ASEAN KEY DESTINATIONS
ASEAN is a Strong Buy Monday
ASEAN Markets will fair poorly this monday as foriegn investors will eit markets based on a failure of the US economy to add more jobs. This represents a key buying opportunity in ASEAN.
ASEAN is growing now both externally and internally, so the falls expected monday will give long term investors a discounted entry in to some of the world’s most exciting companies.
The US Labor Department said today that payrolls increased by 431,000 in May, trailing the median economist forecast of 536,000. Goldman Sachs Group Inc. raised its prediction to 600,000 yesterday. Private employers added 41,000 positions, 139,000 less than estimated.
U.S. and European stocks and commodities slid, while Treasuries rallied, as lower-than- estimated American job growth and a worsening government debt crisis fueled concern the global economic recovery will slow. Hungary’s currency, equities and bonds plummeted.
Dow 9,931.22 -324.06 (-3.16%)
The Standard & Poor’s 500 Index dived 3.44 percent in New York and the Dow Jones Industrial Average fell below 10,000. The Stoxx Europe 600 Index lost 1.8 percent. Oil fell 3.5 percent to near $72 a barrel, while tin sank 9.5 percent. Ten-year Treasury yields decreased 16 basis points to 3.20 percent. The euro slid below $1.20 for the first time since March 2006 and the yen strengthened against 16 major counterparts. The forint tumbled to a 15-month low against the dollar on concern Hungary may default.
Profits for companies in the S&P 500 are forecast to rise 17 percent to a combined $81.34 a share in 2010, according to estimates from more than 2,000 analysts. That implies a price-earnings ratio of about 13.2, compared with an average multiple of 20.4 over the previous two decades.
Profits for companies in the S&P 500 are forecast to rise 17 percent to a combined $81.34 a share in 2010, according to estimates from more than 2,000 analysts. That implies a price-earnings ratio of 13.4, compared with the average multiple using reported results of 20.8 since April 1991.
The MSCI World Index of stocks in 24 developed nations fell 2.9 percent, the most in two weeks. Most shares in Asia fell before the U.S. jobs data, sending the MSCI Asia Pacific Index down 0.2 percent. Mining companies declined in Asia after the world’s two largest copper producers, Codelco and Freeport- McMoRan Copper & Gold Inc., said China’s plans to curb growth will lower demand for the metal. Baoshan Iron & Steel Co. fell 1.1 percent after Shanghai Securities News said the company will cut prices. Hynix Semiconductor Inc. rallied 6 percent in Seoul on a credit-rating upgrade and higher memory-chip prices.
Copper fell for a fifth day in New York, heading for the longest slump since December. The metal slid 4.9 percent to $2.8035 a pound. The Reuters/Jefferies CRB Index of commodities tumbled 2.3 percent.
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