LONDON (Thomson Financial) - US SUMMARY: Stocks rise modestly after big
run-up, oil firmer
Index Change Pct change
*DJIA 13,311.73 +22.28 +0.17
*Nasdaq 2,668.13 +5.22 +0.20
*S&P 500 1,469.72 +0.70 +0.05
Nymex crude
for Jan 91.01 usd +39 cents
10 yr US
treasury 3.95 pct
* yesterday's close
STOCKS: Wall Street extended its rally with modest gains in the major
indexes following two days of sharp advances, despite economic readings that
painted a mixed picture of the economy. The Commerce Department reported that
economic growth in the third quarter was 4.9 pct, stronger than originally
thought, although analysts are anticipating a slowdown in the fourth quarter.
In addition, Federal Reserve Chairman Ben Bernanke buttressed the
possibility of a further cut in US interest rates next month, a move that could
help the world's biggest economy avoid a recession. Bernanke said Thursday
evening that Fed policymakers will need to be "exceptionally alert and
flexible," considering that the odds have grown that the country could enter a
recession, and a sharp cutback in consumer spending could send the economy into
a tailspin.
In other economic data, US home prices showed a quarterly decline for the
first time in 13 years in the third quarter, according to figures from the
Office of Federal Housing Enterprise Oversight, which reported a 0.4 pct drop
nationwide for the July-September period.
BONDS: Treasury prices rallied Thursday, pressing the benchmark 10-year note
yield back below 4 pct, after weak labor and housing reports stirred hopes that
the Federal Reserve will cut rates again soon. The benchmark 10-year Treasury
note gained 23/32 to 102 14/32 with a yield of 3.95 pct, down from 4.05 pct late
Wednesday.
FOREX: The dollar rose against most major currencies Thursday, even as
downbeat economic data helped lull a two-day surge on Wall Street. The euro
bought 1.4753 usd in late New York trading, down from 1.4857 usd Wednesday. The
pound also took a tumble, falling to 2.0613 usd Thursday from 2.0812 usd. The
dollar slipped to 109.84 Japanese yen from 109.97 yen but rose against the Swiss
franc to 1.1171 from 1.1097 Swiss francs. The Canadian dollar fell to 1.0033
from 1.0154 usd Wednesday.
OIL: Oil prices spiked early Thursday then fell back somewhat after a fire
at an Enbridge Energy pipeline carrying crude from Canada to the Midwest. Light,
sweet crude for January delivery rose 39 cents to settle at 91.01 usd a barrel
in choppy trading on the New York Mercantile Exchange.
METALS: Gold and silver prices dipped as the dollar rose against major
foreign currencies. December gold fell 5 usd to settle at 795.30 usd an ounce,
while December silver ended flat at 14.335 usd an ounce on the Nymex.
EVENTS:
Oct personal income (1330 GMT)
Nov Chicago purchasing managers index (1445 GMT)
Oct construction (1500 GMT)
Oct consumer spending (1330 GMT)
ASIA SUMMARY: Stocks extend gains; oil mixed
Index Change Pct change
Nikkei 225 15,688.31 +174.57 +1.13 (0440 GMT)
S&P/ASX 200 6550.00 +105.50 +1.64 (0428 GMT)
Straits Times 3,524.38 + 46.16 +1.33 (0430 GMT)
Hang Seng 28,654.97 +172.43 +0.61 (0428 GMT)
Seoul Composite 1,913.52 + 35.96 +1.92 (0445 GMT)
BSE Sensex 19,028.98 + 25.72 +0.14 (0445 GMT)
usd-yen 109.89 +0.02 (2225 GMT)
10-year JGBs 1.470 pct -0.015 (Intra-day trade)
Brent North Sea
crude for Sept 90.20 usd -2 cents (Intra-day trade)
STOCKS: Most Asian stock markets extended their gains for the second day
Friday after Federal Reserve Chairman Ben Bernanke buttressed the possibility of
a further cut in US interest rates next month, a move that could help the
world's biggest economy avoid a recession. Bernanke said late Thursday that the
Fed would be paying "particular attention" to how the financial market strains
might hurt the rest of the economy and would have to be "exceptionally alert and
flexible" in dealing with the unusual economic uncertainty. The Fed is to hold a
policy meeting on December 11.
The Chinese stock market bucked the broader market decline as huge initial
public offerings diverted market liquidity. South Korea led the rally across the
region, with the KOSPI index rising 1.7 pct.
BONDS: Japanese government bond prices ended Friday morning higher following
a rally in US Treasury prices after Fed chairman Ben Bernanke hinted at another
rate cut to help bolster the economy.
FOREX: The US dollar was mixed against major currencies in midmorning trade
in Sydney on Friday, after strengthening overnight as Wall Street moved higher
in anticipation of another interest rate cut next month. At 2225 GMT, the euro
was up at 1.4748 usd from 1.4741 usd overnight amid signs the worst is not over
for the credit crisis in the euro zone. The sterling was buying 2.061 usd,
almost unchanged from last night.
OIL: Oil prices were mixed in Asia Friday after initially spiking sharply in
reaction to a fire that struck a pipeline linking the United States to key
energy supplier Canada.With the pipeline partially resuming shipments after the
blaze, traders are focusing on next week's OPEC output meeting in Abu Dhabi. In
early morning trade New York's main contract, light sweet crude for January
delivery, was up 2 cents at 91.03 usd a barrel.
METALS: Gold slipped in afternoon trade Thursday as the dollar strengthened
a touch after firm third-quarter GDP numbers from the US. At 1434 GMT, London
spot gold was trading at 795.40 usd per ounce, a day low, against 804.05 usd in
late New York trade yesterday.
EVENTS:
Philippine markets closed for public holiday
Japan Oct CPI, Tokyo November CPI
Japan Oct unemployment rate
Japan Oct household spending
Japan Oct housing starts
Japan Oct construction order
Australia's Tattersall's Ltd AGM
Australia's Fairfax Media Ltd AGM
Singapore Oct money supply data
Singapore Oct commercial bank lending
Hong Kong Oct money supply
India wholesale price index for week to Nov 17 (0730 GMT)
India Q2 GDP
EUROPE SUMMARY: Stocks higher, oil falls
Index Change Pct change
*FTSE 6349.10 +42.90 +0.68
*DAX 7765.19 +41.53 +0.54
*CAC 5598.11 +36.90 +0.66
UK10-year
Bond 95.92 +0.73
UK 30-year
Bond 97.41 +0.92
stg-usd 2.0627 -0.0083 (Intra-day)
eur-usd 1.4759 -0.0014 (Intra-day)
ICE (Jan) 90.73 usd -0.94 usd (1701 GMT)
*Yesterday's close
STOCKS: Leading shares closed higher yesterday but below the day's peak
after a volatile session, lifted by strength in heavyweight mining issues, amid
firmer metal prices and more sector consolidation talk, and with New York
rallying from earlier falls. Europe's leading exchanges closed higher yesterday,
buoyed by takeover talk in the mining sector and a rebound on Wall Street.
BONDS: European government bonds jumped, tracking their US counterparts
higher, following some weak data in the world's largest economy, leading
investors to pare back their appetite for risk slightly. UK gilts were
outperforming their European peers after a disappointing housing market survey
and weak official mortgage lending data fuelled speculation that the Bank of
England may cut its benchmark interest rates next week to 5.50 pct.
FOREX: The dollar turned lower after weak US new home sales data more than
offset an earlier upward revision to third quarter GDP, while the pound lost
further ground against the euro at the end of a busy day for UK news.
OIL: Oil came off the day highs on news that two of the four pipelines
carrying crude from Canada to the US had resumed output following an explosion
Wednesday that killed two oil workers.
METALS: Gold slipped in yesterday afternoon trade as the dollar strengthened
a touch after firm third-quarter GDP numbers from the US, which have thrown the
Fed's expected rate cut next month into some doubt. Copper prices continued in
recovery mode going into the afternoon in London as they tracked recent moves in
equities.
EVENTS:
UNITED KINGDOM
GfK/NOP Nov consumer confidence survey (1030 GMT)
Marston's FY results
Hargreaves Lansdown AGM
SThree trading statement
AUSTRIA
Strabag Q3 results
SkyEurope preliminary FY results
BENELUX
Numico EGM
Getronics EGM
Colruyt H1 results (1645 GMT). Net profit forecast 125-133 mln eur vs 133
mln
EASTERN EUROPE
Polish Q3 GDP (0900 GMT)
Hungary Oct PPI
Hungary Sept foreign trade
Novolipetsk Steel 9-mths GAAP results
FRANCE
EDF investor day (all day); payment of interim dividend
GERMANY
Oct retail sales (0700 GMT)
IKB 6-mth results, conference call
Essen Motor Show press day; news conferences by Ford (0900 GMT), Volkswagen
(1200 GMT), Audi (1300 GMT), Opel (1500 GMT), Continental (1530 GMT)
GREECE
Geniki Bank 9-mth results
Last day for Greek listed companies to announce 9-mth results
ITALY
Sept big company employment (0900 GMT)
Nov preliminary HICP. Forecast mth-on-mth +0.3 vs +0.8; yr-on-yr +2.5 vs
+2.3
Nov preliminary CPI (1000 GMT). Forecast mth=on=mth +0.3 vs +0.3; yr-on-yr
+2.3 vs +2.1
Il Sole 24 Ore IPO ends
Franco-Italian summit
PORTUGAL
Oct industrial output
Jeronimo Martins investor day (Poland)
Sonae conference call after Q3 results
SCANDINAVIA
Finnish Oct industrial output (0600 GMT)
Aker Kvaerner Capital Markets Day
SPAIN
Preliminary Nov HICP
SWITZERLAND
Ascom Holding AG media & investor day
EUROPEAN UNION/EURO AREA
Euro zone Nov provisional HICP (1000 GMT). Forecast +2.8 vs +2.6
Euro zone Q3 GDP (1000 GMT). Forecast qtr-on-qtr +0.7 vs +0.3; yr-on-yr +2.6
vs +2.5
Euro zone Nov industrial confidence indicator. Forecast +1 vs +2
Euro zone Nov consumer confidence indicator. Forecast -7 vs -6
Euro zone Nov business climate indicator. Forecast 0.75 vs 0.87
Euro zone Nov economic sentiment indicator (1000 GMT). Forecast 105.0 vs
105.9
EU rules on joint venture between GE, Dogus in Turkish bank
EU rules on acquisition by Akzo Nobel of ICI
ECB's Tumpel-Gugerell speech in Dublin
EU's Kroes receives CBI's Lambert (0845 GMT)
EU's Reding gives keynote speech at Yes For Europe summit (0850 GMT)
EU telecoms, transport, energy ministers meeting, Brussels
EU's Reding receives OFCOM CEO Richards (1120 GMT)
EU's Piebalgs press conference European energy project coordination (1130
GMT)
EU's McCreevy addresses Vienna stock exchange conference
EU-India summit, Delhi
TFN.newsdesk@thomson.com
npr/net/ran
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