Stock Market Update - Dec, 6-10, 2010 Cautious Choppy Trend

Stock Market Update

Friday, December 10, 2010

Latest US Economic News Headlines:

USA EQUITY INDEXES: (DEC. 10;  4:05 PM EST)

==(FRIDAY'S CLOSING INDEX NUMBERS)==

Dow Jones 11,410.32 +40.26 (+0.35%)
S&P 500    1,240.40 +7.40  (+0.60%)
Nasdaq     2,637.54 +20.87 (+0.80%)

Dow Jones Closing Averages 12/10/2010: DJIA 11,410.32 UP 40.26
  30 INDUS     11,410.32 UP   40.26 OR    0.35%
  20 TRANSP     5,099.38 UP   15.71 OR    0.31%
  15 UTILS        397.39 UP    1.94 OR    0.49%
  65 STOCKS     3,988.22 UP   14.43 OR    0.36%

US COMMODITY PRICES: (DEC. 10, 4:05 PM EST)
Crude Oil     87.81     + 0.02%
Natural Gas     4.43     + 0.23%
Gasoline     2.31     -
Heating Oil     2.46     -
Gold     1386.61     - 0.05%
Silver     28.63     - 0.45%
Copper     4.11     + 0.76%


US DOLLAR FUTURES INDEX DXY: DEC. 10: 4:05 PM EST: 80.06  Down 0.01 (0.01%)

U.S. Dollar Paused,  Stocks Rise Mixed, Commodities Mixed to Lower

 U.S. stocks edged up at the close as the dollar relaxed its gains, and as a surge in U.S. October exports and brightening consumer sentiment encouraged investors.  At the market close Friday the Dow added 40 points today to 11410, the S&P gained 6.85 points to 1239.85, and the Nasdaq rallied 20 points to 2637.

In afternoon trading. General Electric led with a 3.2% gain after the conglomerate raised its quarterly dividend 17%, its second increase this year.

Procter & Gamble rose 0.9% after Goldman Sachs upgraded its investment rating on the stock to buy from neutral. The firm said Wall Street is underestimating the consumer-products giant's growth in emerging markets, adding that "the opportunity is enormous."

The Nasdaq Composite added 0.67% to 2634. The Standard & Poor's 500-stock index edged up 0.46% to 1238. The S&P 500 is up 1.1% for the week, while the Dow is up just 0.1% for the period.

On Saturday, China's statistics agency is due to publish data that economists expect will show accelerating consumer price inflation, reinforcing the case for tighter policy. China also remains under pressure from other nations to allow its currency to appreciate more quickly.

The dollar fluctuated between small gains and losses, with the U.S. Dollar Index, tracking the U.S. currency against a basket of six others, being flat recently. Crude-oil futures fell, as did gold futures.

U.S. BANK FAILURES:

The FDIC Closed Banks Friday After Hours
The U.S. Government FDIC regulators closed several US Banks late Friday and seized all assets.The Federal Deposit Insurance Corp announced it closed additional banks. Friday's announcement brings the total failures for 2010 to 146. 

Earthstar Bank, Southampton, PA., December 10, 2010
Paramount Bank, Farmington Hills, MI., December 10, 2010

To see the complete list of failed banks and credit unions visit:

Online Consultancy Network™ Bank Failure List
http://ocnww.blogspot.com/2010/09/bank-failure-list-update-september-1.html


In Friday Morning Trades...
U.S. stocks rose Friday morning following an unexpected narrowing in the U.S. trade deficit for October on surging exports, but the gains were slim as China unveiled plans for more tightening.

The Dow Jones Industrial Average climbed 10 points, or 0.1%, to 11380. Procter & Gamble led the measure's gain with a 1.1% increase while United Technologies was also strong, up 0.7%. Keeping the gains in check, Bank of America fell 0.7% and Pfizer slipped 0.6%.

The Nasdaq Composite added 0.1% to 2619. The Standard & Poor's 500 index advanced 0.2% to 1235, with all its sectors in the black. Industrials were in the lead.

The gains came as the U.S. trade deficit for October unexpectedly narrowed as exports surged to their highest levels in more than two years and the trade gap with China fell. The total U.S. deficit in international trade of goods and services fell more than 13% to $38.71 billion from a revised $44.60 billion the month before, the Commerce Department said. Economists had predicted a $44.0 billion trade gap.

The U.S. trade deficit with China narrowed 8.3% to $25.52 billion as exports to the country surged nearly 30% to a record $9.30 billion and imports fell slightly to $34.82 billion.

U.S. import prices rose 1.3% in November, easing deflation concerns and suggesting a little inflationary pressure within an economy struggling to recover from a deep recession. Economists were expecting an 0.8% increase.

Trade data from China also topped expectations, with exports and imports both soaring to records in November, while the country's trade surplus narrowed to $22.9 billion from October's $27.15 billion. The surplus was greater than economists' $22.3 billion median forecast.

China's central bank said it will raise banks' reserve requirement ratio by 0.50 percentage points, the sixth such hike this year and third in a month. The move will reduce the amount of money China's banks have available to lend.

The euro fell to $1.3217 as the IMF said it will postpone the board vote on the Irish bailout. The dollar edged higher, with the U.S. Dollar Index, tracking the U.S. currency against a basket of six others, off 0.1%. Crude-oil futures rose while gold futures slipped.



U.S. DEFICIT $150.4 BILLION
The U.S. budget deficit in fiscal 2010, at $1.294 trillion, was the second-highest ever, behind the record 2009 deficit of $1.416 trillion.  

The U.S. government ran its 26th straight monthly budget deficit in November. The Treasury Department, in its regular budget monthly statement, said the government spent $150.4 billion more than it collected in the second month of fiscal 2011.

The Treasury report, detailing the government's spending programs, prompted an economic research firm, Macroeconomic Advisers, to lift its forecast for economic growth from October through December by four-tenths of a percentage point, to 2.7%.

Last month's red ink pushes up the deficit to $290.8 billion for the fiscal year, which began Oct. 1. That figure is a little smaller than the deficit during the same period last year. But President Barack Obama's administration expects the deficit to top $1 trillion in this fiscal year.

Washington has spent in excess of $1 trillion during each of the last two fiscal years. The deep recession not only reduced tax revenues but also raised expenses, including the cost of compensating workers left unemployed. 

The budget statement Friday said federal spending totaled $585.7 billion so far this fiscal year, with revenues at $294.9 billion. In the last two months, the federal government spent $128.3 billion on defense, $36.8 billion in interest payments on its debt, and $20.0 billion for unemployment benefits.


The U.S. Commerce Department Friday's report showed that the real, or inflation-adjusted, deficit, which economists use to measure the impact of trade on GDP, decreased to $45.17 billion in October from $50.34 billion the month before.

The total U.S. deficit in international trade of goods and services shriveled more than 13% to $38.71 billion from an upwardly revised $44.60 billion the month before, the Commerce Department said Friday. The September trade gap was originally reported as $44.00 billion.

U.S. exports rose 3.2% to $158.72 billion, their highest level since August 2008, after the previous month's $153.78 billion. Exports of services hit a record $46.42 billion.  Imports fell marginally to $197.44 billion from $198.37 billion in September.

The trade coincided with another strong gain in import prices, which rose 1.3% on the month, primarily driven by petroleum prices.

The U.S. bill for crude oil imports in October fell to $18.88 billion from $20.96 billion the month before. The price of oil increased $1.82 to $74.18 a barrel, though U.S. consumption declined to 254.48 million barrels from 289.69 million.

The U.S. paid $24.99 billion for all types of energy-related imports, down from $26.62 billion in September.

Crude oil sales pulled down the purchases of industrial supplies, while capital goods such as computers contracted $904 million. Imports of consumer goods including clothes, however, grew by $1.26 billion.

U.S. exports surged across the board, including record sales of foods, feeds and beverages, which rose $735 million to $9.91 billion. Exports of industrial supplies increased $2.60 billion, driven by chemicals and plastics, besides refined petroleum products. Capital goods grew $374 million, while auto and parts posted a $430 million gain.

Although the U.S. trade gap with China shrank, the deficit with several other major trading partners expanded.

The deficit with the euro-area grew 24.8% to $5.96 billion, while the gap with Japan rose to $5.67 billion from $5.04 billion and the deficit with Canada grew slightly to $1.09 billion. Trade with Mexico saw both record high exports and imports, putting the deficit down to $5.75 billion from $5.77 billion.

The Commerce Department report on trade can be found at: http://www.census.gov/ft900.

REUTERS/UNIVERSITY MICHIGAN SENTIMENT RISES
A segment of U.S. consumers are feeling more upbeat about the economic outlook, as evidenced by a Reuters/University of Michigan consumer sentiment index showing a 74.2 reading for December from 71.6 at the end of November.

BEFORE THE BELL:
Stocks Poised to Edge Higher

Stock index futures rose on Friday following encouraging data out of China. Stock futures hinted at slight gains when Wall Street kicks off Friday's session as the bulls attempt to nudge the Dow to fresh 2010 highs.

The U.S. Trade deficit declined to $13.8 billion dollars and the U.S. Import prices increased 1.3% in November.

China increased the reserve requirement for banks but kept interest rates on hold.The move was a milder form of monetary tightening after expectations that China could raise rates to rein in its red-hot economy,

China's central bank, on Friday, increased the amount of money that lenders must keep on reserve for the third time in one month, a move to mop up excess cash in the economy and rein in inflation.

The Dow Jones Industrials ended another low volume session Thursday slipping 2.42 points or 0.02% to 11370.06 but the Nasdaq Composite gained 7.51 points or 0.29% to 2626.67. The broader S&P 500 advanced 4.72 points or 0.38% to 1233.00.

The latest round of economic data left investors with a mixed picture of the economy. Initial unemployment claims fell more than expected last week, but the previous week's figures were revised slightly upward. Inventories of U.S. wholesalers rose more than expected in October, while fast-growing sales also signaled some underlying support for the economy, but the pace of the rise in inventories still exceeded the gains in sales.

Investors also kept a close eye on the bond market following slumping demand there in recent days that prompted sharp gains in bond yields. 


At mid-day the dollar regained its upward line causing equity and commodities to relax their gains on the days trading.

Traders also remain wary of the prospect of an interest rate hike in China this weekend. Any sign of an economic slowdown in China.

At the market open, the dollar declined in early morning trades, U.S. stocks edged higher. Thursday, financials lead the modest gains following an upgrade to a group of asset managers and an encouraging weekly jobs report.

The Dow Jones Industrial Average rose 13 points, or 0.1%, to 11387.  The Nasdaq Composite gained 0.4% to 2619. The Standard & Poor's rose 0.3% to 1232, with all but one of its sectors in the black.

The dollar strengthened against the euro on reports that the bailout of Ireland could face obstacles from the country's opposition party. The ICE Dollar Index, which tracks the greenback against a basket of trade-weighted currencies, rose to 80.365 from 79.997.

BEFORE THE BELL


U.S. Jobless Claims Declined Last Week 
421,000 More American's Lost Their Jobs Last Week
Almost 6 million Americans looked for work but weren't able to find employment at all last year, a new report shows.

The number of U.S. workers filing new claims for jobless benefits fell last week by more than economists expected. Initial unemployment claims fell by 17,000 to 421,000 in the week ended Dec. 4, the Labor Department said Thursday in its weekly report. The previous week's figures were revised slightly upward to 438,000 from 436,000.

Futures point to a higher open Thursday morning. U.S. futures for the S&P 500 up 0.3 percent, the Dow Jones futures up 0.3 percent and Nasdaq 100 futures up 0.2 percent as the dollar declines.

In currencies, the dollar slipped to 83.80 yen from 84.01. The euro rose to $1.3293 from $1.3261. The US dollar’s fundamental outlook is generally bearish. The US Dollar Index is testing support level at 79 after breaking its rising trendline. Failure would warn of a decline to test primary support at 75.50.

$EURUSD: Looks to have regained its footing back above 1.3200 after its brief dip lower after the Ireland downgrade by Fitch. The U.S. Economic forecast is anemic, the Fed isn’t expected to lift rates until at least late-2011 and the bill for today’s stimulus promises to extend the financial pain for some time.
  
At 8:30AM EST look for the Government's Weekly Unemployment Insurance Claims Report and Initial Claims Weekly Jobless Claims

World stock markets mostly advanced Thursday after Japan's third quarter GDP was revised higher and the extension of U.S. tax cuts boosted expectations of stronger economic growth in the short-term.

Wednesday: U.S. equity index's closed up, but only showing minor gains in a low volume, choppy trading pattern Wednesday.  The Dow added 13 points today to 11372.48, the S&P rose 4 points to 1228.28, while the Nasdaq gained 10 points to close at 2609.16. 

U.S. stocks slipped as the rising dollar pushed down commodity prices, weighing on the broader stock market. U.S. stocks moved in and out of negative territory as rising financial stocks outweighed declines in the materials sector in another day of choppy trading.

The Dow Jones Industrial Average crept up less than one point to 11360 in mid-day trading, while the Standard & Poor's 500-stock index edged up two points to 1226 and the Nasdaq Composite added eight points to 2607.

The dollar's gain sent commodity prices lower, hitting the stocks of materials, energy and industrial companies. 

The Dow Jones Industrial Average fell 24 points to 11336 in mid-morning trading, while the Standard & Poor's 500-stock index was off three points to 1221 and the Nasdaq Composite dropped two points to 2596.

The dollar's gain sent commodity prices lower, hitting the stocks of materials, energy and industrial companies.The dollar continued to strengthen against other major currencies. The euro fell to $1.3215 while the greenback rose 0.9% against the yen to trade at 84.16 yen to the dollar.   DuPont fell 1.2%, while Caterpillar shed 0.8%. 

Consumer discretionary stocks were also under pressure, weighed by a 2.1% decline at McDonald's. The fast-food chain led declines among Dow components after reporting same-store sales rose 4.8% in November, driven by its McRib sandwich, but fell short of analysts' estimates.

Pulling on the other side were financial stocks, fueled by gains at smaller regional banks. Lincoln National rose 4.7%, Regions Financial gained 1.2% and Zions Bancorp added 1.9%. Morgan Stanley also gained 1.9% after the consortium of investors buying the investment bank's 34.3% stake in China International Capital all won their necessary approvals.

SEC DELAYS DECISION ON PLAN TO LIST PENNY STOCKS
US agency begins proceedings to determine whether to disapprove Nasdaq OMX's application for a new-listing market focused on penny stocks, a decision that will at best delay Nasdaq's plans for the listings business.



FITCH SAYS CREDIT-CARD CHARGE-OFFS DOWN
Charge-offs among prime-rated U.S. credit-card borrowers are down slightly from a month earlier in October but remain in "stubbornly high territory" as delinquencies continue to ease, according to data from Fitch Ratings.

58 MILLION AMERICAN'S BLOCKED

FROM COST-OF-LIVING  ADJUSTMENT
House Defeats $250 Payment To Seniors and Veterans

House lawmakers defeated a Democratic attempt to provide a one-off $250 payment to seniors, veterans and disabled people, after Republicans united to block the legislation.

The bill would have provided the payment to account for a cost of living increase for 2010. Lawmakers brought the bill forward after the Social Security Administration determined there would be no automatic cost-of-living adjustment because the inflation measure it uses recorded no increase in 2010.

The White House strongly urged its passage, saying it would provide much-needed financial assistance to 58 million people.

BEFORE THE BELL:

U.S. stocks edged up Wednesday morning as the dollar reled its gain and the tech sector begain to lead the market upward. The dollar extended its gains against other major currencies. The euro was flat while the greenback rose 0.7% against the yen to trade at 84.03 yen to the dollar.

The Dow Jones Industrial Average gained 26 points at 11385 in early trading, while the Standard & Poor's 500-stock index added five points to 1229 and the Nasdaq Composite gained 13 points to 2611.

Tech stocks led the gainers, while advancers among the smaller regional banks lifted the financial sector. Lincoln National Corp. rose 4.7%, Regions Financial gained 2.8% and Zions Bancorp added 1.5%.

Offsetting the advancers were consumer discretionary stocks, which were weighed by a 1.9% decline at McDonald's. The fast-food chain led declines among Dow components after reporting same-store sales rose 4.8% in November, driven by its McRib sandwich but lower than analysts' estimates.

Commodity prices weakened as the dollar rose, with gold futures dropping more than 1% to back below the $1,400 mark. Treasury yields also continued to rise following the U.S. deal to extend tax cuts, pushing the yield on the benchmark 10-year note to 3.223%. A $21 billion auction of 10-year notes will be closely watched at 1:00 p.m. EST.

With little on the economic calendar, investors focused on news in the corporate sector, where Costco Wholesale slipped 0.6% after the retailer's first-quarter earnings rose 18%, beating market expectations, on a sales increase of 11%. 

U.S. Stock futures traded flat to slightly lower Wednesday morning, as the dollar lifted against other currencies, signaling the bulls that they may face continued resistance.


MORTGAGE APPLICATIONS DECLINE
The number of mortgage applications in the US fell last week as higher lending rates led to a fourth straight decline in refinancing.


TUESDAY:  Small gains are expected across most sectors today in another day of choppy trading.

By mid-day the market saw that the U.S. dollar is  now pricing in expectations that the Federal Reserve's controversial bond-buying program will buttress economic growth and help support the dollar in the near term. Traders appeared to agree, as the greenback changed hands above $1.33 against the euro in late U.S. trading, a cent higher than the previous session. Markets were also preparing for the risk of disappointment from a meeting of euro-zone finance ministers in Brussels, which undermined the euro.

The S&P 500 index rose 0.5% to 1230 recently after hitting 1235.05, its highest intraday level since Sept. 22, 2008. The industrial sector led the measure's broad climb.

The Dow Jones Industrial Average rose 45 points, or 0.4%, to 11407. The measure came within close reach of its September 2008 highs. It hit an intraday high of 11450.89, just shy of the 11451.53 level hit Nov. 5 that the Dow will need to surpass to reach its September 2008 highs. General Electric led the measure's gains with a 2.6% increase while Caterpillar was also strong, up 2.4%.

The Nasdaq Composite added 0.6% to 2611. The Russell 2000 index of small-capitalization stocks, often viewed as a measure of the market's appetite for risk, climbed 0.8% to 767. Earlier in the session, the small-cap index hit a fresh two-year intraday high at 769.02.

AMERICAN'S ARE BORROWING MONEY

US Consumer Borrowing Rises For Second Straight Month In Oct. Sept. Consumer Credit Revised To $1.2B From Up $2.1B 

Tuesday's report confirmed U.S. spending by consumers is modest, a trend that is restricting the economy from growing strongly out of recession.  A high U.S. unemployment rate, which climbed to 9.8% in November, and falling home prices have held back spending, which is a big driver of the economy.

U.S. consumer borrowing unexpectedly climbed again in October as a jump in student loans offset the 26th consecutive decline in credit-card use.

Consumer credit outstanding increased at a seasonally adjusted annual rate of 1.7%, up by $3.4 billion to $2.4 trillion, a Federal Reserve report said Tuesday.

The gain was the second in as many months following 19 straight losses. Economists surveyed by Dow Jones Newswires had predicted a $2 billion decline in October consumer credit.

The data Tuesday showed the October gain was driven by another big increase in student loans, a category that pushed up overall consumer credit in September by $1.2 billion.
The report on October borrowing showed revolving credit decreased $5.6 billion, or 8.4%, to $800.5 billion. The last time credit-card debt rose was August 2008.

About 8 million consumers stopped actively using credit cards over the past year, according to the credit-reporting group TransUnion. In a report Nov. 29, it said credit-card delinquencies continued declining amid tighter lending standards by banks.

The Fed report Tuesday said non-revolving credit rose 6.8%, or $9 billion, to $1.6 trillion. The category includes loans for cars, tuition, and boats. 


ISM SEES US RECOVERY GAINING STRENGTH IN 2011
The U.S. recovery will pick up steam next year, although jobs will remain a sticking point, according to the semiannual forecast by the Institute for Supply Management.

In the early market trading the Dow Jones Industrial Average rose 85 points, or 0.8%, to 11447. All but one of the Dow's 30 components climbed. Caterpillar and Bank of America were in the lead, up 1.7% each, while Alcoa was also strong with a 1.6% increase. The lone decliner was 3M, off 1.2% as the low end of the manufacturing giant's 2011 forecast for earnings and revenue came in below analysts' estimates.

The Nasdaq Composite added 1% to 2620. The Standard & Poor's 500 index rose 0.9% to 1234, with all of its sectors in the black. The energy sector had the biggest gains as crude-oil futures topped $90 a barrel.

The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, slipped 0.4%. The euro rose to $1.3386.  Treasurys also fell, lifting the yield on the 10-year note up to 3.05%. Gold futures also advanced.

U.S. LCD-TV SHIPMENTS DECLINING
U.S. shipments of liquid-crystal display televisions are expected to fall on a year-over-year basis in 2010, the first time they have done so as prices fall more slowly and economic concerns linger, according to one industry researcher.

LCD-TV shipments are expected to be 31.9 million units in 2010, down 1.2% from a year earlier. The decline "represents a shocking reversal for a U.S. LCD-TV market that has expanded robustly during every year since volume shipments commenced in 2006," iSuppli said.

"In 2010, the realities of the economy finally caught up with the LCD market, causing sales to decline for the first year ever," said Riddhi Patel, iSuppli's director and principal analyst for television. "Despite this setback, shipments will resume their growth in 2011 as consumer confidence rises again."

The flat-panel TV market has become weaker of late as consumer confidence is low and unemployment has remained high. LCD-TV prices also didn't decline at their customary rapid pace in 2010. ISuppli said that with most consumers having already bought a flat-panel set in recent years, "the combination of economic uncertainty and paucity of deals spurred a decline in shipments."

BEFORE THE BELL:

Stock and commodity futures pointed to a higher open for Tuesday. The Dow is +83 to 11436, S&P +11.10 to 1233.20, NASDAQ + 20.00 to 2210.50

 Futures surged after U.S. president Barack Obama announced an agreement with Republicans Monday night to extend the Bush-era tax cuts for two years, while also renewing unemployment benefits and granting a one-year reduction in Social Security taxes.

=Monday=
U.S. Stocks closed mixed in a choppy cautious fashion on the opening day's trading for the week of December 6th.  The Dow dipped 19 points today to 11362, the S&P fell 1 point to 1223, while the Nadaq rose 3 points to 2594.

U.S. Stocks turned positive in afternoon trading as the dollar relaxed it gains for the day. The Dow Jones Industrial Average edged up 5 points, to 11388 in midday trading, after a strong three-day rally that saw the Dow climb 2.6% on the week. 

Major banks were weak Monday after Nomura said one or more U.S. credit rating agencies could downgrade some large U.S. banks and brokers in early 2011, with Bank of America, Citigroup and Morgan Stanley seeming to be most at risk. Bank of America led the Dow's declines, falling 1.4%. Citigroup edged down 0.5%, while Morgan Stanley traded flat.

Cisco rose 2.4% after Oppenheimer raised its stock-investment on the company to outperform from perform. The Nasdaq Composite edged up 0.2% to 2592. The Standard & Poor's 500-share index slipped 0.1% to 1223.

At 11:00 am EST the U.S. market was flat on mixed sentiment. Investors are split over the implications of the Fed's bond-buying program on the stock market.  The dollar rose against the euro and was slightly higher against the yen. The euro was trading recently at $1.3281, down from $1.3411 late Friday in New York. The U.S. Dollar Index, which tracks the currency against a basket of six others, rose 0.5%.

The Dow Jones Industrial Average fell 18 points, or 0.2% to 11364. Bank of America led the measure's decline, slipping 1.3%. Keeping the Dow's losses in check, Cisco rose 2.5% after Oppenheimer raised its stock-investment on the company to outperform from perform. The Nasdaq Composite shed three points to 2588. The Standard & Poor's 500-share index slipped 0.2% to 1223.

In the U.S. and abroad, materials and energy led the market's modest gains on Monday. Both sectors stand to benefit from a weaker dollar and the U.S. currency could see further downward pressure from the Fed's bond buying.

Technology stocks were also strong. Cognizant Technology Solutions rose 1.6% after Goldman Sachs raised its stock-investment rating on the information-technology consultant and outsourcing company, to buy from neutral, citing the company's leading growth profile, robust fundamentals, and late cycle positioning. Apple rose 1.2%, while Google gained 1.1%.

US stock-market futures pointed to a lower start for Wall Street Monday. Stock index futures fell on Monday as the U.S. Dollar gained against other currency pairs. But the market news wires say that the market is down after Federal Reserve Chairman Ben Bernanke offered a more sobering view of the economy and investors were set to lock in profits after a strong performance last week.

CHINA E-COMMERCE IPO TO DEBUT
Expected IPO Range For E-Commerce China Dangdang Lifted

The U.S. IPO market has been more active lately with an inflow of Chinese debuts often--but not universally--getting a warm reception from investors. On Monday, E-Commerce China Dangdang said it anticipates the IPO price being $13 to $15 per American depositary share, up from last month's expected range of $11 to $13. It has applied to list its ADS on the New York Stock Exchange under the symbol DANG. The sale of at least 17 million ADS is still anticipated, up to 13.5 million from the company and the rest from current holders such as cofounder and Chief Executive Guoqing Li.

Each ADS represents five ordinary shares, of which some 390 million will be outstanding after the IPO. China Dangdang's proceeds will go toward expanding its operations.

The company operates the leading Chinese e-commerce store, dangdang.com, Like Amazon.com Inc. (AMZN) in the U.S., it originally focused on online book sales but now offers a range of product categories, like other media, apparel, electronics and beauty and home products. China Dangdang also set up a marketplace program last year that allows third-quarter merchants to sell their general merchandise alongside the e-commerce products. In the first nine months of this year, China Dangdang reported it swung to a profit as sales jumped 44%, reaching $197.6 million when translated to dollars.

BEFORE THE BELL:

Sunday: Federal Reserve Chairman Ben Bernanke appeared on CBS's "60 Minutes" show this Sunday. The U.S. stock market will likely start the week ahead with Ben Bernanke on its collective mind, with the Federal Reserve chairman defending the Fed's bond buys in an interview aired Sunday night on ABC at 7:00 p.m.

Treasuries snapped a three-day loss, the dollar gained and silver jumped to a 30-year high after Federal Reserve Chairman Ben S. Bernanke said the central bank may boost purchases of U.S. securities. Fed purchases of Treasuries beyond the $600 billion announced are “possible” given that U.S. unemployment may take five years to fall to a normal level, Bernanke said, helping to overcome investor concern over an unexpected gain in the jobless rate last month.

While a long period of high unemployment could damage confidence, a return to a recession “doesn’t seem likely,” Bernanke said in an interview on CBS Corp.’s “60 Minutes” program. Any increase of the planned purchase of bonds will depend on “the efficacy of the program” and the outlook for inflation and the economy, the Fed Chairman said. The yield on the benchmark 10-year Treasury note climbed to as high as 3.04 percent on Dec. 3, the highest level since July 28.

Gains today helped the dollar rebound from a three-week low against the yen. The greenback rose to 82.98 yen from 82.53 yen in New York, the lowest since Nov. 15. It appreciated to $1.3351 per euro from $1.3414.

Employment Trends Index Rises

A measure of labor indicators increased again last month, according to a report released Monday by the Conference Board.  The board said that its November employment trends index increased to 99.0 from a revised figure of 97.6 in October, first reported as 98.1. The November index is up 9.3% from a year ago.

The index comes after Friday's official jobs report that showed non-farm payrolls increased only 39,000 in November, and the unemployment rate rose from 9.6% to 9.8%. 

Seven out of the eight components increased last month. The positive indicators included new jobless claims and the percentage of firms with positions not able to fill right now.

The Conference Board's index is an aggregate of eight labor-market indicators, including jobless claims, job openings data from the Bureau of Labor Statistics and industrial production figures from the Federal Reserve. It seeks to facilitate forecasts for employment, unemployment and wages by filtering out the noise and volatility of monthly labor market indicators and showing underlying trends more clearly.

The employment trends index is published the first business day following the government's monthly jobs report.


Gallup Finds Unemployment Down to 8.8% in November
December 2, 2010
Unemployment, as measured by Gallup without seasonal adjustment, declined to 8.8% at the end of November, down from 9.2% in mid-November and 9.4% at the end of October. At the same time, Gallup finds that broader U.S. underemployment improved to 17.2% -- a new 2010 low.
http://www.gallup.com/poll/145004/Gallup-Finds-Unemployment-Down-November.aspx

Younger, Less Educated Lead Job Gains Since September
Gallup's monitoring of the U.S. employment situation, without seasonal adjustment, finds the jobs situation improving among many segments of the workforce, with unemployment among Americans 18 to 29 and those with some college education falling the most since September.
http://www.gallup.com/poll/145049/Younger-Less-Educated-Lead-Job-Gains-September.aspx

The early weakness in the markets comes following the release of a report from the Labor Department showing weaker than expected job growth in the month of November as well as an unexpected uptick in the unemployment rate.

The report showed that non-farm payroll employment increased by 39,000 jobs in November following an upwardly revised increase of 172,000 jobs in October. Economists had expected the addition of about 130,000 jobs compared to the increase of 151,000 jobs originally reported for the previous month.

Despite the increase in employment, the report also showed that the unemployment rate ticked up to 9.8 percent in November from 9.6 percent in October. The increase came as a surprise to economists, who had expected the unemployment rate to remain unchanged at 9.6 percent.

While the report has generated some negative sentiment, economists have pointed out that the disappointing numbers are in stark contrast to most of the other recent data.

Disappointing jobs data weakened stocks in the early going, but some late buying took the broader market to its third straight gain and within reach of its two-year high.

Nonfarm payrolls for November increased by 39,000 and private payrolls expanded by 50,000, but both disappointed as the consensus among economists polled by Briefing.com had called for respective increases of 130,000 and 140,000. An unexpected rise in the headline unemployment to 9.8% from 9.6% was also discouraging.

The jobs data immediately weakened the tone surrounding stocks. The dollar was also hit by sellers.The dollar ended the day down 1.4%, which made for its third straight loss and fourth in five days. The dollar ended the week down 1.5% for its worst weekly performance of the past two months.

U.S. POLICIES CANNOT STAND IN THE LIGHT OF DAY
Leaks may hamper U.S. anti-terrorism intelligence sharing: report
The latest disclosures by the WikiLeaks website have struck a blow to the push to widely share

sensitive information among the massive intelligence bureaucracy.
http://news.xinhuanet.com/english2010/world/2010-12/06/c_13636040.htm

Swiss shut down bank account for WikiLeaks founder Assange; servers under attack
By: John Heilprin, The Associated Press
Posted: 6/12/2010 8:06 AM

GENEVA - The Swiss postal system stripped WikiLeaks founder Julian Assange of a key fundraising tool Monday, accusing him of lying and immediately shutting down one of his bank accounts.

The swift action by Postfinance, the financial arm of Swiss Post, came after it determined the "Australian citizen provided false information regarding his place of residence during the account opening process."

Assange had told Postfinance he lived in Geneva but could offer no proof that he was a Swiss resident, a requirement of opening such an account.

Postfinance spokesman Alex Josty told The Associated Press the account was closed Monday afternoon and there would be "no criminal consequences" for misleading authorities.

"That's his money, he will get his money back," Josty said. "We just close the account and that's it."

The setback leaves Assange with only a few options for raising money for his secret-spilling site through a Swiss-Icelandic credit card processing centre and accounts in Iceland and Germany.

WikiLeaks has been under intense international scrutiny over its disclosure of a mountain of classified U.S. diplomatic cables, after previously releasing tens of thousands of classified U.S. military documents on the wars in Afghanistan and Iraq. The unprecedented disclosures have embarrassed the U.S. and other governments worldwide and prompted U.S. officials to pressure the WikiLeaks site and its facilitators.

Read the entire article at the Winnipeg Free Press:
http://www.winnipegfreepress.com/business/breakingnews/wikileaks-swedish-web-hosting-company-our-servers-are-unresponsive-may-be-under-attack-111375984.html


CRUDE OIL:

FRIDAY: U.S. Crude Oil: $87.62 per barrel
FRIDAY'S OIL FUTURES: Nymex Crude Settles 58c Lower At $87.79/Bbl
Oil prices held steady Friday, as markets shrugged off China's move to raise its banks' reserve requirements and awaited a decision due this weekend on interest rates.

Light, sweet crude for January delivery fell 2 cents at $88.35 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange added 12 cents, or 0.1%, at $91.11 a barrel.

Front-month January reformulated gasoline blend-stock, or RBOB, recently fell 0.98 cent, or 0.4%, to $2.3307 a gallon. RBOB's retreat comes a day after an outage at a key gasoline-making unit at the Hovensa refinery in St. Croix sent gasoline futures soaring.

January heating oil gained 0.1 cent at $2.4678 a gallon.

THURSDAY'S OIL FUTURES: Nymex Crude Settles 9c Higher At $88.37/Bbl
 
Oil futures traded lower Thursday, as weaker equities and a rising dollar erased a boost in prices earlier in the trading day.

In morning trading, light, sweet crude for January delivery fell 20 cents, or 0.2%, at $88.08 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange lost 21 cents, or 0.2%, at $90.56 a barrel.

Front-month January reformulated gasoline blend-stock, or RBOB, recently gained 0.49 cent, or 0.2%, at $2.3095 a gallon. January heating oil fell 0.1 cent at $2.4597 a gallon.

WEDNESDAY OIL FUTURES: Nymex Crude Settles 41c Lower At $88.28/Bbl
 
Department of Energy Reports:
DOE: US Refineries Ran At 87.5% Vs 82.6% Week Ago
US Gasoline Stocks +3.811M Bbl In Wk; Seen +0.1M Bbl

US Distillate Stocks +2.154 Mln Bbl At 160.211 Mln Bbl

US Crude Oil Stocks -3.819 Mln Bbl At 355.872 Mln Bbl

U.S. crude inventories posted a bigger-than-expected draw last week while stocks of refined products expanded, according to data released Wednesday by the U.S. Department of Energy.

  Crude oil stockpiles fell by 3.8 million barrels to 355.87 million barrels for the week ended Dec. 3, compared with an average survey estimate of a decline of 1.2 million barrels. On Tuesday, the American Petroleum Institute, an industry group, data showed stocks fell by 7.3 million barrels last week.

  Futures contracts for crude oil extended losses Wednesday, with January contracts trading down 1.3% recently at $87.61 a barrel on the New York Mercantile Exchange. January futures for gasoline were down 1.8% at $2.2820 a gallon and for heating oil were down 1.4% at $2.4346 a gallon.

  Inventories of crude oil and major refined products remain at unusually high levels seen for this time of the year.

  Gasoline stockpiles rose by 3.8 million barrels to nearly 213.87 million barrels, the department's Energy Information Administration said in its weekly report. The forecast called for a 100,000-barrel decline based on a Dow Jones Newswires survey of 17 analysts.

  Distillate stocks, which include heating oil and diesel fuel, added 2.2 million barrels to 160.21 million barrels versus the 600,000-barrel drop analysts expected.

  Refining capacity utilization jumped 4.9 percentage points to 87.5%. Analysts had expected a 0.9-perecentage-point increase.

API reported that refinery utilization rose by 4.2 percentage points to 86.1% and that inventories of gasoline rose by 4.8 million barrels and distillates added 1.7 million barrels.

TUESDAY OIL FUTURES: Nymex Crude Settles 69c Lower At $88.69/Bbl

Oil futures retreated after touching a two-year high above $90 a barrel on Tuesday.A weak dollar earlier in the session gave crude oil the final shove above $90.

Light, sweet crude oil for January delivery recently fell 48 cents, or 0.6%, to $88.90 a barrel on the New York Mercantile Exchange, after earlier rising as high as $90.76, the highest price since October 2008. Brent crude oil on the ICE futures exchange fell 18 cents, or 2%, to $91.27 a barrel.

The Organization of Petroleum Exporting Countries (OPEC) meets this week and is expected to keep production quotas unchanged.

The department's Energy Information Administration said Tuesday that crude oil prices are expected to rise to $88.50 a barrel by the fourth quarter of 2011, according to estimates from the U.S. Department of Energy, up from a previous outlook calling for a rise to $87 a barrel.

U.S. crude-oil inventories are expected to fall by 1.3 million barrels in the weekly data.Gasoline stocks are seen rising by 400,000 barrels, while stocks of distillates, which include heating oil and diesel, are seen falling by 700,000 barrels.

Front-month January reformulated gasoline blend-stock, or RBOB, recently traded down 0.7 cent, or 0.3%, at $2.3347 a gallon. January heating oil recently gained 0.33 cent, or 0.1%, at $2.4788 gallon.

Monday, Crude oil added 0.2 percent to $89.38 a barrel, the highest in 26 months.


NATURAL GAS:
FRIDAY: Natural Gas: $ 4.40
FRIDAY'S US GAS: Futures Settle Down 0.4% at $4.417/MMBtu 
THURSDAY'S  US GAS: Futures Close Down 3.7% at $4.434/MMBtu 
WEDNESDAY US GAS: Futures Close Up 4.8% at $4.605/MMBtu

 

US Gas Futures Rise On Large Storage Draw

Natural gas futures climbed Wednesday on expectations that increased heating demand amid widespread cold led to a large withdrawal from U.S. gas stockpiles.

Natural gas for January delivery recently traded 13.5 cents, or 3.1% higher, at $4.528 a million British thermal units on the New York Mercantile Exchange. The benchmark gas contract has climbed about 8% so far in December as colder-than-normal temperatures settled in across much of the Eastern U.S., lifting demand expectations for the heating fuel.

U.S. gas inventories stood at 3.814 trillion cubic feet as of Nov. 26, the Energy Information Administration reported last week, 10% above the five-year average. This week's report is scheduled for release Thursday at 10:30 a.m. EST.

The EIA Tuesday lifted its 2010 gas production estimates. U.S. natural gas production this year should show a 3.5% increase from 2009 levels, the EIA said, up from the 2.5% increase previously forecast. Marketed natural gas production is seen at 62.09 billion cubic feet a day, up from 61.49 bcf a day.

TUESDAY US GAS: Futures Settle Down 2.1% at $4.393/MMBtu

Tuesday's natural gas for January delivery settled 9.5 cents, or 2.1%, lower at $4.393 a million British thermal units on the New York Mercantile Exchange. The benchmark contract Monday had settled at its highest price since August.

U.S. gas inventories stood at 3.814 trillion cubic feet as of Nov. 26, the Energy Information Administration reported last week, 10% above the five-year average. This week's report is scheduled for release Thursday at 10:30 a.m. EST.


PRECIOUS METALS:

FRIDAY: Gold:  $ 1,386

FRIDAY: Silver:$ 28.66

Friday Gold settled down Friday, lead by the strong dollar.  The most actively traded contract, for February delivery, settled down $7.90, or 0.6%, at $1,384.90 per troy ounce on the Comex division of the New York Mercantile Exchange. Exchange-traded funds, remain near record levels and point to strong investor appetite for the metal. Gold ETF holdings fell 0.9 metric tons to 2,136 metric tons, just below the all-time high of 2,143 metric tons, according to Barclays Capital .


Comex gold futures trended lower Friday against the dollar's rise. The most actively traded contract, for February delivery, recently traded down 0.8%, or $11.70, at $1,381.10 per troy ounce on the Comex division of the New York Mercantile Exchange.

Engelhard Corp's base price for industrial gold bullion was $1378.24 per troy ounce, down $16.03 from previous. It's selling price for gold in fabricated form was $1481.61, down $17.23.
Handy & Harman's base price for gold was $1375.25 per troy ounce, down $16.00. The fabricated form price was $1485.27, down $17.28.

Friday Settlements (Range includes floor and electronic trading):
London PM Gold Fix: $1,375.25; previous PM $1,391.25
Feb gold $1,384.90, down $7.90; Range $1,372.70-$1,388.40
Mar silver $28.605, down 2.12 cents; Range $28.060-$29.030
Jan platinum $1,675.30, down $3.60; Range $1,666.10-$1,687.20
Mar palladium $732.70, down $8.90; Range $725.50-$740.75


Thursday:  Gold futures continue to attract long-term buyers, with open interest in June 2011 and December 2011 contracts gaining ground in recent days.  The most actively traded contract, for February delivery, settled up $9.60, or 0.7% at $1,392.70 per troy ounce on the Comex division of the New York Mercantile Exchange.

Engelhard Corp's base price for industrial gold bullion was $1394.27 per troy ounce, up $5.76 from previous. It's selling price for gold in fabricated form was $1498.84, up $6.20.

Handy & Harman's base price for gold was $1391.25 per troy ounce, up $5.75. The fabricated form price was $1502.55, up $6.21.

Thursday Settlements (Range Includes Floor and Electronic Trading):

London PM Gold Fix: $1,391.25; previous PM $1,85.50
Feb gold $1,392.80, up $9.60; Range $1,381.10-$1,395.60
Mar silver $28.817, up 56.5 cents; Range $28.200-$29.045
Jan platinum $1,678.90, down $2.50; Range $1,673.50-$1,695.00
Mar palladium $741.60, up $8.10; Range $725.25-$751.60


Wednesday:  Gold declined Wednesday. The most actively traded gold contract fell $25.80, or 1.8%, to settle at $1,383.20 a troy ounce on the Comex division of the New York Mercantile Exchange. 

Engelhard Corp's base price for industrial gold bullion was $1388.51 per troy ounce, down $34.55 from previous. It's selling price for gold in fabricated form was $1492.64, down $37.15.
Handy & Harman's base price for gold was $1385.50 per troy ounce, down $34.50. The fabricated form price was $1496.34, down $37.26.

Tuesday gold futures were unable to hold onto early gains, ending lower, but above the key $1,400 per troy ounce level, an indication that traders remain concerned about inflation.

The most actively traded contract, for February delivery, settled down $7.10, or 0.5%, at $1,409 per troy ounce on the Comex division of the New York Mercantile Exchange. Futures had peaked at $1,432.50 an ounce, a record.

Gold futures had peaked above the $1,430 level Tuesday during morning trade, triggering a technical sell-off as traders moved to book gains.

Engelhard Corp's base price for industrial gold bullion was $1423.06 per troy ounce, up $4.75 from previous. It's selling price for gold in fabricated form was $1529.79, up $5.11.
Handy & Harman's base price for gold was $1420.00 per troy ounce, up $4.75. The fabricated form price was $1533.60, up $5.13.


SILVER REACHES $30.00 Per Ounce Monday
Silver prices followed gold's rally to set a fresh 30-year high Monday.

March-delivery silver, the most actively traded contract, settled at a fresh 30-year high of $29.705 per troy ounce on the Comex division of the New York Mercantile Exchange. The contract also set an intraday high of $30.055 per ounce.
 

Gold Settles At Fresh Record Of $1,416.10

The most actively traded contract in late afternoon trading, for February delivery, settled up $9.90, or 0.7%, at $1,416.10 per troy ounce on the Comex division of the New York Mercantile Exchange. Gold's previous record settlement of $1,410.00 was set Nov. 9.

Gold prices are also seeing support from physically backed exchange-traded funds. Gold held by ETFs rose to a fresh record high of 2,151.3 metric tons, according to Barclays Capital.

The most actively traded platinum futures, for January delivery, settled down 0.9%, or $14.90, at $1,713.60 per troy ounce on the Nymex.

Palladium for March delivery, the most actively traded contract, settled down 2.4%, or $18.70, at $751.40 per troy ounce on the Nymex.

Monday Settlements (Range Includes Floor and Electronic Trading):
London PM Gold Fix: $1,415.25; previous PM $1,403.50
Feb gold $1,416.10, up $9.90; Range $1,409.80-$1,422.40
Mar silver $29.705, up 46.4 cents; Range $29.495-$30.160
Jan platinum $1,713.60, down $14.90; Range $1,711.40-$1,737.50
Mar palladium $751.40, down $18.70; Range $751.00-$767.05

Monday: Comex gold futures open near record levels Monday as inflation concerns in the U.S..  Gold maintained $1,412 and ounce and Silver climbed to $29.80 an ounce and copper rallied to $4.01 for a fifth day. Silver for immediate delivery gained as much as 1.5 percent to the highest level since 1980. Copper futures in London rose as much as 0.6 percent to $8,780 a metric ton and was set for its longest rally since July amid a labor dispute at Anglo American Plc and Xstrata Plc’s Collahuasi venture in Chile, the world’s third-biggest copper mine.

The most actively traded contract, for February delivery, was recently trading up 0.7%, or $9.50, at $1,415.70 per troy ounce on the Comex division of the New York Mercantile Exchange.


U.S. TREASURYS/BONDS:
FRIDAY:
Demand for Treasurys declined, lifting the yield on the 10-year note up to 3.29%.  Treasurys were mixed, with increased demand for the two-year note pushing its yield down to 0.61%, while a decline in the 10-year lifted its yield to 3.26%.

NY FED TO BUY $105 BILLION IN TREASURYS

NY Fed will buy $105 billion in Treasury debt over the coming month. The bank says the purchases will include $75 billion done under the new program to buy $600 billion in longer term government bonds by the middle of next year.

THURSDAY: 
Treasury prices got a boost Thursday after an auction of $13 billion in 30-year bonds met with
strong demand. Yields fell as worries over aggressive interest-rate hikes eased, with returns on the 10-year note falling to 3.239% earlier in the session from a six-month high of 3.330% late Wednesday. Earlier, Treasuries steadied after a recent jump in yields. Treasury prices rose Thursday following the biggest two-day sell-off in two years, as higher yields lured buyers. The yield on the 10-year note retreated to 3.21%.

WEDNESDAY:
U.S. Treasury prices plunged on Wednesday for a second straight day, pushing benchmark yields to a six-month high, after a deal in Washington to extend tax cuts fueled fears of inflation and a swelling budget deficit.

The sharp dip in prices brought some buyers to the table in an auction of $21 billion of reopened 10-year notes, which was part of $66 billion of coupon-bearing securities sales this week. Bond prices rebounded somewhat from their lowest levels of the day following the sale, which analysts said saw about average demand.

Still, sentiment remained strongly bearish heading into the sale of $13 billion of reopened 30-year bonds on Thursday.

In early trading Wednesday Treasury yields continued to surge, pushing the yield on the benchmark 10-year note to 3.278%. A $21 billion auction of 10-year notes will be closely watched at 1 p.m. EST.

Benchmark 10-year notes US10YT were trading 1-9/32 lower in price for a yield of 3.29 percent, up from 3.13 percent late on Tuesday.

If the bond market deteriorates further, the 10-year yield could test support in the 3.30 to 3.32 percent area.  A market rebound could make the 10-year yield test resistance at 3.10 percent, its 200-day moving average.

MONDAY: Demand for U.S. Treasurys rose Monday, pushing yield on the 10-year note down to 2.95%. The benchmark 10-year note's yield, which moves inversely to its price, fell below 3% again after hitting 3.062% Friday, the highest level since July.


As of 4 p.m. EST, the benchmark 10-year note was 19/32 higher in price to yield 2.935%. The 30-year bond was 1 9/32 higher to yield 4.241%, and the two-year note was 3/32 higher to yield 0.433%.

The bond market faces $66 billion in new government-debt supply. The Treasury Department will sell $32 billion in three-year notes Tuesday, $21 billion in 10-year notes Wednesday and $13 billion in 30-year bonds Thursday.


FRIDAY, DEC. 10, 2010; 4:00 PM:
3  Month     0.09%     -0.02 (-18.18%)
6 Month     0.16%     0.00 (0.00%)
2 Year     0.63%     +0.02 (3.28%)
5 Year     1.98%     +0.08 (4.21%)
10 Year     3.32%     +0.06 (1.84%)
30 Year     4.43%     -0.01 (-0.23%) 



____________________________________________________________
Canadian Market:

TORONTO UP - MIXED FRIDAY
Toronto stocks closed higher Friday lead by materials and financials, as consolidating commodity prices and mixed economic data soothed but didn't excite investors.

The S&P/TSX Composite Index rose 72.53 points, or 0.55%, to 13239.47. Advancers led decliners 833 to 771. Trading volume was 462.5 million shares, down from Thursday's total of 481.6 million shares. The S&P/TSX 60 Index closed up 4.7 points, or 0.6%, to 756.68.


At Mid-day the stock market was slightly higher in mixed trading at midday Friday even as gold and other commodities continued to spiral lower. Financials were stronger as a flurry of economic data helped solidify growing investor confidence.Canada's trade deficit was at C$1.71Billion In October.

At 11:45 a.m. EST (1645 GMT), the S&P/TSX Composite Index was up 20.33 points, or 0.15%, at 13187.27. Decliners led advancers 767 to 616. Trading volume was 199.9 million shares. The S&P/TSX 60 Index was up 2.02 points, or 0.3%, to 754.00 points.

At the market open, Toronto stocks rise a little in mixed trading. Materials declined against the U.S. dollar's rise. Industrial and financial sectors increased slightly Friday morning in light trading.

TORONTO STOCKS MIXED THURSDAY
Toronto stocks end the day mixed, on low volume. Toronto stocks finished a see-saw session with a small gain Thursday as gold producers ticked slightly higher. However, activity was mixed with decliners outpacing advancers 854 to 769. the S&P/TSX Composite Index rose 14.94 points, or 0.11%, to 13166.94. Trading volume was 481.6 million shares, down from Wednesday's total of 536.2 million shares. The S&P/TSX 60 Index closed up 1.25 points, or 0.2%, to 751.98.

Among major movers, transportation giant Bombardier fell 0.04 to 4.58 despite confirming a new order for 15 turboprop aircraft.

Royal Bank of Canada lost 0.11 to 52.47, Barrick Gold added 0.44 to 53.91 and IAMGold moved 0.41 higher to 17.13. 

Toronto stocks are little changed at mid-day with stocks only marginally higher.  Material, Industrials, Financials and energy equity issues are leading the Toronto exchange as the dollar steadies boosting metals and providers.

At 11:45 a.m. EST (1645 GMT), the S&P/TSX Composite Index was up 5.39 points, or 0.04%, at 13157.39. Decliners outweighed advancers 722 to 686. Trading volume was 212.4 million shares.

The S&P/TSX 60 Index was down 0.38 point, or 0.1%, to 750.35 points.


TORONTO STOCKS LOWER WEDNESDAY
Both materials and energy declined Wednesday morning. The stock market was lower at midday Wednesday as a sharp retreat in the price of gold spurred investors to lock in profits from last week's rally.

At 11:45 a.m. EST (1645 GMT), the S&P/TSX Composite Index was down 78.63 points, or 0.59%, at 13172.04. Decliners outweighed advancers 963 to 496. Trading volume was 251.2 million shares.

The S&P/TSX 60 Index was down 3.77 points, or 0.5%, to 752.57 points. 


Canada Housing Starts Jump 11.6%
Canadian housing starts jumped 11.6% in November, beating analyst expectations, after a solid increase in urban multiple starts in Ontario more than offset declines in all other regions of the country, Canada Mortgage and Housing Corp. said. The rate of starts was 187,200 in November, up from a revised 167,800 in October.

Urban multiple starts were up 20.9% to 101,800 units in November from October, while urban singles rose 5.5% to 61,300 units. Rural starts were estimated at 24,100 in November.

CMHC said multiple unit starts rose 29,900 in Ontario, mainly due to the start of a number of major apartment projects in the Toronto area.

Urban housing starts jumped 82.8% in Ontario last month, but were down 24% in Atlantic Canada, 21.3% in British Columbia, 15.2% in Quebec and 1.5% in the Prairie provinces.

Website: http://www.cmhc-schl.gc.ca

TORONTO STOCKS LOWER TUESDAY

Toronto stocks closed lower for the first time in seven days Tuesday, as a retreat in commodity prices spurred some profit-taking.

The S&P/TSX Composite Index fell 25.34 points, or 0.19%, to 13250.67. Decliners outweighed advancers 888 to 776. Trading volume was 626.3 million shares, up from Monday's total of 567.3 million shares. The S&P/TSX 60 Index closed down 0.8 points, or 0.1%, to 756.34. 

At 11:45 a.m. EST, the S&P/TSX Composite Index was up 4.28 points, or 0.03%, at 13280.29. Advancers just edged out decliners 741 to 720. Trading volume was 299.3 million shares.

The S&P/TSX 60 Index was flat at 757.51.


At the market open Tuesday, the Toronto stock market headed for a positive open Tuesday amid higher commodity prices, more positive earnings from the financial sector and a deal to extend tax breaks and unemployment benefits in the U.S.

The Canadian dollar was higher ahead of a scheduled Bank of Canada announcement on interest rates, up 0.35 of a cent to 99.82 cents US. The central bank is expected to leave its key rate unchanged at one per cent.

BANK OF CANADA HOLDS RATE STEADY
Bank of Canada leaves its benchmark overnight rate steady at 1.00%,  but reiterates that further rate increases would need to be 'carefully considered,' and says risks to global recovery have increased.
Bank of Montreal profit rises 14 per cent in fourth quarter as revenues climb

AGL Resources buying rival Nicor for about $2.38B in cash, stock


TORONTO STOCKS HIGHER MONDAY
Materials gained again Monday leading the way up for the Toronto Exchange, followed by the energy sector. Financials declined. Toronto stocks closed higher for a sixth consecutive session Monday, buoyed largely by rising precious metals and copper prices. Gold and silver prices broke through 30 year highs Monday.

At the market close, the S&P/TSX Composite Index rose 97.06 points, or 0.74%, to 13276.01. Advancers led decliners 968 to 705. Trading volume was 567.3 million shares, down from Friday's total of 611.5 million shares. The S&P/TSX 60 Index closed up 4.93 points, or 0.7%, to 757.14.

Toronto stocks to opened lower Monday.  Toronto Stock Exchange set for lower open on flat commodities, mixed sentiment.

At 11:45 a.m. EST, the S&P/TSX Composite Index was up 33.40 points, or 0.25%, at 13212.35. Advancers led decliners 855 to 588. Trading volume was 232.4 million shares.

The S&P/TSX 60 Index was up 0.55 points, or 0.1%, to 752.76 points.  

The Canadian dollar was slightly lower Monday morning before markets opened as the U.S. dollar moved higher against most other currencies, and global equities and commodities were mixed. The loonie was down 0.42 of a cent to 99.21 cents US. According to StatsCan, Quebec down as value of building permits drops in October.   

Mining Sector Boosts Toronto Stocks
Toronto gold quoted at C$1,426 bid, C$1,427 asked in mid-morning trading.

Companies in the mining sector have ranged upward since last week as precious metals have soared. In focus today is Eagle Plains Resources Ltd. (EPL.V). Eagle Plains has gained close to 40% percent per day, reaching $1.24 US Monday, in early morning trading. The company has reported drill results for their famous Iron Ridge Project that shows evidence of gold , iron, copper, lead and zinc. They also have a positive balance sheet of $6 million dollars, with a projected balance sheet of $9 million by the end of the year. Their share price was $0.22 last week, it now trades in the $1.05 a share range.

Also in the active list is NovaGold, Baja Mining, Thompson Creek Metals, Denison Mines, Uranium One, Norsemont Mining, and  EMC Metals Monday.      

In commodities, the January crude contract slipped 10 cents to US$89.09 a barrel on the New York Mercantile Exchange. The February gold contract added $9 to US$1,415.20. The March copper contract lost a cent to US$3.99.

Capital Gold (CGC, C$4.80, C$0.16, 3.5%) said its board has rejected a merger proposal from Timmins Gold Corp. (TMM.V), saying it isn't superior to its planned union with Gammon Gold inc. (GRS).
 

The Bank of Canada is making its last interest rate policy announcement of the year Tuesday. But few economists expect him to do anything other than holding rates at one per cent as the economic outlook remains uncertain and after recent weak Canadian data.

Goldcorp announced that the requisite majority of Andean Resources shareholders have voted in favor the proposed acquisition of the latter.

Coal miner Western Coal Corp. said it would be acquired by Walter Energy or C$11.50 per share in cash or 0.114 of a Walter Energy share, or for a combination thereof. The transaction represents a total enterprise value of C$3.3 billion, net of cash on the balance sheet for Western Coal.

High precision measuring instruments maker Roctest Ltd. said its shareholders approved the acquisition by Nova Metrix LLC at C$4.01 per share in cash.

Statistics Canada said the economy added 15,200 jobs in November as part time gains were partly offset by decreases in full time. Meanwhile, the unemployment rate dropped to its lowest level in almost two years amid a significant decline in the number of young people participating in the labor market.

Canada Ivey Purchasing Managers Index At 57.5

The Ivey Purchasing Managers Index was at 57.5 last month, indicating that purchasing activity in Canada expanded from October.  An index greater than 50 indicates an expansion of purchasing activity, while an index below 50 indicates a decline.

The Ivey PMI is compiled by the Purchasing Management Association of Canada and the Richard Ivey School of Business and measures changes in dollars of purchases as indicated by a panel of 175 purchasing managers from across Canada. It includes both the manufacturing and non-manufacturing sectors, and isn't seasonally adjusted.

The employment index for November was at 54.8, indicating employment was higher than in the previous month. The inventories index was at 41.7, indicating inventories were lower than in the previous month. The prices index was at 60.0 in November, indicating prices were higher than in October. The supplier deliveries index was at 44.0, indicating supplier deliveries were slower than in the previous month.

Toronto Indexes, Friday; 4:15 PM EST Composite Up 72.53

 S&P/TSX Composite   13239.47  up   72.53  or 0.6%
 S&P/TSX 60 Index      756.68  up    4.70  or 0.6%
 Financials            183.58  up    1.59  or 0.9%
 Materials             439.96  up    2.26  or 0.5%
 Energy                308.61  up    0.58  or 0.2%
 IT                     30.95  up    0.27  or 0.9%
 Industrials           108.36  up    0.52  or 0.5%

   Volume            Friday           Thursday
   3-4:15              85.8M             94.1M
   9:30-4:15          462.5M            481.7M
____________________________________________________________
South American Markets:


BRAZIL:

Brazil Stocks Close Higher Friday

Brazil's stocks closed higher Friday, lifted by the two main blue chips, as uncertainty about the global economy and Brazilian interest rates kept most other stocks in negative territory.

The Ibovespa stocks index ended 0.7% higher at 68,341 points. The index is down 2% this week but is up 0.9% since the beginning of December.

Investors in Brazil also remain divided over whether or when the central bank will raise interest rates to curb rising inflation expectations. Higher interest rates and the prospect of a slower economy often lead investors to withdraw money from equities.

The two largest companies were both higher, helping lift the average. Brazil's government-run oil company, Petroleo Brasileiro SA (PETR4.BR, PBR), was up 1.2% at 25.70 Brazilian reais ($15), while mining giant Vale SA (VALE5.BR, VALE), was up 1.1% at BRL50.00.

There was little corporate news Friday.

Brazilian steel company Cia Siderurgica Nacional (SID, CSNA3.BR), or CSN, prepared to deploy a small portion of its $6.7 billion war chest with plans to buy stakes in three Spanish cement and long steel companies from the Alfonso Gallardo Group for a total of EUR352 million.

CSN said in a statement published late Thursday that it has signed a memorandum of understanding to buy stakes in Cementos Balboa SA, Corrugados Azpeitia SL and Corrugados Lasao SLU, according to the statement, and said the deal could be wrapped up in the first quarter of 2011.

Investment bank Credit Suisse said the potential deal is "fairly small, accounting for about 2.2% of CSN's market capitalization." CSN's preferred shares ended up 0.7% at BRL27.48.

Steel maker Gerdau SA was one of the day's biggest winners. It's shares were up 3.7% at BRL13.32, and are up 17.5% so far this month.

Barclays Capital said it expects steel stocks may catch up in the short term driven by higher global steel prices and better-than-expected news flow. But it warned that "chronic excess capacity should continue driving the global steel industry mini-cycles for the next 3-4 years," and said it prefers iron ore miners over steelmakers.

Brazil's big four banks, Banco do Brasil SA (BBAS3.BR), Itau Unibanco Holding SA (ITUB4.BR), Banco Bradesco SA (BBDC4.BR) and Banco Santander Brasil (SANB4.BR), were all underwater. Banco do Brasil was down 1.7% at BRL17.89, and is down %6.6 this week. Bradesco was off 1% at BRL18.95 and is down 2.9% this month.

Last week, the central bank raised reserve requirements, which it said would make banks set aside some BRL61 billion in cash, as it sought to rein in red-hot lending.

Brazil Stocks End Lower Thursday

Brazil's Bovespa stocks index lost ground to end lower Thursday as upbeat local data failed to shield shares from the impact of uncertainties in markets abroad. The main Sao Paulo stocks index ended 0.4% lower at 67,879 points after ending at 68,174 points Wednesday.

Traders noted local markets Thursday got a lift early in the session from continued strong growth registered by the local economy in the third quarter.

According to the IBGE statistics institute, the country posted 6.7% growth in the third quarter from the same period last year. Growth slowed slightly by a quarterly measure to 0.5% from 1.2% previously, but analysts noted the latest figures were enough to keep the country on track for annual growth of more than 7% this year.

Also helping the local mood Thursday was the central bank monetary policy committee's decision late Wednesday to hold the country's reference Selic interest rate unchanged for a third straight meeting. The bank said it hoped to further evaluate recent measures to rein in lending before studying possible interest rate hikes. Analysts Thursday concluded that with the move the bank could put off rate tightening to as late as March.

The favorable signals, however, were not enough to push the local index beyond the reach of
pessimism over declines in markets abroad, and most shares declined.

At the end of trading Thursday, some shares resisted declines.

Materials shares were among gainers, with steelmaker Gerdau (GGB, GGBR4.BR) up 2.2% to 21.89 reais ($12.96).  Additionally, state-controlled oil company Petrobras (PBR, PETR4.BR) advanced 1.6% to BRL25.40.  In the telecom sector, fixed-line telecom Oi rose 2.1% to BRL24.42 and mobile company Tim Participacoes (TCSL4.BR) rose 0.7% to BRL5.62.   Leading airline Tam (TAMM4.BR) also posted a gain, rising 1.7% to BRL41.17.

Brazil's Economy Slows

Brazil's economy last quarter eased from its torrid pace of growth earlier this year, making the outlook for local interest rates a little tougher to call.

Some measures had already been taken, facilitating the moderation in growth.

Brazil's economy expanded 6.7% on year in the third quarter, down from a red-hot 9.2% rate in the second quarter. Quarter-on-quarter growth was also a more moderate 0.5% last quarter.

The data indicate that interest-rate hikes and the expiration of tax cuts earlier this year were working their way through the broader economy, perhaps buying the central bank more time in its fight against inflation.

"We can already start to see some effects from the monetary tightening, but it's still very small," said Rafael Bacciotti, an economist with the Tendencias consultants group.

Henrique Meirelles, who will end his term as Brazil's longest-serving central bank chief at the end of the month, said Thursday the third-quarter growth confirms "that the Brazilian economy is moving toward a trajectory in line with long-term equilibrium."

Despite the inflationary pressures, the Brazilian Central Bank opted to hold the benchmark Selic base interest rate steady at 10.75% late Wednesday. While the bank noted a "less favorable outlook" for inflation, it said more time was needed to evaluate measures it had implemented last week to reduce credit growth.

The central bank said it would "carefully monitor" the economy, which implies that "we are again close to seeing rate hikes, based on past history," HSBC said. The firm expects a half-percentage-point increase in January.

  What's at stake is the delicate balance the central bank needs to strike in its fight against inflation and President-elect Dilma Rousseff's publicly declared desire to see lower interest rates.

Lower rates would reduce the government's cost of servicing its heavy debt load, while also easing the appreciation pressure on the real currency. Brazil's towering interest rates have attracted foreign investors in search of higher returns, causing an unwanted strengthening in the Brazilian real.

On the fiscal side, Finance Minister Mantega said the government would implement cost cuts that should also aid in the fight against inflation. Neil Shearing, senior emerging markets economist at Capital Economics, said central bankers may have decided to hold rates steady to see if the new government will indeed rein in spending.

  "With this in mind, a rate hike is possible in January," Shearing said in a research report. "But we remain of the view that other forms of monetary tightening--including further increases in bank reserve requirements--will do the bulk of the heavy lifting."

Should the central bank be successful in controlling inflation by any means other than raising interest rates, Rousseff could then get her wish.

"If inflation is under control and on a benign trajectory, that would open space for a reduction in interest rates should the central bank decide to follow that path," Mantega said. "But we will have to wait and see how inflation behaves next year."


Brazil Stocks Close Lower Wednesday
Brazilian stocks closed lower Wednesday on speculation that interest rate increases at home will stifle growth as trade partner China threatens to cool its own economy.

The benchmark Ibovespa stock index closed at 68,174 points, down 1.7% from Tuesday's close of 69,338.

Consumer prices in Latin America's biggest economy rose for a third consecutive month in November, cementing bets the central bank will raise rates by the beginning of next year.

Some, such as RBS Securities economist Zeina Latif, expect the bank to act "promptly," possibly even anticipating the entry of Alexandre Tombini as the central bank's new governor next year, by raising rates when the monetary policy committee ends its meeting Wednesday.

  "The deterioration of current and expected inflation, coupled with the continued strength of domestic demand and further labor market tightening, is enough to require monetary policy constraint," Banco Santander economist Tatiana Pinheiro wrote in a note. "In this sense, the beginning of the monetary tightening cycle in December would be good news for price stability ahead."

In China, Brazil's biggest trade partner, investors are on the lookout for interest rate increases amid rising inflationary pressures.

  In a front-page report, the China Securities Journal said Tuesday that the period around this weekend offered a window for China to raise rates, given that Beijing is scheduled to release a slew of economic indicators, including the inflation data for November, next week.

  Most Brazilian blue chips dropped in Wednesday trading.

  Vale SA (VALE5.BR, VALE), the world's biggest iron-ore producer, fell 1.9% to BRL49.25. Government-controlled energy giant Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, slumped 1.4% to BRL25.  Usinas Siderurgicas de Minas Gerais (USIM5.BR, USNZY), Brazil's biggest maker of flat steel for the automotive industry, dropped 2.1% to BRL19, while rival Cia. Siderurgica Nacional (CSNA3.BR, SID) declined 1.4% to BRL27.13. Telephone giant Tele Norte Leste SA (TNE, TNLP4.BR), or Oi, slipped 1.6% to BRL23.93.  Minas Gerais utility Cemig (CIG, CMIG4.BR) retreated 1.5% to BRL28.50.  Aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ, EMBR3.BR), or Embraer, climbed 1.3% to BRL12.36.
 

At the market open Brazilian stocks opened lower Wednesday on speculation interest rate increases at home will stifle growth as trade partner China threatens to cool its own economy.

The benchmark Ibovespa stock index opened at 69,033 points, down 0.44% from Tuesday's close of 69,338.

Consumer prices in Latin America's biggest economy rose for a third consecutive month in November, cementing bets the central bank will raise rates by the beginning of next year.

Most Brazilian blue chips dropped in early trading.

  Vale SA (VALE5.BR, VALE), the world's biggest iron-ore producer, fell 0.3% to BRL49.91.   Government-controlled energy giant Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, was little changed at BRL25.33. Usinas Siderurgicas de Minas Gerais (USIM5.BR, USNZY), Brazil's biggest maker of flat steel for the automotive industry, dropped 0.3% to BRL19.10, while rival Cia. Siderurgica Nacional (CSNA3.BR, SID) declined 0.3% to BRL27.18.  Telephone giant Tele Norte Leste SA (TNE, TNLP4.BR), or Oi, slipped less than 0.1% to BRL24.30.   Minas Gerais utility Cemig (CIG, CMIG4.BR) retreated 0.1% to BRL28.85.   Aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ, EMBR3.BR), or Embraer, fell 0.1% to BRL12.11.

Brazil's Central Bank Buys Dollars
The Brazilian Central Bank bought U.S. dollars at an auction Wednesday for BRL1.6835 to the dollar, the bank said.

Brazil's central bank has been purchasing dollars at near-daily spot market auctions since May 2009 to build foreign reserves after suspending such auctions in September 2008.


Brazil Stocks Close Lower Tuesday
The benchmark Ibovespa stocks index closed 0.3% lower at 69338, down from Monday's close at 69552. Trading volume was moderate to heavy at 6.01 billion Brazilian reais ($3.57 billion).

Local stocks got off to a booming start because of the market's positive expectations for a budget deal in recently rescued Ireland, which should cut government spending by EUR6 billion and raise taxes on the emerald isle.

In Brazil, markets also got a little insight into the mind of Alexandre Tombini, selected by President-elect Dilma Rousseff to lead the Brazilian central bank. Tombini pledged to keep a lid on inflation while working to reduce interest rates.

But investors trimmed positions ahead of the close, perhaps hedging bets ahead of the release of key economic indicators and the central bank's final meeting of the year.

The bank's Copom rate-setting panel, of which Tombini is a voting member, is expected to leave the Selic base interest rate steady at 10.75% Wednesday.

The bank, however, is expected to send the market a clear message about the future direction of rates, analysts and economists said. Interest rates are expected to start rising in January to counter rising inflation.

The Brazilian Census Bureau, or IBGE, also will release November inflation figures Wednesday. Third-quarter gross domestic product figures are due Thursday.

Consumer prices in Brazil have raised concerns, with many expecting November's official IPCA consumer price index to advance for a fourth-consecutive month. The rolling 12-month inflation rate jumped to 5.47% through mid-November, above the government's official year-end target of 4.5%.

Brazil's economy, meanwhile, is expected to continue showing booming growth in the third quarter. GDP is expected to surge to an annual rate of 6.7% in the third quarter, according to a survey of 14 economists polled by Dow Jones Newswires. Many economists expect Latin America's largest economy to end 2010 with growth of 7.5%.

Higher base metals prices on the London Metals Exchange, including an intraday record for copper prices, boosted shares of mining giant Vale SA (VALE, VALE5.BR). Vale closed 0.5% higher at BRL50.45.

Lower international oil prices, however, undercut shares of state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras. Petrobras shares ended 1.6% lower at BRL25.45.

  Independent driller OGX Petroleo e Participacoes (OGXP3.BR) climbed 1.1% to BRL19.96.

Steel makers were broadly higher in a bit of bargain-hunting, analysts said. The sector has been battered in recent weeks amid poor pricing power and elevated stocks. Shares of integrated steelmaker CSN (SID) added 0.9% to BRL27.66, while flat steel maker Usiminas (USIM5.BR) ended 0.8% higher at BRL19.60. Long steel giant Gerdau (GGB) was among the day's biggest gainers, surging 2.7% to BRL21.89.

Among the day's biggest losers were brewer AmBev (ABV, AMBV4.BR), which lost 1.4% to close at BRL234.06. Cosmetics maker Natura (NATU3.BR) slid 2.0% to BRL47.81, while retailer Lojas Renner (LREN3.BR) lost 2.4% to BRL57.86.

Brazil Stocks Close Lower Monday

Brazil's benchmark Ibovespa stocks index closed 0.31% lower at 69,552 points. Volume was moderate at 4.65 billion Brazilian reais ($2.77 billion).

investors are increasingly convinced the Brazilian Central Bank will have to raise interest rates as early as January to hold back rising inflation.

Brazil's official inflation rate is currently 5.5%, well above the government's 2010 target of 4.5%. The next official inflation data is due for release Wednesday and may show another advance in the 12-month rate.

According to economists at Sao Paulo's Banco Safra, the central bank will likely begin rate increases in January. The central bank's Selic base rate is already a towering 10.75%. Safra economists are forecasting 1.5 percentage points in total rate increases during the first half of 2011.

Higher interest rates will tend to siphon investment money away from stocks and toward fixed-income investments.

The Brazilian Stock Exchange released its report Monday on November performance. The figures showed a decline in average daily volume to BRL6.31 billion from BRL7.77 billion in October. The Ibovespa index ended November at 67,705 points for a loss on the month of 4.2%.

Foreign investors led volume in November and tended to buy into the market for the long term, traders said. Foreign investors were responsible for 34% of volume in November.

Blue Chips Were Mixed At The Close.

State oil company Petrobras (PBR, PETR4.BR) advanced 0.16% to close at BRL25.86 and mining company major Vale SA (VALE, VALE5.BR) saw its shares rise 0.28% to BRL50.23, but real estate giant Gafisa (GFSA3.BR) retreated 0.14% to BRL11.88.

Steel maker Usiminas (USIM5.BR, USNZY) rose 3.57% to close at BRL19.45, but aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ, EMBR3.BR), or Embraer, was a loser, dropping 0.13% to close at BRL12.27.And Minas Gerais utility Cemig (CMIG4.BR) gave up 0.55% to close at BRL29.05.



Brazil Nov Farm Vehicle Sales Fall 11.2%
Farm vehicle sales in Brazil, the world's second-largest oil seeds and grains producer, tumbled 11.2% to 4,700 units in November compared with a year earlier, the Brazilian Motor Vehicle Manufacturers Association, or Anfavea, said Monday. November sales were also down 19.1% from October, the trade association Anfavea said.

Production of farm vehicles rose 1% to 7,332 units last month from the year-earlier November. Production of farm vehicles rose 40.9% to 84,646 units for the first 11 months of this year compared with the same period in 2009, according to Anfavea.

Brazil's Vale To Start Trading In Hong Kong
Brazilian mining giant Vale SA (VALE, VALE5.BR) said it will start trading shares on the Hong Kong stock exchange this week to boost its visibility in Asian markets. Vale decided to list Hong Kong depositary receipts to allow investors the option to trade Vale shares in various time zones.

MEXICO:

FRIDAY STOCKS EDGE HIGHER FRIDAY

Mexican shares recovered from early session losses to post gains Friday, aided by an uptick in U.S. shares as economic data hinted at better days to come.

The IPC index of Mexico's 35 leading shares advanced 0.3% to 37678 on volume of 5.55 billion pesos ($446 million), with 15 of the index's components rising to positive territory. The Dow Jones Industrial Average closed Friday up 0.4%.

The index had touched an intraday high on Tuesday of 38119, above the 38000 year-end target that many analysts have for it. Year-to-date, the IPC is up nearly 17%, and many local market participants are still hoping for a late-year, rally.

In local economic news, gross fixed investment in Mexico grew 6.8% in September from a year earlier, its fastest annual expansion in two years. The Mexican data are a good omen as analysts look for signs of internal economic activity picking up the slack from a slowing export sector.

The peso strengthened modestly to close at 12.4520 to the dollar, compared with MXN12.4800 in morning trade and MXN12.4845 at the close Thursday.

Among Mexican stock gainers, wireless carrier and market benchmark America Movil rose 1% to MXN35.37, mining firm Grupo Mexico jumped 2.2% to MXN47.93 on strong copper prices and pharmaceuticals company Genomma Lab added 0.7% to MXN29.90.

Genomma Lab said Friday it anticipates an Ebitda margin of 25.5% in 2011 on sales growth compared with 2010 in the range of 30% to 32%, aided by a string of recent acquisitions. Genomma Lab has purchased more than a dozen brands since its 2008 initial public offering.

The company reported net sales of MXN4.12 billion in the first nine months of this year, 49% higher than in the like-2009 period, and an Ebitda margin of 22.8%.

Among Friday's stock decliners, beverage and retail group Femsa retreated 0.4% to MXN69.70, construction firm ICA pulled back 1.3% to MXN32.28 and cement group Cemex fell 1.2% to MXN12.25.

Cemex said late Thursday that the European Commission has decided to initiate formal proceedings against Cemex and seven other cement companies due to possible anticompetitive practices in 10 European countries.

Europe's major cement makers in 1994 were fined 248 million euros ($322 million) for running a cement cartel. The amount of the fine was reduced to 140 million euros after the companies won an appeal in 2004.

Cemex said the EC told the Mexican firm that initiating proceedings "does not imply that the Commission has conclusive proof of the infringements but merely signifies that the Commission will deal with the case as a matter of priority."

Mexican brokerage Ixe reported that homebuilder Urbi held an investor day Friday. The company told analysts that it expects to close the year with 10% sales growth over 2009, an Ebitda margin above 27% and net profit margin above 13%, Ixe said. For 2011, Urbi guided analysts toward 12%-14% sales growth and profit and Ebitda margins similar to those it forecasts for this year. Urbi shares dropped 1.2% to MXN28.36 in Friday trade.


In morning trading, Mexican shares were edging lower Friday, pulling further away from their recent record gains.  Around 10:30 a.m. ET, the IPC index of Mexico's 35 leading shares was down 0.4% at 37402 on volume of 843 million pesos ($68 million), with 23 of the index's components in negative territory.


Mexico's Stocks Close Lower Thursday
Mexican shares pared back some of their intraday losses late Thursday, but still closed lower as the investment mood soured in the U.S.

The IPC index of Mexico's 35 leading shares shed 50 points, or 0.1%, to close at 37567, with 21 of the index's components in the red. Earlier in the session, however, the index was down as much as 164 points. Volume was healthy with 5.41 billion pesos ($434 million) changing hands.

The IPC touched an intraday high Tuesday of 38119, above the 38000 year-end target that any analysts have for the index. Year-to-date, the IPC is up more than 17%.  "The excess of international capital is still searching for opportunities, so it's likely that the IPC will have another rally after having consolidated its recent gains," Mexican research firm MetAnalisis said in a morning note.

Among Mexican blue chips, wireless communications carrier and market benchmark America Movil fell 1% to MXN35.02, cement maker Cemex gained 0.9% to MXN12.40, copper miner Grupo Mexico rose 0.4% to MXN46.88 and retailer Walmex dipped 0.2% to MXN35.

Walmex, Mexico's largest retailer, reported disappointing November sales data this week that prompted analysts to question the company's pricing strategy and the pace of the consumer spending recovery in Mexico.

In local economic news, the central bank reported that Mexico's monthly inflation accelerated in November to the fastest clip since January but fell slightly short of analysts' expectations, as widely-expected price increases for electricity and fresh produce materialized.

The consumer price index rose 0.8% in November from October, pushing the rate of price increases over the past year up to 4.32% from 4.02% at the end of October. The peso weakened against the dollar to close at MXN12.4845 versus MXN12.4540 in early trade and MXN12.4120 at the close Wednesday.

Mexico Stocks Decline Wednesday

Mexican stocks closed lower Wednesday as profit-taking took back some of the bourse's recent stellar gains, including a record high close in the prior session.

The IPC of Mexico's 35 leading shares trimmed 0.7% to 37618 on tepid volume of 4.69 billion pesos ($378 million). The index touched a new intraday high in the prior session of 38119, before investors began consolidating gains for issuers that appear overbought.

Year-to-date, the IPC is up more than 17%, making it one of the world's top-performing stock indexes for 2010.

Among specific shares, wireless communications firm and market benchmark America Movil dropped 0.8% to MXN35.36, while copper miner Grupo Mexico advanced 0.3% to MXN46.71 on record copper prices, and retailer Walmex fell 1.1% to MXN35.06 following a weak sales report.

Mexican consumer confidence slipped for a second consecutive month in November, mainly as expectations for the country's economic situation became less optimistic.

Mexican shares were losing ground early Wednesday as investors took profits on recent heady gains and U.S. shares struggled to advance.

Around 10:30 a.m. EST, the IPC of Mexico's 35 leading shares was down 0.6% to 37665 on thin volume of 770 million pesos ($62 million). The index touched a new intraday high in the prior session, of 38119, before investors began consolidating gains as some issuers appeared overbought.

Year-to-date, the IPC is up more than 17%, making it one of the world's top-performing stock indexes for 2010.

Wireless communications firm and market benchmark America Movil was off 0.6% to MXN35.42 in early trade while copper miner Grupo Mexico dipped 0.7% to MXN46.27 and retailer Walmex fell 1% to MXN35.11.

Walmex's November sales data, released Tuesday, disappointed. Mexico's top retailer said same-store sales expanded 0.5% from the year-ago month, well below a market consensus estimate of 2% growth.

Analysts with Credit Suisse attributed the weak showing to the negative impact of the last payday of the month taking place on a Wednesday, likely leading some transactions to be postponed until the first weekend of December. 

The Mexican peso was strengthening against the dollar to MXN12.4270 from MXN12.4980 at the prior session's close, when the Mexican currency depreciated more against the dollar than any other Latin American currency. Local banks expect the peso to end this year at MXN12.30 and finish 2011 at MXN12.40, according to median estimates in a survey published every two weeks by local Citigroup unit Banamex, the latest of which came out Tuesday.

Mexico Stocks Edge Higher Tuesday
Mexican stocks are higher early Tuesday, adding to their record gains.
At about 10:45 a.m. EST, the IPC index of Mexico's 35 leading issues was advancing 0.6% to 37952 on hearty volume of 1.44 billion pesos ($116 million). At these levels, the index is now up 18% on the year.

Wireless-communications provider and market benchmark America Movil was edging up 0.2% to MXN35.65, cement maker Cemex was rallying 1.1% to MXN12.39, and mining interest Grupo Mexico was surging 2.4% to MXN46.43 as copper hit a record high.

Also Tuesday, Ferrovalle, a rail line partly owned by Grupo Mexico, was working to free two cargo trains that derailed Monday, obstructing cargo traffic and a commuter line in Mexico State.

The peso was lagging Tuesday, trading at 12.3815 to the dollar compared with MXN12.3700 at Monday's close.

Mexico Stocks Move Higher Monday
Mexican stocks were moving higher early Monday in an attempt to shrug off the worries about the U.S. and European economies that were weighing on markets

The IPC index of Mexico's 35 leading shares was ahead 0.3% to 37,500 on volume of 785 million pesos ($63.5 million).

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%. The peso was trading weaker against the U.S. dollar at MXN12.3770 versus 12.3380 at Friday's close.

Wireless communications provider and market bellwether America Movil was up 0.2% to MXN35.41, cement maker Cemex was 2% higher at MXN12.21 and retailer Walmex was up 0.9% at MXN35.11.

CHILE:

WEDNESDAY:

All markets, businesses and government offices in Chile will be closed Wednesday for a religious holiday.


CHILE'S STOCKS RISE TUESDAY
Chile's blue-chip Ipsa index ended higher Tuesday, tracking rising U.S. markets and as select shares gained on positive forecasts for future growth

The IPSA ended 0.5% higher at 4989.05, while market volume grew to 125.6 billion Chilean pesos ($263.6 million), compared to CLP79.9 billion the prior session.

All markets, businesses and government offices in Chile will be closed Wednesday for a religious holiday.

As several of the Ipsa's heavier-weighted shares also trade in New York, the IPSA often tracks the Dow Jones Industrial Average. The DJIA recently rose 0.6% to 11427 as investors applauded an agreement between President Barack Obama and Republican leaders in Congress that would extend the Bush-era income tax cuts for two years.

Among dually listed shares, specialty chemical and fertilizer producer SQM's (SQM) more liquid B-series shares (SQM-B.SN) jumped 1.8% to CLP26,400.00 on forecasts for continued strong growth.

"SQM is rising on the back of expectations that prices for fertilizer products will continue to rise on strong demand," said Rodrigo Arriagada, trader with local brokerage Molina y Swett.

Construction and real estate companies were again among the strongest component on the Ipsa, as expectations are for the sector to reap the benefits from a ramp-up of post-earthquake reconstruction activities.

Within the sector, construction company Besalco (BESALCO.SN) gained 2.9% to CLP1,039.00, rival SalfaCorp (SALFACORP.SN) jumped 4.5% to CLP1,780.00, and real-estate developer Socovesa (SOCOVESA.SN) climbed 4.8% to CLP413.00.

Local investment bank and brokerage LarrainVial recently increased SalfaCorp's year-end 2011 target price to CLP1,900 a share, from CLP1,500 a share.

Also gaining, retail holding giant Cencosud (CENCOSUD.SN) rose 1.4% to CLP3,683.90 after it became the only Latin American retailer to have an investment-grade rating. Moody's Investors Service and Fitch Ratings recently gave the retail holding giant Baa3 and BBB- ratings, respectively.

The peso closed stronger versus the dollar, hitting a 31-month high in intraday trading before paring back some of its earlier gains, as international copper prices hit a record and intraday high in nominal terms. The peso ended at CLP476.80 to the dollar, versus the prior session's close of CLP478.70, while trading in a range of CLP475.00 to CLP477.40.

In the bond market, yields on inflation-indexed Chilean central bank bonds, or BCUs, ended mixed after November's consumer-price-index rose 0.1% from the previous month, in line with expectations.

The yield on five-year BCU bonds ended at 2.69%, from 2.71% on Monday, while the yield on 10-year BCUs closed unchanged for a second straight session at 2.87%.

Chile November Copper Exports Rise To $3.84B

The value of Chile's copper exports in November rose to $3.84 billion from $2.90 billion a year earlier, the central bank said Tuesday.

The year-on-year increase was due to the higher copper prices on international markets. Chile is the world's largest copper producer and exporter.

Chile's overall mining exports, including molybdenum, iron, silver, iodine and lithium, increased to $4.26 billion in November from $3.12 billion a year earlier.

According to state copper commission Cochilco, spot copper prices averaged $3.84 a pound on the London Metal Exchange in November, surpassing the $3.03 a pound the metal averaged the same month last year. In January-November, prices averaged $3.35 a pound, compared with $2.68 a pound for the same period in 2009.

Accumulated copper exports for the first 11 months of the year rose to $34.78 billion from $24.22 billion in the same period of 2009, while overall mining exports increased to $38.33 billion from $26.92 billion during the same period last year.

Chile is the world's largest copper producer, accounting for about a third of global production. It is also one of the world's biggest producers of iodine, lithium and molybdenum.

Chile's November CPI Gains 0.1%
Chile's consumer price index in November rose in line with a consensus of analysts due to higher housing, water, electricity, gas and fuel costs, the government statistics institute reported Tuesday.The INE's new CPI includes nationwide pricing. 

The CPI increased 0.1% in November from the previous month, in line with the median estimate of a 0.1% increase.  Estimates ranged from increases of 0.1% to 0.2%.The core CPI fell 0.1% from the previous month. For the 11-month period, core CPI, which factors out volatile fresh produce and fuel prices, rose 2.2% on the year. 

For the January-November period, the CPI has gained 2.9%, said the institute, known locally as the INE.Both January-November inflation and 12-month referential inflation are getting closer to the central bank's inflation target of 3%, plus/minus one percentage point in a 24-month policy horizon.

Chile Stocks End Lower Monday

Chile's blue-chip Ipsa index ended lower Monday as economic activity data came in below expectations and as U.S. markets flitted in and out of the red.

After paring back its losses late in the session, the Ipsa ended 0.1% lower at 4963.15, while market volume grew to 79.9 billion Chilean pesos ($167 million), compared to CLP71.4 billion the prior session.

Power generator Endesa fell 1.2% to CLP905.50; its parent company, energy holding company Enersis lost 1.1% to CLP227.02; and flagship carrier LAN Airlines shed 0.8% to CLP15,150.

Also declining, holding company Cruzados SADP, which manages the Universidad Catolica soccer team, dropped 16.7% to CLP257 as investors booked profits after the sports team became national champions after a five-year dry spell. Cruzados, which isn't on the Ipsa, had seen its shares soar 30.7% over the last seven days as the soccer team qualified for the championship game.

Construction and real estate companies were the strongest component on the Ipsa, as expectations are for the sector to benefit from a ramp-up of post-earthquake reconstruction activities.

Within the sector, construction company Besalco gained 2% to CLP1,010, rival SalfaCorp jumped 4.5% to CLP1,703.50 and real-estate developer Socovesa climbed 2.8% to CLP394.01.

The sector got a boost after local investment bank and brokerage LarrainVial increased SalfaCorp's year-end 2011 target price to CLP1,900 a share, from CLP1,500 a share.

The peso ended stronger against the dollar, inching toward a 31-month high, as international copper prices steadied at the $4-a-pound level. The peso ended at CLP478.70 to the dollar compared to Friday's close of CLP479.50 after trading in a range of CLP478.15 to CLP482.


Chile New Car, Light Truck Sales Nearly Double On-Year

Sales of new automobiles and light trucks in Chile for the January through October period this year have nearly doubled to 258,533 units, the country's Anac automotive association said Monday. During the same period in 2009, sales totaled 132,718 units.

With Chile quickly recovering from last year's recession--its first in a decade--and a devastating February earthquake, by the end of August the country had surpassed the total number of units sold in 2009 with 173,514.

"With these numbers, we'll start to see the stock of brand [names] get back to normal levels, and the figures also confirm the market's growth, which we've seen since April this year," Anac General-Secretary Gustavo Castellanos said.

For the month of October, sales of new automobiles and light trucks surged 67% to 30,061 units from the comparative year-ago period, the automotive association said.

Anac sees sales growing to 280,000 units in 2010 and to 320,000 units in 2011. It previously expected sales of 260,000 units for the year, compared with sales of 172,044 for 2009, but increased its outlook on Chile's fast-paced recovery and robust domestic demand.

Chile's gross domestic product grew a slight 1.6% on the year in the first quarter, hurt by the devastating 8.8-magnitude February earthquake. GDP recovered to 6.6% and 7% growth in the second and third quarters, respectively, on reconstruction efforts and increased investments.

ARGENTINA:
FRIDAY:

Argentina's Stocks Rise Friday

Argentine stocks ended the week with moderate gains. The Merval Index of leading shares added 0.7% to close at 3,390.87 points. Volume was moderate at ARS63 million ($16 million). However, the Merval ended the week 0.9% lower after losses spurred by profit-taking on Thursday.

On Friday, the local market tracked shares in New York, which edged higher on a surge in U.S. October exports and brightening consumer sentiment. However, the gains were tempered after China's central bank said it will raise banks' reserve requirement ratio, thus reducing the amount of money China's banks have to lend.

In Buenos Aires, the gains were led by Petrobras Argentina SA (PESA),  which rose 3.4% to ARS9.41. It is the local unit of Brazilian oil giant Petrobras (PBR).

Argentina's largest power company, Pampa Energia SA (PAMP), said late Thursday that it has partnered with Petrobras Argentina to develop a gas field in the province of Neuquen that will guarantee the fuel supply of its massive Loma de la Lata electricity generation plant.

The two companies have entered into an agreement to develop the El Mangrullo field, under which Pampa Energia will acquire rights to 43% of the hydrocarbons produced at the field in exchange for investing $16 million to drill wells.

Pampa Energia and Petrobras Argentina expect to obtain total natural gas production of 400,000 cubic meters a day from the wells, according to Pampa Energia.  Pampa Energy's shares ended Friday 1.5% lower at ARS2.67.

The peso gained ground against the dollar Friday, as exporters kept pumping dollars into the exchange market. The peso strengthened to 3.975 to the dollar from 3.978. As usual, the Central Bank stepped in to prevent a further strengthening of the peso, buying $40 million during a day when total volume totaled $335 million, local brokerage Puente said in a market note.

Bonds were little changed on Friday, posting mixed results. The peso-denominated 2033 discount bond edged 0.03% higher in price terms to ARS183.75, to yield 7.21%. The dollar-denominated Global 2017 slipped 0.61% in price terms to ARS407.50, with the yield at 8.49%.

Thursday:

ARGENTINA INCREASES WHEAT PRODUCTION

Argentine Exchange Raises Wheat Estimate To 13M Tons

Higher-than-expected yields in Argentina's wheat crop have increased production expectations by 300,000 metric tons to 13 million tons, the Buenos Aires Cereals Exchange said in its weekly crop report Thursday. So far, about a quarter of the crop has been harvested, with output seen rising almost 40% from last season, the exchange said.

The exchange also pegged sunflower seed area at 1.73 million hectares, with planting all but complete. Recent showers in the main sunflower seed areas allowed farmers to finish much of the remaining planting and conditions are generally good, the exchange said.

The exchange's soybean forecast was held at 18.7 million hectares, with almost two-thirds of the crop planted to date. Dryer conditions starting in November have slowed planting somewhat, with the pace down about six percentage points from that of last season, the exchange said.

The exchange also held its corn forecast at 3.15 million hectares, with about 83% of the crop seeded so far. While much of the crop is in good shape, dry weather is affecting the developing corn plants in a number of areas, which will likely affect yields, according to the exchange.


Argentina Stocks Hit New Record High Monday
Argentina's stocks closed at a record high and bonds logged modest gains on Monday. The benchmark Merval index rose 1.2% to close at 3462.76 points. Volume totaled 66.5 million pesos ($16.7 million).

Shares of electricity distribution firm Edenor (EDN, EDN.BA) rose 3.9% to ARS2.90; shares of telecommunications firm Telecom Argentina (TEO, TECO2) rose 2.5% to ARS20.30; and shares of banking concern Grupo Financiero Galicia (GGAL, GGAL.BA) closed 1.2% higher at ARS6.65.

Barclay's Capital said in a report Monday that it has started coverage of Telecom Argentina's shares with an overweight rating and price target of $29 per American depository receipt. Telecom Argentina's ADRs closed at $25.31 in New York.

Turnover on the local bond market was ARS587.7 billion, equivalent to nearly 77% of the total volume of securities traded on the Buenos Aires Stock Exchange during the session.

Argentina's government on Monday offered investors the opportunity to swap their holdings of defaulted Brady Bonds for a basket of U.S. dollar-denominated Argentine bonds as well as a cash payment. Argentina is seeking to retire $262.9 million in U.S. dollar bonds maturing in 2023, as well as EUR54.2 million in Deutsche Mark bonds also maturing that same year.

Investors who tender their Brady Bonds will receive a combination of Argentina's U.S. dollar-denominated 2033 discount bonds, Global 2017 bonds, 2035 GDP Warrants and a cash payment. The peso-denominated 2033 discount bond closed 0.3% higher at ARS186, yielding 7.09%. The Bogar 2018 closed up 0.2% at ARS227.15, yielding 5.80%.

The Boden 2015, considered a good proxy for measuring the appeal of newly issued government bonds or the government's ability to sell them, rose 0.7% to ARS377.50, yielding 8.86%.

The Global 2017 bond, issued in June as part of the government's debt swap with the holders of defaulted bonds, closed 0.7% higher at ARS411, yielding 8.3%.

Argentina's 2035 peso-denominated GDP warrants rose 1.1% to ARS13.58, while U.S. dollar-denominated GDP warrants with the same maturity closed 1.3% higher at ARS56.

The peso was quoted closing in interbank markets at ARS3.98 to the U.S. dollar, unchanged from Friday.


PERU:

Peru's Stock Indexes End Higher Friday

Peru's main stock market ended higher Friday as key stocks were boosted by international market gains despite softer metals prices.

The Lima Stock Exchange's broad General index was up 0.16% to close at 21843.42. The Selective blue-chip index rose 0.02%, closing at 30467.07. The mining subindex rose 0.27%.

Gaining were industrial stocks including brewer and beverage producer Union de Cervecerias Peruanas Backus & Johnston SAA (BACKUSI1.VL), which rose 1.79% to close at 5.70 soles ($2.03). Leading cement producer, Cementos Lima (CEMTY, CEMLIMC1) was up by 1.08% to close at PEN4.70.

Also gaining ground despite lower metals prices was miner Southern Copper Corp. (SCCO, SCCO.VL), up 1.75% to close at $46.60.

Most mining stocks were lower, however, with precious metals miner Compania de Minas Buenaventura SAA (BVN, BUENAVC1) down 2.86% to close at $49.25 and Sociedad Minera Cerro Verde SAA (CVERDEC1.VL) down 1.05% to close at $47.

The sol ended slightly weaker at PEN2.828 per dollar. In the previous session the sol closed at PEN2.824.

Peru's Central Bank Says Oct Trade Surplus At $424 Mln

Peru posted a trade surplus of $424 million in October, and an accumulated January to October trade surplus of $4.99 billion, the Central Reserve Bank of Peru's chief economist, Adrian Armas, said Friday in a conference call with reporters.

In October 2009, Peru posted a trade surplus of $573.6 million. For 2009, Peru posted a trade surplus of $5.87 billion.


  VENEZUELA:

Venezuela November Oil Output 
Falls To 2.19 Million Barrels/Day

Venezuela's crude output in November was 2.19 million barrels a day, its lowest level this year and slightly under the previous month's 2.21 million barrels a day, the International Energy Agency said Friday.

Oil production in Venezuela is a matter of frequent debate. The government claims output is about 2.9 million barrels of crude a day, which is much higher than the monthly figures reported by the IEA and others such as the Organization of Petroleum Exporting Countries.

Venezuela says it will boost production capacity in the coming years through the further development of its oil-rich Orinoco region, and say overall capacity by 2020 could be around 6 million barrels a day.

The IEA says Venezuela's production capacity in 2015 is likely to be 2.62 million barrels a day, not much higher than this year's production capacity of 2.42 million barrels a day.

____________________________________________________________
European Markets:



FRIDAY: 

IMF: To Postpone Board Vote On Irish Bailout

The board of the International Monetary Fund will delay a vote on the IMF's EUR22.5 billion portion of a European bailout for Ireland, a spokesman said Friday.

The vote--originally expected Friday--was postponed to give the Irish parliament time to consider the joint emergency funding package.

With the parliamentary vote scheduled for Dec. 15, and assuming parliamentary support, the IMF said its managing director could recommend approval of the Fund's portion of the loan to the board for a vote as soon as Dec. 16.

"The authorities have informed us that while parliamentary approval of the E.U.-IMF support package is not legally required, the Irish Government has put the motion before parliament to strengthen political support for the agreement," an IMF spokesman said.

"We welcome the first implementation measures of the 2011 budget--stipulating the fiscal consolidation path and important reform measures involved in the program--have recently been passed by the Irish Parliament, confirming Ireland's strong commitment to the program and the policies involved," the spokesman said.


THURSDAY: EURO STOXX 50  2,837.59  +18.64 (0.66%)

European Stocks Close Slightly Higher Thursday
The Stoxx Europe 600 index ended up 0.3% at 275.93. The U.K.'s FTSE 100 closed up 0.2% at 5808.0, Germany's DAX slipped 0.2% to 6964.16, and France's CAC-40 closed 0.7% higher at 3858.05. By 1650 GMT, the Dow Jones Industrials Average was down 0.3% at 11333.43. In Europe, volumes were low and news flow was light.
The euro closed down 0.5% at $1.3193, and the British pound declined 0.4% to $1.5736.

As the European markets drew to a close, the European Central Bank released its semiannual Financial Stability Review. It said if governments' fiscal-consolidation efforts start to slide, an "unsustainable debt spiral" could be on the cards. This will likely be food for thought for the start of Friday's European session.

Also on Friday, investors will be looking forward to U.K. PPI for November at 0930 GMT.
Early in Europe, France's CAC-40 was up 0.7 per cent at 3,858.85 and Germany's DAX rose 0.5 per cent to 7,013.24. Britain's FTSE 100 gained 0.6 per cent to 5,831.16.


WEDNESDAY: The Stoxx Europe 600 index ended up 0.4% at 275.0. The passing of the Irish austerity budget late Tuesday helped sentiment somewhat, but the session was choppy overall. The U.K.'s FTSE 100 closed down 0.2% at 5794.53, Germany's DAX slipped 0.4% to 6975.87 but France's CAC-40 closed 0.6% higher at 3832.0.

In Dublin, the ISEQ index rose 1%. Spain's IBEX 35 climbed 1.6% and Italy's FTSE MIB gained 1.4%. Greece's ASE Composite declined 0.7%, however, amid a public transport strike in Athens. 

By the close of European equity markets, most actively traded gold for February delivery on the Comex division of the New York Mercantile Exchange fell $27.30 per ounce, or 1.9%, to $1381.70, dragged lower after bond yields soared.

In Early market trading Wednesday, European markets recorded broad gains, pushing the Stoxx Europe 600 index up 0.7% in intraday trading.


TUESDAY: 

Spot Gold Steady Tuesday, Supported For Further Gains
Spot gold is trading just below its new record high in Europe Tuesday and, supported by uncertainty around the euro zone debt situation and talk of possible further easing of U.S. monetary policy, market participants tip further gains for the yellow metal.

MONDAY: EURO STOXX 50     2,761.61
Europe's major indexes ended either flat or mildly higher. The Stoxx Europe 600 index ended up 0.2% at 271.38, while the U.K.'s FTSE 100 index gained 0.4% to 5770.28. Germany's DAX index rose 0.1% to 6954.38, and France's CAC-40 index closed flat at 3749.23.

Late in Europe, the euro was at $1.3295, from $1.3411 late Friday in New York. The dollar was at 82.68 yen, little changed from Friday's late level of 82.71 yen.

The December futures contract for gold on the Comex division of the New York Mercantile Exchange was up 0.9% at $1,418.10 per troy ounce. In mid-afternoon trade in New York, light, sweet crude for January delivery was largely flat at $89.14 a barrel. 

Despite Monday's gains, much of the mood was hampered by the worries surrounding indebted euro-zone nations, with many casting their eyes on the Irish government, as the country prepares to vote on its budget Tuesday. Commodity stocks helped pull European stock markets off their lows Monday. Mining, oil and gas shares rose on hopes that additional stimulus would devalue the dollar, which in turn would push commodity prices higher. 

Europe’s finance ministers are meeting today in Brussels after Belgian Finance Minister Didier Reynders said on Dec. 4 the region’s bailout fund could be increased to stem contagion from the sovereign crisis. European Union leaders are meeting in Brussels to discuss whether their EUR750 billion euro ($1.01 trillion) rescue fund might need to be increased.  

Credit rating agency Moody's Investors Service downgraded Hungary's government bond ratings by two notches,, citing concerns about fiscal sustainability. The move kept the country in investment-grade territory but maintained its negative rating outlook.

LONDON:

London Stocks Mixed Friday
FTSE 100                 5812.95    +4.99   +0.09%
FTSE 250                11280.96    +17.58  +0.16%
DJ UK Smaller Companies   948.49    +4.20   +0.44%

UK November CPI Seen Remains Above 3%
With commodity prices still high, U.K. consumer price inflation is set to remain elevated in November. But the pace of the monthly rise should be slower than that reported in October as holiday promotions get under way.

UK November Factory Gate Prices Rise Less Than Expected
U.K. annual factory-gate price inflation eased unexpectedly in November due to a smaller year-on-year increase in petroleum prices, the Office for National Statistics said Friday.

UK Petrol Prices Reach Record
Average Fuel Price Chart Jan 2009-Dec 2010
 


Petrol prices have hit a record average level of 121.76p for a litre of unleaded petrol, according to the monitors Experian Catalist.  It is expected that fuel prices will rise further in January once increased fuel duties and the higher VAT rate come into play.

Experian Catalist estimates that higher VAT will add 2.5p and fuel duties will add a further 1p a litre to prices.  The diesel price of 125.73p a litre is 8p away from its record of July 2008. The records referred to do not take account of inflation.

AA president Edmund King said the record high petrol prices were up due to disrupting fuel deliveries. The price of oil - currently at about US$88 a barrel - has been trading at its highest level for this year and is also putting pressure on fuel prices.

The AA said the record fuel prices meant motorists would have to pay an average of almost £6 more to fill an average tank compared with the start of the year.


Anglo American Gets Key License For Minas-Rio Iron Ore Project Mining company Anglo American PLC (AAL) said Friday it received a key license for the development of its Minas-Rio iron ore project in Brazil, clearing the way for it to begin construction of the mine site in March next year.

UK Move On University Fee Boost Sparks Major Protests

The U.K.'s coalition government narrowly won a vote to raise the cap on tuition fees, a key political victory that came against a backdrop of large-scale student protests outside Parliament and an attack on the Prince of Wales's car.

Rolls Royce Engine Fire Costs May Be As High As $500M

Rolls-Royce Group PLC (RR.LN) could face costs of $500 million over the next few years to deal with the consequences of an explosion last month in one of its Trent 900 engines, the Financial Times reports Friday, citing aviation experts.

=/////=

THURSDAY: FTSE 100  5,807.96   +13.43   (+0.23%)
London Stocks End Slightly Up, Financials Lead

FTSE 100                 5807.96   +13.43   +0.23%
FTSE 250                11263.38   +44.69   +0.40%
DJ UK Smaller Companies   879.67    -0.38   +0.04%


London's FTSE 100 finishes with mild gains, led higher by financials and banks. Although the index closes up, volumes are fairly low and the session has been rather directionless. The index hardly reacts after the Bank of England keeps the rate and its asset purchase program unchanged . IG Index notes though that the UK trade deficit disappoints.

The Bank of England keeps its lending rate at 0.5%.

The Bank of England's Monetary Policy Committee Thursday left its key interest rate and the stock of its bond purchases unchanged, and is unlikely to alter its policy for many months to come.

UK Bank Levy To Raise About GBP2.5B From 2012
The U.K.'s five major banks will each pay hundreds of millions of pounds to the U.K. government each year as a charge for their risks to the economy, under final draft legislation released Thursday.

UK Bk Levy Will Cost GBP788M In Next 2 Yrs Royal Bank of Scotland Group PLC (RBS) has estimated the new U.K. bank levy on large banks will cost it GBP788 million in the next two years.

BAE Plans To Ax More Than 1,300 UK Jobs
Defense giant BAE Systems PLC (BA.LN) Thursday said it plans to cut more than 1,300 jobs in the U.K. as the company outlined the impact of the government's defense review on its operations.

UK Moves To Ease Corporate Tax Burden
The U.K. government Thursday moved to ease the tax burden on British companies with overseas branches, setting out plans to allow them to exempt the profits of those branches from U.K. corporation tax, and also plans for new rules on the taxation of foreign subsidiaries that it hopes will stop more companies moving their headquarters abroad.

UK Halifax November House Prices -0.1% MM
U.K. house prices fell on the year in November, for the first time in 12 months, as more properties were advertised for sale but demand for the increasing number of available properties fell further, a survey reported Thursday.


WEDNESDAY:
London Stocks Ends Lower

FTSE 100                 5794.53   -13.92   -0.24%
FTSE 250                11218.69   -80.75   -0.71%
DJ UK Smaller Companies   940.84    -4.25   -0.45%
FTSE 100 finishes slightly lower. Strong CBI industrial trends dampens any hopes that the Bank of England will announce any further monetary easing measures at the Monetary Policy Committee meeting on Thursday.

U.K. Chancellor of the Exchequer George Osborne said Wednesday he wanted the Bank of England's Monetary Policy Committee to have maximum flexibility in its policy.

The Bank of England's Monetary Policy Committee is most likely to leave its key interest rate and bond purchases unchanged at its meeting ending Thursday, as it waits to see whether recent signs of economic strength can be sustained.

The U.K. economy is stabilizing as businesses become more confident about the country's outlook, but a contraction in growth is still possible in the first two quarters of next year, consulting firm BDO LLP said Wednesday.

U.K. shop price inflation dropped back in November for the first time since June as both food and non-food prices rose at a slower pace than in October, a survey shows Wednesday.

UK Industrial Output Expected To Pick Up

U.K. industrial output is expected to pick up in the three months from December, with export orders hitting their strongest level for more than 15 years, a survey by the Confederation of British Industry showed Wednesday.

Ivanhoe, Rio Agree On Financing

Canada-based Ivanhoe Mines Ltd (IVN.T) said Wednesday it has reached an agreement with global miner Rio Tinto PLC (RIO) to raise up to $6.5 billion in funds to develop the first phase of Mongolia's massive Oyu Tolgoi copper and gold deposit.

BP Considers Sale Of North Sea Assets

BP PLC is sounding out other energy companies about selling off North Sea assets worth $1 billion, as it seeks funds to pay for the Gulf of Mexico oil spill, according to a person familiar with the matter.

CSC Shares Fall

Shares in Capital Shopping Centres Group PLC (CSCG.LN) dropped Wednesday after analysts discounted the chances of Simon Property Group Inc. (SPG) making a bid for the group and blocking CSC's planned purchase of Manchester's Trafford Centre.




TUESDAY:
FTSE 100                 5808.45    +38.17   +0.66%
FTSE 250                11299.44   +148.09   +1.33%
DJ UK Smaller Companies   945.09     +4.68   +0.50%

London Stocks End Higher Tuesday

FTSE 100 ends up, hitting an intraday high of 5850.4, its highest point since November 10. Ireland's austerity budget brings some cheer to investors, who are relieved the country will finally be able to access a EUR67.5Bln financial aid package. Also, investors applaud the extension in the U.S. to the Bush-era income tax cuts.

Higher metal prices boost the miners, which dominate the upside. Tesco ends +2.4% on well-received results. "Backing up the bullish sentiment is the decent economic data being released and we saw that with strong UK manufacturing numbers today," adds Angus Campbell at Capital Spreads. 

On Wednesday, CBI industrial trends are at 1100 GMT.

UK Economy Seen Growing 0.6% In 3 Months To Nov

The U.K. economy continued to enjoy solid growth in the three months to November, economic research group, the National Institute of Economic and Social Research said Tuesday.

UK Oct Manufacturing Sees Another Robust Rise 

U.K. manufacturing output in October increased at its fastest monthly pace since March, the Office for National Statistics said Tuesday, underlining the sector's growing role in the country's economic recovery.

Nov Retail Sales Buoyed By Food, Clothing

U.K. retail sales rose at a similar pace in November from October boosted by food, clothing and footwear, although the increase again reflected higher food prices as well as extra sales of clothing ahead of the key December trading period, the British Retail Consortium retail sales survey showed Tuesday.

J Sainsbury, Tesco Market Shares Rise In 12 Weeks To Nov 28

The market share of the U.K.'s biggest retailer by sales, Tesco PLC (TSCO.LN), and the third-largest, J Sainsbury PLC (SBRY.LN), rose in the 12 weeks to Nov. 28, according to Kantar Worldpanel market share data Tuesday.

Tesco Leans On International Growth

Tesco PLC (TSCO.LN) will have to rely on international markets to fuel its strong sales growth as the U.K., its largest market, looks set to remain subdued well into 2011.

Admiral In Talks To Sell German Car Insurance Business  

U.K. car insurer Admiral Group PLC (ADM.LN) said Tuesday it is in exclusive talks to sell its loss-making AdmiralDirekt insurance business in Germany to German insurer Itzehoer Versicherung, signalling an exit after just three years in that market.

Xstrata: $1.3 Bln Platinum, Ferrochrome Projects Planned
Xstrata PLC (XTA.LN) is expanding its platinum and ferrochrome output through $1.3 billion worth of projects, the company's chief executive for alloys said Tuesday.

London Stocks End Up Monday

FTSE 100                 5770.28    +24.96    +0.43%
FTSE 250                11151.85    +69.18    +0.62%
DJ UK Smaller Companies   943.98     +8.17    +0.87%

FTSE 100 ends up near the highest levels of the day, with oil and gas stocks advancing on hopes the Federal Reserve may take some more steps to boost economic growth, after Ben Bernanke's comments on CBS television. BP +3.4%.  Xstrata ends +3.4%. On the downside, Vedanta Resources ends -2.2%, after UBS cuts its target price on the stock.

Tuesday's data plate includes UK industrial production at 0930 GMT. 

British supermarket giant Tesco fell 1.6% after it was downgraded to neutral from buy at UBS. The downgrade sent chills throughout the retail sector. New car sales in UK down 11.5 pct on the year in November, 5th straight decline. 

AstraZeneca's Brilinta Gets European Marketing Approval
AstraZeneca PLC (AZN.LN) said Monday that its experimental blood thinner Brilinta has received marketing approval in Europe after the orally administered drug won backing from regulators there in late September.

Vitol:To Market Tullow Share Of Ghana's Jubilee Oil Production Commodities trading house Vitol SA said Monday it has been awarded an exclusive contract to market Tullow Oil PLC's (TLW.LN) share of oil production from the Jubilee field offshore Ghana, which will start up next month.

Alternative Networks Full-Year Pretax Profit Climbs 30% 

U.K. business communications provider Alternative Networks PLC (AN.LN) Monday posted a 30% rise in full-year pretax profit as it gained mobile and fixed-line customers and boosted margins.

Alternative Networks Eyes Data Services Buys  

U.K. business communications provider Alternative Networks PLC (AN.LN) is weighing up acquisition targets in the data sector, as it aims to boost data services' share of group revenue to around one third, the firm's chief executive said Monday.

GERMANY:
MONDAY: Germany's DAX index rose 0.1% to 6954.38

On Monday, German Chancellor Angela Merkel said she sees no need for an increase of the size of the current financial safety net for troubled euro-zone member states. 

Metro declined 1.2% in Frankfurt.

FRANCE:
CAC 40     3,749.23 (-0.04%)

Carrefour fell 2.5% in Paris

FRANCE SIGNS NUCLEAR PACTS WITH INDIA
French President Nicolas Sarkozy announced he signed agreements that pave the way for France's sale of billions of dollars of nuclear reactors to India.

CONTINENTAL GUILTY IN CONCORDE CRASH
A French court has found Continental Airlines and one of its mechanics guilty of criminal wrongdoing in the crash of a supersonic Concorde jet outside Paris a decade ago.


IRELAND:
FRIDAY:Dublin Stocks: ISEQ Ends -0.5% At 2,832; AIB -12% 

IRELAND CUTS MINIMUM WAGE, MINISTERS' SALARIES
 Irish lawmakers pass legislation to lower the minimum wage and cut ministers' salaries and pensions for public sector workers, following the approval of the social welfare bill.


THURSDAY:

LABOR PARTY TO VOTE AGAINST

BANK BAILOUT

Ireland's Labor Party To Vote Against IMF/EU Bailout

Ireland's Labor Party on Thursday said its members would vote against the International Monetary Fund and European Union's EUR85 billion bailout package when the measure comes before parliament next week, Reuters reported on its website, citing a party spokeswoman.

   "Labour would vote against it because we consider it a bad deal," said the spokeswoman, who wasn't identified. According to Reuters Thursday.

 Read the full story at: www.reuters.com/article/idUSWLA043620101209  

IRISH PARTIES TO VOTE AGAINST BAILOUT PACKAGE

Ireland's Sinn Fein and Labour Party say they will vote against the country accepting a US$67.5 billion aid package from the European Union and International Monetary Fund next week.

IRELAND UNVEILS HARSH BUDGET
Irish Finance Minister Brian Lenihan unveiled the toughest budget in the country's history that will see €6 billion in spending cuts and tax increases carve a swathe across all parts of society.

IRISH BUDGET AWAITS CRUCIAL SUPPORT
Ireland's crumbling Fianna Fail-led coalition has one final task before it calls an election: make sure the 2011 budget is passed.

Ireland's Budget Receives Independent Support

Ireland's struggling Fianna Fail-led government received a boost Monday after Independent lawmaker Michael Lowry said he will vote to support the government's 2011 budget in the national interest.

The Fianna Fail/Green Party coalition needs a two-seat parliamentary majority with Lowry and another Independent lawmaker, Jackie Healy-Rae, to pass the budget. Political commentators expect Healy-Rae to follow suit.
"I believe we have no alternative but to honor and comply with the budgetary parameters as set out in the agreement with the European Union/International Monetary Fund," Lowry said.

He said people who earn most should take the burden of taxation measures, but said he was ultimately "duty-bound" to support the budget. "The consequences of not passing the budget would be disastrous for Ireland."

  "In this instance, I am making a hard decision and I make it, in what I see, are in the interests of the Irish people," he told reporters in a statement Monday afternoon. Earlier Monday, Healy-Rae told Kerry Radio in his home county that he had received assurance from Prime Minister Brian Cowen that Kenmare would receive a hospital and Tralee would get a motorway by-pass. 

SPAIN:

SPAIN REOPENS AIRSPACE AFTER WALKOUT
 Spanish airports were back operating at normal levels after a 24-hour strike by air traffic controllers caused travel chaos for hundreds of thousands of people.


RUSSIA:

FRIDAY:
Russia Central Bank Withholds Ruble Support

Russia's central bank held off support for the ruble Friday, declining to sell foreign currency for the first time in a month and a half, the deputy chairman said. The ruble strengthened slightly Friday, rising to a two-month high of 35.42 to the central bank's dollar-euro basket. It appreciated to 30.88 against the dollar at the close of Micex trade. 

Alexei Ulyukayev also said the Bank of Russia sold less foreign currency in the first week of December than in the same period in November.

The central bank sold $4.76 billion in November, up from $3.23 billion in October, in an effort to support the ruble amid an outflow of private capital.

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Asian Pacific Markets:
WEDNESDAY: Japan's Nikkei Average closed up 0.9% as the weaker yen helped boost export stocks. But in Shanghai and Hong Kong, shares tumbled 1% and 1.4%, respectively.

TUESDAY:Most Asian markets showed gaines Monday. The MSCI Asia Pacific Index added 0.2 percent to 133.64, extending a three-day gain, while futures on the Standard & Poor’s 500 Index lost 0.1 percent. TOPIX  880.74 +1.52 (0.17%).

CHINA:
FRIDAY: Shanghai     2,841.04     +30.09 (1.07%) 
Hang Seng Index     23,162.91     -8.89 (-0.04%)

China's central bank on Friday increased the amount of money that lenders must keep on reserve for the third time in one month, a move to mop up excess cash in the economy and rein in inflation.

China Petrochemical Corp, parent of Sinopec Corp , agreed to buy all of U.S.-based Occidental Petroleum Corp's oil and gas assets in Argentina for $2.45 billion, One of China's largest social networking companies, Oak Pacific Interactive, has hired investment banks for an initial public offering in the United States next year,

THURSDAY: Shanghai     2,810.95     -37.60 (-1.32%)
Hang Seng Index     23,171.80     +79.28 (0.34%)

TUESDAY: Shanghai     2,875.86     +18.68 (0.65%)
Hang Seng Index     23,428.15     +190.46 (0.82%)


TUESDAY: China’s benchmark Shanghai Composite index rebounded from early losses to gain 0.7 per cent, despite speculation that Beijing may hike interest rates soon. Hong Kong’s Hang Seng Index, meanwhile, also bounced back to rise 0.8 per cent. China, a key growth driver for the world, is grappling with how to douse rising prices and cool its still red-hot economy without causing too fast a slowdown.

CHINA RESERVES ON THE RISE
Bank Reserve Ratio May Increase Further

China may raise banks' reserve requirement ratio at the start of next year to curb capital inflow and control lending rates, central bank adviser Li Daokui has said. His comments came after the Chinese Communist Party Central Committee's Political Bureau said it would shift from a relatively loose to a prudent monetary policy to fight inflation and curb excessive liquidity.

The People's Bank of China raised lending and deposit rates by 25 basis points in October, the first time since 2007. It also raised banks' reserve ratio twice in November to a record level of 18.5 percent to tackle inflation.

CHINA CLONES RUSSIAN FIGHTER JETS
The Chinese have gone from importing high-tech Russian arms to reverse engineering that technology to compete for sales with its former supplier in flash points across the globe.


JAPAN:
FRIDAY: Nikkei 225     10,211.95     -73.93 (-0.72%)  

JAPAN REVISES GDP UPWARD
Japan revised upward its third-quarter economic growth figure, but the revision isn't enough to dispel the gloom that other recent indicators have been casting over the economy's prospects.


THURSDAY:Nikkei 225     10,285.88  +53.55 (0.52%) 
Japan's economy grew faster than estimated in the third quarter.Japan's benchmark Nikkei 225 stock average closed up 0.5 per cent to 10,285.88 as the dollar hovered near 84 yen, bolstering exporters who in past months were struggling against a much stronger yen.


MONDAY: Nikkei 225 10,163.86 -14.46 (-0.14%)

About three stocks gained for every two that declined on MSCI’s Asian index. Taiwan’s Taiex index climbed 1 percent after Nomura Holdings Inc. raised its rating on the island’s equities to “bullish” from “bearish” amid optimism for improved economic relations with China.

Japan’s Nikkei 225 Stock Average lost 0.2 percent, retreating from the highest since June, after a slump in the dollar on Dec. 3 weighed on Canon Inc. and the country’s exporters.

SOUTH KOREA:
South Korea’s won rose to a two-week high.

Hyundai Motor Co. fell 1.1 percent after South Korea and the U.S. revised a stalled free-trade accord, allowing the U.S. to end a 2.5 percent tariff on automobiles in five years, instead of immediately or after three years, as was previously agreed.

U.S. Asia Talks Focus On North Korea
The U.S., Japan and South Korea will discuss North Korea's uranium enrichment and other developments related to its nuclear ambitions in Washington next week, Japan's top diplomat said Friday.

Japanese Foreign Minister Seiji Maehara said he plans to discuss with his U.S. and South Korean counterparts "what kind of factors should be incorporated" into the premise of holding multilateral talks proposed by China.

The U.S., Japan and South Korea will hold talks next week as the nations plan a joint strategy on dealing with North Korea after its deadly artillery bombardment of South Korea. Secretary of State Clinton is scheduled to meet with representatives from the other two nations to discuss developments in the region. Meanwhile, South Korea is planning to hold its own military exercises next week, including drills on flash point border islands in parts of the Yellow Sea that are disputed with the North.



AUSTRALIA:
THURSDAY:
Australia's S&P/ASX 200 climbed 0.9 per cent to 4,741.30 amid figures showing the unemployment rate fell to 5.2 per cent and the number of employed people jumped by 54,600.

Australia ACCC Allows Potential New South Wales Power Deals

Australia's competition watchdog said Thursday it won't oppose possible takeover deals suggested by AGL Energy Ltd. (AGK.AU) and Origin Energy Ltd. (ORG.AU) linked to the up to A$10 billion privatization of power assets by New South Wales state.

Unemployment Rate Dropped to 5.2%

The Australian Dollar moved higher after the Australian Bureau of Statistics reported that employment in the country surged 54.6K in November, well above the 20K increase that was expected. 

This was the largest rise in employment since January and the second largest since late-2006. The prior month’s job gains were revised higher as well, with the ABS estimating job gains of 36.9K for October, up from 29.7K. 

The unemployment rate for Australia fell from 5.4% to 5.2%. This was despite the fact that the labor force participation rate advanced from 65.9% in October to 66.1%, which is the highest level ever recorded. 

 

Despite the much better-than-expected employment figures, market-based interest rate expectations for Australia remain muted. There is only an 8% probability that the Reserve Bank of Australia hikes rates at the next meeting in February. Additionally, only 35 basis points of hikes are expected over the course of 2011, though this is up from 17 basis points just last week.

WEDNESDAY: Australia’s employment change is expected to rise 20.0K in November after climbing 29.7K the month prior, while the unemployment rate is foretasted to fall to 5.2 percent. 

MONDAY: The Australian S&P/ASX 200 index (AU:XJO 4,689, -5.60, -0.12%)

This week, central banks in Australia, South Korea and New Zealand will release policy decisions. Economists noted that the latest data showed softness even before the Reserve Bank of Australia hiked its key cash rate in early November.Tuesday’s meeting of the RBA is likely to see the RBA holding its key cash rate steady at 4.75%, said economists at Capital Economics.

Rio Tinto Discusses $3.5 Billion Riversdale Deal
Riversdale Mining Ltd. (RIV.AU) said Monday it has been in talks with mining giant Rio Tinto (RIO)over a US$3.51 billion takeover, leading to a surge in its share price amid expectations that a higher offer would be needed.
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WORLD FOREX CURRENCIES SNAPSHOT:
(FRIDAY, DEC 10, 2010 4:00 PM EST)

EUR/USD     1.3230     -0.0009 (-0.07%)
USD/JPY     83.8900 +0.1200 (0.14%)
GBP/USD     1.5802     +0.0025 (0.16%)
CAD/USD     0.9912     +0.0021 (0.21%)
USD/HKD     7.7730     -0.0008 (-0.01%)
USD/CNY     6.6550     +0.0001 (0.00%)
AUD/USD     0.9852     +0.0009 (0.09%)



WORLD MARKETS SNAPSHOT:
(FRIDAY, DEC. 10, 2010 4:00 PM EST)

Shanghai     2,841.04     +30.09 (1.07%)
Nikkei 225     10,211.95     -73.93 (-0.72%)
Hang Seng Index     23,162.91     -8.89 (-0.04%)
TSEC     8,718.83     -35.01 (-0.40%)
FTSE 100     5,812.95     +4.99 (0.09%)
DJ EURO STOXX 50     2,839.53     -1.18 (-0.04%)
CAC 40     3,857.35     -0.70 (-0.02%)
S&P TSX     13,239.95     +73.01 (0.55%)
S&P/ASX 200     4,745.90     +4.60 (0.10%)
BSE Sensex     19,508.89     +266.53 (1.39%)

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FRIDAY'S U.S. ECONOMIC CALENDAR:


8:30 a.m.
Oct U.S. International Trade in Goods & Services Deficit (expected -44B), Exports (expected 154.1B), Exports Percent Change (previous +0.3%), Imports (previous 198.1B), Imports Percent Change (previous -1%)

8:30 a.m.
Nov Import & Export Price Indexes Import Prices (expected +0.8%), Non-Petroleum Prices (previous +0.4%), Petroleum Prices (previous +3.3%)

8:30 a.m.
World Agricultural Supply & Demand Estimates (WASDE)

9:55 a.m.
Dec Thomson Reuters / University of Michigan Survey of Consumers - preliminary Sentiment Index Mid Month (expected 73), Expectations Index Mid Month (previous 62.7), Value (Current Period) Mid Month (previous 79.7)

2:00 p.m.
Nov Monthly Treasury Statement of Receipts & Outlays of the U.S. Govt (expected -126.5B)
EARNINGS REPORTS:

A handful of apparel and retail companies--including Talbots Inc. (TLB), Men's Wearhouse Inc. (MW) and Oxford Industries Inc. (OXM)--are expected to report their latest quarterly results next week.

Analysts polled by Thomson Reuters projected a mixed performance from the trio, with top- and bottom-line growth only expected from Men's Wearhouse, which operates stores for men in the U.S. and Canada.

Tax-service providers H&R Block Inc. (HRB) and Jackson Hewitt Tax Service Inc. (JTX) are scheduled to report results on Tuesday and Friday, respectively. Wall Street analysts expected H&R to report slightly better results, while Jackson Hewitt's fiscal second-quarter loss is seen widening.

Other companies expected to report their latest earnings next week include auto-parts retailer AutoZone Inc. (AZO) on Tuesday and gun maker Smith & Wesson Holding Corp. (SWHC) on Wednesday.

ECONOMIC CONFERENCES:

Among the significant conferences next week are the Credit Suisse Group Holiday Conference Monday through Wednesday in Orlando, Fla.; UBS Global Media and Communications Conference Monday through Wednesday in New York; the Canaccord Genuity Cardio/Diabetes & Obesity Conference on Tuesday and Wednesday in San Francisco; the Goldman Sachs U.S. Financial Services Conference on Tuesday and Wednesday in New York; the William Blair & Co. LLC Global Services Growth Stock Conference on Tuesday and Wednesday in Scottsdale, Ariz.; the Barclays Capital Global Technology Conference on Wednesday and Thursday in San Francisco; and the Macquarie Securities Alternative Energy Conference: Powering Change on Wednesday and Thursday in New York.


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US STOCK MARKET SUMMARY, THUR., DEC. 9, 2010:

Stocks:
U.S. stocks finished mixed, with a loss for the Dow Jones Industrial Average and a gain for the Nasdaq Composite. The mixed activity followed conflicting economic data. Initial unemployment claims fell by more than expected last week, but the previous week's figures were revised slightly upward. Meanwhile, inventories of U.S. wholesalers rose more than expected in October.


Treasurys:
Longer-dated Treasurys rose as the bond market showed some tentative signs of recovery after the biggest two-day sell-off in two years. The key boost came from a strong 30-year bond auction. Higher yields also brought in fresh buyers who snapped up cheapened bonds, betting that the recent sell-off may have run its course.

Forex:
The dollar gained against most other currencies. The dollar lost ground to the yen as U.S. bond yields fell after a strong 30-year Treasury bond sale. The dollar hit a session low of Y83.51 right after the auction, reversing the recent trend of the greenback trading higher as U.S. yield spreads widened over some rival sovereigns.


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