Monday, August 18, 2008

MARKET SNAPSHOT: U.S. Stocks Fall As Oil Rises, Financials Woes Return

By Nick Godt

U.S. stocks fell early Monday morning, as rising crude oil prices fueled uncertainty about the economy, while worries about ailing financials were rekindled by several media reports.

The Dow Jones Industrial Average (DJI) fell 43 points, or 0.5%, to 11,605 in early action, with 26 of its 30 components falling. The benchmark index was pulled lower by General Motors Corp. (GM), AIG (AIG), and Hewlett Packard (HPQ).

Shares of Exxon Mobil Corp. (XOM) rose 0.7%.

Crude-oil prices moved higher amid worries that Tropical Storm Fay could reach installations in the Gulf of Mexico. The September-dated light crude contract tacked on 70 cents to $114.46 a barrel, having peaked at $115.35.

The U.S. dollar was broadly steady after strong gains in the last couple of weeks and ahead of the latest data on housing, due later in the session, and inflation data due Tuesday.

Financial shares gave up some of their strong gains from Friday. Lehman Brothers (LEH) lost 4% after The Wall Street Journal said it could lose $1.8 billion during the quarter.

Separately, newsweekly Barron's said it's growing more likely that the U.S. government will recapitalize Fannie Mae (FNM) and Freddie Mac (FRE), wiping out investors.

Both Fannie and Freddie lost over 10%.

Friday, August 15, 2008

CURRENCIES: Dollar Rallies To Multiple-month Highs

By Steve Goldstein

The dollar's rally extended to multiple-month highs on Friday as U.S industrial output grew the most in 10 months and as traders continued to react to data that showed economies of five of the Group of Seven nations contracted.

In earlier action, the dollar rose to an intraday high of 110.65 Japanese yen, the highest level since January. The euro fell to an intraday low of $1.4663, the lowest since February, and the British pound fell to as low as $1.8510, the weakest since July 2006.

The dollar index (DXY), which measures the greenback against a basket of currencies, rose to an intraday high of 77.25, its highest level since December.

"The perception that the fundamental picture has tilted in favor of the U.S. dollar has continued to help drive" the greenback up, said Marc Chandler, a currency strategist at Brown Brothers Harriman.

Friday's U.S. industrial production data showed the output of U.S. factories rose 0.4% in July, the best gain in 10 months, the Federal Reserve reported.

Overall, industrial production at the nation's factories, mines and utilities increased a seasonally adjusted 0.2%, as expected, despite a 1.9% drop in output of utilities.

Separately, manufacturers in New York state said business improved slightly in early August, the New York Federal Reserve Bank reported Friday. The Empire state index rose to 2.8 in August from negative 4.9 in July.

UPDATE: Bond And Mortgage Insurers Extend Rally

By John Spence

BOSTON (Dow Jones) -- Shares of Ambac Financial Group Inc. rose sharply Friday morning after a ratings agency affirmed its view on the bond insurer and removed the ratings from review for a possible further downgrade.

Standard & Poor's Ratings Services late Thursday affirmed its AA financial strength ratings on Ambac (ABK) and MBIA Inc. (MBI). The stocks were up about 18% and 7%, respectively, in early trading Friday.

Bond and mortgage insurers rallied Thursday after the latest high-profile settlement related to the auction-rate securities mess.

Also Thursday, the Securities Industry and Financial Markets Association decided to allow newly originated jumbo loans to be included in the to-be- announced market for mortgage-backed securities. The move could lend support to the ailing mortgage market.

Shares of PMI Group Inc. (PMI) rallied 50% on Thursday as investors cheered the mortgage insurer's deal to sell some overseas assets.

Other mortgage insurers traded higher in early dealings Friday. MBIC Investment Corp. (MTG) gained 5% and Radian Group Inc. (RDN) was up nearly 9%.

Despite the recent rally, bond insurers are still down heavily so far this year on worsening conditions in the housing and credit markets. Ambac shares are off about 92% over the trailing 12 months through Thursday's close.

Thursday, August 14, 2008

Oil Jumps and Financials and Earnings Add to Bulls' Lumps

Despite an afternoon attempt at a recovery, stocks finished lower as crude oil and commodities rose solidly. Financials faltered amid continued fears for the sector, and economic concerns crept higher after a dismal earnings report from Deere & Co, to add to the pessimistic mood on the Street. However, tech issues fared relatively well amid upbeat comments from Applied Materials, and a $1 billion increase in its share buy back program from Nvidia. In other equity news, Best Buy announced it will carry Apple's iPhone, Toll Brothers posted a drop in revenues, backlog, and net signed contracts. Elsewhere, Moody's downgraded the debt of General Motors, and CVS Caremark has agreed to acquire Longs Drug Stores for $2.9 billion. In economic news, retail sales showed signs of slowing, import prices jumped, and business inventories remained thin. Treasuries finished lower. see more

Wednesday, August 13, 2008

UPDATE 1-Thai consumer confidence recovers in July

BANGKOK, Aug 14 (Reuters) - Thai consumer confidence rose in July after falling for three straight months, boosted by the government's economic stimulus measures, cheaper subsidised petrol and robust exports, a survey showed on Thursday.

The University of the Thai Chamber of Commerce (UTCC) said its survey showed these positive factors outweighed political uncertainty caused by protests against Prime Minister Samak Sundaravej and concern over the global credit market crisis.

The recovery in July surprised some analysts, who had expected consumption to remain sluggish due to high inflation.

"It may be premature to say that consumer confidence has returned, but the possibility of oil prices hovering in a lower $100-120 range in the second half and the boost from state stimulus measures should improve sentiment in the months ahead," UTCC poll director Thanavath Phonvichai told reporters.

"One negative factor for the economy is lingering political uncertainty," he said, referring to what might happen now former Prime Minister Thaksin Shinawatra has decided to leave the country without fighting corruption charges against him in court.

The street protests have been aimed partly at Thaksin, seen as the power behind the Samak government.

In a bid to shore up its popularity among urban voters, the government introduced stimulus measures in July for six months, including a cut in consumption tax for petrol, free bus and train rides, and reduced power and water charges.

Adding to the beneficial effects of these measures, world oil prices have fallen sharply in recent weeks.

Finance Minister Surapong Suebwonglee, who has tried to revive consumer confidence as soaring inflation curbed Thais' purchasing power, voiced disapproval of the Bank of Thailand's decision to raise interest rates in July to tackle inflation.

That has led to a rift between the government and central bank over how to tackle inflation, which hit a 10-year high of 9.2 percent in July.

LATIN AMERICAN MARKETS: Commodity Stocks Lift Brazil; Mexico Ticks Lower

By Carla Mozee

Brazilian equities were pulled higher by commodity-related stocks Wednesday, while Mexican stocks edged lower with word from its largest trading partner that retail spending sputtered last month.

Brazil's Bovespa rose 1.5% to 55,326.35. The index is on track to break a four-session losing streak.

Among the strongest price performers of the session were mining giant Companhia Vale do Rio Doce (RIO) and state-run oil firm Petroleo Brasileiro ( PBR).

Vale was up 4.7%, its biggest jump in nearly two weeks. Petrobras shares gained 4.5%. Together, shares of Petrobras and Vale comprise about 24% of Bovespa.

Investment firm Bradespar, one of the controlling shareholders of Vale and the equity arm of Banco Bradesco (BBD), surged 4.5%. Bradespar's shares have declined about 14% since July 31.

The recent pullback in resource prices have weighed on the Brazilian market heavyweights. Vale shares had lost 5.9% over the previous three sessions, and Petrobras shares had lost 3.4% during the same period.

Also, shares of fuel distributor Ultrapar (UGP) picked up 2.6% and steelmaker Companhia Siderurgica Nacional (SID) rose 3.8%.

Resource stocks found their footing Wednesday as crude-oil rose for the first day in four, up around $115 a barrel after the U.S. government reported that supplies for crude, gasoline and distillates fell last week.

Meanwhile, prices for silver rose to above $14.51 an ounce, and copper futures climbed 1.6% to $3.28 a pound. Gold futures jumped nearly 2.1% to $831.50 an ounce in the wake of an 8-day losing streak.

The Reuters/Jefferies CRB Index, (CRB), a benchmark gauging the prices of major commodities, climbed 2%.

Wednesday, August 6, 2008

UPDATE: CML: UK House Purchase Loans Down 44% On Yr In May

UPDATE: CML: UK House Purchase Loans Down 44% On Yr In May

(Adds details, background.)

LONDON (Dow Jones)--U.K. lending for house purchases increased 2% in May but was substantially lower on the year as the housing market continued to suffer from the credit crisis and concerns about the economic outlook, data from the Council of Mortgage Lenders showed Tuesday.

Loans for house purchase totaled GBP7.9 billion in May, up from GBP7.7 billion in April but down from GBP14.2 billion in May last year, the CML said. The number of mortgages that were completed increased 4% on the month to 52,700, but that was also 44% weaker than in May 2007.

Gross lending fell 6% on the month and 22% on the year to GBP24.5 billion, marking its seventh consecutive monthly drop.

There was a 14% decline in remortgaging loans in May to 71,000, representing a 23% drop on the year, it said.

"Lending levels continue to be lower than last year and any recovery is still some way away, with little sign of the special liquidity scheme increasing the flow of funds to the industry or lowering the cost of funds as hoped," CML Director General Michael Coogan said in a statement.

The Bank of England launched a facility in April to allow banks to swap around GBP50 billion of mortgage-backed and other securities for U.K. treasury bills in an effort to improve the liquidity of the banking system and increase confidence in financial markets.

Tuesday, August 5, 2008

New market service for Managed Funds, ETFs and Structured Products

The new service for Managed Funds, ETFs and Structured Products is aimed at domestic and international product issuers that provide investment products for both retail and institutional investors but who have not, traditionally, been provided with a dedicated operating framework within the exchange-traded environment.

A new rules framework, called the AQUA Rules, will support the listing of these products on ASX. The AQUA Rules expand the range of ASX services beyond equities, A-REITS (listed property trusts), listed investment companies and warrants, all of which are listed under either the ASX Equity Listing Rules or the ASX Warrant Listing Rules.

The proposed AQUA Rules are subject to the non-disallowance process under the Corporations Act.

More information on the new market service released today can be found on the following links:

Monday, August 4, 2008

Latest Stock Market News

London shares outlook - Easier after NY falls; bank earnings, interest rates key


LONDON (Thomson Financial) - UK blue chips are expected to open lower Monday following pre-weekend falls on Wall Street, with further earnings reports from UK banks, kicking off today with HSBC, and global interest rate decisions to be the main focus of attention this week.

Spread bettors IG Index expect the FTSE 100 index to open around 8 points lower at 5,346, after closing 57.2 points lower Friday at 5,354.7.

Pre-weekend on Wall Street, the DJIA closed 51.70 points weaker at 11,326.32, while the broader S&P 500 index fell 7.07 points to 1,260.31, and the Nasdaq Composite lost 14.59 points at 2,310.96.

Wall Street retreated after readings on U.S. jobs and manufacturing -- the first reports for the third quarter -- indicated that businesses and workers still face a tough economy.

Asian markets were lower today, with Japan's Nikkei 225 index down 133.53 points at 12,961.063 at midday, while Hong Kong's Hang Seng ended the morning 202.97 points weaker at 22,659.63.

World Stock Markets Rally

LONDON — Asian stocks surged, Europe extended its gains and Wall Street was poised to rally once more Wednesday amid a growing belief that the worst of the credit crisis is over.

In Europe, share prices rose for banks such as UBS, which announced it was issuing new shares to help bolster its balance sheet after another massive write-down linked to bad U.S. mortgages. But automakers lagged on weak U.S. sales data for March, as well as a broker downgrade for Daimler.

In the U.K., the FTSE 100 rose 0.22 percent at 5,865.30, while Germany's DAX gained 0.65 percent at 6,763.77. France's CAC 40 climbed 0.68 percent to 4899.16.

Shares of UBS rose 3.27 percent, while Barclays PLC jumped 3.39 percent and Royal Bank of Scotland added 2.84 percent.

In Tokyo the Nikkei 225 index rose 4.2 percent to 13,189.4. Hong Kong's Hang Seng Index climbed 3.2 percent to 23,872.4.

Sunday, August 3, 2008

FTSE falls on US data, miners; British Energy dips


* FTSE 100 1.1 pct lower after U.S. data

* Miners fall as metal prices slip; crude rises

* Kingfisher rises after sale of Castorama Italy business

* British Energy down as EDF walks away from bid

By Michael Taylor

LONDON, Aug 1 (Reuters) - Britain's benchmark share index extended losses to fall by more than 1 percent on Friday as U.S. jobs data weighed, while mining stocks tracked metal prices lower and British Energy (BGY.L: Quote, Profile, Research) slipped after a takeover blow.

The FTSE 100 .FTSE ended down 57.2 points, or 1.1 percent, at 5,354.7 and is 17 percent lower for the year to date.

Across the Atlantic, U.S. shares fell to weigh on UK sentiment following GM's (GM.N: Quote, Profile, Research) big loss, which added to worries about consumer spending, and U.S. employment data.

Friday, August 1, 2008

US STOCKS-Wall Street dips on GM loss, oil, jobs data


* Oil rises on tension about Iran's nuclear work

* Hefty loss at GM adds to U.S. auto sector woes

* Biogen sinks biotechs, pulls down Nasdaq

* Dow down 0.5 percent; Nasdaq, S&P off about 0.6 pct (Updates to close, changes byline)

By Steven C. Johnson

NEW YORK, Aug 1 (Reuters) - U.S. stocks fell on Friday as a $15.5 billion quarterly loss from General Motors (GM.N: Quote, Profile, Research) and a rise in oil prices added to fears the economy could slip into recession and concerns about corporate earnings.

A government report showing U.S. employers cut jobs for the seventh straight month in July added to market worries, though the decline in payrolls was not as severe as had been feared. The report also showed the jobless rate jumped to its highest level in four years. For more see [ID:nN01429062].

General Motors' (GM.N: Quote, Profile, Research) second-quarter loss was the latest example of how rising oil prices are hurting consumer spending. Its shares slumped 7.6 percent to $10.23 and weighed on the Dow and S&P.[ID:nN01288721].

Sliding global metal prices and weak manufacturing data around the world knocked the shares of aluminum maker Alcoa (AA.N: Quote, Profile, Research) nearly 5 percent lower. Shares of Caterpillar (CAT.N: Quote, Profile, Research), the mining and heavy equipment maker, fell 2 percent. The two were the top drags on the Dow.