Wall St. closes down for January, Shake Shack rallies in debut

NEW YORK (Reuters) - U.S. stocks closed down on Friday after a volatile session as investors worried at the end of a rough month for the market about weak U.S. growth data and whether instability in Europe could hurt corporate earnings in the United States.
U.S. economic growth slowed sharply in the fourth quarter as weak business spending and a wider trade deficit offset the fastest pace of consumer spending since 2006.
This came after Greece's finance minister said the government would not cooperate with the European Union and International Monetary Fund mission.
A brief afternoon rally from rising oil prices failed to stick as investors, nervous about U.S. and global economies, fled to bonds from equities and even sold off utilities stocks, the worst performing sector on the day.
"It feels like a flight-to-safety trade on a month-end. People are putting money into assets that have done well this month," said Peter Coleman, head trader at ConvergEx Group in New York, who said Friday was a good reflection of the month.
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China Money Rate Completes Biggest Monthly Decline Since May

(Bloomberg) -- China’s benchmark money-market rate capped the biggest monthly drop since May after the central bank added funds to the financial system to offset capital outflows and meet a seasonal pickup in demand for cash.
The seven-day repurchase rate, a gauge of interbank funding availability, fell 79 basis points in January to 4.17 percent as of 4:30 p.m. in Shanghai, a weighted average from the National Interbank Funding Center shows. It climbed as high as 6.59 percent in January 2014, during the two weeks leading up to the Lunar New Year holiday. Demand for money climbs before and during the weeklong break, which begins Feb. 18 this year, as people exchange gifts and families get together for meals.

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Why food prices won’t fall as fast as gas prices

What goes up invariably comes down, but not always as quickly as we might like.
Americans who are benefiting from lower gas prices could see some food prices fall, especially dairy and meat products, but the rate of decline will be at a far-slower pace than the recent plunge in the price of gasoline, commodity traders and insiders say.
Just six months ago, oil prices were heading close to $100 a barrel, partially as a result of unrest in Iraq and fears of supply interruptions. Now, as the U.S. may supersede Saudi Arabia as the world’s biggest oil producer, concerns over world economic growth (outside of the U.S. economy, which actually appears to be breaking out of a sub-par recovery) oil prices have plunged. West Texas Intermediate crude oil prices for the week ending Jan. 26, 2015, fell to $45.15 a barrel, down 53% from a year ago.

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Ahlibank signs MoU with Sezad for financing projects in Duqm

Muscat - Ahlibank and its Islamic counterpart Al Hilal Islamic Banking Services recently entered into a memorandum of understanding (MoU) with the Duqm Special Economic Zone Authority (Sezad) to provide banking services and finance to investors and companies setting up business ventures in Duqm.
The MoU was signed by Ahlibank CEO Lloyd Maddock and H E Yahya al Jabri, chairman of Sezad, at the Authority's office in Knowledge Oasis Muscat, a press release said.

In the corporate banking and SME segments, the bank will offer working capital and term loans, lease finance, trade finance, guarantees and 'B2B' electronic banking.
Maddock said, "We are pleased to support Sezad's vision through providing the bank's tailor-made products and services to corporates and SMEs that take advantage of the unique investment platform and infrastructure at Duqm."

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Dubai-Luxembourg firm launches Islamic factoring for SMEs

An investment group based in Dubai and Luxembourg has launched an Islamic trade receivables financing platform catering to the Gulf region's small businesses, with plans to tap the capital markets to fund the venture, its chief executive told Reuters.
Tawreeq Holdings developed the concept over the past year and a half, aiming to give smaller firms a funding alternative to bank loans, which can be cumbersome and costly for most, said chief executive Haitham Al Refaie.
Besides start-up capital from regional investors, the firm plans to raise additional funds, he added without giving monetary figures. "We are in the process of launching our investment funds and sukuk to attract liquidity from international investors."
In conventional factoring, a bank takes over a firm's receivables and collects payments on them, while charging interest on a loan extended to the firm.
Interest is banned in Islamic finance so other structures must be used. Sharia-compliant factoring is rare in the Gulf, although it is offered in Malaysia under a format that involves the sale of debt for cash, with Islamic banks serving as intermediaries. Many scholars outside Malaysia view the format, known as bai al dayn, as impermissible.
Tawreeq's platform provides sharia-compliant factoring by connecting corporates, suppliers and investors to securitise trade receivables, said Al Refaie, a former head of the business banking group at National Bank of Abu Dhabi.
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Keep Selling Euros

Keep Selling Euros
Dollar: Why We Aren’t Worried About the Fed
NZD Extends Losses But Is Decline Justified?
CAD: Hits Fresh Lows as Oil Prices Decline
AUD: Gold Prices Edge Lower
GBP: BoE Confusion
Keep Selling Euros

The European Central Bank’s decision to start buying government bonds took a major toll on the EUR/USD. The currency pair lost more than 4.5% in a matter of days with the move exceeding our initial 500-pip target. After such a fast and sharp decline, a rebound like the one seen on Monday is not unusual and expected especially given the massive amount of short positions in the euro. An increase in German business confidence helped the euro recover from its initial post Greek election decline but we believe the gains will be short-lived and investors should continue to sell euros. The electoral victory by the Syriza party raises medium term problems for the euro. The opposition ran on an anti-austerity campaign that is great for voters but terrible for creditors. As the country runs low on cash, Prime Minister Alexis Tsipras’ will need to restructure the country’s loan agreements quickly. Tspiras wants part of their debt to be written off but their creditors, which include the ECB and Germany refuse to do so. If a new agreement is not made, its creditors could withhold the next bailout payment and Greece could face default. Of course, the Eurozone and the ECB have a lot to lose if Greece defaults because the central bank is tasked with maintaining financial stability and this would wreck havoc on European assets. In response to the Syriza party’s victory, bond yields in Europe jumped, reflecting increased uncertainty and ongoing risks for the euro. At the same time the upcoming FOMC meeting should keep the dollar bid. If the Fed leaves its monetary policy statement unchanged, the dollar will rise, sending the EUR/USD pair lower (more in the dollar portion of our commentary).
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Standard Bank's metals chief Coupland goes on temporary leave

Standard Bank Plc's charismatic co-head of commodities Jim Coupland is on temporary leave for personal reasons, his counterpart Mark Buncombe to take over day-to-day reins of one of the world's top metals banks, the bank said on Friday.
A bank representative did not specify a date for the return of Coupland, 57, who started Standard's base metals futures trading business two decades ago and made it one of the first Western banks to break into China.
Coupland goes on leave at a challenging time for Standard Bank as it seeks to recoup millions of dollars in losses from a metal financing scandal in China's Qingdao port that rocked markets last year.
Standard Bank's exposure to the purported fraud was about $170 million worth of aluminium, but the co-chief executive has said it was "too early" to tell whether or not further writedowns were needed. The bank is a subsidiary of Standard Bank Group, Africa's largest lender.
Coupland did not return calls seeking comment.
Emails sent to his work address came back with an out of office reply saying: "I am currently on leave and have limited access to email".
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Exclusive: USDA Secretary orders update of animal welfare research strategy

CHICAGO (Reuters) - U.S. Department of Agriculture Secretary Tom Vilsack has directed agency staff to create and deliver an updated Animal Welfare Strategy plan within 60 days, according to an internal email reviewed by Reuters.
The emailed memo from Chavonda Jacobs-Young, head of the agency's Agricultural Research Service, was sent to all Animal Research Service employees on Friday afternoon in response to recent media reports over controversial animal welfare conditions at its U.S. Meat Animal Research Center in Nebraska.
The new strategy will include updated training for government employees and others who work with animals in the service's research labs, according to the email. In addition, an independent panel will be convened to review the group's animal handling protocols, policies and research practices.
What specific training steps would be implemented, and who would be on the independent review panel, is not known. Animal Research Service officials could not be reached for comment on Friday evening.
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U.S. seeks reversal of landmark insider trading ruling

NEW YORK (Reuters) - Federal prosecutors in New York on Friday asked a U.S. appeals court to reconsider a landmark ruling that curtailed their ability to pursue insider trading cases and jeopardized several convictions.
Prosecutors under Manhattan U.S. Attorney Preet Bharara asked the 2nd U.S. Circuit Court of Appeals to grant a rehearing in the case of hedge fund managers Todd Newman and Anthony Chiasson, who in December won the reversal of their insider trading convictions.
Prosecutors sought a rehearing by both the three-judge panel that ruled for Newman and Chiasson as well as the full appeals court, potentially 15 judges under its rules.
In their petition, prosecutors argued the decision broke with U.S. Supreme Court precedent and "threatens the effective enforcement of the securities laws."
"The panel's missteps will have serious consequences far beyond this case," prosecutors wrote.
Lawyers for Newman and Chiasson declined to comment.
The 2nd Circuit ruling held that prosecutors need to prove a trader knew that the original source of a tip received a benefit in exchange for the information.
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Forex - EUR/USD pares losses after disappointing U.S. data

The euro pared losses against the U.S. dollar on Friday, pulling away from 11-year lows after the release of disappointing U.S. housing and manufacturing data, while markets were still digesting the European Central Bank's announcement of a large scale stimulus program.
EUR/USD eased off 1.1118, the lowest since September 2003, to hit 1.1247 during U.S. morning trade, still down 1.02%.
The pair was likely to find support at 1.0762 and resistance at 1.1647, Thursday's high.
In a report, the National Association of Realtors said that U.S. existing home sales rose by 2.4% in December to 5,040 million units from a revised total of 4,920 million units in November. Analysts had expected existing home sales to hit 5,060 million units last month.
Separately, research firm Markit said the U.S. flash manufacturing purchasing managers' index fell to 53.7 this month from 53.9 in December, disappointing expectations for a rise to 54.0.
The euro found some support after a report on Friday showed that the Markit preliminary composite PMI, which measures activity in the manufacturing and services sectors in the euro area, rose to 52.2 this month from a reading of 51.4 in December.
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BSE Sensex closes above 29,000-mark for first time; NSE Nifty at new peak of 8,761

Extending their record-setting spree for the third day, the BSE Sensex today closed above the 29,000-mark for the first time and the Nifty touched another peak of 8,774.15 with sustained buying by funds in healthcare, capital goods, metal and auto sector stocks.
Continuing its surge for the sixth day, the BSE Sensex crossed the landmark 29,000-level for the first time to hit a life-time high of 29,060.41.
After paring some gains, the 30-share index settled at an all-time closing peak of 29,006.02, up by 117.16 points, or 0.41 per cent, over the previous close. It surpassed the earlier record closing of 28,888.86 hit yesterday.
The gauge has now gone up by 1,659.20 points in the six consecutive sessions.

Anindya Banerjee, analyst, Kotak Securities:
Expectation of a large scale asset purchase program from the European central bank continued to push domestic equity markets higher. Domestic indices closed at a lifetime high, with Nifty closing at 8761 and Sensex closing at 29,006. Rupee has been largely flattish for the last two days as state run banks have been heard to be intervening aggressively. India and its domestic asset and currency continue to draw significant positive externality from the ongoing cycle of hard asset deflation and financial asset inflation. G7 central banks, with their ever rising balance sheets, have engineered a bull run in global equity markets, which is happening inspite of a weakening global economy. All in all, we expect the exuberance to remain at least till the Union Budget and as a result, Rupee can remain ranged between 61.15/20 and 62.30/50 over the medium term.

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Saudi King Abdullah dies, new ruler is Salman

RIYADH (Reuters) - Saudi Arabia's King Abdullah died early on Friday and his brother Salman became king, the royal court in the world's top oil exporter and birthplace of Islam said in an official statement.
King Salman has named his half-brother Muqrin as his crown prince and heir, rapidly moving to forestall any fears of a succession crisis at a moment when Saudi Arabia faces unprecedented turmoil on its borders.
The rise of Islamic State in war-torn Syria and Iraq has brought to the kingdom's frontiers a militant group that vows to bring down the Al Saud dynasty.
In Yemen, the Iran-allied Shi'ite Houthis have all but seized power and plunged the country to the brink of total chaos, opening space for al Qaeda, which waged an insurgency in Saudi Arabia from 2003-06 and nearly killed a top prince in 2009.
The problems in all those countries are being played out against an overarching backdrop of bitter rivalry between Sunni Muslim Saudi Arabia and its arch regional foe Shi'ite Iran and bumps in Riyadh's key relationship with the United States.
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Australia stocks higher at close of trade

Australia stocks were higher after the close on Friday, as gains in the Australian Real Estate Investment Trust, Energy and Consumer Discretionary sectors led shares higher.
At the close in Sydney, the S&P/ASX 200 rose 1.51% to hit a new 1-month high.
The best performers of the session on the S&P/ASX 200 were Worleyparsons Ltd (ASX:WOR), which rose 8.79% or 0.80 points to trade at 9.90 at the close. Meanwhile, Iluka Resources Ltd (ASX:ILU) added 7.42% or 0.490 points to end at 7.090 and Lynas Corporation Ltd (ASX:LYC) was up 7.02% or 0.004 points to 0.061 in late trade.
The worst performers of the session were Arrium Ltd (ASX:ARI), which fell 7.78% or 0.018 points to trade at 0.207 at the close. Steadfast F (ASX:SDF) declined 7.35% or 0.12 points to end at 1.45 and Skilled Group Ltd (ASX:SKE) was down 6.29% or 0.090 points to 1.340.
Rising stocks outnumbered declining ones on the Sydney Stock Exchange by 352 to 226 and 31 ended unchanged.
The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was down 8.88% to 14.082.
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Investment calendar 2015: Tips and tricks to play stock market trends

Certain trends repeat themselves offering an opportunity to make money. But how well does each one work? 

Some private investors regard old stock market adages as useless as gazing into a crystal ball.

But others are avid followers and believe there is money to be made from certain stock market trends and patterns in which history often repeats itself.

Here, our investment calendar names seven stock market patterns investors should consider playing in 2015. For each one, whether new or old, we assess whether they still live up to their reputation or have simply become a passing trend.

1. January to April: Buy the ten worst performing UK shares and sell after three months

This will be one of the less familiar strategies on the list but it is tactic which IG, the stockbroker, argues normally works.
Investors simply buy the ten worst performing shares in the FTSE 350 over the past year and then sell three months later.
The idea is that these shares will bounce back quickly as contrarian investors fish for shares that have become too cheap to ignore after being out of form. As these investors pile in the shares sharply jump in value.
Does it work? Success rating 77pc
According to Brenda Kelly, chief market strategist at IG Group, a strategy of buying the ten ‘dogs of the FTSE 350’ at the beginning of the year and holding them for the first quarter has returned an average of 11.4pc since 2005. In contrast the average return from the broader FTSE 350 index over the same period is 0.75pc.
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Nigeria: JP Morgan Index - CBN Increases Banks' Forex Trading Reserves

LAGOS -- The Central Bank of Nigeria, CBN, yesterday moved to forestall the removal of Nigeria from the JP Morgan's Government Bond Index as it increased banks' foreign exchange trading position.
The apex bank also reversed its decision to ban invisible transactions from the official foreign exchange market, thus making it easy for foreign investors to enter and exit from the nation's financial market.
The apex bank, however, banned banks from selling dollars purchased from the official market and interbank market to Bureaux de Change and other authorised buyers.
This is coming on the heels of further depreciation of the naira in the interbank and parallel market, where the naira depreciated by N4 and N2.5 respectively in three days.
Meanwhile, bank foreign exchange dealers yesterday agree to halt trading whenever the naira depreciates more than two per cent in the interbank market.
Last Friday, United States JP Morgan had placed Nigeria on a negative index watch on its Government Bond Index (GBI-EM), threatening to completely remove the country from the GBI-EM if there is no sufficient dollar liquidity in the interbank market to facilitate entry and exit of investors from the nation's financial market.
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Gain Capital decides to forgive negative client balances – LeapRate Exclusive

LeapRate Exclusive… LeapRate has learned that retail forex broker Gain Capital Holdings Inc (NYSE:GCAP) and its Forex.com unit have sent messages to clients (see example below) that they will not be required to repay negative client balances in their accounts.
That marks a quick reversal for Forex.com. On Tuesday we reported that Forex.com (as well as some other forex brokers) were going after traders to repay negative client balances owed to the company from losses incurred on Swiss Franc trades last Thursday.
What exactly is a ‘negative client balance’?
A lot of retail forex traders (which were short the Swiss Franc) lost on paper more than their money on deposit last Thursday. A lot more. For example, a trader which had $1,000 on deposit with a broker and used it to back a 100x leverage trade long EURCHF would have lost about $20,000 as the EURCHF rate dropped by 20% virtually instantaneously. But the broker only had $1,000 of the trader’s money on deposit. That would leave a $19,000 ‘negative client balance’ which the trader technically owes to the broker.
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Oil prices slip ahead of ECB bond buying decision

LONDON (Reuters) - Brent crude oil dipped towards $48 a barrel on Thursday ahead of an expected decision by the European Central Bank (ECB) to start buying bonds, a move which could push the dollar to new highs and put downward pressure on commodities.
The ECB's Executive Board has proposed a program that would allow it to buy 50 billion euros ($58 billion) of bonds a month starting in March, a euro zone source said. The expected stimulus program has pressured the euro and sent the dollar, seen as a safe haven, soaring.
A strong dollar, buoyed by an expected U.S. interest rate hike and an American economy that is growing while Europe and Asia slow, dents demand for dollar-priced commodities by making them expensive for holders of other currencies.
Oil prices have already more than halved since June last year due to oversupply and a fall in global demand.
Brent crude futures traded at $48.75 a barrel by 0910 GMT, down 28 cents. U.S. crude was down 50 cents at $47.28.
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Oil futures slump ahead of ECB decision, U.S. supply data

Crude oil futures declined on Thursday, as market players awaited the conclusion of the European Central Bank's highly-anticipated monthly policy meeting later in the day.

On the New York Mercantile Exchange, crude oil for delivery in March dropped 53 cents, or 1.11%, to trade at $47.25 a barrel during European morning hours.

A day earlier, New York-traded oil futures jumped $1.31, or 2.82%, to settle at $47.78 a barrel. WTI prices touched $44.20 on January 13, a level not seen since March 2009.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery shed 29 cents, or 0.6%, to trade at $48.74 a barrel.

On Wednesday, London-traded Brent prices rallied $1.04, or 2.17%, to close at $49.03 a barrel. Brent hit $45.19 on January 13, the weakest level since April 2009.

Wednesday\'s gains came after OPEC Secretary-General Abdalla El-Badri said that prices will rebound rather than extend declines to as low as $20 a barrel.

Oil prices have fallen nearly 60% since June as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.
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Verizon (VZ) Stock Trading Lower Today After Analyst Downgrade

NEW YORK (TheStreet) -- Shares of Verizon Communications (VZ - Get Report) are trading lower by 0.66% to $47.86 in pre-market trading on Wednesday after the telecommunications company was downgraded to "equal weight" from "overweight" by analysts at Barclays this morning.
The firm lowered its price target to $51 from $54 on shares of Verizon, saying that 2015 is likely to be a transition year for the phone carrier.
Barclays analysts expect large scale consolidation to ease in 2015 amid the unfavorable regulatory environment, and believes competitive pressures will remain intense.

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Barclays' preferred name in the telecommunications space remains T-Mobile (TMUS) .
New York City-based Verizon delivers broadband and other wireless and wireline communications services to consumer, business, government and wholesale customers.
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Crude oil trading outlook: futures steady at low levels, EIA inventory data eyed

West Texas Intermediate and Brent crude rose on Wednesday after registering hefty losses the prior session as the market seemed to be drawing support at the current low levels and as BHP Billiton said it will reduce the number of active drill rigs in the US. Upside movement, however, was capped by expectations for another weekly jump in US crude oil stockpiles and the outlook for a stronger dollar.
US crude for delivery in March rose 1.23% by 8:34 GMT to $47.04 per barrel, having shifted in a daily range of $47.13-$46.61. The contract settled 5.4% lower on Tuesday at $46.47 a barrel.
Meanwhile on the ICE, Brent for settlement in the same month rose 1.21% to $48.57 a barrel, having ranged between $48.78 and $48.21 during the day. The contract closed 1.74% lower on Tuesday at $47.99 at a premium of $1.52 to its US counterpart. The gap inched up to $1.53 on Wednesday.
Oil prices plunged this week after the International Monetary Fund followed the World Bank into slashing its global growth outlook for this year and the next, saying that most major economies, apart from the US and Spain, will experience a slowdown in expansion.
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