Sep 10
1
US economic data helped ease concerns over global economic recovery
International Market Report 1st September 2010
FTSEurofirst 300 index gained 0.1% to 1,026.3. German DAX Xetra 30 climbed 0.2% to 5,925.2. French CAC-40 shifted up 0.1% to close at 3,490.8. DJIA gained 0.1% to 10,014.7. NASDAQ dropped 0.3% to 2,114.0. S&P 500 index closed marginally higher, at 1,049.3. Nikkei 225 index traded 1.0% higher, at 8,914.4. Hang Seng index is up 0.4%, at 20,617.5, while the Kospi index is trading 1.2% higher, at 1,764.0
Yesterday, European markets finished higher, as worries of a potential slowdown in the global economy eased, after US reported upbeat data on consumer confidence and home prices. MAN and BMW, gained 0.9% and 1.1%, amongst hopes of an increase in home demand, following jobs addition in the country. Metal stocks, Kloeckner & Co. and Rheinmetall, edged up 1.4% and 2.1% respectively, benefiting from broker upgrades. Bayer rose 2.4%, after results from its trial of anti-clotting drug Xarelto revealed that it was equally safe and effective to the standard therapy. Camaieu and Entrepose Contracting rose 2.2% and 5.6% respectively, after their first-half net income rose 4.8% to €32.7 million and 56% to €21.2 million, respectively.
US markets closed mixed yesterday, due better-than-expected data on consumer confidence and home prices were affected by concerns due to a decline in the Chicago manufacturing activity, and on fears that the Fed might rule out large scale asset purchases. Hopes of a takeover offer buoyed both Saks and Dean Foods, while Rex Energy rallied 10.2%, after Sumitomo agreed to pay the company $140.4 million for rights to Marcellus Shale assets in Pennsylvania. However, gains were almost erased, as minutes from the recent Federal Reserve meeting indicated that QE is possible only if the outlook for the economy weakened “appreciably”. Monsanto eased 5.8%, after it lowered its earnings estimates and gave a dismal full year outlook. 3M fell 1.4%, after stating that it would acquire Israel-based, Attenti Holdings. This morning, Asian markets are trading higher amongst hopes of a revival in global economy. In Japan, housing stocks, Mitsui Fudosan and Mitsubishi Estate paced increase, after Japan’s housing starts in July rose 4.3% on an annual basis. Nippon Yusen rose, after Morgan Stanley raised its price estimates for the stock. In Hong Kong, rises in HSBC Holdings and Industrial & Commercial Bank of China led the Hang Seng index higher. In South Korea, Kia Motors led auto stocks higher, after it prevented a possible strike by inking a wage increase agreement with its labour union.
Due for release today is the CNY Manufacturing PMI, AUD GDP q/q, USD ADP Non-Farm Employment Change and the USD ISM Manufacturing PMI.
