LONDON: Europe's leading stock markets surged on Wednesday, boosted by Wall Street as investors eyed a global economic recovery following positive earnings and economic data, analysts said.

"Stock markets across Europe rose for the third day in a row on Wednesday after better then expected Intel results after the bell last night," said City Index market analyst Nick Serff, referring to the US technology firm.

London's FTSE 100 gained 2.57 percent to close at 4,346.46 points.

Frankfurt's DAX soared 3.07 percent to close at 4,928.44 points and in Paris the CAC 40 rose 2.90 percent to 3,171.27.

The DJ Euro Stoxx 50 index of leading eurozone shares surged by 3.24 percent to 2,447.58 points.

Wall Street shares shot higher Wednesday after a stronger-than-expected quarterly report for tech giant Intel ignited optimism about the economic and earnings outlook.

The Dow Jones Industrial Average lifted 1.82 percent to 8,511.24 in early trade. The tech-heavy Nasdaq rallied 2.42 percent to 1,843.23 and the Standard & Poor's 500 broad-market index climbed 1.82 percent to 922.33.

"Intel Corp.'s solid quarterly report and upbeat outlook have galvanized Wall Street bulls," said Joseph Hargett at Schaeffer's Investment Research.

"The report helped bolster hopes for a solid round of corporate earnings, especially since Goldman Sachs Group took the edge off with its better-than-expected quarterly report on Tuesday morning."

Goldman Sachs posted a net profit of 3.44 billion dollars in the second quarter, topping market expectations and easing fears about a collapsing financial system.

"Investors will be making the most of this post-Goldman optimism," said IG Index market strategist Anthony Grech.

The FTSE was also boosted by British unemployment data.

"Although the unemployment number hit its highest rate since January 1997, the number of people claiming jobless benefits rose by less than expected. This helped the FTSE trade above 4,300 for the first time in weeks," added Serff.

The number claiming unemployment benefits in Britain rose in June at the slowest pace for 13 months, official data showed, but the unemployment rate hit a 12-year high of 7.6 percent, amid Britain's worst recession in decades.

Japanese stocks ended narrowly mixed Wednesday as investors reacted coolly to the gains on Wall Street, dealers said.

Leading the way in London on Wednesday were miners and banks. Anglo-Swiss miner Xstrata soared 8.42 percent to 666 pence and Barclays banking group gained 4.43 percent to 313.3 pence.

"Commodity producers are leading the charge higher, as analysts are forecasting increased demand from China," said Grech.

Elsewhere in Europe, the Swiss market Index rose 2.02 percent to 5,473.33, Milan soared 3.68 percent to 19,130, Amsterdam 3.54 percent to 260.82, Madrid 2.82 percent to 9,905.30 and Brussels 2.79 percent to 2,082.29.



(AFP)

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NEW YORK: US stocks racked up strong gains on Wednesday, sparked by results from bellwether Intel Corp that lifted hopes for a rebound in technology spending and improved corporate profitability.

The broad S&P 500 has gained 6.1 percent so far this week, its best three days since the rally began in March, as companies, including Intel and Goldman Sachs Group, posted much better-than-expected results.

The current earnings season is key as investors look for evidence to support optimism for an economic recovery.

In a sign that consumers might be faring better than feared, US credit card companies said defaults and delinquencies were lower in June than expected. American Express forecast better business in the second half of the year, pushing its stock up 11.3 percent to $27.22. For details, see

Optimism was further reinforced by manufacturing data that suggested the recession is abating, as well as minutes from the Federal Reserve's most recent policy-setting meeting that showed officials judged that the US economy's contraction was slowing.

But Intel set the tone with earnings that handily beat forecasts on better-than-expected consumer demand for personal computers. It also gave a strong outlook and shares of the world's largest chip maker shot up 7.3 percent to $18.05.

"Intel is the guts of the whole technology industry, so when they're talking about consumers getting more active on the PC front, that augers well for a lot of different things," said David Katz, chief investment officer at Matrix Asset Advisors in New York.

The Dow Jones industrial average rose 256.72 points, or 3.07 percent, to 8,616.21. The Standard & Poor's 500 Index gained 26.84 points, or 2.96 percent, to 932.68, its best gain in nearly two months and putting it solidly back into the black for the year. The Nasdaq Composite Index jumped 63.17 points, or 3.51 percent, to 1,862.90.

Along with technology shares, the financial sector led the way higher, with the S&P financial index climbing 4.1 percent. Hopes that banks will report better-than-anticipated quarterly results fuelled Monday's rally. JPMorgan, which releases its scorecard on Thursday, gained 4.5 percent to $36.26.

Intel's results lifted rival Advanced Micro Devices shares, pushing AMD up 8.7 percent to $3.86 on the New York Stock Exchange, while the PHLX semiconductor index jumped 4.4 percent.

Tech will likely continue to be in the spotlight on Thursday with results expected from bellwethers International Business Machines and Google. IBM gave the Dow its biggest boost. IBM's stock climbed 3.9 percent to $107.22 on the NYSE, while Google's shares gained 3.2 percent to $438.17 on Nasdaq.

On the economic front, separate reports showed both industrial output and New York factory activity declined at a slower pace, while consumer prices edged up moderately. The New York Federal Reserve Bank's Empire State business index registered its strongest level since April 2008.

Minutes from last month's FOMC meeting showed central bank policy-makers thought economic growth would resume in the second half of the year, although the economy remained vulnerable.


(Reuters)

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Wednesday July 15, 2009

LONDON : Europe's leading stock markets rose on Tuesday after strong US bank earnings and economic data, but doubt crept in with investors already looking anxiously ahead for more indicators, dealers said.

Bailed out US investment banking giant Goldman Sachs reported stronger than expected earnings of 3.44 billion dollars in the second quarter, topping market expectations and easing fears about a collapsing financial system.

The US government said retail prices rose for the second month in a row in June.

The reports gave markets a lift in early afternoon European trading, but analysts warned that investors were still haunted by uncertainty over the economic outlook.

"The market is still very much in a state of flux at the moment with both falls and rallies being short-lived," said Angus Campbell, a trader at Capital Spreads.

London's FTSE 100 index closed 0.85 percent higher at 4,237.68 points as European markets extended Monday's strong gains.

Frankfurt's DAX rose 1.26 percent to 4,781.69 points and in Paris the CAC 40 index rose 0.97 percent to close at 3,081.87.

Financial companies fared well in London trading, with Royal Bank of Scotland up 1.99 percent to 36.92 pounds and Lloyds Banking Group two percent to 65.8 pounds.

Likewise in Frankfurt, Deutsche Bank rose 2.60 percent to 46.69 euros and Commerzbank 0.61 percent to 4.91.

The Eurostoxx 50 composite index gained 0.90 percent.

Elsewhere there were gains of 0.70 percent on the Madrid stock exchange, 1.61 percent in Brussels, 0.94 percent on the Swiss Market Index, 0.85 percent in Amsterdam and 1.28 percent in Milan.

But analysts played down the apparent boost from the Goldman Sachs news as markets looked ahead to a wave of other banking results and economic data in coming days.

"With the lack of follow through this afternoon on the back of the Goldman Sachs's numbers, it could well be that this rally has now run its course," said David Jones, a strategist at IG Index.

Goldman's rivals JPMorgan Chase, Bank of America and Citigroup are all due to issue earnings reports this week. Markets were also awaiting US and eurozone inflation data, plus US manufacturing and housing reports.

US stocks struggled in early trade as investors took profits from a big rally on Wall Street, having already digested optimism over Goldman Sachs.

The Dow Jones Industrial Average dropped 0.36 percent to 8,301.67 in early trade. The technology-heavy Nasdaq dipped 0.31 percent to 1,787.70 while the broad-market Standard & Poor's 500 index edged down 0.24 percent to 898.92.

Goldman Sachs shares edged up 0.56 percent to 150.28 dollars, extending gains from Monday, but the rest of the finance sector was under pressure on Wall Street.

Japanese share prices closed up 2.34 percent on Tuesday, snapping a nine-day losing streak. Hong Kong soared 3.66 percent.


(AFP)

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Wednesday July 15, 2009

NEW YORK: US stocks managed modest gains on Tuesday as better-than-expected corporate profits overshadowed concerns about weak consumer demand.

Analysts said the bulk of the day's news, including a surge in profit from Goldman Sachs, was already accounted for on Monday, when major stock indexes rose by more than 2 percent in anticipation of strong bank results.

But the cross-currents inherent in the midst of conflicting signals emerging from the earnings season kept the markets range-bound.

Gains were tempered by lacklustre retail sales data and comments from Dell that second quarter margins would be lower as demand has shifted toward cheaper computers, such as netbooks.

This was offset by encouraging comments from railroad company CSX Corp's chief executive and results from Johnson & Johnson that surpassed expectations.

"The sellers had a chance to run with it, but again we found sideline cash ready to come in," said Scott Marcouiller, senior equity market strategist at Wells Fargo Advisors in St. Louis.

"The bottom line is we think we're still going to be in this trading range for a little while longer."

The Dow Jones industrial average added 27.81 points, or 0.33 percent, to 8,359.49. The Standard & Poor's 500 Index gained 4.79 points, or 0.53 percent, to 905.84. The Nasdaq Composite Index rose 6.52 points, or 0.36 percent, to 1,799.73.

Data showed June retail sales increased 0.6 percent, which was more than forecast, but a big part of that gain was due to rising gasoline prices. Excluding autos and gas sales, retail sales registered a fourth consecutive monthly decline. A rebound in sales is considered vital for the US economy to bounce back from recession, as consumer spending accounts for roughly two-thirds of the country's economic activity.

Goldman Sachs Group's surge in quarterly profit handily beat expectations, but its stock gained just 0.2 percent to $149.66 after Monday's jump of 5 percent.

Johnson & Johnson's profit also surpassed forecasts and the Dow component rose 0.9 percent to $58.23.

The current earnings season is under particular scrutiny as investors look for signs of economic improvement.

Indeed, comments from the chief executive of CSX that the worst of the recession seems to be over helped bolster stocks.

CSX, which reported better-than-expected results after Monday's closing bell, saw its shares climb 7 percent to $34.80 on the New York Stock Exchange. The Dow Jones Transportation Average gained 1.3 percent.

But personal computer maker Dell limited gains after its lower margin forecast, pushing its stock down 8.1 percent to $11.97 on Nasdaq.


(Reuters)

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Saturday July 11, 2009

KARACHI: The Karachi Stock Exchange (KSE) has amended clauses 20 and 24 of Listing Regulations relating to annual general and annual review meetings, bonus share, default and delisting.

In a notice issued here on Friday, the KSE said that in exercise of the powers conferred under Sub Section (1) of Section 34 of the Securities and Exchange Ordinance, 1969, the Karachi Stock Exchange, with the prior approval of Securities and Exchange Commission of Pakistan has made the following amendments in its Listing Regulations. These amendments have been sent for publication in the Official Gazette of Pakistan.

1. EXISTING CLAUSE 20 SHALL BE SUBSTITUTED TO READ AS UNDER:

VI. Annual General Meetings/Annual Review meetings, etc.

20 (1) A listed company shall hold its annual general meetings and lay before the said meetings its financial statements within four months following the close of financial year.

(i) Each Modaraba shall hold an annual review meeting of its certificate holders and lay before the said meeting its financial statements within four months following the close of its financial year.

Provided that it shall be mandatory for a Company to notify the Exchange of any extension in time of holding the Annual General Meeting by furnishing to the Exchange a copy of the letter of approval from the Securities and Exchange Commission of Pakistan allowing such extension, within 48 hours of receipt of the same.

(2) Failure to hold the annual general meeting/annual review meeting in time or within the extension in time provided by the Securities and Exchange Commission of Pakistan and/or failure to notify the Exchange of any such extension shall make the company liable to penalty at the rate of Rs 5,000 per day for every day of the default. The Exchange may also notify the fact of such default and the name of the defaulting company by notice and also by publication of the same in the Daily Quotations of the Exchange.

(3) The Board may suspended/delist any company which makes a default in complying with the requirements of this regulation and/or fails to pay the penalty payable hereunder or imposed by the Exchange.

2. EXISTING CLAUSE 24 SHALL BE SUBSTITUTED TO READ AS UNDER:

24(1) A listed company shall issue bonus shares certificates within a period of 30 days from the date of reopening of the share transfer register closed for this purpose.

(i) the bonus shares shall be credited into the respective CDS Accounts of shareholders maintained with the CDC or dispatched to the shareholders concerned by registered post unless those entitled to receive the bonus share certificates require otherwise in writing;

(ii) the Exchange shall be immediately intimated as soon as the bonus shares are credited/dispatched to the shareholders;

(iii) A company which makes a default in complying with the requirements of this regulation shall be liable to pay a penalty at the rate of Rs 5,000 per day until the default continues and the Exchange may also take action of suspension of trading or delisting of the company.

Provided that in case of eligible securities deposited into the CDS, in addition to the above procedure as prescribed by the CDC shall also be complied with.

(2) No company which has been suspended or delisted, as the case may be, shall be restored and its shares requited on Exchange until it has paid the full amount of penalty for the days of the default and receives the assent of the Exchange for the restoration. It is further informed that the complete updated Listing Regulations of the Exchange are available on KSE website: http://www.kse.com.pk/KSE Regulations/Listing Regulations.


(BRecorder)

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Saturday July 11, 2009

LONDON: European stock exchanges wilted on Friday, dragged down by a disappointing report on US consumer confidence and a fall in oil prices. The London FTSE 100 index shed 0.76 percent to close at 4,127.17 while in Paris the CAC 40 fell 1.41 percent to finish at 2,983.1. The Frankfurt Dax slipped 1.16 percent to 4,576.31. Elsewhere in Europe there were declines of 1.27 percent on the Swiss Market Index, 1.04 percent in Madrid, 1.58 percent in Amsterdam and 0.23 percent in Brussels. US stocks sputtered in early trade Friday with investors fretting over fears that recovery from the global recession remains distant. The blue-chip Dow Jones Industrial Average had fallen 1.08 percent to 8,094.90 by mid-day while the tech-heavy Nasdaq was down 0.56 percent at 1,742.82. Ahead of the opening, the government said the US trade deficit narrowed sharply in May to its lowest level in nearly a decade, led by a plunge in imported oil. The deficit fell nearly 10 percent in May to a seasonally adjusted 26.0 billion dollars, the lowest level since November 1999. The news appeared moderately positive for the US economy but also reflected weakness in overall global trade. Patrick O'Hare at Briefing.com said that "the impetus for the weak tone this morning was the weak finish yesterday, along with a report that China's exports declined for the eighth straight month." He said this "is diluting some of the hope that China's domestic red shoots will germinate the green shoots of a global recovery." The economic outlook "has most folks confused," said Al Goldman at Wells Fargo Advisors. "We believe the data suggests that the end of the recession is near that's the good news for investors. However, the data also appears to indicate, as we have been saying for a month, that a strong economy is not just around the corner." In Europe market analysts said sentiment was also depressed by the University of Michigan US consumer confidence index, which plunged to 64.6 points this month from 70.8 in June, a far sharper fall than had been expected. In London weaker commodity prices sent mining issues lower. Rio Tinto lost 3.33 percent to finish at 1,901.50 pence while Xstrata gave up 2.10 percent and closed at 597 pence. With crude prices sliding, oil-related stocks came under selling pressure in Paris. Total fell 1.68 percent to 35.98 euros, Technip lost 6.35 percent to close at 32.76 euros and CGG Veritas shed 4.39 percent to end the week at 10.87. Telecom equipment maker Alcatel-Lucent gave up 3.49 percent to close at 1.49 euros after announcing a new plan to cut 1,000 jobs in France by next year. In Frankfurt, Lufthansa gave up 1.66 percent to reach 8.58 euros on news that its bid for Austrian Airlines had stalled after the EU's anti-trust watchdog ruled that the German flag carrier had failed to address competition concerns raised by the acquisition. Energy giant EON fell 1.63 percent to 22.88 euros. One of the day's leading gainers, steel maker Salzgitter, added 1.23 percent to reach 59.37 euros after Citigroup raised its recommendation on the share. Asian dealers remained cautious Friday, with markets finishing the week mixed and looking for clues to an economic recovery ahead of the second-quarter earnings season. Toyko edged 0.04 percent lower, the eighth consecutive trading day of losses for the Nikkei, while Hong Kong lost 0.46 percent and Shanghai 0.29 percent. However, there were gains in Sydney, which added 0.82 percent, as Taipei dipped 0.32 percent. (AFP)

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NEW YORK: Flagging US consumer sentiment and a Chevron profit warning fed jitters about an economic recovery on Friday, knocking down global stocks and oil prices while boosting the safe-haven appeal of the dollar and government debt.

US crude prices slid below $59 a barrel in their biggest weekly decline since late January, while both the Dow and S&P 500, along with European shares, notched a fourth straight week of losses.

Crude's 10 percent slide this week has underscored worries that the recovery will be weaker than originally hoped and that second-quarter corporate results, which are just starting to be released, are unlikely to surprise much on the upside.

US consumers' moods soured in early July on persistent worries about jobs, the Reuters/University of Michigan Surveys of Consumers showed, offering little hope that consumer spending will help a sputtering economy.

"The Michigan number was a bit of a disappointment," said Mike Lenhoff, chief strategist at Brewin Dolphin Securities in London.

Some economic data points have failed to meet expectations the economy will pick up this year, said Cleveland Rueckert, market analyst at Birinyi Associates in Stamford, Connecticut.

"People are starting to question whether the economic recovery is going to take place in the latter part of this year or whether it's going to come next year," Rueckert said.

The disappointing outlook late Thursday from Chevron Corp , the second-largest US oil company, set the tone for equity markets worldwide.

MSCI's all-country world index fell 0.6 percent. Chevron fell 2.7 percent, the top Dow decliner.

Few companies will raise their outlooks during this reporting season, said David Katz, chief investment officer at Matrix Asset Advisors in New York.

"There's no incentive to step up and talk up the future, especially because there's low visibility," Katz said. "Our expectation is that companies are going to do what they've been doing: beating expectations but setting a low bar and being cautious."

The Dow Jones industrial average closed down 36.65 points, or 0.45 percent, at 8,146.52 and The Standard & Poor's 500 Index <.SPX> slid 3.55 points, or 0.40 percent, at 879.13.

But the Nasdaq Composite Index rose 3.48 points, or 0.20 percent, at 1,756.03 as the tech-rich Nasdaq outperformed the wider market.

Goldman Sachs upgraded the US hardware and software sectors to "attractive" from "neutral," citing potential growth in demand from businesses.

In Europe, the FTSEurofirst 300 index of top regional shares fell 1.1 percent to close at 814.29 points, its lowest close in more than 10 weeks.

Oil fell in the sixth of the last seven trading sessions.

US crude settled down 52 cents to $59.89 a barrel, while London Brent crude fell 58 cents to settle at $60.52 a barrel.

"The mood has changed and people are losing confidence about the economic recovery," said Simon Wardell at IHS Global Insight. "We are in one of those phases where no matter what happens in other markets oil will go down."

US Treasuries rallied, pushing benchmark yields to seven-week lows, as investors jumped back into debt on relief the market digested this week's sale of $73 billion in long-dated supply without much of a hitch.

"The recession hasn't really bottomed out," said Anne Ruff, a portfolio manager with Rydex Investments in Rockville, Maryland. "The bond market should continue to rally."

New York gold futures finished lower in light trade as worries about economic growth reduced bullion's appeal as an inflation hedge. Most other commodities also fell.

The August contract settled down $3.70 at $912.50 an ounce in New York.

The benchmark 10-year US Treasury note was up 31/32 in price to yield 3.3 percent. The 2-year US Treasury note was up 2/32 in price to yield 0.89 percent.

The dollar rose against a basket of major currencies, with the US Dollar Index up 0.47 percent at 80.243. Against the yen, the dollar was down 0.58 percent.

The euro was down 0.55 percent at $1.3947.

Amid the gloomy outlook, rates on dollar, euro and sterling funds that banks lend among themselves eased again, with benchmark three-month rates hitting record lows as money markets remained flush with central bank liquidity.

"They're going to keep an ultra accommodative policy in place and supply whatever liquidity that is necessary," said Sean Maloney, rate strategist at Nomura in London.

Uncertainty over earnings and the prospect for economic recovery led Asian shares lower, with Japanese shares sliding to near seven-week lows.

Japan's Nikkei average shed just 0.04 percent, falling for an eighth straight session, while MSCI's measure of stocks elsewhere in the Asia-Pacific region edged up during the Asia session, but later fell 0.4 percent.



(Reuters)

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Friday July 10, 2009

LONDON: European stock markets halted a three-day losing streak Thursday and finished in positive territory on better-than-expected US employment data. Sentiment was also boosted by news that US aluminium giant Alcoa had limited its second quarter loss to 454 million dollars, a better showing than the market had expected. In London the FTSE 100 index gained 0.45 percent to close at 4,158.66 points while in Paris the CAC 40 rose 0.54 percent to reach 3,025.94. The Frankfurt Dax added 1.26 percent to close at 4,630.07. Elsewhere in Europe there were gains of 1.18 percent in Milan, 0.88 percent in Madrid, 1.01 percent in Amsterdam and 0.30 percent on the Swiss Market Index. Wall Street wavered in early trade as investors fretted that the corporate earnings season would trample on signs of recovery from the severe recession. The Dow Jones Industrial Average had risen 0.13 percent to 8,188.84 at 1545 GMT. The tech-heavy Nasdaq composite gained 0.62 percent to 1,757.94. New York stocks pared back opening gains that had been bolstered by the Alcoa results, which unofficially kicked off the new round of quarterly corporate earnings. "With Wall Street nearly shaking in its boots ahead of a new round of corporate earnings, Alcoa Inc.'s better-than-expected quarterly report came as a breath of fresh air," said Joseph Hargett of Schaeffer's Investment Research. Alcoa, which jumped more than 4.0 percent in opening trade, was down 0.74 percent at 9.39 dollars. "There has been a sharp increase in investor pessimism in recent days," said Scott Marcouiller of Wells Fargo Advisors. On the macroeconomic front, new claims for US unemployment benefits fell 8.4 percent in the past week to a six-month low. But the number was skewed by fewer-than-expected layoffs in the automotive sector, the Labor Department said. The Labor Department said that initial claims fell to a seasonally adjusted 565,000 in the week ended July 4, shortened by the Independence Day holiday. Andrew Gledhill of Moody's Economy.com said the Labor Department's seasonal adjustment "anticipated a jump in layoffs due to summer auto plant shutdowns. Since these layoffs had already occurred, the jump never materialized, sending claims plummeting." In Europe, the US employment data was enough to spark a modest rebound, although gains began to fade in line with a loss of momentum on Wall Street. Trading volumes were weak in the absence of further data. "I don't think investors have much of an appetite when there are few indicators," said Alice Lhabouz of Turgot Asset Management. State-owned electricity group EDF nonetheless shot up 1.32 percent to reach 31.36 euros after its chief executive, Pierre Gadonneix, said the company was looking for a 20 percent hike in tariffs over three years. With a pick-up in crude prices in New York, oil giant Total rose 1.07 percent to finish at 36.60 euros. In Frankfurt steel makers, under heavy pressure on Wednesday, bounced back. ThyssenKrupp added 1.38 percent to reach 16.85 euros while Salzgitter gained 2.37 percent to finish at 58.65 euros. Mining issues were among the day's big winners in London, where Anglo American rose 5.59 percent to 1,651 pence and Rio Tinto 3.77 percent to 1,967 pence. Markets were mixed in Asia Thursday with a stronger yen sending Tokyo's market down for a seventh straight session, while jitters left many dealers sidelined before the corporate earnings season. Japan's Nikkei lost 1.38 percent, while Sydney was 0.12 percent off. However, Hong Kong bounced back from early selling pressure to rise 0.39 percent and cap a three-day losing streak, with dealers following further gains in China's markets. Shanghai added 1.37 percent on strong car sales, while Singapore added 2.11 percent. (AFP)

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Friday July 10, 2009

NEW YORK: US stocks edged higher on Thursday as investors bought beaten-down technology and commodity shares, while a positive broker comment on Goldman Sachs boosted the financial sector. Trading was choppy in light volumes for most of the day as investors remained cautious ahead of more corporate earnings reports in the coming weeks. Alcoa Inc set a positive tone when it kicked off the earnings season with a smaller-than-expected loss after the bell on Wednesday. The Dow industrials closed just above break-even as shares of healthcare and consumer staples companies weighed. Merck & Co Inc fell 3.7 percent to $27.01 on speculation its Zetia cholesterol drug fared poorly in a clinical trial comparing it to a drug from Abbott Laboratories. Merck was the biggest weight on the Dow. Sentiment remained cautious ahead of the release of more US corporate earnings, said Kurt Brunner, portfolio manager at Swarthmore Group in Philadelphia. "Investors are still in more of a wait-and-see mode," he said. "I still think we're in this grinding phase, this choppiness, because I don't know that we're going to get a whole lot out of earnings." The Dow Jones industrial average gained 4.76 points, or 0.06 percent, to 8,183.17. The Standard & Poor's 500 Index added 3.12 points, or 0.35 percent, to 882.68. The Nasdaq Composite Index rose 5.38 points, or 0.31 percent, to 1,752.55. A Treasury bond auction of 30-year debt showed signs of strength, providing some cheer for investors concerned about the growing mountain of US government debt. Shares rose to session highs not long after the auction. "A lot of people went short in anticipation of a poor auction and then had to cover when the auction actually went better than everyone thought," said Jack Ablin, chief investment officer at Harris Bank in Chicago. He referred to the strategy of short-selling, which involves selling borrowed shares in the hopes of buying them back when prices fall. Goldman rose 3.4 percent to $143.21 after Bank of America Securities-Merrill Lynch upgraded its rating to "buy" and raised its earnings estimates, saying the firm's earnings power and book value were increasing rapidly again. The S&P financial sector led the S&P 500 with a gain of 1.4 percent. Energy shares rose, with the S&P energy index up 1.1 percent as crude oil futures edged up. Oil giant Chevron Corp, which is expected to report interim quarterly results later on Thursday, was up 0.5 percent to $63.08. Within the tech sector, KLA Tencor Corp shot up 4.9 percent to $26.36 after Barclays upgraded the chipmaker to "overweight." The PHLX semiconductor index gained 2.8 percent. The number of US workers filing new claims for jobless benefits fell to the lowest level since January, but the seasonally adjusted data was distorted by an unusual pattern of layoffs in the automotive industry. (Reuters)

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Wednesday July 08, 2009

NEW YORK: US stocks fell to their lowest level in 10 weeks on Tuesday as talk of a second government stimulus plan heightened fears that the economy is not yet on the path to recovery and that the corporate earnings season starting this week will be weak. A member of the Obama administration's economic advisory panel said the United States should plan to possibly provide a second round of stimulus funds to prop up the economy. The comments come as investors question earlier optimism for a quick recovery, which had driven stocks as much as 40 percent higher since early March. "It's clear that over the last three plus weeks that investors are becoming concerned that the recovery in the economy will not come as soon as expected and will not be as strong as expected," said Hugh Johnson, chief investment officer of Johnson Illington Advisors in Albany, New York. "When there's talk about another stimulus plan that adds fuel to that fire, it intensifies the concerns about the timing and strength of the recovery." Cyclical stocks in the materials, energy, and industrial sectors, which had ridden a recent upswing in raw material prices on recovery hopes, led the market down as commodity prices eased. Copper, a barometer of global economic strength, fell nearly 2 percent. Caterpillar Inc, a maker of heavy machinery for construction and mining companies, shed 4.5 percent to $30.29. The Dow Jones industrial average dropped 161.27 points, or 1.94 percent, to 8,163.60. The Standard & Poor's 500 Index fell 17.69 points, or 1.97 percent, to 881.03. The Nasdaq Composite Index lost 41.23 points, or 2.31 percent, to 1,746.17. The S&P 500 closed at its lowest level since May 1 while the Dow industrials closed at their lowest level since April 28. An initial snapshot of the second-quarter performance of natural resource companies will come on Wednesday when Alcoa Inc kicks off quarterly earnings season. The aluminium producer, a Dow component, is expected to post a third consecutive quarterly loss. S&P 500 corporate earnings are expected by analysts to have declined about 36 percent from a year ago, according to data compiled by Thomson Reuters. That would be roughly the same as the decline seen in the first quarter. Doubts about the strength of an economic recovery and subsequent demand for oil have sent crude prices tumbling in the last week. New York crude fell 1.8 percent on Tuesday and is down about 14 percent from the intraday peak hit on June 30. Its slide has pressured energy stocks. Oil services company Schlumberger Ltd fell 4.4 percent to $49.20 while blue chip Exxon Mobil Corp lost 2.3 percent to $66.56. The S&P energy sector index lost 2.5 percent. Non-cyclical areas of the market, which have been stronger in recent weeks as investors sought out companies better positioned to weather a weak economy, initially withstood the sell-off on Tuesday. But by the end of the day even the defensive sectors fell victim to selling. Health care, a classic defensive sector, traded in positive territory for most of the day but by the close the S&P healthcare index fell 0.3 percent -- still outperforming the wider market. Drug maker Pfizer Inc, one of the few Dow stocks to finish in positive territory, edged up 0.1 percent to $14.59. A rally in the broad S&P 500 index that had boosted it about 40 percent from 12-year lows hit in early March has wilted in the last month as investors sought stronger evidence that economic conditions were improving. Trading was below average on the New York Stock Exchange, with about 1.11 billion shares changing hands, under last year's estimated daily average of 1.49 billion, while on Nasdaq, about 2.04 billion shares traded, below last year's daily average of 2.28 billion. Declining stocks outnumbered advancing ones on the NYSE by 4 to 1 while decliners beat advancers on the Nasdaq by about 10 to 3. (Reuters)

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Thursday July 02, 2009

KARACHI: The benchmark KSE-100 Index of Karachi Stock Exchange surged by 109 points on the opening day of the new financial year, closing at 7,270.

The share market opened upbeat and the major Index was seen in the green territory throughout the session.

Energy and cement sectors drew particular attention of the investors who took fresh positions in these sectors on reports of slashing of interest rate by the State Bank of Pakistan (SBP) and reduction in profit rates on national savings schemes.

Trade volume was recorded at 100 million shares.

DG Khan Cement was today’s star performer in terms of volume which gained paisas 85 to close at Rs30.50.

KSE-30 Index advanced by 141 points to peg at 7,711

Thursday July 02, 2009

KARACHI: The benchmark KSE-100 Index of Karachi Stock Exchange surged by 109 points on the opening day of the new financial year, closing at 7,270.

The share market opened upbeat and the major Index was seen in the green territory throughout the session.

Energy and cement sectors drew particular attention of the investors who took fresh positions in these sectors on reports of slashing of interest rate by the State Bank of Pakistan (SBP) and reduction in profit rates on national savings schemes.

Trade volume was recorded at 100 million shares.

DG Khan Cement was today’s star performer in terms of volume which gained paisas 85 to close at Rs30.50.

KSE-30 Index advanced by 141 points to peg at 7,711

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Thursday July 02, 2009

LONDON: European stock exchanges surged ahead on Wednesday in line with a robust opening on Wall Street and in response to some positive US economic data despite worse-than-expected unemployment figures.

The London FTSE 100 index added 2.15 percent to close at 4,340.71 points while in Paris the CAC 40 rose 2.43 percent to reach 3,217. The Frankfurt Dax gained 2.0 percent to end the session at 4,905.44.

There were gains of 1.18 percent in Madrid, 2.12 percent in Brussels, 1.99 percent in Milan and 2.19 percent in Amsterdam.

Wall Street shares earlier in the day opened a new month and quarter on an upbeat note, with the Dow Jones Industrial Average up 1.36 percent at 8,561.57 at mid-day. The tech-heavy Nasdaq had risen 1.24 percent to 1,857.77.

Wall Street looked to overseas markets for early cues, shrugging off an early report showing a weaker-than-expected US labor market.

"Some upbeat manufacturing data from China and Europe are helping soothe concerns that the economic reality has fallen behind the recent rally in the equity markets since mid-March," said analysts at Charles Schwab & Co.

That helped offset a survey from payrolls firm showing the US private sector shed 473,000 jobs in June.

"The ADP report for June wasn't as dire as the initial headlines indicated," said Patrick O'Hare at Briefing.com

"Nonetheless, it isn't good news. It is a sobering reminder that the labour market is weak and that there is a heightened risk of disappointment in the (official) nonfarm payrolls number that will be reported Thursday."

But gains accelerated on a report showing the US manufacturing sector showed signs of emerging from its slump in June, after similar reports from Europe and China.

The US Institute of Supply Management said its index of the sector also known as the purchasing managers (PMI) index, increased to 44.8 percent from 42.8 percent in May.

It was below the 50 percent level that separates expansion and contraction, and just under the 45 percent expected by private economists.

But Ryan Sweet at Moody's Economy.com said the ISM report "suggests that the worst of the manufacturing contraction is behind us. The details of the report were much more upbeat than the headline number would suggest."

In Asia on Wednesday, Japanese share prices ended slightly lower as investors took profits after a key index of business confidence rose by less than expected, dealers said.

Tokyo's benchmark Nikkei-225 index lost 18.51 points, or 0.19 percent, to end at 9,939.93, a day after ending at a two-week high.

The Nikkei topped 10,000 points at one point during the day but failed to hold above the key level.

"As the index topped 10,000, it was a good time to sell," said Hideaki Higashi, a strategist at SMBC Friend Securities.

The Bank of Japan said in its quarterly Tankan survey that business confidence among major Japanese manufacturers had improved for the first time in two-and-a-half years.


(AFP)

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Thursday July 02, 2009

NEW YORK: US stocks rose on Wednesday, the start of the third quarter, as reassuring manufacturing data from China, Europe and the United States reinforced hopes that the world's economy is on the road to recovery.

A day after the benchmark S&P 500 wrapped up its best quarter in a decade, investors plowed new money into stocks, boosting growth-sensitive sectors like energy, industrials, technology, materials and consumer discretionaries.

But with the release of the all-important June non-farm payrolls data just a day away, some caution prevailed, causing indexes to finish sharply off their highs.

A weaker US dollar underpinned stocks of multinational companies such as Coca-Cola, up 2.5 percent at $49.18, as investors bet the U.S currency's decline might boost overseas earnings. Coca-Cola is one of the best-known defensive stocks, which are shares of companies deemed better able to withstand an uncertain economy.

General Mills Inc, the maker of Cheerios cereal, also gave investors more reason to be optimistic about the economy after the food company forecast a stronger-than-expected annual profit, sending its stock up 3.9 percent to $58.18.

"There are clearly signs that we are emerging from the recession," said Maury Fertig, chief investment officer of Relative Value Partners in Northbrook, Illinois. "We think the economy has bottomed out and we'll see some positive GDP this quarter."

Even so, volume was light because of the absence of most market players in a holiday-shortened week. US financial markets will be closed on Friday for the US Independence Day holiday.

The Dow Jones industrial average rose 57.06 points, or 0.68 percent, to 8,504.06. The Standard & Poor's 500 Index gained 4.01 points, or 0.44 percent, to 923.33. The Nasdaq Composite Index shot up 10.68 points, or 0.58 percent, to 1,845.72.

Earlier in the session, indexes had risen more than 1 percent, but pared gains heading toward the close as apprehension about Thursday's non-farm payrolls data crept into the market.

The initial estimate, according to a Reuters poll of economists, called for payroll losses of 355,000 non-farm jobs last month. But an updated poll this week of 76 economists raised the figure to 363,000 jobs. The department said in May that 345,000 positions were eliminated by employers.

The unemployment rate is expected to have crept up to 9.6 percent -- its highest since June 1983 -- from 9.4 percent in May.

The jobs data is due at 1230 GMT on Thursday.

Kraft Foods Inc, another major US food company, jumped 5 percent to $26.61, following the outlook of General Mills. Kraft topped the Dow's list of major advancers.

Chip makers ranked among the Nasdaq's biggest boosters, with Intel Corp up 3 percent at $17.04.

In the latest readings on the global economy, surveys from Europe showed manufacturing was shrinking less than initially thought and in China's case, growing modestly.

Other data on Wednesday showed the US manufacturing sector contracted in June but at a slower pace than in May. The Institute for Supply Management said its index of national factory activity edged up to 44.8 to in June from 42.8 in May.

Additionally, global outplacement consultancy Challenger, Gray & Christmas data showed planned layoffs at US firms fell to a 15-month low in June. That news eclipsed the ADP Employer Services payroll survey showing that private employers cut 473,000 jobs in June.

Prospects for a better world economy lifted commodity prices, boosting stocks in natural resource companies, including miners, with Newmont Mining Corp up 3.2 percent at $42.18.

Shares of Chevron Corp rose 0.4 percent to $66.52, while Exxon Mobil added almost 1 percent to $70.56. Both stocks were off their best levels, however, after crude oil futures reversed an initial climb that sent them above $71 a barrel earlier on Wednesday.

US front-month crude slipped 58 cents to settle at $69.31 a barrel, after rising as high as $71.85 earlier.


(Reuters)

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Wednesday July 01, 2009

NEW YORK: US stocks fell on Tuesday as an unexpected drop in consumer confidence cooled recent optimism about an economic recovery, but Wall Street still closed out its best quarter in a decade.

The drop in the Conference Board's measure of consumer confidence in June suggested that the 18-month-long recession had yet to loosen its grip on the US economy.

Gloom among consumers is a major obstacle as their spending is a major driver of corporate profits and accounts for roughly two-thirds of US economic activity.

Tuesday's standout decliners included industrials, energy and material stocks, some of the very same sectors that helped underpin the market's push to recover from the 12-year lows of early March as investors bet on economic stabilization.

"Consumer confidence is the excuse du jour for the latest market move," said Tom Alexander, head of Alexander Trading, in Savannah, Georgia.

"For the market to go much higher, you are going to have to see some real hard evidence of some of these things that are being anticipated by the market, start to come to fruition. Pick one. Are the bank balance sheets really cleaned up? Nobody knows. The market has gone up on a lot of faith here."

The Dow Jones industrial average slipped 82.38 points, or 0.97 percent, to 8,447.00. The Standard & Poor's 500 Index dropped 7.91 points, or 0.85 percent, to 919.32. The Nasdaq Composite Index shed 9.02 points, or 0.49 percent, to 1,835.04.

Even so, the S&P 500 posted its best quarterly performance since the fourth quarter of 1998. For the month of June, the Dow shed 0.6 percent, while the S&P 500 inched up 0.02 percent, and the Nasdaq climbed 3.4 percent.

Since its 12-year closing low on March 9, the S&P 500 is up 35.9 percent.

Among industrial stocks, shares of Caterpillar Inc, a maker of bulldozers and excavators, slumped 4.9 percent to $33.04, while on the technology front, International Business Machines Corp tumbled 1.3 percent to $104.42.

On Nasdaq, chip maker Qualcomm, off 1.9 percent at $45.20, was the worst drag.

Sliding oil prices gave investors a reason to sell some energy shares, with Exxon Mobil down almost 1 percent at $69.91.

Crude oil futures fell $1.60, or 2.2 percent, to settle at $69.89 a barrel.

Shares of US oil refiners such as Sunoco Inc and Tesoro Corp dropped after Goldman Sachs cut them to "sell" from "neutral."

Sunoco dipped 0.4 percent to $23.20, while Tesoro declined 1.2 percent to $12.73.

On the final day of the second quarter, money managers set out to burnish their portfolios by selling losing stocks and scooping up winners in a move that helped the market end sharply off its lows.

Volume was on the lighter side due to a holiday- shortened week. US markets will be shut for the US Independence Day holiday on Friday.

Tuesday's other economic news were separate reports that showed US single-family home prices fell in April but the pace of decline moderated, and business activity in the Midwest contracted again in June, but at a less severe rate than expected.

(Reuters)

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Tuesday June 30, 2009

LONDON: European stock exchanges recorded strong gains on Monday, with investors in a buying mood as the first half of the year winds down ahead of key US data later in the week.

In London the FTSE 100 index climbed 1.25 percent to close at 4,294.03 points, gaining strength following a positive start to the trading day on Wall Street.

In Paris the CAC 40 rose 2.04 percent to finish at 3,193.68 while in Frankfurt the Dax added 2.27 percent to reach 4,885.09.

Elsewhere there were gains of 1.5 percent in Amsterdam, 1.21 percent in Brussels, 1.64 percent in Madrid, 0.17 percent in Milan and 1.25 percent on the Swiss Market Index.

In New York the Dow Jones Industrial Average was up 0.89 percent at mid-day at 8,513.28. The tech-heavy Nasdaq had risen 0.45 percent to 1,846.50.

The economic calendar was empty Monday but investors faced a slew of data in the holiday-shortened week, with the market closed Friday for the July 4 Independence Day holiday.

Among the key reports are the June consumer confidence reading on Tuesday, June automobile sales on Wednesday and the June unemployment report, a bellwether on economic momentum, on Thursday.

"The market is in a discerning state of wait-and-see, as it looks for justification in the upcoming second quarter earnings reports and incoming economic data to keep the recovery rally going," said Patrick O'Hare of Briefing.com.

"We think it could be disappointed given the lack of economic evidence suggesting there has been a strong pickup in end demand that would allow for the majority of companies to deliver top-line driven earnings surprises."

In London sentiment was largely driven by the banking and insurance sector, with investors attracted by positive comment from analysts.

Lloyds Banking Group jumped 6.12 percent to 70.56 pence after Goldman Sachs added it to its list of preferred stocks.

Barclays rose 4.31 percent to 279.65 while Schroders gained 3.67 percent to finish at 846.50 pence.

In Paris, according analyst Alice Lhabouz of Turgot Asset Management, "there has been some technical buying before the end of the first semester."

She said portfolio managers appeared ready to invest in cyclical -- and riskier -- stocks before drafting their semester reports.

Oil issues were well supported, taking advantage of rising crude prices. Total added 2.53 percent close at 38.97 euros while Vallourec rose 3.32 percent to 87 euros.

In Frankfurt companies that are especially dependent on macroeconomic developments were in demand.

The industrial conglomerate Siemens added 3.19 percent to close at 50.41 euros while chemical group BASF gained 3.93 percent to finish at 29.12 euros.

Volkswagen crept up 0.71 percent to 251.18 euros. But the auto maker suffered from tensions with Porsche, its principal shareholder.

Porsche, the heavily indebted maker of German luxury sports cars, rejected a merger offer by Volkswagen.

Deutsche Telekom rose 2.49 percent to close at 8.43 euros on press reports that its British rival Vodafone was preparing an offer for Deutsche Telekom's British subsidiary T-Mobile UK.

In Asia on Monday, Tokyo ended down 0.95 percent and Hong Kong slipped 0.39 percent, ending a three-day winning streak, as investors took profits ahead of a series of economic reports due this week.


(AFP)

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Tuesday June 30, 2009

NEW YORK: US stocks rose on Monday as higher oil prices lifted shares of energy companies and fund managers snapped up this quarter's winners to burnish their portfolios.

Energy shares were a strong performer in the quarter, and a 3.4 percent jump in the price of oil lifted them even further on Monday. Exxon Mobil Corp was the Dow's top driver, rising 2.2 percent to $70.58.

Fund managers are building up their portfolios before the quarter ends on Tuesday in a ritual known as "window dressing" by selling some of the quarter's losers and scooping up the winners. This move bolstered stocks as well.

"This has been a heck of a run," said Marc Pado, US market strategist at Cantor Fitzgerald & Co, in San Francisco. "A lot of people didn't believe and left a lot at the table. Having the right positions (and) not showing a great deal of cash, that is really the main driving force here -- the so-called window dressing.

"You can show you own the names that everyone knows did well," he said.

Financials, the day's top advancer, also led quarterly gains, followed by technology.

The S&P 500 is up 16.2 percent so far for the quarter, putting it on track for its best quarter since the fourth quarter of 1998, when the index jumped nearly 21 percent.

The Dow Jones industrial average gained 90.99 points, or 1.08 percent, to end at 8,529.38. The Standard & Poor's 500 Index was up 8.33 points, or 0.91 percent, at 927.23. The Nasdaq Composite Index was up 5.84 points, or 0.32 percent, at 1,844.06.

Shares of home builders also helped underpin the market after Credit Suisse raised its rating on KB Home, citing stronger orders and more attractive valuation. KB Home was up 5.1 percent at $14.11. The Dow Jones US Home Construction Index advanced 1.5 percent.

Wall Street's eyes and ears also were on the news coverage of Bernie Madoff, who was sentenced to 150 years in prison on Monday for running what prosecutors called a $65 billion Ponzi scheme. When Madoff's fraud was revealed last December, its scope was so brazen and so massive that it shocked investors and made everyone question their broker.

Signs of life in overseas markets helped to build optimism about the prospects for an economic recovery.

Shanghai stocks reached a one-year closing high for the fourth straight session as signs of a Chinese economic recovery and ample liquidity boosted the market, bolstering investor sentiment.

Crude oil futures jumped $2.33 to settle at $71.49 per barrel after Nigerian militants said they attacked the country's oil facilities, which set off some concerns about supply.

An S&P energy index was up 1.3 percent, while Occidental Petroleum jumped 2.9 percent to $66.13.

On the Nasdaq, Microsoft Corp advanced 2.2 percent to $23.86 after Deutsche Bank raised its price target on the stock to $30 from $22.


(Reuters)

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Saturday June 27, 2009

LONDON: Europe's main stock markets fell on Friday, dragged down by Wall Street despite upbeat US economic data as investors locked in profits from and a three-month surge seemed to fizzle, dealers said.

"There is simply not enough positive news flow to fuel sentiment," said David Jones, a strategist at IG Index, commenting on London trading.

"After a 30 percent bounce back off the year's lows (in recent months), investors are struggling to see much upside, particularly with the prospect of the usually quiet summer period around the corner."

London's FTSE 100 index closed 0.27 percent lower at 4,241.01 points. In Paris the CAC 40 index fell 1.05 percent to close at 3,129.73 points and Frankfurt's Dax fell 0.50 percent to 4,776.47 points.

"It is clear that the upbeat outlook that powered the FTSE from the 3,500

mark in March to above 4,500 in early May has gone for the moment," Jones said.

In Paris, investors were "correcting the 30-percent rise in three months," said strategist Jean-Louis Mourier of strockbrokers Aurel BGC. "The correction is not finished," he added.

On the foreign exchange market, the European single currency advanced to 1.4054 dollars.

Swiss mining group Xstrata bucked the trend in London, gaining 2.52 percent. It is trying to convince rival Anglo American to merge with it, citing potential annual benefits of more than 1.0 billion dollars.

London-based Anglo American, a British-South African group, on Monday rejected the merger proposal. Its shares fell 1.47 percent on Friday, while its rival Rio Tinto lost 0.96 percent and BHP Billiton 0.70 percent.

British Airways rose 2.13 percent after announcements of pay cuts on Thursday.

Japanese shares had climbed for a third straight day on Friday, tracking the previous day's gains on Wall Street. The benchmark Nikkei-225 index rose 0.83 percent to end at 9,877.39 points.

US stocks fell as investors took profits and digested largely positive government data on personal income and spending.

On Wall Street the Dow Jones Industrial Average shed 0.64 percent to 8,418.44 in early trade after posting on Thursday its first triple-digit gain since June 1.

US consumer spending posted a modest gain in May, government data showed Friday, suggesting recovery in a key driver of the recession-mired economy.

Elswehere in Europe, Milan's Mib fell 0.58 percent to 18,832 points and Brussels' Bel-20 fell 0.12 percent to 2,013.32.

The Swiss Market Index rose 0.27 percent to 5,375.99 points, Amsterdam's AEX 0.12 percent to 254.43 points and Madrid's Ibex-35 0.20 percent to 9,986.90.

"It seems unlikely we are going to experience the sort of stomach churning sell-offs we saw earlier this year," Jones said.

"But it would not be surprising for stock markets to continue gradually

unwinding at least some of the gains of the past three months."


(AFP)

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Saturday June 27, 2009

NEW YORK: The Nasdaq rose on Friday, on strong demand for Palm's Inc's Pre smartphone, while the Dow was dragged lower by sliding oil prices and strength in some financial stocks helped cushion the S&P 500's decline.

The technology-heavy Nasdaq outperformed, helped partly by gains in Palm after it posted a narrower-than-expected loss late on Thursday and said demand was strong for its new Pre smartphone. Palm shares jumped nearly 16 percent to $16.22.

Weighing on sentiment, a jump in the savings rate suggested that the debt-burdened US consumer may not drive the economy out of recession as fast as hoped.

Data showed that while consumer spending and income both rose in May as the government stimulus spread through the economy, much of the money was being stored away. Savings jumped to a record annual level of $768.8 billion, the highest level since record keeping began in 1959.

Robert Stimpson, portfolio manager at Oak Associates in Akron, Ohio, said that while he did not put too much store on the savings data alone, the trend in the United States was toward more saving and less spending.

"The US markets are probably going to lag the rest of the world because we have a need to pay down debt, increase our savings rate and be better stewards of our own capital, which might lead to lower consumer spending versus the rest of the world," Stimpson said.

There was a strong surge in trade late in the session, pushing volume significantly above last year's daily average, as Russell Investments announced the final reconstitution of the widely followed Russell 3000 index.

But the session was relatively quiet for most of the day after a busy week that included Federal Reserve Chairman Ben Bernanke's contentious appearance on Capitol Hill and the sale of a record $104 billion in US Treasury debt.

The Dow Jones industrial average dropped 34.01 points, or 0.40 percent, to 8,438.39. The Standard & Poor's 500 Index fell 1.36 points, or 0.15 percent, to 918.90. But the Nasdaq Composite Index gained 8.68 points, or 0.47 percent, to 1,838.22.

The Chicago Board Options Exchange Volatility Index or VIX, Wall Street's most popular indicator of investor anxiety, closed at 25.93, its lowest level since Sept. 12, the Friday before Lehman Brothers went into bankruptcy.

For the week, stocks finished mixed. The Dow slid 1.19 percent and the S&P 500 fell 0.25 percent, while the Nasdaq rose 0.59 percent.

The S&P 500 has climbed as much as 40 percent since hitting a 12-year closing low in early March. But the rally has stalled in recent weeks as investors look for more signs of an economic recovery. Some analysts are expecting a significant pullback in stock prices over the summer.

"Today is a real mixed market without any significant trends," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut. "Generally there is a lack of conviction about what the next direction for the market will be."

Oil settled below $70 per barrel, hitting energy bellwethers Chevron Corp, down 1.4 percent at $65.95, and Exxon Mobil Corp, off 1.2 percent at $68.05.

Goldman Sachs was among the financial sector's stronger stocks, up 1.6 percent at $146.74, while JPMorgan added 0.9 percent to $34.45.

Analysts noted stocks were buffeted by profit taking after Thursday's 2 percent gain, as well as by end-of-quarter "window dressing." This can add volatility as portfolio managers sell stocks with big losses and buy some of the quarter's best-performing issues to help improve their returns.

Trading volume was heavy on the New York Stock Exchange, with about 2.35 billion shares changing hands, far above last year's estimated daily average of 1.49 billion, while on Nasdaq, about 4.31 billion shares traded, sharply above last year's daily average of 2.28 billion.

Advancing stocks outnumbered declining ones on the NYSE by 1,833 to 1,170 while on the Nasdaq, there were 1,714 advancers and just 937 decliners.


(Reuters)

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Friday June 26, 2009

LONDON: European stock exchanges closed in negative territory on Thursday, dragged down by data showing that more US workers applied for jobless benefits last week than had been expected.

The London FTSE 100 index fell 0.64 percent to finish at 4,252.57 while in Paris the CAC 4O dropped 0.68 percent to close at 3,163.10. The Frankfurt Dax lost 0.73 percent to finish at 4,800.56 points.

Elsewhere in Europe there were declines of 1.51 percent on the Swiss Market Index, 0.52 percent in Milan, 0.2 percent in Amsterdam and 0.03 percent in Brussels. Share prices in Madrid rose 0.52 percent on the day.

On Wall Street stocks swung higher Thursday as investors responded to a small upward revision in US economic output.

But the uptick in new US jobless claims kept trading cautious.

The Dow Jones Industrial Average at mid-day was up 0.53 percent at 8,344.15 while the Nasdaq had gained 1.46 percent to reach 1,818.49.

Market action came after the government reported that the US economy contracted at a 5.5 percent pace in the first quarter, not as bad as the previous estimate of a 5.7 percent drop.

Analysts said the report was consistent with other signals suggesting the worst slump in decades would soon be over.

"All the incoming data suggest that economic activity contracted at a much slower rate in the second quarter -- 2.5 to 3.0 percent -- and that the trough of this cycle is likely to occur sometime in August or September," said Nariman Behravesh at IHS Global Insight.

Behravesh said he "now expects the economy to be more or less flat in the third quarter and grow around 1.0 percent in the fourth quarter."

But the positive tone was soured by a report that new claims for US unemployment benefits climbed for the second consecutive week last week.

Initial claims for unemployment insurance benefits rose to a seasonally adjusted 627,000 in the week ended June 20 from an upwardly revised 612,000 claims in the prior week, the Labor Department said.

Most analysts had expected new claims of 600,000.

"The prevailing message remains that the labor market is weak and that's not a great portent for consumer spending or the housing recovery," said Patrick O'Hare of Briefing.com.

In London British Airways edged up 0.07 percent to 345 pence. The company said 800 employees had agreed to work for free while 7,000 would take a pay cut in order to help the carrier cut its losses.

In Paris trading was described as volatile, with Wednesday's gains reversed.

Oil group Total weighed heavily on the market, falling 1.19 percent to 38.04 euros on rumours that it might have to downgrade its financial targets.

Credit Agricole bank shed 3.90 percent to close at 9.14 euros after two brokerages lowered their profit predictions for the lender.

In Frankfurt chemical group BASF gave up 2.46 percent to end the session at 28.17 euros after announcing the closure of a plant in Germany in the face of weak demand.

Auto maker Volkswagen lost 3.19 percent to finish at 242.50 euros. Press reports said VW could form a cooperation alliance with Suzuki of Japan, possibly taking a 10 percent stake.

In Asia Thursday, Japanese shares jumped 2.15 percent, boosted by gains on other Asian markets and a weak yen, which is good for exporters. Hong Kong stocks soared 2.14 percent.



(AFP)

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Thursday June 25, 2009

LONDON: European stock markets posted solid gains on Wednesday in line with Wall Street where investors were cheered by an unexpected rise in US durable goods orders.

In London the FTSE 100 index closed at 4,279.98 points, up 1.18 percent, while in Paris the CAC 40 rose 2.18 percent to finish at 3,184.76. The Frankfurt Dax added 2.74 percent to reach 4,836.01 points.

Elsewhere there were gains of 2.54 percent in Brussels, 3.12 percent in Milan, 2.39 percent in Amsterdam, 2.88 percent in Milan and 2.29 percent on the Swiss Market Index.

US stocks opened in positive territory Wednesday after a report of a jump in durable goods orders in May, but the market remained cautious awaiting the conclusion of the Federal Reserve policymaking meeting.

The Dow Jones Industrial Average was up 1.16 percent at 8,419.49 at mid-day while the tech-dominant Nasdaq had risen 2.19 percent to 1,803.63.

A government report before the opening bell showed orders for US long-lasting manufactured goods surged unexpectedly in May, pointing to recovery in the embattled sector amid the prolonged recession.

The Commerce Department said durable goods orders rose a seasonally adjusted 1.8 percent in May from April. Most analysts had projected a decline of 0.9 percent.

The report "helped boost sentiment, soothing some concerns that the recent rally in the equity markets may have gotten ahead of the economic reality," said analysts at Charles Schwab & Company in a note to clients.

However, with the conclusion of Wednesday's Federal Open Market Committee meeting, "traders may be treading relatively cautiously in early action."

The FOMC is seeking to steer monetary policy amid tentative signs of recovery from recession.

Economists expected the Fed to maintain its near-zero interest rate policy.

US stocks made a modest pullback after data showed new home sales during May hit an annualized rate of 342,000 units, below the 360,000 unit consensus forecast.

Given the revisions to the prior month, new home sales were down 0.6 percent month-over-month. They were expected to increase 2.3 percent.

Miners were among the day's big winners in London, with Anglo American surging 10.17 percent to 1,829 pence after Swiss rival Xstrata said it would still try to convince it of the advantages of a merger. Anglo American on Monday spurned the proposal.

Elsewhere in the sector Lonmin added 7.05 percent to close at 1,214 pence while Rio Tinto rose 5.55 percent to 2,131 pence.

In Paris the finance sector, which suffered losses earlier this week on renewed fears for economic recovery prospects, bounced back.

The BNP Paribas bank added 4.46 percent to finish at 45.86 euros while rival Societe Generale gained 3.16 percent to close at 39.46 euros.

Banks were also in demand in Frankfurt, where Deutsche Bank rose 6.60 percent to 42.85 euros and Deutsche Borse rose 2.85 percent to 56.61 euros.

Steel makers ThyssenKrupp and Salzgitter, bolstered by the durable goods data from the United States, rose 6.31 percent to 18.04 euros and 4.60 percent to 62.72 euros respectively.

In Asian stock markets on Wednesday, Tokyo rose 0.43 percent as a weaker yen and gains among commodity-related stocks helped the market to recover some of the previous day's heavy losses.

Hong Kong share prices closed 2.02 percent higher on Wednesday, as investors grabbed bargains in property firms after a heavy fall in the previous session.


(AFP)

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