deal. China is the world's top greenhouse gas emitter and India is the fourth largest.

The United Nations is aiming for a comprehensive political agreement at climate talks in the Danish capital that start in little over a week, covering tougher emissions targets, climate financing for poorer nations and the transfer of clean-energy technology.

The troubled talks have run out of time to settle a legally binding deal after rancorous arguments between rich and poor nations about who should cut emissions, by how much and who should pay.

New Delhi has so far refused to accept internationally legally binding emission reduction targets, though it is prepared to discuss and make public periodically the status of its domestic climate action.

In October, a newspaper reported Ramesh had suggested India accept curbs on its rising emissions without insisting they should hinge on new finance and technology from rich nations. But Ramesh retreated after being accused by media and opposition of hurting Indian interests.

China's position comes after the United States said it would commit to cut its greenhouse gas emissions roughly 17 percent below 2005 levels by 2020, a drop of about 3 percent below the 1990 benchmark year used in U.N. treaties.

Many countries have been unwilling to commit to cuts before knowing the position of the United States, the world's second largest greenhouse gas emitter. (Reporting by C.J. Kuncheria; Editing by Alistair Scrutton and David Fogarty) ((kuncheria.jacob@thomsonreuters.com; +91 11 4178 1007; Reuters Messaging: kuncheria.jacob.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

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Stanchart says to inform investors if material Dubai exposure

Stanchart says to inform investors if material Dubai exposure

HONG KONG, Nov 27 (Reuters) - Standard Chartered Bank said on Friday that it would inform the investment community if it had any exposure to troubled investments in Dubai.

Dubai, whose extravagant building projects have been largely put on hold since the global financial crisis, has said it would ask creditors at its flagship companies Dubai World and property developer Nakheel to delay repayment on billions of dollars of debt.


"We do not comment on specific clients," Standard Chartered said in a statement. "We are fully aware of our disclosure obligations, and would make a statement in the event that we had anything material to disclose."

Istithmar World, an investment arm of Dubai World, also has an investment in Standard Chartered, according to Istithmar's corporate website. (Reporting by Clare Jim and Doug Young; Editing by Chris Lewis)

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RPT-GLOBAL MARKETS-Asia shares skid as Dubai debt worries spread

RPT-GLOBAL MARKETS-Asia shares skid as Dubai debt worries spread


* Stocks driven down by risk-cutting investors

* Dollar drops to fresh 14-year low against yen

* Nikkei at a 4-month low, yen's rise also weighs

* Banking stocks lead decline in the region (Repeats story to more subscribers)



HONG KONG, Nov 27 (Reuters) - Asian stocks slumped on Friday as the Dubai-debt shockwaves hit the region, shaking banking shares and pushing the yen to a fresh 14-year high against a struggling dollar as investors unwound risky trades.

The shock Dubai news raised investor fears of debt defaults that could hit other parts of the global economy just as it is trying to recovery from the global financial crisis.


Japan's Nikkei average took its cue from a sharp fall in Europe to hit a four-month low, coming under additional pressure from weakness in exporters as the dollar fell against the yen.

The MSCI index of Asia Pacific stocks traded outside Japan <.MIAPJ0000PUS> dropped 2.5 percent, while the Thomson Reuters index of regional shares <.TRXFLDAXPU> fell 0.63 percent.

Banking shares led the falls on concerns about exposure to the billions of dollars in Dubai debt. The MSCI index of banking shares in Asia Pacific outside Japan <.MIAPJFN00PUS> shed nearly 3 percent.

"Some of the tensions can spill over into those economies which are externally dependant for funding their investment plans," said Binay Chandgothia, chief investment officer at Principal Global Investors in Hong Kong, a fund.

Dubai said on Wednesday it wanted creditors of state-owned Dubai World and its property subsidiary Nakheel, to agree to a debt standstill in a first step towards restructuring.

Dubai World, the conglomerate that spearheaded the emirate's breakneck growth, had some $59 billion in liabilities as of August. [ID:nGEE5AO2L1]

The Dubai announcement sparked immediate rating downgrades of several government-related entities and sent the cost of insuring against the emirate's debt soaring and bond prices tumbling.

European shares had their worst daily percentage loss in seven months on Thursday and gold climbed to a record high of $1,194.90. The United States celebrated Thanksgiving holiday.

Chandgothia said some of the Asian falls could reflect investors locking in profit after a strong rally, which has lifted the MSCI Asia Pacific ex-Japan index by over 60 percent.

"Even those who came in late into the rally late have made decent money, so there would be a tendency to take risk off the table. Probably not a bad time to lock-in gains and let things settle down before taking the next step," he said.

As investors unwound their exposure to riskier assets, the yen soared against the dollar to a fresh 14-year high and also traded stronger against higher-yielding currencies like the Australian dollar . [ID:nT310017]

The yen's rise has raised concerns it could hurt export earnings and push the Japanese economy back into recession. The Japan Iron and Steel Federation has already raised concerns with the yen's elevated level against the dollar, saying it could impact the steel, auto, electronics and shipbuilding industries. [ID:nID:nT282188]

On Thursday, exporters like Honda Motor Co <7267.t> skidded, and Japan's top bank Mitsubishi UFJ Financial Group <8306.t> slipped as financial shares were hurt by concerns about their exposure to Dubai's debt. [ID:nGEE5AO2FN]

The weighed on the Nikkei average, which fell as much as 2.2 percent to 9,180.47, its lowest level since July.

"Similar stories as this Dubai one are likely to continue to come out, leading risk money to pull out from assets such as commodities and stocks," said Takahiko Murai, general manager of equities at Nozomi Securities.

Banking shares in other parts of the region also felt the brunt of the news -- HSBC <0005.hk>, whose London-traded shares lost 4.8 percent on Thursday, slumped 5.9 percent and Standard Chartered <2888.hk>, which fell 6 percent in London, skidded 5.8 percent.

Although Dubai's announcement was Wednesday, Asian markets were slower to react that those in other regions.

"Although there was talk of it before, there was uncertainty about the full impact," Andrew Sullivan, a sales trader with broker MainFirst Securities in Hong Kong, adding that initially it was seen as a debt restructuring exercise before the default fears set in.

"Until the details became clear, people were not so worried about the downside. It is a delayed reaction because more information became available overnight," he said.

Gold in Asia was hovering just below Thursday's record high while oil prices stood just below $76 per barrel.

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Asia banks, builders battered by Dubai debt doubts

Asia banks, builders battered by Dubai debt doubts

* Banks, builders bear brunt of Dubai debt default fears

* Dubai exposure may have "meaningful impact" on banks - CLSA

* Leighton says owed money on Dubai projects; this not new


TOKYO, Nov 27 (Reuters) - Shares of leading banks across Asia, including HSBC Holdings and Standard Chartered, tumbled on Friday as concerns grew over exposure to Dubai, after the emirate said two of its flagship firms planned to delay repayment on billions of dollars in debt.

Asian property developers were also hit, with Australia's Leighton Holdings and Japan's Obayashi Corp losing ground on fears of losses from some of Dubai's extravagant construction projects.


The emirate shook markets on Wednesday when it said it would ask creditors of state-backed Dubai World and one of its units to agree to delayed debt repayments as a step towards restructuring. Dubai World has $59 billion of liabilities, representing a large part of Dubai's total debt of $80 billion.

The Dubai government's announcement prompted Standard & Poor's and Moody's Investors Service to sharply cut their ratings on several government-related entities. Moody's slashed some units to junk status and S&P said the restructuring could be considered a default.

Exposure to Dubai could have a "meaningful impact" on banks across Asia, said Daniel Tabbush, Asia banks analyst at CLSA in Bangkok.

"Within banking specifically, the biggest exposure appears to be with Standard Chartered and, secondly, with HSBC, followed by DBS," Tabbush said, adding that not all banks in Asia have given details on their exposure.

Shares of Standard Chartered fell nearly 5 percent in Hong Kong, and HSBC dropped 5.4 percent. Singapore's DBS Group was untraded due to a market holiday. DBS was not immediately available for comment.

Standard Chartered said in a statement it did not comment on specific clients, adding: "We are fully aware of our disclosure obligations, and would make a statement in the event that we had anything material to disclose."

HSBC was one of several banks that were among bookrunners on an outstanding $5.5 billion syndicated loan to Dubai World in June 2008, according to Thomson Reuters LPC data.

Banks may have sold down their loan exposure in the secondary market, and one analyst estimated bookrunners typically retain only about 10-15 percent of a loan or bonds.

Shares in Japan's Mitsubishi UFJ Financial Group and rival Mizuho Financial Group both dropped a little more than 1 percent, while Sumitomo Mitsui Financial Group fell more than 2 percent.

Mega Financial, Taiwan's No.4 financial holding firm by assets, said it had exposure to Dubai World's loans and was trying to determine how much.

"We are very concerned about the situation," Grace Lin, an executive vice president, told Reuters by phone. "We heard some other Taiwan banks also have exposure."

In South Korea, the Financial Supervisory Service said in a statement dated Nov. 26 that the country's financial institutions' exposure to Dubai was just $88 million, with exposure to Dubai World at about $32 million.

But bank shares still retreated, with KB Financial Group, Shinhan Financial Group and Woori Finance Holdings all down by around 4 percent.

"Although local banks' exposure is negligible, falls in European bank stocks and broader concerns about global banks' exposure are pressuring the sector," said Lim Il-sung, an analyst at Meritz Securities. "A potential rise in risk premiums may render borrowing costs heavier for banks."

Australian builder Leighton, majority owned by Germany's Hochtief, said it was owed money on a few separate Dubai building projects, but the situation was not new.

"We are confident we will recover the moneys owing, but the timing is uncertain," a spokesman told Reuters. He did not name the projects or give details on how much was owed.

Leighton shares were trading down 3.6 percent at 0400 GMT.

In India, shares in DLF, the country's biggest listed real estate firm, fell as much as 8 percent in early trade.

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TOPWRAP 1-Dubai debt delays revive fear of financial crisis

TOPWRAP 1-Dubai debt delays revive fear of financial crisis


* HSBC, Stanchart hit in Asian trade on Dubai exposure fears

* Yen rallies; emerging currencies, Aussie, kiwi fall

* Dubai default could revive market turmoil - analysts.

By Tamara Walid and David Dolan

DUBAI/TOKYO, Nov 27 (Reuters) - Investors recoiled from risky assets on Friday and dumped shares in Asian banks and builders, fearing a Dubai debt default could reignite the financial turmoil of the credit crisis.


Stocks in Tokyo and Hong Kong were haunted by suspicion of lenders' exposure to the Dubai firms that built palm-frond shaped islands in the Gulf and planned cities from Pakistan to Africa. The emirate, which emerged from dusty obscurity to became a trading and tourism hub with global ambitions, said on Wednesday it would ask creditors of state-owned Dubai World and Nakheel to agree to a standstill on billions of dollars of debt as a first step towards restructuring.

Dubai World, the conglomerate that led the emirate's expansion, had $59 billion of liabilities as of August, a large proportion of Dubai's total debt of $80 billion. Nakheel was the builder of three palm shaped islands off Dubai.

The news shook markets that are recovering from the collapse of the U.S. housing market and contagion that threatened to rupture the global financial system last year.

"The panic button's been hit again," said Francis Lun, general manager of Fulbright Securities.

Analysts expect financial support from Abu Dhabi, like Dubai a member of the United Arab Emirates and home to most of the emirates' oil. But Dubai might have to abandon an economic model that focused on heavy real estate investment and inflows of foreign money and labour.

BANKS

Shares in HSBC Holdings dropped more than 7 percent and Standard Chartered fell 6 percent. The London listed shares of the two lenders led the biggest tumble in European bank stocks in six months on Thursday.

"If this eventually becomes an issue that affects the banks, once again it will put in doubt their capacity to start lending, which is a key factor in all the strategies to reactivate economies," said Carlos Ponce, head of equity strategy at brokerage IXE in Mexico City.

Exposure to Dubai World could be as high as $12 billion in syndicated and bilateral loans, including existing loans for Nakheel and Istithmar, an investment arm of Dubai's government, banking sources told Thomson Reuters LPC..

The Dubai crisis could have a "meaningful impact" on banks across Asia, said Daniel Tabbush, Asia banks analyst at CLSA in Bangkok, listing Standard Chartered, HSBC and Singapore's DBS Group as the most exposed in the region.

DBS shares were not traded due to a market holiday in Singapore.

Builders took a beating from Seoul to Sydney on concern that money due from Dubai's grandiose construction projects, including the world's tallest building, would not be paid.

Australian construction firm Leighton Holdings said on Friday it was owed money on a few separate Dubai building projects, but that it was confident of recovering the money. The stock fell more than 3.5 percent.

PROPERTY

Dubai's debt problems are a hangover from a property bubble that imploded after the financial crisis derailed its plans to become a magnet for tourists and a regional hub for everything from financial services to media and entertainment.

The delays in debt payments and the risks that posed to a global financial system already battered by bank failures in Europe and the United States, raised fears of a new wave of market turmoil.

"Similar stories to the one in Dubai are likely to come out, leading risk money to pull out from assets such as commodities and stocks," said Takahiko Murai, general manager of equities at Nozomi Securities in Japan.

Japan's top bank Mitsubishi UFJ Financial Group slipped as Japan's Nikkei average struck a four-month low. It also came under under pressure from weak exporters after the dollar hit a fresh 14-year low against the yen. The Australian and New Zealand dollars retreated.

Oil extended Thursday's decline and fell below $76 a barrel. Shanghai copper and Chicago grains each dropped around 2 percent.

Dubai tried to revive confidence by saying on Thursday its profitable DP World, which runs 49 ports around the world, would not be involved in the restructuring.

DP World, which has $3.25 billion outstanding in bonds, is majority owned by Dubai World but has shares listed on NASDAQDubai.

If creditors reject proposals to postpone near-term debt obligations until May 2010, the Dubai government could be forced to hold a firesale of its international real estate.


(Reuters is the largest international news agency -- providing professionals around the world with stories that move the markets.)

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Nothing more Strategic in Forex than Your Own Strategy Built on Trading Experience

Nothing more Strategic in Forex than Your Own Strategy Built on Trading Experience


It is not always necessary that the traders must equip with certain strategies to trade at the market. However, it’s a very common question that is frequently asked by most of the people trying their hands at the trading market.

Let’s exchange some points that can give your trading an edge and a distinctiveness to your trading personality that keeps you different from others in the Forex crowd. The basic feature of the Forex trading is the trader, which runs the trading market. Therefore, the main point to be considered here is that the characteristic that the trader must encompass in its individuality.



When the discussion is on Global Forex Online Trading then the matter is of great importance as the global market brings with it more diversified trading trends and numerous currency pair competition.

This will increase the number of fundamental and technical factors that influence the market and the study of these factors require more precision.

The strategies that you can apply at the market are as follows.

First, watching the fluctuations in the market trend regularly or weekly is the key point to use while trading.

Second, always find an ideal trader or trading mentor and take their guidance to understand the market trading patterns and features.

Third, always read the business news magazines or the financial news column of any daily and keep yourself acquainted with the minutes of the Forex market.

Fourth, do have contact with the person who is working in bank or financial organization which is indulged in global forex trading. As these persons, have fresh updates of the trends and values of the currencies at any instant of the trading along with the experience of trading enabling you to acquire skill of making trading movements according to the trends.

Fifth, acquire the mastery over Forex terms and lingo to have an edge in your trading to read and study the market trends and make out inferences from these trends.

Sixth, minimize the trading risks through studied risk factor this ability of the trader provides an intellect to develop an instinct about the profitable or loosening trading trends.

These few trading strategies are developed with the passage of time in every individual but why to waste time in learning by practice when it is possible to learn from others. For this reason, listen to others, fetch conclusions of your use, and apply them appropriately in the market.

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