SREENIVAS SAMBARI
I have been associated with WSD from July 2010. The back office support is very good and prompt. Whenever I faced any technical problem with the platform it has been fixed efficiently and the WSD team makes sure that all my queries are answered. My experience of trading with MT4 provided by WSD is that trades are executed instantly and I get the price which I see while executing the trade. The most important aspect with WSD is that the deposits and the withdrawals via bank wire is the fastest I ever experienced with any other broker firm. The last but not the least point with WSD is that since WSD is a regulated firm my funds with WSD are safe. Because of these things which I personally experienced from the last 5 months of my association with WSD, I could gradually and consistently increase my business. Now WSD has become my prime broker firm.
Monday, December 27, 2010
Sunday, December 19, 2010
Weekly Review
CURRENCY: A rollercoaster ride for the NZD with Friday’s Asian session happy to hunt down short positions. The European and North American sessions were, however, happy to resume the downside pressure.
GLOBAL MARKETS: Friday night NZ time saw consolidation in markets as they realised they may have gotten a little carried away over the week. US 10 year Treasury yields dropped 9 basis points to 3.32 percent, on top of a 10 basis point fall the day before, while the S&P500 rose 0.1 percent. Oil prices rose, ending the week up around a quarter of a percent.
KEY THEMES AND VIEWS EUROZONE MUDDLING ON One would have thought it would have surprised few observers, but markets nonetheless weren’t happy on Friday night NZ time when Moody’s downgraded Irish debt by a whopping five levels from Aa2 to Baa1, with a negative outlook. US and European equities fell in response. Ireland’s 10 year bond yields rose 17 basis points to 8.60 percent, and credit default swaps on their sovereign debt climbed to their highest level since November 30. Meanwhile, putting the next couple of years in the “too hard” basket for now, EU leaders on Friday agreed to create a permanent debt-crisis mechanism in 2013. Germany pressed for assistance as a “last resort” only, but the final text read “if indispensible”. On the same day, Germany ruled out increasing the 750 billion euro emergency fund. The main question now is whether there is a better way of utilising the fund than last-minute rescues. Bond purchases or shorter-term credits would be obvious contenders, but anything other than an overtly necessary lifeline for the greater good is going to be politically unpopular, particularly in Germany. However, the EU needs to buy itself some time to come up with a plan on how to deal with the debt crisis more proactively. Since banks have been urged to hold ever more “safe” sovereign debt in recent years, defaults could have grave consequences for financial stability in the region. Events so far do not inspire great hope of coordinated, successful action.
A MEASURE OF SUCCESS? US 10 year Treasury yields may be up 70 basis points since Ben Bernanke announced the second round of quantitative easing in late August, but US equities have risen 17 percent (and oil futures too).
GLOBAL MARKETS: Friday night NZ time saw consolidation in markets as they realised they may have gotten a little carried away over the week. US 10 year Treasury yields dropped 9 basis points to 3.32 percent, on top of a 10 basis point fall the day before, while the S&P500 rose 0.1 percent. Oil prices rose, ending the week up around a quarter of a percent.
KEY THEMES AND VIEWS EUROZONE MUDDLING ON One would have thought it would have surprised few observers, but markets nonetheless weren’t happy on Friday night NZ time when Moody’s downgraded Irish debt by a whopping five levels from Aa2 to Baa1, with a negative outlook. US and European equities fell in response. Ireland’s 10 year bond yields rose 17 basis points to 8.60 percent, and credit default swaps on their sovereign debt climbed to their highest level since November 30. Meanwhile, putting the next couple of years in the “too hard” basket for now, EU leaders on Friday agreed to create a permanent debt-crisis mechanism in 2013. Germany pressed for assistance as a “last resort” only, but the final text read “if indispensible”. On the same day, Germany ruled out increasing the 750 billion euro emergency fund. The main question now is whether there is a better way of utilising the fund than last-minute rescues. Bond purchases or shorter-term credits would be obvious contenders, but anything other than an overtly necessary lifeline for the greater good is going to be politically unpopular, particularly in Germany. However, the EU needs to buy itself some time to come up with a plan on how to deal with the debt crisis more proactively. Since banks have been urged to hold ever more “safe” sovereign debt in recent years, defaults could have grave consequences for financial stability in the region. Events so far do not inspire great hope of coordinated, successful action.
A MEASURE OF SUCCESS? US 10 year Treasury yields may be up 70 basis points since Ben Bernanke announced the second round of quantitative easing in late August, but US equities have risen 17 percent (and oil futures too).
Monday, December 13, 2010
Weekly Review
CURRENCY: The range-bound trading to close the week for the NZD was duly delivered on Friday. It attempted unsuccessfully both sides of the recent range and finished slightly below 0.75USD.
GLOBAL MARKETS: US equities and Treasury yields rose on the back of stronger data to a post-Lehman high. European equities were very slightly stronger. Commodity prices were mixed, with some metals (except copper) falling on China growth fears, but other commodity prices rising on relief that Chinese interest rates were not raised over the weekend.
KEY THEMES AND VIEWS BUBBLE, BUBBLE, TOIL AND TROUBLE. The Chinese government in the weekend released their initial economic plan for the next five years. They pledged stabilising prices via more “prudent” monetary policy, more tightly managed liquidity, more targeted investment growth, and a shift in the focus of growth from exports and investment to consumption. However, no yuan appreciation targets were revealed that would assist this; rather they will target “basic stability” in the exchange rate. Chinese inflation was 5.1 percent for the year ended November, with food prices up almost 12 percent. The broad money supply, M2, is up 55 percent in two years. The sheer volume of credit growth forced down the economy’s throat in response to the GFC is starting to cause some indigestion. The authorities now face the delicate task of popping a real estate bubble and tidying up after the massive misallocation of resources that has occurred, while maintaining strong growth. Authorities held back on raising rates in the weekend, satisfying themselves with raising banks’ reserve requirements for the third time in five weeks. But use a pin or a blunt axe, the effect of the bubble’s bursting is going to be the same in the end. High commodity prices are the one bright spot for the New Zealand economy at present. If China’s cautious braking of their runaway economy results in an ugly skid and a loud thump, commodity prices will fall sharply.
US DATA STRONGER. The stronger run of US data, interrupted only briefly by the November payrolls shocker, continued on Friday as US consumer confidence climbed to a six-month (still-fragile) high, holiday sales were forecast to be the strongest in four years, and exports hit a two-year high. The passing of the tax cut extension also boosted growth expectations, and, accordingly, longer-dated Treasuries. US 10-year bond yields finished the week up a whopping 32 points despite the Fed's ongoing QE2 and comments from Bernanke that the programme would be extended if necessary. Movements in US long rates do have an impact here in New Zealand, so despite the RBNZ's downbeat MPS on Thursday we may see some upward pressure on long rates.
GLOBAL MARKETS: US equities and Treasury yields rose on the back of stronger data to a post-Lehman high. European equities were very slightly stronger. Commodity prices were mixed, with some metals (except copper) falling on China growth fears, but other commodity prices rising on relief that Chinese interest rates were not raised over the weekend.
KEY THEMES AND VIEWS BUBBLE, BUBBLE, TOIL AND TROUBLE. The Chinese government in the weekend released their initial economic plan for the next five years. They pledged stabilising prices via more “prudent” monetary policy, more tightly managed liquidity, more targeted investment growth, and a shift in the focus of growth from exports and investment to consumption. However, no yuan appreciation targets were revealed that would assist this; rather they will target “basic stability” in the exchange rate. Chinese inflation was 5.1 percent for the year ended November, with food prices up almost 12 percent. The broad money supply, M2, is up 55 percent in two years. The sheer volume of credit growth forced down the economy’s throat in response to the GFC is starting to cause some indigestion. The authorities now face the delicate task of popping a real estate bubble and tidying up after the massive misallocation of resources that has occurred, while maintaining strong growth. Authorities held back on raising rates in the weekend, satisfying themselves with raising banks’ reserve requirements for the third time in five weeks. But use a pin or a blunt axe, the effect of the bubble’s bursting is going to be the same in the end. High commodity prices are the one bright spot for the New Zealand economy at present. If China’s cautious braking of their runaway economy results in an ugly skid and a loud thump, commodity prices will fall sharply.
US DATA STRONGER. The stronger run of US data, interrupted only briefly by the November payrolls shocker, continued on Friday as US consumer confidence climbed to a six-month (still-fragile) high, holiday sales were forecast to be the strongest in four years, and exports hit a two-year high. The passing of the tax cut extension also boosted growth expectations, and, accordingly, longer-dated Treasuries. US 10-year bond yields finished the week up a whopping 32 points despite the Fed's ongoing QE2 and comments from Bernanke that the programme would be extended if necessary. Movements in US long rates do have an impact here in New Zealand, so despite the RBNZ's downbeat MPS on Thursday we may see some upward pressure on long rates.
Monday, December 6, 2010
Weekly Review
CURRENCY: A much weaker than expected US November non-farm payrolls delivered the expected upside moves for the Australasian currencies. The NZD closed around the highs as commodity prices lifted further.
GLOBAL MARKETS: US equities fell on disappointing payrolls data but then recovered on the prospect of more helicopter cash from the Fed. European equities weakened a little in tandem, but still had their best week in a month. A broad range of commodities were higher on USD weakness, with oil hitting a 25 month high of near $89/barrel (helped by cold weather in Europe). US 10-year bond yields rallied on the weak payrolls number, but subsequently sold off, with yields closing at 3.00 percent.
KEY THEMES AND VIEWS
HAPPIER US DATA RUN TRIPS UP ON LABOUR MARKET. US Non-farm payrolls data was a shocker. 39,000 new jobs were created in November versus market expectations of 145k, and the unemployment rate rose from 9.6 to 9.8 percent. The data flew in the face of recent more upbeat messages coming from the likes of the manufacturing sector and improved holiday sales, and was seen as confirming that QE2 would sail on for the foreseeable future. While stocks fell on the news, the resulting USD weakness drove up commodity prices, and commodity-related firms’ stock prices drove up US stock indices. Stocks were also helped along by a report that Ben Bernanke had stated he has not ruled out extending quantitative easing beyond the mooted $600bn. Are we returning to the "good news is good, bad news is better" days? Seems highly unlikely. Markets have surely realised by now that central banks are not omnipotent. It probably more reflects the fact that labour market data always lags the rest of the economy, and a broad range of other US data has been looking a little less bleak lately (including the ISM non-manufacturing index that was also out on Friday). Meanwhile, President Obama's Debt Panel scuttled his $3.8 trillion plan for budget cuts, in protest against higher taxes (Republicans) and cuts in benefits (Democrats). Good luck negotiating that one through the tortuous maze that is US politics.
CONTINUING STRESS IN EUROPE. The ECB on Friday directly bought “modest” quantities of Portuguese and Irish government bonds, which caused a narrowing in spreads to German bunds. Time will tell how long the effect lasts. Disagreement is rife regarding a longer-term solution to contain the crisis. Meanwhile the Spanish government unveiled new austerity measures just a week after stating that they wouldn't be needed, after their 10 year bonds suffered in the aftermath of the Irish bail-out. The measures will hit smokers and the elderly in the pocket. Fortunately the two groups tend to have little crossover.
GLOBAL MARKETS: US equities fell on disappointing payrolls data but then recovered on the prospect of more helicopter cash from the Fed. European equities weakened a little in tandem, but still had their best week in a month. A broad range of commodities were higher on USD weakness, with oil hitting a 25 month high of near $89/barrel (helped by cold weather in Europe). US 10-year bond yields rallied on the weak payrolls number, but subsequently sold off, with yields closing at 3.00 percent.
KEY THEMES AND VIEWS
HAPPIER US DATA RUN TRIPS UP ON LABOUR MARKET. US Non-farm payrolls data was a shocker. 39,000 new jobs were created in November versus market expectations of 145k, and the unemployment rate rose from 9.6 to 9.8 percent. The data flew in the face of recent more upbeat messages coming from the likes of the manufacturing sector and improved holiday sales, and was seen as confirming that QE2 would sail on for the foreseeable future. While stocks fell on the news, the resulting USD weakness drove up commodity prices, and commodity-related firms’ stock prices drove up US stock indices. Stocks were also helped along by a report that Ben Bernanke had stated he has not ruled out extending quantitative easing beyond the mooted $600bn. Are we returning to the "good news is good, bad news is better" days? Seems highly unlikely. Markets have surely realised by now that central banks are not omnipotent. It probably more reflects the fact that labour market data always lags the rest of the economy, and a broad range of other US data has been looking a little less bleak lately (including the ISM non-manufacturing index that was also out on Friday). Meanwhile, President Obama's Debt Panel scuttled his $3.8 trillion plan for budget cuts, in protest against higher taxes (Republicans) and cuts in benefits (Democrats). Good luck negotiating that one through the tortuous maze that is US politics.
CONTINUING STRESS IN EUROPE. The ECB on Friday directly bought “modest” quantities of Portuguese and Irish government bonds, which caused a narrowing in spreads to German bunds. Time will tell how long the effect lasts. Disagreement is rife regarding a longer-term solution to contain the crisis. Meanwhile the Spanish government unveiled new austerity measures just a week after stating that they wouldn't be needed, after their 10 year bonds suffered in the aftermath of the Irish bail-out. The measures will hit smokers and the elderly in the pocket. Fortunately the two groups tend to have little crossover.
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