Stock Market Update - Thursday, September 9, 2010 Cautious but Positive Bullish Outlook

Stock Market Update
Thursday, September 9, 2010


Latest News Headlines:

Dow Jones	10,415.24	+28.23
S&P 500	1,104.18	+5.31
Nasdaq	2,236.19	+7.32

US Stocks End Up Modestly on Low Volume
Investors tempered their enthusiasm over the latest round of economic data, paring morning gains to advance modestly in light trading.

US Dollar Gaines
As the US Dollar rises to resistance, the S&P 500 is moving sideways, just a couple of points below its session high. The steady crawl has kept intact the solid gains of the stock market's underlying sectors. Though stocks remain in strong shape, commodities have come down. As a result, the CRB Commodity Index is now flat. Oil prices have had their gains more than halved so that the commodity now trades at $74.70 per barrel.


Oversupply Of LCD-TVs to US Market
Shipments of large liquid-crystal display panels in the first half of the year vastly exceeded sales of televisions, monitors and notebook computers in which they are used, according to iSuppli Corp., adding to a glut of inventory that has hurt LCD-panel prices.

Manufacturers of LCDs boosted output from last year, anticipating stronger demand for flat-screen TVs ahead of the World Cup soccer tournament. But retail inventories have been rising as consumers rein in purchases amid economic uncertainty. LCD-TV makers have been slashing their production targets, adding to price pressures for panel makers.

ISuppli on Thursday said that LCD-TV panel shipments were 46.8 million in the first quarter, while LCD-TV set shipments were just 37.6 million, representing excess supply of nearly 25%. For the second quarter, the gap widened to 36% on shipments of 52.9 million and 38.7 million, respectively.

Sweta Dash of iSuppli said the inventory increases are "raising concerns throughout the display supply chain-from panel suppliers to contract manufacturers and brands, to retailers."

A significant cut in orders during July made the situation worse. Dash noted that prices for large LCD panels fell in July and August and are expected to do so again this month. Though prices for LCD-TV sets were up in July, they are expected to be down for August and September amid promotions to attract consumers, adding to pressures on suppliers.


IMF Chief Economist: Advanced Countries' Output 'Too Tepid'
The International Monetary Fund's chief economist on Thursday said output in advanced countries, such as the U.S., is "too tepid" to reduce unemployment rapidly.

IMF Chief Economist Olivier Blanchard fears unemployment could become a "structural problem," and is urging world policy makers to act swiftly.

"We have to use fiscal and monetary policies to support as strong an output recovery as we can: Output growth is the single most important determinant of employment growth," Blanchard said in an interview with an IMF publication.

Many advanced economies need "credible medium-term fiscal consolidation," as opposed to a "fiscal noose," Blanchard said. He refuted the notion that fiscal stimulus has been exhausted.

According to Blanchard, the odds of finding a job decline the longer a person is jobless. In the U.S., a worker who is jobless for more than six months has less than a one-in-10 chance of finding employment in the following month.

Overall, the U.S. reported that is has lost roughly 8 million jobs since the recession began in December 2007; and the latest monthly Labor Department report showed the jobless rate edged up slightly in August from 9.5% to 9.6%. While the report was generally better than expected, it still was not strong enough to signal major improvement in the job market.

"If we can reduce the uncertainty about where the economy is heading, companies will be less inclined to wait and see, and will respond to increases in sales by hiring again," he added.

The economist suggested implementing tailored measures that assist underwater mortgage holders and measures that increase incentives for banks to lend--whereas both could have positive impacts on output. However, similar U.S. policies already launched have been deemed a failure by many critics, including some supporters, of the Obama administration.

Blanchard, looking at potential future results and not focusing solely on those U.S. policies, said "if fiscal stimulus helps reduce unemployment, and thus avoid an increase in structural unemployment--it may actually largely pay for itself, and lead to only a small increase in debt, relative to the alternative of doing nothing."

Blanchard's comments come ahead of a joint conference to be held Monday between the IMF and the United Nations' International Labour Organization, which is slated to assess how to acquire sustained growth and employment worldwide.



US Stocks Gain Led By Financials, As Jobs, Trade Data Improve
U.S. stocks climbed Thursday as encouraging drops in weekly jobless claims and an improved reading on the U.S. trade deficit eased concerns about a slowdown in the economic recovery

The Dow Jones Industrial Average squeaked back into positive territory for the year and the Standard & Poor's 500-share index hit a one-month high, as the government said the number of people filing for unemployment benefits dropped and the U.S. trade deficit narrowed.

The Dow Jones Industrial Average gained 72 points, or 0.7% to 10460, and is now up 0.3% for 2010. The Nasdaq Composite gained 0.8% to 2246, while the Standard & Poor's 500-share index rose 1% to 1109.

Both data points came in better than had been expected and helped fuel broad gains, particularly in financial stocks, as the data assuaged worries about the speed of the economic recovery. All three indexes climbed barely into positive territory for the week.

Initial unemployment claims fell by more than expected, declining 27,000 to 451,000 in the week ended Sept. 4. Separately, the U.S. trade deficit contracted sharply in July, posting its biggest drop in 17 months.

Financials led blue chips higher, fueled by hopes that international regulators meeting in Switzerland this weekend may set less onerous restrictions on how much capital banks must hold. Bank of America gained 3.1%, while J.P. Morgan Chase rose 2.7% and American Express climbed 2.4%.

"Today the speculation is the capital requirements coming out of Basel this weekend could potentially be less severe than initially thought," said Jesse Cole, head of trading at Merlin Securities.

The dollar strengthened against the euro, but weakened against the yen. The euro was trading recently at $1.2718, up from $1.2715 late Wednesday in New York. Demand for Treasurys slipped, pushing the yield on the 10-year note up to 2.73%. Crude-oil prices rose above $75 a barrel, while gold futures declined.

Among stocks in focus, Goldman Sachs Group rose 1.6% after the U.K.'s Financial Services Authority said that the firm agreed to pay a fine of GBP17.5 million for failing to make disclosures about trader Fabrice Tourre.

Software company Adobe Systems jumped 12% after Apple said it has relaxed restrictions on applications developers for its iPhones and iPads. Apple had previously banned Adobe's Flash products from its mobile devices. Shares of Apple gained 1.3%.


Jobless Claims in US Decreased 27,000 to 451,000 Last Week
451,000 new jobless claims were filed last week, but dropped by 27,000 in the week ended Sept. 4, Labor Department figures showed in Washington.

US Petroleum Stockpiles Hit Fresh 27-Year High - Inventories Fell
U.S. crude and distillate inventories fell last week, according to data released Thursday by the U.S. Department of Energy.

Crude oil stockpiles declined by 1.85 million barrels to 359.9 million barrels for the week ended Sept. 3, bucking estimates indicating a 1-million barrel build. In its weekly report, the American Petroleum Institute, an industry group, data showed that stocks fell by 7.3 million barrels last week.

The news of the surprise crude data was offset by EIA data showing total U.S. petroleum stockpiles hit a fresh 27-year high. Investors slightly pared back early gains on the futures market. Crude oil contracts for October were recently up 1.2% at $75.57 a barrel. October contracts for the benchmark reformulated regular gasoline blendstock are up 1% at $1.9590 a gallon and heating oil is up 0.9% at $2.0998 a gallon.

Inventories of crude and petroleum products remain above their five-year range. Demand for gasoline was lackluster during the peak summer driving season, which ended with Monday's holiday. Now refiners' hopes are turning to the distillate markets ahead of the winter heating season.

Gasoline stockpiles declined 243,000 barrels to 225.2 million barrels, the department's Energy Information Administration said in its weekly report versus the 800,000-barrel drop forecasted in a Dow Jones Newswires survey of 15 analysts.

Distillate stocks, which include heating oil and diesel fuel, fell by 388,000 barrels to 174.8 million barrels versus estimates calling for an increase of 500,000 barrels. Refining capacity utilization rose by 1.2 percentage points to 88.2% versus expectations for a 0.3-percentage-point drop.

API reported that last week gasoline inventories rose by 654,000 barrels and distillates added 1.3 million barrels. The industry group showed that refinery utilization rose 1.4 percentage points to 86.2%.

U.S. Oil Inventories for week ended Sept. 3:
Crude Distillates Gasoline Refinery Use
EIA data: -1.9 -0.4 -0.2 +1.2
Forecast: +1.0 +0.5 -0.8 -0.3

Figures are in millions of barrels, except for refining use, which is reported in percentage points. Forecasts are the average of expectations in a Dow Jones Newswires survey of analysts earlier in the week.


US Natural Gas Futures Decline As Storage Build Meets Expectations

Natural gas futures fell Thursday after the U.S. government reported a build in gas inventories in line with analysts' expectations.

Natural gas for October delivery on the New York Mercantile Exchange recently traded 6.8 cents, or 1.78%, lower at $3.746 per million British thermal units. Futures fell as low as $3.735/MMBtu after the report.

The U.S. Energy Information Administration reported Thursday gas inventories grew by 58 billion cubic feet last week. Analysts and traders surveyed by Dow Jones Newswires were expecting a 58-bcf build.

Gas in U.S. storage for the week ended Sept. 3 stood at 3.164 trillion cubic feet, 5.5% above the five-year average and 6.4% below last year. The storage estimate fell short of last year's 68-bcf build for the same week and the 61-bcf five-year average build for that week.

Storage builds this summer have been lower than average because of unusually hot weather, which increases the demand for natural gas-fired power to meet cooling needs for homes and businesses. Yet futures continue to come under pressure, particularly as the summer cooling season ends and winter heating demand remains months away.

"The market is in its seasonal shift, and that's why it is under pressure," Gene McGillian, an analyst with Tradition Energy said.

He said he expects prices to grind lower as storage injections grow in the coming weeks amid more moderate temperatures. At the same time, production from onshore shale gas formations remains strong and industrial gas demand remains tepid amid an uncertain economic recovery.



US Exports Near to Two-Year High
The US trade deficit was smaller than expected in July, figures have shown, as exports reached their highest level in almost two years.

The U.S. trade deficit contracted sharply in July as exports of airplanes surged and imports fell across the board. The U.S. deficit in international trade of goods and services narrowed by 14% to $42.78 billion from a downwardly revised $49.76 billion the month before, the Commerce Department said Thursday


US Stock Futures Up
U.S. stock futures climbed Thursday after weekly jobless claims fell by more than expected and the U.S. trade deficit posted its biggest drop in 17 months. Crude-oil prices rose above $75 a barrel, while gold futures also rose.


Canadian Market:

Canada Trade Deficit Widens C$2.74B In July
Canada July New House Prices +2.9% On Year
Canada Housing Starts At 183,300 Annual Rate In Aug.

The stock market was little-changed in mixed trading at midday Thursday as continued profit-taking in the gold sector was weighing down the key index despite a buoyant bank group.

At 11:45 a.m. EDT (1545 GMT), the S&P/TSX Composite Index was down 4.79 points, or 0.04%, at 12037.49. However, advancers were outpacing decliners 683 to 600. Trading volume was 185.8 million shares. The S&P/TSX 60 Index was flat at 701.53 points.

Canada International Reserves Down $188M In Sept. 8 Week
Canada's official international reserves decreased $188 million in the week ended Sept. 8, the Bank of Canada reported. The Sept. 8 official international reserves totaled $57.737 billion, down from $57.925 billion at Aug. 31. The latest reserves included:

-U.S. dollars, $27.633 billion;
-other foreign currencies, $18.442 billion;
-gold, $137 million;
-special drawing rights, $8.888 billion;
-reserve position in the International Monetary Fund, $2.637 billion.
All reserve figures are reported in U.S. funds.

Canada Bonds End Sharply Lower As Wed Selloff Persists
Canadian bonds ended sharply lower again Thursday as the selloff triggered by the Bank of Canada's interest rate increase Wednesday persisted and U.S. Treasurys also slumped.

Canada's two-year bond yield was at 1.471%, up from 1.407% late Tuesday. The 10-year bond yielded 2.979%, up from 2.922%. Bond yields rise as prices fall.

2.00s 2012 101.044 dn 0.126 1.471% vs 1.407%
3.00s 2015 103.666 dn 0.315 2.244% vs 2.195%
3.50s 2020 104.322 dn 0.591 2.979% vs 2.922%
5.00s 2037 124.560 dn 0.776 3.566% vs 3.529%
10-Yr Spread to U.S. +22 vs +27

Canadian data were generally soft Thursday, with the July trade deficit coming in much larger than expected, but the market largely ignored the data. Instead, it continued to sell off in sympathy with U.S. Treasurys and on the residual effects of the Bank of Canada's decision Wednesday to raise its overnight target rate by 25 basis points and issue a statement that did not exclude the possibility of further rate tightening.


Toronto Indexes, Volume; 3 PM EDT Composite Down 31.26

3 PM EDT Toronto Indexes

S&P/TSX Composite 12011.00 off 31.26 or 0.3%
S&P/TSX 60 Index 699.81 off 1.69 or 0.2%
Financials 175.46 up 1.46 or 0.8%
Materials 371.11 off 7.51 or 2.0%
Energy 275.54 up 0.98 or 0.4%
Industrials 102.83 off 0.65 or 0.6%
IT 27.11 up 0.18 or 0.7%

Volume Thursday Wednesday
2-3 40.8M 67.6M
9:30-3 325.9M 370.0M


South American Markets:

Mexico:
Mexico's August CPI Rises Less Than Expected

Mexico's consumer price index rose slightly less than expected last month while pushing the index's annual increase higher for the first time since March, as higher costs for eggs, gasoline and higher education offset price declines in tourism services and other goods.

The Bank of Mexico said Thursday that the consumer price index rose 0.28% in August from the previous month, pushing the rate of price increases for the past 12 months in the index up to 3.68% from 3.64% at the end of July. The rise was below the 0.31% median estimate in a Dow Jones Newswires survey of 14 economists.

After a series of tax increases brought about a spike in Mexico's CPI at the beginning of the year, the annual CPI fell steadily from March to July on lower agricultural prices and slack in the domestic economy. Economists have widely revised down their 2010 inflation forecasts as a result.

Despite last month's uptick, the annual headline rate of increases in prices measured by the index remains within the Bank of Mexico's comfort zone of between 2% and 4%, and is well below the central bank's forecast of 4.75%-5.25% for the end of the year.

Chile:
Chile Stocks Break 4,700 Points For 1st Time, On Local and US Econ Data.

A 6.1 earthquake struck South West of Concepcion, Chile today.


Venezuela:

Venezuela August Oil Output Rises To 2.31M Bbl/Day -OPEC

Venezuela's crude output last month was 2.31 million barrels a day, up slightly from July's figure of 2.29 million barrels a day, the Organization of Petroleum Exporting Countries said Thursday in its monthly oil market report.

The South American country's oil production has risen for three straight months, according to the OPEC data. Venezuela's average output was 2.31 million barrels a day in 2009, down from 2.49 million barrels a day in 2008.

Part of the reason for the decline over the past couple of years is OPEC-agreed cuts that are aimed at reducing global supply.

Ecuador:

Ecuador Cuts Oriente Crude Differential $2.841/Bbl For Sept

Petroecuador, Ecuador's state-owned oil company, generally exports 183,612 barrels per day of Oriente crude and 58,645 barrels per day of Napo crude. The crude oil goes primarily to the U.S., the Caribbean and Asia.

Petroecuador increased the price of its Oriente crude oil by lowering its price differential by $2.841 a barrel beginning Sept. 1.

In a statement, Petroecuador said Thursday that under the new price differential, it is offering Oriente crude at the West Texas Intermediate price minus $4.129 a barrel. Until August 31, Petroecuador offered its oil at WTI minus $6.97.

The new price applies to all contracts, except those for the Far East, where the price will be calculated relative to Oman crude, which serves as a benchmark for oil contracts in Asia.

Petroecuador also exports Napo crude from Occidental Petroleum Co.'s (OXY) former fields, seized by the Ecuadorian government on May 15, 2006. For Napo crude, Petroecuador is lowering the forecasted price differential $0.80 a barrel. For September, Petroecuador is offering Napo crude at WTI minus $10.026 a barrel.

Argentina:

Argentina Rules Out IMF Economic Review
Argentina continues to oppose a review of its economic policies by the International Monetary Fund, according to two government ministers.

Cabinet Chief Anibal Fernandez was quoted as saying by government news agency Telam that Argentina won't submit to a so-called Article IV surveillance consultation by the IMF.

"That is why we paid everything we owed to the fund," said Fernandez, who spoke a day after the Financial Times quoted an unnamed government source as saying the administration of President Cristina Fernandez was prepared to accept an IMF review.

Under the IMF's articles of agreement, a member nation is required to periodically provide the fund with information about its exchange rate and economic policies. Argentina has refused to submit to an IMF consultation since 2006, the same year that former president Nestor Kirchner paid off ahead of schedule about $9.8 billion in debt owed to the IMF.

"The long-standing refusal to allow the surveillance mission is driven mostly by political considerations born out of concern that a surveillance report would very likely be critical of the policy mix and would take issue with the lack of credibility of some official statistics," Goldman Sachs economist Alberto Ramos said in a note.

President Fernandez's administration has exerted its influence over the central bank and pursued an economic program based on high levels of government spending, price controls, and direct intervention in different sectors of the economy.

At the same time, the credibility of Argentina's national statistics agency has been called into question ever since Kirchner, husband of the incumbent president, replaced key staff with close political allies in late 2007. Private sector economists widely believe that official data significantly under report inflation while overstating economic growth.

The Kirchners have blamed IMF policies for contributing to the country's economic collapse in 2001 and 2002 that saw Argentina default on about $100 billion in debt held by private sector creditors. "Argentina did very badly when the fund intervened in our policies," Economy Minister Amado Boudou told reporters at the sidelines of an event Thursday when asked about an IMF consultation. "Argentines know what the monitoring of the economy by the IMF has meant for them."

An IMF consultation would be a small step toward renegotiating the more than $7 billion in debt Argentina owes to developed countries grouped together in the Paris Club of creditor nations, which includes Germany, Italy, Japan, the U.S. and Netherlands.

Argentina's government can make a one-time payment to the Paris Club to settle the debt, or it can ask to reschedule payments. Paris Club rules, however, stipulate that before debt can be rescheduled, the borrower must secure a loan program with the IMF.

Settling that debt could reopen Argentina's access to funding from the export credit agencies of Paris Club members. The access has been cut off since the default. Cabinet chief Fernandez, who isn't related to the president, said the government remains committed to reaching an agreement with the Paris Club. "The objective is to resolve the Paris Club issue and we'll have to find an alternative that is of interest" to all parties, he said.


European Markets:

European markets are moving higher. The Stoxx Europe 600 index rose 0.9% after Ireland's government successfully conducted a bond auction that saw relatively strong international demand.

The Bank of England left its key lending rate unchanged at a record low 0.5% and left its 200 billion pound ($309 billion) asset-purchase program on pause. Both moves were widely expected.

United Kingdom:

Bullish comments on the European recovery helped Britain's top shares rebounded on Thursday as investors bought such cyclical stocks as banks and commodities, while the Bank of England held interest rates at a record low.

The Bank of England kept interest rates at 0.5 percent for the 18th month in a row and announced no new quantitative easing purchases, in a widely expected decision.

By 1117 GMT, the FTSE 100 .FTSE was up 47.00 points, or 0.9 percent at 5,476.74, having bounced off the session low of 5,412.48.

In London, the Bank of England left interest rates unchanged at 0.5% as expected. The U.K. FTSE 100 index rose 1.2% to end at 5,494.16 points.

London stocks were boosted by gains for miners and banks, along with a jump for Arm Holdings, which rallied 4% after it unveiled a new processor. Barclays shot up 5% after several sessions of declines. Shares of Lloyds Banking Group rose 3.3% after Barclays Capital upgraded the bank to equal-weight from underweight. Among mining stocks, Xstrata advanced 3.3% and Vedanta Resources gained 3.4%.

There was more upbeat sentiment emanating from Europe, where concerns have grown in recent days over the health of the continent's recovery, which has been hampering banks.

The euro zone is on the brink of a sustainable recovery and the European Central Bank is likely to discuss removing some support measures at its December meeting.

France:
The CAC 40 index rose 1.2% to 3,722.15. Shares of PSA Peugeot Citroen advanced 4.6% and those of Renault gained 3.2%.

Italy:
Italy's Atlantia SpA (ATL.MI) has priced its two-part bond via lead managers Banca IMI SpA, Banco Bilbao Vizcaya Argentaria SA, Credit Agricole CIB, Goldman Sachs International, Mediobanca SpA, Natixis and UniCredit SpA, one of the banks said Thursday.

Amount: EUR1 billion, Maturity: Sept. 18, 2017, 3.375%

Germany:
In Germany, car makers Daimler AG added 2.6% on Xetra, as rival BMW AG also rose after reporting an increase in August car sales. Volkswagen AG advanced 2.5%.

The auto sector boosted the German DAX 30 index, which ended up 0.9% at 6,221.52 points. In Germany, Commerzbank rose 2.6% and Deutsche Bank gained 2.1%. In Paris, Credit Agricole and Societe Generale also posted strong gains.

Bucking the positive trend, insurer AXA fell 0.8% after Australia's competition watchdog rejected a takeover bid by National Bank of Australia for AXA Asia Pacific holdings, which is majority owned by the French group.

Banks Face 50% Increase In Tier 1 Capital Requirements

International banking regulators, known as the Basel Committee, are expected to raise the minimum Tier 1 capital ratio to 6 percent (from 4 percent) according to the BdB banking association in Germany. German banks may need $141 billion under Basel III.

Many leading banks already hold Tier 1 capital in excess of 6 percent, but others would be forced to raise fresh capital. The revised standards are likely to be phased in over several years, but shrinking credit could spark a new deflationary spiral.

Germany's 10 biggest banks may need 105 billion euros ($141 billion) of additional capital under a revamp of banking rules designed to prevent future financial crises, the country's banking association said.

Regulators are bumping up the amount of capital banks need to hold in an effort to ensure lenders have an array of loss-absorbing backstops that can be used in case of a downturn.

Buffers for capital conservation of an additional 2 percent and a countercyclical capital buffer of 2 percent more are also likely to be applied, the BdB said on Monday.

The Tier 1 ratio and each of the buffers probably would be composed of 80 percent of top quality or "core Tier 1" capital, which consists of equity capital and retained earnings, BdB said.

Many leading banks already hold Tier 1 capital of 10 percent or more.

But many lenders also face big hurdles getting ready for the new rules and needed time to adjust, particularly as politicians were also weighing separate measures such as a bank levy, a financial transaction tax and changes to the law on corporate restructuring, BdB Deputy General Manager Hans-Joachim Massenberg told journalists.

"We have a lot of banks that have no access to capital markets and who need time if they have to build their capital base only through retained profit," Massenberg said.

The discussion among regulators was centering on a transition period of six to eight years to allow banks to adapt to the new rules, which was the "absolute minimum," the BdB said.

The BdB's members would prefer to have eight to 10 years to fulfill the quantitative capital requirements and more than 10 years to transform the quality of their capital structure to meet tougher Basel Committee standards.

Germany was the only member of the Basel Committee of banking supervisors and central bankers that refused to endorse a draft of the rules in July, saying it did not take into account the special needs of its state-backed banking sector.

But the country with Europe's biggest economy was not expected to stand in the way of a final accord on the rules, which banking regulators around the world are set to adopt.

"We don't expect there will be a German veto," said BdB regulatory specialist Dirk Jaeger.

Banking regulators and central bank officials from across the world meet on Tuesday to finalize the Basel III package, which could wrap up in time for a G20 meeting in November and come into force at the end of 2012.

Switzerland:
In Switzerland, shares of chocolate maker Barry Callebaut rallied 6% on news it will be the key supplier of cocoa products and industrial chocolate worldwide for Kraft Foods Inc.

Greece:
Greek Prime Minister George Papandreou is expected to offer some concessions to groups hit hard by austerity, including an assistance package for vulnerable households, certain private-sector funding subsidies and a cut in corporate taxes.


Asian Pacific Markets:

Tokyo Nikkei Stock 9098.39 73.79 0.82 -13.73 Close
Nikkei 300 167.97 1.16 0.70 -9.23 Close
Hong Kong Hang Seng 21167.27 78.41 0.37 -3.22 Close
Sydney S&P/ASX 200 4582.24 45.08 0.99 -5.92 Close
All Ord 4621.29 43.00 0.94 -5.35 Close
DJ Pacific Pan-Asia 125.64 1.06 0.85 +2.10 Close
Bangkok SET 921.49 -2.39 -0.26 +25.45 Close
Mumbai Sensitive 18799.66 132.95 0.71 +7.64 Close
Jakarta JSX Comp 3230.89 13.74 0.43 +27.48 Sep 7
Kuala L Composite 1437.78 3.64 0.25 +12.96 Close
Manila PSE 3902.56 97.83 2.57 +27.84 Close
Saudi Arabia TASI 6306.33 36.97 0.59 +3.01 Sep 6
Seoul Kospi 1784.36 5.14 0.29 +6.04 Close
China DJ CBN 600 24947.25 -429.08 -1.69 -14.13 Close
Shanghai Composite 2656.35 -38.94 -1.44 -18.94 Close
Shanghai A Share 2783.10 -40.82 -1.45 -19.04 Close
Shanghai B Share 256.79 -3.36 -1.29 +1.74 Close
Shenzhen A Share 1235.41 -17.17 -1.37 -2.05 Close
Shenzhen B Share 705.72 -8.05 -1.13 +12.74 Close
Singapore Straits T 3022.28 10.86 0.36 +4.30 Close
Taipei Weighted 7835.54 -15.77 -0.20 -4.31 Close
Wellington NZSX-50 3151.77 -9.41 -0.30 -2.43 Close

Commodities
Crude Oil	74.95	+ 0.38%
Natural Gas	3.71	- 2.73%
Gasoline	1.95	+ 0.65%
Heating Oil	2.09	-
Gold	1246.48	- 0.68%
Silver	19.80	- 0.50%
Copper	3.42	- 2.06%
Quotes delayed 15 min.		» Add to your site

World markets Snapshot:

Shanghai 2,656.35 -38.94 (-1.44%)
Nikkei 225 9,098.39 +73.79 (0.82%)
Hang Seng Index 21,167.27 +78.41 (0.37%)
TSEC 7,835.54 -15.77 (-0.20%)
FTSE 100 5,488.23 +58.49 (1.08%)
DJ EURO STOXX 50 2,778.08 +25.19 (0.92%)
CAC 40 3,716.01 +38.80 (1.06%)
S&P TSX 12,047.78 +5.52 (0.05%)
S&P/ASX 200 4,582.20 +45.00 (0.99%)
BSE Sensex 18,799.66 +132.95 (0.71%)

Wednesday Market Summary:

Stocks:

Stocks bounced back from an afternoon swoon after the Federal Reserve's latest report on the U.S. economy, and after President Obama announced new initiatives aimed at businesses. Joseph Battipaglia, chief market strategist of the private client group at Stifel Nicolaus, said market excitement was muted in response to the White House's latest attempts to jump-start the economy, which includes a mix of tax cuts and injections to rebuild outdated infrastructure across the U.S. "The market view is that this more about politics than about true economics," he said.

Treasurys:

Treasurys fell as a deluge of government and private debt supply overshadowed a strong 10-year note sale and a soft reading from the latest Federal Reserve economic survey. Demand for safe assets also faded as well-bid government bond auctions from the Portuguese government eased worries about the euro zone's banking system and sovereign debt. "There are no new scares out of Europe, and investors are back to look at auction and domestic news," said Thomas Roth, executive director in the U.S. government bond trading group at Mitsubishi UFJ Securities.

Forex:

The dollar and yen fell against the euro after a euro-zone government debt auction soothed investor nerves, leading them into higher-yielding currencies. The successful auction of Portuguese government debt overshadowed concerns about the credibility of European bank stress tests. The Canadian dollar, meanwhile, gained sharply against the greenback after the Bank of Canada raised interest rates.

Thursday's US Economic Calendar:

8:30 a.m.
Jul U.S. International Trade in Goods & Services, Deficit (previous -47B), Exports (previous 150.45B), Exports Percent Change (previous -1.3%), Imports (previous 200.35B), Imports Percent Change (previous +3.1%)

8:30 a.m.
Sep 4 Unemployment Insurance Weekly Claims Report - Initial Claims, Weekly Jobless Claims (expected 470K), Weekly Jobless Claims Net Change (expected -2K), Cont Jobless Claims (prior week) (previous 4456000), Cont Jobless Claims Net Chg (prior week) (previous -23K)

10:00 a.m.
Aug 28 DJ-BTMU U.S. Business Barometer, DJ-BTMU Business Barometer (previous 0), DJ-BTMU Business Barometer (52 Wk) (previous 4.9)

10:30 a.m.
Sep 3 EIA Weekly Natural Gas Storage Report, Total Working Gas in Storage (previous 3106B), Total Working Gas in Storage (Net Change) (previous +54B)

11:00 a.m.
Sep 3 EIA Weekly Petroleum Status Report, Crude Oil Stocks (previous 361.71M), Crude Oil Stocks (Net Change) (expected +300K), Gasoline Stocks (previous 225.41M), Gasoline Stocks (Net Change) (expected -600K), Distillate Stocks (previous 175.24M), Distillate Stocks (Net Change) (expected +400K), Refinery Usage (expected 86.8%)

4:30 p.m.
Sep 8 Foreign Central Bank Holdings, Foreign US Debt Holdings (previous 3.23T), US Foreign Agency Holdings (previous 817.49B), Foreign Treasury Holdings (previous 2.41T)

4:30 p.m.
Sep 8 Federal Discount Window Borrowings, Primary Credit Borrowings (previous 9M), Primary Credit Borrowings W/E Daily Avg (previous 13M), Discount Window Borrowings (previous 54.03B), Discount Window Borrowings W/E Daily Avg (previous 56.35B)

4:30 p.m.
Money Stock Measures