Greg Secker – Global Market Update

The Dow Jones industrial average rose 124.17 points, or 1.28 percent, to end at 9,789.36. The Standard & Poor’s 500 Index gained 18.60 points, or 1.78 percent, to 1,062.98. The Nasdaq Composite Index rose up 39.82 points, or 1.90 percent, to 2,130.74. Yesterday U.S. stocks rallied, breaking a three-day losing streak, as a spurt of corporate takeovers in the technology and health-care sectors fueled optimism about share values. The FTSEurofirst 300 of top European shares closed up at 1,001.42 points. The benchmark Nikkei gained 95.16 points to 10,104.68. The broader Topix added 0.3 percent to 905.24.

 The recent mergers and acquisitions activity in US stocks are being viewed as a bullish signal, as it suggests companies are more optimistic about the business outlook. The International Monetary Fund has boosted hopes for an early exit from recession by saying  in the next few days it will raise its global growth forecasts. A Chinese state-owned oil company is in talks with Nigeria to buy large stakes in some of the world’s richest oil blocks. Yesterday, the yen hit an eight-month high against the dollar after Japan’s finance minister appeared to tone down comments, which suggested he would intervene to stem its recent rise. Yesterday, the former Lord Mayor of London Sir David Brewer said, Uk Banks should turn to China’s burgeoning economy in their search for lucrative new business.

Due for release today there is the GBP Gross Domestic Product, GBP Current Account, GBP Mortgage approvals, GBP Net Consumer Credit, EUR Euro-Zone Economic Confidence, EURO Euro-Zone Business Climate Indicator, EURO Euro-Zone Consumer Confidence, USD Consumer Confidence and JPY Industrial Production.

By Greg Secker

The Dow Jones industrial average was down 42.25 points, or 0.44 percent, at 9,665.19. The Standard & Poor’s 500 Index fell 6.40 points, or 0.61 percent, at 1,044.38. The Nasdaq Composite Index closed down 16.69 points, or 0.79 percent, at 2,090.92.U.S. stocks fell on Friday after disappointing data on durable goods orders and housing. The FTSEurofirst 300 of top European shares closed 0.4 percent lower at 983.91 points. European were led lower by weaker financials which outpaced gains in pharmaceutical and energy stocks. On Monday Japan’s Nikkei average fell below the 10,000 mark to its weakest level in two months. The benchmark Nikkei .N225 touched 9,989.65, breaking below 10,000 for the first time since July 24 before rising back to 10,023.99, down 2.4 percent. The broader Topix shed 2.3 percent to 901.72.

Yesterday, Barack Obama welcomed world leaders to the G20 summit in Pittsburgh. The dignitaries plan to thrash out a deal to try and prevent a repeat of the banking crisis that has devastated the global economy. Jean-Claude Trichet, said the members of the G20 must tackle global economic imbalances in its new role as the key international policy forum. While many market participants have enjoyed a rally through 2009, the growing budget deficits are going to be hard to escape. In the US, there is hesitation to move away from a strong dollar policy rhetoric. Of course there has to be hesitation as the dollar still is the world’s currency reserve. On the other hand in the UK, Bank of England Governor, Mervyn King caused the pound further pain by stating that a weak pound was helping rebalance the UK economy.

Due for release today there are JPY Tokyo National Consumer Price Index, FED National Activity Index, EUR German Consumer Price Index.

By Greg Secker

According to the latest available figures, the Dow Jones industrial average was down 41.11 points, or 0.42 percent, at 9,707.44. The Standard & Poor’s 500 Index fell 10.09 points, or 0.95 percent, at 1,050.78. The Nasdaq Composite Index shed 23.81 points, or 1.12 percent, at 2,107.61. U.S. stocks fell on Thursday as signs of weakness in housing and investors’ worries that authorities might be curbing stimulus efforts too soon sparked caution. The FTSEurofirst 300 index of top European shares ended 1.9 percent down at 987.37 points. European shares hit a two-week closing yesterday, led by banking and energy stocks on weaker U.S. housing data and as major central banks said they were scaling back some emergency lending facilities. Japan’s Nikkei stock average slid 2.5 percent on Friday.

The European competition commissioner has warned EU states against “bribing” car companies in order to “steal” jobs from other countries. According to various reports over recent days Spain is sliding into a full-blown economic depression with unemployment approaching levels not seen since the Second Republic of the 1930s and little chance of recovery until well into the next decade. President Sarkozy will back down today over his demands that bankers’ bonuses must be capped. Instead, the French President will insist that the issue of restructuring their pay be discussed among fellow world leaders at the G20 meeting starting in Pittsburgh. The US financial sector’s losses on large loans exploded over the past year, exceeding the combined losses since 2001.  Official figures revealed yesterday that hedge funds and other members of the “shadow banking system” were hit the hardest. According to new data, the return of confidence to the markets has failed to boost M&A activity. Yesterday, some of Europe’s central bankers said Banks should be required to hold higher levels of capital to avoid the need for government bailouts and also banks that are seen as too big to fail should be more heavily supervised. Fewer Americans filed new claims for jobless benefits last week compared to the previous week. Sales of previously owned homes in the US unexpectedly fell in August, indicating that the recovery will be slow.

Due for release today there is the CHF KOF Institute Economic Forecast, USD Durable Goods, USD Durable Goods Ex Transportation and USD New Home Sales.

By Greg Secker

The Dow Jones industrial average was up 51.01 points, or 0.52 percent, to end unofficially at 9,829.87. The Standard & Poor’s 500 Index .SPX gained 7.00 points, or 0.66 percent, to finish unofficially at 1,071.66. The Nasdaq Composite Index rose 8.26 points, or 0.39 percent, to close unofficially at 2,146.30. U.S. stocks rose on Tuesday, as investors bet the U.S. Federal Reserve will stick to its accommodative policy to foster economic recovery, boosting growth-sensitive sectors such as financials, technology and industrials. European stock index futures pointed to a mixed start for equities on Wednesday ahead of the U.S. Federal Reserve’s rate decision.

China’s president President Hu Jintao promised a “notable” reduction in the growth of carbon dioxide emissions. Russian first deputy Prime Minister Igor Shuvalov said Russia aims to finish negotiating its entry into the World Trade organization next year. Today the EC will publish its blueprint for a revamp of European financial supervision, which is planned to create four new agencies tasked with monitoring economic risks across the 27-nation European Union. Singapore’s sovereign wealth fund GIC has sold half of the nine per cent stake in Citigroup it acquired amid the banking crisis.

Due for release today there is EUR German Purchasing Manager Index, EUR Euro-Zone Purchasing Manager Index Manufacturing, GBP Bank of England Meeting Minutes, GBP BBA Loans for House Purchase, EUR Euro-Zone Industrial New Orders, NZD Westpac NZ Consumer Confidence, JPY Merchandise Trade Balance Total, JPY Adjusted Merchandise Trade Balance.

By Greg Secker

The Dow Jones industrial average was up 36.28 points, or 0.37 percent, at 9,820.20. The Dow hit a new 11-month high.  The Standard & Poor’s 500 Index was up 2.81 points, or 0.26 percent, at 1,068.30. The Nasdaq Composite Index was up 6.11 points, or 0.29 percent, at 2,132.86. The S&P 500 is up 58 percent since it’s March low. Procter & Gamble and major home builders were among the largest gainers. European shares pulled back on Friday, from an 11-month high that was reached on Thursday. Defensive drug makers were the day’s top gainers. The benchmark Nikkei .N225 pared its losses to 73.26 points or 10,370.54 after falling as much as 1.4 percent during the morning, and was down 0.7 percent on the week. Japan’s Nikkei slipped 0.7 percent on Friday, financials were hit. The broader Topix ended flat at 939.44.
According to bankers and industry groups, European commercial property owners face a wave of complex debt refinancing and restructuring, which could pose a threat to that sector. Analysts said last night, that the Federal Reserve to regulate US bank bonuses has made a deal at this week’s G20 summit much more likely, The US shift has significantly reduced the gap with the EU’s position, but other nations and national parliaments would still have to endorse any agreement. The Fed now wants to have the power to veto any compensation structure it believes could be driving excessive risk-taking. The top 25 banks would be most regulated. Obama said yesterday that all signs are pointing to the US economy starting to grow again, however he is concerned that not enough jobs may be created until next year.

Due for release today there is the USD leading indicators, NZD Current Account Balance, NZD Current Account Deficit.

By Greg Secker

The Dow Jones industrial average fell 7.79 points, or 0.08 percent, to end at 9,783.92. The Standard & Poor’s 500 Index was down 3.27 points, or 0.31 percent, at 1,065.49. The benchmark S&P 500 now up 58 percent since its early March lows. The Nasdaq Composite Index was down 6.40 points, or 0.30 percent, at 2,126.75. U.S. stocks slipped on concern recent gains were overextended, despite a good round of solid economic data. European stock index futures pointed to a lower open on Friday, with investors poised to cash in some of the recent strong gains after Wall Street dipped and commodity prices edged lower. The benchmark Nikkei ended down 73.26 points at 10,370.9. Japan’s Nikkei stock average slipped 0.7 percent on Friday, with financials showing the largest drop on the index. The broader Topix ended flat at 939.44.

U.S. housing starts and permits increased to their highest level since November. The number of U.S. workers filing new claims for jobless benefits fell unexpectedly last week. While new jobless claimants fell, the number of new houses being built in the US rose in August to the highest level since November. The commerce department said housing starts rose 1.5 per cent to a seasonally adjusted annual rate of 598,000. European Union leaders met in Brussels last night in an attempt to create a joint approach to curbing bonuses. A senior World Trade Organisation (WTO) official said yesterday, that trade measures of the type imposed by the US on Chinese tyres run the risk of slowing down economic recovery.

Due for release today there is EUR German Producer Prices, EUR Euro-Zone Current Account, GBP Public Finances, GBP Public Sector Net Borrowing.

By Greg Secker