Stock Market Update - Nov. 29 - Dec, 3, 2010 Choppy Gains Seen
Stock Market Update
Friday, December 3, 2010
Latest US Economic News Headlines:
USA EQUITY INDEXES: (DEC. 03, 4:05 PM EST)
==(FRIDAY'S CLOSING INDEX NUMBERS)==
Dow Jones 11,382.09 +19.68 (+0.17%)
S&P 500 1,224.71 +3.18 (+0.26%)
Nasdaq 2,591.46 +12.11 (+0.47%)
Dow Jones CLOSING Averages 12/03/2010: DJIA 11,382.09 UP 19.68
30 INDUS 11,382.09 UP 19.68 OR 0.17%
20 TRANSP 5,068.81 UP 31.24 OR 0.62%
15 UTILS 399.03 UP 1.36 OR 0.34%
65 STOCKS 3,978.42 UP 13.52 OR 0.34%
US COMMODITY PRICES: (DEC. 03, 4:05 PM EST)
Crude Oil 89.43 + 0.27%
Natural Gas 4.33 - 0.39%
Gasoline 2.36 + 0.41%
Heating Oil 2.50 + 0.40%
Gold 1414.78 + 2.13%
Silver 29.37 + 2.87%
Copper 4.00 + 0.58%
US DOLLAR FUTURES INDEX DXY: DEC. 03, 4:00PM EST: 79.19
1.11 (1.38%)
Dow Jones 11,382.09 +19.68 (+0.17%)
S&P 500 1,224.71 +3.18 (+0.26%)
Nasdaq 2,591.46 +12.11 (+0.47%)
Dow Jones CLOSING Averages 12/03/2010: DJIA 11,382.09 UP 19.68
30 INDUS 11,382.09 UP 19.68 OR 0.17%
20 TRANSP 5,068.81 UP 31.24 OR 0.62%
15 UTILS 399.03 UP 1.36 OR 0.34%
65 STOCKS 3,978.42 UP 13.52 OR 0.34%
US COMMODITY PRICES: (DEC. 03, 4:05 PM EST)
Crude Oil 89.43 + 0.27%
Natural Gas 4.33 - 0.39%
Gasoline 2.36 + 0.41%
Heating Oil 2.50 + 0.40%
Gold 1414.78 + 2.13%
Silver 29.37 + 2.87%
Copper 4.00 + 0.58%
US DOLLAR FUTURES INDEX DXY: DEC. 03, 4:00PM EST: 79.19
1.11 (1.38%)Dollar Falling - U.S. Stocks Higher, Gold Breaks Record Highs
Us Stocks Flat As Dollar Declines
US Stocks edged higher at the close, as the dollar took one of it largest declines since last October. The Dow Jones Industrial Average climbed 19.68 points, or 0.17%, to 11382.09 on Friday, extending its December rally to a third day. The measure climbed 2.6% this week, boosted by a dose of better-than-expected economic reports.
The Nasdaq Composite gained 12.11, or 0.47%, to 2591.46, its highest close in nearly three years. The Standard & Poor's 500-stock index rose 3.18, or 0.26% to 1224.71.
Bernanke To Tell Nation This Sunday:
More Quantitative Easing Coming
The "60 minutes" program is scheduled for 7 p.m.
A late afternoon announcement from Reuters: "The euro rose to a session peak against the dollar in late afternoon New York trade on Friday after a report on the CBS website that Federal Reserve Chairman Ben Bernanke did not rule out buying more than $600 billion of bonds in further quantitative easing."
http://www.reuters.com/article/idUSTRE6B26BR20101203?WT.tsrc=Social%20Media&WT.z_smid=twtr-reuters_biz&WT.z_smid_dest=Twitter
U.S. Federal Reserve Chairman Ben Bernanke will appear on the news program "60 minutes" on Sunday, part of an effort by the central bank to step up its public communications.
The move comes as the Fed's decision last month to purchase an additional $600 billion caused a flurry of criticism from politicians in Washington, who argue the central bank is playing with fire and courting future inflation.
The CBS television network said Bernanke would discuss "pressing economic issues, including the unemployment rate, the deficit and the Fed's controversial $600 billion U.S. Treasury bill purchase."
=//////=
At mid-afternoon, U.S. stocks slipped on Friday after the unemployment rate rose to its highest level since April, but investors hoped the disappointing jobs report could strengthen lawmakers' resolve to take action to boost the economy. The euro strengthened against the dollar, trading recently at $1.3377, up from $1.3207 late Thursday in New York. The U.S. Dollar Index, which tracks the currency against a basket of others, fell 1.2%.
The Dow Jones Industrial Average fell 22 points, or 0.2%, to 11341 in recent trading. The Nasdaq Composite edged up 0.1% to 2582. The Standard & Poor's 500-stock index lost 0.2% to 1219, weighed by its financial sector.
Financials also led the Dow's declines after surging in the past two days. J.P. Morgan Chase fell 1.2%, while American Express shed 1%. Bank of America was off 0.5%.
Stocks ended a two-day rally on Friday after the November jobs report came in much weaker than expected. But other economic reports cushioned the disappointment over the weak labor-market data.
Friday morning stocks opened lower to flat against a lower dollar. The euro strengthened against the dollar, trading recently at $1.3351, up from $1.3207 late Thursday in New York. The U.S. Dollar Index, which tracks the currency against a basket of others, fell 1%. Investor holdings in gold exchange-traded funds climbed this week as China took major positions and investors moved in for safety. Spot gold is at $1,408 an ounce and Silver is now trading over $29.28 an ounce.
NO JOBS IN AMERICA
Jobless Rate Rises to 9.8% Percent. as job growth stalls
U.S. Non-farm payrolls rose by 39,000 in November as private-sector employers added just 50,000 jobs, the Labor Department said Friday. A separate survey showed the unemployment rate unexpectedly rose to 9.8% last month.
U.S. VP Biden says that job figures are 'disappointing' and that if unemployment benefits are not extended, U.S. will 'lose 600,000 jobs.'
US Stocks edged higher at the close, as the dollar took one of it largest declines since last October. The Dow Jones Industrial Average climbed 19.68 points, or 0.17%, to 11382.09 on Friday, extending its December rally to a third day. The measure climbed 2.6% this week, boosted by a dose of better-than-expected economic reports.
The Nasdaq Composite gained 12.11, or 0.47%, to 2591.46, its highest close in nearly three years. The Standard & Poor's 500-stock index rose 3.18, or 0.26% to 1224.71.
Bernanke To Tell Nation This Sunday:
More Quantitative Easing Coming
The "60 minutes" program is scheduled for 7 p.m.
A late afternoon announcement from Reuters: "The euro rose to a session peak against the dollar in late afternoon New York trade on Friday after a report on the CBS website that Federal Reserve Chairman Ben Bernanke did not rule out buying more than $600 billion of bonds in further quantitative easing."
http://www.reuters.com/article/idUSTRE6B26BR20101203?WT.tsrc=Social%20Media&WT.z_smid=twtr-reuters_biz&WT.z_smid_dest=Twitter
U.S. Federal Reserve Chairman Ben Bernanke will appear on the news program "60 minutes" on Sunday, part of an effort by the central bank to step up its public communications.
The move comes as the Fed's decision last month to purchase an additional $600 billion caused a flurry of criticism from politicians in Washington, who argue the central bank is playing with fire and courting future inflation.
The CBS television network said Bernanke would discuss "pressing economic issues, including the unemployment rate, the deficit and the Fed's controversial $600 billion U.S. Treasury bill purchase."
=//////=
At mid-afternoon, U.S. stocks slipped on Friday after the unemployment rate rose to its highest level since April, but investors hoped the disappointing jobs report could strengthen lawmakers' resolve to take action to boost the economy. The euro strengthened against the dollar, trading recently at $1.3377, up from $1.3207 late Thursday in New York. The U.S. Dollar Index, which tracks the currency against a basket of others, fell 1.2%.
The Dow Jones Industrial Average fell 22 points, or 0.2%, to 11341 in recent trading. The Nasdaq Composite edged up 0.1% to 2582. The Standard & Poor's 500-stock index lost 0.2% to 1219, weighed by its financial sector.
Financials also led the Dow's declines after surging in the past two days. J.P. Morgan Chase fell 1.2%, while American Express shed 1%. Bank of America was off 0.5%.
Stocks ended a two-day rally on Friday after the November jobs report came in much weaker than expected. But other economic reports cushioned the disappointment over the weak labor-market data.
Friday morning stocks opened lower to flat against a lower dollar. The euro strengthened against the dollar, trading recently at $1.3351, up from $1.3207 late Thursday in New York. The U.S. Dollar Index, which tracks the currency against a basket of others, fell 1%. Investor holdings in gold exchange-traded funds climbed this week as China took major positions and investors moved in for safety. Spot gold is at $1,408 an ounce and Silver is now trading over $29.28 an ounce.
NO JOBS IN AMERICA
Jobless Rate Rises to 9.8% Percent. as job growth stalls
U.S. Non-farm payrolls rose by 39,000 in November as private-sector employers added just 50,000 jobs, the Labor Department said Friday. A separate survey showed the unemployment rate unexpectedly rose to 9.8% last month.
U.S. VP Biden says that job figures are 'disappointing' and that if unemployment benefits are not extended, U.S. will 'lose 600,000 jobs.'
FACTORY ORDERS DECLINED
Factory orders fell in October, but the 0.9% decline was not as severe as the 1.1% drop economists had forecast. Factory orders fall 0.9% to $420.09 billion in October, the first decline in four months, as a key driver of the economy is hurt by a lack of demand for transportation and other durable goods.NON-MANUFACTURING INDEX UP
U.S. non-manufacturing sector expands in November, with ISM's index rising to 55.0 from 54.3 in October, meeting expectations. ISM says last month's business activity/production index slipped to a still-high 57.0 from 58.4 in October.
U.S. non-manufacturing sector expands in November, with ISM's index rising to 55.0 from 54.3 in October, meeting expectations. ISM says last month's business activity/production index slipped to a still-high 57.0 from 58.4 in October.
PRESIDENT OF THE U.S. IN AFGHANISTAN
President Barack Obama to meet with Afghanistan President Karzai and U.S. Gen. Petraeus, the Associated Press reports.
President Barack Obama to meet with Afghanistan President Karzai and U.S. Gen. Petraeus, the Associated Press reports.
AT THE OPEN
U.S. stocks fell Friday morning after the unemployment rate rose to its highest level since April, dousing the market's expectations and underlining the labor market's continued weakness.
The Dow Jones Industrial Average declined 20 points, or 0.2% to 11342. AT&T led the measure's declines, sliding 1.1%. The Nasdaq Composite shed 0.3% to 2572. The Standard & Poor's 500-share index lost 0.3% to 1218.
At the open the dollar declined against the euro, recently up 1% to $1.3341. As the U.S. Deficit Commission Votes 11-7 For the final report, It fails to get 14 votes needed from panel to proceed.
The U.S. deficit commission received the backing of an 11th member as Rep. John Spratt (D., S.C.) became the sixth lawmaker who sits on the panel to voice support for its final report.
Rep. Xavier Becerra (D., Calif.) and Andrew Stern, former president of the Service Employees International Union, followed Spratt by saying they would oppose the finding, meaning that the panel won't reach the 14 votes required to possibly trigger congressional votes on the commission's findings. The commission has 18 members.
Considering the breadth of the recommendations in the panel's final report which range from an overhaul of the tax code to aggressively cutting spending to widespread changes to the Social Security program, many economists concluded the commission served its purpose.
"With the issuing of this report, we begin a national debate," Spratt said in declaring his support for the plan. Sen. Richard Durbin (D., Ill.), the assistant majority leader who declared his support for the plan Thursday evening, said that the onus was now on Congress to take up the mantle.
"When we borrow 40 cents of every dollar we spend--whether it's for the Pentagon or for food stamps--that's not sustainable," Durbin said. Rep. Jeb Hensarling (R., Tex.) has yet to declare how he intends to vote for the plan. He is expected to do so shortly.
THURSDAY: The Dow Jones Industrial Average finished Thursday up 106.63 points, or 0.95%, to 11362.41. The blue-chip index has gained 3.2% in the first two days of December, its largest two-day rise since July 8.
The technology-oriented Nasdaq Composite gained 29.92 points, or 1.17%, to 2579.35. The Standard & Poor's 500-stock index gained 15.46, or 1.28%, to 1221.53, led by its financial, industrial and material sectors. All 10 of its sectors finished in positive territory.
As the dollar paused, U.S. stocks climbed Thursday, extending the market's strong start to the month as good chain-store sales and better-than-expected pending home sales painted a brighter picture for the U.S. economy.
Also helping stocks, pressure on the euro eased on talk that the European Central Bank was actively buying more bonds of some of the bloc's more financially stressed governments.
The Dow Jones Industrial Average was up 92 points, or 0.8%, to 11348 in midday trade. Bank of America and J.P. Morgan Chase were among the Dow's strongest components after Goldman Sachs lifted its view on the financial sector to overweight, marking the first time the firm has been positive on financials since 2008. Bank of America climbed 2.8% and J.P. Morgan added 2.4%.
The Nasdaq Composite rose 0.9% to 2572. The Standard & Poor's 500-share index gained 1% to 1218, led by its financials and industrials sectors.
As the dollar paused, U.S. stocks climbed Thursday, extending the market's strong start to the month as good chain-store sales and better-than-expected pending home sales painted a brighter picture for the U.S. economy.
Also helping stocks, pressure on the euro eased on talk that the European Central Bank was actively buying more bonds of some of the bloc's more financially stressed governments.
The Dow Jones Industrial Average was up 92 points, or 0.8%, to 11348 in midday trade. Bank of America and J.P. Morgan Chase were among the Dow's strongest components after Goldman Sachs lifted its view on the financial sector to overweight, marking the first time the firm has been positive on financials since 2008. Bank of America climbed 2.8% and J.P. Morgan added 2.4%.
The Nasdaq Composite rose 0.9% to 2572. The Standard & Poor's 500-share index gained 1% to 1218, led by its financials and industrials sectors.
Boosting sentiment for the holiday shopping season, sales at retail stores opened more than a year rose 6% in November, above the estimated growth of 3.6% and the year-ago gain of 0.6%, according to Thomson Reuters. Shares of Abercrombie surged 11% after the teen retailer posted a 22% jump in its November same-store sales. Other retailers that climbed on better-than-expected sales included J.C. Penney, up 2.5%, and Costco Wholesale, up 0.9%.
Investors were also encouraged by the National Association of Realtors' pending home sales index, which unexpectedly soared 10.4% to 89.3. The report boosted home-improvement retailers and home builders. Lowe's climbed 3.9%, Home Depot rose 3.8%, Lennar gained 6.8% and PulteGroup added 4.1%.
The better-than-expected readings on retail sales and pending-home sales helped extend Wednesday's rally on improvement in private-sector jobs. The Dow is up more about 3.1% over the two-day stretch, marking its biggest two-day gain since July.
Investors were also encouraged by the National Association of Realtors' pending home sales index, which unexpectedly soared 10.4% to 89.3. The report boosted home-improvement retailers and home builders. Lowe's climbed 3.9%, Home Depot rose 3.8%, Lennar gained 6.8% and PulteGroup added 4.1%.
The better-than-expected readings on retail sales and pending-home sales helped extend Wednesday's rally on improvement in private-sector jobs. The Dow is up more about 3.1% over the two-day stretch, marking its biggest two-day gain since July.
MID-DAY:
In early trading, U.S. stocks extended gains in choppy trading Thursday after pending home sales unexpectedly soared and investors mulled whether European officials can help stop the spread of the euro zone's debt crisis.
The Dow Jones Industrial Average rose 85 points, or 0.8%, to 11341. Home Depot led the blue-chip index's gains, rising 3.2%, while Microsoft jumped 2.7%. Financials were among the market's biggest gainers as Bank of America shares gained 2.8% and J.P. Morgan Chase added 2.5%.
The Standard & Poor's 500-share index gained 0.8% to 1215. The technology-oriented Nasdaq Composite rose 0.7% to 2566.
Stocks extended morning gains after the National Association of Realtors' pending home sales index unexpectedly soared 10.4% to 89.3. Economists surveyed by Dow Jones Newswires had expected pending home sales would drop 1.5%. However, the index remains down 21% from a year ago, when buyers were racing to claim a tax credit.
Investors also kept a close eye on the latest developments in Europe. The European Central Bank will continue to offer special longer-term liquidity tenders in 2011, according to ECB President Jean-Claude Trichet. The extra liquidity measures were due to be phased out early next year, so the new decision should offer some relief to the euro zone's troubled debt markets.
COMMODITIES ON THE MOVE
Dow Jones-UBS Commodity Index 151.548 up 0.825 or +0.55% Cotton and cocoa led an advance in commodities. March soft red winter wheat futures prices on the Chicago Board of Trade on Thursday hit a fresh three-week high of $7.67 1/2 a bushel.
Prices have pushed sharply higher the past two days amid weather concerns in U.S. and Australian wheat regions. The wheat market bulls have quickly gained fresh upside near-term technical momentum as prices have tacked on around 75 cents a bushel from this week's low of $6.85 1/2.
The next upside technical price objective for the rejuvenated wheat market bulls is to produce a close in March Chicago futures above strong chart and psychological resistance at the November high of $8.00 a bushel. Above that lies technical resistance at the contract and two-year high of $8.64 1/4, scored in August.
THE OPENING BELL
U.S. stocks opened slightly higher on Thursday as investors mulled over whether European officials can help stop the spread of the euro-zone sovereign debt crisis.
The Dow Jones Industrial Average rose 45 points, or 0.4%, to 11301. Alcoa led the blue-chip index's gains, rising 2%, while Microsoft gained 1.5% and JPMorgan rose 1.2%. The Standard & Poor's 500-share index gained 0.4% to 1211, led by the financial and materials sectors. The technology-oriented Nasdaq Composite rose 0.4% to 2559.
Thursday morning starts with overnight futures moving up in the US Market. U.S. stock index futures are pointing to a higher open on Wall Street Thursday, with futures for the S&P 500 up 0.46 percent, Dow Jones futures up 0.47 percent and Nasdaq 100 futures up 0.51 percent at 1000 GMT.
Economic data on tap for Thursday includes weekly initial jobless claims, pending home sales for October, and retail chain store sales for November.
Companies expected to report quarterly results include Novell Inc (NasdaqGS:NOVL), The Kroger Co (NYSE:KR), Toll Brothers (NYSE:TOL) and Del Monte Foods (NYSE:DLM).
US Pending Home Sales Rise
The number of U.S. consumers who agreed to purchase homes unexpectedly shot up in October but remained below a healthy level. The National Association of Realtors' index for pending sales of existing homes increased 10.4% to 89.3, the industry group said Thursday.
However, the pending sales index was 20.5% below its level of 112.4 in October 2009, when buyers were racing to claim a tax credit.
Economists surveyed by Dow Jones Newswires had expected pending home sales would drop 1.5% in October. Falling prices have made houses more affordable. But Lawrence Yun, NAR's chief economist, said improvement in the market is needed.
"It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels," Yun said. He warned against any push to scale back the tax deduction on mortgage interest payments, citing a survey showing about 75% of homeowners consider that tax break to be very important.
This week, the Federal Reserve, in its periodic beige book survey, reported some improvement in the overall economy during the autumn, but said the housing market remained depressed.
Home prices are falling, which, along with a weak economy, hurts demand. Home prices nationally were down 2% in the third quarter compared with the second quarter, according to the S&P Case-Shiller national price index released this week.
US Retailers' November Sales Rise 6%
Beating 3.6% Expectation U.S. retailers reported November same-store sales rose 6%, exceeding analysts' estimates as consumers are showing signs of coming out of their shells. The strong November results add to recent data showing the start of the holiday-buying season has been a success.
Target said same-store sales rose 5.5%, which was stronger than analysts expected. The retail giant sees December same-store stoles rising in the low-to-mid single digits. Shares edged 0.1% lower.
Macy's raised its fourth-quarter sales and earnings guidance as it said same-store sales jumped 6.1% last month. Shares rose 0.2%.
Costco Wholesale reported a 9% increase in comparable sales for the four-week period ending Nov. 28. Shares edged up 0.3%.
436,000 MORE AMERICAN'S LOST THEIR JOBS
US Jobless Claims Increased 26000 Last Week to 436000
Applications to begin receiving unemployment benefits in the US rose more than forecast last week, indicating the labor market will take time to improve. More Americans applied for unemployment benefits last week, but the broader trend in layoffs points to a slowly healing job market.
The Labor Department says new claims for unemployment aid rose last week by a seasonally adjusted 26,000 to 436,000. The previous week's claims were revised up slightly to show applications had tumbled by 31,000 to 410,000. The figures are often volatile during the weeks around the Veteran's Day and Thanksgiving holidays.
Overall, 8.9 million people are receiving jobless aid, including 4.9 million that are doing so through the federally funded extended benefit programs. Those provide up to 99 weeks of benefits.
TWO CHINA FIRMS SCRAP US IPO'S
China's MIE, China Time Share Yank US IPO Plans Thursday
Two Chinese companies on Thursday scrapped their plans for initial public offerings, one of them citing adverse market conditions, further illustrating problems Chinese firms have had in trying to go public in the U.S.
Chinese oil company MIE Holdings Corp., which originally filed plans in April to sell up to an estimated $287.5 million of equity, said Thursday it withdrew its plans to go public in the U.S. because "market conditions in the United States do not at this time support a public offering."
The company had postponed its offering in May after slashing estimated terms, and in recent days has made an effort to raise some $185 million through an IPO in Hong Kong. MIE works in oil fields in the onshore Sonliao Basin under production contracts with PetroChina Co. (PRT, 601857.SH, 0857.HK), the biggest of the country's three national oil companies.
Advertising service provider China Time Share Media Co. pulled its own IPO plans, though it didn't give a reason. The company originally filed in September 2008 -- just a week before the bankruptcy of Lehman Brothers -- to sell up to an estimated $75 million of equity.
US DOMESTIC JOB BILL = JOBLESS BENEFITS
Not Extending Jobless Benefits To Cost Jobs
House OKs extension of tax cuts for some Americans - The measure would extend tax cuts for those who make less than $250000 a year.
President Barack Obama's economic council had a warning for Congress Thursday: Not extending unemployment benefits that expired Wednesday would increase unemployment and cripple millions of Americans just as the country heads into the holiday season.
Not extending jobless benefits would result in two million people losing coverage in December alone and could cost 600,000 jobs over the next year because of a drop in consumption, according to a report released Thursday by Obama's Council of Economic Advisers.
Austan Goolsbee, who chairs the council, said that not extending jobless benefits would be "fairly damaging on our nascent recovery."
Jobless benefits, which generally come in the form of weekly checks of several hundred dollars, are used as a safety net during shaky economic times. Goolsbee said that not extending them now, when the unemployment rate is "extremely high," would be unprecedented.
Republicans in Congress have said they want any extension, which would cost billions of dollars, to be paid for in other areas of the budget. Goolsbee said moving money from one area of the budget would limit the impact of getting money in the hands of the unemployed.
About 14 million people have been helped by jobless benefits as of October 2010
The administration's warning comes on the backdrop of a week dominated by concerns over taxes and the country's deficit. Obama this week assigned White House budget director Jacob Lew and Treasury Secretary Timothy Geithner to work with congressional leaders to settle a dispute over tax cuts enacted under former President George W. Bush. The cuts are set to expire at year's end.
Republicans, and some Democrats, want those tax cuts extended across the board. Obama has insisted the country can't afford extending them for anyone but the middle class. Geithner and Lew have met with a small group of congressional leaders from both parties to settle the dispute. While it isn't clear what common ground they can find, reports suggest a compromise might include extending unemployment benefits.
Wednesday volatile and choppy trading ended with the Dow rallying 249 points today to 11255, the S&P added 25 points to 1206, and the Nasdaq surged 51 points to 2549.
The U.S. Dow Jones Industrial average jumped more than 260 points by noon Wednesday as the market stepped into December with strong gains, as robust U.S. jobs figures and manufacturing data from China, the U.K. and India helped investors look past concerns in Europe.
Reuters reported the U.S. would commit more money to the International Monetary Fund to help with a broader stabilization package for Europe. After that report, the Euro surged and the US Dollar retreated further on news that the US is prepared to support an extension of the European Financial Stability Facility through extra funding via the International Monetary Fund. Even though that news story was later declined by an official, the dollar remained lower on the day.
U.S. investors are also keeping a close eye on Congress and the Federal Reserve, which reported its beige book of economic activity at 2:00 p.m. EST
The Dow gained more than 200 points in early trading. Commodity prices gained, while the dollar declined. The U.S. Dollar Index, which tracks the performance of the greenback against a basket of six other currencies, dropped 0.5%. Treasurys also fell, sending the yield on the benchmark 10-year note higher to 2.936%.
The Dow Jones Industrial Average gained 193 points, or 1.8%, to 11198 in morning trading, while the Standard & Poor's 500-stock index gained 20 points to just over the 1200 level and the Nasdaq Composite added 48 points to 2546.
The advances were broad and deep, with all 30 of the Dow's component stocks and all 10 of the S&P 500's ten sectors in positive territory. The Nasdaq's move, meantime, is on track for its biggest one-day gain in nearly two months.
Kicking off the good news Wednesday was data showing the U.S. added 93,000 private-sector jobs in November--the 10th consecutive month of gains and the largest one-month gain in three years. The survey's compilers said the report showed "an acceleration of employment and suggests the nation's employment situation is brightening somewhat."
The U.S. Labor Department showed productivity rising more than previously thought in the third quarter, as companies boosted output while also holding down labor costs. U.S. spending on construction projects also unexpectedly rose by 0.7% in October, for a second straight gain.
At the open, the Dow Jones Industrial Average gained 179 points, or 1.6%, to 11184 in early trading, while the Standard & Poor's 500-stock index gained 19 points to 1199 and the Nasdaq Composite added 47 points to 2545.
U.S. stock futures point to strong gains on a declining dollar and positive global economic reports, as good news in the U.S. and robust manufacturing data from China to the U.K. cheer investors and offset worries about the euro-zone debt crisis.
US stocks looked set to jump into December with strong gains, as robust jobless numbers in the US. The Dow Jones Industrial Average futures gained 128 points to 11124 recently, while Standard & Poor's 500 futures gained 15 points to 1194 and Nasdaq 100 futures added 25 points to 2142. Prior to the data, Dow futures had been up 121 points, while S&P 500 futures gained 14 points and Nasdaq futures added 22 points. Changes in stock futures do not always accurately predict early stock moves after the open.
SEC TO VOTE ON FRIDAY
Commodity Futures Trading Commission Votes 3-2 To Propose Key Swap Definitions
Federal regulators proposed rules Wednesday that provide clarity on which companies will be subject to new derivatives regulations and which may qualify for exemptions from the potentially costly new rules.
The proposal by the Commodity Futures Trading Commission is the latest to be issued for public comment as the CFTC works to implement provisions of the Dodd-Frank financial-overhaul law. The plan fills in key details in the definitions of "swap dealer" and "major swap participant"--two kinds of firms targeted by many of the derivatives provisions in Dodd-Frank.
The CFTC proposed the rule in a 3-2 vote, but the rule still must be considered by the Securities and Exchange Commission before it can be issued for public comment. The SEC is slated to vote on the measure Friday. A second vote by both agencies, which share oversight of the over-the-counter derivatives market, is needed to implement the definitions.
The financial industry and corporations across the U.S. have all been anxiously awaiting the definitions, and lobbyists in the room at the CFTC Wednesday took vigorous notes as the definitions were explained to commissioners by the staff.
The law requires swap dealers such as banks and major swap traders who may pose risks to the marketplace to execute standard swaps on trading platforms and route them through clearinghouses, which guarantee trades. It also imposes numerous other requirements, including capital, margin, reporting, record-keeping and business conduct standards. How the definitions of these firms are crafted will determine which companies will face these regulations and which may be exempt.
Companies have been lobbying the CFTC on the issue for months, and more than 80 comment letters were submitted to the agency even before the definitions were unveiled.
FED BOOK REPORT
Fed Beige Book: US Economic Growth Continues To Improve
The U.S. economy showed some improvement in October and November, 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 suggest the economy "continued to improve, on balance."
The positive tone of the report, covering the period from mid-October to mid-November, was based largely on the continued expansion in manufacturing in nearly all districts and mostly solid consumer spending. Despite the improvement in retail and tourism spending, the report noted that many consumers remain sensitive to prices and focused on buying necessities.
"Expectations for the holiday shopping season were generally positive, with several districts expecting higher sales when compared to year-ago levels," the Fed said.
The report follows a decision by the Fed last month to buy up another $600 billion in Treasurys to counteract a worsening economic outlook. Fed officials lowered their economic forecast for 2011 during the Nov. 2-3 policy-setting meeting, projecting growth of 3% to 3.6%.
Fed Chairman Ben Bernanke warned Tuesday that the economy isn't growing fast enough to "materially reduce" the unemployment rate, which stands at 9.6%.
Fed Vice Chairwoman Janet Yellen urged Congress on Wednesday to pursue "pro-growth policies" in the near term to complement the Fed's Treasury-buying program, which she said is no "panacea."
The beige book indicated some divergence across regions. Economic activity in the Fed districts of Boston, Cleveland, Atlanta, Dallas and San Francisco expanded at a "slight to modest pace."
New York, Richmond, Chicago, Minneapolis, and Kansas City registered "somewhat stronger" growth, while Philadelphia and St. Louis reported "mixed" business conditions.
Amid concerns that inflation remains uncomfortably low, the report found that price and wage pressures remain tame. Prices for final goods and services were "fairly flat" despite the rising cost of inputs such as agricultural commodities, metals and fuel.
While hiring showed some improvement in most districts, wage pressures were contained as well.
"Employers are waiting for clearer signals of expanding business prospects before adding significantly to payrolls," the report said.
Housing markets remained "depressed," meanwhile, with renewed weakening reported in several districts.
Banking conditions were stable, with steady or improving lending activity in nearly all districts. The Fed's Atlanta district reported constrained credit conditions and weak loan demand.
The 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.
The latest report, prepared by the Cleveland Fed, is based on information collected on or before Nov. 19 and is prepared for use at the central bank's next policy-setting meeting Dec. 14.
REVISED U.S. DEFICIT PLAN
Realistic Plan Presented to Reluctant Commission
In final report, federal debt commission warns of fiscal 'reckoning
Six members of the US deficit commission have endorsed its final plan. The bipartisan panel's recommendations include a cap on discretionary spending, Social Security reforms and an overhaul of the tax code.
A 59-page proposal from the co-chairmen of the White House's deficit-reduction commission, which they labeled "The Moment of Truth," calls for sweeping changes in how the country spends money and collects taxes, the starting point for a long debate about how to tackle the U.S. debt.
Democrat Erskine Bowles and Republican Alan Simpson, who head the National Commission on Fiscal Responsibility and Reform, proposed in their final report changes that would affect almost everyone, from wage earners to people who put gasoline in their cars or hope one day to collect Social Security, Medicare, or Medicaid. It would cut 200,000 federal-government jobs by 2020, roughly 10% of the work force, and trim defense spending.
The proposals are likely to trigger widespread resistance from the interest groups that would be directly affected, such as seniors and home builders, but the panel's co-chairmen said the tough decisions must be made to put the country on a more fiscally sustainable path.
"Throughout our nation's history, Americans have found the courage to do right by our children's future. Deep down, every American knows we face a moment of truth once again," the co-chairmen's report said. "We cannot play games or put off hard choices any longer. Without regard to party, we have a patriotic duty to keep the promise of America to give our children and grandchildren a better life."
The proposal would achieve nearly $4 trillion in deficit reduction through 2020, reduce the deficit to 2.3% of gross domestic product by 2015, overhaul the tax code, cap government revenue at 21% of GDP and reduce debt to 40% of GDP by 2035, the co-chairmen said.
The 18-member commission is set to discuss the proposal Wednesday morning and plans to hold a vote on it Friday. The chairmen are expected to come up short of the 14 votes needed to issue a formal recommendation to Congress and the White House, but the proposal is nevertheless expected to frame the debate in the next year over which budget changes are necessary to cut into the country's growing debt.
"Throughout our nation's history, Americans have found the courage to do right by our children's future. Deep down, every American knows we face a moment of truth once again," the co-chairmen's report said. "We cannot play games or put off hard choices any longer. Without regard to party, we have a patriotic duty to keep the promise of America to give our children and grandchildren a better life."
The proposal would achieve nearly $4 trillion in deficit reduction through 2020, reduce the deficit to 2.3% of gross domestic product by 2015, overhaul the tax code, cap government revenue at 21% of GDP and reduce debt to 40% of GDP by 2035, the co-chairmen said.
The 18-member commission is set to discuss the proposal Wednesday morning and plans to hold a vote on it Friday. The chairmen are expected to come up short of the 14 votes needed to issue a formal recommendation to Congress and the White House, but the proposal is nevertheless expected to frame the debate in the next year over which budget changes are necessary to cut into the country's growing debt.
The new proposal would offer a 12% nonrefundable tax credit to all taxpayers and cap the mortgage-interest deduction to loans less than $500,000, with homeowners receiving no credit from mortgages on a second home.
Capital gains and dividends would be taxed at normal income rates. They would also limit the ability of people to deduct their health-insurance payments pretax.
To offset taking away or limiting tax expenditures, the co-chairmen proposed several scenarios for lower income-tax rates, which the group is expected to discuss at the meeting on Wednesday.
The co-chairmen also take aim at Social Security, Medicaid and Medicare costs. For Social Security, they recommend raising the normal retirement age to 68 by 2050 and 69 by 2075. They recommend creating a hardship exemption for people who can't work beyond 62 and other exemptions for low-income earners. For Medicaid and Medicare, the co-chairmen recommend cuts across both programs that they say would save billions of dollars and contain the long-term costs of these programs.
The chairmen met with Vice President Joe Biden Tuesday and discussed their recommendations. White House spokesman Amy Brundage said President Barack Obama supported the plan to delay a vote until Friday.
Read the entire report at the Wall Street Journal:
http://online.wsj.com/article/SB10001424052748704594804575648503541856136.html
US BACKING EUROPEAN STABILITY MEASURES
Is The US Prepared To Support Larger European Stability?
White House Closely Monitoring European Debt Crisis
President Barack Obama and his economic team are closely monitoring the European debt crisis, White House Press Secretary Robert Gibbs said Wednesday.
Gibbs referred questions to the Treasury Department about whether the U.S. would commit more money to the International Monetary Fund to help with a broader stabilization package for Europe. Gibbs said the administration believes the debt concerns in several European countries needs to be addressed.
Gibbs said National Economic Council Director Larry Summers and Treasury Secretary Timothy Geithner briefed Obama and a group of bipartisan Congressional leaders Tuesday about the potential of the European debt crisis to impact the U.S.
Reuters News Service reported that the U.S. is prepared to support the extension of the European Financial Stability Facility with an extra commitment of money from the International Monetary Fund, a U.S. official told Reuters on Wednesday. However, the U.S. isn't discussing a larger International Monetary Fund contribution to the European rescue package, another U.S. official told the Wall Street Journal.
"There are a lot of people talking about that. I think the European Commission has talked about that," the U.S. official said, referring to enlarging the European stability fund. "It is up to the Europeans. We will certainly support using the IMF in these circumstances."
"There are obviously some severe market problems," the official said, according to Reuters. "In May, it was Greece. This is Ireland and Portugal. If there is contagion that's a huge problem for the global economy."
UN WARNS OF DOUBLE-DIP RECESSION
The United Nations says world growth in the next two years will not be enough to recover jobs lost in the financial crisis, adding key countries could be heading for a double-dip recession.
Total Sales 168,704, Up 20.8%
Gibbs referred questions to the Treasury Department about whether the U.S. would commit more money to the International Monetary Fund to help with a broader stabilization package for Europe. Gibbs said the administration believes the debt concerns in several European countries needs to be addressed.
Gibbs said National Economic Council Director Larry Summers and Treasury Secretary Timothy Geithner briefed Obama and a group of bipartisan Congressional leaders Tuesday about the potential of the European debt crisis to impact the U.S.
Reuters News Service reported that the U.S. is prepared to support the extension of the European Financial Stability Facility with an extra commitment of money from the International Monetary Fund, a U.S. official told Reuters on Wednesday. However, the U.S. isn't discussing a larger International Monetary Fund contribution to the European rescue package, another U.S. official told the Wall Street Journal.
"There are a lot of people talking about that. I think the European Commission has talked about that," the U.S. official said, referring to enlarging the European stability fund. "It is up to the Europeans. We will certainly support using the IMF in these circumstances."
"There are obviously some severe market problems," the official said, according to Reuters. "In May, it was Greece. This is Ireland and Portugal. If there is contagion that's a huge problem for the global economy."
UN WARNS OF DOUBLE-DIP RECESSION
The United Nations says world growth in the next two years will not be enough to recover jobs lost in the financial crisis, adding key countries could be heading for a double-dip recession.
GENERAL MOTORS SEES GAINS
Passenger Car Deliveries Increased 17 % During NovemberTotal Sales 168,704, Up 20.8%
General Motors reported that they will hire 1,000 engineers in Michigan to help expand the automakers’ lineup of electric-drive vehicles, the maker of the Chevrolet Volt gasoline-electric car said yesterday. GM plans to sell 10,000 Volts next year and 45,000 in 2012.
FORD MOTOR COMPANY GAINED
Ford Motor Sees a 24% Rise With November Sales Numbers.Ford Motor Sees One Of Our Best Years Ever, as Ford 4Q production plan of 590,000 vehicles remains unchanged. Ford said they see signs of demand for new vehicles Increasing, and plans to build 635,000 vehicles in the 1st Quarter of 2011.
Ford To Complete Rear Camera Roll-Out On Nearly All Models by End of 2011
CHRYSLER SALES EDGES UP
Chrysler's Sales Increase 17%.
BMW US SALES CLIMB 27%
US November Total Car Sales +27% At 22,883 Units, US Nov BMW Brand Sales +30% At 20,297 Vehicles
NEW FACTORY ORDERS FALL
November Factory PMI Declines
Ford To Complete Rear Camera Roll-Out On Nearly All Models by End of 2011
CHRYSLER SALES EDGES UP
Chrysler's Sales Increase 17%.
PORSCHE RACES AHEAD
Porsche Cars of North America Reports November Sales Up Nearly 50 %BMW US SALES CLIMB 27%
US November Total Car Sales +27% At 22,883 Units, US Nov BMW Brand Sales +30% At 20,297 Vehicles
NEW FACTORY ORDERS FALL
November Factory PMI Declines
The U.S. manufacturing sector slowed a bit in November, but remained in expansion mode, according to data released Wednesday by the Institute for Supply Management.
The ISM's manufacturing purchasing managers' index slipped to 56.6 in November from 56.9 in October.The ISM's new orders index fell to 56.6 from 58.9, while the production index fell to 55.0 from 62.7.
The ISM's manufacturing purchasing managers' index slipped to 56.6 in November from 56.9 in October.The ISM's new orders index fell to 56.6 from 58.9, while the production index fell to 55.0 from 62.7.
Factory employment slowed, but remained expansionary last month. The index eased to 57.5 from 57.7 in October. The positive employment index supports Wednesday's news from ADP that factory jobs increased 16,000 in November. The inventory index rose to 56.7 from 53.9.
Price pressures remained at worrisome levels. The prices index in November slipped to 69.5 from 71.0. Factory surveys done by regional Federal Reserve banks generally showed a pickup in manufacturing activity and jobs last month. The national ISM report supports the view that the U.S. factory sector is reviving in the fourth quarter.
US COMPANIES ADDED 93,000 JOBS
Companies in US Added 93000 Jobs in November
Companies in the U.S. boosted payrolls more than forecast in November, propelled by increased hiring at small businesses, data from a private report showed today.
Employment increased by 93,000, the most since November 2007, after a revised 82,000 rise in October that was almost double the initial estimate, according to figures from ADP Employer Services. The median projection of 40 economists surveyed by Bloomberg News called for a 70,000 gain last month. Small firms added more workers than at any time since the recession began in December 2007.
A pickup in job growth would help generate more incomes and spur consumer spending, which accounts for about 70 percent of the economy. A Labor Department report in two days will show companies added 155,000 workers last month and the unemployment rate held at 9.6 percent, according to the survey median.
http://www.bloomberg.com/news/2010-12-01/companies-in-u-s-added-93-000-jobs-in-november-adp-says.html
US PRODUCTIVITY ROSE
Productivity in US Rises More Than Previously Estimated
The productivity of U.S. workers rebounded more in the third quarter than previously estimated, showing companies were focused on controlling costs. The U.S. Labor Department showed productivity rising more than previously thought in the third quarter, as companies boosted output while also holding down labor costs. U.S. spending on construction projects also unexpectedly rose by 0.7% in October, for a second straight gain. Manufacturing numbers largely fell in line with expectations.
The measure of employee output per hour rose at a 2.3 percent annual rate, compared with the 1.9 percent initially calculated and a 1.8 percent drop in the previous three months, revised figures from the Labor Department showed today in Washington. Labor expenses fell.
Gains in payrolls and the workweek so far this quarter indicate companies are coming up against limits on how much more efficiency they can wring from current staff to meet rising sales. General Motors Co. is among businesses planning to boost employment in a bid to take advantage of a growing market.
Labor costs, adjusted for efficiency gains, fell at a 0.1 percent pace, the same as previously estimated, the Labor Department report showed.Corporate profits rose 2.8 percent from the previous three months and have been up every quarter since the first three months of 2009, the GDP report showed. Wages and salaries jumped by $97.4 billion at an annual pace in the second quarter and $51.4 billion from July through September. Hours worked climbed 1.7 percent from a year earlier, the biggest gain since 2006, today’s report showed. Among manufacturers, productivity rose at a 0.6 percent annual pace after rising 5.6 percent in the second three months of the year.
LOWER U.S. INVESTOR SENTIMENT
Investors' Intelligence Poll: Bullish Sentiment Lower
The bullish sentiment fell among financial advisers surveyed in the weekly Investors' Intelligence poll from last Friday. The percentage of financial advisers who are bullish on the market fell to 55.4% from 55.7%, while bearish sentiment rose to 21.8% from 21.6%.
The percentage of financial advisers expecting a market correction fell/rose to 22.8% from 22.7%. In the week ended Tuesday, 57.70% of stocks listed on the New York Stock Exchange were above their 10-week moving averages. Also, 69.53% of NYSE stocks were above their 30-week averages.
TUESDAY: U.S. Stocks declined Tuesday in choppy trading. The volatility Index VIX rose 9.4% to 23.54. Equities closed down fot the day. The Dow dropped 46 pts today to 11006, the S&P fell 7 pts to 1180, and the Nasdaq shed 26 pts to 2498.
At 1:20 p.m. EST the Dow turned up into positive territory with 11059, up 6.75 as the dollar declined off resistance. U.S. stocks are modestly lower as investors overcome continued worries over the European sovereign-debt, the dollar's rise and encouraging data on U.S. manufacturing and consumer confidence. Tech shares are weaker in afternoon trading.
U.S. stocks trimmed their losses Tuesday as the dollar relaxed its gain at a key resistance point and U.S. economic data cushioned an early morning declined at the market open. Gold was given a boost due to China's approval to invest in foreign gold funds.
The Dow Jones Industrial Average fell 56 points, or 0.5% to 10997 in recent trading. Financial components led the measure's decline. J.P. Morgan Chase fell 1.3%, while American Express slid 1.3%. Energy companies were also weak as crude-oil prices dropped. Chevron fell 0.7%, while Exxon Mobil lost 0.5%.
The Nasdaq Composite shed 0.9% to 2502. The Standard & Poor's 500-share index fell 0.6% to 1180, weighed by its technology and energy sectors.Shares of Google Inc. (GOOG) slipped down more than 4.3% at $556.87 Tuesday on reports that the online search giant is offering to buy Groupon--a localized Web site geared toward discount shoppers--in a deal worth almost $6 billion. Google offered $5.3 billion for Groupon. Groupon would be Google's largest acquisition by far at nearly twice the size of its $3.1 billion takeover of DoubleClick in 2007 and far more than the $1.65 billion it paid for YouTube the year before.
U.S. stocks pared an early decline after two key data points encouraged investors. The Chicago Purchasing Managers' Index was 62.5 in November, better than the 60.0 reading economists were expecting. The manufacturing report "reminded people that it's not all doom and gloom," said Bill Vaughn, portfolio manager at Evercore Wealth Management. "The manufacturing sector of the economy has been strong for a while."
Separately, the Conference Board's November reading of consumer confidence came in at 54.1, better than economists' forecast of 52.5.
The data helped shave off some of the market's earlier heavy losses as concerns built that European sovereign-debt crisis could widen .
The Dow Jones Industrial Average fell more than 100 points, or 0.9% to 10952 in early trading. Hewlett-Packard led the measure's decline, shedding 1.6%. Energy components were also weak as crude-oil prices slid. Chevron fell 1.3%, while Exxon Mobil lost 1%.
The Nasdaq Composite shed 1.1% to 2498. The Standard & Poor's 500-share index fell 0.9% to 1177, weighed by its energy and technology sectors.
U.S. CONSUMER CONFIDENCE VERY WEAK - FEW JOBS MORE LAY-OFFS EVERY WEEK
Weak Consumer Confidence Shows Slight Gain
A lack of consumer confidence continues to loom over the holiday season although buying intentions among higher-income Americans has perked up, according to an ABC News index.
Overall U.S. consumer sentiment remains deeply depressed, with the index reading -45 for the latest week on its scale of +100 to -100. The reading was -47 the prior week. The index level has been this bad for a holiday kickoff just three times: in 1991, 2008 and last year.
ABC said consumer sentiment is up among Americans with incomes over $100,000 a year and positive for this group for the first time since mid-October.
In contrast to the overall picture, 61% of higher-income adults call this a good time to buy things they want and need. Among all Americans, the buying climate was rated positive by just 27%.
ABC said that while this positive trend could help retailers, as those higher-income earners have more disposable income, Americans who are better off financially account for just 12% of the nation's population.
The index is based on a random survey of 1,000 respondents nationwide. It measures typical Americans' confidence in three areas: the national economy, their finances and their willingness to spend money, according to the report. The poll has a margin of error of plus or minus three percentage points.
The index is derived by subtracting the negative response to each index question from the positive response to that question. The three resulting numbers are added and divided by three.
HOME PRICES CONTINUE TO FALL
Home prices are falling faster in the nation's largest cities, and a record number of foreclosures are expected to push prices down further through next year. U.S. home-purchase prices slid 1.9% in the third quarter from the spring--dropping 7.4% at an annualized rate--as the sales slowdown and expiration of the federal home-buyer tax credit weighed on values, according to Freddie Mac (FMCC). They were down 3.1% from the third quarter of last year.
In the period, Freddie said home values fell in each of the nine census divisions except New England. The Mountain division had the biggest drop from the second quarter, 4.9%.
Home prices dropped from a month earlier, and the rate of decline shows signs of accelerating, according to the S&P Case-Shiller home-price indexes. Its 20-city index drops 0.7%; economists had been expecting that index to rise 1.0%. Prices also dip in the third quarter.
Tuesday morning futures point to a slightly lower volatile open in the U.S. Commodities are declining against the dollar's rise in early morning trading before the bell. At 9:00 am the Case-Shiller 20-city Index, Chicago PMI, and Consumer Confidence figures will be reported.
Monday, the Dow ended lower (-39.51) to close at 11,052, the Nasdaq closed down (-9.35) to 2525.21, and the S&P closed down a little at 1187.76 down (-1.64).
The consumer-discretionary and technology sectors suffered the biggest declines, but the financial, energy and materials sectors managed to end the day in the black following a late-day rebound. Technology components were among its worst performers, with Hewlett-Packard (HP) down 1.4% after Gartner Inc. cut its worldwide personal-computer shipments forecast for the year. International Business Machines (IBM) was off 0.7%. Amazon.com climbed 1.3% and hit an all-time high during the session as analysts predicted the online retailer would gain market share in the current holiday shopping season. Nordstrom dropped 2.4%, Best Buy shed 3% and Macy's lost 2.2%.
After paring back most of its earlier losses, the U.S. Indexes were edging up in choppy trading into positive territory just prior to the close.
The Dow was off more than 140 points by noon. Monday before the dollar relaxed to climb. The Volatility Index VIX rose to 23.24.The S&P 500 slid under its 50-day moving average in early trade on Monday. All sectors declined against the rising dollar.
U.S. stocks and commodities fell Monday at the open against a rising dollar in early trading. The Dow Jones Industrial Average dropped 86 points, or 0.7%, to 11005. The measure briefly dipped below the key 11000 level to 10,948.The Nasdaq Composite declined 0.7% to 2518. The Standard & Poor's 500 index dropped 0.7% to 1181 with its materials and health-care sectors leading a broad decline.
The dollar climbed to two-month highs against the yen and euro last Friday and passed that mar today. The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, climbed 0.7% in early trading.
FRIDAY OIL FUTURES: Nymex Crude Settles Up $1.19 At $89.19/Bbl
$89 A BARREL, $90 TARGET RANGE
Light, sweet crude for January delivery recently traded $1.07, or 1.2%, higher at $89.07 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange recently traded 55 cents higher at $91.24 a barrel, after hitting its highest price since October 2008.
Crude futures moved higher Friday, as a weak report on U.S. employment failed to dash concerns that global oil supplies may be falling from their recent highs.
Light, sweet crude for January delivery recently traded 50 cents, or 0.6%, higher at $88.50 a barrel on the New York Mercantile Exchange, nearing fresh two-year highs. Brent crude on the ICE futures exchange recently traded 55 cents higher at $91.24 a barrel, after hitting its highest price since October 2008.
Front-month January reformulated gasoline blendstock, or RBOB, recently traded 1.15 cents lower at $2.3438 a gallon. January heating oil recently traded 2.11 cent higher at $2.4758 a gallon.
Friday morning,s light, sweet crude for January delivery recently traded 45 cents, or 0.5%, lower at $87.55 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 22 cents lower at $90.47 a barrel.
Front-month January reformulated gasoline blendstock, or RBOB, recently traded 1.33 cents lower at $2.3420 a gallon. January heating oil recently traded 0.51 cent lower at $2.4495 a gallon.
THURSDAY: OIL FUTURES: Crude Settles Up $1.25 At $88/Bbl
Crude Settles At Two-Year High
Crude futures settled at a two-year high Thursday, rising to $88 a barrel as economic data in the U.S. and actions in the euro zone to support debt markets lifted hopes for oil demand.
Light, sweet crude for January delivery settled $1.25, or 1.4%, higher on the New York Mercantile Exchange. Brent crude on the ICE futures exchange topped $90 a barrel, a key psychological barrier, settling $1.82 higher at $90.69 a barrel.
Gasoline futures also continued their rise Wednesday, hitting fresh six-month highs. Front-month January reformulated gasoline blend-stock, or RBOB, settled 5.49 cents higher at 2.3553 a gallon. January heating oil settled 4.90 cents higher at $2.4546 a gallon.
In early Morning trading Thursday, light, sweet crude for January delivery recently traded 12 cents lower at $86.63 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 31 cents higher at $89.18 a barrel.
Companies in US Added 93000 Jobs in November
Companies in the U.S. boosted payrolls more than forecast in November, propelled by increased hiring at small businesses, data from a private report showed today.
Employment increased by 93,000, the most since November 2007, after a revised 82,000 rise in October that was almost double the initial estimate, according to figures from ADP Employer Services. The median projection of 40 economists surveyed by Bloomberg News called for a 70,000 gain last month. Small firms added more workers than at any time since the recession began in December 2007.
A pickup in job growth would help generate more incomes and spur consumer spending, which accounts for about 70 percent of the economy. A Labor Department report in two days will show companies added 155,000 workers last month and the unemployment rate held at 9.6 percent, according to the survey median.
http://www.bloomberg.com/news/2010-12-01/companies-in-u-s-added-93-000-jobs-in-november-adp-says.html
US PRODUCTIVITY ROSE
Productivity in US Rises More Than Previously Estimated
The productivity of U.S. workers rebounded more in the third quarter than previously estimated, showing companies were focused on controlling costs. The U.S. Labor Department showed productivity rising more than previously thought in the third quarter, as companies boosted output while also holding down labor costs. U.S. spending on construction projects also unexpectedly rose by 0.7% in October, for a second straight gain. Manufacturing numbers largely fell in line with expectations.
The measure of employee output per hour rose at a 2.3 percent annual rate, compared with the 1.9 percent initially calculated and a 1.8 percent drop in the previous three months, revised figures from the Labor Department showed today in Washington. Labor expenses fell.
Gains in payrolls and the workweek so far this quarter indicate companies are coming up against limits on how much more efficiency they can wring from current staff to meet rising sales. General Motors Co. is among businesses planning to boost employment in a bid to take advantage of a growing market.
Labor costs, adjusted for efficiency gains, fell at a 0.1 percent pace, the same as previously estimated, the Labor Department report showed.Corporate profits rose 2.8 percent from the previous three months and have been up every quarter since the first three months of 2009, the GDP report showed. Wages and salaries jumped by $97.4 billion at an annual pace in the second quarter and $51.4 billion from July through September. Hours worked climbed 1.7 percent from a year earlier, the biggest gain since 2006, today’s report showed. Among manufacturers, productivity rose at a 0.6 percent annual pace after rising 5.6 percent in the second three months of the year.
LOWER U.S. INVESTOR SENTIMENT
Investors' Intelligence Poll: Bullish Sentiment Lower
The bullish sentiment fell among financial advisers surveyed in the weekly Investors' Intelligence poll from last Friday. The percentage of financial advisers who are bullish on the market fell to 55.4% from 55.7%, while bearish sentiment rose to 21.8% from 21.6%.
The percentage of financial advisers expecting a market correction fell/rose to 22.8% from 22.7%. In the week ended Tuesday, 57.70% of stocks listed on the New York Stock Exchange were above their 10-week moving averages. Also, 69.53% of NYSE stocks were above their 30-week averages.
TUESDAY: U.S. Stocks declined Tuesday in choppy trading. The volatility Index VIX rose 9.4% to 23.54. Equities closed down fot the day. The Dow dropped 46 pts today to 11006, the S&P fell 7 pts to 1180, and the Nasdaq shed 26 pts to 2498.
At 1:20 p.m. EST the Dow turned up into positive territory with 11059, up 6.75 as the dollar declined off resistance. U.S. stocks are modestly lower as investors overcome continued worries over the European sovereign-debt, the dollar's rise and encouraging data on U.S. manufacturing and consumer confidence. Tech shares are weaker in afternoon trading.
U.S. stocks trimmed their losses Tuesday as the dollar relaxed its gain at a key resistance point and U.S. economic data cushioned an early morning declined at the market open. Gold was given a boost due to China's approval to invest in foreign gold funds.
The Dow Jones Industrial Average fell 56 points, or 0.5% to 10997 in recent trading. Financial components led the measure's decline. J.P. Morgan Chase fell 1.3%, while American Express slid 1.3%. Energy companies were also weak as crude-oil prices dropped. Chevron fell 0.7%, while Exxon Mobil lost 0.5%.
The Nasdaq Composite shed 0.9% to 2502. The Standard & Poor's 500-share index fell 0.6% to 1180, weighed by its technology and energy sectors.Shares of Google Inc. (GOOG) slipped down more than 4.3% at $556.87 Tuesday on reports that the online search giant is offering to buy Groupon--a localized Web site geared toward discount shoppers--in a deal worth almost $6 billion. Google offered $5.3 billion for Groupon. Groupon would be Google's largest acquisition by far at nearly twice the size of its $3.1 billion takeover of DoubleClick in 2007 and far more than the $1.65 billion it paid for YouTube the year before.
U.S. stocks pared an early decline after two key data points encouraged investors. The Chicago Purchasing Managers' Index was 62.5 in November, better than the 60.0 reading economists were expecting. The manufacturing report "reminded people that it's not all doom and gloom," said Bill Vaughn, portfolio manager at Evercore Wealth Management. "The manufacturing sector of the economy has been strong for a while."
Separately, the Conference Board's November reading of consumer confidence came in at 54.1, better than economists' forecast of 52.5.
The data helped shave off some of the market's earlier heavy losses as concerns built that European sovereign-debt crisis could widen .
The Dow Jones Industrial Average fell more than 100 points, or 0.9% to 10952 in early trading. Hewlett-Packard led the measure's decline, shedding 1.6%. Energy components were also weak as crude-oil prices slid. Chevron fell 1.3%, while Exxon Mobil lost 1%.
The Nasdaq Composite shed 1.1% to 2498. The Standard & Poor's 500-share index fell 0.9% to 1177, weighed by its energy and technology sectors.
U.S. CONSUMER CONFIDENCE VERY WEAK - FEW JOBS MORE LAY-OFFS EVERY WEEK
Weak Consumer Confidence Shows Slight Gain
A lack of consumer confidence continues to loom over the holiday season although buying intentions among higher-income Americans has perked up, according to an ABC News index.
Overall U.S. consumer sentiment remains deeply depressed, with the index reading -45 for the latest week on its scale of +100 to -100. The reading was -47 the prior week. The index level has been this bad for a holiday kickoff just three times: in 1991, 2008 and last year.
ABC said consumer sentiment is up among Americans with incomes over $100,000 a year and positive for this group for the first time since mid-October.
In contrast to the overall picture, 61% of higher-income adults call this a good time to buy things they want and need. Among all Americans, the buying climate was rated positive by just 27%.
ABC said that while this positive trend could help retailers, as those higher-income earners have more disposable income, Americans who are better off financially account for just 12% of the nation's population.
The index is based on a random survey of 1,000 respondents nationwide. It measures typical Americans' confidence in three areas: the national economy, their finances and their willingness to spend money, according to the report. The poll has a margin of error of plus or minus three percentage points.
The index is derived by subtracting the negative response to each index question from the positive response to that question. The three resulting numbers are added and divided by three.
HOME PRICES CONTINUE TO FALL
Home prices are falling faster in the nation's largest cities, and a record number of foreclosures are expected to push prices down further through next year. U.S. home-purchase prices slid 1.9% in the third quarter from the spring--dropping 7.4% at an annualized rate--as the sales slowdown and expiration of the federal home-buyer tax credit weighed on values, according to Freddie Mac (FMCC). They were down 3.1% from the third quarter of last year.
In the period, Freddie said home values fell in each of the nine census divisions except New England. The Mountain division had the biggest drop from the second quarter, 4.9%.
Home prices dropped from a month earlier, and the rate of decline shows signs of accelerating, according to the S&P Case-Shiller home-price indexes. Its 20-city index drops 0.7%; economists had been expecting that index to rise 1.0%. Prices also dip in the third quarter.
Tuesday morning futures point to a slightly lower volatile open in the U.S. Commodities are declining against the dollar's rise in early morning trading before the bell. At 9:00 am the Case-Shiller 20-city Index, Chicago PMI, and Consumer Confidence figures will be reported.
Monday, the Dow ended lower (-39.51) to close at 11,052, the Nasdaq closed down (-9.35) to 2525.21, and the S&P closed down a little at 1187.76 down (-1.64).
The consumer-discretionary and technology sectors suffered the biggest declines, but the financial, energy and materials sectors managed to end the day in the black following a late-day rebound. Technology components were among its worst performers, with Hewlett-Packard (HP) down 1.4% after Gartner Inc. cut its worldwide personal-computer shipments forecast for the year. International Business Machines (IBM) was off 0.7%. Amazon.com climbed 1.3% and hit an all-time high during the session as analysts predicted the online retailer would gain market share in the current holiday shopping season. Nordstrom dropped 2.4%, Best Buy shed 3% and Macy's lost 2.2%.
After paring back most of its earlier losses, the U.S. Indexes were edging up in choppy trading into positive territory just prior to the close.
The Dow was off more than 140 points by noon. Monday before the dollar relaxed to climb. The Volatility Index VIX rose to 23.24.The S&P 500 slid under its 50-day moving average in early trade on Monday. All sectors declined against the rising dollar.
U.S. stocks and commodities fell Monday at the open against a rising dollar in early trading. The Dow Jones Industrial Average dropped 86 points, or 0.7%, to 11005. The measure briefly dipped below the key 11000 level to 10,948.The Nasdaq Composite declined 0.7% to 2518. The Standard & Poor's 500 index dropped 0.7% to 1181 with its materials and health-care sectors leading a broad decline.
The dollar climbed to two-month highs against the yen and euro last Friday and passed that mar today. The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, climbed 0.7% in early trading.
CRUDE OIL:
U.S. Crude Oil: $89.43 per barrelFRIDAY OIL FUTURES: Nymex Crude Settles Up $1.19 At $89.19/Bbl
$89 A BARREL, $90 TARGET RANGE
Light, sweet crude for January delivery recently traded $1.07, or 1.2%, higher at $89.07 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange recently traded 55 cents higher at $91.24 a barrel, after hitting its highest price since October 2008.
Crude futures moved higher Friday, as a weak report on U.S. employment failed to dash concerns that global oil supplies may be falling from their recent highs.
Light, sweet crude for January delivery recently traded 50 cents, or 0.6%, higher at $88.50 a barrel on the New York Mercantile Exchange, nearing fresh two-year highs. Brent crude on the ICE futures exchange recently traded 55 cents higher at $91.24 a barrel, after hitting its highest price since October 2008.
Front-month January reformulated gasoline blendstock, or RBOB, recently traded 1.15 cents lower at $2.3438 a gallon. January heating oil recently traded 2.11 cent higher at $2.4758 a gallon.
Friday morning,s light, sweet crude for January delivery recently traded 45 cents, or 0.5%, lower at $87.55 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 22 cents lower at $90.47 a barrel.
Front-month January reformulated gasoline blendstock, or RBOB, recently traded 1.33 cents lower at $2.3420 a gallon. January heating oil recently traded 0.51 cent lower at $2.4495 a gallon.
THURSDAY: OIL FUTURES: Crude Settles Up $1.25 At $88/Bbl
Crude Settles At Two-Year High
Crude futures settled at a two-year high Thursday, rising to $88 a barrel as economic data in the U.S. and actions in the euro zone to support debt markets lifted hopes for oil demand.
Light, sweet crude for January delivery settled $1.25, or 1.4%, higher on the New York Mercantile Exchange. Brent crude on the ICE futures exchange topped $90 a barrel, a key psychological barrier, settling $1.82 higher at $90.69 a barrel.
Gasoline futures also continued their rise Wednesday, hitting fresh six-month highs. Front-month January reformulated gasoline blend-stock, or RBOB, settled 5.49 cents higher at 2.3553 a gallon. January heating oil settled 4.90 cents higher at $2.4546 a gallon.
In early Morning trading Thursday, light, sweet crude for January delivery recently traded 12 cents lower at $86.63 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 31 cents higher at $89.18 a barrel.
WEDNESDAY: OIL FUTURES: Crude Settles Up $2.64 At $86.75/Bbl
DOE: US Crude Oil Stocks +1.066 Mln Bbl At 359.691 Mln Bbl
US Gasoline Stocks +0.561M Bbl In Wk; Seen Unch
US Refineries Ran At 82.6% Vs 85.5% Week Ago
US Distillate Stocks -0.194 Mln Bbl At 158.057 Mln Bbl
Wednesday Crude Holds Gains
Despite Minor US Inventory Build
Crude futures held early gains Wednesday despite a government report showing a surprise increase in U.S. oil inventories, as investors instead focused on improving data for the broader U.S. economy. Light, sweet crude for January delivery recently traded $1.60, or 1.9%, higher at $85.71 a barrel on the New York Mercantile Exchange, close to a high of $85.95 hit earlier in the session. Brent crude on the ICE futures exchange traded $1.77 higher at $87.69 a barrel.
U.S. oil inventories rose 1.1 million barrels last week, according to the U.S. Department of Energy's Energy Information Administration. The build surprised analysts who on average expected a 1.1 million barrel decrease.
Gasoline stockpiles rose 600,000 barrels compared to expectations for no change, while stocks of distillates, which include heating oil and gasoline, fell by 200,000 barrels. Analysts had expected a 1.1-million-barrel drop. Demand for oil and fuel products fell to the lowest level since mid-October.
Gasoline stockpiles posted a rise of 0.561 million barrels, to 210.2 million barrels, the department's Energy Information Administration said in its weekly report.
Distillate stocks, which include heating oil and diesel fuel, fell 0.194 million barrels to 158.1 million barrels, compared with analysts' forecast of a drop of 1.1 million barrels.
Refining capacity utilization fell 2.9 percentage points to 82.6%. Analysts had expected a 0.3 percentage point rise.
TUESDAY OIL FUTURES: Nymex Crude Closes Down $1.58 At $84.15/Bbl
MONDAY OIL FUTURES: Nymex Crude Settles Up $1.97 At $85.73/Bbl
Light, sweet crude for January delivery recently traded 63 cents, or 0.8%, higher at $84.39 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 60 cents higher at $86.18 a barrel.
Front-month December reformulated gasoline blend-stock, or RBOB, recently traded 3.44 cents higher at $2.2447 a gallon. December heating oil recently traded 2.24 cents higher at $2.3386 a gallon.
U.S. oil use in September rose 4.9% from a year earlier--the biggest gain since June 2004--government data released Monday show.
Revised demand averaged 19.507 million barrels a day, up 259,000 barrels a day, or 1.3%, from the preliminary estimate, and 913,000 barrels a day from a year ago, data from the Energy Information Administration show.
September marked the eighth straight monthly rise in year-on-year demand even as demand dropped by 0.9%, or 183,000 barrels a day, from a month earlier.
Third-quarter demand averaged 19.492 million barrels a day, up 769,333 barrels a day, or 4.1%, from a year ago. That's the highest demand in any quarter in the world's biggest oil consumer since the second quarter of 2008.
NATURAL GAS:
Natural Gas: $ 4.30FRIDAY: US GAS: Futures Settle Up 0.1% at $4.349/MMBtu
THURSDAY: US GAS: Futures Close Up 1.64% at $4.339/MMBtu
THURSDAY: Natural gas futures lost earlier gains Thursday after the U.S. government reported a narrowly lower-than-expected withdrawal from domestic supplies.
Natural gas for January delivery recently traded up 4 cents, or 0.94% higher, at $4.309 a million British thermal units on the New York Mercantile Exchange. Futures had traded as high as $4.38/MMbtu in advance of the U.S. Energy Information Administration's weekly storage report, which was released at 10:30 a.m. EST.
The government agency reported that natural gas inventories fell by 23 billion cubic feet during the week ended Nov. 26, lower than the consensus estimate of 26 bcf.
Wednesday: US GAS: Futures Settle Up 2.1% at $4.269/MMBtu
WEDNESDAY: Natural gas for January delivery recently traded 4.3 cents higher, or 1%, at $4.223 a million British thermal units on the New York Mercantile Exchange.
TUESDAY US GAS: Futures Settle Down 0.7% at $4.180/MMBtu...
MONDAY US GAS: Futures Close Down 4.2% at $4.214/MMBtu
Natural gas futures fell Tuesday as pressure from ample supplies outweighed expectations for increased gas-heating demand with colder-than-normal weather forecast for next week.
Natural gas for January delivery settled 3 cents lower, or 0.7%, at $4.180 a million British thermal units on the New York Mercantile Exchange, the second consecutive session of declines. The benchmark contract has traded between about $3.90/MMBtu and $4.40/MMBtu since late October.
U.S. natural gas stockpiles as of Nov. 19 stood at 3.837 trillion cubic feet, 9.5% above the five-year average and just short of the previous week's record high of 3.843 tcf, the Energy Information Administration said Wednesday.
MONDAY: Natural gas futures extended their earlier losses Monday, plunging by more than 4% as traders cashed out of the market to profit from its recent advance.
Natural gas for January delivery recently traded 18.1 cents lower, or 4.1%, at $4.218 a million British thermal units on the New York Mercantile Exchange, erasing much of the gains made last week amid forecasts for widespread cold during the first weeks of December.
PRECIOUS METALS:
Gold: $ 1,414Silver:$ 29.37
GOLD BREAKS RECORD HIGH $1,406
Friday's gold and silver prices moved up into record territory in early trading.
China took major positions in gold traded funds worldwide and investors moved in to precious metals for safety. Spot gold is at $1,406 an ounce and Silver is now trading over $29.20 an ounce.
The front-month contract, for December delivery, settled $16.90, or 1.2%, higher at $1,405.40 per troy ounce on the Comex division of the New York Mercantile Exchange. Gold last settled above $1,400 on Nov. 11. The December contract's $43 gain this week was the biggest since January. The most-actively traded contract, for February delivery, settled up 1.2% at $1,406.20 an ounce.
At Mid-Day the most actively traded contract, for February delivery, was recently up 1.3%, or $18.20, at $1,407.50 per troy ounce on the Comex division of the New York Mercantile Exchange. Gold last traded above the $1,400 mark on Nov. 11.
Engelhard Corp's base price for industrial gold bullion was $1406.54 per troy ounce, up $14.53 from previous. It's selling price for gold in fabricated form was $1512.03, up $15.62.
Handy & Harman's base price for gold was $1403.50 per troy ounce, up $14.50. The fabricated form price was $1515.78, up $15.66.
THURSDAY'S Comex gold futures held near steady Thursday as a stable dollar and little economic news left traders searching for direction ahead of Friday's U.S. employment report.
Gold prices flirted with the $1,400 mark Thursday but settled with modest gains as positive news from Europe boosted investor appetite for risk. The most actively traded contract, for February delivery, settled up 0.2%, or 41, at $1,389.30 per troy ounce on the Comex division of the New York Mercantile Exchange. Gold had reached an intra-day high of $1,399.70 Thursday, eclipsing Wednesday's high of $1398.30, but was again unable to sustain those levels throughout the day.
Platinum for January delivery, the most actively traded contract, settled up 1.7%, or $29.10, at $1,713.10 per troy ounce on the Nymex.
Silver for March delivery, the most actively traded contract, settled up 0.6%, or 15.9 cents, at $28.572 per troy ounce on the Comex division of the Nymex.
THURSDAY'S Comex gold futures held near steady Thursday as a stable dollar and little economic news left traders searching for direction ahead of Friday's U.S. employment report.
Gold prices flirted with the $1,400 mark Thursday but settled with modest gains as positive news from Europe boosted investor appetite for risk. The most actively traded contract, for February delivery, settled up 0.2%, or 41, at $1,389.30 per troy ounce on the Comex division of the New York Mercantile Exchange. Gold had reached an intra-day high of $1,399.70 Thursday, eclipsing Wednesday's high of $1398.30, but was again unable to sustain those levels throughout the day.
Platinum for January delivery, the most actively traded contract, settled up 1.7%, or $29.10, at $1,713.10 per troy ounce on the Nymex.
Silver for March delivery, the most actively traded contract, settled up 0.6%, or 15.9 cents, at $28.572 per troy ounce on the Comex division of the Nymex.
Palladium futures hit a 9-year high, breaking through the psychologically important $750 per troy ounce mark as Wednesday's strong auto sales continued to support buying interest. Palladium for March delivery, the most actively traded contract, settled up 4.3%, or $28.85, at $763.70 per troy ounce on the Nymex. The precious metal was last trading at these price levels in April 2001.
Settlements (Range includes Floor and Electronic Trading):
London PM Gold Fix: $1,389.00; previous PM $1,385.50
Feb gold $1,389.30, up $1; Range $1,385.10-$1,399.70
Mar silver $28.572, up 15.9 cents; Range $28.330-$29.080
Jan platinum $1,713.10, up $29.10; Range $1,682.00-$1,729.90
Mar palladium $763.70, up $31.40; Range $731.70-$773.90
In morning trading, the most actively traded contract, for February delivery, was recently up $1.30, or 0.1%, at $1,389.60 per troy ounce on the Comex division of the New York Mercantile Exchange.
Engelhard Corp's base price for industrial gold bullion was $1392.01 per troy ounce, up $3.50 from previous. It's selling price for gold in fabricated form was $1496.41, up $3.77.
Handy & Harman's base price for gold was $1389.00 per troy ounce, up $3.50. The fabricated form price was $1500.12, up $3.78.
WEDNESDAY: The most actively traded futures contract, for February delivery, gained $2.20 to settle at $1,388.30 a troy ounce on the Comex division of the New york Mercantile Exchange. It hit $1,398.30 in electronic trading overnight, the contract's highest point since Nov. 12.
Additional precious metals traded in New York also rose. Comex March silver added 0.7%. Nymex January platinum gained 1%, while March palladium on the exchange rose 4.2%. Palladium trades in a less liquid market than gold, often exacerbating volatility.
Settlements (Range includes Floor and Electronic Trading):
London PM Gold Fix: $1,385.50; previous PM $1,383.50
Feb gold $1,388.30, up $2.20; Range $1,383.00-$1,398.30
Mar silver $28.413, up 20.1 cents; Range $28.020-$28.880
Jan platinum $1,684.00, up $17.60; Range $1,658.40-$1,692.30
Mar palladium $732.30, up $29.30; Range $712.05-$738.00
TUESDAY: Gold was given a boost after China approved investment in foreign gold funds.
The most-actively traded contract, for February delivery, gained $18.60, or 1.4%, to settle at $1,386.10 an ounce on the Comex division of the New York Mercantile Exchange.
Settlements (Range includes Floor and Electronic Trading):
London PM Gold Fix: $1,383.50; previous PM $1357.00
Feb gold $1,386.10, up $18.60; Range $1,360.00-$1,391.10
Mar silver $28.212, up $1.019; Range $26.920-$28.390
Jan platinum $1,666.40, up $21.80; Range $1,639.50-$1,668.50
Mar palladium $703.00, up $8.15; Range $686.25-$707.00
Engelhard Corp's base price for industrial gold bullion was $1386.50 per troy ounce, up $26.54 from previous. It's selling price for gold in fabricated form was $1490.49, up $28.54.
Handy & Harman's base price for gold was $1383.50 per troy ounce, up $26.50. The fabricated form price was $1494.18, up $28.62.
MONDAY: Engelhard Corp's base price for industrial gold bullion was 1359.96 per troy ounce, down 1.13 from previous. It's selling price for gold in fabricated form was $1465.56, down 0.88.
Handy & Harman's base price for gold was 1357 per troy ounce, down 1.13. The fabricated form price was 1465.56, down 1.13.
U.S. TREASURYS/BONDS:
Feb gold $1,389.30, up $1; Range $1,385.10-$1,399.70
Mar silver $28.572, up 15.9 cents; Range $28.330-$29.080
Jan platinum $1,713.10, up $29.10; Range $1,682.00-$1,729.90
Mar palladium $763.70, up $31.40; Range $731.70-$773.90
In morning trading, the most actively traded contract, for February delivery, was recently up $1.30, or 0.1%, at $1,389.60 per troy ounce on the Comex division of the New York Mercantile Exchange.
Engelhard Corp's base price for industrial gold bullion was $1392.01 per troy ounce, up $3.50 from previous. It's selling price for gold in fabricated form was $1496.41, up $3.77.
Handy & Harman's base price for gold was $1389.00 per troy ounce, up $3.50. The fabricated form price was $1500.12, up $3.78.
WEDNESDAY: The most actively traded futures contract, for February delivery, gained $2.20 to settle at $1,388.30 a troy ounce on the Comex division of the New york Mercantile Exchange. It hit $1,398.30 in electronic trading overnight, the contract's highest point since Nov. 12.
Additional precious metals traded in New York also rose. Comex March silver added 0.7%. Nymex January platinum gained 1%, while March palladium on the exchange rose 4.2%. Palladium trades in a less liquid market than gold, often exacerbating volatility.
Settlements (Range includes Floor and Electronic Trading):
London PM Gold Fix: $1,385.50; previous PM $1,383.50
Feb gold $1,388.30, up $2.20; Range $1,383.00-$1,398.30
Mar silver $28.413, up 20.1 cents; Range $28.020-$28.880
Jan platinum $1,684.00, up $17.60; Range $1,658.40-$1,692.30
Mar palladium $732.30, up $29.30; Range $712.05-$738.00
TUESDAY: Gold was given a boost after China approved investment in foreign gold funds.
The most-actively traded contract, for February delivery, gained $18.60, or 1.4%, to settle at $1,386.10 an ounce on the Comex division of the New York Mercantile Exchange.
Settlements (Range includes Floor and Electronic Trading):
London PM Gold Fix: $1,383.50; previous PM $1357.00
Feb gold $1,386.10, up $18.60; Range $1,360.00-$1,391.10
Mar silver $28.212, up $1.019; Range $26.920-$28.390
Jan platinum $1,666.40, up $21.80; Range $1,639.50-$1,668.50
Mar palladium $703.00, up $8.15; Range $686.25-$707.00
Engelhard Corp's base price for industrial gold bullion was $1386.50 per troy ounce, up $26.54 from previous. It's selling price for gold in fabricated form was $1490.49, up $28.54.
Handy & Harman's base price for gold was $1383.50 per troy ounce, up $26.50. The fabricated form price was $1494.18, up $28.62.
MONDAY: Engelhard Corp's base price for industrial gold bullion was 1359.96 per troy ounce, down 1.13 from previous. It's selling price for gold in fabricated form was $1465.56, down 0.88.
Handy & Harman's base price for gold was 1357 per troy ounce, down 1.13. The fabricated form price was 1465.56, down 1.13.
U.S. TREASURYS/BONDS:
FRIDAY: Demand for Treasurys rose, pushing yield on the 10-year note down to 2.98%.
THURSDAY:Demand for Treasurys declined, pushing yield on the 10-year note up to 2.99%.
Wednesday Treasurys declined, sending the yield on the benchmark 10-year note higher to 2.936%.The yield on the 10-year Treasury note, which moves inversely to price, rose to 2.91 percent from 2.80 percent late yesterday.
Tuesday, Treasurys were mixed, with declined in the two-year note lifted its yield to 0.52% while increased demand for the 10-year note pushed its yield down to 2.82%.
THURSDAY:Demand for Treasurys declined, pushing yield on the 10-year note up to 2.99%.
Wednesday Treasurys declined, sending the yield on the benchmark 10-year note higher to 2.936%.The yield on the 10-year Treasury note, which moves inversely to price, rose to 2.91 percent from 2.80 percent late yesterday.
Tuesday, Treasurys were mixed, with declined in the two-year note lifted its yield to 0.52% while increased demand for the 10-year note pushed its yield down to 2.82%.
FRIDAY, DECEMBER 3, 2010 4:30 PM EST
3 Month 0.11% -0.01 (-8.33%)
6 Month 0.18% 0.00 (0.00%)
2 Year 0.47% +0.02 (4.44%)
5 Year 1.61% +0.09 (5.92%)
10 Year 3.00% +0.10 (3.45%)
30 Year 4.31% +0.09 (2.13%)
____________________________________________________________
Canadian Market:
Toronto Stocks Close Higher Friday
Materials and material suppliers were higher Friday as gold and silver broke record highs against a declining U.S. dollar. Most other sectors were marginally lower.
The S&P/TSX Composite Index rose 15.42 points, or 0.12%, to 13178.95, advances exceeded declines 887 to 740 and trading volume was 611.50 million shares, up from Thursday's total of 564.80 million shares.
The S&P/TSX 60 Index closed down 0.97 points, or 0.13%, to 752.21.
CANADA JOBLESS RATE DECLINED
Canada's economy created fewer than expected jobs last month but the jobless rate fell unexpectedly to the lowest level in almost two years, as fewer youth participated in the labor market.
Toronto Stocks Rise Thursday
The stock market was modestly higher Thursday, as strength in the materials and energy groups helped to offset weakness in financials after Toronto-Dominion Bank and Canadian Imperial Bank of Commerce both reported lower fourth-quarter results. Bombardier's 3Q earnings fall 15% to $143 million, or 8c a share, on lower revenue, missing analyst expectations, as a shaky global economic recovery keeps business and commercial aircraft orders suppressed..
At 11:45 a.m. EST, the S&P/TSX Composite Index was up 31.03 points, or 0.24%, at 13179.38 and advances led declines 760 to 688. Trading volume was 270.90 million shares.
The S&P/TSX 60 Index was up 1.20 points, or 0.16%, to 754.13 points. At the open, Materials and Energies are leading the way today as the S&P/TSX Composite is rising at 11:00 am EST 13169.44.
Canadian Prime Minister Stephen Harper said Thursday economic growth has "moderated significantly" after expanding strongly in the early part of 2010.
"This is a pattern in the global economy, so it does have us concerned," Harper said in televised remarks from Mississauga, Ont.
But he said he's "cautiously optimistic going forward." "Our own read is that private domestic demand should be sufficient going forward to sustain the recovery that we do have," he said.
Harper reiterated that the global recovery is fragile and there are "considerable risks" outside the country. He urged Europe and other countries to deal "strongly, quickly and aggressively" with their debt problems. Harper announced the deadline to complete infrastructure stimulus projects will be extended by seven months to October 2011. He said there was "no harm" in allowing more time to complete the projects and keep people employed for longer.
Toronto Stocks Up Wednesday
At 11:45 a.m. EST, the S&P/TSX Composite Index was up 31.03 points, or 0.24%, at 13179.38 and advances led declines 760 to 688. Trading volume was 270.90 million shares.
The S&P/TSX 60 Index was up 1.20 points, or 0.16%, to 754.13 points. At the open, Materials and Energies are leading the way today as the S&P/TSX Composite is rising at 11:00 am EST 13169.44.
PRIME MINISTER URGES FORWARD MOVEMENT
Economic Growth Has Moderated "Significantly"Canadian Prime Minister Stephen Harper said Thursday economic growth has "moderated significantly" after expanding strongly in the early part of 2010.
"This is a pattern in the global economy, so it does have us concerned," Harper said in televised remarks from Mississauga, Ont.
But he said he's "cautiously optimistic going forward." "Our own read is that private domestic demand should be sufficient going forward to sustain the recovery that we do have," he said.
Harper reiterated that the global recovery is fragile and there are "considerable risks" outside the country. He urged Europe and other countries to deal "strongly, quickly and aggressively" with their debt problems. Harper announced the deadline to complete infrastructure stimulus projects will be extended by seven months to October 2011. He said there was "no harm" in allowing more time to complete the projects and keep people employed for longer.
Toronto Stocks Up Wednesday
.Toronto stocks jumped up Wednesday the market open lead by energy and the financial sectors. Toronto's main stock index gained almost 200 points with energy issues buoyed by strong manufacturing data from China and financials buoyed by yesterday's strong quarterly result and dividend hike from National Bank (NA.TO), which hit a new year high of $70.09.
Boosting the index too were the two most actively traded stocks, Eastern Platinum Limited (ELR.TO) and Baja Mining Corp. (BAJ.TO). Eastern Platinum Ltd. (ELR.TO) gained almost 10% with more than 14 million shares traded.
Canada Small Business Confidence Declines
An index of Canadian small business confidence fell back in November after a rebound the prior month from four consecutive declines that took it to the highest level since May. The Canadian Federation of Independent Business said Wednesday its Business Barometer Index fell to 64.0 points from 66.9 in October.
"This level of optimism equates to an economy that is growing, but at unspectacular rates," CFIB vice-president and chief economist Ted Mallett said in a report. The index typically ranges between 65 and 75 when the economy is growing. Still, Mallett said several indicators suggest the foundation for future growth is strengthening. He said new orders, inventory levels and capital investment plans for information technology and communications equipment are at their highest levels since the recession.
Although new orders and use of staff overtime are gradually trending up, neither is high enough to justify significant investments in employment, he said. Only 14% of business owners plan to hire more full-time staff in the next three months, which Mallett said was a low level even in recessionary conditions. Some 16% intend to cut back staff and 70% plan to keep staffing steady.
Wage and price pressures are light. On average, business owners expect to raise prices by an 1.3% over the next year, and hold wage growth at 1.5%.
Website: http://www.cfib.ca
Toronto Stocks Up Tuesday
Toronto stocks moved up Tuesday afternoon as the dollar eased and materials soared. According to preliminary data, the S&P/TSX Composite Index rose 57.23 points, or 0.44%, to 12952.88, advances outpaced declines 861 to 794 and trading volume was 636.0 million shares, up from Monday's total of 473.2 million shares.The S&P/TSX 60 Index closed up 2.69 points, or 0.36%, to 741.34.
Stocks were trading in mixed trading at Tuesday's open. Materials lead the indexes. Tuesday, the Canadian GDP report disappointed some investors, but the core growth figures are in line to show growth this year.
GDP Report
Website: http://www.statcan.gc.ca
Canada's economy decelerated faster than expected in the third quarter and lagged U.S. growth, dragged down by declines in housing investment and exports, a result that's likely to see the Bank of Canada keep interest rates steady again next week.
Gross domestic product expanded an annualized 1.0% in July through September, slowing from an upwardly revised 2.3% in the second quarter - originally estimated at 2% - and a further mark down of first quarter growth to 5.6%, Statistics Canada said Tuesday. Growth in the quarter ended September was the slowest since a 0.9% gain a year ago and was well behind the 2.5% gain in the U.S.
The market had expected GDP to grow 1.4%, while the Bank of Canada's Monetary Policy Report last month had forecast growth of 1.6%. On a quarterly basis, GDP slowed to 0.3% from 0.6% in April through June.
The hand-off into the fourth quarter was weak, with monthly GDP unexpectedly falling 0.1% in September, the first decline since August 2009, as oil and gas extraction and manufacturing output shrank. The drop "implies weak momentum" going into the fourth quarter, said Paul Ferley, assistant chief economist at RBC Capital Markets in Toronto. The market had expected a 0.1% gain following a 0.3% expansion in August, which wasn't revised.
The Canadian dollar fell after the data were published at 8:30 a.m. EST. The U.S. dollar was at C$1.0278, up from C$1.0234 just before the release and C$1.0186 at Monday's official close.
In late afternoon trading the energy and financial sectors lead the composite to a positive close. The S&P/TSX Composite Index rose 2.94 points, or 0.02%, to 12895.65, but declines exceeded advances 903 to 746 and trading volume was 473.20 million shares, up from Friday's total of 382.8 million shares. The S&P/TSX 60 Index closed up 0.52 points, or 0.07%, to 738.65.
The Canadian dollar ended higher Monday, outperforming most other major currencies as it benefited from strength in crude oil futures and its close ties with the U.S. dollar.
The U.S. dollar was at C$1.0178 at 3:48 p.m. EST, from C$1.0207 at 8:00 a.m. EST (1300 GMT) and C$1.0201 late Friday.
In early trading the S&P/TSX Composite Index was down 65.09 points, or 0.50%, at 12827.62 and declines led advances 858 to 548. Trading volume was 201.70 million shares.
The S&P/TSX 60 Index was down 4.20 points, or 0.57%, to 733.93 points.
Economic reports expected this week include the Canadian gross domestic product report. The Toronto stock market will hear a slew of fourth-quarter earnings reports from Canada's biggest banks, which are expected to paint a healthier picture of Canada's financial institutions. Soft commodity prices will also have a negative effect on the TSX in next few weeks as news of European debt continues to dominate the headlines and traders take some profits after a run up in prices in the past few months.
Royal Bank of Canada (TSX:RY), Bank of Montreal (TSX:BMO) TD Canada Trust (TSX:TD),CIBC (TSX:CM) and Scotiabank (TSX:BNS) and National Bank of Canada (TSX:NA) are scheduled to report their fourth quarter earnings over the next two weeks.
TORONTO - The TSX Venture Exchange was trading at 2,057 up 7.99 points. The volume at closing was 343.6 million shares.
Toronto Indexes, Friday CLOSING; 4:10 PM EST Composite Up 15.42
S&P/TSX Composite 13178.95 up 15.42 or 0.1%
S&P/TSX 60 Index 752.21 off 0.97 or 0.1%
Financials 180.84 off 1.51 or 0.8%
Materials 441.87 up 6.92 or 1.6%
Energy 307.24 up 0.60 or 0.2%
Industrials 107.50 off 0.65 or 0.6%
IT 30.45 off 0.14 or 0.5%
Volume Friday Thursday
3-4:15 114.2M 99.8M
9:30-4:15 611.5M 564.8M
Boosting the index too were the two most actively traded stocks, Eastern Platinum Limited (ELR.TO) and Baja Mining Corp. (BAJ.TO). Eastern Platinum Ltd. (ELR.TO) gained almost 10% with more than 14 million shares traded.
Canada Small Business Confidence Declines
An index of Canadian small business confidence fell back in November after a rebound the prior month from four consecutive declines that took it to the highest level since May. The Canadian Federation of Independent Business said Wednesday its Business Barometer Index fell to 64.0 points from 66.9 in October.
"This level of optimism equates to an economy that is growing, but at unspectacular rates," CFIB vice-president and chief economist Ted Mallett said in a report. The index typically ranges between 65 and 75 when the economy is growing. Still, Mallett said several indicators suggest the foundation for future growth is strengthening. He said new orders, inventory levels and capital investment plans for information technology and communications equipment are at their highest levels since the recession.
Although new orders and use of staff overtime are gradually trending up, neither is high enough to justify significant investments in employment, he said. Only 14% of business owners plan to hire more full-time staff in the next three months, which Mallett said was a low level even in recessionary conditions. Some 16% intend to cut back staff and 70% plan to keep staffing steady.
Wage and price pressures are light. On average, business owners expect to raise prices by an 1.3% over the next year, and hold wage growth at 1.5%.
Website: http://www.cfib.ca
Toronto Stocks Up Tuesday
Toronto stocks moved up Tuesday afternoon as the dollar eased and materials soared. According to preliminary data, the S&P/TSX Composite Index rose 57.23 points, or 0.44%, to 12952.88, advances outpaced declines 861 to 794 and trading volume was 636.0 million shares, up from Monday's total of 473.2 million shares.The S&P/TSX 60 Index closed up 2.69 points, or 0.36%, to 741.34.
Stocks were trading in mixed trading at Tuesday's open. Materials lead the indexes. Tuesday, the Canadian GDP report disappointed some investors, but the core growth figures are in line to show growth this year.
GDP Report
Website: http://www.statcan.gc.ca
Canada's economy decelerated faster than expected in the third quarter and lagged U.S. growth, dragged down by declines in housing investment and exports, a result that's likely to see the Bank of Canada keep interest rates steady again next week.
Gross domestic product expanded an annualized 1.0% in July through September, slowing from an upwardly revised 2.3% in the second quarter - originally estimated at 2% - and a further mark down of first quarter growth to 5.6%, Statistics Canada said Tuesday. Growth in the quarter ended September was the slowest since a 0.9% gain a year ago and was well behind the 2.5% gain in the U.S.
The market had expected GDP to grow 1.4%, while the Bank of Canada's Monetary Policy Report last month had forecast growth of 1.6%. On a quarterly basis, GDP slowed to 0.3% from 0.6% in April through June.
The hand-off into the fourth quarter was weak, with monthly GDP unexpectedly falling 0.1% in September, the first decline since August 2009, as oil and gas extraction and manufacturing output shrank. The drop "implies weak momentum" going into the fourth quarter, said Paul Ferley, assistant chief economist at RBC Capital Markets in Toronto. The market had expected a 0.1% gain following a 0.3% expansion in August, which wasn't revised.
The Canadian dollar fell after the data were published at 8:30 a.m. EST. The U.S. dollar was at C$1.0278, up from C$1.0234 just before the release and C$1.0186 at Monday's official close.
Toronto Stocks Higher
Monday, Toronto Stocks Close MixedIn late afternoon trading the energy and financial sectors lead the composite to a positive close. The S&P/TSX Composite Index rose 2.94 points, or 0.02%, to 12895.65, but declines exceeded advances 903 to 746 and trading volume was 473.20 million shares, up from Friday's total of 382.8 million shares. The S&P/TSX 60 Index closed up 0.52 points, or 0.07%, to 738.65.
The Canadian dollar ended higher Monday, outperforming most other major currencies as it benefited from strength in crude oil futures and its close ties with the U.S. dollar.
The U.S. dollar was at C$1.0178 at 3:48 p.m. EST, from C$1.0207 at 8:00 a.m. EST (1300 GMT) and C$1.0201 late Friday.
In early trading the S&P/TSX Composite Index was down 65.09 points, or 0.50%, at 12827.62 and declines led advances 858 to 548. Trading volume was 201.70 million shares.
The S&P/TSX 60 Index was down 4.20 points, or 0.57%, to 733.93 points.
Reports This Week
Economic reports expected this week include the Canadian gross domestic product report. The Toronto stock market will hear a slew of fourth-quarter earnings reports from Canada's biggest banks, which are expected to paint a healthier picture of Canada's financial institutions. Soft commodity prices will also have a negative effect on the TSX in next few weeks as news of European debt continues to dominate the headlines and traders take some profits after a run up in prices in the past few months.
Royal Bank of Canada (TSX:RY), Bank of Montreal (TSX:BMO) TD Canada Trust (TSX:TD),CIBC (TSX:CM) and Scotiabank (TSX:BNS) and National Bank of Canada (TSX:NA) are scheduled to report their fourth quarter earnings over the next two weeks.
TORONTO - The TSX Venture Exchange was trading at 2,057 up 7.99 points. The volume at closing was 343.6 million shares.
Toronto Indexes, Friday CLOSING; 4:10 PM EST Composite Up 15.42
S&P/TSX Composite 13178.95 up 15.42 or 0.1%
S&P/TSX 60 Index 752.21 off 0.97 or 0.1%
Financials 180.84 off 1.51 or 0.8%
Materials 441.87 up 6.92 or 1.6%
Energy 307.24 up 0.60 or 0.2%
Industrials 107.50 off 0.65 or 0.6%
IT 30.45 off 0.14 or 0.5%
Volume Friday Thursday
3-4:15 114.2M 99.8M
9:30-4:15 611.5M 564.8M
____________________________________________________________
South American Markets:
BRAZIL:
Brazil's central bank rolled out a series of measures Friday to tame rapid credit growth, a move that follows similar efforts by China.
BRAZIL'S STOCKS DECLINED FRIDAY
Brazil’s major equity index slipped Friday, with banking stocks hit after the country’s central bank implemented credit-tightening measures as part of a larger bid to cool inflation.
Brazil’s Bovespa index (BVSP 69,766, +239.02, +0.34%) recently fell 2 points to 69,525, but pared a decline of as much as 0.8%. For the week, the index is up about 2%.
The rough ride earlier in the session stemmed from the central bank’s announcement that it will raise reserve requirements on term deposits to 20% from 15%, as well as raise additional requirements on demand deposits to 12% from 8%.
It’s also increasing capital requirements on consumer loans with maturity of more than 24 months to 16.5% of the loan from 11%, with the move aimed at reducing credit expansion to consumers.
It’s also increasing capital requirements on consumer loans with maturity of more than 24 months to 16.5% of the loan from 11%, with the move aimed at reducing credit expansion to consumers.
Among banking stocks, shares of Itau Unibanco (ITUB 23.73, -0.05, -0.20%), the country’s largest private bank, fell 1.5% and rival Banco Bradesco (BBD 20.48, +0.09, +0.44%) lost 1.7%. Banco Santander Brasil(BSBR 13.32, -0.48, -3.48%) shares slumped 2.7%. Government-run Banco do Brasil shares fell 2.5%.
In the foreign-exchange market, Brazil’s currency (USDBRL 1.6870, -0.0085, -0.5013%) rose against the dollar, trading at 1.684 reals compared with 1.703 reals on Thursday.
Brazil Stocks End Higher Thursday
Brazil's Bovespa stocks index ended higher Thursday as shares got some lift from favorable local data and encouraging signals from abroad. The main Sao Paulo stocks index ended 0.3% higher at 69527 points, after ending at 69345 Wednesday. Volume was moderate, with 5.8 billion Brazilian reais ($3.4 billion) in shares changing hands.
The index began the session gaining after the euro zone posted third-quarter economic growth within market expectations. The region reported 1.9% growth versus the same quarter in 2009 and 0.4% growth from the second quarter of this year.
Traders said the signals helped bolster European markets and gave support to the global commodities sector, where Brazil is a key participant.
The trend was also supported during the session with continued growth in Brazil's industrial production, which rose by 0.4% in October from September and by 2.1% from October 2009, according to the country's IBGE statistics institute.
The materials sector shares were among the stronger advancers.
Steel maker Gerdau (GGB, GGBR4.BR) rose 3.6% to BRL21.24, and mining giant Vale (VALE, VALE5.BR) rose 0.6% to BRL49.50. In the banking sector, top private bank Banco Itau-Unibanco (ITUB, ITUB4.BR) was up 0.4% to BRL40.15, and rival Bradesco (BBD, BBDC4.BR) was 1.1% higher at BRL34.70.
Shares of state-controlled oil company Petrobras (PBR, PETR4.BR) rose 0.6% to BRL25.40, leading fixed-line telecom operator Oi (TNE, TNLP4.BR) was up 0.7% to BRL24.89, and leading airline Tam (TAMM4.BR) fell 0.2% to BRL42.25.
Brazil Stocks Close Lower Tuesday
Brazilian share prices closed lower Tuesday, after a rocky session, on renewed fiscal worries in Europe. Brazil's benchmark Ibovespa stocks index closed 0.30% lower at 67,705 points. Volume was moderate to heavy at 10.1 billion Brazilian reais ($5.87 billion).
Brazilian share prices spent most of the session in negative territory Tuesday on renewed worries about the fiscal health of a number of European countries, including Portugal and Spain. The fiscal worries led to losses on European stock exchanges Tuesday.
A brief, late-session rally led by Brazilian domestic funds fizzled as Wall Street prices declined.
Investors were also worried about a decline in the Brazilian government's primary budget surplus in October.
The October figures showed a decline in the surplus to the equivalent of 2.85% of gross domestic product from 2.96% in September. The figures put Brazil further behind its goal of a 2010 primary surplus equal to 3.1% of GDP.
Blue chips were mostly lower Tuesday. State oil company Petrobras (PBR, PETR4.BR) retreated 0.45% to close at BRL24.59 on lower international oil prices.
Mining major Vale SA (VALE, VALE5.BR) saw its shares fall 1.03% to BRL48.00.Telecom leader Tele Norte Leste Participacoes SA (TNE, TNLP4.BR), or Oi, declined 1.85% to BRL23.90. Steel maker Usiminas (USIM5.BR, USNZY) dropped 2.96% to close at BRL18.70. Aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ, EMBR3.BR), or Embraer, was a winner, rising 2.14% to BRL12.39. Minas Gerais utility Cemig (CMIG4.BR) gave up 0.11% to close at BRL28.50.
Brazil Stocks Close Lower Monday
Brazil's benchmark Ibovespa stocks index closed 0.47% lower at 67,908 points, down from Friday's close at 68,226 points. Trading volume was moderate at 5.19 billion Brazilian reais ($3.02 billion).
Oil giant Petroleo Brasileiro SA (PBR, PETR4.BR), nonetheless, closed 0.57% higher at 24.74 Brazilian reais ($14.38), on higher oil prices. Miner Vale SA (VALE, VALE5.BR) rose 0.23% to BRL48.63. Steel maker Gerdau SA (GGBR4.BR) slipped 1.69% to BRL19.73. Food manufacturer BRF Foods (BRFS3.BR) rose 0.38% to BRL24.83. Utility Cemig (CMIG4.BR) shed 0.24% to BRL28.54. Airline TAM SA (TAMM4.BR) fell 0.97% to BRL41.89.
BRAZIL'S SURPLUS GROWS
Brazil Central Government Oct Surplus BRL7.72BWith support from strong tax receipts and a resulting federal treasury surplus, Brazil's central government continued to increase its operating surplus in October, though at a slightly slower pace than last year, the government reported Monday.
The October result brought the country's central government budget surplus for the first 10 months of the year to BRL63.38 billion, or the equivalent of 2.19% of gross domestic product.
The central government, which includes the treasury, the publicly-administered social security system and the central bank, posted a 7.72 billion Brazilian real ($4.48 billion) primary budget surplus in October.
The October result, which came within market forecasts, was narrowed from a BRL26.02 billion surplus in September this year, and from a BRL11.23 billion surplus in October 2009.
The latest central government monthly surplus was composed of a federal treasury surplus of BRL10.01 billion, a social security administration deficit of BRL2.17 billion, and a central bank deficit of BRL117.3 million.
CHILE:
Chile Stocks Close Lower Friday
Chile's blue-chip IPSA index ended lower Friday, although it pared back much of its earlier losses, as it tracked then-slumping U.S. markets.
The IPSA ended 0.2% lower at 4970.02, while market volume fell to 71.4 billion Chilean pesos ($148.8 million), compared to CLP137 billion the prior session.
Since several of the IPSA's heavier-weighted shares also trade in New York, the IPSA often tracks the Dow Jones Industrial Average. As the Chilean market was closing, the DJIA was down 20 points, or 0.2%, to 11343 after the U.S. unemployment rate rose to its highest level since April.
Among dually listed shares, power generator Endesa fell 1.5% to CLP916.59, while energy holding company Enersis, Endesa's parent, lost 1% to CLP229.57.
Also declining, heavy-weighted fuel and forestry conglomerate Copec shed 0.6% to CLP9,300.20 and pulp and paper producer CMPC decreased 1.7% to CLP26,263 as investors continued to book profits.
With the IPSA having risen 39% this year, analysts see limited upside potential for the remainder of 2010.
"We see the IPSA moving laterally for the rest of the year. It had a long rally this year, but the IPSA lost the additional boost it was receiving from robust earnings now with [the third-quarter] earnings season over," said analyst Christopher Baillarie at local investment bank BCI.
In other market news, the peso ended sharply stronger against the dollar, moving closer to a 31-month high, as the euro shot higher versus the dollar and international copper prices gained.
The peso ended at CLP479.50 to the dollar compared to Thursday's close of CLP483.80 after trading in a range of CLP479.50 to CLP483.80.
As the peso nears the 31-month high against the dollar, exporters, in the agricultural sector particularly, will likely step up demands for currency market intervention because the local currency's strength hurts the competitiveness of their products.
In the bond market, yields on inflation-indexed Chilean central bank bonds, or BCUs, again posted very slight or no variations in a thin session.
The yield on five-year BCU bonds ended at 2.69%, unchanged from the prior two sessions, while the yield on 10-year BCUs closed at 2.87%, from 2.88% on Thursday.
Chile Stocks End Higher Thursday
The central government, which includes the treasury, the publicly-administered social security system and the central bank, posted a 7.72 billion Brazilian real ($4.48 billion) primary budget surplus in October.
The October result, which came within market forecasts, was narrowed from a BRL26.02 billion surplus in September this year, and from a BRL11.23 billion surplus in October 2009.
The latest central government monthly surplus was composed of a federal treasury surplus of BRL10.01 billion, a social security administration deficit of BRL2.17 billion, and a central bank deficit of BRL117.3 million.
CHILE:
Chile Stocks Close Lower Friday
Chile's blue-chip IPSA index ended lower Friday, although it pared back much of its earlier losses, as it tracked then-slumping U.S. markets.
The IPSA ended 0.2% lower at 4970.02, while market volume fell to 71.4 billion Chilean pesos ($148.8 million), compared to CLP137 billion the prior session.
Since several of the IPSA's heavier-weighted shares also trade in New York, the IPSA often tracks the Dow Jones Industrial Average. As the Chilean market was closing, the DJIA was down 20 points, or 0.2%, to 11343 after the U.S. unemployment rate rose to its highest level since April.
Among dually listed shares, power generator Endesa fell 1.5% to CLP916.59, while energy holding company Enersis, Endesa's parent, lost 1% to CLP229.57.
Also declining, heavy-weighted fuel and forestry conglomerate Copec shed 0.6% to CLP9,300.20 and pulp and paper producer CMPC decreased 1.7% to CLP26,263 as investors continued to book profits.
With the IPSA having risen 39% this year, analysts see limited upside potential for the remainder of 2010.
"We see the IPSA moving laterally for the rest of the year. It had a long rally this year, but the IPSA lost the additional boost it was receiving from robust earnings now with [the third-quarter] earnings season over," said analyst Christopher Baillarie at local investment bank BCI.
In other market news, the peso ended sharply stronger against the dollar, moving closer to a 31-month high, as the euro shot higher versus the dollar and international copper prices gained.
The peso ended at CLP479.50 to the dollar compared to Thursday's close of CLP483.80 after trading in a range of CLP479.50 to CLP483.80.
As the peso nears the 31-month high against the dollar, exporters, in the agricultural sector particularly, will likely step up demands for currency market intervention because the local currency's strength hurts the competitiveness of their products.
In the bond market, yields on inflation-indexed Chilean central bank bonds, or BCUs, again posted very slight or no variations in a thin session.
The yield on five-year BCU bonds ended at 2.69%, unchanged from the prior two sessions, while the yield on 10-year BCUs closed at 2.87%, from 2.88% on Thursday.
Chile Stocks End Higher Thursday
Chile's blue-chip Ipsa index ended higher Thursday, lifted with global markets after moves by the European Central Bank quelled fears for now about euro-zone debt.
The Ipsa ended 0.4% higher at 4978.28, while market volume slipped to 137.0 billion Chilean pesos ($283.2 million). The prior session's volume was unusually high at CLP243.6 billion as the initial public offering of Chilean seafood exporter and farmed-salmon producer Pesquera Camanchaca (CAMANCHACA.SN) accounted for more than half the volume.
"The European Central Bank injected a well-needed dose of optimism into global markets," said Ximena Garcia, deputy director of studies at local brokerage EuroAmerica. "That's what is lifting Chilean equity."
Among dually listed shares, flagship carrier LAN Airlines (LFL, LAN.SN) gained 0.4% to CLP15,199.00; specialty chemical and fertilizer producer SQM's (SQM) more liquid B-series shares (SQM-B.SN) increased 1.5% to CLP25,438.00; and beverage company Compania Cervecerias Unidas (CCU, CCU.SN) expanded 0.8% to CLP5,624.00.
Bank CorpBanca (BCA, CORPBANCA.SN) rose 1.2% to CLP8.27, recovering from the prior session's 3.5% fall. The Chilean bank recently said it was aiming to complete a capital increase of $300 million to $400 million for the sale of up to a 10% stake to Brazilian government-owned Banco do Brasil SA (BBAS3.BR), adding that it expects to complete the sale in the first or second quarter of next year.
Among the biggest gainers on the day, construction company Besalco (BESALCO.SN) gained 2.7% to CLP965.00 and real estate developer Socovesa (SOCOVESA.SN) climbed 5.2% to CLP370.14 as the sector is expected to continue posting strong results as Chile's economy quickly recovers and post-earthquake reconstruction kicks into full gear.
The Ipsa ended 0.4% higher at 4978.28, while market volume slipped to 137.0 billion Chilean pesos ($283.2 million). The prior session's volume was unusually high at CLP243.6 billion as the initial public offering of Chilean seafood exporter and farmed-salmon producer Pesquera Camanchaca (CAMANCHACA.SN) accounted for more than half the volume.
"The European Central Bank injected a well-needed dose of optimism into global markets," said Ximena Garcia, deputy director of studies at local brokerage EuroAmerica. "That's what is lifting Chilean equity."
Among dually listed shares, flagship carrier LAN Airlines (LFL, LAN.SN) gained 0.4% to CLP15,199.00; specialty chemical and fertilizer producer SQM's (SQM) more liquid B-series shares (SQM-B.SN) increased 1.5% to CLP25,438.00; and beverage company Compania Cervecerias Unidas (CCU, CCU.SN) expanded 0.8% to CLP5,624.00.
Bank CorpBanca (BCA, CORPBANCA.SN) rose 1.2% to CLP8.27, recovering from the prior session's 3.5% fall. The Chilean bank recently said it was aiming to complete a capital increase of $300 million to $400 million for the sale of up to a 10% stake to Brazilian government-owned Banco do Brasil SA (BBAS3.BR), adding that it expects to complete the sale in the first or second quarter of next year.
Among the biggest gainers on the day, construction company Besalco (BESALCO.SN) gained 2.7% to CLP965.00 and real estate developer Socovesa (SOCOVESA.SN) climbed 5.2% to CLP370.14 as the sector is expected to continue posting strong results as Chile's economy quickly recovers and post-earthquake reconstruction kicks into full gear.
The peso ended stronger against the dollar, tracking the rally in international copper prices. The peso ended at CLP483.80 to the dollar, compared to Wednesday's close of CLP485.20, after trading in a range of CLP483.75 to CLP486.50.
In the bond market, yields on inflation-indexed Chilean central bank bonds, or BCUs, posted very slight or no variations in a thin session. The yield on five-year BCU bonds ended at 2.69% unchanged from Wednesday, while the yield on 10-year BCUs closed at 2.88%, from 2.87% the previous session.
In the bond market, yields on inflation-indexed Chilean central bank bonds, or BCUs, posted very slight or no variations in a thin session. The yield on five-year BCU bonds ended at 2.69% unchanged from Wednesday, while the yield on 10-year BCUs closed at 2.88%, from 2.87% the previous session.
Chile Stocks Close Lower Tuesday
Chile's blue-chip Ipsa index ended lower Tuesday as participants took cues from slumping U.S. markets, pulled lower by euro-zone debt fears, and as investors booked profits.
The Ipsa ended 0.3% lower at 4956.96, while market volume rose to 131.5 billion Chilean pesos ($270.0 million), from CLP67.1 billion the prior session.
With several of the Ipsa's heavier-weighted shares also trading in New York, the Ipsa often tracks the Dow Jones Industrial Average. In recent trading, the DJIA declined 16 points, or 0.2%, to 11036 as the euro zone's sovereign-debt saga continues to spook investors.
The Ipsa has gained nearly 39% this year, the prior session's lower-than-expected industrial production data coupled with fears about the health of Europe, which is one of Chile's main trade partners, led participants to take profits.
Among dually listed shares, flagship carrier LAN Airlines (LFL, LAN.SN) lost 0.8% to CLP14,961.00; speciality chemical and fertilizer producer SQM's (SQM) more liquid B-series shares (SQM-B.SN) slipped 1.6% to CLP24,833.00 and the nation's largest bank, Banco Santander Chile (SAN, BSANTANDE.SN) declined 1.9% to CLP43.72.
Local bank CorpBanca (BCA, CORPBANCA.SN) jumped 4.0% to CLP8.47 and accounted for 23.5% of market volume as a local investment bank rushed to buy its shares.
The peso ended slightly weaker against the dollar, as it tracked a sliding euro versus the dollar, although it pared back some of its earlier losses after hitting key support.
The peso ended at CLP487.00 to the dollar, compared with Monday's close of CLP486.60, while trading in a range of CLP487.00 to CLP489.30.
In the bond market, yields on inflation-indexed Chilean central bank bonds, or BCUs, ended mixed in light over-the-counter trading. The yield on five-year BCU bonds ended at 2.65%, from 2.66% on Monday, while the yield on 10-year BCUs closed unchanged on the day at 2.83%.
Chile Stocks End Flat
Data Disappoint, Some Shares GainAfter paring back most of its earlier losses, Chile's blue-chip Ipsa index ended virtually flat Monday as disappointing industrial-production data and a drop in global markets were balanced out as select heavy-weighted shares increased.
The Ipsa ended 0.02% lower at 4973.58, while market volume fell to 67.1 billion Chilean pesos ($137.9 million), from CLP87.5 billion the prior session.
Although Chile's industrial output gained 1.7% in October on the year as the Andean nation continues to recover from last year's recession and February's massive earthquake, the increase came in far below market expectations of a 4% rise.
Also, as several of the Ipsa's heavier-weighted shares also trade in New York, the Ipsa often tracks the Dow Jones Industrial Average. In recent trading, the DJIA was down 22 points, also paring back earlier losses, as investors worried that the $112.61 billion Irish bailout might not be enough to contain the euro-zone debt crisis.
"Both of these factors, slumping global markets and lower-than-expected industrial production, hurt Chilean equity today," said Alvaro Pipino, head of studies with local brokerage IM Trust.
Among dually listed shares, flagship carrier LAN Airlines (LFL, LAN.SN) lost 1.0% to CLP15,074.00; energy holding company Enersis (ENI, ENERSIS.SN) shed 0.8% to CLP229.02; and bank CorpBanca (BCA, CORPBANCA.SN) declined 1.0% to CLP8.14.
Helping to pare back the Ipsa's losses, retail holding giant Cencosud (CENCOSUD.SN) rose 0.8% to CLP3,623.10 as industrial-production data highlighted that the retail sector continues to grow on increasing consumer confidence and lower prices.
Also, speciality chemical and fertilizer producer SQM's (SQM) more liquid B-series shares (SQM-B.SN) rose 1.3% to CLP25,247.00 after investment bank JPMorgan raised SQM's shares to overweight from neutral.
Additionally, pulp and paper producer CMPC (CMPC.SN) increased 1.4% to CLP26,591.00 and fuel and forestry conglomerate Copec (COPEC.SN), the Ipsa's heaviest-weighted share, expanded 0.7% to CLP9,485.40 after both companies recently reported robust quarterly earnings.
Chilean holding company Cruzados (CRUZADOS.SN), which manages the Universidad Catolica soccer team, leapt 23.7% to CLP291.80 as the soccer team is just one tie away from becoming national champions after a five-year dry spell. Cruzados isn't listed on the Ipsa index.
The peso ended weaker against the dollar, pressured by a falling euro against the dollar on euro-zone debt-contagion fears. The peso ended at CLP486.60 to the dollar, compared to Friday's close of CLP483.10, while trading in a range of CLP484.00 to CLP487.80.
ARGENTINA:
Argentina's Stocks Make Record High
THURSDAY: In Argentina, the Merval index (MERV 3,367, +105.66, +3.24%) logged a record high by rising 2% to 3,434.40
ARGENTINA NATURAL GAS IMPORTS CLIMBING
Bolivia More Than Doubling Argentina Gas Imports In January
Bolivia now ships around 3.5 million cubic meters of gas a day to Argentina, well short of the 7.7 million stipulated in its contract. Bolivia's supply of gas is still small compared to the roughly 141 million cubic meters of gas a day produced in Argentina. Argentina's government said Wednesday that Bolivia will raise natural gas exports to Argentina to 7.7 million cubic meters a day starting Jan. 1.
Since nationalizing its energy industry in 2006, Bolivia has had trouble meeting its contractual obligations with Argentina due to persistent supply shortages and a lack of investment in the country's oil and gas sector.
Since nationalizing its energy industry in 2006, Bolivia has had trouble meeting its contractual obligations with Argentina due to persistent supply shortages and a lack of investment in the country's oil and gas sector.
Carlos Villegas, president of Bolivia's state oil company, Yacimientos Petroliferos Fiscales Bolivianos, confirmed the plans in a meeting with officials from Argentina's Planning Ministry, according to a government press release.
In the meeting, the two sides also reviewed progress on plans to increase gas exports to Argentina to 27.7 million cubic meters a day by 2017, as the governments of both countries had announced earlier this year.
The increased supply will be pumped through the new 43-kilometer, cross-border Juana Azurduy pipeline, which is expected to come on line in early 2011, according to the statement. The pipeline will allow imports to rise to 10 million cubic meters next year and to 11 million in 2012. The additional supply would help Argentina meet its growing domestic demand for natural gas.
In the meeting, the two sides also reviewed progress on plans to increase gas exports to Argentina to 27.7 million cubic meters a day by 2017, as the governments of both countries had announced earlier this year.
The increased supply will be pumped through the new 43-kilometer, cross-border Juana Azurduy pipeline, which is expected to come on line in early 2011, according to the statement. The pipeline will allow imports to rise to 10 million cubic meters next year and to 11 million in 2012. The additional supply would help Argentina meet its growing domestic demand for natural gas.
Argentina, which relies heavily on natural gas to generate electricity, has become increasingly dependent on Bolivian gas and imported liquefied natural gas from Trinidad and Tobago.
Argentina pays about $7 per million British thermal unit for the gas from Bolivia. That is roughly two to three times more than the Argentine government allows its domestic producers to charge for conventional natural gas in Argentina.
Argentina needs natural gas to generate electricity, heat homes and power industry. More than a million cars run on inexpensive compressed natural gas.
Argentina first had gas shortages in 2004 as the country began to recover from its 2002 economic collapse.
To avoid an energy crisis, the government has cut gas exports to neighboring Chile, switched power plants over to government-subsidized fuel oil and diesel, and restricted supplies to industrial customers during cold winter months.
While demand for gas has increased, investment in domestic production has waned amid price controls and heavy state intervention in the energy market. Argentina is now trying to boost investment in exploration and production by raising prices for companies that find unconventional gas known as "tight gas" or "shale gas."
Argentina pays about $7 per million British thermal unit for the gas from Bolivia. That is roughly two to three times more than the Argentine government allows its domestic producers to charge for conventional natural gas in Argentina.
Argentina needs natural gas to generate electricity, heat homes and power industry. More than a million cars run on inexpensive compressed natural gas.
Argentina first had gas shortages in 2004 as the country began to recover from its 2002 economic collapse.
To avoid an energy crisis, the government has cut gas exports to neighboring Chile, switched power plants over to government-subsidized fuel oil and diesel, and restricted supplies to industrial customers during cold winter months.
While demand for gas has increased, investment in domestic production has waned amid price controls and heavy state intervention in the energy market. Argentina is now trying to boost investment in exploration and production by raising prices for companies that find unconventional gas known as "tight gas" or "shale gas."
Argentina's Stocks, Bonds Slip Lower Tuesday
Argentine stocks and bonds pulled back slightly Tuesday from the strong gains posted in November as continued worries over Europe's economic health weighed on investor sentiment.
Pressure on commodities by the rising dollar and Europe's weaker economies intensified this week. Investor jitters in Europe spilled over to Argentine sovereign debt in a general move away from risk.
The peso-denominated 2033 discount bond fell 2.2% in price terms to ARS182, to yield 7.3%. The dollar-denominated Boden 2015, shed 0.66% in price terms to ARS366.25, with the yield at 9.66%.
Stocks also came under pressure due to the worries in Europe, with the Merval index of leading shares falling 0.3% to 3,261.49 points. However, the Merval still performed strongly in November, rising 8.5% during the month and bringing its gain so far this year to 37%.
Argentine companies have benefited from strong gross-domestic-product growth this year, estimated by the central bank at 9%.
CONSTRUCTION GROWS
On Tuesday, the government released its construction index, which surged 12.5% on the year in October, extending the sharp expansion seen in recent months.
The peso eased down against the dollar on Tuesday, slipping to ARS3.9875 to the dollar from ARS3.985.
Argentina's Stocks, Bonds Finish Lower Monday
Argentina's stocks and bonds closed lower Monday, amid a rising dollar and broad declines in global markets.
European markets tumbled as investors feared that the European Union's bailout of Ireland won't stop other heavily indebted countries in the union from seeking a rescue. Meanwhile, U.S. markets tempered their losses in a late-session bounce.
Turnover in the local bond market totaled 597.3 billion pesos ($150 million), accounting for 79% of the overall volume on the Buenos Aires Stock Exchange.
The peso-denominated 2033 discount bond closed 0.6% lower at ARS186, yielding 7.09%. The Bogar 18 fell nearly 1% to close at ARS229, yielding 5.62%.
The Boden 2015, considered a good proxy for measuring the appeal of newly issued government bonds or the government's ability to sell them, fell 1.9% to ARS368.70, yielding 9.46%.
Argentina's 2035 peso-denominated GDP warrants fell 1.8% to ARS13.00, while U.S. dollar-denominated GDP warrants with the same maturity closed 4.6% lower at ARS53.90.
The peso was quoted in interbank markets closing at ARS3.9850 to the U.S. dollar, slightly weaker from the ARS3.9825 at Friday's close. The central bank of Argentina regularly intervenes in currency markets to keep the peso trading in a tight range against the greenback.
The benchmark Merval stock index fell 1% to close at 3270.10 points. Volume was nearly ARS60 million.
Electric utility holding company Pampa Energia (PAM, PAMP.BA) fell 2.1% to ARS2.76, banking group Grupo Financiero Galicia (GGAL, GGAL.BA) closed 1% lower at ARS6.22, and shares of phone company Telecom Argentina (TEO, TECO2.BA) tumbled 3% to ARS19.40.
The BNY Mellon Argentina ADR Index, which tracks U.S.-listed shares of Argentine stocks, fell 0.5% to 281.09.
PERU:
Peru's Main Stock Indexes End Higher Friday
Peru's stocks ended higher Friday as gold, silver and copper prices boosted the shares of blue-chip mining companies.
The Lima Stock Exchange's broad General index closed 0.48% higher at 21651.12. The Selective blue-chip index was up 0.55% to close at 30090.55, while the key mining subindex gained 1.14%.
Precious metals miner Compania de Minas Buenaventura SAA (BVN, BUENAVC1) rose a sharp 3.73% to $52.90, while silver miner Sociedad Minera El Brocal SAA (BROCALC1.VL) gained 3.77% to 55.00 soles ($19.50).
Base metals miner Southern Copper Corp.(SCCO, SCCO.VL) was up 0.46%, in line with copper price gains earlier in the day, closing at $44.10. Copper miner Sociedad Minera Cerro Verde SAA (CVERDEC1.VL) also rose, gaining 2.09% to $43.90.
The sol ended slightly stronger at PEN2.822 to the dollar from PEN2.827 the previous session.
Peru's Stock Indexes End Higher Thursday
Peru's main stock market ended higher Thursday as rising metals prices helped lift various mining companies. The Lima Stock Exchange's broad General index closed higher by 0.85% at 21547.34. The Selective blue-chip index ended stronger by 0.87% at 29926.34.
Base metals miner Southern Copper Corp.(SCCO, SCCO.VL) rose 1.62% to end at $43.90 on stronger copper prices, while copper miner Sociedad Minera Cerro Verde SAA (CVERDEC1.VL) increased 3.61% at end at $43.
Tin miner Minsur SA (MINSURI1.VL) gained 0.98% to end at 10.30 soles ($3.64) on a rise in tin prices. Financial holding Credicorp Ltd. (BAP, BAP.VL) increased 1.92% to end at $124. It owns Peru's largest bank, Banco de Credito.
The sol ended unchanged at PEN2.827 per dollar.
Base metals miner Southern Copper Corp.(SCCO, SCCO.VL) rose 1.62% to end at $43.90 on stronger copper prices, while copper miner Sociedad Minera Cerro Verde SAA (CVERDEC1.VL) increased 3.61% at end at $43.
Tin miner Minsur SA (MINSURI1.VL) gained 0.98% to end at 10.30 soles ($3.64) on a rise in tin prices. Financial holding Credicorp Ltd. (BAP, BAP.VL) increased 1.92% to end at $124. It owns Peru's largest bank, Banco de Credito.
The sol ended unchanged at PEN2.827 per dollar.
Peru's Main Stock Indexes End Higher Tuesday
Peru's main stock market indexes ended higher on Tuesday, as a number of blue-chip shares gained ground. The Lima Stock Exchange's broad General index closed higher by 0.24%, at 20,854.50.
The blue-chip index ended stronger by 0.40% at 28,989.81.
Financial holding Credicorp Ltd. (BAP, BAP.VL) increased 0.12% to end at $120.70. It owns Peru's largest bank, Banco de Credito. Compania Minera El Brocal SAA (BROCALC1.VL), one of Peru's leading silver producers, increased 0.19% to end at 51.90 soles ($18.19) on stronger silver prices. Beverage producer Union de Cervecerias Peruanas Backus & Johnston SAA (BACKUSI1.VL) rose 3.6% to end at PEN5.70.
The sol ended weaker at PEN2.832 to the dollar from PEN2.829 in the previous session.
Central Reserve Bank of Peru chief economist Adrian Armas said Tuesday that the sol is expected to continue posting "hiccups" in the short term due to uncertainty in the international economic situation.
MEXICO:
Mexico's Stocks Close Lower Friday
Mexican stocks attempted to continue gains, however stocks pared back their intraday losses late Friday but still finished lower in a choppy session weighed down by discouraging economic data and concerns that Mexican shares are overbought.
The IPC index of Mexico's leading 35 shares ended 14 points lower, at 37386, with 21 of its components ending in the red. Trading volume was moderate at 4.5 billion pesos ($365 million). The index was up as much as 126 points early in the session, and down as much as 131 points in the afternoon.
The Mexican bourse has been on a tear in recent months, breaking one technical ceiling after another. Year-to-date, the IPC is up 16.4%. Some brokerage houses are now forecasting that the index could end December at 39000 points.
Local brokerage Ixe commented in a recent note that whether valuations are considered expensive depends on how aggressive the investor is. "Nonetheless, on more than one occasion the market has kept advancing independently of having high valuations," the analysts added.
In early morning trading, Mexico's IPC index of 35 leading shares was up 0.2% to 37480 on volume of 587 million pesos ($47.4 million).
Among key Mexican shares, wireless carrier and market benchmark America Movil slumped 0.7% to MXN35.35, cement maker Cemex gained 1.5% to MXN11.97 and bread maker Bimbo rose 0.6% to MXN105.03.
Bimbo said Thursday it is investing about $200 million, together with Desarrollos Eolicos Mexicanos, a subsidiary of Spanish renewable energy company Renovalia Energy SA, to build a wind farm that will supply most of Bimbo's electricity needs in Mexico.
The peso weakened marginally from its prior close of 12.3270 to the dollar while recovering significantly from a morning level of MXN12.3790 to end the week at MXN12.3380.
Mexico Nov Consumer Confidence Falls
Mexican consumer confidence slipped for a second consecutive month in November, mainly as expectations for the country's economic situation became less optimistic.
The Mexico government's statistics agency Inegi said consumer confidence fell in November versus the previous month.
Among key Mexican shares early Friday, wireless carrier and market benchmark America Movil was off 0.1% at MXN35.58, cement maker Cemex was up 0.5% at MXN11.85 and bread maker Bimbo was gaining 0.7% to MXN105.10.
Bimbo said Thursday it is investing about $200 million, together with Desarrollos Eolicos Mexicanos, a subsidiary of Spanish renewable energy company Renovalia Energy SA, to build a wind farm that will supply most of Bimbo's electricity needs in Mexico.
The peso was weaker in early trade at 12.3790 to the dollar versus MXN12.3270 at the close Thursday.
Mexico's Stocks Make Record High Thursday
Among key Mexican shares early Friday, wireless carrier and market benchmark America Movil was off 0.1% at MXN35.58, cement maker Cemex was up 0.5% at MXN11.85 and bread maker Bimbo was gaining 0.7% to MXN105.10.
Bimbo said Thursday it is investing about $200 million, together with Desarrollos Eolicos Mexicanos, a subsidiary of Spanish renewable energy company Renovalia Energy SA, to build a wind farm that will supply most of Bimbo's electricity needs in Mexico.
The peso was weaker in early trade at 12.3790 to the dollar versus MXN12.3270 at the close Thursday.
Mexico's Stocks Make Record High Thursday
Mexico’s key equity benchmark notched a record closing high Thursday, with the market finding support from robust monthly sales figures from the U.S., Mexico’s largest trading partner. In Mexico, retailer Wal-Mart de Mexico is due to release November same-store sales results on Tuesday.
Mexico’s IPC index (XX:IPC 37,278, +460.24, +1.25%) rose 0.3% to end at 37,399.47. The move extended the index’s 1.3% jump on Wednesday when it reached a high mark of 37,277.56. Cement maker Cemex (CX 9.65, +0.07, +0.73%) shares climbed 2.7% and banking concern Grupo Financiero Banorte (MX:GFNORTEO 54.25, +0.12, +0.22%) rose 3.6%. Market heavyweight America Movil’s (AMX 57.68, -0.08, -0.14%) shares slipped 0.3% and steel producer Industrias CH (MX:ICHB 45.40, +0.73, +1.63%) gained 3.6%.
MEXICO'S CONTAINER TRAFFIC INCREASES
Container Traffic At Mexican Ports Seen Up 26% In 2010
Mexico expects container traffic at its ports to rise 26% this year from 2009 to 3.62 million twenty-foot equivalent units, or TEUs, reflecting a sharp recovery in trade as well as public investments to increase capacity.
Since the beginning of 2007, the government has invested 32.43 billion pesos ($2.62 billion) to upgrade numerous ports on the Pacific and Atlantic coasts, the Communications and Transport Ministry said Wednesday in a press release.
At the Pacific port of Lazaro Cardenas, the government has spent MXN3.48 billion to increase container capacity by 600,000 TEUs per year. Ongoing public and private investments at the nearby port of Manzanillo should exceed MXN10 billion for construction of a new container terminal and a terminal for liquid natural gas.
The SCT didn't mention the $5 billion megaport project known as Punta Colonet, which was tendered in 2008 but stalled shortly afterward as the credit crunch and global recession squeezed any would-be bidders.
Container traffic at Mexico's ports this year is expected to surpass the previous record of 3.32 million TEUs, set in 2008.
Trade has been one of several bright spots in Mexico's economic recovery, with exports in the January to October period rising 32% from a year earlier to $243.31 billion and imports up 30% to $246.11 billion.
The SCT also said it has invested MXN152.17 billion in highway infrastructure since 2007, when current President Felipe Calderon's term began. Additional private investments in that period amount to MXN22.94 billion.
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European Markets:
European Markets:
FRIDAY: The U.S. dollar continued to lose ground against its major counterparts during the European trade, with the EUR/USD advancing to a high of 1.3268.
THURSDAY: The European Central Bank abandons its plans to wind down emergency support for banks and government debt markets, responding to concerns that an early exit from such programs could jeopardize the euro currency.The sovereign debt crisis in Europe is serious and shouldn't be underestimated, the chief of the International Monetary Fund says, days after the European governments signed a bailout plan for Ireland.
European Markets Rise Thursday
Thursday: EURO STOXX 50 2,746.91 +25.04 (0.92%)
The Stoxx Europe 600 index ended up 1.7% at 271.61. The U.K.'s FTSE 100 closed 2.2% higher at 5767.56, Germany's DAX advanced 1.3% to 657.61 and France's CAC-40 closed 2.1% higher at 3747.04.Spain's IBEX climbing 2.8% to 9947.60.
By the close of European equity markets, spot gold on the Comex division of the New York Mercantile Exchange was up $18.80 per ounce at $1384.8. Light, sweet, crude for January delivery was up $0.40 at $87.15 on the New York Mercantile Exchange.
Late in Europe, the euro was at $1.3221 from $1.315. The dollar was weaker against the yen.
European stocks were up 0.7 percent in morning trade, extending the previous session's strong gains, as investors watched to see if the European Central Bank would rush through new measures to resolve the euro zone debt crisis.The FTSEurofirst 300 index .FTEU3 rose half a percent while emerging stocks .MSCIEF gained 1.2 percent
.
By 1150 GMT, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was up 0.4 percent at 1,093.28 points. Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI were up 0.1-0.6 percent, while the Thomson Reuters Peripheral Eurozone Countries Index .TRXFLDPIPU added 1.3 percent.
The European Central Bank faced pressure on Thursday to take steps to help contain the euro zone's debt problems, but could upset financial markets if it fails to announce new anti-crisis measures.
The European Central Bank is expected to keep unlimited liquidity operations in place for longer with the euro zone debt crisis raging unabated, but analysts say it is unlikely to announce mass new bond purchases on Thursday.
The cost of insuring peripheral euro zone debt against default eased on Thursday ahead of the ECB meeting, while the euro gained ground against the dollar.
European Stocks Rise Wednesday
Investors picked up financial stocks, which had slumped in recent days on worries about the financial health of some euro-zone governments, and mining stock, which rose on upbeat global economic data. The Markit final euro-zone manufacturing PMI rose to 55.3 in November from 54.6 in October.
The euro recovered from 2 1/2-month lows hit Tuesday and reached its highest point of the day after Portugal's sale of 12-month Treasury bills went better than expected.
The Stoxx Europe 600 index ended up 2% at 267.11. The U.K.'s FTSE 100 gained 2.1% to 5642.50, Germany's DAX climbed 2.7% to 6866.63 and France's CAC-40 rose 1.6% to 3669.29.
Madrid's IBEX 35, which plunged 14% in November, surged 4.4% to 9678.40. Milan's FTSE MIB, which skidded 11% last month, climbed 2.4% to 19566.06.
Tuesday, the Stoxx Europe 600 index gained 1.4% in intraday trading, as a British manufacturing survey registered its highest reading in 16 years and Germany's retail sales jumped higher than expected in October.The euro gained 0.8% to above the $1.30 mark to recoup some of its recent heavy losses.
Monday, European shares dropped again Tuesday as sovereign-debt worries continued to wash across the continent, with banks in particular falling hard as yields on Spanish and Italian debt soared. Economists said the Irish bailout plan and the fund, which is to take effect from July 2013 and would impose losses on holders of bonds issued by governments declared insolvent, may have made matters worse. Borrowing costs for euro-zone members Portugal, Spain, Italy--and even Belgium--jumped sharply. The euro tumbled and European stock markets were down sharply.
The Stoxx Europe 600 index slipped for the third straight session, falling 0.1% to end at 261.83.
LONDON:
FTSE Ends Lower Friday
FTSE 100 5745.32 -22.24 -0.39
FTSE 250 11082.17 +5.37 +0.05
DJ UK Smaller Companies 935.81 +1.05 +0.11
The U.K.'s dominant services sector expanded at a marginally slower pace in November than October, weighed down by weak confidence and job cuts, data showed Friday. Spot gold is steady in Europe Friday, with resistance at $1,400 a troy ounce continuing to hold firm .
London Stocks Close Higher Thursday
FTSE 100 5769.00 +126.50 +2.24%
FTSE 250 11065.47 +256.14 +2.37%
DJ UK Smaller Companies 933.38 +13.20 +1.43%
London Stocks Close Higher, Buoyed By Europe
1640 GMT FTSE 100 closes +2.2%, mirroring European markets, which close higher on comments by ECB President Jean-Claude Trichet. The ECB, which maintains interest rates at 1%, delays an exit strategy from the markets, with liquidity measures remaining unchanged until the end of 1Q.
Traders remain cautious. "While the market is trading strongly higher, volume is hardly spectacular, indicating that even fund managers may just be dipping their toes," says Manoj Ladwa at ETX Capital. Looking ahead, German, French, UK and euro zone PMI data are due Friday.
Glaxo Nears Deal To Buy Chinese Drug Company
GlaxoSmithKline PLC (GSK, GSK.LN) is nearing a deal to buy Nanjing MeiRui Pharma Co., a Chinese drug company that would boost its exposure to the fast-growing market, according to people familiar with the matter.
EU Extends News Corp, BSkyB Antitrust Review
The European Commission has extended its deadline to examine media giant News Corp.'s (NWS) proposed takeover of the U.K.-pay television operator British Sky Broadcasting Group PLC (BSY.LN) by a fortnight following additional information to address competition concerns.
Redhall Sees Big Role In New Nuclear Build
U.K. engineering services company Redhall Group PLC (RHL.LN) Thursday said it expects to play a material role in the construction of new nuclear power plants in the U.K. after forging alliances with French manufacturers bidding for key business.
Kingfisher Sales Flat
Home improvement retailer Kingfisher PLC (KGF.LN) reported broadly flat third quarter comparable sales as growth at its international businesses offset continued declines in the U.K. and Ireland.
Weather Fears Give Wheat Markets New Impetus European milling wheat futures rose to contract highs Thursday, boosted by fears that tightening world markets may increase demand for the region's dwindling supplies.FSA Clears Ex-RBS Executives
Executives of Royal Bank of Scotland Group PLC (RBS), including former Chief Executive Fred Goodwin, have escaped sanctions by the U.K. Financial Services Authority for their actions in the lead-up to the bank's near collapse in 2008, in a blow to shareholders who saw the value of their stock plummet from the bank's government bailout.LONDON STOCKS CLOSE HIGHER WED.
Strong U.K. manufacturing data also added to the upward momentum in London. The purchasing managers' index for the U.K. manufacturing sector rose to 58.0 in November.
.LONDON STOCKS CLOSE LOWER TUESDAY.
FTSE 100 5528.27 -22.68 -0.41%
FTSE 250 10607.75 -81.85 -0.77%
DJ UK Smaller Companies 906.82 -4.76 -0.52%.
BP Consortium To Spend $3 Billion
To Hike Azeri Gas Pipe Capacity
A consortium led by U.K. oil major BP PLC (BP) will spend around $3 billion to increase capacity at a pipeline in Azerbaijan carrying natural gas from the second stage of the huge Shah Deniz field in the Caspian Sea, the company said Tuesday.
Shell, Gazprom To Deepen Russian Ties
Royal Dutch Shell PLC (RDSB.LN) and Russian gas giant OAO Gazprom (GAZP.RS) signed an agreement Tuesday that will deepen their existing partnership within Russia and see them work together outside the country for the first time, Shell said in a statement.
.
FTSE Closes Lower Monday
FTSE 100 5550.95 -117.75 -2.08%
FTSE 250 10689.60 -119.83 -1.11%
DJ UK Smaller Companies 911.58 -0.79 -0.09%
FTSE 100 closes down, extending earlier losses on persistent concerns about European sovereign debt.
The U.K.'s independent Office for Budget Responsibility cut its official growth forecast slightly for 2011.
UK Wheat Tops 2-1/2Year High
Supply Concerns Grow
U.K. wheat prices rose to a fresh 2.5-year high, boosted by ongoing concerns that the rapid pace of exports will squeeze this season's supplies.
UK REAL ESTATE PRICES DOWN
A lack of new buyers prompted U.K. house prices to fall for a fifth straight month in November, while year-on-year the decline in prices deepened from October to the largest since December 2009, a survey showed Monday.
UK October Mortgage Lending And Consumer Credit Surges U.K. consumers' appetite for debt, and ability to secure it, picked up in October, boosted by sharp upturns in both secured and unsecured borrowing, despite weakening confidence and as details of government spending cuts emerged in fuller detail, data from the Bank of England showed Monday.
UK Consumer Services Business Falls
U.K. consumer service companies reported a surprise drop in business volumes in the three months to November as Britons cut back on leisure activities and other discretionary spending, a survey shows Monday.
BA Shareholders Approve Merger With Iberia
British Airways PLC's (BAY.LN) shareholders Monday voted overwhelmingly in favor of its merger with Spain's Iberia Lineas Aereas de Espana SA (IBLA.MC), the final step before the airlines become International Consolidated Airlines Group SA, or IAG, in the new year.
Shell Selling Texas Gas Fields
Shell Oil Co., the U.S. arm of the European oil giant Royal Dutch Shell PLC (RDSA, RDSA.LN), has put its South Texas gas fields on the block, and a sale could fetch roughly $1 billion.
Shell Oil Co., the U.S. arm of the European oil giant Royal Dutch Shell PLC (RDSA, RDSA.LN), has put its South Texas gas fields on the block, and a sale could fetch roughly $1 billion.
GERMANY:
Friday: The German DAX fell 9 pts to 6947
Tuesday: The German DAX 30 index slipped 0.1% to 6,688.49
Friday: The German DAX fell 9 pts to 6947
Tuesday: The German DAX 30 index slipped 0.1% to 6,688.49
German steel maker ThyssenKrupp edged down 0.5% after it offered an outlook for 2011 trading that was weaker than some analysts had hoped.
FRANCE:
FRIDAY: The CAC 40 gained 3 points to 3750
France's President Sarkozy: Reaffirms Confidence In Euro
French President Nicolas Sarkozy said Friday he wants to reinforce governance in the euro zone and reaffirmed his confidence in the European Union's single currency. He spoke following a meeting with European central bank's president, Jean-Claude Trichet.
"The euro is a credible currency and has become, in 10 years of existence, the world's second reserve currency," Sarkozy said in a statement released by his office.
FRENCH OFFICIALS WARN AGAINST
A BANK-RUN NEXT WEEK
Bankers and politicians warned against a plan inspired by French former football star Eric Cantona to spark a bank run next week, saying that such a move would be counterproductive.
THURSDAY: CAC 40 index 3,702.16 +32.87 (0.90%)
TUESDAY: the French CAC 40 index dropped 0.7% to 3,610.44.
Engineering firm Alstom climbed 2.6% after it was upgraded to buy from hold at Deutsche Bank.
SWITZERLAND:
TUESDAY: The SMI stock index dropped 1.3%
Shares of food giant Nestle slipped 2.2% after the stock was downgraded to neutral from outperform by Credit Suisse, which said it was "time to draw breath" with the shares trading at a significant premium to peers.
Swiss banks were also under selling pressure. Shares of UBS AG dropped 2%, and those of rival Credit Suisse Group AG fell 2.6%. Shares in BASF SE gained 2.2% after the chemicals giant said it is setting up a joint venture with Ineos Industries Holdings. The joint venture is expected to have annual sales of more than 5 billion.
ITALY:
TUESDAY: Italy's FTSE MIB index slipped 1.1%
SPAIN:
TUESDAY: Spain's IBEX 35 dropped 0.6%
Madrid Airspace Closed Friday
By Traffic Controller Walkout
Airspace around Madrid and the Balearic Islands has been closed after air traffic controllers walked off the job, a spokeswoman for Spain's airport authority said Friday.
The spokeswoman declined to comment on the reason for the walkout, though the government earlier this week announced plans to privatize parts of key airports.
IRELAND:
Friday: Dublin Stocks: ISEQ Ends -0.4% At 2,741; Irish Life -5%
Wednesday: Dublin Stocks: ISEQ Ends +1.8% At 2,695; CRH +3.2%
Tuesday: Dublin Stocks: ISEQ Ends Flat At 2,650; Irish Life +22%
The Bank of Ireland and Irish Life & Permanent Group Holdings PLC (IPM.LN) Monday said they are launching capital raising drives to meet the terms of the country's multi-billion euro bailout that was agreed with international partners.
Ireland Approved For $113 Billion Bailout
Ireland received approval for an 85 billion-euro ($113 billion) emergency-aid package as European finance ministers battled to contain the fiscal crisis.
Ireland will receive 67.5 billion euros from the European Union and International Monetary Fund and provide 17.5 billion euros from its own pension reserves, Martti Salmi, a spokesman for the Finnish Finance Ministry, said today after EU finance ministers endorsed the plan in Brussels.
“We have to discuss the broader ramifications of the current crisis and we have to discuss a systemic response to this crisis,” EU Economic and Monetary Affairs Commissioner Olli Rehn before the meeting that was only announced this morning.
Ireland became the second euro country to seek a rescue after the Greek debt crisis earlier this year destabilized the currency and forced the EU to set up a 750 billion-euro rescue fund backed by the International Monetary Fund.
Prime Minister Brian Cowen’s government is unraveling. He has overseen the collapse of Ireland’s banking system and national finances after a 10-year property bubble burst, the economy tumbled into recession and unemployment surged close to 14 percent.
Ireland has been brought “to its knees” by the government and bankers, said Jack O’Connor, head of Ireland’s umbrella organization for labor unions. He told the crowd of 50,000 protestors “Several generations of Irish men and women” will have to foot the bill, he said.
Dublin's Green Party is calling for January elections and some lawmakers from his own party are slamming the Prime Minister's leadership.
PORTUGAL:
PORTUGAL'S BANKS PILE UP GOVERNMENT DEBT
Just like in the U.S. by the Federal Reserve, Portuguese banks are buying their government's debt at a fast pace, a move that could pose a risk to institutions that so far have weathered the financial crisis better than many.
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Asian Pacific Markets:
Asian stock markets opened higher Thursday, lifted by Wall Street's surge Wednesday, with miners leading Sydney stocks up and exporters supporting Japan.
CHINA:
THURSDAY: Shanghai 2,843.61 +20.16 (0.71%)
Hang Seng Index 23,448.78 +198.98 (0.86%)
Investors cheered improving data on China's manufacturing sector Wednesday as an encouraging sign of future oil demand from the world's second-largest crude consumer.
China's official purchasing managers index rose to 55.2 in November from 54.7 in October, driven by better output and exports, a sign of strength both domestically and overseas.
Tuesday: Shanghai 2,820.18 -46.18 (-1.61%)Tuesday: Hang Seng Index 23,007.99 -158.23 (-0.68%)
China Approves Investments In Foreign Gold Funds
Beijing-based Lion Fund Management Co. said they received approval from the China Securities Regulatory Commission on Monday to proceed with the fund. China's securities regulators have given the go-ahead for a mutual fund to invest in exchange-traded gold funds outside the country, potentially tapping interest among mainland China investors who face negative real interest rates on their bank deposits and want to hedge against inflation. Chinese gold imports have been climbing as the nation's central bank started to build gold reserves in recent years and domestic interest in gold investment grew.
JAPAN:
Thursday: Japan's Nikkei Stock Average was up 1.81%,
JAPAN'S NIKKEI UP THURSDAY
All 33 of the Topix's sub-indexes were higher with Canon up 2.3% and Olympus up 2.9% on the yen's drop. Toyota Motor slipped 0.3% on news of a 3.3% fall in U.S. new-vehicle sales in November.
December Japanese government bond futures were down 0.39 at 140.94 points, weighed by U.S. Treasurys' losses Wednesday while the yield on the benchmark 10-year cash JGB was up 3.0 basis points at 1.195%.
Tuesday, USGS Reported a 6.9 Earthquake Strikes 502 miles South of TOKYO, Japan:
http://earthquake.usgs.gov/earthquakes/recenteqsww/Maps/region/Asia.php
JAPAN PASSED DOMESTIC STIMULUS PLAN
Monday, Japan passed a new $61 billion stimulus package
Japan's parliament has passed a stimulus package worth about $61bn ($US58b)(£39bn), designed to kick-start the country's fragile economic recovery. The stimulus was designed to create jobs, Prime Minister Nato Kan said, through measures to help small businesses and boost consumer spending.
The government has already introduced several stimulus packages. Earlier, figures showed that Japanese consumer prices fell for the 20th month in a row in October.
The vote in favour of the latest stimulus measures represents a victory for the government, which has struggled to get the package through parliament. The move is in marked contrast to European governments' policies, which are focusing on cutting spending to secure growth.
Falling prices
Japan has been struggling with weak growth, a high yen and deflation. The core consumer price index fell by 0.6% in October compared with a year earlier, official figures showed. This was a slight improvement on the 1.1% price falls seen in September. Deflation is particularly damaging to economic growth as consumers delay purchases until prices fall further. The improvement from September does not reflect any improvement in consumer demand, analysts said.
"Even though the pace of the fall in prices slowed by 0.5 percentage points, this was not due to an improved demand-supply balance," said Asushi Matsumoto at the Mizuho Research Institute. Instead, he said, it was down to one-off factors, such as a hike in cigarette prices. This means that "exit from deflation will be slower than previously thought," Mr Matsumoto argued.
Weak exports - Japan is also struggling with a strong yen, which makes exports more expensive to overseas consumers. Figures released last Thursday showed export growth slowing for the eighth month in a row, with exports to Europe falling for first time for almost a year.
Analysts say weaker exports could also contribute to reduced consumer demand.
Read the entire article at the BBC:
http://www.bbc.co.uk/news/business-11844483
SOUTH KOREA:
Thursday: South Korea's Kospi Composite rose 0.7%
Hyundai Motor rose 0.8% after the company announced robust U.S. sales Wednesday while Kia Motors was up 2.8%. Tech shares gained on hopes for improved business next year with Samsung Electronics up 1.8% and Hynix Semiconductor up 2.1%.
AUSTRALIA:
Thursday: Australia's S&P/ASX 200 was up 1.6%,
AUSTRALIAN MARKETS OPENS HIGHER THURSDAY
Mining stocks led the Sydney market higher with BHP Billiton and Rio Tinto both up 2.2% while Westpac rose 2.5%, though the market was off highs on news that Australian retail sales fell 1.1%, well below expectations for a 0.4% rise.
Japan has been struggling with weak growth, a high yen and deflation. The core consumer price index fell by 0.6% in October compared with a year earlier, official figures showed. This was a slight improvement on the 1.1% price falls seen in September. Deflation is particularly damaging to economic growth as consumers delay purchases until prices fall further. The improvement from September does not reflect any improvement in consumer demand, analysts said.
"Even though the pace of the fall in prices slowed by 0.5 percentage points, this was not due to an improved demand-supply balance," said Asushi Matsumoto at the Mizuho Research Institute. Instead, he said, it was down to one-off factors, such as a hike in cigarette prices. This means that "exit from deflation will be slower than previously thought," Mr Matsumoto argued.
Weak exports - Japan is also struggling with a strong yen, which makes exports more expensive to overseas consumers. Figures released last Thursday showed export growth slowing for the eighth month in a row, with exports to Europe falling for first time for almost a year.
Analysts say weaker exports could also contribute to reduced consumer demand.
Read the entire article at the BBC:
http://www.bbc.co.uk/news/business-11844483
SOUTH KOREA:
Thursday: South Korea's Kospi Composite rose 0.7%
Hyundai Motor rose 0.8% after the company announced robust U.S. sales Wednesday while Kia Motors was up 2.8%. Tech shares gained on hopes for improved business next year with Samsung Electronics up 1.8% and Hynix Semiconductor up 2.1%.
AUSTRALIA:
Thursday: Australia's S&P/ASX 200 was up 1.6%,
AUSTRALIAN MARKETS OPENS HIGHER THURSDAY
Mining stocks led the Sydney market higher with BHP Billiton and Rio Tinto both up 2.2% while Westpac rose 2.5%, though the market was off highs on news that Australian retail sales fell 1.1%, well below expectations for a 0.4% rise.
Leighton was up 2.6% after its Thiess subsidiary won a 20-year, A$5.5 billion contract to mine coal at NTPC Ltd. Pakri Barwadhi field. The Indian field is expected to produce 15 million metric tons a year of coal, Leighton said.
The Australian dollar was dragged lower by the weaker-than-expected retail sales data, and traded at US$0.9631, from about US$0.9660 before the data.Coal Africa To Pay $75M for Rio Tinto's Chapudi Coal Project
Coal of Africa Ltd. (CZA.AU) said Monday it will buy the Chapudi coal project and other South African assets off Rio Tinto Ltd. (RIO) in a US$75 million deal that will increase the miner's coal resource by 1.04 billion tons.
MONDAY:Australian stocks look set to open weaker on Monday, after a sell-off on major international markets over the weekend. The December share price index futures contract is pointing to a 21-point fall, or 0.46 per cent, when trading opens on Monday.
Nervous investors sold off European equities on Friday, fearing Ireland's debt and deficit difficulties will force Portugal and Spain to follow its lead and appeal for outside financial help. Wall Street closed lower on Friday on thin volumes as traders returning from the Thanksgiving holiday took their cue from European bourses...
Two key statistics for the month of October will be released over the next two days.
On Monday the Housing Industry Association will release home-sales figures and on Tuesday the Reserve Bank will hand down financial aggregates data.
The Australian Bureau of Statistics will publish the September quarter business indicators on Monday, October building approvals and quarterly balance-of-payments on Tuesday, the national accounts, including the GDP (gross domestic product) on Wednesday and October retail sales figures on Thursday.
Among the many companies holding their annual general meetings in the coming week are SEEK Ltd, OrotonGroup Ltd, Nufarm Ltd and David Jones Ltd.
The spot price of gold in Sydney was $US1,370.50 per fine ounce at close on Friday, down $US1.58 on Thursday's closing price of $US1,372.08 per fine ounce.
Read the entire article at The Sydney Morning Herald
http://news.smh.com.au/breaking-news-business/aust-market-tipped-to-open-weaker-20101128-18c5f.html
NEW ZEALAND:
New Zealand's NZX-50 added 0.4%
Stronger offshore markets and upbeat economic data from Europe, U.S. and China over the past day lifted New Zealand shares. Fisher & Paykel Healthcare rose 2.0% as exporters were helped by selling pressure in the New Zealand dollar, which is being hurt by the soft domestic backdrop.
Contact Energy added 0.5% on news it has approval to build a windfarm, while Pyne Gould rose 2.7% as a merger between its wholly-owned financial services company MARAC, CBS Canterbury and Southern Cross Building Society aimed at creating New Zealand's first listed bank moves closer.
____________________________________________________________
WORLD FOREX CURRENCIES SNAPSHOT:
(FRIDAY, DEC 03, 2010 4:05 PM EST)
EUR/USD 1.3383 +0.0164 (1.24%)
USD/JPY 82.9200 -0.9800 (-1.17%)
GBP/USD 1.5745 +0.0153 (0.98%)
CAD/USD 0.9955 -0.0008 (-0.08%)
USD/HKD 7.7635 -0.0025 (-0.03%)
USD/CNY 6.6628 +0.0019 (0.03%)
AUD/USD 0.9909 +0.0143 (1.46%)
WORLD MARKETS SNAPSHOT:
(FRIDAY, DEC 03, 2010 4:05 PM EST)
Shanghai 2,842.43 -1.18 (-0.04%)
Nikkei 225 10,178.32 +9.80 (0.10%)
Hang Seng Index 23,320.52 -128.26 (-0.55%)
TSEC 8,624.01 +38.24 (0.45%)
FTSE 100 5,745.32 -22.24 (-0.39%)
DJ EURO STOXX 50 2,782.39 +1.00 (0.04%)
CAC 40 3,750.55 +3.51 (0.09%)
S&P TSX 13,178.95 +15.42 (0.12%)
S&P/ASX 200 4,694.20 +18.00 (0.38%)
BSE Sensex 19,966.93 -25.77 (-0.13%)
____________________________________________________________
FRIDAY'S U.S. ECONOMIC CALENDAR:
8:30 a.m.
Nov Unemployment rate Non-Farm Payrolls (expected +144K), Unemployment Rate (expected 9.6%), Average Hourly Earnings (previous 22.73), Net Change (previous +0.05), Manufacturing Payrolls (previous -7K), Overall Workweek (previous 34.3), Net Change (previous +0.1), Service Producing Payrolls (previous +146K), Government Payrolls (previous -8K), Federal Payrolls (previous -1K)
10:00 a.m.
Oct Manufacturers' Shipments, Inventories & Orders (M3) Total Orders (expected -1.1%), Orders, Ex-Defense (previous +1.9%), Orders, Ex-Transportation (previous +0.4%), Durable Goods 1st Est (previous +3.3%), Durable Goods Revised (previous +3.5%)
10:00 a.m.
Nov ISM Non-Manufacturing Report Non-Manufacturing PMI (expected 55), Non-Manufacturng Business Index (previous 58.4), Prices Index (previous 68.3), Employment Index (previous 50.9), New Orders Index (previous 56.7)
12:30 p.m.
Philadelphia Fed Pres Plosser speaks on the economy in Rochester, N.Y.
____________________________________________________________
US STOCK MARKET SUMMARY, THUR., DEC. 02, 2010:
Stocks:
Thursday, the dollar declined and U.S. stocks extended the market's strong start to the month as good chain-store sales and better-than-expected pending home sales painted a brighter picture of the U.S. economy. Also helping stocks, pressure on the euro eased on talk that the European Central Bank was actively buying more bonds of some of the bloc's more financially stressed governments.
Treasurys:
Investors shed Treasurys in full force after better data that left investors feeling more optimistic about the global economic recovery. Treasurys fell as demand for relatively safe assets waned ahead of a key U.S. jobs report. The losses were capped thanks to purchases by the Federal Reserve. Higher yields also lured some fresh buyers. At the peak of the selling, the benchmark 10-year note's yield broke above 3% for the first time since late July.
Forex:
The euro advanced on the dollar but came off session highs near the close. The euro rose against the dollar after talk of European Central Bank bond-buying actions spoke louder than the central bank president's measured words. Market participants said the ECB during bank President Jean-Claude Trichet's press conference was "fairly aggressive" buyers of sovereign debt in the periphery of the euro zone.
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