WORLD MARKET UPDATES
https://globaleconomic-trendsanalysis.blogspot.com/2011/03/world-market-updates_09.html
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With technology stocks helping to lead the way lower, stocks have come under pressure over the course of early trading on Wednesday. The major averages have all slid into negative territory, with the tech-heavy Nasdaq showing a notable move to the downside. The early weakness in the markets may be partly due to an increase by the price of oil, which is moving back to the upside after ending the previous session in the red. Crudefor April delivery is currently up by $0.31 at $105.33 a barrel. Networking stocks are posting particularly steep losses in early trading, dragging theNYSE Arca Networking Index down by 2.4 percent. The weakness in the sector comes after Finisar (FNSR) provided disappointing fourth quarter guidance. Semiconductor and electronic storage stocks are also under pressure, reflecting the weakness in the tech sector, while significant weakness is also visible among airlinestocks. The major averages are currently lingering near their lows for the young session. TheDow is down 55.47 points or 0.5 percent at 12,158.91, the Nasdaq is down 25.84 points or 0.9 percent at 2,739.93 and the S&P 500 is down 7.69 points or 0.6 percent at 1,314.13. | |||||||||||
European Market Reports | |||||||||||
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European Stocks Slightly Positive Amid Portugal Debt Auction European stocks were struggling for direction on Wednesday, with traders blaming uncertainty about developments in the Middle East and volatile oil prices. Markets were closely watching the results of a Portuguese debt auction. Two days after a new downgrade for Greece raised fears about the regions sovereign debt problems,Portugal was able to sell one billion euros of 2013 bonds. However, borrowing costs were the highest since the country joined the euro, signaling a bailout may be in the cards. The Euro Stoxx 50 benchmark index of euro zone stocks was up 0.43 percent to 2,958.07, recovering early losses. Factoring in U.K. companies, the Stoxx Europe 50 index was up 0.03 percent at 2,655.61. Around Europe, Germany's DAX was up 0.74 percent to 7,217.44, France's CAC-40was up 0.30 percent at 4,027.21, U.K.'s FTSE 100 was down 0.11 percent at 5,968.31, and Switzerland's SMI was virtually unchanged. at 6,510.34. In major merger news, Daimler AG and British engine manufacturer Rolls-Royce Group Plc confirmed Wednesday they will form a joint venture that will launch a public tender offer to take over diesel engine maker Tognum AG. Daimler shares were up 1.2 percent, Tognum jumped 6.5 percent, and Rolls Royceadded 2.6 percent. U.K. insurer Prudential Plc Wednesday reported a more than doubled profit for the year 2010, boosted by strong results from its Asia and US operations. Market players said the results exceeded expectations and welcomed an announced dividend. Prudential shares rose 4.5 percent. European Aeronautic Defence and Space Company NV reported its fiscal 2010 net income of 553 million euros or 0.68 euros per share compared with a loss of 763 million euros or 0.94 euros per share a year ago. Commerzbank analyst Frank Skodzik said EADS' results for the fourth quarter were "a little better than expected," according to dpa-AFX. EADS shares were up 2.8 percent. Highlight Communications AG reported consolidated sales of around CHF 430 million for the fiscal year 2010 compared to CHF 517.9 million for the fiscal year 2009. Highlight shares were up 4.3 percent. An advisory panel of the Food and Drug Administration declined to endorse the highest proposed dose of Novartis AG's new lung drug called indacaterol, but backed approval of the drug at a lower dose. Novartis shares were down percent. BioMerieux SA, the maker of HIV and hepatitis tests, has set an annual sales growth target of about 7-9 percent at constant exchange rates between 2010 and 2015. Shares were down 2 percent in Paris. Fernando Rodes Vila, Chief Executive Officer of French advertising group Havas SA, stepped down from his position to help the company embark on a new development phase by resuming external growth. Havas stock was down 4 percent in Paris. | |||||||||||
Asia Market Reports | |||||||||||
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Indian Market Ends Higher For Second Day A seat-sharing pact signed between the estranged UPA coalition partners DMK andCongress for the upcoming assembly polls in Tamil Nadu and easing Brent crudeprices which dropped below $113 a barrel at one point in Asian trading today on speculation about oil output increase by OPEC helped the Indian market end higher for a second day in a row on Wednesday. Erasing early losses, the benchmark 30-share BSE Sensex rose to a high of 18,583 in the afternoon trading before paring gains and ending 30 points or 0.16 percent higher at 18,470. Sixteen of its components closed in the green. The 50-share Nifty rose by 10 points or 0.18 percent and the BSE mid-cap and small-cap indexes ended up 0.65 percent and 0.82 percent, respectively. The market breadth was fairly positive, with 1640 gainers versus 1224 decliners on the BSE. Realty,consumer durable and auto stocks led the gainers, while healthcare and IT stocks closed on a subdued note. Energy giant Reliance Industries rose a percent after the Directorate General of Hydrocarbon said that the company's gas output from the KG basin could go up from 53 million standard cubic meters of natural gas per day to 67 million units by April this year. Hero Honda Motors added a little over a percent after Hero Group agreed to buy Honda Motor's 26 percent stake in their joint venture for $851 million. Maruti Suzuki (up 0.76 percent) and Tata Motors (up 0.16 percent) closed firm after data released by theSociety of Indian Automobile Manufacturers revealed domestic car sales rose 23 percent to a record high in February. State-owned oil marketing companies such as BPCL, HPCL and IOC eased by 1-2 percent on expectations that they will not raise fuel prices before next month's key state elections. Suzlon Energy shed 0.63 percent after Spanish wind turbine maker Gamesa said it has no plans to buy a stake in the Indian company. Oil explorer Cairn India fell 2.23 percent as oil prices fell for a second day in New York, weighed by American Petroleum Institute data showing a rise in U.S. crude inventories. IT stocks closed on a mixed note as the Indian rupee stayed firm on Wednesday amid expectations of dollar inflows at next week's long-term government and corporate debt auction. Infosys, which is reportedly looking to acquire technology companies that specialize in providing health-care and government services, ended down 0.62 percent, but TCS rose 0.58 percent and Wipro ended up 0.31 percent. Among metal stocks, aluminum maker Hindalco rose 0.40 percent on a brokerage upgrade. Sesa Goa gained 1.10 percent, NALCO added nearly 2 percent and SAILclosed 2.31 percent higher, while Sterlite Industries lost 1.19 percent and Tata Steelended down 0.31 percent. JSW Steel rallied 3.20 percent on fund raising reports. Entegra hit the 20 percent upper circuit limit after announcing plans to raise funds worth Rs.1,500 crore. Tata Coffee climbed 13 percent, adding to previous session's gains. Shares of tea manufacturing companies such as Jay Shree Tea & Industries,Harrisons Malayalam and Mcleod Russel India jumped by 8-9 percent, boosted by data showing a decline in January production due to bad weather conditions. Battered Reliance Communication soared over 9 percent on bargain hunting, while rivals Bharti Airtel and Idea Cellular slipped about half a percent each. Talwalkers Better Value Fitness rallied 12 percent after it opened a new health club in Tiruchirapalli, Tamil Nadu. Ipca Laboratories advanced 4.40 percent after its formulations manufacturing unit in Indore received good manufacturing practices certificate from the U.K. health regulator. Infrastructure stocks such as GMR Infrastructure (up 1.25 percent), Nagarjuna Construction (up 0.50 percent) and Jaiprakash Associates (up 1.19 percent) saw fresh buying. Elsewhere, most Asian stocks advanced on Wednesday after U.S. stocks rose overnight and data showed Japanese machinery orders rose more than expected in January 2011. European stocks fluctuated in early trading, as reports about easing tension in Libya offset fresh concerns about the levels of euro-region government debt. The euro fell against the dollar ahead of a Portuguese bond auction and the Dow futures were little changed. | |||||||||||
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Euro On Pause As Portugal Debt Auction Raises Bailout Chatter The euro barely budged on Wednesday, as traders took a wait and see approach to developments in the Middle East, where political unrest threatens to de-stabilize the region. A closely-watched bond auction in Portugal failed to quell speculation that the debt-ridden nation will need a bailout from its cousins in the euro zone. Portugal sold its full allotment of 1 billion euros in bonds, but at a borrowing costs higher than at any point since it joined the monetary union. The euro remained on pause for a second day against the dollar, improving slightly to $1.3925. Earlier in the week, the euro touched a 4-month peak above $1.40 amid signs the European Central Bank will raise interest rates in April. The euro continued to level off versus the sterling ahead of tomorrow's Bank of England interest rate call. The pair held near GBP 0.86 after the euro touched a weekly low of 0.8563 overnight. There was little movement versus the yen, with the pair holding a tight range near Y115 for the past five days. In economic news from around the globe, German industrial production grew more than expected in January, reversing a decline in the previous month. The seasonally and calendar-adjusted production rose 1.8 percent month-on-month in January, the Federal Ministry of Economics and Technology said Wednesday. Economists had forecast a 1.7 percent rise for February. Meanwhile, applications for U.S. home mortgages jumped to the highest level in three months last week amid improvements in the employment situation, the Mortgage Bankers Association said. Looking ahead, the U.S. Commerce Department is due to release its wholesale inventories report at 10 AM ET. Economists expect wholesale inventories at the end of January to show a 1 percent increase.
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