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  1. #81
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    Post Big ups and downs give daytraders a way to thrive

    (Reuters) - These days, every day in the market is an adventure. But some daytraders are making a killing, taking advantage of wild market swings that have scared off even strong-stomached investors.

    The Dow industrials have traded in a range of 400 points every day in the last five days, while the CBOE Volatility index has more than doubled from a recent closing low on July 22.

    Fear has increased alongside signs of slowing growth and an unprecedented downgrade of the U.S. credit rating by Standard & Poor's. But swings have gone both ways: the S&P recently posted not only its worst day since 2008, but also its best.

    "I trade the way the market tells me. And if you're like that, this is one of the best markets you'll ever have," said Joe Donohue, money manager at Dimension Trading in Red Bank, New Jersey, a proprietary trading services firm.

    Donohue said his focus is more short-term to play this market. A few weeks ago he held positions for two or three days, but now he closes out positions at the end of a session.

    "If you need to play, be squared out at the close," he said. "Don't carry much exposure overnight because you could be long and then have a 400-point drop at the open ... We're in such a risky market that anything could come out of Europe or Asia to change things completely."

    Daytraders take a short-term outlook on the market, holding positions for less than a day. They often sell securities short to profit from both upward and downward movements, bringing the chance of big wins, or equally large losses.

    Donohue said he primarily traded in the Direxion Daily Small Cap Bull 3X Shares ETF, which seeks returns of 300 percent of the daily performance of the Russell 2000, and the Direxion Daily Small Cap Bear 3X Shares ETF, which is trice-short the Russell, tapping into market volatility.

    On Tuesday afternoon, markets swung madly as investors parsed comments from the U.S. Federal Reserve pledging two more years of near-zero interest rates. Indexes reversed course six times before ending more than 4 percent higher.

    "After the market dipped, I sensed there would be a move to the upside so I went long," Donohue said. In Wednesday's similarly volatile session, "I was long in the morning then went to TZA late in the day."

    BELLE OF THE BALL

    Donohue isn't the only trader embracing favorite names to avoid the fluctuations of the broader market.

    "Right now the belle of the ball is the FactorShares 2X: Gold Bull/S&P500 Bear ETF," said Joshua Brown, vice president of investments at Fusion Analytics in New York, referring to a fund that is double-short S&P futures and double-long gold prices.

    Volume on the fund has surged in recent sessions, with the 10-day moving average more than triple the 50-day average.

    It "was built for this moment," Brown said of the fund, which is up 76 percent from its July 1 recent closing low. "The chart looks like the Empire State Building."

    Of course, the velocity of the changes in market direction means traders who are not nimble can get caught on the wrong side of a trade, exposing themselves to massive losses.

    The FactorShares fund "is a momentum heavy story," Brown said. "if you're not quick on it, it's the kind of instrument that can wipe you out."

    With sudden moves between gains and losses an ever-present concern, traders do what they can to find an edge.

    SEIZE THE MOMENT

    Chicago-based Bright Trading trains its traders to manipulate mechanics like the opening gap, where they take advantage of price gaps in the initial trading of the stock.

    "The other day General Electric Co opened and moved up 40 cents within 60 seconds," said Donald Bright, one of the firm's directors.

    "Traders made thousands of dollars on it right then, and when you see openings where the market moves 300 points, the returns are even bigger... Lately we've had the best days on (opening gap plays) that we've had in maybe a year."

    Toward the close, the firm looks to take advantage of order imbalances, which are published 15 minutes before the market session ends and suggest which side of a trade will have greater demand.

    Knowing the imbalance gives an edge that "works a lot of the time," Bright said. "Experienced traders at our firm dream of days like this," he added. "They make more in a week than they do in a month, normally."

    But the recent price action can be too much of a good thing, even for traders who thrive on fast swings.

    "I love volatility, But I don't think we wanted to get to this level of volatility every day," said Tony Battista, who co-anchors Chicago-based Tasty Trade's how-to show on trading techniques and was a market maker for 25 years.

    "You don't like for the market to have this type of percentage move in a day," he added. "That's something nobody wants to see, even volatility buyers."

    Battista's solution to trading losses was simple -- do something to change his luck. "I changed my pen this morning," he joked. "I had a $2 pen. I went to a 15-cent pen. It's back to basics now."

  2. #82
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    Thumbs up EmpireGlobalfx launches slippage control feature and EUR based accounts.

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  3. #83
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    Post China urges action on EU and U.S. debt, to keep yuan policy

    (Reuters) - China is worried about challenges that the European Union faces in the next two months and urged the bloc as well as the United States to hold down government debt, its trade minister said on Friday.

    Speaking at a meeting of Southeast Asian trade ministers, Chen Deming called on governments in the United States and Europe, China's top two trading partners, to act responsibly and get their fiscal houses in order.

    "We support stabilizing measures taken by relevant countries, but we hope these countries will take measures to control their government debt proportion and take bigger responsibilities," Chen said.

    "We are also concerned about new challenges facing European countries in August and September," he said, but did not elaborate.

    His remarks echo recent comments from Beijing, which has invested nearly all of its $3.2 trillion foreign exchange reserves, the world's largest, in dollars and euros and would loathe to see the currencies plummet on economic problems.

    World financial markets have swung wildly in the past week on fears that Europe cannot contain its debt crisis and after a downgrade of the U.S. sovereign credit rating, which amplified concerns that the U.S. economy may slide back into another recession or a prolonged period of meager growth.

    U.S. Deputy Trade Representative Demetrios Marantis, attending the meeting, said the United States was now on a path toward fiscal discipline, following a deal this month to lift its debt ceiling.

    He brushed off concerns by trade ministers at the meeting worried about weaker U.S. demand for Asian goods.

    "The U.S. is the biggest market in the world and will continue to be a driver of global growth," he told Reuters.

    STRONGER YUAN

    The U.S. Federal Reserve has vowed to maintain interest rates near zero until 2013 to prop up its economy, and Chen said Asian governments should work together to monitor the impact, after funds seeking higher yields have driven up Asian stocks and currencies in the past year.

    Chen noted the world was still struggling with the excess cash left behind by the loosening of monetary and fiscal policies during the 2008 financial crisis, which was "like taking medicines that will have a side effect."

    "Where would the excessive liquidity flow to? Commodities, stock markets or bond markets? We are not quite sure yet," Chen said.

    On the yuan, a controversial issue among China and its trade partners, Chen reiterated Beijing's usual refrain that the currency should only rise gradually and said it will stick to restructuring reforms of the domestic economy.

    "We will also stick to gradual and steady currency reform," he told Reuters, adding that yuan volatility would be greater when global markets were jumpy. "But looking from a longer term perspective, the yuan currency policy will not change."

    Chen's remarks come amid market talk that China may be about to shift its policy stance on the yuan soon after guiding the currency to a series of record highs. <CNY/>

    A flurry of Chinese media reports that predicted speedier gains in the yuan have also fueled speculation.

    China keeps the yuan on a tight leash as it worries any sharp gains could hurt its exports and weigh on the world's second-biggest economy.

    Its trade partners, however, accuse Beijing of deliberately suppressing the yuan for trade advantage, an allegation that China has always denied.

    Indeed, new data from Washington that showed the U.S. trade gap with China grew almost 12 percent in the first six months of 2011 could fuel efforts in Congress to get tough with China's currency practices.

    By contrast, export-dependent Southeast Asian countries, whose currencies have risen along with the yuan, would prefer to avoid a rapid rise in the Chinese currency which could curb their export competitiveness.

    "That's a problem for everyone," Surin Pitsuwan, the secretary general of regional bloc ASEAN, told Reuters.

  4. #84
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    Post Stock futures signal retreat for equities

    (Reuters) - U.S. stock index futures pointed to a weaker open on Wall Street on Friday after sharp gains in the previous session, with futures for the S&P 500, for the Dow Jones and for the Nasdaq 100 down 0.8 to 0.9 percent.

    The Commerce Department releases July retail sales data at 8:30 a.m. EDT. Economists in a Reuters survey expect a 0.5 percent rise compared with a 0.1 percent increase in June. Excluding automobiles, sales are expected to rise 0.2 percent versus a flat reading in June.

    Thomson Reuters/University of Michigan Surveys of Consumers release preliminary August consumer sentiment index at 9:55 a.m. EDT. Economists expect a reading of 63.0 compared with 63.7 in the final July report.

    Bank of America Chief Executive Brian Moynihan met privately this week with Treasury Secretary Timothy Geithner and Federal Reserve governor Daniel Tarullo amid the campaign to calm investors and employees about the bank's share price fall, the Wall Street Journal reported.

    The Commerce Department issues Business Inventories for June. Economists in a Reuters survey expect a 0.5 percent increase versus a 1.0 percent rise in May.

    At 10:30 a.m. EDT, Economic Cycle Research Institute (ECRI) releases its weekly index of economic activity for August 5. In the prior week the index read 128.3.

    China's yuan currency looks set for a speedier rise against the U.S. dollar in the coming months as Beijing tries to tamp down inflation and reduce its exposure to U.S. and European debt, Chinese media and traders said on Friday.

    Dollar funding costs edged up on Friday, hovering around the highest levels since the 2008 financial crisis, as markets saw Europe's move to ban short-selling of shares as only a temporary fix that would not address deteriorating conditions within the euro zone.

    Korean company Samsung Electronics will go to a German court on August 25 to try to overturn a ban on it selling flagship Galaxy tablets in most of the European Union. Earlier this week, a Duesseldorf court temporarily barred Samsung from selling its tablets, following an injunction filed by Apple which had said the Galaxy line of mobile phones and tablets "slavishly" copied its iPad and iPhone.

    Department store chain J.C. Penney is set to announce results.

    The FTSEurofirst 300 index of top European shares was up 0.7 percent on Friday, extending the previous session's gains of 2.7 percent.

    U.S. stocks shot up 4 percent on Thursday as bargain-hungry investors overcame the recent wave of fear that drove selling over the last two weeks.

    The Dow Jones industrial average surged 423.37 points, or 3.95 percent, to 11,143.31. The Standard & Poor's 500 Index shot up 51.88 points, or 4.63 percent, to 1,172.64. The Nasdaq Composite Index jumped 111.63 points, or 4.69 percent, at 2,492.68.
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    Post Italy austerity plan draws wide criticism

    (Reuters) - Italy's second austerity package in less than a month met with a chorus of criticism a day after becoming law, with the largest union federation threatening a general strike over the "injustice" of the measures.

    President Giorgio Napolitano on Saturday signed the emergency decree introducing sweeping austerity measures to cut the fiscal deficit by some 45.5 billion euros ($64.7 billion) and balance the budget in 2013, a year ahead of its previous schedule.

    "A missed opportunity," was the comment by the chief economist of the Paris-based Organization for Economic Co-operation and Development, Pier Carlo Padoan, in daily La Stampa on Sunday.

    Padoan said the plan was positive in the pledge to bring forward the balanced budget but it lacked measures to boost growth and tackle tax evasion. Employers' lobby Confindustria estimates Italy's tax evasion totals 120 billion euros.

    CGIL union confederation leader Susanna Camusso told la Repubblica the package "hits only those who already pay their taxes," adding that the date of a general strike would be decided at an emergency union meeting on August 23.

    The austerity plan sets a "solidarity tax" on those earning more than 90,000 euros per year, to be levied for three years.

    Economists, unionists and business leaders agreed a tax on wealth rather than on labor income would have been better because it would have targeted tax evaders who do not declare their real income but often own large assets.

    Ferrari Chairman Luca Cordero di Montezemolo told Corriere della Sera newspaper the solidarity tax was "a scandal."

    "It's one thing to ask for a solidarity contribution from me or (media tycoon and Prime Minister Silvio) Berlusconi, but it's different to hit an executive supporting his family," he said.

    Newspaper editorial comment was largely negative, with former European Commissioner Mario Monti telling Corriere della Sera the package lacked fairness, weighed too heavily on the middle classes and did too little to help growth.

    TAX BURDEN

    In an interview with business daily Il Sole 24 Ore Confindustria head Emma Marcegaglia said the new tax regime could force managers to seek employment abroad, adding to Italy's hemorrhage of talented workers.

    "We are reaching an absolutely disproportionate tax rate on so-called high incomes," Marcegalia said.

    She also called the so-called 'Robin Hood Tax', due to hit companies in the energy sector with more than 10 million euros in revenues and 1 million euro in taxable income, a "folly."

    Marcegaglia called for an increase in value added tax and a reform of the system allowing early retirement on the basis of years of pension contributions. Pension spending in Italy is around two percentage points above the euro zone average.

    The austerity decree must be passed by parliament within 60 days, during which it will almost certainly be amended. Debate will begin in the Senate on August 22.

    Some 4 billion euros of the 20 billion euros of savings slated for 2012 and 12 billion euros of the 25.5 billion set for 2013 are to come through tax and welfare measures still to be drawn up.

    French economist Jean-Paul Fitoussi told Rome daily Il Messaggero that market pressure had forced Italy to take steps which were of no real value and would damage its weak growth.

    "Italy is like the protagonist of a Greek tragedy: forced to do things that will be useless and damaging in the long run, but necessary for survival in the short run."

  6. #86
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    Post Stocks bounce on U.S. cues; sentiment wary

    (Reuters) - Asian equities bounced on Monday and safe-haven assets like gold and the Swiss franc fell as market players cautiously returned to pick up bargains after last's week wild ride, though concerns over the weak global economic outlook may keep gains in check.

    A modest 0.4 percent rise in U.S. stock futures also encouraged some bargain hunting in Asian markets, but investors may be more likely to sell into rallies than buy into any dips ahead of fresh readings on the U.S. and euro zone economies this week.

    Japan's Nikkei finance/markets/index?symbol=jp%21n225">.N225 rose 1.5 percent after main Wall Street .N indices advanced on Friday but without the wild intra-day swings that marked the first few days of trading last week after the U.S. credit rating was downgraded by Standard and Poor's.

    Japanese shares were also boosted by data showing Japan's economy shrank less than expected in April-June following a devastating earthquake and tsunami in March. .T

    Asian stocks outside of Japan rose by a similar margin .MIAPJ0000PUS, after tumbling nearly 4 percent last week, with key indexes in Hong Kong and Australia up nearly 2 percent.

    Frances Cheung, senior strategist at Credit Agricole in Hong Kong, said a meeting between the leaders of France and Germany on Tuesday would be crucial to determining whether any longer term solution to the euro zone's sovereign debt crisis is in the works.

    "There is still a huge focus on money markets ... and looking at them shows not everything is solved," she said.

    German Chancellor Angela Merkel and French President Nicolas Sarkozy are due to meet in Paris to hammer out a solution to the sovereign debt crisis which has shown signs of ensnaring the big euro zone economies like Italy and Spain and heightened strains in money markets to levels not seen during the 2008 crisis.

    In recent days, France itself has come under attack from the markets.

    While dollar funding costs evident from cross currency basis swap rates in dollar/yen and dollar/euros have cooled from last week's peaks, they are still at elevated levels.

    On a valuation basis, the MSCI index of Asia stocks outside Japan trades at 11.5 times forward 12-month earnings, according to Thomson Reuters I/B/E/S, above the 7.9 times seen during the depths of the 2008 financial crisis.

    That suggests investors may still not be in a hurry to buy despite the 13 percent decline over the last two weeks.

    Markets also remain vulnerable to declines as debt cutting plans in Europe and the United States threaten to act as a further drag on already weak economic growth at a time when latest data has been patchy.

    U.S. consumer sentiment plunged to its lowest level since 1980 in early August, data showed on Friday, though July retail sales rose 0.5 percent.

    FRANC TUMBLES

    Still, signs that equities might have marked a temporary bottom after last week's volatile moves and persistent chatter that Swiss authorities may peg the franc against the euro to battle its surge sent the safe-haven currency tumbling by two percent against the euro and the dollar.

    The euro, which plumbed a record low around 1.0075 francs last week, climbed to a high of 1.1294 francs in morning trade, up from 1.1079 late in New York on Friday.

    But Barclays Capital analysts warned expectations of a peg seemed overdone, believing the franc would rally once again this week if markets started to change their view on its probability.

    "We remain CHF bears in the medium run - we agree with the SNB's view that it is "massively overvalued" - but, this week, we are not expecting the recent appreciation of EUR/CHF to hold," said Paul Robinson, strategist at Barclays Capital.

    The drop in the franc rippled over into gold markets with the precious metal slipping after a 1.5 percent slide in the previous session. Before Friday's slide, gold had gained 9 percent so far this month.

    U.S. crude futures were steady around $85.50 a barrel after settling down slightly on Friday.

    Trading activity is expected to be thin with Korea and India out and Japan's summer "obon" holidays this week.

    Gold fell more than 1 percent in early trade before paring most of its losses. By late morning it was at $1,744 an ounce, little changed from late Friday U.S. levels.

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    Post Cheap prices and Japan recovery lift world stocks

    (Reuters) - World stocks climbed further out of their August hole on Monday, lifted by signs of earlier-than-expected recovery in Japan and a growing belief that shares may now be cheap.

    European shares, however, failed to keep early gains and dropped into negative territory.

    Gold and the Swiss franc, two of the main beneficiaries of recent global risk aversion, fell.

    Investors were also weighing calls by Italian Economy Minister Giulio Tremonti for a more coordinated response to the euro zone debt crisis, including the creation of euro bonds, against an immediate rejection of the idea from Germany.

    MSCI's all-country world stock index, a broad measure of global equity health, was up half a percent, ratcheting up roughly a six percent gain since hitting an 11-month low last Thursday.

    "The markets have been technically very oversold and on that basis alone, they are due for a period of remission from the selling," said Mike Lenhoff, chief strategist at wealth manager Brewin Dolphin.

    Bank of America-Merrill Lynch said a "buy" signal had been triggered last week as outflows out of risky assets hit significant levels.

    "We note that since 2004, global equities have rallied an average 6.7 percent (in the four weeks that followed the trigger)," the bank's strategists wrote in a note.

    Nonetheless, the pan-European FTSEurofirst 300 stocks index was slightly lower.

    Shares in Asia were boosted by data showing Japan's economy shrank less than expected in April-June following a devastating earthquake and tsunami in March.

    Japan's Nikkei closed up 1.37 percent.

    SPILL OVER

    The albeit tentative rise in confidence spilled into other assets.

    The euro extended its gains against the Swiss franc to more than 3 percent after a Swiss newspaper report said the Swiss National Bank was poised to set a limit for the euro-Swiss franc exchange rate and will use all means to defend it.

    The dollar also rallied against the franc, surging 2.7 percent to 0.79883.

    Otherwise the U.S. currency was down around a quarter of a percent against a basket of major currencies.

    On the euro zone crisis front, Tremonti's call for common euro zone debt issuance was rejected by German Finance Minister Wolfgang Schaeuble, who said such euro bonds would undermine the basis for the single currency by weakening fiscal discipline among member states.

    German Chancellor Angela Merkel and French President Nicolas Sarkozy are due to meet in Paris on Tuesday to discuss the crisis.

    Core euro zone debt was mixed with yields rising on longer-term bonds.

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    Post Cheap prices and Japan recovery lift world stocks

    (Reuters) - World stocks climbed further out of their August hole on Monday, lifted by signs of earlier-than-expected recovery in Japan and a growing belief that shares may now be cheap.

    European shares, however, failed to keep early gains and dropped into negative territory.

    Gold and the Swiss franc, two of the main beneficiaries of recent global risk aversion, fell.

    Investors were also weighing calls by Italian Economy Minister Giulio Tremonti for a more coordinated response to the euro zone debt crisis, including the creation of euro bonds, against an immediate rejection of the idea from Germany.

    MSCI's all-country world stock index, a broad measure of global equity health, was up half a percent, ratcheting up roughly a six percent gain since hitting an 11-month low last Thursday.

    "The markets have been technically very oversold and on that basis alone, they are due for a period of remission from the selling," said Mike Lenhoff, chief strategist at wealth manager Brewin Dolphin.

    Bank of America-Merrill Lynch said a "buy" signal had been triggered last week as outflows out of risky assets hit significant levels.

    "We note that since 2004, global equities have rallied an average 6.7 percent (in the four weeks that followed the trigger)," the bank's strategists wrote in a note.

    Nonetheless, the pan-European FTSEurofirst 300 stocks index was slightly lower.

    Shares in Asia were boosted by data showing Japan's economy shrank less than expected in April-June following a devastating earthquake and tsunami in March.

    Japan's Nikkei closed up 1.37 percent.

    SPILL OVER

    The albeit tentative rise in confidence spilled into other assets.

    The euro extended its gains against the Swiss franc to more than 3 percent after a Swiss newspaper report said the Swiss National Bank was poised to set a limit for the euro-Swiss franc exchange rate and will use all means to defend it.

    The dollar also rallied against the franc, surging 2.7 percent to 0.79883.

    Otherwise the U.S. currency was down around a quarter of a percent against a basket of major currencies.

    On the euro zone crisis front, Tremonti's call for common euro zone debt issuance was rejected by German Finance Minister Wolfgang Schaeuble, who said such euro bonds would undermine the basis for the single currency by weakening fiscal discipline among member states.

    German Chancellor Angela Merkel and French President Nicolas Sarkozy are due to meet in Paris on Tuesday to discuss the crisis.

    Core euro zone debt was mixed with yields rising on longer-term bonds.

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    Post Selloff raises stakes in Sarkozy-Merkel euro zone talks

    (Reuters) - The leaders of France and Germany face a stark choice in talks on Tuesday over whether to begin steering the embattled euro zone toward closer fiscal union or risk watching the bloc unravel.

    French President Nicolas Sarkozy and German Chancellor Angela Merkel meet in Paris to discuss what further measures they can take to contain Europe's debt crisis, which is now spreading to the continent's core.

    Italy has been forced to ramp up its austerity measures and financial market jitters hit France last week with French banks' shares subject to panic selling following rumors that the country could be next to lose its prized AAA debt rating.

    Many experts say the only way to ensure affordable financing for the bloc's most financially distressed countries would be for the euro area to issue joint euro zone bonds -- although officials in Paris and Berlin said Tuesday's talks would not address that possibility.

    Although the German government has long opposed the idea, support is beginning to emerge, with the country's export association saying on Monday that all other means of fighting the crisis had run out.

    Italian Economy Minister Giulio Tremonti said on Saturday that euro bonds would be the best solution to Europe's debt crisis, and some economists say that the euro zone will inevitably come around to accepting the idea.

    Ordinary Germans have opposed more help for their weaker neighbors even while their economy has been roaring along. Figures on Tuesday showing German GDP barely grew in the second quarter suggests a slowdown is starting to grip there, making underwriting of euro zone debt an even harder sell politically.

    "While German politicians are currently racking their brains on the pros and cons of common Euro bonds, the luxury of having an economy running at "wonder" speed is fading away," said Carsten Brzeski at ING.

    The German economy grew by just 0.1 percent in the second quarter, while the French economy stagnated.

    "EURO ZONE COLLAPSE"

    French economist Jacques Delpla, who co-authored a paper proposing how euro bonds could work, said the euro zone faced collapse unless leaders went beyond an agreement reached at a July 21 emergency summit on the debt crisis.

    "If we just stick to the July 21 agreement then, before the end of the year, there will be no euro zone, unless the ECB buys everything."

    At the July summit, euro zone leaders agreed to a second bailout package for Greece and to give their European Financial Stability Facility rescue fund broader powers, but the moves provided only a brief respite in the debt crisis, forcing the European Central Bank to buy Italian and Spanish bonds last week.

    Euro bonds aside, Sarkozy and Merkel will focus on proposals to improve the euro zone's economic governance, which they told fellow leaders in the bloc at last month's summit that they would issue by the end of August.

    In particular, they could discuss holding regular euro zone summits, as France has long sought, or ways of improving peer monitoring of fiscal policies.

    Economist Frederic Bonnevay at French think-tank Institut Montaigne said more radical measures were needed even if they did not include euro bonds for now.

    "The size and powers of the EFSF need to be expanded dramatically -- that's a secret to no-one," he said, suggesting that its firepower should be raised to as much as one trillion euros from 440 billion euros currently.

    Sarkozy, who broke off his summer holiday last week to deal with the market meltdown in French stocks, is to meet with Prime Minister Francois Fillon over lunch to fine tune France's position before he meets Merkel from 10 a.m. EDT.

    A joint news conference is due at 12 p.m. EDT.
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    Post Poor German data hits stocks and euro

    (Reuters) - Stagnant growth in Europe's powerhouse Germany knocked stocks lower on Tuesday and hit the euro, adding to investor fears that the world economy is slowing more than expected.

    Focus was also on a meeting in Paris between French President Nicolas Sarkozy and German Chancellor Angela Merkel, with investors looking for any signs of new measures to contain the spreading euro zone debt crisis.

    Germany's gross domestic product grew just 0.1 percent in April-June from the previous quarter, below market expectations for an expansion of 0.5 percent.

    "The global slowdown is gradually reaching Germany," said Andreas Scheuerle, economist at Dekabank.

    The data showed Germany was actually growing at a slower pace than battered, debt-ridden Spain, where gross domestic product grew by 0.2 percent in the second quarter.

    Germany's slowdown sent European stocks lower, dragging world equities with them.

    The FTSEurofirst 300 was down more than 1 percent and MSCI's all-country world stock index lost a third of a percent.

    Stocks have been rebounding somewhat from a battering that took the MSCI index down as much as 20 percent from a three-year high in May.

    The U.S. S&P 500 index gained 2.18 percent on Monday. Japan's Nikkei closed up 0.23 percent on Tuesday.

    EURO ANGST

    The euro was down against both the Swiss franc and the dollar, extending losses after the German data.

    It was down 0.8 percent against the Swiss franc at 1.1232 francs and 0.4 percent against the dollar at $1.4301.

    The Swiss franc has been a key safe haven for investors during recent market turmoil.

    Gold, the other major choice and one of the best-performing assets this year, was up around half a percent at $1773 an ounce.

    German government bonds firmed after the growth data, with short-dated paper outperforming.

    Some investors were hoping the Franco-German meeting later in the day would come up with ways to improve euro zone governance.

    Talk of common euro zone bonds -- increasingly seen as a powerful tool against the region's debt hurdles -- in some of the German media in recent days has lifted hopes before the meeting in Paris.

    Both countries have said, however, that euro bonds are not on the agenda.

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    Replies: 4
    Last Post: 01-04-2013, 14:08

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