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To: IQBAL LATIF who wrote (26891)	6/8/1999 1:23:00 AM
From: IQBAL LATIF	Respond to of 50167

Weak euro strengthens German hopes By Tony Barber in Frankfurt The euro's weakness has begun to have a positive impact on the German economy, according to official figures released yesterday. Manufacturing industry orders showed an unexpectedly strong rise in April, thanks partly to the decline in the European single currency. The month-on-month 3.3 per cent rise followed a decline of 0.7 per cent in March and suggested Germany might finally be heading for a period of faster economic growth after the shock inflicted by the 1997-98 financial crises in east Asia and Russia. Overall, the German government is predicting growth of 1.5 per cent this year, ranking Germany with Italy as the worst-performing euro-zone economy. But yesterday's figures and recent signs of improving business confidence in Germany are evidence that although the weak euro is a political problem for Europe's leaders, it could have a beneficial economic impact, particularly for exporters. The euro touched a new low of $1.0260 in early European trading yesterday after a member of the European Central Bank's executive board, Eugenio Domingo Solans, was quoted as saying it was possible the currency would touch parity against the dollar. He added that the euro should rise in coming months. The increase in Germany's manufacturing industry orders was driven by a 5.1 per cent rise in orders from abroad. Domestic German orders rose by 2.2 per cent. Economists cautioned that the finance ministry, which released the figures, was expected to revise them down at a later date because of unusually strong one-off factors applying in April. Opposition Christian Democrats have sought to make capital of the euro's fall by blaming it on erratic government policies. According to an opinion poll released on Sunday, 75 per cent of Germans believe the euro's weakness is harming Germany's economic prospects. The rise in German industrial orders was strong enough to imply that the German economy may perform better in the second quarter of this year than had been feared. The economy contracted in the last quarter of 1998 and gross domestic product figures due today are expected to show only a modest rise in the first three months of this year. Data from the European Union's statistical agency Eurostat yesterday showed that unemployment remains a persistent problem in Germany. The jobless rate rose to 9.1 per cent in April from 9.0 per cent in March, compared with a fall in the average for the 11-nation euro-zone to 10.4 per cent from 10.5 per cent. The head of the German government's council of economic advisers, Herbert Hax, identified the main problem as a lack of structural reforms. "Nothing is happening in Germany," he told the newspaper Die Welt. "Tax reform is hardly making any progress and, in labour markets, regulations are even increasing."

To: IQBAL LATIF who wrote (26891)	6/8/1999 11:02:00 PM
From: IQBAL LATIF	Read Replies (4) \| Respond to of 50167

Goal posts cannot be allowed to keep changing, the break yesterday was in line with our expectations of failure to stay above 50 days MA on Comp and NDX i.e 2512 and 2131. SOX DOT and PSE are still above my supports at 402 564 and 535, however 1230 level on SPM was difficult to hold. May the Mr Poole punctured the formation, however I will stick to my post of June 7th, the parameters of the post apply strongly andI continue to follow those ...we have all the potential if we stay weak to go and test old lows this will synchronise with economic releases, the indexes are still sitting at my supports like Comp 2475, this was highlighted in the same 7th June post and I expect that probably after a test of 2055 and 2455 area we may hold within a range until 11th the day PPI will be released.1318 remains the short term trading support a break could elad us to 1302 potentially, but watch out for a false break, also this moveof yesterday wherewe saw 50 days MA on Comp pierced would be technically a false upside break. In my opinion the Techs remains solid as far as SOX and PSE are above 405 and 535 area, also DOT will turn weak and may test 500 or even 450 area if 564 is taken out and 550 is broken on the second day we will go lot lower in DOT and Comp will follow inevitably. Poole and profite taking were two factors that lead to good solid selling however the fundamental picture remains the same, undercurrents of increasing demand leading to jitters in them market. IQBAL LATIF on Jun 7 1999 10:14AM EST Pits think that this thing can go up to 1350, if 1318 holds. NDX 2121 now two closes above 2131 the 50 day MA we are in good shape. Comp 2497 and 2512 are intermediate resistance levels we get two closes above this we go to old highs of 2677. If we break this on closing basis we go back to lows, we are in range, it is not a break out still, the range once broken will give me an idea of the new direction. The way individual stocks are behaving it looks these stocks want to go higher, this looks like an earning driven rally, the market has built in .25% hike at the supports. The leaders look good, the broad market should follow normally. PSE 535, BKX 835 are also important to watch.