Greg Secker – Global Market Update

The Dow Jones industrial average rose 131.95 points, or 1.33 percent, to 10,081.31. The Standard & Poor’s 500 Index rose 11.51 points, to 1,092.91. The Nasdaq Composite Index added 14.56 points, or 0.68 percent, to 2,165.29. In early trade on Friday Stock index futures pointed to sharp gains for European shares, after a rise in financial stocks helped the Dow close back above 10,000. The benchmark Nikkei gained 15.82 points to 10,282.99, with investors locking in profits before Japan’s earning season moves into high gear next week.The Topix, which is not as tech-heavy, lost 0.7 percent to 902.03.

By the middle of next week the European Commission (EC) is expected to approve plans to split Northern Rock into a “good” and “bad” bank, paving the way for the break-up and sale of the nationalised bank. China saw its annual rate of GDP growth pick up in the third quarter as a combination of breakneck investment and buoyant bank lending compensated for a slump in exports. Growth increased to 8.9 per cent in the third quarter, from 7.9 per cent last quarter. The figures came a day after the government said recovery in the world’s third-largest economy had now been “consolidated”.

Due for release today there is the EUR German IFO – Business Climate, EUR German IFO – Current Assessment, EUR German IFO – Expectations, GBP Gross Domestic Product, GBP BBA Loans for House Purchase, USD Fed’s Bernanke Speaks on Regulation at Boston Fed Conference.

But the blue-chip Dow Jones industrial average dropped 50.71 points, or 0.50 percent, to end at 10,041.48. The Standard & Poor’s 500 Index fell 6.85 points, or 0.62 percent, to 1,091.06. The Nasdaq Composite Index shed 12.85 points, or 0.59 percent, to close at 2,163.47. The FTSEurofirst index, is up 23 percent in 2009 and has surged 58 percent since hitting a record low in March. Across Europe, Britain’s FTSE 100 index, Germany’s DAX and France’s CAC 40 fell 0.5-0.7 percent. The benchmark Nikkei dipped 3.45 points to 10,333.39, after hitting a three-week closing high on Tuesday. The Topix was also unchanged at 913.70.

France has given its clearest indication to date that the surging euro is a threat to Europe’s fragile recovery.  Since March the currency has risen 15pc in trade-weighted terms. An administration official said, on Wednesday Barack Obama is expected to announce a series of initiatives aimed at boosting credit to small businesses. According to Pricewaterhouse-Coopers, the European financial services market is set for a wave of mergers and acquisitions (M&A) activity. US Federal Reserve Chairman Ben Bernanke warned last night, that Asia’s export-promotion policies and the US’s massive budget deficit could refuel global economic imbalances.

Due for release today there is Fed’s Plosser to Speak at Stanford on Monetary Policy, Westpac Leading Index, NZD Credit Card Spending, CHF Real Estate Index Family Homes, GBP Bank of England Minutes, GBP U.K. CBI Quarterly Industrial Trends Total Orders, USD Fed Releases Beige Book Economic Report, JPY Merchandise Trade Balance Total, USD Adjusted Merchandise Trade Balance.

By Greg Secker

The Dow Jones industrial average gained 96.28 points, or 0.96 percent, to end at 10,092.19. The Standard & Poor’s 500 Index added 10.23 points, or 0.94 percent, to 1,097.91. The Nasdaq Composite Index rose 19.52 points, or 0.91 percent, to 2,176.32.The FTSEurofirst 300 index of leading European shares rose 1.7 percent to 1,026.46 points. European shares hit a fresh 12-month closing high on Monday.The benchmark Nikkei rose 111.07 points to 10,347.58. The Topix gained 1 percent to 914.68.

According to a draft of the proposals due to be released this week, the European Commission (EC) plans to drive more trading in derivatives onto exchanges and under the gaze of regulators. Last night US Federal Reserve Chairman Ben Bernanke warned, that Asia’s export-promotion policies and the US’s massive budget deficit could refuel global economic imbalances. According to the International Financial Services London (IFSL) annual report, the US cemented its dominance in financial markets in 2008. The Financial Market Trends Europe vs US report has shown that the US financial markets had increased in size compared to Europe across eight different indicators, for example foreign equity trading, equity market turnover and domestic bonds. According to accountants KPMG, half of all private equity deals are now being completed under distressed conditions.Yesterday, the International Monetary Fund (IMF) warned countries not to scale back stimulus measures to fight the global recession as that could jeopardize a return to weak growth next year.
GBP Public Finance, GBP Public Sector Net Borrowing, GBP M4 Money Supply, CAD Leading Indicators, USD Producer Price Index, USD PPI Ex Food and Energy, USD Housing Starts, USD Building Permits, CAD Bank of Canada Interest Rate Decision.

By Greg Secker

The Dow Jones industrial average fell 67.03 points, or 0.67 percent, to 9,995.91. The Standard & Poor’s 500 Index lost 8.88 points, or 0.81 percent, to 1,087.68. The Nasdaq Composite Index gave up 16.49 points, or 0.76 percent, at 2,156.80. The FTSEurofirst 300 index closed 0.8 percent lower at 1,009.62 points after trading at a high of 1,026.43 in the morning session. The benchmark Nikkei edged down 21.05 points to 10,236.51 after earlier falling as much as 1.3 percent. The Topix rose 0.5 percent to 905.80.

Russia is to launch its first international bond in a decade in a bid to boost its public finances. Yesterday, the Icelandic government stated that Iceland has reached a deal with the British and Dutch governments to reimburse them for compensating savers who lost money in the collapse of Icesave bank. According to the first official report into the directive, the European Union plans to crack down on hedge funds and private equity houses could cost the industries as much as €3.2bn.Iraqi oil officials are again in talks with Royal Dutch Shell, over revising its offer to operate the Kirkuk oilfield.  Yesterday, Iraq’s cabinet ratified a contract with BP and China’s CNPC to develop the Rumaila field.

Due for release today there is BoJ to Hold Quarterly Branch Managers’ Meeting in Tokyo, Bernanke, Yellen Speak at San Francisco, International Securities Transactions, Bernanke Speaks on Asia and Financial crisis in California.

By Greg Secker

The Dow Jones industrial average added 47.08 points, or 0.47 percent, to end at 10,062.94. The Standard & Poor’s 500 Index gained 4.54 points, or 0.42 percent, to 1,096.56. The Nasdaq Composite Index edged up 1.06 points, or 0.05 percent, to close at 2,173.29. Financial spread betters expected Germany’s DAX to open 25 to 30 points higher and France’s CAC-40 to open 16 to 19 points higher. The benchmark Nikkei was flat at 10,244.64. The Topix, which is less tech-heavy, fell 0.5 percent to 899.67.

Germany’s leading institutes have warned that the pace of economic recovery will not be sustainable and that the country’s banks may face a fresh crisis over the next year as bad debts begin to surface. Yesterday, there was further proof that the US economy was starting to recover from the recession as data showed that US consumer prices rose modestly in September. The US Labour Department reported the Consumer Price Index (CPI) rose 0.2 per cent in September on the previous month. Eurozone deflation widened to 0.3 per cent in September, inflation is expected to remain below the ECB’s target of just below two per cent for some time. According to a new survey by Alix Partners, two thirds of US and European business recovery professionals expect the number of restructurings to double next year as the downturn continues to bite. Yesterday the ECB slammed the car scrappage scheme that allows drivers to trade in bangers in exchange for a discount on a newer model. Europe’s central bank claimed that the benefits from the scheme had been limited and that its withdrawal could hurt the economy next year.

Due for release today there is CHF Retail Sales, EUR Euro-Zone Trade Balance, EUR Eurozone Trade Balance, CAD Consumer Price Index, CAD Consumer Price Index, CAD Bank Canada Consumer Price Index, USD Net Long-Term TIC Flows, USD Industrial Production.

By Greg Secker