What will happen tomorrow? (1/3/07)

[bean]

UP - US markets will probably rise. we will rise and uramium stock some will be O/K. The US market will fall and correct not just yet though. was ovebought but some pressure taken of that
If it was to fall or falter the next two days then a correction would be happening.
I think DOW futures up 100 points

 

[robandcoll]

China's Stocks Climb, Cutting Losses; China Yangtze Advances

By Zhang Shidong

Feb. 28 (Bloomberg) -- China's stocks climbed, cutting some of yesterday's losses, after official media reports said the government won't impose capital gains taxes on stocks and will allow overseas investors to buy more domestic equities.

China United Telecommunications Corp. and China Yangtze Power Co., owner of the world's biggest hydropower project, led gains among stocks that plunged yesterday on concern a government crackdown on investments with borrowed money would end a rally that drove benchmarks to records.

``Confidence is regaining now after the rumors that hit the market yesterday,'' said Lu Yizhen, who helps manage about $640 million at Citic-Prudential Fund Management Co. in Shanghai. ``For the long-term, China's stocks still point to an upside trend.''

The Shanghai and Shenzhen 300 Index, which tracks yuan- denominated A shares listed on China's two exchanges, advanced 3.5 percent to 2542.95 as of 2:55 p.m. local time. It earlier fell as much as 1.8 percent. The measure plunged 9.2 percent yesterday, the most since 1997.

The Shanghai Composite Index rose 3.9 percent to 2880.57, while the Shenzhen Composite Index gained 4 percent to 738.28.

The 300 index is valued at 38 times earnings, compared with 15 times for the Morgan Stanley Capital International Emerging Markets Index. The Dow Jones Industrial Average yesterday tumbled as much as 546 points, the most since the first trading day after the Sept. 11, 2001, terrorist attacks.

The government said it won't impose a capital gains tax on stock investments, the Shanghai Securities News reported, citing unidentified officials at the finance ministry and tax bureau.

Meanwhile, China may allow qualified foreign investors to buy as much as $120 billion of domestic equities, an equivalent to 10 percent the value of China's stock market, the Oriental Morning Post reported, citing unidentified regulatory officials.

Overseas investors are currently restricted to owning $9.95 billion of mainland shares, less than 1 percent of the total market.

To contact the reporter on this story: Zhang Shidong in Shanghai at at szhang5@bloomberg.net

Last Updated: February 28, 2007 01:55 EST

 

[CanOz]

If Hong Kong and Japan dont care about what is happening in China today, what makes you think the US will?

China was just the trigger. You only need one trigger. Now the correction will feed on itself.

And its healthy for the market to have a correction once in a while maybe 8-10% off the XJO, before we are back into the strong uptrend.

:iagree:

 

[steven1234]

I expect a rise tomorrow.

There are too many bargains to jump on at the moment and there is too much liquidity waiting to jump into the market. Most of my holdings took a decent hit today but recovered quite well (all things considered).

I wish i had some more cash laying around to take advantage of some of the bargains popping up througout the day.

 

[mmmmining]

It is tough to pick market movement correctly for one day. But I believe all the mining profit will keep Aussie economy engine running well, and super money will keep flow into the stock market.

Chinese correction is not related to underline strength of economic activity, but deflation of a bobble caused by restriction of pension fund's investment, and extremely money over supply.

The average Chinese has so much saving, and so much cash. They want better return from saving account. I read report that ordinary Chinese are line up to open stock trading account recently. Last time it happened is 1998-2001 before the stockmarket took downturn in 2002.

My predication s that the Chinese bull market will last till the beginning of 2008 Olympic Games. It will be my cash in time for my stock portfolio in ASX...

I am more worry if commodity price take a big hit.

 

[vicb]

http://www.theedgedaily.com/cms/con...e.Article_7496e9d0-cb73c03a-11a0d350-9bf26694

China shares rebound 3.9% after Feb 27's plunge


China's main stock index rebounded nearly 4% on Feb 28, recovering more than a third of losses suffered on Feb 27, when it posted its biggest fall in a decade.

The Shanghai Composite Index, which unsettled markets around the world by plunging 8.84% on Feb 27, closed 3.94% higher at 2,881.073 points in heavy trade. It was less than eight points off its intra-day high.

Local mutual funds, believing Feb 27's rush to take profits at record high levels did not herald the start of a longer-term bear market in Chinese stocks, poured back into financial blue chips, traders said. -- Reuters

Will be interesting to watch wall street

 

[mmmmining]

The bear party is still on, all European markets are down 1-2%

 

[bean]

DOW FUTURES RISING
http://www2.barchart.com/mktcom.asp?code=BSTK&section=indices

 

[Freeballinginawetsuit]

The European Markets are just killing time till the US markets open>spike either way accordingly. Up IMO, probably just a knee jerk bounce....lets see!

Need a bit of time for the dust to settle and if it were that easy to call, everyone would have been punting today

 

[bean]

DOW FUTURES RISING MORE

 

[chris1983]

Im picking a recovery tonight on the DOW. Lots of bargains there atm. Another article below for those who like to read.

http://www.iht.com/articles/ap/2007/02/28/business/AS-FIN-China-Stocks.php

 

[56gsa]

Was in meetings all day and missed all the excitement.

But a bit perplexed about why a correction on an over-heated exchange that probably still does not really reflect the country's economic situation (it languished for 6 years when the country was growing at 10%?!).

What it does reflect is China's immature financial system that has not been tested by shocks and the like... eg China's notoriously indebted banking system, but then China has ways of dealing with these situations that others don't - eg the state steps in...

Market to cautiously rise tomorrow.

US situtation far more significant to global markets.

 

[eMark]

DOW FUTURES RISING MORE

I've noticed that too, somehow it doesn't appear right. I thought the current 100+ futures may have something to do with (making up for?) the glitch which caused the DOW to fall 200 in 5 minutes.

 

[Garpal Gumnut]

Tomorrow, the sun will rise, the birds will sing and the temperature will rise.

Today should have been planned for by all traders/investors., whether short , medium or long term.

Who knows what the market will do.

Plan for all eventualities

Garpal

 

[Halba]

By tomorrow afternoon it'll bottom and there will be green.

FTSE down 95-100pts, but it looks near bottom to my eyes.

 

[Knobby22]

Bears will have to buy tomorrow to cover their shorts or they will lose them.

 

[PhoenixXx]

Hopefully we would see green tomorrow as Shanghai market recovered. Australian market which is driven by resources should at least bounce from today's tumbling.

Shanghai Composite China 2,881.073 6:00PM AEST 109.282 (3.94%)

 

[sydney1963]

Hopefully we would see green tomorrow as Shanghai market recovered. Australian market which is driven by resources should at least bounce from today's tumbling.

Shanghai Composite China 2,881.073 6:00PM AEST 109.282 (3.94%)

Please go to

http://www.cnbc.com/

 

[YOUNG_TRADER]

If Hong Kong and Japan dont care about what is happening in China today, what makes you think the US will?

China was just the trigger. You only need one trigger. Now the correction will feed on itself.

Wise words, very very wise words and I couldn't agree more, it was a case of any excuse will do.

I think we won't know which way its all going till Monday

 

[chansw]

European shares pare losses, US futures up
Wed Feb 28, 2007 5:53am ET

http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2007-02-28T105252Z_01_L28708788_RTRIDST_0_MARKETS-EUROPE-STOCKS-RECOVERY-URGENT.XML&rpc=66&type=qcna

LONDON, Feb 28 (Reuters) - European shares halved earlier losses on Wednesday to trade less than 1 percent lower as corporate news and re-emerging takeover talk boosted markets, and U.S. index futures rose.

At 1041 GMT, the FTSEurofirst 300 index <.FTEU3> of top European shares was down 0.95 percent at 1,491.86 points, up from an intraday low of 1,473.66.

French group Carrefour (CARR.PA: Quote, Profile , Research) rose 2.8 percent on market talk of a leveraged buyout, while Volkswagen (VOWG.DE: Quote, Profile , Research) led German gainers with a 2.5-percent rise on strong results from its Audi unit.

"Should the markets have been down 3 percent yesterday? Probably not. So, it's just a matter of people adjusting to what's been going on since yesterday," a trader at a French brokerage said.

Dow Jones industrial average <DJc1>, Nasdaq <NDc1> and the S&P 500 <SPc1> futures were all up around 1 percent after a sharp slide in U.S. markets on Tuesday.