Nov 09
13
Morning Call 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
