Greg Secker – Global Market Update

European shares surged 2.1 percent on Monday, with better-than-expected U.S. housing data boosting optimism about the recovery. The Dow Jones industrial average gained 132.79 points, or 1.29 percent, to end at 10,450.95. The Standard & Poor’s 500 Index gained 14.86 points, or 1.36 percent, to 1,106.24. The Nasdaq Composite Index added 29.97 points, or 1.40 percent, to close at 2,176.01. The benchmark Nikkei fell 1 percent to 9,401.58, its lowest finish since July 17. The broader Topix declined 1.1 percent to 829.22.

In November, the Eurozone economic activity rose at its fastest pace for two years, raising hopes that the economic recovery is underway. The data shows the Eurozone economy made further progress after emerging from its worst ever recession in the third quarter. THE interest rate on US Treasury bills has dropped below zero in a scenario last seen in 1938, leaving investors in the strange position of paying the government for the privilege of lending it money. In October, sales numbers for previously owned homes in the US jumped more than 10 per cent.

Due for release today is the JPY Bank of Japan Monthly Report, CHF UBS Consumption Indicator, EUR German Gross Domestic Product, EUR German Private Consumption, EUR German IFO – Expectations, EUR German IFO – Business Climate, EUR German IFO- Current Assessment.

By Greg Secker

The Dax closed 85 points lower at 5,702, the Cac lost 67 points to 3,760 and the Swiss Market index shed 82 points to close at 6,286. The Dow Jones industrial average dropped 93.87 points, to end at 10,332.44. The Standard & Poor’s 500 Index fell 14.90 points, to 1,094.90. The Nasdaq Composite Index dropped 36.32 points, or 1.66 percent, to 2,156.82. The Nikkei fell 51.79 points to a four-month closing low of 9,497.68. The Topix index edged up 0.1 percent to 838.71.

Companies in Europe are setting increasingly ambitious growth targets for emerging markets, three of the continents biggest names aiming to source half their revenues from them within six years. European Union leaders on Thursday night awarded two of its top jobs to politicians relatively unknown on the international stage, after almost a decade of wrangling over how to project Europe’s global presence. At a Brussels summit the EU picked consensus builders rather than star names, choosing Herman Van Rompuy, Belgium’s centre-right prime minister, over Tony Blair as the EU’s first full-time president, the FT reports.

Due for release today is the JPY Bank of Japan Interest Rate Decision, NZD Credit Card Spending and NZD Credit Card Spending.

By Greg Secker

The Dow Jones industrial average dropped 11.11 points, to 10,426.31. The Standard & Poor’s 500 Index dipped just 0.52 of a point, to finish at 1,109.80. The Nasdaq Composite Index lost 10.64 points, or 0.48 percent, to end at 2,193.14. The Nikkei fell earlier to a four-month intraday low of 9,496.07. The Topix index, which broke below its 200-day moving average last week.

Yesterday, EU authorities approved plans by three major European banks to sell chunks of their operations in return for state aid, marking the latest regulatory-enforced financial break-ups. Yesterday, US gold futures passed the $1,153 mark for the first time as investors piled into precious metals as an alternative to the weaker US dollars. Silver, platinum and palladium reached their highest prices in at least 14 months. President Barack Obama has warned that the US economy may slip into a “double-dip recession” unless urgent steps are taken to control government borrowing. Obama said his administration face difficulties whilst trying to encourage job creation while reducing the soaring budget deficit. Construction of new homes in the United States hit a six month low in October, providing more evidence of the economy’s sluggish recovery.

Due for release today is the AUD Average Weekly Wages, AUD Average Weekly Wages, JPY All Industry Activity Index, CHF Trade Balance, GBP Public Finances, GBP Retail Sales, GBP Public Sector Net Borrowing, GBP Major Banks Mortgage Approvals.

By Greg Secker

European equities were set to open higher Today, with investors waiting for minutes from the Bank of England and macro-economic data from the U S. The Dow Jones industrial average rose 30.46 points, to close at 10,437.42. The Standard & Poor’s 500 Index rose up 1.02 points, or 0.09 percent, to 1,110.32. The Nasdaq Composite Index added 5.93 points, or 0.27 percent, to 2,203.78. The benchmark Nikkei shed 53.13 points to 9,676.80. The Topix lost 0.8 percent to 850.06, its lowest close since May.

US President Barack Obama is visiting The Great Wall of China today –as his tour of the region ends it seems the stumbling block of China’s currency will be just as tough to surmount. In September, the Eurozone unexpectedly posted a trade surplus, with exports expanding by a healthy 5.5 per cent on the previous month. Over the third quarter as a whole, exports rose by 3.7 per cent, which was the first quarterly rise since the second quarter of 2008. Yesterday, figures for October showed that America’s recovery in industrial production may be loosing momentum. Activity only rose 0.1 per cent on the month, which was entirely down to 1.6 per cent rise in utilities output. The September figure was also revised lower.

Due for release today there is the GBP Bank of England Meeting Minutes, EUR Euro-Zone construction output, GBP U.K. CBI Industrial Trends Total, CAD Bank Canada Consumer Price Index, USD Consumer Price Index and USD Consumer Price Index and  USD Housing Starts.

By Greg Secker

The Dow Jones industrial average added 73.00 points, or 0.72 percent, to end at 0,270.47. The Standard & Poor’s 500 Index rose 6.24 points, or 0.57 percent, to 1,093.48. The Nasdaq Composite Index rose 18.86 points, or 0.88 percent, to close 2,167.88. Financial bookmakers expected the leading European stock indexes rise on Monday, extending last week’s gains. In moderate trade the benchmark Nikkei gained 20.87 points to 9,791.18. The Topix lost 0.7 percent to 860.42.

Yesterday, Obama’s administration argued against plans proposed by Chris Dodd, the Senate banking committee chairman, to merge banking regulators into one. From July to September Japan’s gross domestic product (GDP) grew a larger-than-expected 1.2 per cent, as the previous Liberal Democratic administration’s stimulus boosted consumer spending, government data showed today. Up to six companies will try to go public this week, which could be the US’s busiest week of the year for initial public offerings. A record number of US companies beat earnings expectations in the third quarter, however investors were disappointed to learn that a big portion of their profits came from cost-cutting.

Due for release today is the GBP Rightmove House Prices, GBP Rightmove House Prices, USD Advanced Retail Sales, CAD Manufacturing Shipments, USD Retail Sales Ex Auto and Gas.

By Greg Secker

The Dow Jones industrial average fell 93.79 points, to 10,197.47. The Standard & Poor’s 500 Index dropped 11.27 points, to 1,087.24. The Nasdaq Composite Index lost 17.88 points, or 0.83 percent, to 2,149.02. The FTSEurofirst 300 index of top European shares ended up 0.1 percent at 1,014.91 points, the highest close since Oct. 21. The index is up 22 percent in 2009 and has surged 57 percent since hitting a record low in March. The Nikkei lost 0.2 percent on the week for its third straight week of losses, the first such negative stretch since the three weeks end Oct. 2. In thin trade, it lost 34.18 points on the day to close at 9,770.31.The Topix fell 0.1 percent to 866.80.

Eurozone industrial production rose again in September by 0.3 per cent on the previous month, raising hopes that tomorrow’s third quarter GDP figures could see strong gains. The rise meant that output in the three months to September was 2.2 per cent higher on the previous quarter. Yesterday, the European Union introduced radical new accounting rules for banks and insurers across the world, except in the US and Brussels. To cover the cost of rising banking failures, US banks are to pay $45bn (£27bn) to the Federal Deposit Insurance Corp (FDIC). In the US the demand for new home loans fell to a nine year low but the number of US mortgage applications went up last week as lower fixed rates increased the call for refinancing. The Mortgage Bankers Association has stated, that an average 30-year mortgage rates fell 0.07 percentage point to 4.9 per cent in the week ended November 6, making a new run toward the record low of 4.61 percent set in March.

Due for release today is the JPY Industrial Production, EUR German Gross Domestic Product, EUR French Gross Domestic Product, EUR French Gross Domestic Product, EUR Italian Gross Domestic Product, EUR Euro-Zone Gross Domestic Product, USD Trade Balance, USD Import Price Index.

By Greg Secker