LONDON (Thomson Financial) - US SUMMARY: Stocks soar, oil drops
Index Change Percent change
*DJIA 11239.28 +276.74 +2.52
*Nasdaq 2284.85 +69.14 +3.12
*S&P 500 1245.36 +30.45 +2.51
Nymex crude
for August $134.60 -$4.14
10 year U.S.
Treasury 3.94 percent
*Wednesday's close
STOCKS: Wall Street at least temporarily shrugged off some of its many
concerns Wednesday and bounded higher thanks to a drop in oil prices.
Investors also found relief in a decision by Wells Fargo & Co. to boost its
dividend that helped counter some of the market's concerns about the health of
banks. The San Francisco-based bank's move to raise its payout, along with its
tamer-than-expected profit decline, was seen as a bullish sign for the troubled
sector.
Still, the Labor Department's report that consumer prices shot up in June at
the second fastest pace in 26 years reminded investors that inflation still
poses a threat to economic growth. The Labor Department's report that its
Consumer Price Index rose 1.1 percent in June came after economists had expected
a gain of 0.8 percent.
BONDS: Treasury prices fell Wednesday as a drop in oil prices and
better-than-expected results from Wells Fargo & Co. drew investors back into the
pummelled stock market. The yield on the benchmark 10-year Treasury note, which
moves opposite its price, jumped to 3.94 percent from 3.82 percent late Tuesday.
FOREX: The dollar was mixed against other currencies Wednesday as oil prices
dropped and government reports showed inflation accelerating in both Europe and
the United States.
The euro bought $1.5810 in late New York trading, down from $1.5878 the
previous day and below the record high reached during trading Tuesday of
$1.6038. The British pound dipped to $1.9992 from $2.0020 late Tuesday, while
the dollar declined to 104.93 Japanese yen from 105.07 yen.
OIL: Oil prices declined after Energy Department figures showed that
domestic inventories of crude oil and gasoline rose last week, rather than
declining as analysts had expected. Light, sweet crude fell $4.14 to settle at
$134.60 a barrel on the New York Mercantile Exchange, bringing its two-day
decline to $10.58.
METALS: In precious metals, gold fell sharply as the drop in crude prices
reduced demand for inflation hedges. Gold for August delivery dropped $16 to
settle at $962.70 an ounce on the New York Mercantile Exchange after earlier
falling as low as $958.20 an ounce.
Other metals also fell sharply. September silver lost 20.8 cents to settle
at $18.805 an ounce on the Nymex.
EVENTS:
Initial weekly jobless claims (1230 GMT)
June new residential construction (1230 GMT)
July Philadelphia Fed survey (1400 GMT)
June NY employment and unemployment (1800 GMT)
Coca Cola Co. Q2 results. EPS forecast $0.96 versus $0.85 (before market
opens)
Google Inc. Q2 results. EPS forecast $4.72 versus $3.56 (after market
closes)
JP Morgan & Chase & Co. Q2 results. EPS forecast $0.57 versus $1.20 (1030
GMT)
Microsoft Corp. Q4 results. EPS forecast $0.47 versus $0.39 (after market
closes)
ASIA SUMMARY: Stocks rise, oil up
Index Change Percent change
Nikkei 225 12854.49 +93.69 +0.73 (0418 GMT)
S&P/ASX 200 4911.50 +40.90 +0.84 (0422 GMT)
Straits Times 2878.94 +43.62 +1.54 (0418 GMT)
Seoul Composite 1531.60 +24.20 +1.61 (0439 GMT)
Hang Seng 21754.06 +530.56 +2.50 (0424 GMT)
BSE Sensex 12909.57 +333.77 +2.65 (0426 GMT)
10-year JGBs 1.605 percent +0.04 (Intra-day trade)
Brent North Sea crude $136.30 +49 cents (Intra-day trade)
for September
STOCKS: Asian stocks rallied on Thursday, propelled by the biggest surge in
U.S. bank shares in 16 years and a sharp drop in oil prices, easing the worst
fears about the global credit crisis spiraling out of control.
BONDS: Japanese government bond prices were lower on Thursday following
declines in U.S. Treasury prices and the Nikkei's rally. At the midday break,
the yield on the benchmark 10-year bond rose to 1.605 percent from 1.565 percent
on Wednesday.
FOREX: The U.S. dollar was trading mixed against major currencies
mid-morning in Sydney on Tuesday as the market digested higher than expected
U.S. inflation data for June, which might put the currency on a firmer tone. At
10:00 a.m. in Sydney (0000 GMT), the dollar was at 105.10 yen from 105.08 yen
late in New York trading. The euro was at $1.5827 from $1.5822.
OIL: World oil prices rebounded in Asian trade Thursday after sharp falls on
a bigger-than-expected rise in US crude reserves. New York's main futures
contract, light sweet crude for August delivery, had dropped more than $10.50
over two days.
EVENTS:
Japan May revised leading index for business condition
Japan 30-year government bonds auction
Japan weekly capital inflows
Singapore June non-oil domestic exports
Woodside Petroleum Q2 production report
Iluka Resources Ltd Q2 production report
China Q2 GDP
China June/H1 CPI
China June/H1 PPI
China June/H1 retail sales
China June/H1 industrial output
China June/H1 fixed-asset investment
China's Huaxin Cement H1 results
Hong Kong April-June unemployment
Hong Kong's Lee & Man Paper FY results
EUROPE SUMMARY: Stocks mixed, oil dips
Index Change Percent change
*FTSE 5150.60 -21.30 -0.41
*DAX 6155.37 +73.67 +1.21
*CAC 4112.45 +51.30 +1.26
pound-dollar 2.0002 -0.0031 -0.15 (Intra-day)
euro-dollar 1.5890 -0.0042 -0.26 (Intra-day)
Brent crude
(August) $138.59 -16 cents (Intra-day)
*Wednesday's close
STOCKS: UK blue chips closed down Wednesday but well off their lowest levels
as a rally on Wall Street encouraged buyers into the market. However lower
commodity prices led to falls in mining and oil stocks, preventing a total
turnaround on the FTSE 100.
German shares ended higher, boosted by takeover news surrounding Continental
AG while Volkswagen shares were sought after in late trading. Paris shares ended
higher, in line with Wall Street as investors sought bargains among oversold
stocks, led by Alstom after reassuring first-quarter sales.
In the euro zone, headline inflation was confirmed at a record 4.0 percent
in June, again underlining the price pressures at hand.
BONDS: European government bonds gave up early gains after a staggering rise
in U.S. inflation was revealed Wednesday and as equities put in a decent
performance after recent falls. In the UK, gilts outperformed their European
counterparts after disappointing unemployment news.
FOREX: The dollar was a touch higher after the annual rate of inflation in
the world's biggest economy was revealed to have hit a 17-year high in June.
The pound was off earlier highs after weaker-than expected UK labour market
data boosted expectations that the next move in interest rates will be down.
OIL: World oil prices paused on Wednesday, after economic growth concerns
sent New York crude tumbling by the largest drop for 17 years, and as traders
awaited the weekly U.S. energy stockpiles report. London's Brent North Sea oil
for August dipped 16 cents to $138.59.
EVENTS:
UNITED KINGDOM
Bradford & Bingley EGM
British Energy AGM
Burberry AGM
Land Securities Group AGM
Smiths News trading statement
Farnborough Air Show
BENELUX
Sligro H1 results
Omega Pharma Q2 trading update (1545 GMT)
EVS Q2 trading update (before market). Conference (1330 GMT)
FRANCE
Essilor H1 sales
Carbone Lorraine H1 sales
Accor H1 sales
L'Oreal H1 sales
Eurotunnel H1 results
Pierre et Vacances Q3 sales
GERMANY
IAA International Press workshop, Frankfurt
ITALY
Italy May foreign trade (0800 GMT)
Italy May balance of payments
ISAE presents forecasts for Italian economy
SCANDINAVIA
Finnish June PPI
Nokia Q2 results
Fortum Q2 results
Cargotec Q2 results
Hafslund Q2 results
EDB Business Partner Q2 results. Pretax profit forecast 108 million crowns
versus 95 million; sales 2.049 billion crowns versus 1.621 billion
EU Economic affairs Commissioner Joaquin Almunia and Enlargement
Commissioner Olli Rehn speak about economic challenges facing the EU in Pori,
Finland (0800 GMT)
SWITZERLAND
ZEW investor sentiment for July (0900 GMT)
EUROPEAN UNION/EURO ZONE
ECB Governing Council meeting; no decision on interest rates
EU rules on proposed merger between Friesland Foods, Campina
EU court rules on European Commission v Spain over Endesa conditions
EU's Kroes at French presidency broadcasting conference
EU's Almunia gives speech at event held by European Movement Finland
EU's Mandelson gives press conference ahead of WTO ministerial
EU Parliament committee hearings on climate change package
EU court judgment in Commission vs Spain over Spanish energy regulator prior
approval of takeovers
TFN.newsdesk@thomson.com
npr
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