Market Update

European Stocks Struggle, Linde Falls

123jump.com Staff
09 May, 2008
New York City

European markets in the region fell after financials and insurance companies declined. AIG, one of the world

Record Crude; Valero, Tesoro, Stocks Decline

123jump.com Staff
09 May, 2008
New York City

AIG swung to a loss in the first quarter after it took a charge of $9 billion in its credit derivative portfolio. The insurance comapany also plans to raise $12.5 billion through stock offering to bolster its capital base. AIG stock fell nearly 9%, as it raced to 10-year low. UK home repossessions rose to a 10-year high. European markets fell more than 1% in the region. Inflation in India and China surged on rising food and energy costs.

UK Home Possessions Surge

123jump.com Staff
09 May, 2008
New York City

UK stocks fell after home repossessions surged, but from a low level in many parts of the island nation. The FTSE 100 index fell 1.05% to 6,204 on weakness in mining, financials and home builder stocks. Crude oil in London and New York trading rose to new intra-day high above $126 a barrel. Experian Group led gainers in the FTSE 100 index with a rise of 3.5% and Carphone Warehouse led decliners with a fall of 7.3%.

Sensex Falls 2%, Elevated Inflation

123jump.com Staff
09 May, 2008
New York City

Wholesale price index in India fell in the latest period measured two weeks ago. Rising energy and food prices continue to fuel inflation above the target set by the Reserve Bank of India. Sensex index fell 2% to 16,737. Trading on two largest stocks exchanged was 20,000 crore rupees or $5 billion. ICICI Bank, HDFC Bank and State Bank of India fell in trading. Reliance Industries fell 5.2%.

PPI in China Surges; Stocks Decline

123jump.com Staff
09 May, 2008
New York City

Hong Kong stocks fell on mounting concern over the health of the global economy after Vice Premier Wang Qishan said inflation has evolved as the country

Tokyo Falls 2%; Bridgestone, Toyota Decline

123jump.com Staff
09 May, 2008
New York City

Nikkei 225 index in Tokyo trading fell 2.1% after weak earnings from Bridgestone and weaker outlook from Olympus and Toyota rattled investors. Toyota lowered its net sales and income for the current fiscal year. Bridgestone reported 1% decline in profit. Takeda Pharmaceuticals and Olympus lowered its outlook for the current fiscal year. In stock trading, utilities declined on record crude oil prices. Yokogawa Electric plunged 10% and led decliners in the index.

AIG Loss Drags Averages; Crude Reaches $125

123jump.com Staff
09 May, 2008
New York City

U.S. stocks fell in the morning trading after AIG reported a large loss and a plan to raise $12.5 billion. AG took a pre-tax charge of $9.5 billion in the quarter on credit market related losses. Crude oil surged to another record high and traded above $125 a barrel. March trade deficit fell to $58.2 billion as imports of oil and automobiles declined. But, deficit for the first quarter remained at elevated level. AIG stock traded near its 10-year low.

Commonwealth, David Jones Rise

123jump.com Staff
08 May, 2008
New York City

Commonwealth Bank of Australia surged 4% after the bank said it no longer needs additional capital. Recently the bank completed the $15.6 billion of wholesale funding. The news lifted stocks of other banks and helped ASX 200 to close higher. National Australia Bank Ltd, which reports its interim results on Friday, gained 1.6%, ANZ stock shed 0.6% and Westpac rose 3.6%. The troubled mall real estate operator Centro Retail obtained debt extension till the end of the year on additonal guarantees.

ECB, BoE on Hold; InBev Falls

123jump.com Staff
08 May, 2008
New York City

The European Central Bank and the Bank of England left rates unchanged as inflation hovers near or above target level. Unlike the Federal Reserve in the U.S., central banks are hawkish in Europe when it comes to inflation. Recent surge in crude oil price and worldwide food price surge have fueled inflation and fears of wage inflation. InBev, UniCredit and Raiffeisen International fell on earnings. Barclays, Royal Bank of Scotland and Commezbank fell after the rate decision.

Alcoa, U.S. Steel Lead Global Metals Rally

123jump.com Staff
08 May, 2008
New York City

U.S. stocks rose in the hope that a rise in April retail same store sales may continue for the rest of the year. Jobless claims at the end of last week dropped by 18,000. In Europe, the ECB left its key rate unchaged at 4% and the Bank of England left its rate at 5%. Both central banks appear to combat rising inflation. April housing starts in Canda fell 12%. Toyota fell after it offered gloomy earnings and sales outlook. News Corp earnings surged on asset swap.

Miners and Steel Stocks Rise, Toyota Falls

123jump.com Staff
08 May, 2008
New York City

U.S. stocks rebounded on the strength in retail, mining and metals and select financials. BHP Billiton, Vale, Cleveland Cliff, ArcelorMittal and Freeport McMoran led the gainers. Gold resurged after the ECB and the Bank of England left rates unchanged. Crude oil edged lower. Toyota Motor fell 4% after it offered gloomy outlook on sales and earnings for the current year but increased its dividend 20% on 4.5% rise in fiscal year 2008 earnings.

Ping An Falls; HK Reserves Decline

123jump.com Staff
08 May, 2008
New York City

Hong Kong reported 0.9% decline in foreign reserves in April to $160 billion and China will issue Rmb 28 billion or $4 billion of government bonds with 30 year maturity that will trade next week. Hang Seng fell 0.6% to 25,449 and CSI 300 in Shanghai trading lost 2.7% to 3,921. Refiners and airlines continue to decline as crude oil trades at a record high in the international markets.

Tokyo Stocks Fall, Weak Toyota Outlook

123jump.com Staff
08 May, 2008
New York City

Stocks in Japan tracked weakness in the U.S. and closed lower. Financial stocks fell the most on the worries that more losses may have to be taken on the new disclosure requirements from the U.S. regulatory agency SEC. Nikkei 225 index fell 1.3% to 13,943. Toyota Motor reported 9.8% rise in sales and 4.5% in earnings but offered lower sales and earnings outlook for the current year.

Retail Sales, Jobless Claims Lift Stocks

123jump.com Staff
08 May, 2008
New York City

U.S. stocks opened higher after the release of jobless data and same store retail sales. Discount retailers led gains in sales in April as families look for ways to save money. Costco, for the twelve months in a row reported same store sales rise above 5%. In April sales rose 6%, excluding gasoline sales. Wal-Mart sales rose 3.2%. The ECB and the Bank of England left rates unchanged at 4% and 5% respectively.

Lafarge, BAT, Deutsche Boerse Gain

123jump.com Staff
07 May, 2008
New York City

European markets closed higher on rising earnigs from companies despite a fall in factory ouput in the UK and falling orders in Germany. Earnings from Lafarge, Detsche Boerse, BAT and Commerzbank lifted market averages in the region. Swiss market index led the region with a rise of more than 1.3%. After the close U.S. indexes lost 1.8%.