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Oil Trading at Highest in Over a Year

June 12th, 2010 | Comments Off | Posted in Stocks and Shares

As one of the most basic elements of the modern economy, oil sales and production are a genuine bell weather for the economic health of the United States and most other industrialized nations where petrol based products such as diesel and gasoline are essential to trade. Crude oil has recently reached a 17 month high in New York City’s stock market as the demand for petrol has increased thanks to major growth in the service industry sector of the US economy. The recession had hit levels that closely mirrored those seen in the 1930’s, but research analysts at the Sydney, Australian firm CWA Global Markets Pty are hailing the news as a powerful indicator that the global recovery is definitely progressing due to rising prices that directly correspond with rising business and consumer demand across the world. Crude oil for May delivery alone already had reached $86.43 per barrel which is down a full 19 cents in the New York Mercantile Exchange, but then bounced back to the highest levels seen since October 8, 2008 around the time the economy took a massive nose dive. A gain of 8.8 per cent in futures this year alone is a very positive sign, say economists.

Oil demand for most of the world will be strong through out the course of 2010 with commercially held inventories of crude oil expecting to reach around a million barrels. This 10 week recovery is the longest period of gain since late in 2004 when stock piles had leveled out at 354 million barrels, nearly 7 per cent above the 5 year average.

Japanese and Australian Stocks on the Rise

June 1st, 2010 | Comments Off | Posted in Stocks and Shares

The dark era of the global melt down may now be passing according to many economists around the world, thanks to re-structuring of economic expectations in a variety of major player nations. Stock futures in Japan have gained recently, along side Australian shares traded by the US due to growth in American service industries. Home sales have jumped due to the reigning optimism about the US economy and a general sentiment that a global recovery of the economy is not only possible, but to be expected. Commodity prices in the US have also risen, in particular gold and other precious metals essential to the base line economy of that nation. In Japan, Sony Corp. gained 0.9 per cent in Tokyo, significant due to the fact that it is Japan’s largest exporter of TV’s. The Sharp Corp. rose 0.8 per cent, another major boost to the Japanese economy as the largest producer of liquid crystal displays which are proving to be hot sellers around the world. In Australia, the nation’s largest oil company and the largest mining company in the world shot up a full 2.4 per cent.

The improvements with the fundamental elements of the global economy are definitely gearing up to produce a much brighter forecast for the coming year, a feat many analysts felt may have been nearly impossible only a year ago. With a strong Yen proving globally that the Japanese economy is back on track towards its previous goal to maintain its status as global economic power house, many have turned to the Asian markets for solid growth investing and are continuing to do so as China, also, expands the potential of its yuan to become a staple for currency investors.

Samsung Shares on the Rise After Profits Posted

April 6th, 2010 | 3 Comments | Posted in Stocks and Shares

Investors are celebrating after the Samsung Electronics Co Ltd of Japan has just let the public know that it is on the way to topping the best expected forecasts previously set by industry analysts. A powerful surging recovery in its chip business, the company’s primary focus, has lead to the quarterly profits and put Samsung back in motion. The reason for the chip industry’s rising profits comes from the personal computer segment of the digital electronics market and has steadily stoked the market’s fires, creating intense demand that has played into Samsung’s favor, but also those of smaller producers who have been able to raise their own prices to a level Samsung can compete with. Shares are already pushing to an all time high and record breaking annual profits are predicted for chip makers across the industry as the global demand for in home computers continues to grow thanks to the rapid expansion of the web and its related services.

The tech sector does, however, have some strong rivals for Samsung in the flat screen TV production sector. Samsung stands as a major manufacturer of such electronics and the investments its rivals are pouring into producing cheaper TV’s could well cut into the company’s other mainstay profitable business. Differences in the price of currencies such as the yen and dollar could further create issues for this part of the tech sector, but rising demand for electronic goods in a recovering Japan means the market may still find a way to level out before the third quarter of 2010.