Greg Secker – Global Market Update

We had a major sell off yesterday around the world.  The DOW closed down 416 points at 12216 which has taken away all the years gains. The S&P fell 50 points and the NASDAQ fell 96 points. And over night Asian stocks added to global rout. The FTSE, writes Greg Secker, 100 fell 148 points, the FTSE 250 fell 431 points. Futures – DOW is called up 10 points, FTSE is called down 65 points as the US markets continued to fall after the UK markets had closed. Oil is trading at $60.50 a barrel and gold at $671.60.

Stock markets plummeted across Europe and America on Tuesday after a shock nine per cent slump in China’s Shanghai Composite index.

The decline, the steepest in a decade, came after consecutive weeks of record highs.

The loss came amid concern over interest rate rises in China and fears that Chinese authorities may crack down on stock market speculation.

A total of £36.2 billion was wiped off the FTSE 100 as the bourse suffered its biggest fall since May last year.

Investor panic on news from China sent the index plunging to finish 148.6 points lower at 6286.1, a decline of 2.3 per cent.

New York’s Dow Jones was down more than one per cent.

Sentiment was also affected by pessimistic words on the US economy from former Federal Reserve chairman Alan Greenspan, concern over South African mining taxes, and Iran’s continuing nuclear brinkmanship

In the mining sector, Xstrata shed more than six per cent to 2479p.

Lonmin followed suit, down 209p at 3165p. BHP Billiton was next, off 89p at 1051p, and Antofagasta slumped 28p at 473.5p.

Fund managers also lost out, with Amvescap down 37.5p at 612.5p and Man Group slipping 31p to 557p.

Reuters was the only blue chip firm in positive territory after Credit Suisse upgraded the news and information provider to ‘outperform’ from “neutral” and raised its price target.

Stock rose 6p to 432p.

The leading fallers were Xstrata, Lonmin and BHP Billiton.

China – biggest fall in 10 years, drops 250 points overnight. Longs in the UK will get crunched.

The DOW closed the day down 15 points fall back near to the major lower trend line. The S&P closed down 1 point as it continues to hold near the highs. The NASDAQ had a key reversal bar yesterday closing down 10 points. The FTSE, writes Greg Secker, 100 gapped higher at the open and closed up 33 points. The FTSE, writes Greg Secker, 250 closed up 12 points as it continues to consolidate at the highs. Futures – DOW is called down 18 points, FTSE is called down 20 points. Oil is trading at $61.40 a barrel and gold at $685.40

The DOW closed Friday down 38 points, we have had a steady pull back from all time highs to the 20 ema watch for a break or bounce from this level. The S&P and NASDAQ both traded lower on Friday but continue to hold above near term support. The FTSE, writes Greg Secker, 100 tested the lows and found support on the 20 ema and rallied to the close to finish up 20 points. Futures – DOW is called up 15 points, FTSE is called up 12 points. Oil is trading at $61.30 and gold at $685.50

Oil prices up as Iran tensions rise
 

Oil prices are up amid concerns over depleting stocks and tensions between the west and Iran.
 

Crude oil for April delivery increased by 47 cents, to $61.42 per barrel on the New York Mercantile Exchange (Nymex). In London, crude oil for April delivery rose by 77 cents to $61.39 per barrel on the Intercontinental Exchange (ICE).
 

Although prices are still relatively high, today’s increases are moderate compared to yesterday’s surge, which saw prices jump by 88 cents to close at $60.95 per barrel.
 

According to Bloomberg, stockpiles of distillates – including heating oil and diesel – fell by five million barrels, or 3.8 per cent, last week.
 

“The main risk to the oil price is either a boycott of trade, isolating Iran, or a military attack,” because either would “influence the production and supply of oil from Iran to the world market,” Thina Saltvedt, an analyst at Nordea Bank, told the news agency.
 

Iran could be subject to sanctions as the US and Europe are due to meet next week to draft the second resolution against the oil-rich country, which is a key producer in the Organization of Petroleum Exporting Countries (Opec).
 

Futures fall with Microsoft in focus

Futures on the US stock market fell this morning as Microsoft was ordered to pay $1.52 billion in damages to Alcatel-Lucent for its use of patented technology.
 

On the Standard & Poor 500, futures dropped by 1.5 points to 1,457.70, while Nasdaq 100 futures fell 4.25 points to 1,850. The Dow Jones Industrial saw its futures slip by 13 points to 12,691.
 

BEA Systems released its fourth quarter results, posting a 15 per cent rise in revenue. However, the figures fell short of market expectations and shares in the company fell.
 

Johan Van Der Biest, from Dexia Asset Management, told Bloomberg: “Technology companies are delivering guidance that is very cautious, in fact below expectations. There is immense competition. That’s really weighing on expected growth.”
 

Ones to watch

Shares in home media company Blockbuster were up by 1.35 per cent to $6.78 this morning  after the firm said it had agreed to sell its Australian subsidiary. The master franchise rights for its Australia system would be handed over to Video Ezy.
 

Chiquita Brands saw its shares fall by 1.31 per cent to $16.62 after the fresh fruit and vegetable company reported a net loss of $41.9 million, or 99 cents per share, in the fourth quarter.
 

In the same period a year ago, the firm saw a net loss of $19 million, or 45 cents a share.
 

Domino’s Pizza Inc, Clear Channel Communications and Hearst-Argyle Television are among the companies expected to post their fourth-quarter earnings today

The DOW closed down 52 points and below the 12700 level and finding some support from the 20 ema at the close. The S&P had a small rally at the end of the day to close down 1 point, while the NASDAQ rallied from its days low to close up 6 points and again closing at a 5 year high. The FTSE, writes Greg Secker, 100 tested the highs but fell back at the close to add 23 points. Futures – DOW is called down 5 points, FTSE is called up 20 points. Oil is trading above the $60 level at $60.90. Gold is trading at $675.30
Supermarket giant Asda has announced it is to open 18 new superstores this year, creating 8,000 new jobs across the UK.

The Wal-Mart owned chain also said it would expand its existing businesses and create an extra ten Asda Living sites – which sell non-food items including clothes and home furnishings – over the next 12 months.

The company said the expansion of Asda Living would “play an integral part” in its growth this year.

It also announced plans to launch its first ecologically friendly store – the timber-framed superstore near Oldham.

This “marks the first stage in Asda’s new energy efficient store build programme,” the company claimed, noting the 35,000 square foot store would reduce energy consumption through a natural ventilation system.

As a result, the store would be 20 per cent more energy efficient than others in the chain, Asda added.

Wal-Mart shares were down 0.58 per cent to $49.97 (£25.61) on the New York StockExchange (NYSE).

Mining stocks took on turn for the worse on the FTSE 100 on Wednesday declining from recent highs.

The index of leading shares slumped below the 6,400 mark to close 55.2 points down at 6357.1.

The shaky start on Wall Street was mainly behind the drop off with investors taking note of a higher than expected rise in US inflation.

Mining giant Anglo American suffered the biggest fall on the Footsie after stating plans to return £1.5 billion to shareholders, despite recording annual profits of £5.02 billion.

Stock closed down 66p at 2536p.

A drop off in metal prices and the news from Anglo America saw other firms in the sector losing out, with Antofagasta down 9p to 473p, BHP Billiton off the pace 18.5p to 1070.5p and Vedanta Resources losing out 9p to 1285p.

In the energy sector, BP shed almost two per cent, down 9.5p at 521.5p, on weaker oil prices and uncertainty over the resumption of operations at its offshore oil field in the Arctic Ocean.

Bucking the gloom

Bucking the gloom was Alliance & Leicester after it posted a seven per cent rise in annual profits to £585 million, some £5 million higher than market expectations.

Stock surged 83p to 1149p, a gain of more than seven per cent, after news that chief executive Richard Pym planned to step down.

Investors take note that his exit may expose the group to a takeover approach.

Online gaming group PartyGaming increased 11.4 per cent to 41.5p, with over 215 million shares changing hands.

PartyGaming is expected to report 2006 pre-tax profits of about $130 million next week.

Imperial Tobacco also rose amid continued takeover speculation, with shares up 40p to 2200p.

UK Coal grew four per cent to 478.5p on takeover talk.

Mobile phone firm Vodafone shed 2.3 per cent to 147p after Morgan Stanley sliced ten per cent from its 2008 earnings forecasts.

The top three FTSE winners were Alliance & Leicester, Imperial Tobacco, and Amvescap.

The bottom three losers were Anglo American, Smiths Group and GlaxoSmithKline down 29p at 1459p.

The FTSE 250 fell 43.9 points, or 0.4 per cent, to 11,543

A little late today…The DOW closed the day up 19 points after testing the lows and closed at a new all time high. The NASDAQ & S&P each rallied sharpley from the days lows and now sit above key resistance. The FTSE, writes Greg Secker, 100 fell 32 closing at 6412 after testing the 6400 level. Futures – DOW is called down 15 points, FTSE is called up 10 points. Oil is trading at $58.10 a barrel and gold at $659.

The FTSE 100 emulated falls across Europe and in Japan on Monday despite a raft of positive data from blue-chip firms.

The index of leading shares closed 32.1 points down at 6412.3, with drinks can maker Rexam down nearly five per cent or 27p down at 517p, after it noted aluminium, freight and energy costs may retard growth this year.

Brewers were also down after full year results from Scottish & Newcastle affected confidence in the sector.

Reporting weaker-than-expected operating performance, S&N ended 23p lower at 552p.

Following suit was leisure group Whitbread, down 40p to 1685p.

Cadbury Schweppes shed 12.5p to 564p as it noted disappointing margins and the effects of last year’s salmonella scare.

InterContinental Hotels lost 25p to 1252p after a 14 per cent drop in full-year profits.

In positive territory was banker Barclays, closing 3p higher at 784.5p, after reporting £7 billion-plus profits.

Despite weaker-than-expected results, drugs firm Shire bossed the leaders as investors took cheer from its £1.33 billion acquisition of US firm New River Pharmaceuticals.

The shares ended 40p up to 1115p.

Energy firm Drax was also in positive territory, up 24.5p to 686.5p, after a broker upgrade from Goldman Sachs.

Building materials group Hanson pushed up more than three per cent on news of consolidation in the sector; shares ended up 23.5p to 835p.

The top three risers were Shire and Hanson.

The bottom three losers were Rexam, Scottish & Newcastle and Bradford & Bingley.

US markets closed on Monday – The FTSE closed at a new 6 year high at 6444, FTSE 250 at an all time high at 11636. Futures – DOW is called up 10 points on Fridays close, FTSE is called flat. Oil is trading at $$58.70, gold is trading at $671

THE DOW, S&P and NASDAQ all continue to hold at the highs, watch for a breakout from these levels. The FTSE, writes Greg Secker, 100 closed down 13 points but holding above the 6400 level. Futures – DOW is called down 5 points, FTSE is called up 10 points. Oil is trading at $59.10 a barrel and gold at $672.5

Banks

UK top banks are expected to unveil massive profits up to £38 billion from £33 billion last year. over the next ten days.

Barclays reports on Tuesday and is expected to see profits rise by a third to £7 billion.

Also reporting is HSBC, Royal Bank of Scotland, HBoS and Lloyds TSB.

HSBC is forecast to record profits of about £11.5 billion for the past 12 months.

Alliance & Leicester reports data on Wednesday, while Royal Bank of Scotland, Lloyds TSB (Friday) and Halifax Bank of Scotland are expected to report returns of about £9.1 billion, £3.6 billion and £5.4 billion respectively.

London Stock Exchange

Chinese firms are expected to list on the London Stock Exchange in record numbers this year.

In 2006, six Chinese firms launched IPOs on the bourse, while the Alternative Investment Market took on 44.

Some $22 billion was raised through IPOs by overseas firms last year.

Reports

Confectionery giant Cadbury Schweppes delivers annual results on Tuesday.

Mining giant Anglo American posts annual results on Wednesday and is expected to report around £4.9 billion in pre-tax profit.

Defence firm, BAE Systems, publishes strong annual results on Thursday.

Rentokil Initial updates the market on Thursday.

Pharmaceutical firm Shire unveils annual figures on Friday.

The DOW closed up 23 points and continues to hold above the 12700 level. The S&P and NASDAQ both had small gains and continue to hold at their highs. The FTSE, writes Greg Secker, 100 added 12 points to close at another 6 year high of 6433. Futures – DOW is called down 15 points, FTSE is called down 15 points. Oil is trading at $57.80 a barrel and gold at $667.3