Greg Secker – Global Market Update

On Wednesday European shares rose in early trade, which extended the recent rally, banks leading the way. At 0808 GMT, the FTSEurofirst 300 was up 0.3 percent at 1,038.08 points, after it hit a 14-month closing high in the previous session. The Dow Jones industrial average rose up 50.79 points, ending unofficially at 10,464.93. The Standard & Poor’s 500 Index climbed 3.97 points, finishing unofficially at 1,118.02. The Nasdaq Composite Index gained 15.01 points, closing unofficially at 2,252.67. So far this year the Dow Jones has risen 19%, the S&P 500 has jumped 20% while the Nasdaq has gained over 40%. The Nikkei .N225 rose194.56 points to 10,378.03. The Topix jumped 1.3 percent to 903.06.

Fitch has warned Britain and France that they risk losing their AAA status unless they map out a clear path to budget discipline over the next year.  The quarter growth figure for the US economy was revised down to 2.2% from an initial reading of 3.5%. However the market was even more impressed by the jump in house sales. The National Association of Realtors; has reported that in November the sales of existing homes jumped 7.4% to an annual rate of 6.54m units, as first-time buyers rushed to take advantage of tax credit. This was the fastest pace since February 2007, which beat economists’ forecasts of an increase to 6.25m from 6.1m in October. Later today the Office of Fair Trading (OFT) will decide whether it is going to continue its test case against banks over the fairness of their overdraft charges. Last month the Supreme Court ruled that the OFT could not use a part of the unfair consumer contract regulations to decide if bank charges are fair. Despite a stronger dollar oil prices gained as traders cheered Wall Street gains ahead of the holiday season. On Tuesday Gold continued to move downwards with gold for February delivery falling $9.30 and settling to a level of $1,086.70 an ounce. The Dubai Financial Market offered $121m to buy up rival exchange Nasdaq Dubai.

Due for release today is the GBP – MPC Meeting Minutes, CAD – GDP m/m and USD New Home Sales.

By Greg Secker

On Monday, the pan-European FTSEurofirst 300 index rose 1.5 percent to close at 1,027.87 points, after it fell in the previous two sessions. The Dow Jones industrial average rose up 85.25 points, to close at 10,414.14. The Standard & Poor’s 500 Index gained 11.58 points, to close at 1,114.05. The Nasdaq Composite Index climbed 25.97 points, to close at 2,237.66. In moderate trade, the benchmark Nikkei gained 194.56 points to close at 10,378.03. The Topix advanced 1.3 percent to 903.06.

According to new research published today, house prices will continue to creep up in the New Year but end next year just one to two per cent higher than now. The RICS predicts that the housing market will revive and that transactions will rise to a monthly average of 70,000 from 55,000 to 60,000. According to Open Europe, the top 100 most costly EU regulations introduced to the UK since 1998 will cost the economy approximately £184bn by 2020. Today, the Office of Fair Trading (OFT) will confirm whether it is going to continue its test case against banks over the fairness of their overdraft charges. On Monday, banking regulators said that delinquencies among US prime mortgages rose nearly 20 percent in the third quarter from the second quarter. Yesterday, Iceland’s central bank stated that it had received a loan tranche worth €300million from Nordic countries, this is part of the country’s loan program with the International Monetary Fund (IMF). Today, Opec producers are set to leave output limits unchanged at a meeting in Angola.

Due for release today is the GBP Current Account, USD Existing Home Sales and the NZD GDP.

By Greg Secker

The FTSEurofirst 300 index of leading European shares closed lower at 1,013.15 points. On Friday, European shares closed lower, with banks falling as ongoing concerns over tough new Basel regulations weighed. The Dow Jones industrial average gained 20.63 points, to 10,328.89. The Standard & Poor’s 500 Index rose 6.39 points, or 0.58 percent, to 1,102.47. The Nasdaq Composite Index added 31.64 points, or 1.45 percent, to 2,211.69. The Nikkei climbed 41.42 points to 10,183.47, which was its highest finish since Oct. 27, on the other hand the Topix edged down 0.2 percent to 891.48.

Yesterday, the governor of the central bank said that in a year or two Irish banks that receive state capital will be strong enough to sell their possible majority government stakes to foreign investors. Yesterday, Algeria’s energy minister Chakib Khelil said that OPEC will keep supply unchanged when it meets tomorrow in Angola. British businesses have labeled the Copenhagen climate summit as a “missed opportunity” as concerns are growing that London’s leading position in the carbon trading market is under threat.

Due for release today is the CAD Core Retail Sales m/m and the NZD Current Account.

By Greg Secker

Today, European shares rose in early trade, banks were among the strongest performers. At 0812 GMT, the FTSEurofirst 300 index was up 0.3 percent at 1,021.12 points. The Dow Jones industrial average dropped 11.56 points, or 0.11 percent, to 10,489.49. The Standard & Poor’s 500 Index slipped 0.88 points, or 0.08 percent, to 1,113.23. The Nasdaq Composite Index gained 2.35 points, or 0.11 percent, to 2,214.45.The Nikkei added 93.93 points to 10,177.41, which was its highest finish since October 27. The Topix added 1.5 percent to 898.29.

Yesterday, the Greek Prime Minister George Papandreou held rare crisis talks, a day after he announced spending cuts. Trade unions have called for a 24-hour nationwide strike for tomorrow in order to undermine efforts to push through reforms. German investor confidence declined for a third consecutive month, which raised concerns about the outlook for recovery. The ZEW index fell to 50.4 in December from 51.1 the previous month. For the Eurozone, the economic expectations fell in December by 3.8 points to 48 points.

Due for release today is the GBP Claimant Count Change, USD Building Permits, USD Core CPI, USD FOMC Statement, USD Federal Funds Rate and NBNZ Business Confidence.

By Greg Secker

At 0835 GMT, the FTSEurofirst 300 index of top European shares was down at 1,017.43 points. European stocks turned negative in morning trade today, halting a three-session winning streak while investors awaited U.S. macro data. The Nikkei .N225 fell 22.20 points to 10,083.48, while the Topix remained relatively flat at 884.63. The Dow Jones industrial average climbed 29.55 points, to end at 10,501.05. The Standard & Poor’s 500 Index jumped 7.70 points, or 0.70 percent, to 1,114.11. The Nasdaq Composite Index climbed 21.79 points, or 0.99 percent, closing at 2,212.10.

According to figures from RICS, the proportion of estate agents reporting an increase rather than a decrease in house prices is at its highest for three years. The Times reports, that 35% of surveyors reported rising rather than declining prices in the past three months, up from 34% in October and the highest quarterly reading since November 2006. ABU DHABI’S $10bn (£6bn) bailout of Dubai has given some breathing space for Dubai to restructure. Yesterday, the Greek prime minister announced a crackdown on corruption and tight controls on spending, however many market-watchers expected more decisive measures to reduce the budget deficit. The FT reports, that George Papandreou stated that public sector workers would receive wage rises next year in spite of Greece’s deteriorating public finances.
According to two sources close to European Union negotiators, support for a global tax or emissions trading scheme in shipping and aviation is growing at the Copenhagen climate change talks.

Due for release today is the GBP RICIS House Price Balance, AUD Dwelling Starts, AUD Reserve Bank of Australia Meeting Minutes, GBP Consumer Price Index, EUR German ZEW Survey, EUR German Zew Survey, EUR Euro-Zone ZEW Survey, CAD Labor Productivity, USD Producer Price Index, USD PPI Ex Food and Energy, USD Industrial Production and USD Capacity Utilization.

By Greg Secker

The Dow Jones industrial average gained 65.67 points, at 10,471.50. The Standard & Poor’s 500 Index increased by 4.06 points, at 1,106.41. The Nasdaq Composite Index was down 0.55 point, or 0.03 percent, at 2,190.31. In early trade this morning European shares rose extending their winning streak to three-sessions, as Dubai debt fears eased banks were again the major gainers. The Nikkei edged down 2.19 points to 10,105.68, previously falling as low as 10,009.60.The Topix fell 0.4 percent to 885.08.

According to the US, Iraq’s string of deals with oil majors has boosted its importance ahead of Opec’s next meeting. The oil cartel is set to meet on 22 December, all eyes will be on Iraq following new ambitious output targets set by Baghdad over the weekend. In a new draft budget due to be approved on Wednesday, Germany aims to more than double net new borrowing next year and also increase public spending. The total new debt is expected to approach €100bn. Today, Dubai faces the first hurdle to resolve its debt crisis as the $3.5bn bond by state-owned firm Nakheel expires.

Due for release today there is the JPY Industrial Production, JPY Capacity Utilization, EUR Euro-Zone Employment.

By Greg Secker

FTSE Eurofirst 300 index dropped 1.0% to 994.6.
DJIA gained 0.5% or 51.1 points to 10,337.1. NASDAQ rose 0.5% or 10.7 points to 2,183.7. S&P 500 index closed 0.4% higher, at 1,096.0.
Nikkei 225 index is trading 1.6% lower, at 9,848.3.

In Asia, crude oil for January delivery is trading 3 cents lower at $70.64 per barrel.

Other European markets finished lower yesterday, with the FTSE Eurofirst 300 index ending at the lowest close since 30th November, as investor’s appetite for riskier assets took a beating.  Spanish banks, Santander and BBVA, lost 4.1% and 4.0% respectively, after ratings agency, Standard & Poor, downgraded its outlook on Spain from “Stable” to “Negative, amid fears over the country’s economic growth and high fiscal deficit. Greek Banks, National Bank of Greece, Piraeus Bank, Alpha Bank and EFG Eurobank, fell between 6.6% and 8.4%, amid continuing concerns over the country’s public finances. Drug makers, Roche Holding, Sanofi-Aventis and Novartis, paced declines, amid reports that EU’s antitrust authorities had raided several pharmaceutical companies, on suspicion of misusing a dominant position in the market. However, the losses were limited, following a higher-than-expected rise in Germany’s exports in October. FTSE Eurofirst 300 index dropped 1.0% to 994.6. German DAX Xetra 30 slipped 0.7% to 5,647.8. French CAC-40 edged down 0.7% to settle at 3,757.4.  

US markets ended higher, as risk appetite returned among investors, lifting financial, technology and material stocks. Financial stocks, Capital One and Zions Bancorp, rose 2.7% and 1.8% respectively, after US Treasury Secretary, Timothy Geithner, stated that the government would extend $700 billion financial bailout fund till October 2010. 3M rallied 3%, after Citigroup upgraded the stock to “Buy” from “Hold” citing the likelihood of better financial returns and outperformance in 2010. Apple climbed 4.2%, after Oppenheimer stated that the company is preparing to launch a tablet personal computer till April 2010. Investor sentiment took a further boost, after US total wholesale inventories surpassed market expectations and rose 0.3% in October, reversing a 12-month declining trend. DJIA gained 0.5% or 51.1 points to 10,337.1. NASDAQ rose 0.5% or 10.7 points to 2,183.7. S&P 500 index closed 0.4% higher, at 1,096.0.  
Posted by Greg Secker

FTSE Eurofirst 300 index eased 1.6% to close at 1004.4.
DJIA eased 1.0% or 104.1 points to 10,286.0. NASDAQ fell 0.8% or 16.6 points to 2,173.0. S&P 500 index closed 1.0% lower, at 1,091.9.

Nikkei 225 index is trading 1.3% lower, at 10,004.1.
In Asia, crude oil for January delivery is trading 55 cents higher at $73.17 per barrel.
Other European markets finished lower yesterday, as troubles flared once again in the financial sector, amid worries over banks’ exposure to Dubai World and ratings downgrade for Greece. Greek Banks, National Bank of Greece, Piraeus Bank and EFG Eurobank, fell between 6.5% and 10%, after Fitch Ratings cut Greece’s debt rating to “BBB+” with a negative outlook. The banking sector also came under pressure, amid fears about the size of losses facing Nakheel, a unit of Dubai World. Irish banks, Allied Irish Banks, Bank of Ireland and Irish Life & Permanent, were down between 4.5% and 8.8%, as valuation concerns of bank’s toxic assets grew. Investor sentiment took a further hit, as German industrial output unexpectedly fell 1.8% in October, against market expectations of a rise. FTSE Eurofirst 300 index eased 1.6% to close at 1004.4. German DAX Xetra 30 slipped 1.7% or 96.2 points to 5,688.6. French CAC-40 edged down 1.4% or 54.8 points to settle at 3,785.3. 

Posted by Greg Secker