Corporate earnings will set the tone for stocks in weeks ahead

July 7, 2009

The start of Y 2009 Q-2 earnings season begins this week and may be a Key factor for determining how much faith investors will have in an economic recovery. After a rally of as much as 40% for the S&P 500 on expectations the economy will begin to turn around by year end, will hone in on ’ projections to see if their hopes are corroborated. The light menu of economic data will help keep the spotlight on earnings releases, with bellwethers and posting their quarterly’s. Of even more importance will be any outlook give for what they expect to see for the rest of the year. A large auction could buoy the market if it shows there is good demand for . Concern that the appetite for is waning as the tries to fund its stimulus efforts was soothed by solid demand in last week’s record US$104B auction of Treasury securities.

Popularity: 2% [?]

Credit crunch plays into China’s shopping plans

February 28, 2009

With the world suffering through a major , has suddenly gone shopping. Beijing said last week that one of its big state-owned banks, Development Bank, agreed to lend Petrobras, the Brazilian oil giant, US$10B in exchange for a long-term supply of Crude Oil. That investment came after similar deals were signed this week with and , bringing ’s total Crude Oil investments this month to US$41B.

This month, Corp. of , the largest Chinese producer, agreed to invest $19.5 billion in Rio Tinto of Australia, one of the world’s biggest mining . And on Monday, Min metals bid US$1.7B to acquire Oz , a huge Australian zinc mining company. The new is flush with cash and eager to take advantage of weak commodity prices, is once again on the hunt for and resources to power its growing economy. But this time, Chinese are being welcomed overseas. say that will continue to make deals this year, for a variety of small oil and , mineral producers and mining .

Popularity: 6% [?]

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