Replies to post #309839 on $Stock*Shop*Charts*News*Option$

[HoosierHoagie]

Good Morning Stuffie...My HAL Apr....30.00 puts are looking mighty good right now..:-)

[Stock Lobster]

GM! Stocks Fall on Global Debt-Burden Concern; Dollar Strengthens

By Justin Carrigan

March 22 (Bloomberg) -- Stocks declined for a third day and the dollar rallied on concern increasing sovereign-debt burdens will hamper the economic recovery. Greek bonds and shares fell.

The MSCI World Index dropped 0.5 percent at 7:22 a.m. in New York, marking its longest losing streak in six weeks. Futures on the Standard & Poor’s 500 Index retreated 0.7 percent. The dollar strengthened against 13 of its 16 most- traded counterparts. Greece’s ASE Index sank 3.5 percent and the premium investors demand to hold the nation’s 10-year notes instead of benchmark German bunds widened 25 basis points.

Maintaining government debt at post-crisis levels may reduce growth in advanced economies by as much as half a percentage point a year from the pace before the first global recession since World War II, John Lipsky, first deputy managing director of the International Monetary Fund, said in Beijing yesterday. German Chancellor Angela Merkel told investors they shouldn’t expect this week’s European Union summit to agree on a package to help Greece tackle the region’s biggest deficit.

“There has been an uptick in sovereign-default concerns and there is uncertainty over support for Greece,” said Lee Hardman, a foreign-exchange strategist at Bank of Tokyo- Mitsubishi UFJ Ltd. in London. “Investors are likely to be disappointed again from the EU summit this week and that’s going to continue to weigh on the euro to the benefit of the dollar.”

Europe, Asia

The Stoxx Europe 600 Index declined 1 percent while the MSCI Asia Pacific Index dropped 0.9 percent. Vedanta Resources Plc, the largest copper producer in India, led basic resources shares lower, falling 2.1 percent in London.

Royal Dutch Shell Plc slipped 1.2 percent after agreeing with PetroChina Co. to buy Arrow Energy Ltd. for A$3.5 billion ($3.2 billion). PetroChina Co., the nation’s biggest energy producer, declined 2.7 percent in Hong Kong.

India’s central bank raised interest rates for the first time in almost two years late on March 19, saying that controlling prices was imperative after inflation accelerated to a 16-month high.

The decline in U.S. futures indicated the S&P 500 may trim its third straight weekly gain. The Dow Jones Industrial Average snapped an eight-day winning streak on March 19 after India’s unexpected rate increase.

The Dollar Index, which tracks the currency against those of six U.S. trading partners, climbed for a third day, adding 0.2 percent. Government bonds gained, with the yield on the German bund falling 2 basis points to 3.09 percent. The yield on the 10-year Treasury note was little changed at 3.69 percent.

Risk Aversion

“Risk aversion has come up after developments in India and Greece,” said Henrik Gullberg, a fixed-income strategist at Deutsche Bank AG in London. “Any exiting of the current accommodative policy stance is bad for risk appetite and good for the dollar.”

Greek bonds tumbled for a third day, with the yield on the two-year note jumping as much as 18 basis points to 5.55 percent. National Bank of Greece SA, the nation’s biggest lender, led stock declines in Athens, sinking as much as 5.3 percent. The cost of insuring against a default on Greek government bonds rose, with credit-default swaps climbing 26 basis points to 356, according to CMA DataVision.

Credit-default swaps on the Markit iTraxx Crossover Index of high-yield European corporates climbed 14 basis points to 467, according to JPMorgan Chase & Co. Credit-swap gauges in Europe rolled into their 13th series today. New series of the benchmarks are created every six months when companies are added or dropped depending on their ratings, cost of protection and ease of trading.

Emerging Markets

The MSCI Emerging Markets Index dropped 1 percent for a third day of declines. South Korea’s Kospi Index and Taiwan’s Taiex Index fell 0.8 percent, and India’s Sensitive Index slid 1 percent. Russia’s Micex Index lost 1.2 percent and the ruble depreciated against the central bank’s target basket for the first time in a week, slipping 0.5 percent. The rand weakened 0.5 percent against the dollar in limited trading during a public holiday today.

Copper for delivery in three months fell 1.1 percent to $7,350 a metric ton on the London Metal Exchange, retreating for a third day. Rice added 0.8 percent to $12.80 per 100 pounds in Chicago. Crude oil for April delivery dropped 1.4 percent to $79.55 a barrel in New York trading, falling for a third day. The April contract expires today.

To contact the reporter on this story: Justin Carrigan in London at [e-mail]

Last Updated: March 22, 2010 07:43 EDT

[Stock Lobster]

FXI: Asian Stocks Fall the Most in a Month on Concern Over Stimulus

By Shani Raja

March 22 (Bloomberg) -- Asian stocks fell the most in a month on concern the region’s central banks will boost efforts to curb inflation, and after an International Monetary Fund official said economies will struggle to tackle public debt.

BHP Billiton Ltd., the world’s largest mining company, lost 1.4 percent in Sydney as commodity prices slumped after India’s central bank unexpectedly raised interest rates last week. PetroChina Co., the nation’s biggest energy producer, dropped 2.7 percent in Hong Kong after agreeing to take over Australia’s Arrow Energy Ltd. Posco, Asia’s biggest maker of stainless steel, sank 3.3 percent in Seoul on speculation global demand will slow.

“Investors are increasingly jittery about the inflationary outlook and high levels of sovereign debt,” said Tim Schroeders, who helps manage about $1.1 billion at Pengana Capital Ltd. in Melbourne. “The IMF’s comments switch the spotlight to a medium-term limitation of the global economy.”

The MSCI Asia Pacific ex Japan Index fell 1.5 percent to 415.27 as of 7:24 p.m. in Tokyo, its biggest drop since Feb. 19. About four times as many stocks declined as advanced. The gauge gained 1.3 percent last week after the U.S. Federal Reserve pledged to keep borrowing costs near zero for an “extended period” and as the Bank of Japan expanded a bank-loan program.

Hong Kong’s Hang Seng Index fell 2.1 percent, the biggest decline among Asia-Pacific equity benchmarks, as developers dropped after Beijing suspended some land sales. South Korea’s Kospi Index lost 0.8 percent, Australia’s S&P/ASX 200 Index fell 0.9 percent, and China’s Shanghai Composite Index gained 0.2 percent. Japan’s markets were closed today for a holiday.

Rate Surprise

Futures on the Standard & Poor’s 500 Index fell 0.8 percent. The gauge declined 0.5 percent on March 19 as India’s surprise rate decision that day spurred speculation that withdrawal of economic stimulus policies will curtail global growth. India’s central bank raised interest rates for the first time in almost two years, saying that controlling price-gains was imperative after inflation accelerated to a 16-month high.

“India raising rates is seen as a precursor to other big- spending economies tightening fiscal measures, and we know how traders will react to that,” said Chris Weston, a Melbourne- based research analyst at IG Markets. “The narrative from the IMF shows it’s going to be a bumpy ride for 2010, but the potential pullback should also entice some fresh investment opportunities.”

‘Acute’ Challenges

Advanced economies face “acute” challenges in tackling high public debt, and unwinding existing stimulus measures won’t come close to bringing deficits back to prudent levels, John Lipsky, first deputy managing director of the International Monetary Fund, said in a speech yesterday at the China Development Forum in Beijing.

Materials-related companies fell the most among the 10 industry groups in the MSCI Asia Pacific ex Japan Index after crude oil retreated the most in three weeks in New York on March 19, slumping 1.9 percent to settle at $80.68 a barrel and copper futures dropped 0.7 percent to $3.3725 a pound.

BHP Billiton dropped 1.4 percent to A$42.59, and Rio Tinto Group, the world’s third-biggest mining company, lost 1.5 percent to A$75.03. Jiangxi Copper Co., China’s biggest producer of the metal, slipped 1.9 percent to HK$16.52 in Hong Kong.

Cnooc Ltd., the country’s biggest offshore oil explorer, sank 2.7 percent to HK$12.32, while in Sydney, Santos Ltd., Australia’s No. 3 oil and gas producer, dipped 1.2 percent to A$14.08. PT Bumi Resources, Asia’s largest exporter of power- station coal, fell 9.7 percent to 2,325 rupiah in Jakarta.

Commodities, Valuations

PetroChina slumped 2.7 percent to HK$8.97. The company and Royal Dutch Shell Plc agreed to buy Australian coal-seam gas producer Arrow Energy after raising their offer to A$3.5 billion ($3.2 billion). Arrow fell 3.6 percent to A$5.10 in Sydney.

Shipping lines dropped after the Baltic Dry Index, a measure of freight rates for commodities, had its first weekly decline in five weeks. Orient Overseas (International) Ltd., Hong Kong’s biggest container line, retreated 6 percent to HK$54.50. Hanjin Shipping Co., South Korea’s largest container- box carrier, lost 4 percent to 30,000 won.

Today’s drop in the MSCI Asia Pacific ex Japan Index wiped out its increase this year. Concern that governments will withdraw policies that have fueled economic growth, and that Greece will struggle to curb its deficit, has offset optimism from reports showing improving U.S. manufacturing and employment.

Shares in the Asian gauge trade at 14.4 times estimated earnings, compared with 15.1 times for the MSCI World Index. The world index has risen 1.5 percent this year.

‘Cause for Optimism’

“There is still cause for optimism,” said Pengana’s Schroeders. “Valuations overall remain attractive, bolstered by increasing levels of merger-and-acquisition activity as consolidation amongst companies in certain sectors continues.”

Posco sank 3.3 percent to 529,000 won in Seoul, while in Hong Kong, Aluminum Corp. of China Ltd. lost 4.1 percent to HK$8.06. Baoshan Iron & Steel Co., China’s largest publicly traded steelmaker, declined 1.1 percent to 8.19 yuan in Shanghai. BlueScope Steel Ltd., Australia’s biggest steelmaker, retreated 2.5 percent to A$2.75 in Sydney.

China Overseas Land & Investment Ltd., a developer controlled by China’s construction ministry, sank 3.8 percent to HK$16.32 in Hong Kong. Hang Lung Properties Ltd., which gets about 40 percent of sales from China, retreated 4.6 percent to HK$30.35 and was the biggest drop in the Hang Seng Index.

Beijing halted a land transaction in the city’s central business district as regulators decided to suspend some purchases to stabilize the property market, the Beijing News reported today, citing the Beijing Land Coordination and Reservation Center.

China’s property prices rose at the fastest pace in almost two years in February, fueling concern record lending and inflows of capital from abroad are creating asset bubbles in the world’s third-biggest economy.

“Record property prices in cities like Beijing and Shanghai are prompting the government to do something,” said Pauline Dan, Hong Kong-based chief investment officer at Samsung Investment Trust, which oversees about $77 billion in assets. “China is relying primarily on administrative measures to cool the property market and is delaying raising interest rates.”

To contact the reporter for this story: Shani Raja in Sydney at [e-mail].

Last Updated: March 22, 2010 06:26 EDT