NEW YORK |
NEW YORK (Reuters) - World equity markets rose on Friday as investor fears of euro zone turmoil following Greek elections this weekend were offset by talk the world's major central banks stand ready to make a coordinated response to ease any market dislocation.
The euro rebounded and U.S. stocks shrugged off a new batch of weak factory data, while U.S. consumer sentiment fell in early June to a six-month low, according to a survey.
But anxiety that Greece could fail to form a government after Sunday's elections led investors to raise their safe-haven bond holdings, driving up U.S. government debt prices.
A measure of market fear in the equities market, the CBOE Volatility Index, was up about 2 percent or more for most of the session, but closed down 2.6 percent at 21.12.
"Ahead of Sunday's election in Greece, central bankers stand ready, again," said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.
"With all the water central banks have expended out of their fire hoses over the past few years in their attempt to 'do something,' I can only think of magic candles. Those candles you blow out that only flare up again immediately after."
Central banks from Tokyo to London prepared for any turmoil following Greece's election, with the European Central Bank hinting at an interest rate cut and Britain set to open its coffers.
Officials from the Group of 20 major industrial and emerging nations told Reuters on Thursday that the top central banks stand ready to stabilize markets by providing liquidity if the election result causes financial upheaval.
A coordinated action is likely to support risk appetite, although any bounce could prove temporary given Spain's elevated borrowing costs and the risk of contagion to Italy, the euro zone's third-largest economy.
G20 leaders meet in Mexico on Monday and Tuesday as the results of the Greek vote and market reactions emerge.
On Wall Street, the Dow Jones industrial average closed up 115.26 points, or 0.91 percent, at 12,767.17. The Standard & Poor's 500 Index rose 13.74 points, or 1.03 percent, at 1,342.84. The Nasdaq Composite Index added 36.47 points, or 1.29 percent, at 2,872.80.
Earlier in Europe, the FTSE Eurofirst 300 index of top European shares closed up almost 1.0 percent, with European bank stocks climbing 1.8 percent.
MSCI's all-country world equity index rose 1.2 percent to 305.94, and emerging markets gained 1.4 percent.
Disappointing data showed a worsening U.S. economy, which increases the chance the Federal Reserve will announce an extension of its Operation Twist bond-buying program, or launch a new quantitative easing program when it meets next week.
"People came to realize that global central bank intervention will only emerge if something bad happens," said Douglas Borthwick, managing director at Faros Trading in Stamford, Connecticut.
"But, if the pro-bailout party wins in Greece on Sunday, that would be good news.
Yields on the 10-year U.S. Treasury note fell at one point to 1.564 percent, the lowest in about 10 days. The note later traded to yield 1.5807 percent, with prices up 18/32.
German Bund futures, another traditional safe haven, extended gains, accelerating their rise after the release of the U.S. economic data. Bund futures settled at 142.29, up 46 ticks on the day.
U.S. manufacturing output contracted in May for the second time in three months, the Fed said, and the New York Fed's "Empire State" index fell in June to the lowest level since last November. The Thomson Reuters/University of Michigan's index on consumer sentiment fell to 74.1 in June.
The euro hit a session low of $1.2590 (0.801 pence)against the dollar, but then rebounded and was up 0.1 percent at $1.2663.
The U.S. dollar index fell 0.6 percent to 81.488.
Brent crude edged up in thin trade, while U.S. crude seesawed near flat for most of the session. A weaker dollar, along with gains on Wall Street, lent some support to oil.
Brent crude settled 44 cents higher at $97.61 a barrel. U.S. crude rose 12 cents to settle at $84.03 a barrel.
Gold rose for a sixth consecutive session as investors bet on additional stimulus by central banks and hedged against uncertainty ahead of the Greek elections.
U.S. COMEX gold futures for August delivery settled up $8.50 at $1,628.10 an ounce.
CANADA STOCKS-TSX ends up ahead of Greek elections - Reuters UK
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Travel money or pre-paid currency card: which is best? - The Guardian
Prepaid currency cards are, their promoters claim, safer than carrying cash, give holidaymakers better exchange rates and are cheaper than using a debit or credit card abroad. But beware the small-print charges that can soon wipe out any savings the cards may offer.
This week Guardian Money compared the main players in the prepaid card market. They can offer good exchange rates, but we also found some with add-on ATM fees and "inactivity" fees that for many people will make them more expensive than using traditional debit cards.
What are they?
Prepaid currency cards look just like a credit or debit card. They tend to be issued by specialist money changing companies, such as Travelex and Caxton FX, and allow you to preload money from your bank account on to the card, fixed at that day's exchange rate. Lots of people think that the current euro/sterling rate is attractive at around €1.24 to £1. But others think it might go to €1.30 – or it just as easily go back to €1.15. With a prepaid card, you get the rate on the day you convert your cash.
Getting hold of a card is easy for anyone with a UK bank account. You normally apply online, choose the currency in which you would like your card denominated, load it with funds from your current account and wait for it to arrive in the post: typically five to seven days later. You can top up and check your balance online, by phone or, in some cases, by text.
Do you get better exchange rates?
Yes and no. According to comparison site mytravelmoney.co.uk, prepaid cards beat airport currency exchange rates by 8% and those offered by bureau de changes and travellers cheques by 4%. The comparison with your bank is less easy. Most banks use the Visa exchange rate applicable on the day, and then add a loading. At Lloyds bank, for example, if you use your card to buy something in El Corte Ingles (Spain's largest department store group) while on holiday, the bank will use the Visa exchange rate of the day plus a 2.99% fee. Use the ATM outside El Corte Ingles and it charges the Visa exchange rate, plus 2.99%, plus 1.5% of the amount withdrawn, with a minimum of £2 and a maximum of £4.50. But some banks have cheaper deals: moneysavingexpert.com recommends using credit cards Halifax Clarity and Santander's Zero. These are cheaper than using any prepaid card.
Which prepaid card gives the best-value exchange rate?
We did not check all the prepaid cards, just the major ones, and we only took a snapshot on one day (Monday 11 June). But we found quite a difference. FairFX and Caxton FX gave us much better exchange rates than MyTravelCash or Travelex (see table). But note that the exchange rate is just one way to judge these cards – there can be other fees on top (particularly FairFX's ATM fee) which should come into your decision.
Will banks give you a better deal?
We checked the Visa rate for 11 June, and found that once the typical bank loading of 2.99% is added the prepaid cards were cheaper, but not hugely so. The main saving is not on purchasing but on withdrawing cash at ATMs.
What are the other charges?
Lots. Some have a start-up fee of around £10. FairFX charges a fee for foreign cash machine withdrawals of €1.50 or $2, so don't use this card as a substitute for a debit card at a foreign ATM. "Obviously it costs more to withdraw small amounts of cash regularly, so we advise paying by card as much as possible in shops and restaurants and making just one or two larger cash withdrawals while away," a spokesperson said.
The major drawback with prepaid cards is if you leave a balance on them, say for your next holiday. Don't do it: you may have money swiped off your balance as an "inactivity fee". Both My Travel Cash and Travelex charge a £2 monthly inactivity fee once a card has not been used for 12 months. FairFX and Caxton FX do not.
Holidaymakers who haven't spent all their balance while away will want to redeem the unused currency at the end of the trip. Again there's a catch; you'll be charged a redemption fee of £1.50 (Caxton FX), £10 (FairFX), £5 (My Travel Cash) and £6 (Travelex).
I'm going off these cards. What other advantages might they have?
There is no overdraft facility so you cannot run up a debt on them. This allows you to budget exactly for the amount of money you want to spend while away.
Prepaid cards are typically linked to the Mastercard or Visa network and are protected, like bank cards, by a chip and pin system. But, unlike bank cards, they are not connected to your bank account or credit card account. So, if lost or stolen, fraudsters cannot get access to your money beyond that loaded on the card.
The obvious advantage over carrying large amounts of cash is that if your card is lost or stolen and you report it immediately, you can get a replacement card with any unused funds transferred for free (Travelex) or a fee: £3 (My Travel Cash); £5 (Caxton FX); £6 FairFX.
But you should treat a currency card like cash in a wallet. It's up to you to guard it and keep your pin secret. You won't get stolen funds refunded if, for example, you wrote down your pin for a thief to find with your card.
My Travel Cash also pays a 1% cashback on purchases abroad.
So should I get one?
A card such as Santander Zero or Halifax Clarity is probably better than these prepaid cards, but only if you are sure you will pay the balance off at the end of the month and not incur interest charges.
If you are not so disciplined a prepaid card can be a good way to budget – but only if you use up the entire balance on holiday. Don't leave any cash on the card – that's how they'll make money out of you.
Bank stocks raise London stocks higher - Financial Times
Last updated: June 15, 2012 5:10 pm
Stocks at 1-month high; now investors watch Greece - Seattle Times
Stocks recorded their third big gain of the week and closed at a one-month high Friday because of expectations that the central banks of countries around the world will step in to limit the damage from a debt crisis in Europe.
The Dow Jones industrial average climbed 115 points.
Now investors wait for a crucial election on Sunday in Greece that will help determine whether that country stops using the euro as its currency. Such an exit would destabilize financial markets.
Mario Draghi, president of the European Central Bank, said his institution stood ready to support Europe's banking system by continuing to lend money to solvent banks. He also appeared to leave open the possibility of an interest rate cut.
Draghi said in Frankfurt that the ECB has a "crucial role" in extending credit to banks in times of instability, when banks can't always borrow money on financial markets.
On Thursday, Reuters reported that ECB, the Federal Reserve, the Bank of England and other global financial authorities were ready to act in concert to limit the fallout from Greece.
Investors also are more confident about the election itself, said Peter Tuz, a money manager, at Chase Investment Counsel, which runs mutual funds.
"There's a growing sense of optimism," he said. "The betting now is that the `let's stay in the euro' segment of the population will win."
Borrowing costs for Spain were unchanged. They fell slightly for Italy, an indication that investors are feeling a little better about that country's solvency. They have been worried that Italy will have to seek financial rescue.
The Dow rose 115.26 points to close at 12,767.17, its highest finish since May 11. The Standard & Poor's 500 index climbed 13.74 points to 1,342.84, also its highest since May 11. The Nasdaq composite index rose 36.47 points to 2,872.80.
For the week, the Dow rose 0.9 percent, the S&P 1 percent and the Nasdaq 1.3 percent.
The week included four moves of 100 points or more for the Dow, the first time that has happened since April:
- On Monday, the Dow lost 142 points as enthusiasm faded for a $125 billion rescue of Spanish banks.
- On Tuesday, the Dow climbed 162 after a Federal Reserve official said he supported more measures to stimulate the economy.
- On Thursday, the Dow gained 155, primarily because of late reports about possible coordinated action by central banks.
Energy stocks rose the most Friday. OPEC oil ministers agreed Thursday to keep their production target steady, a compromise meant in part to soothe economically troubled countries.
A pair of weak economic reports helped push Treasury prices up and yields down.
A report on U.S. factory production showed a drop in manufacturing, a key driver of economic growth. A gauge of manufacturing in New York sank to its lowest level since November.
The yield on the 10-year Treasury note fell to 1.60 percent from 1.64 percent Thursday. Traders have been shifting money into the safety of the Treasury market ahead of the Greek election. That higher demand has kept yields near all-time lows.
Among stocks making big moves:
- Microsoft rose 68 cents, or 2.3 percent, to $30.02 following reports that the company is in talks to buy Yammer, a developer of social networks within companies.
- Capital One Financial rose 80 cents, or 1.5 percent, to $53.81 after the company said uncollectable and delinquent loans at its credit card business dropped last month.
- Defense contractor AAR plunged $1.23, or 10.6 percent, to $10.34. The company updated its forecast for fourth-quarter and fiscal-year earnings, and they were weaker than Wall Street expected.
- YPF, Argentina's state-controlled oil and gas producer, rose 72 cents, or 6.9 percent, to $11.17 after Mexican telecommunications billionaire Carlos Slim said he had acquired an 8.4 percent stake in the company.
Dow up 115 as stocks rally ahead of Greek election - MSN Money
Updated: 7:41 p.m. ETStocks rallied Friday, finishing higher for a second week in a row on relief that central banks around the world stand ready to ensure that global financial markets don't seize up after Sunday's parliamentary election in Greece.
The Dow Jones industrials ($INDU) gained more than 100 points for a second straight day, in part because of options and futures expirations.
The gains certainly had little to with the domestic economy. There was a larger-than-expected decline in industrial production in May, a significant weakening in a closely watched measure of consumer confidence and a decline in manufacturing growth in New York State.
The stakes in Greece are big enough that JPMorgan analysts believe that a victory by the conservative New Democracy party would boost the Standard & Poor's 500 Index ($INX) by 26 points, or about 2%, and add about 10 basis points -- a tenth of a percentage point -- to the 10-year Treasury yield, which finished today at 1.587%, down from Thursday's 1.611%. A win by the leftist Syriza Party would cut the S&P 500 by 3% from the S&P 500 and knock 12 basis points from the 10-year yield.
The Dow closed up 96 points to 12,748. The S&P 500 had added 12 points to 1,341, and the Nasdaq Composite Index ($COMPX) was sporting a gain of 34 points to 2,870.
Article continues below.
It was a week with interesting performances. Facebook (FB) jumped $1.72 to $30.01, its first finish above $30 since May 25 and a 10.8% gain for the week.
Banks jumped as central banks promised to ensure adequate liquidity on Monday and beyond.
Natural gas futures (-NG) fell back today but ended the week up 7.3% to $2.467 per million British thermal units, suggesting to many that gas has finally bottomed after falling to 10-year lows.
The Dow finished the week up 1.7%. The S&P 500 gained 1.3%, and the Nasdaq and Nasdaq-100 were up 0.5%.
For the year, the blue chips are up 4.5%, with the S&P 500 up 6.8% and the Nasdaq up 10.3%.
Bankers warn about Greece's threat
Central banks intensified warnings Friday that Europe’s failure to tame its debt crisis threatens the global economy as Greece’s election in two days looms as the next flashpoint for investors.
A victory by Syriza, the party that promises to renege on Greece’s end of the bailout, could speed the nation’s exit from the euro. The New Democracy Party has promised to stay in the eurozone and continue the country's austerity program, even as Greece suffers through a 5th year of recession.
Greek stocks actually had a big rally all week. The Athens Index COMPOS rose 13.7% to 560.26. While public polling on the election has been put on hold, private polls suggest the New Democracy party is leading. Spain's IBEX-35 Index ($ES:IBEX) rose 2.6%, but Italy's FTSE-MIB Index ($IT:FTSEMIB) slipped 0.4%.
The Group of 20 leaders prepare to gather in Mexico next week, and the Federal Reserve's Federal Open Market Committee meets Tuesday and Wednesday.
Some investors think the lackluster U.S. data increases the chances that the Federal Reserve will signal more easy money to counter slowing growth when it releases its policy statement after the meeting.
Meanwhile, international banking regulars were close to easing a requirement that banks maintain big cushions of liquid assets like cash and bonds that can survive market meltdowns and other crises, The Wall Street Journal said. The rule change would allow other assets, including gold and stock, to be counted as part of liquidity buffers.
Bank of America, Chevron lead the Dow
Microsoft (MSFT), up 68 cents to $30.02, contributed 5.1 points to the Nasdaq-100 gain on a Wall Street Journal report that it's buying Yammer, which builds internal social-networking sites for business. (Microsoft is the publisher of MSN Money.)
Microsoft was also the third-best performer among the 30 Dow stocks, following Bank of America (BAC) and Chevron (CVX). The laggards were Home Depot (HD) and Procter & Gamble (PG).
Energy, materials and technology were the strongest sectors of the market, but telecom and healthcare stocks are the strongest sectors for the week.
A total of 446 S&P 500 stocks were higher today. Natural-gas producer WPX Energy (WPX) was the top S&P 500 performer, rising 82 cents to $14.79. The gain came as natural prices moved nearly 8% higher for the week.
WPX was followed by telecommunications company Frontier Communications (FTR), up 21 cents to $3.93, women's accessorizer Fossil (FOSL), up $3.80 to $75.49 and travel site Expedia (EXPE), up $2.52 to $50.05.
Zimmer Holdings (ZMH), the maker of joint replacement devices, was the top S&P 500 performer for much of the day but finished 13th. Shares closed at $63.20, up $2.57, after rival Biomet reported a 3.4% gain in fiscal-fourth-quarter sales to $739.5 million. U.S. revenue was up 7%, privately held Biomet said. European revenue fell 8%.
The S&P 500 laggards were Southwest Airlines (LUV), down 27 cents to $8.93, and Rockwell Collins (COL), off $1 to $49.07.
Eighty-seven Nasdaq-100 stocks were higher, led by Nuance Communications (NUAN), up $1.17 to $21.85, and Expedia.
Whole Foods Market (WFM), Ross Stores (ROST), Kimberly-Clark (KMB), Dollar General (DG), Dollar Tree (DLTR) and Seattle Genetics (SGEN) were among stocks hitting all-time highs today.
Today was a Quadruple Witching day. That meant options for indexes and stocks and futures for indexes and options are expiring and generated more than-usual volume and helped stocks move higher.
Crude oil and gold move higher
Crude oil (-CL) rallied in late trading and settled up 12 cents to $84.03 a barrel. Crude fell slightly on the week. Brent crude was up 54 cents to $97.51 a barrel.
The national average price of gasoline fell to $3.524 a gallon Friday from Thursday's $3.532, AAA's Daily Fuel Gauge Report said. That brings the decline in unleaded gasoline to about 10.5% since peaking in early April, though the price is still up 7.6% on the year.
Gold (-GC) settled up $8.50 to $1,628.10 an ounce. Silver (-SI) closed up 33.3 cents to $28.74 an ounce, and copper (-HG) finished up 2.9 cents to $3.3835 a pound. For the week, gold was up 2.3% and is up 3.9% for the year. Silver rose 0.9% for the week, while copper was up 3%.
Interest rates were lower, despite the dollar's moving lower against the euro.
| Short hits from the markets -- New York close | ||||||||||||
| Fri. | Thur. | Month chg. | YTD chg. | |||||||||
| Treasury yields | ||||||||||||
| 13-week Treasury bill | 0.0900% | 0.100% | 28.57% | 800.00% | ||||||||
| 5-year Treasury note | 0.678% | 0.720% | 1.04% | -18.31% | ||||||||
| 10-year Treasury note | 1.587% | 1.611% | 0.38% | -15.18% | ||||||||
| 30-year Treasury bond | 2.694% | 2.708% | 0.82% | -6.75% | ||||||||
| Currencies | ||||||||||||
| U.S. Dollar Index | 81.605 | 81.988 | -1.83% | 1.34% | ||||||||
| British pound | 1.5625 | 1.5559 | 1.38% | 0.56% | ||||||||
| (in U.S. $) | ||||||||||||
| U.S. $ in pounds | £0.640 | £0.643 | -1.36% | -0.56% | ||||||||
| Euro in dollars | $1.26 | $1.26 | 2.11% | -2.59% | ||||||||
| (in U.S. $) | ||||||||||||
| U.S. $ in euros | € 0.792 | € 0.792 | -2.06% | 2.66% | ||||||||
| U.S. $ in yen | 78.93 | 79.41 | 0.47% | 2.37% | ||||||||
| U.S. $ in Chinese | 6.39 | 6.37 | 0.18% | 1.05% | ||||||||
| yuan | ||||||||||||
| Canada dollar | $0.977 | $0.978 | 0.90% | -0.39% | ||||||||
| (in U.S. $) | ||||||||||||
| U.S. dollar | $1.024 | $1.023 | -0.90% | 0.39% | ||||||||
| (in Canadian $) | ||||||||||||
| Commodities | ||||||||||||
| Gold (-GC) | $1,628.10 | $1,619.60 | 4.09% | 3.91% | ||||||||
| (per troy ounce) | ||||||||||||
| Copper (-HG) | $3.384 | $3.355 | 0.53% | -1.53% | ||||||||
| (per pound) | ||||||||||||
| Silver (-SI) | $28.7400 | $28.4070 | 3.54% | 2.96% | ||||||||
| (per troy ounce) | ||||||||||||
| Wheat (-ZW) | $6.0950 | $6.2350 | -5.32% | -6.63% | ||||||||
| (per bushel) | ||||||||||||
| Corn (-ZC) | $5.7950 | $6.015 | 4.37% | -10.36% | ||||||||
| (per bushel) | ||||||||||||
| Cotton | $0.7088 | 0.703 | -1.35% | -22.69% | ||||||||
| (per pound) | ||||||||||||
| Coffee | $1.5200 | 1.5105 | -6.72% | -33.81% | ||||||||
| (per pound) | ||||||||||||
| Crude oil (-CL) | $84.03 | $83.91 | -2.89% | -14.98% | ||||||||
| (per barrel) | ||||||||||||
Stocks Rally; Nothing Greece Can Do the Fed Can’t Do Better - Wall Street Journal
By Paul Vigna
If anything is going on Sunday besides Father’s Day, you wouldn’t know it from looking at the U.S. stock market.
Stocks rallied again on Friday, capping off two weeks of sharp gains ahead of what everybody says is a critical election on Sunday for Greece, which could not only decide its future within the euro zone, but the future of the euro zone itself. Given that the European Union collectively is the world’s largest economy, this should have the market’s attention.
But it doesn’t, apparently, and the main reason is because the market’s got a bout of stimuli-induced amnesia. Simply put, the markets believe that the world’s big central banks, primarily the Fed and ECB, will step into any breach opened up by the Greek election.
The Dow gained 115 (0.9%) to 12767 today, rising 1.7% on the week. The S&P 500 rose 14 (1%) to 1343, right above 1340 that represents a technical resistance range. A relief rally on Monday could smash it. The Nasdaq Comp gained 36 (1.3%) to 2873.
Since bottoming in early June, the Dow’s up about 5.5%. Now, keep in mind the important caveat that the volume’s been low this whole run. Still, somebody’s out there buying.
Nothing good happened today to get stocks so juiced. A trio of data points — the New York Fed’s Empire State survey and reports on industrial production and consumer sentiment — all showed a weakening economy. Germany reiterated that it will not renegotiate Greece’s bailout, no matter who wins Sunday. A stare-down seems imminent.
But for the market, it’s relatively simple. There are three broad outcomes for Greece: the pro-bailout parties win, the anti-bailout party wins, or its another deadlock. The first is good for the markets, the other two are bad — unless those bad outcomes spur the Fed or ECB into action. That’s the thinking in the market, at least.
“Don’t think this is Greece,” Stifel Nicolaus trader David Lutz said, “I think it’s Ben next week. Either way, with or without QE – It seems priced in, thus may be a ‘sell-the-news’ event.”
The fundamentals of the situation are far different. No matter what happens Sunday, Greece’s future within the euro is questionable. While the nation is largely seen as the first in a line of dominoes, its importance isdiminishedwhen you consider that two larger dominoes down the line, Spain and Italy, are falling all on their own.
Nothing that happens Sunday is going to save Spain’s banks, or drive down Italy’s debt load. It may buy the eurocrats more time, something at which they’ve become expert. But fundamentally the European crisis comes down to a choice: toward the United States of Europe, or a break-up of the euro fellowship. A moment of reckoning will come, and it may be indistinguishable from the much-feared “Lehman moment.”
The only question is when.
Gains in financial stocks push up European equities - Reuters UK
* FTSEurofirst 300 index rises 0.5 percent in early trade
* Financials stocks lead market rally
* Hopes that central banks deal with any Greek vote fallout
LONDON, June 15 (Reuters) - European shares advanced on Friday as financial stocks rose on expectations of new central bank measures to deal with the risk of a Greek exit from the euro zone.
The FTSEurofirst 300 index was up 0.5 percent at 987.46 points by 0745 GMT. Germany's DAX was up 0.9 percent, while France's CAC-40 index rose 1 percent.
Investors are wary ahead of elections in Greece on June 17, which could determine the future of the debt-ridden country in the euro zone currency bloc.
Officials from G20 nations told Reuters on Thursday that central banks were ready to take steps to stabilise financial markets, if needed, by providing liquidity and preventing any credit squeeze after Sunday's election.
The signal that world authorities were ready to take steps to prevent any worsening of Europe's debt crisis supported European financial shares on Friday, which have fallen sharply in recent weeks due to their exposure to Greece.
The STOXX 600 European bank index rose 1.6 percent, while the European insurance index gained by 1.3 percent.
However, Securequity sales trader Jawaid Afsar said he would be tempted to sell off shares later on Friday, in order to minimise any hits to portfolios in case of any unforeseen outcomes from the Greek election.
"If you're already in the rally, you should use the rally to start closing out your positions to reduce the risk ahead of Sunday," he said.
JN Financial trader James Fogden also said the European equities market rally could peter out later in the day, with an expiry of options contracts due at 1000 GMT also likely to make the trading session a volatile one.
"We could see a bit of a pull-back later," he said.
The FTSEurofirst has been within a tight trading range between 970 and 990 points established in early May, and traders said it was likely to remain in that range while uncertainty over the euro zone debt crisis persisted. (Reporting by Sudip Kar-Gupta; Editing by Louise Ireland)
Liverpool owner John Henry plays down financial impact of new stadium - The Independent
The lead figure in Fenway Sports Group has suggested a new-build in Stanley Park would most likely lead to increased ticket prices, quoting recent examples taken from the United States.
Henry believes the best way of improving the Reds' ability to compete financially is through worldwide commercial revenue streams and their long-term future is not dependent on the stadium issue, which casts doubt over whether the long-mooted Stanley Park project will ever come to fruition.
"A long-term myth has existed about the financial impact of a new stadium for Liverpool," the American wrote in an email to The Anfield Wrap website.
"A belief has grown that Liverpool FC must have a new stadium to compete with (Manchester) United, Arsenal and others.
"No-one has ever addressed whether or not a new stadium is rational.
"New stadiums that are publicly-financed make sense for clubs - I've never heard of a club turning down a publicly-financed stadium.
"But privately carrying new stadiums is an enormous challenge. Arsenal is centred in a very wealthy city with a metropolitan population of approximately 14 million people.
"They did a tremendous job of carrying it off on a number of levels but how many new football stadiums with more than 30,000 seats have been built in the UK over the past decade or so?
"New stadiums increase revenues primarily by raising ticket prices - especially premium seating."
Henry accepts there is a balancing act to be done when considering the worth of a new stadium against a redevelopment of Anfield, which presents numerous logistical problems.
"We've been exploring a new stadium for the past 18 months. At one point we made it clear that if a naming rights deal could be secured of sufficient size, we would make every effort to build a new facility," he added.
"Liverpool FC has an advantage in being a global club and a naming rights deal could make a new stadium a reality.
"It is something we are working on. There has been interest.
"Going in the other direction, many football clubs have successfully enlarged their seating capacity.
"LFC has had plans to expand the main stand at Anfield but this avenue has been very difficult for the club over the past couple of decades.
"There are homes behind the main stand. Expansion of the main stand would have to be a priority for the city, community and immediate neighbourhood in order for that to occur.
"This issue is vital to the neighbourhood's future but we cannot and will not act unilaterally.
"While a new stadium or an expansion of Anfield is beneficial over the long-term for the club, the financial impact of adding seats and amenities should be put into perspective.
"That's why I say that it is a myth that stadium issues are going to magically transform LFC's fortunes.
"Building new or refurbishing Anfield is going to lead to an increase from £40million of match-day revenue to perhaps £60-70m if you don't factor in debt service.
"That would certainly help but it's just one component of LFC long-term fortunes.
"Our future is based not on a stadium issue but on building a strong football club that can compete with anyone in Europe.
"This will be principally driven financially by our commercial strengths globally."
PA
No comments:
Post a Comment