S&P500 looking toppish

A two-year chart of S&P500 ... Currently at 1318.
Can it break 1333 level, into the 1350 range..?

European markets rally on Fed low-rates pledge

European stocks rallied Thursday and the euro hit a one-month dollar high after the Fed vowed to keep interest rates near zero for at least the next two years and investors waited on Greek debt talks.

The European single currency surged as high as $1.3177 in afternoon trading despite Greece's ongoing struggle to agree a writedown on its huge debts with its creditors, its highest level since December 21.
The euro later pulled back to stand at $1.3160 at 1400 GMT, still up from $1.3103 late in New York on Wednesday.

The US Federal Reserve said Wednesday that it expects interest rates to stay at "exceptionally low levels" at least until late 2014, extending its forecast from the previously stated mid-2013.
Traders also speculated that the central bank could also decide to implement another round of stimulus in the form of quantitative easing (QE).

"Yesterday's news from the Fed pushing out the low interest rate target to 2014 has delivered a modicum of support in early European trade, with the FTSE nudging its way higher as a result," said analyst Mike McCudden at online brokerage Interactive Investor.

"There's also a growing expectation that we'll see QE3 emerging from the Fed too, although with the market clearly supported by this line, any signs of delay could well initiate another round of broad-based selling.

"Eurozone debt concerns also remain very much front of mind and any hint of deterioration here could again see risk appetite plummet amongst investors."

Markets have been on a generally upward arc since the beginning of the year as the US economy shows tentative signs of recovery while officials in Europe strive to solve their debt crisis - AFP

Wishing everybody ---> Gong Xi Fa Chai ...
Be happy, be healthy, be wealthy ...

Gold climbs as rising risk appetite lifts euro

LONDON, Jan 19 (Reuters) - Gold climbed for a fourth session on Thursday as the euro hit a two-week high versus the dollar and European stock markets rose on hopes the IMF may boost lending resources, with markets also awaiting the outcome of crucial talks between Greece and its creditors.

Spot gold was up 0.2 percent at $1,661.99 an ounce at 1021 GMT, having earlier peaked at $1,669.75, its highest since Dec. 13. It has had a positive start to the year, up 6.4 percent since end December.

Gains in the euro have helped it this week. The single currency climbed to a two-week high against the dollar and the yen on Thursday, supported by better appetite for assets seen as higher risk.

"Rising risk appetite, a weak U.S. dollar and the breach of key resistances is giving gold the momentum to head towards the $1,700 an ounce level in the near term," said Pradeep Unni, senior analyst at Richcomm Global Services. Further resistance could be expected at $1,686, he added.

European shares hit their highest in nearly 5-1/2 months as traders awaited the outcome of talks between Greece and its private creditors. They meet for a second day of bargaining on a crucial bond swap deal on Thursday, with time running out for reaching a compromise needed to avoid a default.

Risk appetite was helped by news that the IMF is seeking to more than double its war chest by raising $600 billion in new resources to help countries deal with the fallout of the euro zone debt crisis.
(Reporting by Jan Harvey; Editing by Alison Birrane)

Euro hits 16-month dollar-low, European shares slide

The euro slumped to a 16-month low against the dollar and ten-year trough versus the yen Thursday, while European stocks slid across the board, on resurgent eurozone debt strains triggered by Spain.
The European single currency struck $1.2831 at 1005 GMT -- the lowest level since September 2010. It also dived against the Japanese currency,to a ten-year low of 98.58 yen.

Spain's new economy minister on Thursday said his country's banks may face up to 50 billion euros ($65 billion) in bad loans, as he vowed to crack down on regional deficits in a new austerity drive.
Economy Minister Luis de Guindos' estimate of the banks' bad loans, provided in an interview with the Financial Times, was higher than many private forecasts. (AFP)

Japanese Yen surpasses Aussie to be best performer against the Ringgit

One year chart of USD/MYR.
USD has gained about 3% from 3.05 to 3.14



One year chart of AUD/MYR.
AUD has gained more than 5% from 3.07 to 3.24



One year chart of JPY/MYR.
Just when everybody thinks Aussie is the best currency to hold, the Yen beats it hands down.
JPY has gained over 10% from 305 to 409


One year chart showing percentage gain of AUD/MYR compared to USD/MYR



One year chart showing percentage gain of JPY/MYR compared to AUD/MYR

Aussie higher against Ringgit. Gold recover.

The Australian dollar has rallied for a third straight session, with positive economic data and a strong day on equity markets lifting the currency above 103 US cents and fresh highs against the euro.
The Australian dollar rose during overnight trading, after an encouraging US manufacturing report buoyed equity markets and lifted appetite for risk assets. Orders, production and employment were all up in a good sign that the US economy accelerated in the December quarter," ICAP senior economist Adam Carr said in a research note. (AAP)
Spot gold traded steady
on Wednesday, retaining most of the previous session's strong
gains on encouraging economic data from the United States and
Europe, and rising concerns on Iran also helped support
sentiment.
Bullion began the year by recouping all of last week's
losses to post its largest daily rise since Oct. 25
"Gold may not be a safe haven in financial turmoil, but it
does seem to function as a safe haven against real-world
geopolitical risks," said Nick Trevethan, Senior Commodity
Strategist at ANZ. (Reuters)