Stock Market Update - Wednesday, September 8, 2010 Bullish Outlook

Stock Market Update
Wednesday, September 8, 2010

Latest News Headlines:

U.S. Stocks Hold Moderate Gains After Fed Report

US stocks held modest gains Wednesday after the Federal Reserve's Beige Book found mixed or decelerating conditions in five of 12 districts in August.

Dow Jones 10,402.88 +61.19
S&P 500 1,100. +8.5
Nasdaq 2,230. +21.16


Fed Beige Book:US Economy Growth Shows Widespread Signs Of Slowing

The U.S. economy hit a soft patch in the second half of July and through August as the housing sector continued to suffer after the expiration of a tax credit, the Federal Reserve said in a report released Wednesday.

In its latest beige book, the U.S. central bank said reports from its 12 regional Fed banks suggested that the economic expansion was continuing, albeit "with widespread signs of a deceleration compared with preceding periods."

The five western Fed districts of St. Louis, Minneapolis, Kansas City, Dallas and San Francisco reported that economic growth was continuing at a moderate pace. However, the districts of New York, Philadelphia, Richmond, Atlanta, and Chicago all highlighted mixed conditions or a slowdown in the economy. The remaining reports from Boston and Cleveland pointed to positive developments compared with previous beige books.

The one-year-old economic recovery has been losing steam in recent months, with housing and construction hit by the expiration of the home-buyers tax credit at the end of June. With short-term interest rates already close to zero, there's little more the Fed can do to boost the economy, leaving the burden on fiscal policy. After already spending huge sums to fight the recession, President Barack Obama's administration is now offering new tax incentives for businesses and pledging some $50 billion in infrastructure spending in an effort to stimulate the economy.

The U.S. central bank compiles the beige book eight times a year from anecdotal information collected by the dozen regional Fed banks scattered around the country. The report--based on interviews with businesses, economists and market experts--helps inform Fed officials as they decide the future course of monetary policy.

Home sales slowed further following an initial drop after the expiration of the tax credit, prompting a slowdown in construction activity as well, the Fed report said. Demand for commercial real estate remained weak, but showed signs of stabilization in some areas.

"Some districts, such as New York and Dallas, noted that the expiration of the tax credit created especially weak conditions for lower-priced homes," the Fed report said. "Others, including Philadelphia and Kansas City, identified the high end of the market as the primary weak spot."

Reports on consumer spending, a key growth engine for the U.S. economy, were mixed but suggested a slight increase overall. Most Fed districts reported that non-auto retail sales rose compared to the previous reporting period. However, Atlanta reported a decline in the level of sales, while New York and Dallas reported that growth in retail sales slowed.

The latest beige book, prepared by the Federal Reserve Bank of San Francisco, is based on information collected on or before Aug. 30 and is prepared for use at the central bank's next policy-setting meeting September 21.

At their last such meeting Aug. 10, Fed officials took a small step to support a slowing recovery by deciding they would prevent the central bank's $2.0 trillion portfolio from shrinking. Fed Chairman Ben Bernanke said Aug. 27 that the central bank is ready to do more by resuming the purchase of assets should the economy need it.

Though the economic recovery has been losing momentum, most economists don't expect a fall back into recession and predict the Fed will prefer to wait until after this month's meeting to decide if more steps are needed to lift the economy.

Bernanke said he expects growth to pick up in 2011, spurred, in part, by consumers who have started to shore up their damaged finances. However, the Fed chief also stressed the central bank would respond if that forecast is wrong and the recovery continues to falter, expressing confidence that the Fed's new efforts would work.

The economy slowed to a sluggish 1.6% growth rate in the second quarter, with companies barely managing to post profit gains. But data released so far for the third quarter suggest there could be a mild pickup in growth in the third quarter overall.

The beige book released Wednesday said that manufacturing activity, which has led the economy's recovery, pointed to further expansion even though the pace of growth eased according to several areas.

"Most districts reported further gains in production activity and sales across a broad spectrum of manufacturing industries," the Fed report said. The rise in a key manufacturing indicator in August more than reversed the decline registered in July.

The beige book said reports from banks pointed to stable or slightly lower demand for loans amid a weak economy. The soft patch in the economy also kept price and wage pressures contained, although a few Fed districts noted upward wage pressures in some sectors experiencing a mismatch between job requirements and applicant skills.

US Consumer Credit Fell $3.6B In July

Americans reduced their borrowing in July for a sixth straight time as anxiety over the economy kept them from pulling out and using their credit cards. Consumer credit outstanding fell at a seasonally adjusted annual rate of 1.8%, down by $3.6 billion to $2.42 trillion, a Federal Reserve report said Wednesday.

The report showed revolving credit tumbled $4.4 billion, or 6.3%, to $827.83 billion. The last time credit-card use rose was in August 2008. Nonrevolving credit rose 0.6%; that category includes loans for cars, tuition and vacations, among other things.

Another Fed report indicated that fading government stimuli was hurting the economic recovery. In its beige-book report, the Fed said the U.S. economy hit a soft patch in the second half of July and through August after the end of a tax credit for first-time home buyers.

"On the positive side, consumer spending continued although households remained quite cautious," Insight Economics analyst Steven Wood said.

Consumers are spending here and there, but the momentum is shaky because of the weak job market. Standard & Poor's Ratings Services data show credit-card delinquencies and charge-offs, or accounts the lender has decided will go unpaid and has written off, fell in July; reduced spending and difficulty getting financing were behind the tumble.

President Barack Obama went to Ohio Wednesday to unveil additional ways to spur an economy that is bringing him criticism two months before congressional elections. Companies need to increase hiring before consumers start to use credit cards in force again. Data Friday showed nonfarm payrolls in the U.S. shrank a third straight time.

"Households have reduced their consumer credit in 21 of the past 24 months as they continue to deleverage their balance sheets," Insight's Wood said.



U.S. Gasoline Demand Fell to the Lowest Level since Feb. 12
US Gasoline Use -0.5% In Week

U.S. gasoline demand fell to the lowest level since Feb. 12 in the latest week, according to a SpendingPulse report by MasterCard Advisors LLC, a division of MasterCard Inc. (MA).

Demand dropped 0.5%, or 43,000 barrels a day to 9.126 million barrels a day in the week ended Sept. 3, which preceded the end-of-summer Labor Day holiday weekend. Week-to-week demand has fallen in the past three weeks, but weekly demand was up from depressed year-earlier levels for a 10th straight week.

Demand was up 1.7%, or 152,000 barrels a day, from a year ago, when consumption was the lowest at the start of September since at least 2004.

Demand in the latest four weeks averaged 9.332 million barrels a day, up 1.1% from a year ago. The latest four-week level is weakest since June 25. Year-to-date gasoline demand is growing at a 0.9% pace, its rate over the past seven weeks.

John Gamel, director of economic analysis, said demand dropped in the latest week in each region except for the West Coast.

The Lower Atlantic region, which was under threat from Hurricane Earl late last week, showed a 1.8% week-to-week decline in gasoline consumption, but a 1.8% year-on-year increase. Year-to-date national demand showed a 0.9% rise from a year earlier for the sixth straight week.

On a nationwide average, the retail price of regular gasoline fell 1 cent, to $2.67 a gallon, the lowest price since July 9. The price is up 9 cents, or 3.5%, from a year ago.


Equity averages remain modestly higher off the open, about in line with the pre-market bid. The early recoups a portion of yesterday's light volume sell off that took the major averages down over more than 1%.

Investors' Intelligence Poll: Bullish Sentiment Higher

Bullish sentiment rose among financial advisers surveyed in the weekly Investors' Intelligence poll from last Friday.

The percentage of financial advisers who are bullish on the market rose to 33.3% from 29.4%, while bearish sentiment fell to 32.2% from 37.7%. The percentage of financial advisers expecting a market correction rose to 34.5% from 32.9%.

In the week ended Tuesday, 54.63% of stocks listed on the New York Stock Exchange were above their 10-week moving averages. Also, 49.06% of NYSE stocks were above their 30-week averages.


US Services Revenue Rises 1.2% To $956.48 Billion In 2Q
U.S. information sector revenue for the second quarter rose by 0.8% to $290.9 billion, the government report showed. Revenue from U.S. health care and social assistance was $459.8 billion, a 2.1% increase from the first quarter.

The estimate of arts, entertainment, and recreation revenue for the April to June period was $45.5 billion, an increase of 14.7% from the first quarter, the Commerce report showed. U.S. rental and leasing services revenue was $31.4 billion in the second quarter, up 13.8% from January to March.


Looking ahead to the rest of the day, the Treasury's $21 billion 10-year Note auction will be in focus at 1:00 p.m. ET. Today's economic calendar features the release of the Fed's Beige Book at 2:00 p.m. ET and the Consumer Credit report for July at 3:00 p.m. ET.

U.S. stocks rose at the open on Wednesday, tracking European stocks up and ahead of Federal Reserve comments on the state of the economy.

The Dow Jones industrial average .DJI gained 36.06 points, or 0.35 percent, to 10,376.75. The Standard & Poor's 500 Index .SPX rose 3.48 points, or 0.32 percent, to 1,095.32. The Nasdaq Composite Index .IXIC added 10.39 points, or 0.47 percent, to 2,219.28.

Investors will eye the release of U.S. central bank's Beige Book at 2 p.m. EDT (1800 GMT), anecdotal reports gathered from its 12 regional banks that could offer insight into U.S. economic conditions.


US Corporate Pension Funding Slumps In August

The funding levels of the typical U.S. corporate pension plan hit at least a four-year low last month, according to BNY Mellon Asset Management, hit by a weak stock market and falling interest rates. The health of pension plans has been a concern for years as many companies haven't been keeping up with contributions, hoping instead that investment returns would cover any possible shortfall. But stagnant stock markets in recent years and rising expenses have been pressuring pension plans.

BNY Mellon Asset Management said the funded status of typical U.S. corporate pension plan fell 5.6 percentage points last month to 71.3%, with assets decreasing 2.1% from July and liabilities increasing 5.5%.

Mortgage lending falls 1.5 pct
Decreased Mortgage Applications Files In the US

Applications for home loans dipped last week as mortgage rates ticked up slightly from the lowest level in decades.

The volume of mortgage applications filed in the U.S. last week decreases a seasonally adjusted 1.5% from the previous week, the MBA reports. The rates for 15- and 30-year fixed rate mortgages grow from the prior week.



Before the Bell:
The major U.S. index futures are pointing to a higher opening on Wednesday, with some early negativity mitigated by a rebound by European stocks. Across the Atlantic, stocks are deriving some support a rally in the shares of BP (BP) after the company released an internal report on Gulf blowout. The Beige Book to be released in the afternoon will have some meaningful impact on the markets depending on how the report qualifies growth based on anecdotal evidence from the Federal Reserve districts.

The prices of commodities are little changed, while the yen has retreated slightly against the dollar following a slight improvement in risk appetite.

US stocks opened with modest gains Wednesday as Portugal's successful auction of debt helped offset concern about European banks.



Canadian Market:

Toronto Indexes, Volume; 3 PM EDT Composite Off 3.57

3 PM EDT Toronto Indexes

S&P/TSX Composite 12098.41 off 3.57 or 0.0%
S&P/TSX 60 Index 705.15 up 0.02 or 0.0%
Financials 175.19 up 1.30 or 0.7%
Materials 380.02 off 2.34 or 0.6%
Energy 275.76 off 0.43 or 0.2%
Industrials 103.85 up 0.51 or 0.5%
IT 27.07 off 0.04 or 0.1%

Volume Wednesday Tuesday
2-3 67.6M 49.5M
9:30-3 370.0M 309.1M



Toronto Stocks Higher At Midday
The stock market was slightly higher at midday Wednesday, led by the banking sector as the outlook for dividend hikes improved.

At 11:45 a.m. EDT (1545 GMT), the S&P/TSX Composite Index was up 21.68 points, or 0.18%, at 12123.66. Advancers outweighed decliners 733 to 557. Trading volume was 188.5 million shares. The S&P/TSX 60 Index was up 1.42 points, or 0.2%, to 706.55 points.


Canada Raised Interest Rates

The Canadian dollar put in a robust performance Wednesday, climbing steeply after the Bank of Canada announced its third-straight interest rate increase.

The exchange rates at 3:30 p.m. EDT (1930 GMT), 8:00 a.m. EDT (1200 GMT), and late Wednesday.

USD/CAD 1.0367 1.0474 1.0475
EUR/CAD 1.3190 1.3292 1.3297
CAD/JPY 80.98 79.96 80.00

Bank of Canada raises its interest rates for the third consecutive time, by 25 basis points to 1.00%, and says further rate hikes would be "carefully considered in light of the unusual uncertainty surrounding the outlook."


South American Markets:

Mexico:
Mexican stocks were moving higher early Wednesday as investors shook off the previous day's anxieties over the health of European banks. The market's benchmark IPC index was up 0.2% at 32518 points around 10:30 a.m. EDT. Volume was 38.3 million shares with a value of 1.27 billion pesos ($97.7 million).

Mexican Finance Minister Ernesto Cordero said the government expects the economy to grow 4.5% this year, with expansion in gross domestic product slowing to 3.8% in 2011.

GDP expanded 5.9% in the first half of 2010, led by a rebound in export-oriented manufacturing as demand picked up in the U.S., the country's main export market.

The 4.5% estimate for growth this year is above the ministry's previous estimate of 4.1% and in line with most private estimates between 4% and 5%. Last year, the economy contracted 6.5%.

Chile:

Chile Stocks Gain 1.1% Early, Tracking US Markets
Chile's blue-chip Ipsa index was gaining 1.1% early Wednesday, as it tracked the rise in U.S. markets and as participants expected the central bank to release an upgraded growth forecast for the year later in the session. The Ipsa was recently up at 4655.37, while market volume totaled 20.0 billion Chilean pesos ($40.2 million).

Several of the Ipsa's heavier-weighted shares also trade in New York, the Ipsa often tracks the Dow Jones Industrial Average. The DJIA added 50 points, or 0.5%, to 10390 in early trading after concerns about European bank health waned.

Among gainers, flagship carrier LAN Airlines (LFL, LFL.SN) grew 1.5% to CLP14,450.00, after a recent report puts it as a potential takeover target for British Airways (BAIRY, BAY.LN). The Chilean carrier also recently announced plans to merge with Brazilian airline TAM (TAM, TAMM4.BR).

Specialty chemical and fertilizer producer SQM's (SQM, SQMCY) more liquid B-series (SQM-B.SN) rose 1.4% to CLP22,950.00 on expectations that demand for its products will remain strong throughout the year and after local brokerages recently recommended investors to buy its shares.

Retailers were again among the biggest gainers as robust demand has fueled Chile's fast economic recovery and the booming corporate profits in the sector.


Argentina:

Argentina July Manufacturing Up 8% On the Year
Argentina's industrial production rose sharply on the year in July but slowed somewhat from the brisk pace in June, manufacturing group UIA said in a report Wednesday.

June's industrial production was up 8% on the year but slipped 2.3% on the month, the UIA said. That brings year-on-year growth during the first seven months of the year to 11.8%.

Venezuela:

Venezuela Food Rationing Card Issued

Venezuela's Chavez Introduces Food Rationing Card

Presented by President Hugo Chávez as an instrument to make shopping for grocersies easier, the "Good Life Card'' is making various segments of the population wary because they see it as a furtive attempt to introduce a rationing card similar to the one in Cuba.

The measure could easily become a mechanism to control the population, according to civil society groups.

"We see that in short-term this could become a rationing card probably similar to the one used in Cuba,'' Roberto León Parilli, president of the National Association of Users and Consumers, told El Nuevo Herald. "It would use more advanced technological means [than those used in Cuba], but when they tell you where to buy and what the limits of what you can buy are, they are conditioning your purchases.''

Chávez said Tuesday that the card could be used to buy groceries at the government chain of markets and supplies. "I have called it a Good Life Card so far,'' Chávez said in a brief statement made on the government television channel. "It's a card for you to purchase what you are going to take and they keep deducting. It's to buy what you need, not to promote communism, but to buy what just what you need.''

Former director of Venezuela's Central Bank, Domingo Maza Zavala, said this could become a rationing card that would limit your purchases in light of the country's recurring problems with supplies.

"If the intention is to beat inflation, they should find a good source of supply for the entire market and not only for centers that are part of social chains,'' he said. "To do that, you need to encourage local production with the help of the private sector, since they cannot do it by themselves. The government cannot become the ultimate food distributor.''

Humberto Ortega Díaz, minister for public banking and president of the Venezuelan Bank, minimized such criticism and said that all this measure is trying to do is to improve service at the government supply chains."Why can't our Bicentennial chain use a card to make it easier for customers to buy their groceries?'' the minister said in an interview broadcast on a government channel. He said that this type of initiative has been used by private commercial entities.

Yet, critics pointed out that the measure could turn out not as innocent as the minister makes it to be, and they insist that the government control over the supply chain is too broad and depends greatly on imports the government authorizes through its currency exchange system.

In theory, the government could begin to favor the import of products to be sold through the government chains and have more control over the type of products purchased and the people buying them.

Jaime Suchlicki, director of the University of Miami's Institute for Cuban and Cuban-American Studies, said that Venezuela's current problems of scarce supplies are very similar to those Cuba faced when Fidel Castro introduced the rationing card.

"The card emerged when goods began to become scarce,'' Suchlicki said. "The government had seized many companies that did not work because the government managed them poorly. Then they decided to distribute groceries through those cards.''

And although the cards were introduced as a mechanism to deal with scarcities, Suchlicki said, they later became an instrument of control."People depended on the government to eat, and nothing gives you more power than having people depend on you to get their food quota,'' he said.



European Markets:
European shares up at close
The Stoxx Europe 600 index rose 1% to finish at 262.33 points.
The U.K. FTSE 100 index gained 0.4% to 5,429.74.
Europe STOXX 600 262.33 2.57 0.99 +3.32 Intraday
STOXX 50 2555.92 24.46 0.97 -1.14 Intraday
EuroSTOXX50 2752.89 25.73 0.94 -7.15 Intraday
London FTSE 100 5429.74 21.92 0.41 +0.31 Close
FTSE 250 10216.71 35.44 0.35 +9.78 Close
Frankfurt Xetra DAX 6164.44 46.55 0.76 +3.47 Close
Paris CAC40 3677.21 33.40 0.92 -6.58 Close
Tokyo Nikkei Stock 9024.60 -201.40 -2.18 -14.43 Close
Nikkei 300 166.81 -2.82 -1.66 -9.86 Close

Amsterdam AEX 331.43 3.67 1.12 -1.16 Close
Athens ASE 1586.62 -31.69 -1.96 -27.75 Intraday
Brussels BEL-20 2556.00 17.09 0.67 +1.77 Close
Copenhagen OMXC20 408.64 1.00 0.24 +21.37 Close
Dublin ISEQ 2757.77 -24.87 -0.89 -7.30 Close
Helsinki OMX Helsinki 6857.44 86.40 1.28 +6.22 Close
Istanbul IMKB-100 60608.08 -138.67 -0.23 +14.73 Close
Jo-burg All Share 27911.14 245.85 0.89 +0.88 Close
Lisbon PSI General 2614.84 -17.43 -0.66 -9.90 Intraday
Madrid IBEX 35 10586.20 107.10 1.02 -11.34 Close
Milan FTSE MIB 20580.26 184.81 0.91 -11.48 Close
FTSE Italia 21132.72 186.48 0.89 -10.65 Close
Oslo OBX Stock 337.75 2.20 0.66 -0.46 Close
All-Share 411.36 2.61 0.64 -2.08 Close
Prague PX 1135.90 -9.70 -0.85 +1.66 Close
Russia RTS 1469.68 1.57 0.11 +1.74 Close
Vienna ATX 2479.30 15.15 0.61 -0.65 Close
Zurich Swiss Mkt 6386.95 26.75 0.42 -2.43 Close




The euro has fallen to a record low against the Swiss franc and then bounced hard.The euro fell earlier to a record low CHF1.2764. It is trading as of this writing at CHF1.2875, and that bounce from the record low is impressive.

Wednesday's rebound came after the Portuguese government sold EUR661 million ($839 million) of three-year debt and EUR378 million of 10-year bonds, amid solid demand.

The successful auction helped ease short-term concerns about euro-zone sovereign debt that had crept to the forefront a day earlier, after a Wall Street Journal report renewed concerns about European banks' sovereign debt holdings.

The auction also helped offset weaker-than-expected economic data, which showed Germany's exports dropping in July from the previous month, while industrial production edged up a meager 0.1%.

After the Portuguese auction, European stock markets turned higher to erase earlier losses, with the broad Stoxx Europe 600 index rising 0.7% in intraday trade.

"European peripheral debt is the key issue at the moment, with Irish spreads widening out again today," said Stephen Taylor, a strategist at Dolmen Stockbrokers.

Additional worries about Ireland have in part been sparked by the rising cost of bailing out Anglo Irish Bank, Taylor said. He noted that those fears have pushed Irish government bond yields to record levels.

The Irish government said it will split nationalized lender Anglo Irish Bank into two separate businesses in an effort to minimize the cost to taxpayers of bailing out the failed firm.
The benchmark Irish ISEQ index slipped 0.8%, as shares of Bank of Ireland dropped 3% and those of Allied Irish Bank fell 0.8%.

Germany:
The German DAX 30 index ended up 0.8% to 6,164.44, led higher by car makers' shares. Both Daimler AG and BMW AG advanced around 2%.

German Corporate Insolvencies Up 2%
German corporate insolvencies rose 2% in the first half of 2010 from the corresponding period in 2009, the federal statistics office said Wednesday.

About 16,500 firms filed for insolvency at German courts in the period ending June 30, the office said. The number of consumer insolvencies rose by 11.6% compared with the first half of 2009 to 53,864.

However, open claims to creditors decreased in the first half of 2010 to EUR21.2 billion, compared with EUR24.4 billion in the first half of last year. In June, the number of corporate insolvencies decreased 1.3% to 2,752 compared with June 2009. In the same month, consumer insolvencies rose 10.2% compared with June 2009 to 9,297.

Website: www.destatis.de



United Kingdom:
U.K. manufacturing output posted its strongest annual increase for more than 15 years in July, a sign that the economy continues to recover from its severe recession, official data showed Wednesday. The monthly growth rate of manufacturing was modest, and economists said recent surveys indicated that activity in the sector is beginning to slow from the solid performance of the second quarter.

The Office for National Statistics said manufacturing output rose for a third straight month in July, growing 0.3% from June--the same monthly rate as in the two previous months. But in annual terms output was 4.9% higher than in July last year--the sharpest increase since a 6.2% rise in December 1994--after a downwardly-revised 4.0% increase in June.

The data were in line with the market consensus estimate of a gain of 0.3% on the month and 5.0% on the year from a Dow Jones Newswires survey of economists last week. The ONS said the main drivers of the monthly increase were machinery and equipment, textiles, leather and clothing and paper, printing and publishing.

Ireland Tries To Quash Bank Fears

Ireland said it would extend certain government guarantees for its troubled banks in a bid to quash concerns about the health of the nation's financial sector.

The government said guarantees for short-term bank liabilities, set to expire Sept. 29, will instead expire at year end. The guarantees include corporate and interbank deposits as well as debt securities. The government said individual deposits of as much as EUR100,000 ($128,750) will continue to receive government backing as part of its ordinary guarantee program.

Irish officials extended the short-term bank guarantees as the government works to restructure Anglo Irish Bank Corp., the deeply troubled state-owned bank.

Greece was also in focus after the National Bank of Greece said late Tuesday that it will raise 2.8 billion euros of fresh capital. Shares of the bank dropped more than 6% in Athens.

Greek authorities also revised down second-quarter gross domestic product figures, saying the economy contracted 1.8% in the quarter, compared to the previous estimate of a 1.5% decline.

The country's benchmark ASE Composite index dropped 2% to 1,586.62.

Data from Germany was also relatively weak. Figures showed industrial production rose by a smaller-than-expected 0.1%.

France:
CAC40 3677.21 33.40 0.92 -6.58

French Unions Call New Anti-reform Strike For Sep 23
French unions Wednesday called a fresh day of strikes for Sept. 23 to challenge a plan to raise the retirement age, a day after more than a million people took to the street in protest.

Six major unions issued a joint statement saying they were not satisfied by the minor modifications offered by President Nicolas Sarkozy to his plan to raise the minimum retirement age to 62 from 60 by 2018.



Asian Pacific Markets:

Nikkei Stock 9024.60 -201.40 -2.18 -14.43 Close
Nikkei 300 166.81 -2.82 -1.66 -9.86 Close
Hong Kong Hang Seng 21088.86 -312.93 -1.46 -3.58 Close
Sydney S&P/ASX 200 4537.16 -36.08 -0.79 -6.85 Close
All Ord 4578.29 -34.73 -0.75 -6.23 Close
China DJ CBN 600 25376.33 29.51 0.12 -12.65 Close
Shanghai Composite 2695.29 -3.07 -0.11 -17.75 Close
Shanghai A Share 2823.92 -3.22 -0.11 -17.85 Close
Shanghai B Share 260.15 -0.25 -0.10 +3.07 Close
Shenzhen A Share 1252.58 9.58 0.77 -0.69 Close
Shenzhen B Share 713.77 -2.19 -0.31 +14.03 Close
Singapore Straits T 3011.42 -24.67 -0.81 +3.93 Close
Taipei Weighted 7851.31 -33.09 -0.42 -4.11 Close
Wellington NZSX-50 3161.18 -12.96 -0.41 -2.13 Close

The dollar fell to a fresh 15-year low against the yen overnight.

Commodities
Crude Oil	74.08	- 0.01%
Natural Gas	3.83	- 0.49%
Gasoline	1.93	- 0.35%
Heating Oil	2.07	-
Gold	1257.14	+ 0.16%
Silver	19.99	+ 1.06%
Copper	3.46	-
Quotes delayed 15 min.		» Add to your site

World markets Snapshot:

Shanghai 2,695.29 -3.07 (-0.11%)
Nikkei 225 9,024.60 -201.40 (-2.18%)
Hang Seng Index 21,088.86 -312.93 (-1.46%)
TSEC 7,851.31 -33.09 (-0.42%)
FTSE 100 5,409.92 +2.10 (0.04%)
DJ EURO STOXX 50 2,733.77 -19.83 (-0.72%)
CAC 40 3,656.27 +12.46 (0.34%)
S&P TSX 12,101.98 0.00 (0.00%)
S&P/ASX 200 4,537.20 -36.00 (-0.79%)
BSE Sensex 18,666.71 +21.65 (0.12%)

Market Summary:

Stocks:

U.S. stocks fell Tuesday Sept. 7th, giving up some of last week's gains, as fresh concerns about Europe's bank stress tests worried investors. Investors questioned Europe's recent stress tests of major banks after a Wall Street Journal analysis showed the tests understated some lenders' holdings of potentially risky government debt. A bigger-than-expected drop in German manufacturing orders in July also weighed."This is a macro-driven market," said Bill Stone, chief investment strategist at PNC Wealth Management.

Treasurys:

The U.S. sold three-year notes for the lowest yield on record, and Treasurys rallied as renewed concerns about the euro zone spurred demand for low-risk debt. Treasurys rallied back from losses late last week, which were posted after a better-than-expected August jobs report Friday. Treasurys maturing in the next seven to 30 years were the biggest winners as investors returned from the long holiday weekend. The 30-year bond was up by more than two points in price. "So far, investors have come back from the end of summer ready to buy fixed income," said Jim Vogel, an analyst with FTN Financial.

Forex:

The euro fell against the dollar and the yen, hampered by the Wall Street Journal article on inadequate "stress tests" and bad German manufacturing data. "The pendulum of negative sentiment has swung from the US back to Europe...especially in the last week," says Marc Chandler, global head of foreign exchange at Brown Brothers Harriman.

Wednesday's US Economic Calendar:

7:00 a.m.
Sept. 3 MBA Mortgage Applications Survey Market Composite Index (previous 893.8), Market Composite Index Cur Chg (previous +2.7%), Purchase Index (S.A.) (previous 173.6), Cur Chg (previous +1.8%), Refinance Index (previous 5085.3), Cur Chg (previous +2.8%)

7:45 a.m.
Sept. 4 ICSC-Goldman Sachs Chain Store Sales Index - WoW (previous +0.1%), YoY (previous +2.8%)

8:55 a.m.
Sept. 4 Johnson Redbook Retail Sales Index MoM % Change (previous +1%), 12MonChgPct (previous +2.8%), 52WkChgPct (previous +3%)

2:00 p.m.
U.S. Federal Reserve Beige Book

2:30 p.m.
Minneapolis Fed Pres Kocherlakota speaks on 'Inside the FOMC' in Missoula, Montana

3:00 p.m.
July Consumer Credit Monthly Net Change (expected -5.3B)

4:30 p.m.
Sept. 3 API Statistical Bulletin Crude Stocks (Net Change) (previous +4.77M), Gasoline Stocks (Net Change) (previous -589K), Distillate Stocks (Net Change) (previous -1.86M), Refinery Runs (previous 84.8%)