Sep 10
3
US reported better-than-expected pending home sales data
International Market Report 3rd September 2010
FTSEurofirst 300 index dropped 0.1% to close at 1,054.9. German DAX Xetra 30 edged down marginally to 6,083.9. French CAC-40 rose 0.1% to settle at 5,371.0. DJIA gained 0.5% to 10,320.1. NASDAQ climbed 1.1% to 2,200.0. S&P 500 index closed 0.9% higher, at 1,090.1. Nikkei 225 index is trading 0.2% higher, at 9,081.9. Hang Seng index is up at, 20,877.1, while the Kospi index is trading 0.1% higher, at 1,778.0.
Yesterday, other European markets finished mixed as gains were almost pared after investors decided to wait on the sidelines, ahead of release of the US nonfarm payrolls data for August. Construction stocks, Lafarge, CRH and Saint-Gobain, increased between 0.7% and 1.0%, after US pending home sales for July rose 5.2%. Carmakers, Renault and BMW, added 1.2% and 1.6% respectively, after Ziarul Financiar reported that Dacia unit of the former has planned to sell its Duster sport-utility vehicle in Britain, Russia, Brazil and India, while the latter rose after its namesake brand’s August US sales gained 1.6%. On the otherhand, German industrial stocks, Siemens and Schneider Electric, fell 0.3% and 1.1%, after Deutsche Bank downgraded both the stocks due to declining industrial activity in Europe. Deutsche Bank dropped 3.2%, after Bank of America Merrill Lynch added it to its list of “least preferred” stocks. Yesterday, US markets closed higher due to concerns of a slowdown in global economy eased, after US reported upbeat economic data. Housing related stocks, DR Horton, Home Depot and Lowe’s, increased between 2.5% and 3.3%, due to pending July home sales unexpectedly rising to 5.2%. Technology stocks, Hewlett-Packard and Dell, gained 1.2% and 2.0% respectively, after the former raised its bid for 3Par to $33 per share, while the latter stepped back from the bid.
Burger King jumped 25%, after agreeing for the acquisition by 3G Capital. Anadarko Petroleum rose 3.0%, after an Australian newspaper reported that BHP Billiton might acquire the company. Asian markets are trading higher this morning, taking hint from overnight gains on the Wall Street. In Japan, auto makers, Toyota Motor and Mazda Motor paced gains, after the former posted a rise in August car sales in China. Exporters, Elpida Memory and Canon rose, as the yen weakened against the dollar. In Hong Kong, Jiangxi Copper rose, due to commodity prices advancing. Ping An Insurance climbed, after declaring it would merge its bank unit into Shenzhen Development Bank. In South Korea, technology stocks, LG Electronics, Hynix Semiconductor and LG Display gained values, tracking gains in their US peers.
Due for release today is the GBP Services PMI, USD Non-Farm Employment Change, USD Unemployment Rate and ISM Non-Manufacturing PMI.
