Forex and Stock Investment

In New York the main shares indexes are closed Wednesday higher. After a lower startup as a result of inflation fear the market knew himself during the day to fix. Higher then expected quarter results of Hewlett-packard cared about optimism under the technology values and the petroleum related shares knew to profit from the persistent increase of the oil price.

The Dow Jones-index ended 0,7% higher 12,427.26 points. The wide S&p won 500 0,8% 1,360.03 points and the technology climbed heavy Nasdaq 0,9% 2,327.10 points.

The oil price finished in New York for the second day on file above the USD100. The price for a barrel scabrid petroleum for shipment in March lifted with 0,7% to USD 100.74, after previously still an interim record to have found on USD 101,32

The Fed in the protocol of the latest interest gathering prepared to are confirmed the interest further to reduce to support the economics, but warned there well that the upwards inflation can lead to hard-wearing interest increases in case the economics improves again.

The American Central Bank growth expectation reduced besides for 2008 and the inflation expectation adjusted up. The Fed provides now an economic growth with 1,3%-2, 0%, against an earlier expectation of 1,8%-2, 5%. The inflation, exclusive nourishment and energy, will result as expected this year 2,0%-2, 2%, compared to an earlier expectation of 1,7%-1, 9%.

Previously on the day was announced already that the American consumer prices in January on month grassroots with 0,4% are lifted, light above the expectation of economists, that expected an increase of 0,3%. The consumer prices exclusive food and energy - the so called core CPI - increased in January with 0,3%, as well 0,1 percentage point above the expectation of economists.

The ten-year-old wrote down American T-association 1/32 bearings on 102-23/32 in a return of 3,91%. The euro fell 0,1% with respect to the dollar to USD 1,4710.

The Dow knew 22 climbers and eight descendants. Hewlett-packard biggest climber with a profit was by far of 7,9% on higher then expected quarterly figures and good prospects. Rival IBM was with a plus of 2,7% the second biggest climber in the Dow. Telecommunication company AT&T was the biggest descendant with a loss of 4,3%. General motors followed with a nurse of 1,8%.

Kellogg closes 1,1% bearing. ‘S Worldly biggest producer of breakfast grains the expectation for a profit per share in an ordinal has of USD 2,92-2, 97 for 2008 repeated. Analysts will mediate from of a profit per share in 2008 of USD 2,99.

Also Pepsico reconfirmed the expectation for 2008 of a profit per share of at least USD 3, 72. Analysts reckon for 2008 on a profit per share of USD 3, 73. The soft drink manufacturer intends to purchase in 2008 for USD 4.3 billion on own shares. The share ended unaltered with USD 71,12.

Garmin finished 7,5% bearing. The rival of tom tom reported a higher then expected profit over the fourth quarter. Exclusive fragments resulted the profit per share on USD 1.31, whereas analysts USD had expected 1.11. For 2008 Garmin expects a sale of more than USD 4.5 billion and a profit of USD 4.40 per share.

Aluminum is a relative young metal, that just since the end of the 19de century on an efficient manner wanted to become produced.  This prevented not that aluminum in short time grew into it mostly used industrial metal in the world.  In 2005, the consumption amounted to about 32
million tons.  This is almost the double of buyer.  Aluminum knows sees to in large lines the same applications as a steel only over a number of extra trumps.  The metal becomes uses in armies with other metals and is a good geleider of electricity.  Furthermore is aluminum light and
also rust free.  Strictly we can taken consider aluminum not as a basis raw material for come the metal not in pure form in the nature for.  The production process begins by the winning of bauxite, an aluminum mineral.  After purification (raffinage) remains alumina or is melted aluminiumoxide over a little on its turn.  This last step furnishes the end product aluminum on.  A barrel of the end product to produce is approximately two tons of alumina and celebrate barrel bauxite necessarily. 

Applications

De weights saving in comparison with glass is the main drove of the success of aluminum in the packing’s sector.  There its numerous advantages connected at the raise of for instance
feeding and drink in aluminum packing’s.  The packing’s can against a push and protect at the same time the quality of the packed products.  The weights saving has also a secondary effect, namely that
the transport expenses less high go up.  Furthermore aluminum easily recycled become can what is again better for the environment.  These qualities make arranged aluminum also extremely as
construction material.  The applications in the building sector its unrestricted.  Think for instance of aluminum rams and doors only also roofs and other constructions which a low weight combined
serves to become with virtue.  Are the applications frequent also in the transport sector.  As more and more car producers make use of aluminum in their models.  At the continuous stricter safeties
prescriptions to satisfy, must be made the cars always more heavily.  In their fight against the overweight, the constructors use about that in increasing extent aluminum in the place of steel.
Until for shorten was this only in the higher market segment the case, but aluminum dives now also always often by the cheaper models on.  With name the wheels and the motor block become these days
many from aluminum made.  The airplane industry makes also eager use of the light and sturdy metal.  Aluminum and aluminum armies make about 80% of the weight of an airplane in  state
out.  Also in take on board, is a lot of aluminum trains and trams to find. 

Approximately 9% of the produced aluminum has electric applications.  Neat as a buyer becomes the metal uses in for instance
stream cable and underground electricity leaderships.  Because of the lower weight is the capacity of aluminum almost double as
large as that of buyer. 

Supply and demand

The world-wide question to aluminum grows all decennia steadily.  In 1950 became 2 million tons of aluminum consumes.  This figure walked in 1990 on until 15 million tons and in 2004 became for the first time the cape of 30 million tons
rounded off.  The growth in the question goes with other words always more fast.  From enclosed table falls off to lead that the aluminum market self since 2004 in a deficiency finds.  The question is with other words larger than the offer.  This situation will
remain last also in 2006 with a measured deficiency of 123000 tons.  Pace from 2008 will exceed the offer again the question, come out when the predictions at least.  Nevertheless serves to become from the existing supplies pen.  These Junes begin was found of
corresponds ‘06 on a level that to about 6 weeks consumption.  This is historical seen at the low side.  The strong growth in the question is for a large piece to thank at the industrialization of China and India.  Both countries its a large slokop of industrial
metal below which also aluminum.  Bauxite, the basis raw material, is won almost everywhere in the world, but the largest mines was found of in Australia, South-America, India and Africa.  The large smithereens that aluminum transform till aluminum stand also
over the globe spread.  The melting process is a whole energy-intensive trial by which enormous quantities electricity consumed become.  Recent arose then also a tendency the smelt to move to locations where electric stream yet payable is.  A smelter move
goes naturally not just.  This trial will take then also several years in possession.  Concretely more and more expensive smithereens in (Westerly) Europe and the United States are closed and moves order to for instance Brasil, ICELAND, the Caraïbisch and even
the Middle-East. 

Prospects

Alcoa, the largest aluminum producer in the world, against the year 2020 again a doubling of the question plays till almost 60 million tons.  On longer term, the future smiles at the aluminum producers then also.  But what the near future concerned, lies well a number of dangers on the lookout.  As the rising Chinese production of aluminum can and aluminum for downward
price pressure see to.  China is of the worldly largest aluminum producer with a share of about 25%.  Largest divide of this becomes by the country self consumed, but the last years is a part of the production also intended for the export.  Between 2001 and 2005, the annual production grew with at least 20%.  At this appears come to will an end because of problems with the stream
service in the fastest growing economy in the world.  The Chinese government has announced take already repeated to will checking measures.  This can among many through the levying of tax on the export of aluminum or through the reducing of loans at businesses from the sector.  At the overcapacity in China thus shortly an end can come.  Someone else danger comes self from the
high prices.  Users can decide according to the application to replace aluminum through for instance steel, synthetic material or glass.  This substitute-effect can see to on self for a drop of the question.  A world-wide delay of the economic growth forms possibly the largest risk for the aluminum price.  Less industrial activities see to namely automatically for a lower question
to basis metals.  After years of strong economic growth is it not ondenkbeeldig that China the coming years a growth delay will undergo.,.  On the other hand raise the low supplies the chance on a robust rise in prices when the consumption round some reason or other suddenly increases.  The expected grow can come out expect of the offer also layer then.  Technical problems, a lack
of material and schooled personal and stricter eco rules are factors that the growths can limit. 

Optimists draw courage from the fact that the indices above the low points of January remained.  That will the beginning its of and trial of bottom formation and the chance on a recession reduce.  But the macro-economic facts point otherwise out. 

The mostly in the eye jumping was the trusting of entrepreneurs in the services sector.  This wanted to see in January the largest drop ever.  The level of the index is scarcely higher than after the attacks of 11 September.  There becomes sleepiness said that this index a less good predicting value has then that of the industry, but because the problems in the economy self this time especially in the house market and in the financial sector show, will that this sometimes otherwise want to can be.  Also other trust indicators sketch a town gloomier image, as the trusting under small entrepreneurs and the consumers confidence.  No improvement house market De house market want to see no single improvement.  On the contrary, the valleys of the sales and the prices its largest in the recent history.  The number of houses that is built is back on the level of beginning years ninety, but really stand it still too much houses for sale.  Overdue payments go up further.  It is even so that some buyers their house normally leave and the transferring at the bank.  In contrast till what in our country customary is, can tell the bank a possible rest debt not on the buyers.  With that are saddled banks thus with extra losses.  It is then also no wondrous that banks the mortgage conditions always further tighten up.  Credit crisis worsens appeared the conditions Banks for all loans at too edges.  But loans for commercial real estate stretch the crown.  More than 80% of all banks sharpens the conditions for these loans on.  This is alarming, since investments in commercial real estate supported in the third and fourth quarter of last year yet robust alleys and with that the growth.  Moreover here also (to) many money has been loaned against (to) favorable conditions.  If this collapses thus, what the high extent implies, then falls there prevent a pillar under the growth away.  Banks sharpen their conditions a few reasons on.  Firstly they do goes this always as the economic more badly.  The risk that loans are not refunded becomes after all larger.  Further banks have to provide now long not always sufficient capital new loans.  Many banks have to take Advantage of the past years special constructions opgezet the higher output on mortgage related bonds.  These constructions were held outside the balance.  Only now that mortgage related bonds many of their value have lost,
become love forced banks or more to take they still on the balance.  If they do not do will this, will that large reputation damage yield.  Also all loans that they have provides take-over purchases to finance and that actual had must become resold, stand yet on the balances of the banks.  This takes all possession of the capital of the banks, through which they provide can less new loans.  The credit crisis limits self thus not longer till the house sector.  Generous or heavy Or the recession there comes is already almost no question more.  A more important question is or will become one generous then well a heavy recession.  The model of credit facts growth appears to have had its longest time.  As humans self forced see their debts strongly to decrease, then can that easy lead till a heavy recession.  In that case step jumble each other restorative mechanisms in working.  The credit crisis turns then vigorously self away and drags the whole acabadabra of MBS-and, CDO, CDS-and, SIV et cetera with self with.  Profits come to stand under pressure and purses fall further away.   follow and that move the consumption prevent further under pressure.  Only so far it is not yet long.  I draw yet hope from the fact that heavy recessions or depressions in it lately always paired went with monetary authorities that too late or been wrong reacted.  What that the Fed all hesitance has concerned let sail.  Further supply adaptations played often a large role in heavy recessions.  On this moment low in proportions are the supplies till the sales. 

BNP Paribas has made related in the fourth quarter of last year 42 per cent less profit then a year before through redemptions at the credit crisis.  The net profit came from on more than 1 billion euro, reported the largest bank of France Wednesday. 

The figures come to the same thing with the temporary results that end of Januaries were announced. 

BNP Paribas was one of the first European banks that last year as consequence of problems on the American mortgage market robust redemptions had to report.  BNP Paribas wrote off in the fourth quarter in totally 898 million Euros.  With that is the bank less heavily hit then other banks as for instance UBS or its French rivals Crédit Agricole and Société Générale. 

Come up markets

Despite the profit decline in the fourth quarter posted BNP Paribas over whole 2007 a record profit of 7.8 billion euro, 7 per cent more than in 2006.  The total profits went with 11 per cent upwards to 31 billion euro, also a record.  The group is optimistic over the walking year, despite the defying economic climate and the exceptional volatility on the purses, according to senior official Baudouin Prot. 

BNP Paribas want to expand especially its presence in come up markets, as Brasil, China, India, the countries around the mediterranean Sea and eastern Europe.  The group want its earnings from come up countries within three year double until 15 per cent of the total. 

Market value

On the overripe in Paris stood the share BNP Paribas 0.4 per cent higher.  Since this year begin is the share gone down with 19 per cent in value.  The market value of BNP Paribas amounts to approximately 54 billion euro. 

BNP Paribas is named sleepiness to take as a candidate Société Générale over.  The French branch companion had to report last month a loss of almost 5 billion euro.  That is causes according to Société Générale through stupid investments of a single merchant.  End of January said to study BNP Paribas a possible bid on Société Générale. 

Senior official Prot had not to say Wednesday or will bring out BNP Paribas actively a bid on Société Générale.  According to Prot is the situation by the second to largest bank of France ,,complex”.  BNP Paribas did to incorporate in 1999 an in vain attempt Société Générale in. 

The American shares its Tuesday layer lift closed.  The profit of the beginning of the day evaporated because the oil price till above $100 alley. 

The Dow Jones Industrial Average shut Tuesday 0.09% layer on 12.337,22, the S&P500 fell furnished to end also 0.09% till 1,348.78 and the Nasdaq Composite Index 0.67% in on 2.306,20. 

The high oil price was favorably for shares in the oil sector.  Oil group ExxonMobil shut 1.9% higher, ConocoPhillips 1.8% and Chevron 1,4%. 

The rest of the market pleasantly had been hit less.  ‘How can the Fed say that inflation no problem will be, if the oil price on $100 per barrel stands?’ according to merchant Steve Sachs of Rydex Investments. 

After the fall back from the overripe Tuesday noon, see some market participants the increase of the morning as a wrong and count they on more losses in the coming days.  ‘I got already not about which we today rising were’, said Sachs.  ‘This sale wave is a reaction on the being missing from good news.’ 

On the other hand there not already too much value may become attached at the drop of Tuesday noon, since the volume layer was and many investors wait for yet.  ‘The more greater part of the market wait on the inflation figures and the Fed-minutes of Wednesday’, according to Sachs. 

Profit on the Asian purses gave only cause till optimism at the beginning of the trading day. 

Problems in the financial corner remain print however the markets, as Tuesday again on that by Credit Suisse, that a package mortgage effects for $2.85 billion .  Furthermore writes The Welled Street Journal that Lehman Brothers $1.3 billion must write off on its loans wallet in the commercial real estate sector. 

The quarter message of Bank-Mart wanted to receive with mixed enthusiasm through the market.  The net profit of the retailer ascended in the fourth quarter with 4%, but the profit outlook for the present quarter was under the market consensus.  The share won 0,4%. 

The Amsterdam Exchange Index is Tuesday higher closed.  In the course of the morning, the losses changed in profit became Welled became held, that after the noon also thanks to the positive opening of Street.  The AEX-index shut won ended 0.9% more high on 448.77 points, the Midkap 1.3% on 613.83 points and the Smallcap 0.3% more high on 621.53 points. 

"The overripe opening lower after alarming messages of financial institutions than a Barclays and Credit Suisse, but knew self here in the course of the morning from repairing and the profit in the noon fast to love", according to merchant Rethling

"A lower quarter profit by Barclays and a redemption by Credit Suisse saw to in the mornings yet for loss, just then Barclays with an accompanying explanation came, reacted the market positively through which the loss became changed in profit", said Raterink. 

Welled Street open after the long weekend in the green figures, supported through the profit in Asia.  Although the AEX after 15.00 hour what of its high point returned, carried the positive opening in the U.S. well by keeping of the profit on the Amsterdam purse. 

Corporate Deliberately pulled in the noon the attention on the Damrak.  The American sector companion Staples made to bring to be a bid of EUR7,25 known resoles per share from on the Amsterdam supplier of office articles.  This proposal values the business on EUR2,5 billion.  The share shut 39% higher. 

The merchant ups and downs further on the low volumes, that on it point that the private investors stay away from the market. 

State Bonds ended higher.  The Euro quoted 0.6% more high on $1,4740. 

The European stock markets its Tuesday higher closed, supported through robust course profits at a number of insurers and Briton banks.  All financials did not it however just good, after an unexpected billions redemption through the Swiss bank giant Credit Suisse.  The EuroStoxx 50 ditch Tuesday 0.27% more high on 3.805,27.  The DAX-30 alley 0.50% till 7.002,29, the CAC-40 ended 0.49% more high on 4,885.83 and the FTSE-100 climbed 0.34% till 5.966,90. 

The redemption of $2.85 billion at structured credit products was according to Credit Suisse also the consequence of appreciations mistake by merchants, that suspended be before meanwhile.  Credit Suisse enclosed 6.6% lower and also UBS (-0,6%) and Societe General (-1,3%) furnished. 

The French insurer CNP Assurances shut however 6.8% higher, on take-over purchase speculation. 

The British bank Barclays shut 3.7% more high after results over 2007.  The net profit went down with 3%, as the market expected had approximately.  The increase of the redemptions fell however with, with GBP1,6 billion against GBP1,3 billion in the preceding quarter. 

"That is better than many had feared and good can become doorvertaald to other British banks, with name Royal Bank or Scotland, HBSC and Lloyds", said analyst Alex Miser of Collins Stewart.  The named British sector enjoyments ends respective 1,6%, 0.4% and 1.8% higher. 

Also the Dutch bank and insurer ING shut 2.3% higher, in run-up to the four quarter figures of Wednesday. 

Raw materials funds took advantage of the oil price, that strong stubborn till above $97 per barrel, while also the platinaprijs to new records ascended.  Mine building giant Rio Tinto shut shut 2.2% higher, the Italian energy group Eni 1.9% higher. 

Norsk Hydro lost however 34,7%, after the business posted a 27% layer net profit by a volume of trade drop of 7%.  The raw materials group know the meager results at lower aluminum price, weaker markets for distribution and raffinageactiviteiten and negative currency-effects. 

I have found an excellent list that sums up the advantages of Foreign Exchange Market trading.

Western Capital Forex sums it up like this:

The effective utilization of the capital

The principle of the margin trade provides an opportunity to trade in the FOREX market in the volumes considerably exceeding your deposit. Traders have an opportunity of trading for profit on both up, and downturn  trends.

Thus, in order to complete a transaction it is not necessity to have the full amount of the transaction. That is, for the conclusion of a transaction you borrow the missing amount, therefore giving some leverage to the initial amount.

Opportunity to operate risks

FOREX is not only fascinating, but does bear certain risks. It is possible to come out of the game as a winner, but there is also a risk of losing money. Fortunately, modern FOREX allows traders to operate risks by means of the fundamental and technical analysis, In addition, the use of "stop loss" and "take profit" orders allows the trader to control profit and losses.

Wide range of trading tools

FOREX Market has a wide spectrum of trading opportunities: the basic currency pairs, cross-country by rates, and even exotic currencies. Traders can trade for just one day or open long-term positions if they can see the benefits and prospects of their positions

Fundamental trading opportunities

The trade in FOREX market is a game based on a macro of both fundamental economic news and trends.

Technical trading opportunities

Trends in FOREX market are usually steadier, than in other markets, and render and are ideally suitable for use with technical trading models.

No commissions ( really no commissions?)

There are no commissions; you pay only a difference between by the seller (ask) and the buyer (bid) price in the bilateral quotation.

Round the clock

The Market works round the clock, transactions are made through the Internet or by a telephone system. Traders can open or close positions at any time.

The list is  huge but I like it.

One thing I don’t understand is why there are no commissions involved. Somebody has to make money from me trading, right?