BSE up 472 points to 19243!

INDICES Points +-Pt +-%
SENSEX é 19,243.17 472.28 2.52
MIDCAP é 7,920.66 169.73 2.19
SMLCAP é 9,550.95 183.87 1.96
BSE-100 é 10,002.76 253.82 2.60
BSE-200 é 2,354.45 59.15 2.58
BSE-500 é 7,511.32 184.45 2.52

HK up 550 points to 30405!

China up 27 points to 5589.63

FTSE up DAX up CAC down.

I have told many people to hold unto China until the Olympics next year.

But here it is in writing from Forbes.

Sell China before the Games
2007-10-25 23:49:14 Forbes








Stocks


From its lows just below 1,000 in June 2005, the Shanghai Composite Index has risen 500% to above 6,000--perhaps the most parabolic rise of any major stock market in modern times.


Let's compare it with the great Japanese boom of the 1980s.


The Nikkei 225 rose almost 300% from its July 1984 lows to its bubble peak. It then began a 13-year slide and now trades at less than half its all-time high near 39,000.


Finally here's our own NASDAQ Composite index during the great Internet mania.


From its August 1998 low to its record highs above 5,000 in March 2000, the NASDAQ registered a 240% gain--less than half what Shanghai has posted in the last couple of years.


Even the great bull market of the Roaring Twenties advanced less than 300% in the five years before September 1929.


And although India and Brazil rallied more over a longer time, China appears to have registered a bigger advance in a shorter time than any major stock market I can think of in recent years.


So, it's no surprise that we've seen the classic signs of a great investment bubble.


Recently, The Wall Street Journal reported that the average first-day return for Chinese initial public offerings (IPOs) in 2007 has been 192%. UBS Securities recently noted that the Shanghai Composite index's price-to-earnings ratio of 68-times-trailing-12-month earnings is virtually identical to the NASDAQ's bubble high and slightly below the Nikkei's 73-times P/E at its peak.


PetroChina (nyse: PTR) recently passed General Electric (nyse: GE) as the second-largest company in the world in stock market capitalization (with over $440 billion), trailing only Exxon Mobil (nyse: XOM).


And we've read for months about the hundreds of thousands of ordinary Chinese clamoring to open brokerage accounts, often with borrowed money, to make their fortunes in the stock market.


Like all manias of this kind, the Great China Stock Bubble is rooted in economic realities--the rise of China as a great economic power.


And indeed, Chinese economic growth has been astonishing--11.9% annually in the second quarter, with no sign of a slowdown. China may surpass Germany as the world's third-largest economy this year. It has enjoyed a record $185 billion trade surplus so far in 2007, and its foreign currency reserves have reached a massive $1.4 trillion. And Chinese companies appear to be wildly profitable, with rapidly growing earnings.


But like all bubbles, this one comes with a large dose of artificiality and imbalances.


First, as an export-driven economy, much of China's growth is based on an artificially depressed currency. The Chinese government has kept a firm grip on the Renminbi, so that it's appreciated a mere 9% against the U.S. dollar over the last two years--while the Euro has risen about twice as much against the greenback.


Second, to keep the growth machine humming, the government has kept a lid on interest rates. Despite five recent hikes, bank deposits in China pay less than 4%. With annual inflation near 6.5%, that guarantees savers will lose purchasing power every year. So, why not take a flyer on stocks?


Third, the Shanghai and Shenzhen exchanges are tightly controlled affairs, dominated by state-owned companies. And experienced global institutional investors can invest there only to a limited degree.


That means too many novices are engaging in what looks much more like gambling and speculation than long-term investing, making the exchanges much more vulnerable to manias and panics.


Trust me, this can't last--it never has. The only question is when it will end.


Many investors hope it will continue until the Beijing Olympics next summer, as the government pulls out all the stops to present the glorious new China to the world. That may be why President Hu Jintao, at the recent party National Congress, pledged to keep the growth engine humming and even soft-pedaled any potential conflict with Taiwan. Clearly, nothing will be allowed to stop this show.


But markets have a funny way of not following the wishes of investors, politicians or pundits (and I predicteda crash in the Chinese market in February, which duly happened--before the Shanghai index went on to double).


"They'll defy gravity and all of a sudden they'll collapse," says Professor Eugene N. White of Rutgers University, an expert on market manias.


The Chinese market could be hit by a serious slowdown in the U.S. and Europe; by another global financial crisis like we saw this past summer, or by unexpected earnings blowups or accounting problems at major Chinese companies, among other things.


That's why I'd recommend that no investor put another dime into high-flying China-based mutual funds, ADRs or ETFs at this time. And if you were smart or lucky enough to invest in China before, you should promptly lock in at least half of your hefty gains. In fact, I'd cut exposure to emerging markets in general to no more than 5% of your portfolio.


"It can go up another 100%, 200%, but the higher it goes, the riskier the bet it becomes," cautions Professor White.


Forewarned is forearmed, as they say.


(Howard Gold, Forbes.com)

http://english.sina.com/business/forbes/2007/1025/32.html

__________________________________________________________

No guesses as to who prompted the article.

"What is the hardest task in the world? To think."
-Ralph Waldo Emerson


Holy snikey and all!Man, I can't fathom this meteoric rise in HK. It cracked 31000 today to atain its highest high!

And China also climbs but still trading below its all time high.

http://www.forbes.com/markets/feeds/afx/2007/10/29/afx4271372.html

And BSE? It broke the surface of 20,000 in intra-day trading.


MUMBAI, India: Indian shares soared to a record high Monday as the key stock index crossed the 20,000 level, propelled by foreign fund buying.

Indian shares surged in late trade, with the Bombay Stock Exchange's 30-share Sensex up 762 points, or 3.96 percent, to 20,004.62 points.

Investors appeared to be encouraged by clarity from the market regulator last week on foreign fund investment and assurances to speed up registration for foreign institutional investors.

On the broader National Stock Exchange, the 50-company S&P Nifty index also climbed 200 points, up 3.6 percent, to 5,909 points.

Last week Indian shares had plunged in volatile trade over uncertainty about the Securities and Exchange Board of India proposal to curb foreign investment in Indian shares.

Analysts say SEBI's decision to finalize guidelines to limit participatory notes — a financial instrument allowing foreign funds not registered with the regulator to invest in Indian shares — would help streamline markets in the long run.

Investors have backed the capital markets regulator's decision to allow proprietary and corporate sub-accounts to continue issuing participatory notes and its plan to permit pension funds to register as foreign institutional investors.

The board on Thursday banned the issue of participatory notes with derivatives as underlying assets by foreign institutional investors, a move that was expected to hurt foreign funds inflow in the short term.

But on Monday, the Sensex made gains across sectors when it crossed the psychologically important 20,000 mark.

Among the leaders was Larsen & Toubro Ltd. up 9 percent at 4,228 rupees, HDFC up 7.6 percent at 2,760 rupees, followed by Oil & Natural Gas Corp. or ONGC up 6 percent at 1,228 rupees and Reliance Industries Ltd. up 5 percent at 2,836 rupees.


INDICES Points +-Pt +-%
SENSEX é 19,977.67 734.50 3.82
MIDCAP é 8,082.54 161.88 2.04
SMLCAP é 9,705.20 154.25 1.62
BSE-100 é 10,349.74 346.98 3.47
BSE-200 é 2,431.02 76.57 3.25
BSE-500 é 7,747.05 235.73 3.14




Europe is up, Dow Futures are up. Gold at $791 and silver at $14.50. Oil at 91.70

Man Newton would be stunned!

HK up slightly, 51 points, to 31638.

China also up to 5897, still under its record high.

BSE down

Dow futures down. Oil down, gold down.

Dig the loonie!

China shares fall as news of fuel price hike hits airlines
The Associated PressPublished: November 1, 2007


SHANGHAI, China: Chinese stocks fell Thursday on concerns that a hike in fuel prices would hurt earnings for airlines and other sectors.

The benchmark Shanghai Composite Index lost 0.7 percent, or 40.48 points, to 5,914.29.

The Shenzhen Composite Index fell 2.4 percent to 1,427.89. Beijing on late Wednesday raised prices of gasoline, diesel oil and aviation kerosene by roughly 10 percent, as regional shortages of fuel spread due to record high crude oil prices.

Airline shares fell sharply, with China Southern Airlines down 5.6 percent to 21.61 yuan. China Eastern Airlines slipped 4.7 percent to 14.53 yuan and Air China shed 4.7 percent to CNY21.02.

Refiners, whose margins had been squeezed by soaring crude oil prices and fuel product price controls, gained.

BSE opened high with a gap but closed down
113 points

INDICES Points +-Pt +-%
SENSEX ê 19,724.35 -113.64 -0.57
MIDCAP ê 7,966.54 -168.67 -2.07
SMLCAP ê 9,646.61 -150.25 -1.53
BSE-100 ê 10,310.72 -80.47 -0.77
BSE-200 ê 2,417.68 -22.19 -0.91
BSE-500 ê 7,711.05 -74.17 -0.95

Europe losing ground.Oil above $95 and loonie flew past 1.06 to reach all time high in 50 years!

HK up and Nikkei as well.
Dow futures down considerably.

It's a see-saw ride.

SHANGHAI, China — China's main stock index rose Wednesday as investors snapped up bargains after four straight days of losses. But gains were limited by lingering worries over a possible interest rate hike.

The benchmark Shanghai Composite Index gained 1.2 percent, or 65.21 points, to 5,601.78 in light trading. The Shenzhen Composite Index edged down 0.03 percent to 1,379.30.

"The market may have hit bottom, as large capitalized shares, which succumbed to heavy selling pressure in the past few days on overvaluation concerns, are showing signs of stabilizing," said Tang Xiaosheng, an analyst at Guosen Securities.

Industrial and Commercial Bank of China gained 4.8 percent to 8.55 yuan after falling 7.7 percent in the previous three sessions, while Bank of China rose 3.8 percent to 7.37 yuan after losing 5.1 percent in the same period.

PetroChina rose 1.1 percent to 40.43 yuan after slumping 9 percent on Tuesday, while rival China Petroleum & Chemical, or Sinopec, gained 2.2 percent to 24.21 yuan.

"Market sentiment is still cautious, and institutions are willing to buy only when the Shanghai index falls to around 5,500," said Chen Huiqin, an analyst at Huatai Securities.

Concerns that the government may raise interest rates soon to help cool the economy kept investors from buying too aggressively, analysts said.

Expectations that more initial public offerings will be launched in the market later this year mean that many investors are holding off on buying, they said.

In currency dealings, the dollar's fall to another record low against the euro pushed the yuan to a record high against the greenback.

http://www.chron.com/disp/story.mpl/ap/fn/5280599.html


BSE down 110 points to 19289.83

INDICES Points +-Pt +-%
SENSEX ê 19,289.83 -110.84 -0.57
MIDCAP ê 7,985.96 -29.34 -0.37
SMLCAP ê 9,695.13 -107.90 -1.10
BSE-100 ê 10,162.41 -38.06 -0.37
BSE-200 ê 2,387.89 -8.09 -0.34
BSE-500 ê 7,635.51 -29.57 -0.39

Europe down. Oil went past $98 in Asian trading. Gold at $840 and silver at $15.75
And our sweet CAND zips past $1.10 this morning.

China sends loonie flying above $1.10
TAVIA GRANT


Wednesday, November 07, 2007

China's move to diversify its $1.43-trillion (U.S.) in foreign reserves caused a collapse in the U.S. dollar Wednesday and sent the Canadian currency hurtling over the $1.10 mark.

The loonie soared to $1.1024, up almost two full cents from Tuesday's record close of $1.0852. The currency's astonishing gains over the past year are the largest in its history.

The latest jump came as the greenback fell the most since September against the currencies of its six biggest trading partners, according to Bloomberg. That, in turn, sent oil prices above $98 a barrel and gold surging above $845 — making Canada's commodity-linked currency all the more attractive.

“All of these developments are like catnip for the Canadian dollar, which has quite simply broken free from any restraints,” said Douglas Porter, deputy chief economist at BMO Nesbitt Burns Inc., in a note.

The move came one day after another huge move in the loonie, this time sparked by Bank of Canada comments that suggest interest rates won't be cut. Deputy Governor Paul Jenkins also refrained from expressing much concern about the currency's appreciation.

“It was hardly the forceful condemnation some might have feared, and CAD quickly resumed appreciating as soon as Jenkins left the podium,” Bank of Nova Scotia analysts said in a note.

Wednesday's turbulence in global currency markets comes as the European Central Bank and Bank of England decide on interest rates. Both are expected to remain on hold.

China delivered a one-two punch to the dollar as a top lawmaker suggested a bigger role for the euro in its hoard of foreign reserves and a central banker said the dollar is losing its global currency status.

The euro hit a record high above $1.47 following remarks on Wednesday by Cheng Siwei, vice-chairman of the standing committee of the National People's Congress, China's parliament, pointing to diversification of the country's reserves.

“In terms of the structure of our foreign exchange reserves, we should take advantage of the appreciation of strong currencies to offset the depreciation of weak currencies,” Cheng told a financial forum.

“For example, in the current foreign reserves structure, I mean the bonds we bought, the euro is appreciating against the yuan while the U.S. dollar is depreciating against the yuan. So we should make a balance between the two,” Mr. Cheng said.

Mr. Cheng's position gives him influence in Beijing, where he holds a rank equivalent to vice premier. However, he does not have real authority over financial matters and has been known to speak on a range of subjects, from the stock market to foreign acquisitions, on which he does not control policy.

Glenn Maguire, an economist with Societe Generale in Hong Kong, estimated that China holds 65-to-70 per cent of its reserves in dollars and a much smaller share in euros.

“If China were indeed to balance its FX reserve holdings between the dollar and the euro, this would represent a massive selling of dollars and buying of euros,” Mr. Maguire wrote.

Xu Jian, vice head of the People's Bank of China's Communist Party school, twisted the knife by saying recent surges in gold and oil were a reflection of the dollar's loss of standing.

“The U.S dollar's global currency status is shaky and the creditworthiness of dollar assets is falling,” said Mr. Xu, who noted he was speaking in a personal capacity.

He said he expected the dollar to weaken further in 2008 under the impact of the gaping U.S. trade deficit. That could push the price of gold to $1,000 an ounce from a 28-year peak of $840 scaled on Wednesday, Mr. Xu said.

http://www.globeinvestor.com/servlet/story/RTGAM.20071107.wloonie1107/GIStory/