Stock Market Update - November 22-26, 2010 Cautious Choppy Mixed Trend

Stock Market Update 

November 22-26, 2010

Latest US Economic News Headlines:

USA EQUITY INDEXES: (NOV. 26, 4:05 PM EST)



  
(FRIDAY'S CLOSING INDEX NUMBERS)
Dow Jones 11,092.00 -95.28 (-0.85%)
S&P 500    1,189.40 -8.95 (-0.75%)
Nasdaq     2,534.56 -8.56 (-0.34%)


Dow Jones 1:00 PM CLOSING AVERAGES 11/26/10: DJIA 11,089.35 DN 97.93
  30 INDUS     11,089.35 DN   97.93 OR    0.88%
  20 TRANSP     4,879.92 DN   31.46 OR    0.64%
  15 UTILS        392.56 DN    2.69 OR    0.68%
  65 STOCKS     3,868.69 DN   29.52 OR    0.76%

US COMMODITY PRICES: (NOV. 26, 1:00 PM EST)
Crude Oil     83.81     - 0.44%
Natural Gas     4.39     - 0.16%
Gasoline     2.21     -
Heating Oil     2.32     - 0.41%
Gold     1359.68     - 1.10%
Silver     26.81     - 2.76%
Copper     3.75     - 0.27%

US DOLLAR FUTURES INDEX DXY: NOV. 26, 1:07PM EST: 80.35  Up 0.48 (0.60%)

U.S. Stocks Down - Dollar Edges Up
Friday:  U.S. Stocks finished the week lower Friday during a shortened trading session amid lingering uncertainty surrounding Europe's debt worries and warnings and military attacks from North Korea.

The Dow Jones Industrial Average was down more than 90 points, led by American Express (AXP 42.41 -0.59 -1.37%), JPMorgan (JPM 37.59  -0.57 -1.49%) and Chevron (CVX 82.11 -0.82 -0.99%). Cisco (CSCO 19.54 +0.08 +0.41%) was among the only gainers on the blue-chip index. The S&P 500 and the tech-heavy Nasdaq were also lower. The CBOE Volatility Index, widely considered the best gauge of fear in the market, was trading at 22.22 at the close. All key S&P sectors were under pressure, led by materials, energy and financials.

Volume was extremely light as U.S. stock markets close at 1:00 pm EST following the Thanksgiving holiday.

At Mid-day we saw extremely low volume combined with a volatility index (VIX) reading of 20.88, combined with a higher dollar leads to a lower outlook for today's early close.

Stocks opened sharply lower in a holiday abbreviated session. The Dow Jones Industrial Average dropped 73 points, or 0.7%, to 11113, in recent trading.

The dollar rose sharply against most of its rivals Friday. Emerging-market stocks fell, sending the benchmark index toward its third weekly drop,  as worries intensify over European sovereign debt  while investors await early results from retailers on Black Friday sales. The DJIA was down 110 points at the market open, with Cisco the only component showing gains.  

Thursday: U.S. Market Closed for holiday. 

Wednesday's the Dow gained more than 150 points in afternoon trading, the S&P gained 16, and Nasdaq moved up more than 46 points in choppy low volume trading as the dollar released its gaining move before the open, and closed higher in the late afternoon.

The Dow rallied 150 points today to close at  11187, the S&P gained 17 points to 1198, and the Nasdaq surged 48 points to end at 2543.

The dollar trades higher versus most major rivals, with the euro under pressure as euro-zone debt turmoil continues.

U.S. stocks advanced Wednesday on an improving domestic economic picture, erasing some of Tuesday's sharp declines in quiet trading ahead of the Thanksgiving holiday.

The Dow Jones Industrial Average increased 84 points, or 0.8%, to 11120 in early trading, while the Standard & Poor's 500-stock index gained 9 points to 1190 and the Nasdaq Composite added 30 points to 2525.

The Reuters/University of Michigan consumer sentiment index's rose to 71.6 in November, up from 67.7 last month, topping expectations. The number of U.S. workers filing new claims for jobless benefits fell by more than expected last week to the lowest level since July 2008. Initial unemployment claims tumbled by 34,000 to 407,000, exceeding expectations of a drop of 4,000.

Americans' personal income grew at a faster pace than they have for much of the year, growing 0.5% after remaining flat last month. Consumer spending expanded by 0.4% heading into the holiday season.

Weighing on the downside, orders for durable goods marked the sharpest drop in almost two years, falling 3.3% for its second decline in three months. 

Wednesday's U.S. Futures market was up, and the dollar edged lower . S&P 500 futures rose 0.4 percent, pointing to a possible bounce in U.S. markets later in the day.The US Dollar corrected lower in Asian trade as risky assets retraced recent losses, with stock index futures pointing to more of the same in European hours. $EURUSD pair continues its southern journey despite the better than expected German IFO readings, European stocks have pared their gains too.

CHINA BUYING UP U.S. ENERGY ASSETS
China Huaneng Group, that nation's largest power generator by capacity, has agreed to buy India's GMR Infrastructure Ltd.'s (532754.BY) 50% stake in InterGen NV, a Massachusetts-based power-generation company, for about $1.2 billion. China Huaneng, as part of the deal, also would assume some $2 billion in debt. A deal could be announced as soon as Monday.

The Ontario Teachers' Pension Plan owns the other half of InterGen. China Huaneng is considering purchasing Ontario Teachers' stake as well, although no agreement has been struck.

Read the entire news story at: http://www.bloomberg.com/news/2010-08-17/china-huaneng-said-to-be-in-talks-to-buy-50-of-intergen-for-1-2-billion.html


HEDGE FUND UNDER ATTACK
Investors Look To Pull $3 BILLION From FrontPoint Hedge Fund
FrontPoint, one of the hedge funds caught up in the recent flurry of insider trading investigations, is facing $3 billion in investor redemption, according to the Financial Times, citing people familiar with the matter.

The fund, which has $7 billion in assets, had already been reported to be shutting down its healthcare fund amid news a doctor was accused of giving it insider information.

A FrontPoint spokesman declined to comment to Dow Jones on any redemptions. Morgan Stanley (MS), which owns the fund and had announced plans to sell its stake to FrontPoint's partners before the investigation, also declined to comment, deferring to FrontPoint.

Read the entire article at the Financial Times, FT.com
http://www.ft.com/cms/s/0/266d513c-f8d7-11df-b550-00144feab49a.html#axzz16P41Jh00



KANSAS MANUFACTURING INDEX UP
Kansas City Fed Nov Manufacturing Index Rose To 21

Manufacturing activity in the Federal Reserve Bank of Kansas City's district surged in November as did employee levels, according to a report released by the bank Wednesday. The report noted sharp production rises in machinery, high-tech, printing and transportation equipment, partly due to higher export orders. 

The Kansas City Fed's manufacturing production index, in a month-over-month comparison, more than doubled to 21 this month from 10 in October. From a year ago, the production index rose to 27 from 7.

NEW HOME SALES FALL

New Home Sales -8.1% To 283K; Consensus 314K

New home sales plunged in October as the U.S. housing market continued to struggle absent government incentives to spur deals. 

Sales of new homes in the U.S. slid 8.1% to a seasonally adjusted annual pace of 283,000, the Commerce Department said Wednesday. The fall was the fourth in six months. October's new home sales figure is down 28.5% from a year earlier.

High unemployment, tight credit and uncertainty regarding the direction of home prices are keeping buyers at bay. New home sales fell across much of the country in October. The South, however, posted a 3.1% increase in new home sales. New home sales fell 12.1% in the Northeast, 20.4% in the Midwest and 23.9% in the West.

In October, the median sale price for a new home fell 9.4% on a year-over-year basis to $194,900, just $800 higher than it was in October 2003. 


WEEKLY JOBLESS CLAIMS DECLINE
407,000 MORE JOBLESS AMERICAN'S
U.S. Jobless Claims Decline to 407,000, Lowest Since July 2008.

New U.S. claims for unemployment benefits dipped more than expected last week, a government report showed on Wednesday, signaling some minor improvement for the struggling U.S. employment seekers.

US DURABLE GOODS ORDERS DECLINE
Orders for U.S. Durable Goods Unexpectedly Dropped in October
Orders for U.S. goods meant to last several years unexpectedly decreased in October, raising the risk that companies will scale back on investments in new equipment.


Tuesday, the dollar edges up overnight. The euro tumbled, recently trading down 1.5% to $1.3406.

Tuesday, the Dow closed down 142 pts to 11036, the S&P shed 17 pts to 1180, and the Nasdaq fell 37 pts to 2494.

The gains in the dollar lifted the U.S. Dollar Index, which tracks the U.S. currency against a basket of six others, up 1.2%. Dollar Index pushes to fresh session high (UUP) The dollar provided solid performance in overnight trade has been extended this afternoon.  The Dollar Index has pushed as high as 79.35 in recent trade leaving it slightly under the Nov peak set last week at 79.46. 

Tuesday afternoon U.S. stocks continue to see substantial weakness in equities and commodities trading, as the markets are now reacting to the FOMC's comments by adding to earlier losses after the Federal Reserve downgrades its U.S. economic projections, citing worse-than-expected growth.awaiting the latest minutes from the US Federal Reserve.

US Stocks fell broadly in all sectors, led by energy and materials sectors. The Nasdaq Composite fell 1.7% to 2488, but the Standard & Poor's 500-stock index shed 1.6% to 1179, with all its sectors in the red. The energy and materials sectors led the declines.  The Dow Jones Industrial Average dropped 171 points, or 1.5%, to 11008, putting the market on track for its third drop in the last four sessions. The Dow's energy components led its drop as crude-oil futures fell below $81 a barrel. Chevron dropped 2.6% and Exxon Mobil fell 2.5%. 


At Tuesday's market open the Dow Jones Industrial Average dropped 120 points, or 1.1%, to 11056. Exxon Mobil led the broad decline with a 2.2% drop. Alcoa fell 2.1% and Travelers declined 1.7% amid the broad decline.

The CBOE Market Volatility Index, (VIX), is up 2.41, or 16%, to 20.81 in recent activity. It was the measure's biggest single-day jump since late August. The VIX, also dubbed the "fear index," tracks prices of protective options on the S&P 500 index. 

Geopolitical risk was a main driver behind Tuesday morning's market moves. North Korea fired artillery rockets at a South Korean island near a disputed western maritime border Tuesday, in a clash that killed two South Korean marines and set numerous buildings on fire. South Korean forces then fired back.

In addition to the deaths, at least 16 more were injured, military officials said. Three civilians were injured, and the island's 1,200 residents were sent scrambling for bomb shelters.

The clash also pushed down stocks in Asia and Europe and supported the dollar.

The inverse correlation between stocks and the dollar has been evident since summer's end. The negative correlation between stocks and the U.S. dollar has been increasingly apparent throughout the last few months. What we are watching is the sign of a negative par value of U.S. equities and commodities to the dollar in a depression trend. The equities no longer have momentum to overcome dollar divergence. This is a strong cautionary trend indicator.

Gross domestic product rose 2.5% in July through September, the Commerce Department reported, which is up from its initial estimate of 2.0% growth in the third quarter.

Fed Downgrades US Economic Projections
In a statement from the Federal Reserve issued today, several Fed officials saw a risk if inflation from the Q2 bond buying program and expressed concern that bond buying could put unwanted pressure on the U.S. Dollar. Minutes of the Fed's latest policy-setting meeting Nov. 2-3 show officials expect the economy to grow at a moderate pace next year, with unemployment staying disappointingly high.

Federal Reserve officials downgraded their assessment of the U.S. economy at their last meeting three weeks ago as they debated the benefits and costs of a new bold step to support the recovery.

Minutes of the Fed's latest policy-setting meeting released Tuesday, showed officials expect the economy to contract at a moderate pace next year, with unemployment staying disappointingly high and inflation growing in both food and fuels, but the official statement was uncomfortably low for manufactured goods.

U.S. gross domestic product, the broadest measure of economic activity, is projected to rise at an annual rate adjusted rate of between 3.0% and 3.6% in 2011 after growing by an adjusted rate of around 2.5% this year. That compares with a previous June forecast that GDP would increase between 3.5% and 4.2% next year.

several Fed officials believed unemployment was more likely to rise than fall if the economy continues to grow so softly. "Participants agreed that progress in reducing unemployment was disappointing," the minutes showed.

The slow recovery should keep the "official" unemployment rate, currently at 9.6%, around 9.0% at the end of next year as extended benefits and longer term unemployed drop off the "official" stated figures, Fed officials predicted. In June, they had forecast the jobless rate would be around 8.5% in the last three months of 2011.The more accurate rate of un-employed American's stands at more than 30% percent. Similar to 1929 levels.

The upper range of the longer-run jobless rate was increased to 6.0% from 5.3%, indicating that even Fed officials believe the recession has caused some permanent damage to the labor market.

The weak economy is expected to keep inflation below the central bank's informal target of just under 2.0% for manufactured goods all the way through 2013.

Low prices and a stubbornly high jobless rate led Fed officials this month to resume a bond purchase program that was used to combat the financial crisis. The step was attacked by Republican lawmakers and foreign government officials, who said it could hurt the U.S. dollar and bring high inflation.

The minutes showed that, even though Fed officials voted with an overwhelming 10-1 majority to support the move, several worried about its consequences. 

====MONDAY
Monday, U.S. Stocks were mostly lower in mixed choppy trading, as the dollar gained over Friday's close, affecting commodities and energy sectors. Equities also play lower as mixed earning reports came out.

The Nasdaq Composite was mainly in positive territory Monday, while the blue-chip Dow Jones Industrial Average has traded in the red. The day ended with the Dow closing down 24 pts today to 11178, the S&P fell 1 pt to 1197, while the Nasdaq gained 13 pts to 2532. 

In early trading, US stocks erased earlier gains and were trading mixed on Monday morning. Futures on the Dow Jones Industrial Average dropped 10 points to 11169. The VIX Volatility Index was up 1.92 to 19.95.

The Dow Jones Industrial Average dropped 74 points, or 0.7%, to 11129, the Nasdaq Composite slipped 0.1% to 2516, the Standard & Poor's 500 index shed 0.6% to 1193. 

The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, edged up 0.1%. The euro erased its gains, trading at $1.3638 recently.   Crude-oil futures slipped while gold futures edged higher.

Monday's Futures are pointing toward a weak start to the regular session of trading. European debt concerns remain the financial media's main reason while the dollar surges.  Some on Wall Street believe that a bailout of Ireland will not be enough to stabilize the region. Moody's Investors Service said that a "multi-notch downgrade" of Ireland's Aa2 rating is now the "most likely" outcome of its credit review. Technically, the DJIA should find support near 11,100, with resistance holding in the 11,200-11,250 area. The SPX, should trade between the 1,200 and 1,190 areas today.

In overnight trading stock futures were up before the bell in Asia, as well as, commodities as the dollar edged down below Friday's close.

Equities:

Thursday:

Del Monte Foods Buyout Deal Firmed
KKR leads $5 Billion deal to acquire San Francisco-based Del Monte Foods
A buy-out group led by Kohlberg Kravis Roberts has agreed to acquire Del Monte Foods for $19 a share, in a deal which values the US food and pet products company at about $5billion.

The deal is one of the biggest leveraged buy-outs this year and underlines the resurgence of
“take-private” deals in the US in the consumer products sector.

Read the entire article at the Financial Times, FT.com
http://www.ft.com/cms/s/0/d5fe994e-f8c8-11df-b550-00144feab49a.html?ftcamp=rss

Wednesday:

Ford Motor reduces its automotive debt by more than $1.9 billion as part of a debt-for-stock conversion offer, a move designed to speed the auto maker's return to investment-grade status.
Jewelry retailer Tiffany jumped 4.2% after reporting a 27% increase in earnings, topping expectations and offering an encouraging signal ahead of the holiday sales period.

Shares of Deere gained 0.6% after the machinery maker beat earnings estimates but painted a gloomier than expected short-term outlook.

Oracle jumped 2% after a jury ruled that German software group SAP must pay Oracle $1.3 billion because of intellectual-property theft. SAP was off 1.5%.

Deere & Co (DE.N) the Illinois-based company, reported a stronger-than-expected quarterly profit on Wednesday as sales of its tractors and harvesters in North America and other markets offset continued poor demand in Europe.The company reported that sales rose 35% percent to $7.2 billion and a fiscal fourth-quarter profit of $457.2 million, or $1.07 a share, compared with a net loss of $222.8 million, or 53 cents a share, a year earlier.

The world's largest maker of farm equipment offered a cautious preliminary forecast for 2011 with a projected profit of $2.1 billion.  That fell short of Wall Street's forecasts, sending its shares lower in pre-market trading.


Ford Motor Company (NYSE: F) will release its November US sales results at approximately noon ET.

Tuesday, Campbell Soup Co.'s earnings dropped 8.2% as increased promotional efforts failed to stoke soup sales.

Among stocks in focus, J. Crew jumped 16% as the clothing retailer confirmed plans to be taken private for $3 billion by private-equity firms TPG Capital and Leonard Green & Partners.

A federal jury in Oakland delivers the judgment against German business software maker SAP in a case that began in 2007. Oracle Corp. won a $1.3-billion verdict Tuesday in a lawsuit in which it alleged that German business software maker SAP infringed on the copyright of the Redwood Shores, Calif., company.

The verdict in the high-profile federal court case is one of the largest ever for copyright infringement. The eight-person jury in Oakland awarded the damages one day after the companies presented closing arguments.
US banking industry profits jumped again in the third quarter, as banks saw stronger revenue and set aside fewer reserves.

Tuesday, IMAX signed a major theatre deal with ODEON & UCI Cinemas Group; introduces joint venture business in Spain and Italy (IMAX) 24.66 -0.59 : Co and ODEON & UCI Cinemas Group, announced an agreement to install two new digital IMAX theatre systems under joint venture agreements in Mallorca and Milan, marking IMAX's first JV theatres in Spain and Italy. The Spanish location will open under the Cinesa brand in Mallorca. The location in Italy will operate under the UCI brand in Milan. Both locations are scheduled to open on May 20th, 2011.

Actively Traded Leading Global, Regional, & Domestic Sector & Commodity ETFs:
CBOE VIX- VXX +5.5%, VXZ +2.75%, US Dollar- UUP +1.25%, grains & feed- JJG +1.0%, long-term US treasuries- TLT +0.75%, TLH +0.50%, TIP +0.25%, gold- GLD +0.75%, IAU +0.75%, Yen currency shares- FXY +0.50%.

Actively Traded Lagging Global, Regional, & Domestic Sector & Commodity ETFs:
cotton- BAL -8.75%, iShares S Korea- EWY -5.5%, Turkey- TUR -5.25%, iShares Singapore- EWS -4.25%, iShares Spain- EWP -4.25%, iShares France- EWQ -4.0%, iShares Netherlands- EWN -4.0%, rare earth metals- REMX -3.5%, iShares Austria- EWO -3.75%, iShares Australia- EWA -3.75%, iShares Germany- EWG -3.5%, iShares Asia Pacific ex- Japan- EPP -3.5%, iShares Italy- EWI -3.5%. 

In Tuesday's trading, financial components led the decline, with Bank of America off 2.3% while J.P. Morgan Chase fell 2.4%. Monday, Green Mountain Coffee Roasters surged 14% after the specialty roaster announced plans to restate its financial statements for the past three fiscal years.Tyson Foods rose 3.2% after the meat processor rebounded from a prior-year loss. Exxon Sells Gulf of Mexico Stakes for $1.01 Billion - Bermuda-based Energy XXI Ltd. said it has acquired nine US Gulf of Mexico oil and natural-gas stakes from Exxon Mobil . Shares of Methanex Corporation (NASDAQ:MEOH) booked a new 52 week high today. 

Novell to Be Bought by Attachmate for $2.2 Billion
Novell Inc., the maker of Linux operating-system software, agreed to be bought by Attachmate Corp.

JUDGE OKS WIRETAPS IN GALLEON CASE
Wednesday, Federal prosecutors can use thousands of secretly recorded telephone conversations of Galleon Group founder Raj Rajaratnam in a long-running insider-trading probe, a federal judge rules.

INSIDER TRADING INVESTIGATION GRIPS HIGH TECH
Tech firms Sierra Wireless(SWIR), Broadcom(BRCM) and Atheros Communications(ATHR) have all been mentioned in a complaint filed by the government as part of its recent insider trading sweep. The U.S. Attorney's office has already arrested "Don Chu," who worked at an "expert network" firm providing research and industry expertise to hedge funds, for alleged insider trading. The complaint mentions an unnamed Sierra Wireless employee as one of Chu's contacts.

EXECUTIVE CHARGED IN INSIDER TRADING CASE
Wednesday, the first arrest for insider trading was an East Coast employee of a California research consulting firm is accused of hooking up hedge fund operators with corporate executives who provided inside information to company moves before they were published. Federal agents arrested Don Ching Trang Chu, an executive at a California "expert network" firm in connection with a sweeping three-year investigation of insider trading on Wall Street.

GOLDMAN SACHS PART OF INSIDER TRADING RING
Tuesday, At least one Goldman Sachs Group Inc. (GS) banker from the firm's health-care department is involved in the Federal Bureau of Investigation probe into insider trading on Wall Street, Fox Business Network's Charles Gasparino reported Tuesday, citing unidentified sources. The Wall Street Journal also reported Monday that Goldman Sachs is involved in aspects of the investigation into potential insider trading in the financial-services industry.


INSIDER TRADE INVESTIGATION BROADENS
Trading Inquiry Widens

Tuesday, Federal authorities, intensifying an insider-trading investigation, are demanding trading and other information from some of the nation's most powerful investment firms.

Hedge-fund giants SAC Capital Advisors and Citadel LLC, big mutual-fund company Janus Capital Group Inc. and Wellington Management Co., one of the nation's biggest institutional-investment firms, have received subpoenas from the Manhattan U.S. Attorney's office seeking trading, communications and other data as part of a broad criminal investigation, according to people familiar with the matter.

The Federal Bureau of Investigation also recently questioned an account manager at Primary Global Research LLC, a California company that provides "expert-network" services to hedge funds and mutual funds, people familiar with the matter say.

Read the entire article at the Wall Street Journal:
http://online.wsj.com/article/SB10001424052748704369304575633063046187560.html

FBI RAIDS HEDGE FUND OFFICES

U.S. stocks sank Monday as financials dropped after new details of a widespread insider-trading case emerged.  The Wall Street Journal reported that Federal Bureau of Investigation agents raided the offices of three hedge funds, Diamondback Capital Management LLC, Level Global Investors LP and Loch Capital Management LLC, amid a far-reaching insider-trading investigation.

Investors said they were bracing for financials to take a hit as more details of the investigation surface. "It is the brokerage and the investment bankers that are going to be the most likely targets of these investigations," said Robert Phipps, a director at Per Stirling Capital Management.

The Financial Select Sector SPDR (NYSE: XLF) is down 1.92% to $14.57. Goldman Sachs (NYSE: GS) has fallen 3.80% to $160.41. J.P. Morgan (NYSE: JPM) is down 2.79% to $38.31. Bank of America (NYSE: BAC) has shed 3.52% to $11.25 and Citigroup (NYSE: C) is down 2.53% to $4.16.

 
Company's Posting Earnings:

Investors will be looking for more data on business spending when Hewlett-Packard reports fiscal fourth-quarter results Monday.

Among the Dow's 30 stocks, Intel and Hewlett-Packard are in the green. HP reports after the close today. Hewlett-Packard 4Q Americas Revenue Up 10% To $15.1B, Sees FY11 Adj EPS $5.16-Adj EPS $5.26 .   

Tyson Foods Inc. (TSN) reported fourth-quarter net income of $208 million, or 57 cents per share.

Also reporting Monday is Brocade Communications Systems Inc. (BRCD), which makes switches and software used to connect corporate servers and data-storage systems and had predicted a strong finish to its fiscal year.

Also reporting this week are Campbell Soup Co. (CPB), which last week cut expectations as soup sales have stayed weak in the U.S. despite its efforts to draw consumers with more promotions. Campbell will post results Tuesday, a day after meat processor Tyson Foods Inc. (TSN).J. Crew Group Inc. (JCG) and Guess? Inc. (GES) are among the retailers reporting fiscal third-quarter results next week. Both post results Tuesday.

Jewelry retailers Tiffany & Co. (TIF) reports Wednesday, a day after Zale Corp. (ZLC), which has been struggling, and Kay parent Signet Jewelers Ltd. (SIG, SIG.LN).

Wells Fargo & Co. (WFC) will pay $100 million to Citigroup Inc. (C) to settle a heated fight between two of the nation's biggest banks that began when Wells managed to sweep a stumbling Wachovia Corp. away from Citi's grasp at the very height of the 2008 banking crisis.

Del Monte Takeover Talk
Del Monte Foods Co. (DLM) shares hit an all-time high after the Financial Times reported the food company is in advanced takeover talks with private-equity firm KKR & Co. (KKR).

Economic News:

Reports on regional manufacturing activity are expected Monday from the Chicago Fed, Tuesday from the Richmond Fed and Wednesday from the Kansas City Fed.

The Financial Stability Oversight Council, created by the Dodd-Frank financial overhaul law, is scheduled to meet Tuesday.

Details on existing-home sales will be released Tuesday, as is the September reading of the Case-Shiller home-price indexes, while new-home sales are due a day later.

The government will issue its second estimate of third-quarter gross domestic product. Economists expect the figure to be revised to 2.4% growth from the first estimate of 2%.

US HOME SALES DECLINED FURTHER
US Home Sales Fall 2.2% In October

Sales of previously occupied homes decreased by 2.2% to a seasonally adjusted annual rate of 4.43 million, the National Association of Realtors said Tuesday.

The U.S. housing market is struggling to recover on its own without government assistance. A tax credit for first-time buyers propped up sales earlier in the year, but sales plunged after it ended, and home sales had their slowest summer in over a decade.

Sales of previously occupied homes are well below a year ago, when the government was still providing tax credits to boost sales. Resales in October were down 25.9% from a 5.98 million-unit annual pace in October 2009.


U.S. COMMUNITY BANKS IN TROUBLE
Federal Reserve Files Enforcement Actions Against 4 Small Banks

The U.S. Federal Reserve said Tuesday that it has filed enforcement actions against banks in Missouri, Mississippi, California and Washington.

The banks are: America's Community Bank in Blue Springs, Mo.; Cadence Financial Corp. (CADE) in Starkville, Miss.; Orient Bancorporation and Bank of the Orient in San Francisco, Calif., and Viking Financial Services Corp. in Seattle, Wash.

The FDIC is ordering the banks to strengthen their capital positions and submit acceptable progress plans, and restricting them from paying dividends without prior written approval from regulators.

US 3Q GDP GROWTH REVISED UP TO 2.5%
The U.S. economy expands at a slightly faster pace than previously thought and corporate profits rise, but growth is still too weak to cut high unemployment. Economists were expecting revised GDP growth of 2.4% in the quarter.

RICHMOND FED MANUFACTURING INDEX RISES
Economic activity among manufacturers in the central Atlantic region expands further in November with a solid gain in jobs, according to the Federal Reserve Bank of Richmond, whose manufacturing general-business index rises to 9 from 5 in October.


U.S. Market Note:
U.S. Markets will close Thursday for the Thanksgiving holiday.


CRUDE OIL:
U.S. Crude Oil: $83.81 per barrel
FRIDAY OIL FUTURES: Nymex Crude Closes 11c Lower At $83.75/Bbl

WEDNESDAY OIL FUTURES: Crude Settles $2.61 Higher At $83.86/Bbl


DOE: US Crude Oil Stocks +1.029M Bbl In Wk; Seen -1.9M Bbl
US Refineries Ran At 85.5%; Seen 84.40%
US Distillate Stocks -0.541 Mln Bbl At 158.251 Mln Bbl
US Distillate Stocks -0.541M Bbl In Wk; Seen -1.5M Bbl
US Gasoline Stocks +1.913 Mln Bbl At 209.592 Mln Bbl
US Gasoline Stocks +1.913M Bbl In Wk; Seen -0.9M Bbl

Wednesday, the Department of Energy reported U.S. crude inventories rose 1.029 million barrels. Gasoline stockpiles posted a large rise, of 1.913 million barrels, to 209.6 million barrels, compared with an expected decline, the department's Energy Information Administration said in its weekly report.

Distillate stocks, which include heating oil and diesel fuel, fell 0.541 million barrels to 158.3 million barrels, compared with analysts' forecast of a drop of 1.5 million barrels. Refining capacity utilization rose 1.5 percentage points to 85.5%. Analysts had expected a 0.4 percentage point rise. 

Wednesday, crude futures aimed higher following improving data on employment and consumer spending, as traders await a weekly report on U.S. oil and fuel inventories.

Tuesday, light, sweet crude for January delivery recently traded 44 cents, or 0.5%, higher at $81.69 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 39 cents higher at $83.64 a barrel.

Tuesday, crude declined as the dollar gained in overnight trades, and as tensions on the Korean peninsula and worries about European sovereign debt weighed on markets.,

Light, sweet crude for January delivery recently traded $1.01, or 1.2%, lower at $80.73 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded $1.16 lower at $82.80 a barrel.

Tuesday, Light, sweet crude for January delivery recently traded 62 cents, or 0.8%, lower at $81.12 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 81 cents lower at $83.15 a barrel. 


Monday, Light, sweet crude for January delivery settled down 24 cents, or 0.3%, at $81.74 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange recently lost 54 cents, or 0.6%, at $83.80 a barrel.

The American Petroleum Institute said Monday U.S. retail gasoline prices should begin to soften leading into the December holiday season as crude prices decline. Retail gasoline prices have risen in recent weeks, threatening to eat a larger portion of consumers' budget ahead of the key holiday shopping season.

December RBOB fell 4.41 cents, or 2%, to settle at $2.1519 a gallon. December heating oil lost 0.58 cent, or 0.3%, to $2.2686 a gallon.
In early trading, light, sweet crude for January delivery was down 81 cents, or 1%, at $81.17 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange fell 80 cents, or 1%, at $83.54 a barrel.

Front-month December reformulated gasoline blendstock, or RBOB, recently fell 5.29 cents, or 2.4%, at $2.1431 a gallon. December heating oil traded down 1.87 cents, or 0.8%, at $2.2557 a gallon.


NATURAL GAS:
Natural Gas: $ 4.43
FRIDAY US GAS: Futures Close Up 0.3% at $4.403/MMBtu

WEDNESDAY US GAS: Futures Close Down 0.3% At $4.253/MMBtu  
TUESDAY US GAS: Futures Close Down 0.2% At $4.261/MMBtu 

Tuesday morning Natural gas futures tick to their lowest levels of the morning at $4.151, giving up almost all of yesterday's rally; now off 11 cents to $4.161.

PRECIOUS METALS:
Gold:  $ 1,363
Silver:$ 26.74

Wednesday, Engelhard Corp's base price for industrial gold bullion was $1375.48 per troy ounce, down $5.01 from previous. It's selling price for gold in fabricated form was $1478.64, down $5.39.

Handy & Harman's base price for gold was $1372.50 per troy ounce, down $5.00. The fabricated form price was $1482.30, down $5.40. 

Tuesday, Comex gold futures extended early morning gains as rising global political and macroeconomic concerns boosted investor appetite for the safe harbor asset.

Tuesday's most actively traded contract, for December delivery, settled up 1.5%, or $19.80, at $1,377.60 per troy ounce on the Comex division of the New York Mercantile Exchange.

Platinum for January delivery, the most actively traded contract, settled up 0.1%, or $2.20, at $1,657.70 per troy ounce on the Nymex.

Palladium for December delivery, the most actively traded contract, settled up 0.9%, or 64 cents, at $691.10 per troy ounce on the Nymex.

Engelhard Corp's base price for industrial gold bullion was $1380.49 per troy ounce, up $21.03 from previous. It's selling price for gold in fabricated form was $1484.03, up $22.61.

Handy & Harman's base price for gold was $1377.50 per troy ounce,
up $21.00. The fabricated form price was $1487.70, up $22.68.



Monday, the most actively traded gold contract, for December delivery, was recently unchanged at $1,352.30 an ounce on the Comex division of the New York Mercantile Exchange.

Engelhard Corp's base price for industrial gold bullion was $1359.46 per troy ounce, up $14.03 from previous. It's selling price for gold in fabricated form was $1461.42, up $15.08.

Handy & Harman's base price for gold was $1356.50 per troy ounce, up $14.00. The fabricated form price was $1465.02, up $15.12.

Copper is also trading lower at $3.75. The most actively traded contract, for December delivery, was recently down 1.7%, or 6.5 cents, at $3.7685 per pound on the Comex division of the New York Mercantile Exchange.


U.S. TREASURYS/BONDS:
Treasurys edged higher Tuesday, pushing the yield on the 10-year note down to 2.81%. In recent trade, the 10-year note was up 14/32 to yield 2.824% and the 30-year was 31/32 higher to yield 4.190%. Shorter-maturity Treasurys were lagging ahead of a healthy dose of supply this week.

The U.S.government is set to sell $99 billion in short-term Treasurys this week. Auctions kick off Monday afternoon with a sale of $35 billion in two-year Treasurys.

At market open, we saw a mixed response, with lower demand for the two-year note lifting its yield to 0.51%. There was higher demand for the 10-year note which pushed its yield down to 2.83%. The Fed bought $8.257 billion Treasurys in its first of two Treasury buying operations in the holiday shortened week.

3 Month     0.13%     0.00 (0.00%)
6 Month     0.19%     0.00 (0.00%)
2 Year     0.53%     +0.02 (3.92%)
5 Year     1.50%     +0.02 (1.35%)
10 Year     2.87%     +0.01 (0.35%)
30 Year     4.22%     0.00 (0.00%) 



____________________________________________________________

Canadian Market:

STOCKS DOWN IN TORONTO

Friday: Toronto stocks closed lower, lead by materials and energy sectors.  At Mid-day Friday, the S&P/TSX Composite Index was down 42.85 points, or 0.3%, at 12902.96. Declines led advances 769 to 592. Trading volume was 183.6 million shares. The S&P/TSX 60 Index was down 2.34 points, or 0.3%, to 739.12.

Canada Budget Deficit Declines To C$3.9B

The Canadian government's budget deficit narrowed to C$3.9 billion in September from a C$5 billion deficit in the same month last year, the federal finance department said on its website Friday.

Overall revenue rose 13.1% to C$17.3 billion in September, reflecting growth in most revenue streams, including a 3.5% increase in personal income tax revenue and a 60.5% jump in corporate income tax revenue.

In September, program spending rose 3.1% to C$18.6 billion on higher transfer payments and higher spending on other programs.
Website: http://www.fin.gc.ca 


Wednesday: Toronto stocks were higher Wednesday, with financials, energy, industrials stocks higher as the U.S. dollar relaxed its drive up. At 11:45 a.m. EST (1645 GMT), the S&P/TSX Composite Index was up 72.40 points, or 0.57%, at 12866.15. Advances led declines 806 to 610. Trading volume was 194.40 million shares. The S&P/TSX 60 Index was up 4.73 points, or 0.65%, at 736.81.

Mape Leaf Foods was down C$1.27 to C$11.42 on news that Ontario Teachers' Pension Plan is selling its entire 25% stake in Maple Leaf stake at C$10.50 a share, a 17% discount to Maple Leaf's trading price of C$12.69 before being halted late Tuesday.

Tuesday, at 11:45 a.m. EST (1645 GMT), the TSX was down 133.44 points, or 1.03%, at 12795.57. Declines led advances 972 to 437. Trading volume was 216.20 million shares.The S&P/TSX 60 Index was down 8.32 points, or 1.12%, at 732.29.

Monday, Toronto stocks ended slightly lower Monday, with gains in the materials group offset by declines in the financial services and energy groups. The S&P/TSX Composite Index fell 27.32 points, or 0.21%, to 12929.01. Declines led advances 822 to 814. Trading volume was 471.80 million shares, up from Friday's total of 429.40 million shares. The S&P/TSX 60 Index closed down 2.61, or 0.35%, to 740.61 points.

Following European and US market action most of Toronto's stocks declined in early trading, led by energies, base and precious metals as the US dollar advanced.The stock market was lower at midday, weighed down by declines in the energy and materials sectors.

Potash One was up 89 Canadian cents to C$4.51 after Germany's K+S AG offered C$4.50 a share for the company. The deal is worth about C$434 million and represents a 24.3% premium to Potash One's Nov. 19 closing price.

At 11:45 a.m. EST, the S&P/TSX Composite Index was down 59.63 points, or 0.46%, at 12896.70. Declines led advances 756 to 636. Trading volume was 215.70 million shares. The S&P/TSX 60 Index was down 4.16 points, or 0.56%, at 739.06. .

Canadian Overseas Petroleum Limited ("COPL") (TSX-V: XOP), has set the price for its public offering at $0.50 per share.

Rusoro Exports First Gold Shipment
Rusoro Mining Ltd.(CA:RML 0.28) Rusoro reported that the Company's first offshore gold sale has been completed. The Company delivered 4,924.2 ounces of gold to Switzerland for its gold buyer on November 17, 2010 at a spot gold sale price of US$ 1342.5 per ounce less associated costs and commissions.

Rusoro's first gold export in accordance with the Central Bank of Venezuela ("CBV") permit which became effective on November 1, 2010, authorized the sale of approximately 50% of the gold produced from the Choco 10 and Isidora mines from August 11, 2010 through September 30, 2010.


Toronto Indexes, Volume; 1 PM EST Composite Down 41.74

 S&P/TSX Composite   12904.07  off  41.74  or 0.3%
 S&P/TSX 60 Index      738.96  off   2.50  or 0.3%
 Financials            181.66  off   0.22  or 0.1%
 Materials             418.32  off   2.91  or 0.7%
 Energy                297.41  off   1.73  or 0.6%
 Industrials           106.97  up    0.00  or 0.0%
 IT                     29.99  off   0.04  or 0.1%

   Volume       Friday          Thursday
   12-1                81.2M            32.9M
   9:30-1             275.5M           158.6M



____________________________________________________________

South American Markets:

BRAZIL:

Brazil Stocks Close Higher Wednesday
Brazilian blue-chip shares rebounded Wednesday to close higher. The benchmark Ibovespa stocks index closed 2.5% higher at 69,629 points, up from Tuesday's close at 67,953 points. Trading volume of 6.72 billion Brazilian reals ($3.9 billion), with the U.S.

Thanksgiving holiday Thursday expected to reduce volume through the end of the week.

Investors reacted positively to president-elect Dilma Rousseff's choices for her economic team, which is expected to maintain the successful policies of outgoing President Luiz Inacio Lula da Silva's administration.

Finance Minister Guido Mantega will remain in his post, while longtime central bank employee Alexandre Tombini will take over as bank president from Henrique Meirelles. In a statement, Rousseff pledged to maintain the foundations of economic policy that have allowed the country to achieve a stable economy and sustained growth over the past decade.

Shares of mining giant Vale SA (VALE, VALE5.BR) closed 2.7% higher at BRL49.50. State-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, climbed 2.4% to BRL25.24. Independent driller OGX Petroleo e Participacoes (OGXP3.BR) advanced 1.0% to BRL20.96. OGX said earlier that it had discovered natural gas at an onshore field in the Maranhao Basin. A well at the field was estimated after testing to produce as much as 3.4 million cubic meters of natural gas. Shares of Parana state-controlled utility Companhia Paranaense de Energia (ELP, CPLE6.BR), or Copel, gained 2.9% to BRL43.00. Steelmakers, meanwhile, were broadly higher. Shares of integrated steelmaker CSN (SID) rose 2.2% to BRL27.86, while flat steel maker Usiminas (USIM5.BR) ended 1.9% higher at BRL20.22. Steel giant Gerdau (GGB) closed 2.9% higher at BRL21.10. Construction companies also rebounded. Cyrela Realty (CYRE3.BR) soared 4.5% to BRL21.05, while Gafisa (GFSA3.BR) gained 3.3% to BRL12.38.


Brazilian Stocks Close Lower Tuesday
Brazil's benchmark Ibovespa stock index dropped for a second day, closing 2.4% lower at 67,953 points. That is the lowest close since Sept. 21.

Blue chips were lower across the board Tuesday as all but five of the 67 stocks on the index fell. State oil company Petroleo Brasileiro SA (PBR, PETR4.BR) fell 1.6% to BRL24.65 on lower global oil prices. Vale (VALE, VALE5.BR), the world's biggest iron-ore producer, dropped 2.2% to BRL48.20 as global metals prices fell.Telecom leader Tele Norte Leste Participacoes (TNLP4.BR), or Oi, declined 2.3% to BRL24.03. Steel maker Usiminas slumped 4.1% to BRL19.85, while rival CSN (SID, CSNA3.BR) slid 2.9% to BRL27.25. Aircraft manufacturer Embraer fell 0.7% to BRL12.23. Minas Gerais utility Cemig was also down, losing 0.9% to BRL28.34.

BRAZIL TO DROP CENTRAL BANK ADVISER 
Press reports Monday indicated Brazilian President-elect Dilma Rousseff will not reappoint Central Bank of Brazil Governor Henrique Meirelles. Rousseff and Meirelles are due to meet in Brasilia later this week.

Brazil Current Account Deficit Widens To 2.43%/GDP

A declining foreign trade surplus due to rising imports has led to another widening of Brazil's 12-month current account deficit, according to the Brazilian Central Bank on Tuesday.

Brazil's 12-month current account deficit widened in October to $47.99 billion, equal to 2.43% of gross domestic product. The 12-month current account deficit as of September was $47.3 billion, or 2.4% of GDP.

Brazilian Stocks Closed Lower Monday

Brazil's benchmark Ibovespa stock index closed 1.78% lower at 69633 points. Volume was moderate at 5.41 billion Brazilian reais ($3.1 billion).

State oil company Petrobras retreated 2.49% to close at BRL25.06 on lower global oil prices. Mining major Vale saw its shares fall 0.52% to BRL49.30 as global metals prices fell. Telecom leader Tele Norte Leste Participacoes, or Oi, declined 2.84% to close at BRL24.60. Steel maker Usiminas dropped 4.21% to close at BRL20.69. Aircraft manufacturer Embraer fell 1.99% to BRL12.31. Minas Gerais utility Cemig was down 2.79% to BRL28.59. Real estate developer Gafisa ended 3.86% lower at BRL12.44.

MEXICO:

Mexican Stocks Gain Friday

The IPC index of Mexico's 35 leading shares was up 0.1% to 37008, advancing toward the record high close it posted Wednesday of 37079 points. Volume was thin at 14.7 million shares traded worth 352.9 million pesos ($28.3 million).

The IPC started the session in negative territory, in line with U.S. market declines, before clawing its way higher. The index has been on a tear in recent months and is up nearly 11% from its end-September level and 15% higher than its end-2009 level.

The index briefly touched a new intraday high of 37,154 points in thin trade on Thursday before ending that session in the red. Still, the brief intraday gain signaled to several technical analysts that the index's upward tilt continues and that the IPC could hit 38000 points in the next few sessions.

Among blue chips attempting to tack on gains early Friday, wireless carrier and market bellwether America Movil was up 0.4% to MXN35.74, cement group Cemex was 0.7% higher at MXN11.63 and media conglomerate Televisa was up 0.9% at MXN58.10.

The Mexican peso, was recovering from weaker levels against the dollar shown in early morning trades. The peso was recently quoted at 12.4615 to the dollar .

Mexico Stocks Gain Wednesday

The IPC index of leading Mexican shares was gaining 0.8% to 36553 at around 10:20 a.m. EST, on volume of 1.3 billion pesos ($105 million).

Early Wednesday, wireless communications operator America Movil was adding 0.5% to MXN35.25, mining interest Grupo Mexico was up 1.3% to MXN43.08 as world copper prices rose and cement maker Cemex was gaining 1.5% to MXN11.40 despite disappointing data on the U.S. housing market, which accounts for a large chunk of the company's sales.

INFLATION RISES IN MEXICO
Mexico CPI Jumps 0.68%

Mexico's consumer prices rose more than expected in the first half of November. Food, fuel and energy moved up.

The Bank of Mexico said Wednesday the consumer price index rose 0.68% in the first two weeks of this month, pushing the 12-month rate up to 4.32% from 4.02% at the end of October. The core inflation index, which excludes volatile prices for energy and fresh fruits and vegetables rose 0.16% in the first half of November, moving the annual rate up to 3.65% from 3.58% at the end of last month.

TUESDAY MEXICAN STOCKS DROP LOWER

Mexico stocks trend lower at 10:20 a.m. EST Tuesday, the benchmark IPC index of most-traded Mexican shares was down 0.9% at 36,387.63 points. Volume was 23.5 million shares worth 630.8 million pesos ($50.6 million).

Wireless operator and IPC leader America Movil (AMX) L shares were down 1% at MXN35.16, cement maker Cemex (CX) CPO shares were off 1.1% at MXN11.32, copper miner Grupo Mexico (GMEXICO.MX) B shares were 0.9% lower at MXN42.67, and retailer Wal-Mart de Mexico (WMMVY) V shares were down 1.1% at MXN34.83.

The peso was quoted in Mexico City trading sharply weaker at MXN12.4550 to the dollar.

the National Statistics Institute, or Inegi, said Tuesday that Mexican retail sales rose 4.1% in September from a year earlier while slipping 0.08% from August in seasonally adjusted terms.

MEXICAN STOCKS MIXED

The IPC index of leading Mexican shares advanced 109 points, or 0.3%, to 36710 -- topping its previous high finish reached on Friday. Volume was 164 million shares traded worth 5.53 billion pesos ($449.6 million). Trade was mixed, with just 23 of the index's 35 companies charting gains.

Consumer-oriented shares led Mexico's stock gains Monday, with the V shares of the country's largest retailer, Walmex, advancing 1.6% to MXN35.20 and coke bottler Coca-Cola Femsa's L shares rising 3.7% to MXN102.56. Market bellwether and wireless communications provider America Movil's L shares, though, pulled back 0.2% to MXN35.53.

Stocks were trending lower early Monday as the dollar regained attention and raised over the impact of European currency.

At 10:30 a.m. EST, the IPC index of Mexico's leading shares was off 0.1% to 36568 points, retreating slightly after having hit a record high close Friday of 36601 points.

The market benchmark and wireless phone operator America Movil's L shares were off 0.5% to 35.44 pesos ($2.88), while cement maker Cemex's CPOs were down 0.2% to MXN11.42 and pharmaceuticals maker Genomma Lab's B shares were advancing 0.8% to MXN28.06.

The Mexican peso, meanwhile, was also losing ground, trading at 12.2850 to the dollar versus MXN12.2625 at the close Friday.

Mexico's 3Q Gross Domestic Product Up 5.3%

The National Statistics Institute, or Inegi, said Monday that gross domestic product, which measures output of goods and services, grew 5.3% in the third quarter from the year-earlier period.

Industrial production in the July-September period rose  6.2% from the year-ago period, led by a 9.6% increase in manufacturing. Construction edged up 0.9%, utilities were up 3.2%, and mining rose 2.9%. Services expanded 4.2% from the third quarter of 2009, led by an 11.9% increase in commerce.

Economic activity continued its expansion from the second quarter, increasing 0.73% in seasonally adjusted terms, for an annualized rate of 3%.

Manufacturing exports have led the economic rebound so far this year, although the growth is expected to decelerate as U.S. demand for Mexican goods slows. Domestic demand is expected to contribute more to growth as employment levels improve following the 2009 recession.

ARGENTINA:

Argentina's 3Q Unemployment Falls To 7.5% From 9.1% Year Ago

Argentina's unemployment rate fell to 7.5% in the third quarter as employers continued to boost hiring amid an economic boom. The jobless rate is down from 9.1% during the same quarter a year earlier and down from 7.9% in the second quarter. The jobless number, reported Tuesday was issued by the national statistics agency, Indec.

Argentina Trade Surplus $11.42 Billion
Argentina posted a trade surplus of $931 million in October, as both imports and exports surged due to strong domestic demand and soaring grain shipments.

The surplus was lower than the median forecast of economists polled by the Central Bank of Argentina who had expected October's surplus to total $986 million.

The surplus, published Tuesday by the national statistics agency, Indec, is down from the $1.15 billion surplus during the same month a year ago and from $1.07 billion in September.

Exports rose 22% in October to $5.5 billion, while imports jumped 35% to $4.9 billion.

The higher overall value of exports was due mainly to increased volume, according to Indec, which noted that export prices were up 3% from the same period a year earlier.The same was true for imports, which rose 19% in terms of volume and 5% in terms of prices.

So far this year Argentina has accumulated a trade surplus of $11.426 billion through October.

The biggest share of exports--about 24%--went to other members of the South American customs union known as Mercosur. Asian nations, including China, came in second at 20%. The European Union came in third at 16%.

Mercosur provided one third of Argentina's imports in October. Asian countries accounted for 21% of imports, while European nations made up about 18%.

CHILE:

CHILE STOCKS MOVE UP WEDNESDAY
Chile Stocks Rebound 1% Midday, Break Above 5,000 Points 

Chile's blue-chip Ipsa index rebounded 1% midday Wednesday, following the previous session's tumble, breaking above the 5,000 point barrier for the first time in two and a half weeks.

 Forestry conglomerate Copec (COPEC.SN) gained 1.9% to CLP9,798.00, retail holding behemoth Cencosud (CENCOSUD.SN) increased 2.8% to CLP3,675.00 and flagship carrier LAN Airlines (LFL, LAN.SN) expanded 1.6% to CLP15,140.00.

Chilean Stocks Close 0.7% Lower Tuesday

Chile's Ipsa blue-chip stock index ended lower Tuesday as the pessimism that permeated global markets seeped into the local one as well.

The Ipsa closed 0.7% lower at 4951.73 while market volume shrank to 59.7 billion Chilean pesos ($124.0 million) against CLP88.6 billion the previous session.

Chile stocks fell across the board, with commodities-related shares took a larger decline amid the U.S. Dollar's gains.

Integrated iron ore and steel producer Cap (CAP.SN) tumbled 1.7% to CLP24,900.00 and forestry and fuel conglomerate Copec (COPEC.SN), the heaviest weighted share on the Ipsa, shed 1.6% to CLP9,614.00.

____________________________________________________________
European Markets:

EUROPEAN STOCKS DECLINE FRIDAY
European stocks fell Friday, with the Spanish market suffering particularly steep losses, as worries over sovereign-debt contagion in the euro zone continued to escalate.

The Stoxx Europe 600 index dropped 0.4% to 266.60, bringing weekly losses to 1.1%.

Volume was thinner than usual as many traders stayed away from their desks. U.S. markets were closed Thursday and are only open for a half-day Friday.

The Spanish Ibex 35 index slumped 1.8% to 9,547.20, as banking shares weighed. Shares of BBVA fell 2.4% and Banco Santander declined 3.7%. The PSI 20 index in Lisbon fell 0.6% to 7,581.80. In Hungary, the BUX stock index declined 2.8% on escalating worries over the government's planned changes to the private pension-fund system.

The euro gained 1% against the forint.


European Stocks Advance Thursday
The main European equity markets advanced Thursday as a strong finish on Wall Street offset worries about sovereign debt in peripheral euro-zone countries. Banks across Europe were also mostly weaker as debt problems continued to weigh on sentiment. Credit Suisse Group (CH:CSGN 39.08, -0.10, -0.26%)  dropped 0.3%. The Stoxx Europe 600 index (STOXX600 267.72, +1.43, +0.54%)  rose 0.5% to 267.72. Europe's FTSEurofirst 300 rose about 0.1 percent. 

Wednesday, European stock markets rose from a six-week closing low, with the FTSEurofirst 300 up 0.4 percent in early trade. London's FTSE 100 rose 0.7 percent, Germany's DAX 0.5 percent and France's CAC 40 0.6 percent.

European market ended lower Monday.

Spot gold was trading higher in Europe Monday, tracking a firmer euro, but market participants are forecasting continued volatility as uncertainty over the euro zone persists and the year-end approaches. Tuesday, Germany publishes 3Q GDP data at 0700 GMT, along with the Purchasing Managers Index at 0830 GMT. Euro zone PMI is due at about 0900 GMT, while in the US 3Q GDP is due at 1330 GMT and existing home sales at 1500 GMT. 
 

LONDON:
In London Friday, losses for mining and bank shares dragged the FTSE 100 index down 0.5% to 5,668.70, weighed by shares of Vedanta Resources PLC, off 3.2%, and BHP Billiton PLC, off 1.6%.

Friday: The Financial Service Authority, or FSA, said Friday Neil Rollins, a former senior manager of PM Onboard Limited, a waste industry firm, was found guilty of five counts of insider trading and four counts of money laundering at Southwark Crown Court.

U.K STOCKS CLOSE HIGHER THURSDAY
Mixed comments by the Bank of England pushed the British Pound to a low of 1.5732 during the
European trade as the central bank maintained a cautious outlook for the U.K. economy. The Loonie is making some minor gains against the greenback on strong economic data from earlier in the week as the US markets are closed; at 1.0104

The U.K.’s FTSE 100 (UK:UKX 5,699, +41.83, +0.74%) closed up 0.7% to 5,698.93 as gains for real-estate stocks and some miners helped lift the index. Shares in Anglo American (UK:AAL 2,985, +77.00, +2.65%) rose 2.7%.

Shares in Capital Shopping Centres Group (UK:CSCG 381.50, +44.10, +13.07%) were the biggest gainer in the FTSE index, climbing nearly 13% after the company said it had received a preliminary approach from Simon Property Group Inc.(SPG 100.27, 0.00, 0.00%) . See London Markets.

The potential bid also provided a lift for other real-estate companies. Hammerson (UK:HMSO 406.80, +19.40, +5.01%)  rallied 4.8% and British Land (UK:BLND 492.40, +14.20, +2.97%) gained 2.4%.

Daily Mail & General Trust (UK:DMGT 544.00, -20.50, -3.63%)  dropped 3.5% in London after the group reported its earnings for the latest fiscal year.

London Stocks End Higher Wednesday
FTSE 100                     5657.10   +75.82   +1.36%
FTSE 250                    10731.10  +111.81   +1.05%
DJ UK Smaller Companies       845.73    +3.85   +0.46%

U.K. Prime Minister David Cameron said Wednesday he is concerned about the impact of Ireland's economic woes on the U.K. economy. The leading hawk on the Bank of England's Monetary Policy Committee Wednesday said a policy of very low interest rates may be eroding monetary discipline and the credibility of the institution, adding that the economy could withstand a gradual rise in the key rate.

UK 3Q GDP Unrevised
U.K. third-quarter growth was left unrevised by the Office for National Statistics Wednesday, with figures showing net trade contributed around half the quarter's 0.8% growth.

Rolls-Royce Racks Up New Orders
Rolls-Royce Group PLC (RR.LN) is raking in new orders for commercial aircraft engines even though its reputation has been tarnished by the high-profile failure of one of its jets on an Airbus A380 aircraft.

Capital Shopping Centres In Talks 

Capital Shopping Centers Group PLC (CSCG.LN) Wednesday confirmed it is in advanced talks to buy Manchester's Trafford Centre for GBP750 million in a deal that would see the current owner of the northern England venue become the biggest shareholder in the offshoot of the former Liberty International PLC.

Glaxo Exits US Penicillin Market

GlaxoSmithKline PLC (GSK.LN) is exiting the U.S. penicillin market by selling its oral penicillin facility there and the plant's domestic product portfolio to Indian generic drug maker Dr. Reddy's Laboratories (RDY).

FTSE Ends Lower Tuesday
FTSE 100                     5581.28    -99.55   -1.75%
FTSE 250                    10619.29   -177.26   -1.64%
DJ UK Smaller Companies       899.22    -12.89   -1.41%

UK SET FOR IMMIGRATION REFORM
The U.K. said Tuesday it would cut the number of work visas issued to non-European Union migrants by a fifth to a maximum of 21,700 a year, as it seeks to slash immigration. Students, who represent almost two-thirds of non-EU migrants coming to the U.K. each year, will also be subject to much tougher conditions.

Under the proposals outlined Tuesday, which will take effect in April 2011, the number of skilled migrants allowed in without a job offer will be slashed to just 1,000 a year, May told parliament's lower House of Commons.

These visas will be reserved for "wealth creators" and "people of exceptional talent", amid criticism that some of the brightest academics, scientists and artists will be stopped from coming to the U.K.

UK Banks Exposed To Irish Economy

The direct exposure of U.K. banks to Ireland's banks and Irish government debt are not "worrying," Adair Turner, chairman of U.K. regulator, the Financial Services Authority said Tuesday.

Net mortgage lending by U.K. banks grew at a slightly faster pace in October than a month earlier, but the outlook continues to deteriorate as mortgage approvals eased yet again and to a 19-month low, data from the British Bankers Association showed Tuesday. 

On Tuesday, Patrick Honohan, governor of the Central Bank of Ireland, says selling Ireland's banks to foreign buyers may be desirable. 'The banks are for sale as far as I'm concerned,' Honohan says, as large global banks often absorb losses better.
The head of U.K. supervisor, the Financial Services Authority, said Tuesday he doesn't support breaking up large banks to deal with the too-big-to-fail problem but recognized there could be a case for "structural reform" to shake up competition in the U.K. banking sector.

UK Wheat Exports At 2M Tons By Year End-Gleadell Head

U.K. wheat exports may rise as high as 2 million metric tons by the end of the year, eating into the country's stocks, the head of grain merchant Gleadell Agriculture Ltd. said Tuesday.

London Stocks Close Lower Monday

FTSE 100                     5680.83   -52.00   -0.91%
FTSE 250                    10769.55   -30.56   -0.28%
DJ UK Smaller Companies       912.11    -0.22   -0.02%

UK banks understandably lead the move lower--RBS -3.8% and Lloyds Banking Group -2.7%--given the exposure these banks have to Ireland debt.

A survey conducted by the financial information firm Markit showed Monday that U.K. business confidence for the coming 12 months has fallen as investment plans have weakened while concern over customer demand increased. The survey also learned that U.K. household finances deteriorated for a third consecutive month in November making it less likely that consumers will help drive the economic recovery in the months ahead.


Banks Drag FTSE Lower
Britain's top share index was lower by midday on Monday, as concerns over euro zone debt weighed.

Forte Energy Shares +9% On Potential Rare Earth Find
Forte Energy NL's (FTE.AU) shares rose sharply Monday after the exploration and development company said there could be a "substantial body" of rare earth elements at its Firawa uranium project in Guinea.

Anglo American Begins Sale Of Callide Thermal Coal Mine
Globally diversified miner Anglo American PLC (AAL.LN) Monday said it plans to begin the process of selling its Callide thermal coal mine in Central Queensland, Australia.

Mitie Gives Positive Outlook as Outsourcing Growth Continues
U.K.-based facilities management and property services company Mitie Group PLC (MTO.LN) will continue its strategy of growing organically supplemented by some acquisitions as it looks to take advantage of continued outsourcing by customers in both the public and private sectors, its chief executive officer said Monday.

Jubilant Energy To Raise $85 Million In AIM Float
Jubilant Energy NV said Monday it plans to raise $85 million in an initial public offering on London's junior Alternative Investment Market to develop its oil and gas assets in India, and accelerate its exploration program.

Big Yellow Moves To 1H Pretax Profit On Higher Occupancy
U.K. self-storage provider Big Yellow Group PLC (BYG.LN) Monday posted a swing to first-half pretax profit on revenue that climbed 8% as the firm boosted occupancy rates at its stores.

Sheba Exploration Undertakes Further Placing To Raise GBP10,000
Sheba Exploration PLC (SHE.PM) said Monday it is raising an extra GBP10,000 through a private placing of 1 million ordinary shares at 1 pence per share, which it will use for general administrative expenses and the ongoing development of exploration licenses in Ethiopia.

African Eagle Resources Sells Uranium Assets For A$1M
African Eagle Resources PLC (AFE.LN) has sold its uranium division to Jacana Resources Ltd. for A$1 million in shares and cash, as the exploration and development company looks to focus on its flagship Dutwa nickel deposit in Tanzania.

Gold Fields: Strike At South Deep Mine Resolved 
Gold Fields Ltd. (GFI), a South African gold miner, Monday announced that the strike by the National Union of Mineworkers at its South Deep mine in South Africa is over and that production resumed last night.


GERMANY:
Germany's DAX: -0.5%

Friday: The German DAX 30 index lost 0.5% to 6,848.98, with shares of BMW AG down 1.1% and Deutsche Bank AG off 1.7%.

German Finance Minister Wolfgang Schaeuble says he is opposed to increasing the size of the European Union's crisis bailout fund, calling speculation of such a move "completely over the top."

FRIDAY: German Inflation Gains More Than Economists Forecast on Food, Energy Costs
Inflation in Germany, Europe's largest economy, accelerated more than economists forecast in November.

GERMAN CPI RISES 0.1% ON MONTH, 1.5% ON YEAR
Consumer prices in Germany, Europe's largest economy, rise faster than expected in November, reflecting price pressures in seasonal foods and the energy sector, data from the Federal Statistics Office show.

DEUTSCHE BANK HOLDS MAJORITY STAKE IN POSTBANK
Deutsche Bank says it now holds the majority of voting rights in Deutsche Postbank after obtaining at least 21.48% from a voluntary public takeover offer to free-float shareholders.




Thursday, Germany’s DAX 30(DX:DAX 6,880, +55.86, +0.82%) rose 0.8% to 6,879.66 as car makers BMW (DE:BMW 59.77, +0.77, +1.31%)  and Volkswagen (DE:VOW3 126.90, +1.95, +1.56%) both rose around 1%. 

Wednesday, Shares in German software maker SAP (SAPG.DE) opened lower on Wednesday after a US district court jury ruled that it has to pay peer Oracle (ORCL.O) $1.3 billion for software theft. By 0806 GMT, SAP shares were down 1.1 percent at 35.79 euros on the Tuesday ruling which could be the largest-ever fine for copyright infringement.


GERMAN BUSINESS INDICATOR RAISED
German Business Confidence Jumps

On Wednesday, the IFO economic research institute at the University of Munich said its surveys showed confidence among German business in November at the highest level since reunification in 1990. Domestic and exports business sales and production indicate a growing economic signal that provides a solid business confidence among business operations.  Germanies employment numbers also show that its economy is growing.

The German economy had slowed in the third quarter, expanding by 0.7 percent from the second quarter’s 2.3 percent rate, but the data also showed signs that the expansion had moved beyond the narrow manufacturing sector.

GfK, a market research firm, said its German consumer sentiment indicator for December showed a sixth-consecutive gain, increasing to 5.5 for December from 5.1 in November, which itself was revised upward.

The headline business climate indicator rose to 109.3 from 107.6, much better than market expectations of a flat or slightly lower reading.

GERMAN AUTO MAKERS SALES GROW
Porsche, the sports car maker, reported Wednesday that its sales rose 86.4 percent in its first quarter from a year earlier, when sales were depressed by the financial crisis. It posted revenue of €2.1 billion, or $2.8 billion, up 80 percent.

BMW and Daimler said this week that they will reduce the Christmas breaks at their factories to meet global demand for luxury autos.


Tuesday, German Chancellor Angela Merkel spoke on the grave situation facing the single currency due to the debt crisis in Ireland.

"We're in an extraordinarily serious situation, as far as the situation of the euro is concerned," Merkel said at a conference in Berlin Tuesday.


FRANCE:
Friday: French CAC 40 index fell 0.8% to 3,728.65

BNP Paribas SA off 2.2% and Societe Generale SA down 1%.
..  
Thursday, the French CAC 40 index (FR:PX1 3,760, +12.81, +0.34%) gained 0.3% to 3,760.42.

French consumer confidence was the latest sentiment indicator to beat forecasts in Europe on Thursday .

SPAIN:
Friday: Prime Minister Jose Luis Rodriguez Zapatero says there is "absolutely" no chance it will seek a bailout. The euro zone's sovereign debt crisis escalates as the market homes in on Spain as another potential weak spot, leaving officials scrambling to quell investors' fear.

  

Wednesday, FinMin Salgado says there is no risk of Spain needing a bailout, the budget correction is producing results which will calm the market.

IRELAND:

Dublin Stocks: ISEQ Ends +0.5% At 2,667; AIB +14%
Ireland's ISEQ stock index reversed earlier losses to gain 0.4%.

Dublin Stocks Wednesday: ISEQ Ending +0.7% At 2,682


Among Irish stocks in the red Thursday, shares in airline Ryanair Holdings (IE:RY4B 3.89, -0.07, -1.69%)  dropped 0.7%.



Bank Of Ireland -10% 
Bank of Ireland fell 10% percent in trading Wednesday as investors and depositors moved away from the troubled bank.


IRELAND'S BANK BAILOUT MAY NOT BE ENOUGH
Irish PM says bailout could total $115 billion

The Irish bailout could total euro85 billion ($115 billion), Prime Minister Brian Cowen announced Wednesday, but some analysts said the figure is too small to save Ireland from eventual default.


Tuesday, Ireland's coalition government was resisting calls for the prime minister to resign and calling on lawmakers to pass a 2011 budget.

Ireland's coalition government began to unravel in the wake of an unpopular international bailout and Prime Minister Brian Cowen pledged to call an election next year if a crucial budget package is approved.

The Republic of Ireland has called for a package of aid from the international community to help keep its economy and banking sector afloat. Shares in most Irish banks tumbled Monday after Ireland ministers said the banks will need more capital and must shrink their operations as part of the country's massive bailout package agreed late Sunday.


GREECE:

Greek Newspaper Ends Print Edition
Greek daily newspaper To Vima, hit by the country's economic crisis and plunging advertising revenue, Friday announced that it would cease its print edition in favor of online publication.

The move along with the demise of the Apogevmatini newspaper and reductions in salaries at the Skai radio and television stations prompted the powerful Union of Editors to call a strike for next week.

The strike from midnight Tuesday could disrupt daily newspapers and national television bulletins.

To Vima, part of the Lambrakis group, said Friday its print edition would be replaced from January by a "new electronic newspaper", a modernized version of the current free website. The newspaper's management took the decision after a drop in readership--8,000 for the print edition Thursday compared to 82,000 for its online edition--and a loss of advertising revenue.Staff were also told that the Lambrakis group was suffering losses of up to EUR20 million a year, and was under pressure from the banks, staff representative Tassos Anastassiadis told AFP. The newspaper and its weekly Sunday edition of the same name employs around 200 staff including 150 journalists, he added.

The Apogevmatini went bust earlier this month after 58 years of existence, leaving some 130 employees unpaid and out of a job. The Alafouzos group, which owns Skai and the liberal daily Kathimerini, announced pay cuts of some 10% for its broadcasting staff.

____________________________________________________________
Asian Pacific Markets:

Thursday, Asian Markets Ended Higher

Wednesday, Asian markets rebounded. MSCI's broadest index of Asia Pacific shares outside Japan was flat, with gains in Hong Kong , Shanghai and Singapore offsetting falls in Australia and South Korea.

Monday, Asian markets start the week off below Friday's Close the Hang Seng Index is down -31.68 (-0.13%) to  23,605.71, the Japanese Nikkei 225 10,105.12 +82.73 (0.83%)..

The broader Topix index gained 0.6 percent to 874.80, a level not seen since June 24. About five stocks increased for each one that decreased. All but two of the 33 industry groups in the Topix advanced.

CHINA:

CHINA PROTESTS U.S. EXERCISE 
WITH SOUTH KOREA
Beijing's first official protest over plans for joint military exercises involving an aircraft carrier in the Yellow Sea on Sunday was noticeably more restrained than after a similar announcement in July.


China Minister: "Worried" By Developments After N, S Korea Incident

Chinese Foreign Minister Yang Jiechi on Friday talked with officials from the U.S., North Korea and South Korea and said he was "worried" by developments after North and South Korea exchanged artillery fire this week, according to a statement from China's foreign ministry.

North and South Korea should stay calm and negotiate to resolve their issues and improve relations, and it is most important to "control the situation" and prevent the occurence of similar incidents, the statement cited Yang as saying.

Yang met with the North Korean ambassador to China and spoke by phone with South Korean Foreign Minister Kim Sung-hwan and U.S. Secretary of State Hillary Clinton to exchange views on the situation on the Korean peninsula, the ministry said.

Thursday, Shanghai  2,898.26  +38.32 (1.34%), Hong Kong's Hang Seng index added 0.1 percent to 23,054.68.Shenzhen Composite Index 1,337.83,   

Chinese shares closed higher on Thursday, tracking overseas gains, buoyed by property and oil refiners. The benchmark Shanghai Composite Index gained 1.3 percent to 2,898.26 while the Shenzhen Composite Index for China's smaller, second exchange edged 0.3 percent higher to 1,337.83.


Wednesday, Shanghai    2,888.57  +23.11 (0.81%)


Chinese Vice President Xi Jinping concluded a two-day visit to Botswana on Monday, heading back home after a week spent promoting Chinese economic interests in southern Africa.

The two countries on Sunday signed accords on infrastructure and energy development, which included a grant from China of around six million dollars (4.4 million euros), according to Gou Haodong, a Chinese embassy official.

Xi, the heir-apparent to President Hu Jintao, on Monday toured the Diamond Trading Company, a joint venture between Botswana and De Beers that is the largest diamond sorting and valuing operation in the world.

The Chinese vice president spent Friday in Angola signing a series of new energy pacts with the oil-rich nation, China's leading trading partner on the continent.

The visits are part of an African tour that began last week in South Africa, where Xi signed a series of trade and energy deals.

Beijing claims its bilateral trade with Africa will top 100 billion dollars in 2010, as Chinese firms continue pouring investment into the continent's oil, mining, agriculture and manufacturing sectors. China has assembled an extensive investment portfolio in southern Africa, particularly in Angola, Zambia and Zimbabwe.

China ordered banks to set aside larger reserves for the fifth time this year, draining cash from the financial system to limit inflation and asset-bubble risks in the world’s fastest-growing major economy. The ratio will increase 50 basis points starting Nov. 29.

China Investment Corp. said it owns the equivalent of 74 million shares of Chicago-based General Growth Properties Inc., the second-largest U.S. mall owner.

The sovereign wealth fund holds 59.3 million common shares through a company called Brookfield Retail Holdings III LLC, according to a Form 4 filed with the U.S. Securities and Exchange Commission. China Investment, based in Beijing, also owns warrants on 14.7 million General Growth shares, according to a separate filing.

Funtalk (FTLK 6.73, +0.02, +0.30%) today announced that the Company will report its financial results for the second quarter of fiscal 2011 before the market opens on Tuesday, November 30, 2010.

Management will host a conference call at 8:00 am ET on Tuesday, November 30, 2010. Funtalk is a leading retailer and wholesale distributor of mobile communications devices, accessories and content in China. 

Bank of Communications Co. (601328 CH) closed unchanged at 5.78 yuan per share. Agricultural Bank of China Ltd. (601288 CH) gained 0.4 percent to 2.68 yuan apiece.

Changsha Zoomlion Heavy Industry Science and Technology Development Co. (000157 CH): The company has got approval from the China Securities Regulatory Commission to list its stock in Hong Kong. The company rose 5 percent to 13.23 yuan per share.

Chigo Holding Ltd. (449 HK): The air conditioner maker said it will raise a net HK$4.6 million in a placing of 100 million unlisted warrants at 5 cents, and then as much as a further HK$495 million on their conversion into shares. The stock gained 3.2 percent to HK$4.86.

China To Lift Rare Earth Export Ban To Japan

China has allowed domestic companies to take customs clearance measures to export rare earth minerals to Japan, paving the way for the lifting of an embargo that has been in place over the last two months, Japanese trading house officials said Monday, the Kyodo news service reported.

The move signals a policy shift in China's relations with Japan following a meeting between Chinese President Hu Jintao and Japanese Prime Minister Naoto Kan earlier this month in Yokohama, the first official talks between them since bilateral ties soured in the wake of maritime collisions near the disputed Senkaku Islands in September, Kyodo reported.

Chinese companies that have received customs clearance approval will soon resume shipment to Japan of rare earth minerals, elements vital to manufacturing hybrid vehicles, mobile phones and other high-tech products, the officials said.

Japan relies on China for about 90% of its supply of rare earths. Trade sources said Chinese authorities issued such approval around Friday.

At the Nov. 13 summit, Hu and Kan agreed to develop long-term and stable strategic relations of mutual benefits, which they saw as vital for peace and development of the region and the world, Kyodo reported.
 

JAPAN:

Thursday, Japan's Nikkei 225 stock average rose 0.5 percent to 10,079.76

Japanese Stocks Rise
Nikkei 225  10,105.12 +82.73 (0.83%)

Japanese Oct CPI up 0.4%
Japanese consumer prices rose 0.4% month-on-month in October, according to data out Friday. On an annual basis, prices were up 0.2%. The core consumer price index declined 0.6% on an annual basis, in line with economist forecasts.

Wednesday, Japanese stocks rose for a fourth day as the euro strengthened against the yen. The yen depreciated to 114.79 against the euro.  The Nikkei 225 Stock Average rose 0.9 percent to 10,107.73 as of 9:34 a.m. in Tokyo, set for the highest close since June 22. 

Hong Kong intensified a yearlong battle to curb surging home prices with additional taxes and higher down payments a day after the International Monetary Fund warned that asset inflation may derail the city’s economy. 

Homes sold within six months of purchase will incur a 15 percent stamp duty from Nov. 20, Financial Secretary John Tsang said in a briefing. Down payments for homes costing HK$12 million ($1.5 million) or more will rise to 50 percent, from 40 percent. A stock gauge of developers in Hong Kong fell for the eighth day in nine ahead of the announcements.

Fanuc Ltd., Japan’s leading industrial robot maker which gets more than 15 percent of its revenue in Europe, jumped 1.3 percent.

Canon Inc., a camera maker that derives about 80 percent of its revenue abroad, climbed 0.8 percent.

Central Japan Railway Co., Japan’s biggest high-speed train operator, advanced 1.7 percent after the Nikkei newspaper said the company will lead a bid for a railway project in Florida.

AUSTRALIA:

AUSTRALIAN BANK SCRAMBLES
TO RE-OPEN ACCOUNTS
The National Australia Bank, one of Australia's largest banks, is scrambling to process payments to millions of customers, who potentially face days of uncertainty about when they will be able to access their money.

The Herald has been inundated by anxious NAB customers, some of whom had checked online to find their past month's transactions rubbed out and their accounts credited with nothing.

Property deals were being put on hold, car sales suspended, wages not transferred, and direct debit payments for mortgages and bills stopped.

A corrupted file in the National Australia Bank's computers on Wednesday jammed its payment system, hitting customers from a range of banks who rely on the NAB to process payments.

The bank, which last night was considering opening extra branches during the weekend, could not say when the problem would be fixed.


Thursday, Australia's S&P/ASX was up 0.2 percent at 4,593.4.

Australia's central bank chief signaled on Friday that interest rates could remain steady for the next few months. Banks were higher amid testimony from Reserve Bank of Australia governor Glenn Stevens in which he termed recent rate hikes from lenders "prudent." Australia & New Zealand Banking Group Ltd. (AU:ANZ 22.63, +0.16, +0.71%)(ANEWF 22.20, -0.25, -1.11%) shares were up 0.7% and National Australia Bank Ltd.(AU:NAB 23.42, +0.12, +0.52%)(NAUBF 23.95, 0.00, 0.00%) shares were up 0.4%

Australian shares moved higher in early trading, with miners leading the gains. The S&P/ASX 200 index rose 0.3% to 4,609.30 with Rio Tinto Ltd. (AU:RIO 84.30, +1.25, +1.51%) (RIO 66.45, 0.00, 0.00%) up 1.7% and BHP Billiton Ltd.(AU:BHP 43.39, +0.30, +0.70%) (BHP 85.10, 0.00, 0.00%) shares up 1%. Away

Telecom Telstra (AU:TLS 2.86, -0.02, -0.69%) (TTRAF 2.75, +0.07, +2.61%) gained 1%. Banks were higher amid testimony from Reserve Bank of Australia governor Glenn Stevens in which he termed recent rate hikes from lenders "prudent." Australia & New Zealand Banking Group Ltd. (AU:ANZ 22.63, +0.16, +0.71%)(ANEWF 22.20, -0.25, -1.11%) shares were up 0.7% and National Australia Bank Ltd.(AU:NAB 23.42, +0.12, +0.52%)(NAUBF 23.95, 0.00, 0.00%) shares were up 0.4%

Australia's government said Tuesday it will examine foreign ownership of the country's rural land and agricultural food production in response to a spate of takeovers that have triggered anxiety about job losses and broader concerns about food security.

Australia also vowed to clear the way for the long-term supply of rare-earth metals to Japan amid supply worries surrounding China.

Qantas Seeks Rolls-Royce Compensation For A380
Qantas Airways Ltd. (QAN.AU) said Tuesday it will seek compensation from engine maker Rolls-Royce Group PLC (RR.LN) as it resumes flights of its A380 jetliner after a turbine blowout earlier this month grounded its fleet.


QR National Ltd. (QRN.AU) listed on the Australian Stock Exchange at A$2.54 a share Monday in a closely watched debut. The deal, which raised A$4.05 billion, was priced at A$2.55 at the low end of the A$2.50 to A$3.00 price range.

The Queensland government sold a 60% stake in the railroad as part of a larger asset sale program to raise money and improve the state's credit rating. The government was hoping to sell as much as 75% of the railroad on the public market but it didn't find sufficient demand for that large of a placement.


International investors took up a large part of the QR National IPO. Nearly two-thirds of the total share sale went to institutions, with domestic institutions representing just about half of the institutional register.


KOREA:
Friday reports of artillery fire near the South Korean island of Yeonpyeong served to rattle markets early on, and North Korea's official news agency reportedly said further escalation will lead to open war.

Thursday, South Korea's Kospi index gained 0.1 percent to 1,927.68  
Wednesday, North Korea's Seoul's benchmark index (KSE) finished down only 0.2 percent, off earlier lows, with foreign investors net buyers of stocks.

NORTH KOREA SHELLS SOUTH KOREAN ISLAND

Tuesday, North Korea fires artillery rockets at a South Korean island near a disputed western maritime border in a clash that kills two South Korean marines and sets numerous buildings on fire, sending the island's 1,200 residents scrambling for bomb shelters.

No UN Security Council Meeting Tues On N Korea

No UN Security Council meeting will be held Tuesday on North Korea's deadly artillery strike on a South Korean border island, the U.K. president of the council said.


____________________________________________________________
WORLD FOREX CURRENCIES SNAPSHOT:
(FRIDAY, NOV 26, 2010 11:45 AM EST)

EEUR/USD     1.3215     -0.0140 (-1.05%)
USD/JPY     84.0400 +0.4300 (0.51%)
GBP/USD     1.5611     -0.0153 (-0.97%)
CAD/USD     0.9809     -0.0098 (-0.99%)
USD/HKD     7.7629     +0.0037 (0.05%)
USD/CNY     6.6675     +0.0180 (0.27%)
AUD/USD     0.9636     -0.0173 (-1.76%)



WORLD MARKETS SNAPSHOT:
(FRIDAY, NOV 26, 2010 11:45 AM EST)

Shanghai     2,871.70     -26.56 (-0.92%)
Nikkei 225     10,039.56     -40.20 (-0.40%)
Hang Seng Index     22,877.25     -177.43 (-0.77%)
TSEC     8,312.15     -37.84 (-0.45%)
FTSE 100     5,673.90     -25.03 (-0.44%)
DJ EURO STOXX 50     2,736.53     -28.52 (-1.03%)
CAC 40     3,726.61     -33.81 (-0.90%)
S&P TSX     12,907.65     -38.16 (-0.29%)
S&P/ASX 200     4,598.30     +4.90 (0.11%)
BSE Sensex     19,136.61     -181.55 (-0.94%)


____________________________________________________________
WEDNESDAY'S U.S. ECONOMIC CALENDAR:



HOLIDAY:
U.S. Markets will close Thursday for the Thanksgiving holiday.

____________________________________________________________
US STOCK MARKET SUMMARY, WED., NOV. 24, 2010:

Stocks:
Wednesday, U.S. stocks surged in light volume and choppy trading, reversing the previous day's sharp declines as strong economic data pushed investors into retail stocks. Wednesday's gains were led by a surge in consumer discretionary and technology stocks, after glimmers of hope in consumer-spending and jobless data.


Treasurys:
Wednesday, Treasury notes declined after improved U.S. and German economic data. The reports shored up some confidence that the global economy may withstand the stress from fiscal woes in several euro-zone nations and tensions in Korea. "The data provided a ray of hope for those who are bullish on the economy and the flight-to-quality flows reversed," said David Coard, head of fixed-income trading at Williams Capital Group.  

Forex:
Wednesday, The U.S. dollar and Japanese yen, considered safe harbors in stormy times, remained strong Wednesday.The euro was down modestly versus the dollar, bouncing off fresh two-month lows against both the greenback and yen in thin trading. Deep concerns about highly indebted euro-zone nations continued to weigh on the single currency. The euro had dropped to levels not seen since late September when Standard & Poor's cut its long-term and short-term sovereign ratings for Ireland, but retook most of those losses. 


gained strongly, with the ICE Dollar Index, soaring nearly 1.2% to a two-month high. The euro plummeted against its major rivals as festering issues of euro-zone sovereign debt. 





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