LONDON (Thomson Financial) - US SUMMARY: Stocks soar as credit concerns
wane; Dow passes 14,000
Index Change Pct change
*DJIA 14,087.55 +191.92 +1.38
*Nasdaq 2,740.99 + 39.49 +1.46
*S&P 500 1,547.04 + 20.29 +1.33
Dow Future 14,157.00 +163.00 +1.16 (2023 GMT)
Nasdaq Future 2,133.25 - 2.00 -0.09 (0325 GMT)
S&P Future 1,556.00 - 0.10 -0.10 (0321 GMT)
eur-usd 1.4238 +0.0078
Light, sweet crude
Nymex 80.20 usd -1.54 usd
10 yr US
treasury 4.55 pct 9/32
* yesterday\'s close
STOCKS: Wall Street began the fourth quarter with a huge rally Monday,
sending the Dow Jones industrial average to a record close. Stocks were buoyed
by
a growing belief that the worst of the credit crisis has passed. Both Citigroup
and Switzerland\'s UBS AG issued third-quarter profit warnings, but indicated
the current period might see a return to normal earnings
levels. Despite the
profit warning, Citigroup shares rose 2.3 pct to 47.72 usd.
The market was also optimistic that new economic data might nudge the
Federal Reserve toward another interest rate cut at its Oct. 30-31 meeting. The
Institute for Supply Management said the manufacturing
sector grew in September
at the slowest pace in six months; the trade group said its index of
manufacturing activity registered at 52.0 in September, below
forecasts for a
reading of at least 52.5.
Enthusiasm about acquisition activity picked up after Nokia unveiled an 8.1
bln usd offer to buy navigation-software maker Navteq Corp. The deal was seen
as a signal that corporations are feeling comfortable in
making big moves
despite recent market turbulence. Nokia rose 8 cents to 37.96 usd, while Navteq
fell 2 pct, to 76.45 usd.
FOREX: The dollar sank to another all-time low against the euro and a
31-year low against the Canadian dollar on Monday before steadying ahead of
expectations from Friday\'s employment data. In addition, the
Fed is widely
expected to cut rates for the second month in a row in October as it tries to
stimulate the US economy.
In late New York trading, the dollar crept up to 1.4238 usd against the euro
after touching an eighth all-time low against the 13-nation currency of
1.4283 usd in early Asian trade. The euro was still up from the
1.4160 usd it
bought late Friday in New York. The Canadian dollar hit a new 31-year high of
1.0093 usd Monday before retreating to 99.12 US cents in
later trading, beating
Friday\'s previous high of 1.0091 usd. The currency, which traded at 99.37 US
cents in late trading Friday, has gained strongly in September
on the rise of
its exports and the weakness of the US dollar. The Australian dollar hit an
18-year high against the greenback at 89.48.
In other New York trading, the dollar gained. The British pound fell
slightly to 2.0442 usd from 2.0454 late Friday, while the dollar rose to
purchase
115.77 Japanese yen from 114.74 and to 1.1687 sfr, from 1.1635 late Friday.
BONDS: Treasury prices rose Monday after the ISM number came in weaker than
economists expected but strong enough to show that the industrial sector
continues to expand. Fixed-income investors, currently concerned
about the
dollar\'s recent weakness, interpreted the ISM report as not necessarily
portending an interest rate cut, which would further erode the US
currency. The
benchmark 10-year Treasury note rose 9/32 to 101 17/32 with a yield of 4.55
pct, down from 4.57 pct before the ISM news and 4.59 pct at
Friday\'s close.
OIL: Oil prices slumped for a second session on Monday as investors further
reined in the market\'s recent rally. Energy futures typically peak in
October, as demand for gasoline wanes from summer levels. Crude for
November
delivery fell 1.546 usd to 80.20 usd a barrel in midday trading on the New York
Mercantile Exchange.
METALS: Gold extended gains with December futures rising 4.10 usd, or 0.5
pct, to 754.10 usd on the New York Mercantile Exchange.
EVENTS:
Aug pending home sales
Metropolitan area employment and unemployment (1400 GMT)
ASIA SUMMARY: Stocks higher; oil flat
Index Change Pct change
Nikkei 225 17041.61+195.65 +1.16 (0346 GMT)
S&P/ASX 200 6656.10 +92.40 +1.41 (0346 GMT)
Straits Times 3802.59 +47.37 +1.26 (0347 GMT)
Hang Seng 28049.49+907.02 +3.34 (0347 GMT)
Seoul Composite 2000.46 +37.79 +1.93 (0347 GMT)
BSE Sensex 17328.62 +37.52 +0.22 (Yesterday\'s close)
usd-yen 115.74 -0.06 -0.05 (0040 GMT)
10-year JGBs 1.675 pct +0.015 +0.90 (Intra-day)
Brent North Sea 77.74 usd +0.10 +0.13 (Intra-day)
crude for November
STOCKS: Asian stocks were traded higher today with certain markets at record
highs, after the Dow Jones Industrial Average closed at a record high overnight
on hopes of a rate cut this month in the US. Japanese shares ended morning
higher, with the benchmark Nikkei index back above 17,000 points for the first
time in about two months. Hong Kong shares began the fourth quarter with a
rally, with the Hang Seng Index hitting 28,000 points for the first time.
Australian shares also pushed further into record territory in early afternoon
trading, led by banking and resource heavyweights. - Indonesian shares were
higher in early trade, sending the benchmark index to its all-time high.
Philippine shares closed higher though off their day\'s highs with the country\'s
biggest conglomerates leading the pack. Indian markets were closed for a public
holiday.
BONDS: Japanese government bond prices finished the Tuesday morning session
broadly lower as healthy gains on the equity markets weakened investor appetite
for fixed-income assets.
FOREX: The US dollar was trading slightly weaker against major currencies
late morning as the market focus turns to
Friday\'s release of US non-farm payroll data for September. The currency is
showing some signs of bottoming after moving off an all time low against the
euro in Asian trade Monday though it will take strong payroll data to convince
the market that the Federal Reserve won\'t press ahead with an interest rate cut
at the end of the month.
OIL: Prices were flat in Asian trade Tuesday on profit-taking on renewed
concerns the US economy was slowing, which
could affect oil demand. At 0251 GMT, New York\'s main contract, light sweet
crude for November delivery, was off 4 cents at 80.20 US dollars per barrel. The
contract reached 80.24 dollars in late US trades Monday, when it dropped 1.42
dollars. Brent North Sea crude for November delivery was 10 cents higher at
77.74 dollars.
METALS: Yesterday, gold pushed on to its highest point in almost 28 years as
new US manufacturing data provided fresh evidence of a cooling economy, and as
the dollar continued to languish close to all-time lows against the euro. It was
trading at 746.23 usd an ounce in intra-day trade versus 743.30 usd in late New
York trade on Friday, after hitting an intraday high of 747.75 usd. Platinum
rose to a year\'s high of 1,392.50 usd an ounce yesterday-- nearing last
November\'s all-time record peak of 1,395 usd -- before consolidating back to
Friday\'s late New York price of 1,382 usd. Silver was little down at 13.72 usd
an ounce yesterday against 13.79 usd, while palladium was up at 355 usd versus
346 usd in late New York trade on Friday. Copper continued higher in quiet trade
yesterday, with players overlooking weaker than expected US manufacturing data
to focus on dollar weakness and a looming strike in Peru. LME copper for three
month delivery was up at 8,088 usd a tonne in day trade yesterday against 8,020
usd at the close Friday. Zinc edged up to 3,055 usd a tonne yesterday against
3,050 usd at the close Friday. Yesterday. aluminium was down at 2,506 usd a
tonne against 2,520 usd at the close Friday, tin rose to 15,450 usd against
15,375 usd, while lead was flat at 3,380 usd.
EVENTS:
Japan Sept monetary base
Japanese govt 10-year bond auction
Indian markets closed
EUROPE SUMMARY: Stocks firm, oil dips
Change Pct change
*FTSE 6506.25 +39.4 +0.61
*DAX 7922.42 +60.91 +0.77
*CAC 5773.26 +57.57 +1.01
UK10-year
Bond 92.94
UK 30-year
Bond 94.55
stg-usd 2.0434 +0.0048 (Intra-day)
eur-usd 1.4241 +0.002 (Intra-day)
ICE (Nov) 77.37 usd -1.79 cents (1613 GMT)
* Yesterday\'s close
STOCKS: London shares closed firmer, shrugging off profit warnings from
major investment banks, as Wall Street surpassed its intraday record high, amid
hopes that economic data due for release this week will result in further rate
cuts. Europe\'s leading exchanges closed the day up as early gloom after profit
warnings from Citigroup, UBS and Credit Suisse gave way to hopes of a new US
rate cut. Sentiment was also boosted as dealers were confident the bad news in
the financial sector is now out and will soon be over. Meanwhile, Tesco PLC, the
UK\'s biggest supermarket chain, is expected to report strong first-half results,
boosted by improved margins, despite a weakness in second-quarter sales.
BONDS: European government bonds were slightly higher following slightly
weaker data in the US, although trade was subdued with the market awaiting this
week\'s interest rate decision from the European Central Bank. In the UK, gilts
were tracking their European counterparts, with the market awaiting a similar
rate decision from the Bank of England on Thursday.
FOREX: The dollar remained broadly weaker Monday after the US manufacturing
ISM fell by slightly more than expected, confirming the general downward trend
in the US economy. The euro came off after hitting a record high Monday on some
profit-taking and after the manufacturing PMIs showed the impact of the strong
single currency and higher borrowing costs on the euro zone\'s economy. The pound
also came off highs against the dollar.
OIL: Oil fell following on from Friday afternoon\'s bout of profit booking
sparked by crude\'s touching of an all-time high above 80 usd on the back of a
weakening US dollar, with fears that the recent rally could have been overcooked
compounded by possible signals of a slowing US economy.
METALS: Gold pushed on to its highest point in almost 28 years on fears of a
weakening US economy, and as the dollar continued to languish close to all-time
lows against the euro. Copper continued higher, zinc, tin rose while lead was
flat Monday. Aluminium was down Monday.
EVENTS:
UNITED KINGDOM
Tesco H1 results. Pretax profit forecast 1.29-1.35 bln stg vs 1.15 bln
Findel trading statement
Q2 profitability of UK companies (0830 GMT)
Sept Construction PMI (0830 GMT)
BoE announces result of 3-month interbank funds auction(1030-1130 GMT)
BENELUX
Oce Q3 results (0530 GMT), conference call (0800 GMT). EBIT forecast
22.4-26.4 mln eur vs 16.7 mln; net profit 10.7-13.0 mln eur vs 6 mln; sales
745.0-755.1 mln eur vs 740.6 mln
Getronics EGM (0830 GMT)
ABU Dutch staffing market data (0800 GMT)
EASTERN EUROPE
Carrefour news conference about strategy (1000 GMT)
Hungary final July foreign trade data)
EUROPEAN UNION/EURO AREA
Euro zone Aug unemployment rate (0900 GMT). Forecast +6.9 vs +6.9
Euro zone Aug PPI (0900 GMT). Forecast mth-on-mth +0.1 vs +0.3; yr-on-yr
+1.8 +1.8
ECB main refi result (0915 GMT)
EU rules on acquisition by Transdev of two-thirds stake in Connexxion
EU rules on acquisition by Rio Tinto of Alcan
FRANCE
Oberthur Card Systems H1 results
GREECE
Greek state to auction treasury bills
ITALY
Intesa Sanpaolo EGM to vote on share buyback (0900 GMT)
Enia press conference (1000 GMT)
BPM strategic committee meets, expected to shortlist possible tie-up
PORTUGAL
Lisbon Energy Forum (Venezuelan Energy Minister expected)
SCANDINAVIA
FOEX Pulp & Paper price statistics (0900 GMT)
Finnish July final trade balance (0900 GMT)
Denmark Sept currency reserves (1400 GMT)
SPAIN
Sept jobless (Labour Ministry)
Secretary of State for the Economy David Vegara speaks at Economic
Journalists Association (0800 GMT)
Endesa temporarily leaves IBEX-35 index
SWITZERLAND
Sept CPI
Swiss govt Oct economic forecast
Roche media conference on \'Diabetes Care in Pharma and Diagnostics\', Basel
TFN.newsdesk@thomson.com
ami/npr/ran
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