First the World Cup, instead of looking at computer screen, most people will look at big screen holding beers and cheering with friends at cozy bars or minum teh tarik under the pondok.
As summer season is already here, big western investors already started to pack their bags heading to nice beaches or hosting barbeque at their holiday homes. When lack of directions, most people will sit still -- kind of like self fulfillment prophecy. Just flip through the newspaper, no exciting news. Even there is, the writers seem to be exhausted and unable to excite readers.
The European debts fear triggered many governments to seize the moment talking tough. We got to keep our public finance in control. You can hear it from the Great Britain to Japan, West to East so to speak. This rattles investors or gamblers a bit as reduction of public spending will slow the world economy. People tend to overreact especially they think consumer spending surely will go down. In case you have not been following on the Malaysian second hand car market, prices are going up. Used Nissan Fairlady gone up by 10%.
Some good news have been ignored.
The US factory orders have been improving months after months. Some argue, we are at the restocking cycle. It will fade away but don't forget restocking is part of the economy recovery and normally will go on for a while(2-3 years). This is quite a telling sign that the world economy is recovering.
The US consumer sentiments have been improving months after months again.
Lastly, the US financial sector, a chunk of the index, had taken the beating very hard started to rise. Things does not look so bad as originally imagined, as always.
(Reuters)Banks climbed after lawmakers agreed on rules that did not make dramatic changes to derivatives and proprietary trading, two highly profitable businesses in lawmakers' crosshairs. The bill must still be approved by both chambers of Congress before it can be signed into law.
JPMorgan Chase & Co (JPM.N) rose 3.7 percent at $39.44 while Bank of America Corp (BAC.N) gained 2.7 percent to$15.42.
The S&P financial sector .GSPF, which is down 8.4 percent over the past quarter, rose 2.8 percent.
"Regulation is less onerous than people's fears, so you're seeing a bit of a relief rally in the financials today, which obviously is helping," said Michael James, senior trader at Wedbush Morgan in Los Angeles.
Oracle Corp (ORCL.O) gained 1.7 percent to $22.60 a day after it posted a stronger-than-expected quarterly profit on solid sales of new software.
"This could be a sign of a pick-up in tech spending, which may mean other tech firms are going to report strong numbers," said Andy Fitzpatrick, director of investments at Hinsdale Associates in Hinsdale Illinois.
http://www.reuters.com/article/idUSTRE65L1KF20100625
PS, thanks for coming back to check on my "boutique blog" frequently despite of very low activities by Turtle. Turtle appreciates your support very much.
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