LONDON (Thomson Financial) - US SUMMARY: Stocks up on economic data; oil
dips below 69 usd
Index Change Pct change
*DJIA 13545.84 +56.42 +0.42
*Nasdaq 2616.96 +17.00 +0.65
*S&P 500 1522.19 +9.32 +0.62
Dow Future 13660.00 +52.00 +0.38 (2014 GMT)
Nasdaq Future 1964.75 -1.00 -0.05 (0312 GMT)
S&P Future 1534.90 -0.90 -0.06 (0321 GMT)
eur-usd 1.3387 -0.0069
Brent crude
Nymex 68.65 usd -0.21 usd
10 yr US
treasury 5.20 pct -0.05 pct
* yesterday's close
STOCKS: Stocks lurched higher after a back-and-forth session Thursday as
investors apparently set aside some interest rate concerns and took a dose of
upbeat economic data at face value.
The Conference Board's May index of leading economic indicators rose a
higher-than-expected 0.3 pct, showing that the US economy will expand modestly
in coming months. Also, the Philadelphia Federal Reserve said regional
manufacturing in June has had its strongest growth since April 2005. The bank's
index of regional manufacturing activity jumped to 18 from 4.2 in May. But the
report had limited effect on the market although investors have been wary about
any signs of economic strength that might lead the Federal Reserve to raise
interest rates when its Open Market Committee meets next week.
Among other economic data, investors were considering was a weekly Labor
Department report showing the number of workers seeking jobless benefits rose by
10,000 last week to a two-month high, marking the third straight weekly gain.
The economic readings come amid a quiet week for news about the economy.
Also Thursday, the American Stock Exchange resumed trading of stocks and
exchange traded funds in the afternoon after the exchange resolved technical
problems that had forced it to halt trading earlier in the day.
In corporate news, coffee chain Starbucks Corp fell 1.06 usd, or 3.9 pct, to
26.26 usd after warning that reaching the top end of its fiscal 2007 earnings
forecast could prove challenging, in part because of high dairy costs. Eyewear
maker Luxottica Group SpA rose 3.18 usd, or 9.1 pct, to 38.02 usd after agreeing
to acquire rival Oakley Inc for 2.1 bln usd. Oakley jumped 3.22 usd, or 13 pct,
to 23.45 usd.
FOREX: The dollar hit a fresh high against the yen Thursday as investors
sold the low-yielding Japanese currency for better returns off the greenback.
The yen fell to 123.75 before recovering to 123.67. The yen has come under new
pressure after Bank of Japan Governor Toshihiko Fukui indicated interest rates
are not likely to rise at next month's meeting of the central bank.
The 13-nation euro fell while the pound dipped to 1.9922 usd from 1.9947
usd. In other trading, the dollar bought 1.0759 cad, up from 1.0662, and 1.2418
sfr, rising from 1.2367.
BONDS: Treasury prices fell after reports suggested the economy has moved
beyond a recent phase of weakness, building the case for the Fed to lift rates.
The market also eyed high crude oil prices. The yield on the benchmark 10-year
Treasury rose to 5.20 pct from 5.15 pct late Wednesday.
OIL: Oil prices slipped below 69 usd a barrel Thursday after a report that a
strike in Nigeria has not affected oil exports from Africa's largest crude
producer alleviated the market's supply concerns. Nigeria's labour unions
launched a strike Wednesday aimed at overturning government price increases on
gasoline, among other demands that the government already has conceded.
METALS: Gold and silver fell in New York on speculation a pickup in the
economy may keep the Fed from cutting interest rates, boosting the dollar and
reducing the appeal of metals as safe haven buys. August gold futures fell 4.20
usd, or 0.6 pct, to 655.80 usd an ounce on the the New York Mercantile Exchange.
EVENTS:
Interplay Entertainment Q1 2007 results
Stonepath Group Q4 2006 results
ASIA SUMMARY: Shares lower on profit-taking; Taiwan dollar gains after interest
rate hike
Index Change Pct change
Nikkei 225 18112.80 -127.50 -0.70 (0230 GMT)
S&P/ASX 200 6379.40 -7.60 -0.12 (0400 GMT)
Straits Times 3612.95 -26.54 -0.73 (0346 GMT)
Hang Seng 21919.30 -35.37 -0.16 (0247 GMT)
Seoul Composite 1769.99 -24.25 -1.35 (0348 GMT)
BSE Sensex 14514.10 +14.86 +0.10 (0430 GMT)
usd-yen 123.90 +0.25 (Intra-day trade)
usd-sgd 1.5372 +0.0012 (Intra-day trade)
usd-inr 40.713 -0.005 (Intra-day trade)
10-year JGBs 1.910 pct -0.01 (Intra-day trade)
Nymex crude
for Aug 68.57 usd -0.08 usd (Intra-day trade)
STOCKS: Asian shares were lower in early trade, mainly on profit-taking
after several indices touched record highs. Seoul shares were sharply lower,
wiping out all the gains from the previous session, as investors used government
comments on market liquidity and possible overheating in the economy as an
excuse to
cut their positions. The Bank of Korea said yesterday it will lower the pool of
loans it allocates for small- and medium-sized firms to 6.5 trln won in the
third quarter of
2007, compared with 8 trln in the second
quarter, a move seen
as part of a campaign to reduce liquidity. On Monday, the main index touched
1,800 points for the first time.
Tokyo shares ended the morning session lower as investors locked in recent
profits after the benchmark Nikkei index yesterday closed at its highest level
in seven years. Hong Kong shares were lower on modest profit-taking after the
key index
gained 1,376 points over the last five sessions to
hit all-time highs.
A-shares in Shanghai and Shenzhen ended the morning lower on profit-taking as
well as renewed fears that the government might announce some
credit-tightening measures over
the weekend.
BONDS: Japanese government bond prices ended the morning session flat to
higher after investors hunted for bargains among bonds that had been sold
recently because of worry about increases in interest rates worldwide. NikkoCiti
Group
Securities chief strategist Kazuhiko Sano said:
"Unless US Treasurys stage
a meaningful rebound, the yield on the 10-year Japanese government bond could
re-test a recent high of 1.985 pct and may even break the 2.0 pct level."
FOREX: The US dollar was higher against the yen and euro in Sydney trade
after the release of positive economic data in the US. Currency markets are not
likely to deviate from the current ranges given the lack of key data releases
tonight.
Meanwhile, the Taiwan dollar was sharply higher against the US dollar in
active early morning trade, thanks to a boost from the Taiwan central bank's
decision to increase the reserve ratio for foreign currency deposits to 5 pct
from 0.125 pct. The move coincided with the bank's 25-basis point increase in
its key interest rates, with the discount rate raised to 3.125 pct. As of 0130
GMT, the Taiwan dollar was trading at 32.738/dollar. It closed yesterday at
32.928.
OIL: Oil prices edged lower in Asian trading hours as players tried to
assess whether a general strike in Nigeria, an important producer of crude,
would affect supplies. At 0305 GMT, Brent North Sea crude for August was down
0.01 usd
at 70.21 usd.
The Nigeria Labour Congress and the Trade Union Congress started the strike
Wednesday after the government refused to reverse an increase in fuel prices at
the pump. With the country's crude production and exports unaffected so
far, the unions
called on their members to set up "compliance
squads" to ensure
the strike achieves its aim of paralysing the economy.
METALS: Gold eased in quiet London trade yesterday, as the market awaited
the release of key economic data from the US to set the agenda for the dollar's
moves. Gold tends to move in the opposite direction to the dollar as it is seen
as an
alternative asset to the US currency. At 0955 GMT in
London, spot gold
was trading at 653.85 usd per ounce against 656.60 in late New York trades
yesterday.
Copper slid after the London Metal Exchange (LME) said stocks rose, but the
threat of strike action in South America limited losses. At 0915 GMT, LME copper
for 3-month delivery was down at 7,485 usd a tonne against 7,520.
Elsewhere, nickel was
steady at lower levels on China's plan to cut
stainless
steel production by between 20-30 pct. Around two-thirds of all nickel mined is
used to make steel. Nickel was relatively flat at 36,550 usd against 36,500 usd.
EVENTS:
Mexico's Cemex offer for Australia's Rinker Group to lapse
Japan May supermarket sales
Hong Kong May CPI
RREEF China REIT debuts in Hong Kong
Taiwan May unemployment
CosmoSteel starts trading in Singapore
Malaysia mid-June forex reserves
Indonesia's Bank UOB Buana AGM & EGM
Indonesia's Mitra Adiperkasa AGM
EUROPE SUMMARY: London shares close lower amid ongoing interest rate concerns;
pound steady
Index Change Pct change
*FTSE 6595.99 -54.25 -0.81
*DAX 7964.71 -125.78 -1.55
*CAC 6029.79 -64.00 -1.05
UK10-year
Bond 89.41 0.00
UK 30-year
Bond 90.52 0.00
stg-usd 1.9920 -0.0012
eur-usd 1.3373 -0.0051
sfr-usd 1.2422 +0.0053
Brent crude
ICE (Aug) 70.22 usd -20 cents
* yesterday's close
STOCKS: UK blue chips closed lower having spent much of the afternoon
tracking Wall Street which was unsettled by rising oil prices and mixed economic
data, but overall was subdued amid ongoing interest rate concerns at home.
Meanwhile, no major corporates are scheduled to declare their results today.
Focus will centre on the Euro zone industrial orders which are expected to
decline 0.5 pct in April after a rise of 2.7 pct the month before. But orders
are still projected to be up 8.7 pct year-on-year.
BONDS: European government bonds were flat in volatile trade, having largely
ignored an unexpected rise in US jobless numbers as market sentiment remained
negative. The tone in the UK was similarly volatile to Europe, with gilts
trading flat.
FOREX: The pound was steady after the details of a key survey on the UK
manufacturing sector showed firms are less intent on raising prices, offsetting
a stronger-than-expected euro zone PMI reading. Elsewhere, major currencies were
also steady as the market awaited the release of US weekly jobless claims and
the Philly Fed survey for further direction.
METALS: Gold continued to slide on technical selling. At 1505 GMT, spot gold
was trading at 651.8 usd per ounce against 656.60 usd. Copper continued lower
after a large increase in stocks outweighed strike threats. At 1247 GMT, LME
copper for 3-month delivery was down at 7,500 usd a tonne against 7,520. Lead
was up trading at its all time high of 2,535 usd from 2,506 Wednesday. In
other metals, nickel was relatively flat at 36,650 usd against 36,500 on the
likelihood of Chinese steel production easing. Aluminium was down at 2,715 usd
against 2,733. Zinc was lower at 3,570 usd from 3,610, while tin was down at
14,000 usd from 14,060.
EVENTS:
UNITED KINGDOM
INTERIMS
Beale
AGMs
Pangea DiamondFields
EGMs
European Diamonds
BENELUX
Belgian June business confidence indicator (1300 GMT)
Dutch April industrial orders
Fugro Q1 trading update
EASTERN EUROPE
Polish central bank publishes net inflation data
FRANCE
Beneteau AGM
GERMANY
Ifo business climate (0800 GMT)
GREECE
Michaniki AGM
Fourlis AGM
Hellenic Technodomiki AGM
Pantechniki AGM
Reds AGM
ITALY
May non-EU trade (0800 GMT)
Banca Generali shareholder meeting (1200 GMT)
PORTUGAL
Portugal Telecom AGM
Martifer, subscription period for new shares ahead of IPO closes
SCANDINAVIA
Swedish, Helsinki markets closed for public holiday
SPAIN
May hotel occupancy, prices
Vueling AGM
Cepsa AGM
Economic Journalists Association conference in Santander (final day)
SWITZERLAND
Seco economic forecast for June
SNB 100-year anniversary celebrations
EUROPEAN UNION/EURO AREA
Trichet speech in Zurich ((0800 GMT)
Euro zone April industrial orders (0900 GMT) - expected to decline 0.5 pct
in April after a rise of 2.7 pct the month before. But orders are still
projected to be up 8.7 pct year-on-year.
EU summit, Brussels
EU rules on proposed acquisition by Norsk Hydros 50 pct share of JV
TFN.newsdesk@thomson.com
jro
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