Stock Market Update - Tuesday, September 7, 2010 Outlook Cautious

Tuesday, September 7, 2010:

Latest News Headlines:

Dow Drops 107 Points on the Close

US stock losses steepened Tuesday, with Wall Street pulling an about-face after a four-session winning stretch. Financials fell the most as worries about European debt resurfaced. Stocks closed lower Tuesday as the Dow and the S&P 500 ended a four-session winning streak amid renewed concerns about the European banking sector and light post-holiday trading.

As a result of the uncertainty, investors shunned stocks in favor of "safe-haven assets" like Treasury notes and gold, with the widespread worry translating into a record high for the malleable metal. The major market indexes snapped their four-session winning streak, with the Dow Jones Industrial Average (DJIA) giving up triple digits by the close.

Dow Jones......10,340.69...-107.24...(-1.03%)
S&P 500..........1,091.84....-12.67...(-1.15%)
Nasdaq...........2,208.89....-24.86...(-1.11%)


The Federal Reserve Beige book and consumer credit releases will be closely eyed.

US Stock Indexes at 15:25 EDT/1925 GMT:

New York DJ Indus 10348.14 -99.79 -0.96 -0.77 Intraday
Nasdaq 2208.07 -25.68 -1.15 -2.69 Intraday
NYSE Comp 6961.20 -93.83 -1.33 -3.11 Intraday
S&P 500 1092.62 -11.89 -1.08 -2.02 Intraday
Russell 2000 631.12 -12.24 -1.90 +0.92 Intraday
DJ TSM 11391.99 -132.86 -1.15 -0.92 Intraday


U.S. Stocks Fall

U.S. stocks fall on concerns about European banks, German manufacturing data. The Dow Jones Industrial Average (DJIA) is headed for an opening loss of about 65 points this morning, while the S&P 500 Index is set to open about 7.4 points lower. With the US economic calendar devoid of reports, Wall Street was left with renewed European debt concerns.

According to the Wall Street Journal, European banks may harbor more risky debt than the recent round of stress tests revealed, reviving fears about the true fiscal health of the euro zone.

The Conference Boards says its August employment trends index fell to 96.7, down from July's revised figure of 97.4, first reported as 97.0, suggesting a slowing in hiring in coming months.

Wall Street signals weaker start for US stocks
Futures for the Dow Jones industrial average DJc1, the S&P 500 SPc1 and the Nasdaq 100 NDc1 fell 0.2 to 0.7 percent, pointing to a weaker start on Wall Street on Tuesday.

China wants to reduce tensions with the United States through quiet talk, not shouting matches, a top diplomat told White House advisers on Tuesday, aiming to pave the way for a visit by President Hu Jintao early next year.

Tropical Storm Hermine rolled into south Texas early Tuesday, bringing heavy rains and strong winds to an area battered by Hurricane Alex earlier this summer.


Crude Oil and Petroleum Products:

OIL FUTURES: Crude Settles Down
Crude futures settled lower Thursday, as concerns about the health of the global economy weighed on crude even as a refinery explosion in Mexico pushed oil products higher.

Light, sweet crude for October delivery settled down 51 cents, or 0.7%, at $74.09 a barrel on the New York Mercantile Exchange, after falling as low as $72.63 earlier in the session. Brent crude on the ICE futures exchange was recently up 73 cents at $77.60 a barrel.

Oil prices ventured lower early in the session as equities markets fell and the dollar rose against the euro. But crude losses narrowed later in the day after Mexico's government-owned oil company Petroleos Mexicanos, or Pemex, confirmed that an explosion occurred Tuesday at its Cadereyta refinery near the U.S. border.

Front-month October reformulated gasoline blendstock, or RBOB, settled 1.34 cents, or 0.7%, higher to $1.9329 a gallon. October heating oil rose 1.70 cents, or 0.8%, to $2.0743 a gallon.

U.S. commercial stockpiles of oil and oil products have risen to the highest levels in 27 years, and recent economic data haven't offered any signals that demand will grow fast enough to keep pace. Crude oil inventories are expected to rise by 300,000 barrels in data due Thursday from the Department of Energy, according to a survey conducted by Dow Jones Newswires. Gasoline inventories are seen falling by 600,000 barrels, while distillates, which include heating oil and diesel fuel, are expected to rise by 400,000 barrels.

US Natural Gas: Futures Settle 2.2% Lower At $3.852/MMBtu

Gold and Silver:
Gold futures finished at a record settlement, driven by similar factors--worries over Europe's banking system and the global recovery--that brought the yellow metal to all-time highs in June.

Nearby gold, for September delivery, ended $8.10 higher at $1,257.30 an ounce, besting its record settlement by a dime. The most actively traded contract, for December delivery, rose by $8.20, or 0.7%, to settle at $1,259.30 an ounce on the Comex division of the new York Mercantile Exchange.

Gold has rallied about 15% so far this year as concerns over the resilience of the economic rebound.

Settlements (ranges include open-outcry and electronic trading):

London PM Gold Fix: $1,256.75; previous PM $1,249.00
Spot gold at 1:41 p.m. ET: $1,257.50, up $8.60; Range: $1,245.00-$1,259.80

Dec gold $1,259.30, up $8.20; Range $1,246.40-$1,261.60
Dec silver $19.914, down 3.5 cents; Range $19.585-$20.045
Oct platinum $1,556.30, down $4.80; Range $1,546.30-$1,568.20
Dec palladium $523.20, down $8.25; Range $520.75-$533.00

==

The U.S. market was closed on Monday for a holiday. On Friday, the Dow Jones industrial average .DJI shot up 127.83 points, or 1.24 percent, to 10,447.93, marking a move back into the black for the year. The Standard & Poor's 500 Index .SPX gained 14.41 points, or 1.32 percent, to 1,104.51. The Nasdaq Composite Index .IXIC rose 33.74 points, or 1.53 percent, to 2,233.75.

The S&P 500 closed above 1,100 for the first time since Aug. 10. Momentum measures, including the moving average convergence-divergence, indicated the benchmark was poised for more gains.

World stock markets advanced modestly Monday as investors rode momentum from Friday. The US and Canadian Markets were closed for Labor Day holiday's.

Mon Sep 06 2010 Oil fell for a second day in New York on speculation that fuel demand will decline as the US summer peak consumption season ends and as crude and fuel inventories rose.

Canadian Market:

Toronto Indexes, Volume; 4:15 PM EDT Composite Down 42.94

4:15 PM EDT Toronto Indexes

S&P/TSX Composite 12101.98 off 42.94 or 0.4%
S&P/TSX 60 Index 705.13 off 2.90 or 0.4%
Financials 173.89 off 1.42 or 0.8%
Materials 382.36 up 1.93 or 0.5%
Energy 276.19 off 3.07 or 1.1%
Industrials 103.34 off 0.46 or 0.4%
IT 27.11 off 0.25 or 0.9%

Volume Tuesday Friday
3-4:15 67.8M 93.2M
9:30-4:15 376.9M 457.3M


Focus turns to Wednesday's policy announcement from the Bank of Canada. The market is mostly positioned for the Bank of Canada to announce its third-straight 25-basis-point rate increase, raising its overnight target rate to 1.00%.

Economists at CIBC are predicting the Bank of Canada will keep rates on hold for the remainder of 2010. Of the 10 economists at primary government securities dealers polled last week by Dow Jones, eight said they expect a 25-basis-point increase.

The financial sector pulled the stock market lower at midday Tuesday after reports suggested flaws in the European bank stress tests. The subsequent flight to safety hurt most equities but boosted gold prices. Gold shares were higher.

The Bank of Canada is the only central bank among the G7 group of industrialized countries to raise rates since the global financial crisis took hold two years ago.

At 11:45 a.m. EDT (1545 GMT), the S&P/TSX Composite Index was down 59.62 points, or 0.49%, at 12085.3. Decliners edged out advancers 655 to 614. Trading volume was 176.0 million shares. The S&P/TSX 60 Index was down 3.98 points, or 0.6%, to 704.05 points.

These are the exchange rates at 3:33 p.m. EDT (1933 GMT), 8:00 a.m. EDT (1200 GMT), and late Friday.

USD/CAD 1.0475 1.0419 1.0392
EUR/CAD 1.3297 1.3284 1.3401
CAD/JPY 80.00 80.46 81.25

For Canada's banks, an increasingly gloomy economic picture combined with regulatory uncertainty may soon sap the momentum they managed to sustain through their latest quarter.

Toronto Indexes, Volume; 11 AM EDT Composite Down 48.41

11 AM EDT Toronto Indexes

S&P/TSX Composite 12096.51 off 48.41 or 0.4%
S&P/TSX 60 Index 704.75 off 3.28 or 0.5%
Financials 173.10 off 2.21 or 1.3%
Materials 383.80 up 3.37 or 0.9%
Energy 276.50 off 2.76 or 1.0%
Industrials 103.42 off 0.38 or 0.4%
IT 27.23 off 0.13 or 0.5%

Volume
Tuesday Friday
10-11 68.5M 90.3M
9:30-11 135.7M 173.2M


The market was closed Monday for Labour Day.


South American Markets:

Buenos A MERVAL 2423.84 -14.09 -0.57 +4.44 Intraday
Caracas General 65301.34 267.95 0.41 +18.57 Intraday
Mexico C IPC 32451.72 -294.95 -0.90 +1.03 Intraday
Santiago IPSA 4594.65 -39.45 -0.85 +28.29 Intraday
Sao Paulo BOVESPA 66747.30 68.68 0.10 -2.68 Sep 6


Mexico:

Pemex Refinery Hit By Explosion In Northern Mexico

An explosion Tuesday morning shook a refinery in Mexico, near the U.S. border. The Cadereyta refinery, located in the state of Nuevo Leon, is owned by Mexican state oil company Petroleos Mexicanos.

Cadereyta processed 217,000 barrels a day of crude oil in 2009, accounting for close to 17% of Pemex's refining output that year. Pemex produced 1.47 million barrels a day of refined products at its six refineries in the first seven months of this year, including 445,000 barrels a day of gasoline.

The Nuevo Leon state Civil Protection agency said the explosion occurred just after 10:30 a.m. EDT at or near the Cadereyta refinery, which is around 22 miles east of the business capital of Monterrey.


Tropical Storm Hermine slams into far northeastern Mexico
Mexican authorities urged people to move to shelters while officials in Texas distributed sandbags and warned of flash floods as Tropical Storm Hermine strengthened and headed toward the northwestern Gulf coast on Monday.

Chile:

Chile Peso Ends Stronger As Participants Expect GDP Upgrade

The Chilean peso ended stronger against the dollar Tuesday, despite falling international copper prices and a weaker euro versus the greenback, as participants expect the central bank to increase its 2010 gross domestic product outlook.

The peso closed at CLP496.70 to the dollar, compared to Monday's close of CLP497.80, while trading in a range of CLP496.70 to CLP499.20.

The central bank expects gross domestic product to grow 4% to 5% on the year in 2010, but it is widely expected to revise the outlook upwardly when it releases its quarterly Monetary Policy Report on Wednesday.


Venezuela:

Venezuela's nationwide consumer price index registered a 1.6% increase in August, up slightly from July's 1.4% rate, but was in line with the government's new target range of 1% to 2% a month.

The August figure, released Tuesday by Venezuela's central bank, marks the third straight month of sub-2% inflation and is in stark contrast to April when a 5.2% rise sparked widespread fears of hyperinflation.

The trend toward slower inflation allowed the oil-rich nation's annual inflation rate through August to dip slightly under 30%, to 29.7%. Nonetheless, that figure is still the highest in the region and one of the highest in the world. Through the first eight months, Venezuelan inflation stands at 19.9%.

The August inflation rate in the capital city of Caracas, which some economists use as the inflation benchmark, saw a 1.4% increase on the month, after a 1.6% rate in July.

The sector that saw the biggest price increases nationwide last month was tobacco and alcohol, whose prices soared 4.1%. On the other end, prices for communications rose a mild 0.4% in August. No sectors showed decreases.

The government wants to maintain a 1% to 2% monthly inflation rate to ensure that annual inflation moves below 30% next year.

The government said credit for slowing inflation goes partially to a new foreign exchange system set up in June that aims to reduce speculation in foreign exchange markets. It also said increased state control of key sectors, which President Hugo Chavez has pushed for in his drive toward socialism, is reducing price gouging at the retail level.



European Markets:

London FTSE 100 5407.82 -31.37 -0.58 -0.09 Close
FTSE 250 10181.27 -59.14 -0.58 +9.39 Close
Frankfurt Xetra DAX 6117.89 -37.15 -0.60 +2.69 Close


Europe STOXX 600 259.76 -1.18 -0.45 +2.31 Close
STOXX 50 2531.46 -9.54 -0.38 -2.08 Close
EuroSTOXX50 2727.16 -26.44 -0.96 -8.02 Close
Amsterdam AEX 327.76 -2.77 -0.84 -2.26 Close
Athens ASE 1618.31 -55.09 -3.29 -26.31 Close
Brussels BEL-20 2538.91 -21.33 -0.83 +1.09 Close
Copenhagen OMXC20 407.65 0.17 0.04 +21.08 Close
Dublin ISEQ 2782.64 -24.47 -0.87 -6.46 Close
Helsinki OMX Helsinki 6771.04 0.51 0.01 +4.88 Close
Istanbul IMKB-100 60746.75 -354.21 -0.58 +15.00 Close
Jo-burg All Share 27665.29 -315.31 -1.13 -0.00 Close
Lisbon PSI General 2632.27 -17.17 -0.65 -9.30 Close
Madrid IBEX 35 10479.10 -143.60 -1.35 -12.24 Close
Milan FTSE MIB 20395.45 -265.46 -1.28 -12.27 Close
FTSE Italia 20946.24 -258.34 -1.22 -11.44 Close
Oslo OBX Stock 335.55 -3.36 -0.99 -1.11 Close
All-Share 408.75 -3.47 -0.84 -2.70 Close
Prague PX 1145.60 -16.40 -1.41 +2.53 Close
Russia RTS 1451.19 -2.28 -0.16 +0.46 Close
Vienna ATX 2464.15 -32.84 -1.32 -1.26 Close
Zurich Swiss Mkt 6360.20 -58.05 -0.90 -2.84 Close
Paris CAC40 3643.81 -40.92 -1.11 -7.43 Close


European shares slip on banking worries Sept. 7, 2010

European stocks closed lower Tuesday

The Stoxx Europe 600 banks index fell 1.3% to 217.92, as investors fretted about the enduring credibility of the EU-wide stress tests. In addition to the renewed banking concerns, Germany's economy showed signs of slowing as factory orders dropped in July.

Overall, the Stoxx Europe 600 index ended off 0.5% at 259.76. The U.K.'s FTSE 100 closed down 0.6% at 5407.82, Germany's DAX lost 0.6% to 6117.89 and France's CAC-40 finished 1.1% higher at 3643.81.

The Stoxx Europe 600 mining index finished 0.8% lower at 503.52, although this wasn't as severe a fall as was expected by some. Traders said the mining legislation is still at least 12 months away and that the global economic backdrop is more important at present.

UK Summary: London Shares End Down

FTSE 100 5407.82 -31.37 -0.53%
FTSE 250 10181.27 -59.14 -0.58%
DJ UK Smaller Companies 840.27 -1.48 -0.18%

FTSE 100 ends -0.6% at 5407.82, banking stocks leading the losses following fears raised by a WSJ report about the sectors' exposure to sovereign debt post-EU stress tests. This has "reminded us that this issue can affect overall risk appetite, which ended on a high on Friday at the tail end of a remarkable three-day squeeze but is now under some pressure again," says Saxo Bank.

European shares fell 0.5 percent on Tuesday, with banks down after a news report renewed jitters about the health of the sector, though the market got some support from drug makers as investors bought defensive stocks.

Wednesday's economic reports include trade balance data from both Germany and France and industrial production figures from the U.K. and Germany.

European stock markets snapped their recent winning streak to close lower Tuesday, weighed down by losses in the banking and commodities sectors.

The Stoxx Europe 600 Index shed 0.5% to 259.76 points.

In the U.K., the FTSE 100 index closed down 0.6% to 5,407.82, while the French CAC 40 index fell 1.1% to 3,643.81. The German DAX 30 index dipped 0.6% to 6,117.89.

Banks were among the biggest losers in Europe as regulators met in Basel to finalize new global rules on capital requirements and after The Wall Street Journal reported that the region's recent stress tests underestimated some lenders' holdings of government debt.

U.K. public inflation expectations for the year ahead dropped sharply in the third quarter, even as actual inflation remained well above the Bank of England's 2% target, a survey released Tuesday showed.

The Bank of England's Monetary Policy Committee is likely to keep policy on hold at the end of its two-day meeting Thursday, but with economic growth set to ease, economists say it may yet increase its bond-buying program.

The European Central Bank Tuesday drained EUR175.426 billion in overnight funds from the interbank market for liquidity provisions at the end of the reserve maintenance period.

U.K. public inflation expectations for the year ahead drop sharply in the 3Q, even as actual inflation remains well above the Bank of England's 2% target, a survey shows.

Volatility in world food markets is likely to increase and government policy will be key to ensuring the current turbulence doesn't provoke a crisis, says Hafez Ghanem, a top official at the UN's Food and Agriculture Organization.

European Union finance ministers Tuesday neared agreement on plans for stronger sanctions against countries that violate the bloc's budget rules and closer scrutiny of total national debt levels, in a bid to prevent a repeat of this year's sovereign debt crisis.

The governments are still divided over the issues of taxing banks and taxing financial transactions, EU officials and finance ministers said after their monthly meeting Tuesday.

Germany:

Germany's Die Zeit reported late Monday that banks could be required to hold a Tier 1 capital level of 9% under new rules dubbed Basel III, potentially rising to 12% in boom years in order to build reserves to pay for a downturn.

German manufacturing orders declined 2.2% in July compared with the previous month as demand for capital goods and orders from abroad dropped off, government data shows.


European Shares at 4-wk Closing High Monday

European shares edged higher on Monday, adding to a strong rally last week, with utilities rising after Germany extended nuclear power plants' lifespans, but in low volumes with Wall Street closed.

FTSEurofirst 300 index closes up 0.2 percent. The Euro STOXX 50 .STOXX50E, the euro zone's blue-chip index, rose 0.3 percent to 2,753.60 points. The index stayed above its 50 percent Fibonacci retracement of a fall to a low in May from a high in April, seen as a positive sign.

The pan-European FTSEurofirst 300 .FTEU3 index of top shares rose 0.2 percent to 1,065.80 points, the highest close since Aug. 9, after rising 3.6 percent last week.

"The markets might go slightly higher, but it is not a great week for economic data or corporate news," Jeremy Batstone-Carr, strategist at Charles Stanley, said.

"It is fair to say equity yields, compared with bond yields, are very attractive. But yields and prices are where they are because investor sentiment has been on the back foot. The probability of a double dip in Europe is close to 50 percent."

The index moved in a range of just 5.36 points over the session -- trading was thin as U.S. markets remained closed for a public holiday. Volume on the index was just 39.5 percent of its 90-day daily average.

Utilities featured among the top movers. German companies E.ON (EONGn.DE) and RWE (RWEG.DE) both rose 1.8 percent on hopes for billions of euros extra profit from a decision to extend the lifespans of nuclear power plants in Europe's biggest economy.

Sentiment among traders remained positive after markets were given a boost on Friday's news U.S. employment fell less than expected in August and private hiring surprised on the upside.

"We are having a more appropriate response to the some of the news flow which has actually been quite good," said Mike Lenhoff, chief strategist at Brewin Dolphin. "Though there is not a lot to look forward to."

"The earnings season is now behind us and there still is the open issue that the Fed might re-engage in quantitative easing, although the employment figures were better than expected they were still not great."

By mid-afternoon in Europe, Britain's FTSE 100 index was up 0.3 percent at 5,446.17, Germany's DAX was 0.3 percent higher at 6,153.31 and France's CAC-40 was up 0.3 percent at 3,684.20.

More Financial Aid For Greece Likely

Euro-zone finance ministers are scheduled to approve the next EUR9 billion ($11.57 billion) tranche of emergency financial aid to Greece at a special meeting Tuesday in Brussels.

In May, countries using the euro currency along with the European Central Bank and the International Monetary Fund agreed to a EUR110 billion loan package for Greece to help it pay its debts. A first payment of EUR20 billion was paid soon afterward.



France:
French unions launch major strike over plans to raise retirement age to 62. French unions expect two million protesters to demonstrate against the government's pension-overhaul plans, confronting head-on the central plank of President Sarkozy's fiscal changes.


Asian Pacific Markets:

Tokyo Nikkei Stock 9226.00 -75.32 -0.81 -12.52 Close
Nikkei 300 169.63 -0.74 -0.43 -8.34 Close
Hong Kong Hang Seng 21401.79 46.02 0.22 -2.15 Close
Sydney S&P/ASX 200 4573.24 -2.30 -0.05 -6.11 Close
All Ord 4613.02 -2.71 -0.06 -5.52 Close

DJ Pacific Pan-Asia 125.74 -0.24 -0.19 +2.19 Close
Bangkok SET 923.89 -7.63 -0.82 +25.78 Close
Mumbai Sensitive 18645.06 85.01 0.46 +6.76 Close
Jakarta JSX Comp 3230.89 13.74 0.43 +27.48 Close
Kuala L Composite 1434.27 -0.41 -0.03 +12.69 Close
Manila PSE 3775.42 31.41 0.84 +23.68 Close
Saudi Arabia TASI 6306.33 36.97 0.59 +3.01 Sep 6
Seoul Kospi 1787.74 -4.68 -0.26 +6.24 Close
China DJ CBN 600 25346.82 70.88 0.28 -12.76 Close
Shanghai Composite 2698.36 2.11 0.08 -17.66 Close
Shanghai A Share 2827.14 2.10 0.07 -17.75 Close
Shanghai B Share 260.40 2.12 0.82 +3.17 Close
Shenzhen A Share 1243.01 8.58 0.70 -1.45 Close
Shenzhen B Share 715.96 4.24 0.60 +14.38 Close
Singapore Straits T 3036.09 1.51 0.05 +4.78 Close
Taipei Weighted 7884.40 -6.55 -0.08 -3.71 Close
Wellington NZSX-50 3174.14 31.00 0.99 -1.73 Sep 7



Nikkei Slips After Rally

Japan and Australia central banks kept short-term interest rates steady, as expected. The Bank of Japan emphasized downside risks to GDP growth due to 'increased uncertainty' over the global economic outlook.

Nikkei slips after rally, more resistance seen ahead. Japan's Nikkei average .N225 fell 0.8 percent on Tuesday, dented by profit-taking after four days of hefty gains and as the yen's strength showed little sign of abating. But, Japan's Nikkei average were set to rise on Tuesday, riding momentum from the past four days of gains but profit-taking is expected to emerge as the index nears a one-month high and as the yen's strength shows little sign of abating.

Orders for Japanese stocks placed through 10 foreign securities houses before the start of trade showed net buy orders of 5.9 million shares.

"The Nikkei is likely to continue rebounding from its recent lows. That the index was able to rise back above 9,200 after upbeat U.S. jobs data should continue fueling the rise," said Masayoshi Yano, a senior market analyst at Meiwa Securities.

A day earlier the Nikkei broke above its 25-day moving average of 9,229, which had served as a key resistance level.

"But the Nikkei's rise has been led by futures for the most part and this could eventually lose steam. The yen remains strong and profit-taking may cap the upside after such sharp gains over
the past few days," said Yano.

Market players said they expected a wait-and-see mood to prevail, with investors keen to see how U.S. stock markets react to President Barack Obama's infrastructure plan proposal.

The Nikkei average .N225 closed Monday a little above 9,300, having bounced from a 16-month low of 8,927 struck last Wednesday after four straight days of gains. A rise above 9,362
would take it to a one-month peak.

Investors will be keeping an eye on the Bank of Japan as it wraps up a two-day policy meeting. Many expect the central bank to keep monetary policy unchanged as it has already eased at an emergency meeting last week.


Asian indexes closed higher on Monday, Sept. 6th.

Japan's benchmark Nikkei 225 stock index climbed 2.1 percent Monday, or 187.19, to 9,301.32 and South Korea's Kospi rose 0.7 percent to 1,792.42.

Hong Kong's Hang Seng index added 1.8 percent to 21,355.77. Australia's S&P/ASX 200 gained 0.8 percent at 4,575.50. Markets in mainland China, Taiwan, India, Indonesia and Singapore were also higher.

Rupee at near 4-week high as share gains boost. http://in.biz.yahoo.com/090720/137/batwsi.html


Australia/New Zealand:

Australia/New Zealand Stocks Drifted 0.1 percent Lower on Tuesday, ahead of govt, rates call.

Australian stocks drifted 0.1 percent lower on Tuesday, with investors cautious ahead of the Reserve Bank of Australia's (RBA) rates decision and an end to the nation's election impasse, both due in the afternoon.

Miners were mostly weaker while top phone company Telstra Corp rose 0.7 percent as three independent MPs were set to decide whether to back a Labor minority government or the conservative Coalition after the inconclusive election on Aug. 21.

The benchmark S&P/ASX 200 index .AXJO fell 4.4 points to 4,571.1 0042 GMT.
New Zealand's benchmark NZX 50 index .NZ50 rose 0.5 percent to 3,157.3.

On the rates front, the market is pricing in no chance of the RBA moving rates from 4.5 percent for a fourth month, and sees barely any risk of a rise by year-end.

Australia's Labor Party secured a second term, allowing it to form a government and end a deadlock, but the narrow victory threatens to stall key legislation.

Currency Pair	Price	Change
AUD to USD	0.9156	-0.0016
AUD to GBP	0.5956	-0.0000
AUD to NZD	1.2674	-0.0005

World markets Snapshot: (Tuesday, Sept. 7, 2010)

Shanghai	2,698.36	+2.11 (0.08%)
Nikkei 225	9,226.00	-75.32 (-0.81%)
Hang Seng Index	21,401.79	+46.02 (0.22%)
TSEC	7,884.40	-6.55 (-0.08%)
FTSE 100	5,404.88	-34.31 (-0.63%)
DJ EURO STOXX 50	2,728.17	-25.43 (-0.92%)
CAC 40	3,644.13	-40.60 (-1.10%)
S&P TSX	12,144.92	0.00 (0.00%)
S&P/ASX 200	4,573.20	-2.30 (-0.05%)
BSE Sensex	18,645.06	+85.01 (0.46%)

Commodities
Crude Oil	73.79	- 0.41%
Natural Gas	3.86	+ 0.29%
Gasoline	1.93	- 0.29%
Heating Oil	2.07	- 0.40%
Gold	1255.52	+ 0.45%
Silver	19.79	- 0.75%
Copper	3.46	- 0.97%
Quotes delayed 15 min.		» Add to your site

World markets Snapshot: (Monday, Sept. 6, 2010)

Shanghai	2,696.25	+40.86 (1.54%)
Nikkei 225	9,301.32	+187.19 (2.05%)
Hang Seng Index	21,355.77	+384.27 (1.83%)
TSEC	7,890.95	+60.74 (0.78%)
FTSE 100	5,439.19	+11.04 (0.20%)
DJ EURO STOXX 50	2,753.60	+7.37 (0.27%)
CAC 40	3,684.73	+12.53 (0.34%)
S&P TSX	12,144.92	+33.83 (0.28%)
S&P/ASX 200	4,575.50	+34.30 (0.76%)
BSE Sensex	18,560.05	+338.62 (1.86%)

Market Summary Friday, Sept. 3, 2010, and Tuesday's US Economic Calendar for Tuesday September 7, 2010:

Stocks:

Investors entered the long U.S. holiday weekend on a high note, riding an encouraging jobs report to send the stock market to its best pre-Labor Day week in two decades. The Labor Department said the U.S. lost 54,000 jobs last month.

Equities Week Ahead

A handful of apparel and retail companies will report quarterly results next week, with many expected to post improved sales. Citi Global Technology Conference on Tuesday and Wednesday in New York; Keefe, Bruyette & Woods Inc. Insurance Conference on Tuesday

U.S. trade data for the month of July will be released next week, with the U.S. trade deficit seen falling on a sequential basis after jumping sharply in June.

The Census Bureau will release July trade data on Thursday. The U.S. trade deficit jumped in June to $49.9 billion from $42 billion in May, its widest point since October 2008. According to Briefing.com's consensus forecast, the figure should decline slightly in July.

Also out next week is a report on wholesale trade, which includes sales and inventory statistics from the second stage of the manufacturing process. The latest data is also for July.

Securities and Exchange Commission Chairwoman Mary Schapiro will speak at an Economic Club of New York luncheon Tuesday. The SEC is facing a mammoth workload in the wake of the financial crisis. It has been given the task of more studies and rules from the sprawling Dodd-Frank financial bill than any other federal agency.

The SEC is racing to implement changes aimed at preventing another "flash crash." An SEC report on the causes of the May 6 crash is due this month. Among additional appearances by Federal Reserve officials: Fed Minneapolis President Narayana Kocherlakota speaks Wednesday in Missoula, Mont.

Semiconductor companies and more retailers and apparel companies will report quarterly results in the coming week, and while many are expected to report higher sales, concerns remain about a cautious consumer sentiment in the second half of the year. On Thursday, most retailers delivered better than expected sales in August, although expectations weren't very high due to concerns about the economy.

Apparel company Phillips-Van Heusen Corp. (PVH) will report Tuesday, while auto-parts retailer Pep Boys-Manny Moe & Jack (PBY) and women's apparel retailer Talbots Inc. (TLB) report a day later. All three are expected to post higher revenue from a year ago, according to analysts polled by Thomson Reuters.

Other notable companies reporting results next week include commercial truck and engine maker Navistar International Corp. (NAV) on Wednesday and chip maker National Semiconductor Corp. (NSM) and gun maker Smith & Wesson Holding Corp. (SWHC) on Thursday.

Financial Crisis Panel Meets Citizens

The Financial Crisis Inquiry Commission, which is tasked with investigating the causes and fallout from the credit-market collapse, will hold public meetings Tuesday in Bakersfield, Calif., and Wednesday in Las Vegas. The panel plans to hear testimony from local residents about the causes and effects of the financial crisis in their communities.

Conferences

Among the significant conferences next week are the Barclays Back-To-School Consumer Conference from Monday through Wednesday in Boston; Citi Global Technology Conference on Tuesday and Wednesday in New York; Keefe, Bruyette & Woods Inc. Insurance Conference on Tuesday and Wednesday in New York; Jefferies & Co. Global Shipping & Logistics Conference on Wednesday in New York; and Credit Suisse Auto & Transportation Conference on Wednesday and Thursday in New York.

Treasurys:

Treasurys weakened after the U.S. jobs report eased worries about a double-dip recession, sapping demand for those perceived to be safe assets. The Treasury market lost ground for a third straight session, with the 10-year and 30-year maturities again bearing the bulk of the selling. Many investors cut holdings from the bond market that had rallied strongly over the past few months as it provided a refuge to preserve capital.


Forex:

The dollar fell against most of its rival currencies Friday, Sept. 3rd. The dollar was generally weaker with the euro rising for a time to its highest in three weeks before easing back.

Disappointing figures from the U.S. service sector took some shine off currencies closely tied to global growth, but optimism ruled the day, with the growth-sensitive Australian and Canadian dollars gaining strongly against the U.S. dollar. "The data is a reminder that the U.S. recovery is still tepid, fragile, but intact and muddling along," said Alan Ruskin, global head of G10 foreign exchange strategy at Deutsche Bank. Monday, the dollar fell slightly to 84.21 yen.

Currencies:

EUR/USD	1.2878	-0.0001 (-0.01%)
USD/JPY	84.2400	-0.2200 (-0.26%)
GBP/USD	1.5412	-0.0035 (-0.23%)
CAD/USD	0.9663	+0.0043 (0.44%)
USD/HKD	7.7656	-0.0050 (-0.06%)
USD/CNY	6.7874	-0.0140 (-0.21%)
AUD/USD	0.9165	-0.0001 (-0.01%)