Gains in New York Fail to Lift Europe

123jump.com Staff
28 Feb, 2007
New York City

U.S. stocks rebounded from their biggest plunge in four years as the Fed Chairman Bernanke reassured investors the economy is poised to grow and strategists advised investors against selling equities. European and Asian stocks slumped, while emerging markets had their steepest two-day drop in eight months in the wake of earlier U.S. sell-off. The Dow industrials added 0.4%. P&G jumped 3.1%, Sprint climbed $1.10 to $19.55. Hospira Inc. reported a 78% jump in earnings.

[R]4:30PM NY; 10:30PM Frankfurt; 2:45AM Mumbai - GLOBAL MARKETS[/R]
Yield on 10-year bond closed at 4.555% and the 30-year bond closed at 4.670%.

Gold decreased $13.900 to close at $673.300 a troy ounce, silver lost 39 cents to end at $14.300 a troy ounce and copper declined $59.500 to close at $6211.000 per metric ton.

Oil advanced 28 cents to close at $61.740 a barrel and heating oil increased 0.110 cents to finish at 178.040 cents a gallon. Natural gas lost 24 cents to close at $7.293 per MMBtu. Gasoline went up 1.890 cents to end at 183.500 cents a gallon.

Asian markets closed lower for a second straight session and extended the decline that rippled around the world the previous day. The decliners were led by Philippines with a decline of 7.92%, India with a decrease of 4.01% and Singapore with a loss of 3.72%. The only advancer was Taiwan with a gain of 0.02%. Australia lost 2.70%.

European markets finished lower after U.S. recession fears prompted bourses to extend losses sparked the previous day by a slump in the Chinese stock market. The decliners were led by Netherlands with a decrease of 2.02%, Belgium with a loss of 1.87% and U.K. with a decline of 1.82%. There were no advancers.

Latin America markets finished higher, rebounded after the region''s stock markets were pounded by a plunge in Chinese shares and disappointing U.S. economic data. The advancers were led by Brazil with a gain of 1.4%, Argentina with an increase of 0.72% and Mexico with an advance of 0.45%. There were no decliners. Canada gained 0.21% as banks lagged other sectors in recovering from Tuesday''s sharp fall.

[R]2:30PM NY, U.S. Market Movers[/R]

Audible Inc. ((ADBL)) surged 22% after the provider of digital audio content posted better-than-expected fourth-quarter results. The company reported a loss of $700,000, or 3 cents a share, on revenue of $23.3 million. During the year-earlier quarter, the company posted a loss of $2.2 million, or 9 cents a share, on revenue of $18.3 million.

Deckers Outdoor Corp. ((DECK)), shoe company, said quarterly earnings nearly doubled helped by strong full price selling of its UGG Brand fall collection throughout the holiday season. UGG Brand net sales for the fourth quarter rose 40.1% to $109.9 million, the company said in a statement. For the latest quarter, the company reported earnings of $23.5 million, or $1.82 a share, compared with $12.1 million, or 94 cents a share, in the year-ago period. Net sales for the quarter rose 36.7% to $124.4 million. Gross margins rose 790 basis points to 48.5%.

Dycom Industries Inc. ((DY)), engineering and construction services provider, said that its fiscal second-quarter net earnings increased to $5.59 million, or 14 cents per share, compared with $3.87 million, or 10 cents per share, in the year-ago period. Revenue climbed to $258.3 million versus $237.1 million in the same period a year earlier. Shares climbed 15.2%.

Hospira, Inc. ((HSP)), injectable drug maker, reported a nearly 80% jump in fourth quarter profit on higher product volumes, higher prices and favorable currency exchange. The company earned $47.4 million, or 30 cents per share, compared with $26.6 million, or 16 cents per share last year. On an adjusted basis, Hospira would have earned 43 cents per share, versus 32 cents per share in the last three months of 2005. Revenue reached $706.5 million, a gain of 9.3%. Shares went up 7.2%.

Kenneth Cole Productions Inc. ((KCP)) shares rose 12.5% after the footwear and clothing maker said its fourth-quarter profit rose 7%, ahead of analyst expectations. Kenneth Cole earned $8 million, or 39 cents per share, compared with $7.5 million, or 37 cents per share, for the same quarter in 2005. Revenue rose 2.2% to $122.4 million from $119.8 million in the previous year.

Leap Wireless International Inc. ((LEAP)), wireless service provider, reported a fourth-quarter net loss of $39.4 million, or 60 cents per share compared with the same quarter last year when the company posted a net profit of $4.95 million, or 8 cents per share. Revenue climbed to $315.5 million versus $228.9 million in the same quarter a year earlier. Shares rose 9%.

New Plan Excel Realty Trust ((NXL)) shares soared 14% to a new 52-week high after the shopping center developer agreed to be acquired for $3.4 billion in cash. New Plan said it is being purchased by affiliates of Australia-based Centro Properties Group for $33.15 per share.

Novatel Wireless Inc. ((NVTL)), which provides wireless broadband access services to the mobile communications market, said its fourth-quarter profit rose sharply, as the company broadened its product offerings to meet customer demand. Quarterly earnings increased to $2.4 million or 8 cents per share versus $121,000 during the same period in 2005. Revenue grew 58% to $77 million from $48.7 million in the same period a year ago. Shares climbed 4.2%.

Sprint Nextel Corp. ((S)), wireless carrier, said that its fourth-quarter profit increased 34% to $261 million, or 9 cents per share, with operating revenue up 7% to $10.44 billion. The company said 9% wireless revenue growth after adding 742,000 customers offset a 2% long-distance revenue decline. On an adjusted basis, its profit would''ve climbed 26% to 29 cents per share. Shares went up 6%.

Bitstream Inc. ((BITS)), font and typeface software developer, said that its fourth-quarter net earnings declined to $630,000, or 6 cents per share, compared with $788,000, or 8 cents per share, in the year-ago period. Revenue climbed to $5.55 million against $4.62 million in the same period a year earlier. Shares fell 30.8%.

Blount International Inc. ((BLT)), which makes outdoor products and industrial and power equipment, said that its fourth-quarter earnings declined to $9.04 million, or 19 cents per share, compared with $56.2 million, or $1.17 per share, in the year-ago period. The company said the results in the year-ago quarter were favorably impacted by a significant income tax benefit. Revenue decreased to $158.1 million versus $176.9 million in the same period a year earlier. Shares fell 8.1%.

Fremont General Corp. ((FMT)) tumbled 13% after the subprime lender postponed the release of its fourth-quarter results and said that it would not file its annual report with the Securities and Exchange Commission by Thursday''s filing deadline.

Joy Global ((JOYG)) slid 12% after the maker of mining equipment posted disappointing first-quarter results. The company earned $59.7 million, or 51 cents a share, on revenue of $560.5 million. During the year-earlier period, the company earned $59.7 million, or 48 cents a share, on revenue of $553.3 million.

Syniverse Holdings Inc. ((SVR)) shares plunged to 20.7%, their lowest in a year on, after the company posted disappointing fourth-quarter results and 2007 outlook. Net income available to common shareholders totaled $59.1 million, or 88 cents per share, up from $15.3 million, or 23 cents per share, during the same period a year earlier. Cash net income, an adjusted earnings figure, was $13.8 million, or 20 cents per share, down from $17.1 million, or 25 cents per share, in the prior-year period. Revenue rose 3 % to $85.8 million from $83.6 million.

Whiting Petroleum Corp. ((WLL)), oil and gas producer said its fourth-quarter profit fell 27%, hurt by higher costs and lower oil and gas prices. Quarterly earnings dropped to $28 million, or 76 cents per share, from $38.3 million, or $1.05 per share, in the prior-year period. Whiting Petroleum said the recent quarter includes gains from property sales worth 18 cents per share. Total revenue rose to $186.6 million from $186 million last year. Shares fell 12.2%.

[R]1:00PM NY - European markets closed notably down for a second day in a row.[/R]
European stocks closed lower for a second day in a row, due to a heavy sell-off sparked by worries that global markets will extend losses. Market sentiment failed to recover from Tuesday’s depression that settled across the region on U.S. recession fears and a slump in the Chinese stock market. Mining stocks were notable decliners. Rio Tinto lost 2.3%, BHP Billiton dropped 2.8% and Anglo American shares declined 3.6%. In corporate news, shares in U.K. banking group HBOS slipped 4.6% after it said its 2006 impairment losses on bad loans rose 8.9%. German reinsurer Munich Re dropped 3.4% after it reported a 52% drop in Q4 profit. Among other companies in focus, power group E.On declined 4% after Italy''s Enel said it may try to buy a quarter of Spanish utility Endesa. Meanwhile, the French EADS shares rose 1.8% after Airbus revealed plans to cut 10,000 jobs and sell up to six plants as part of an extensive restructuring. The U.K. FTSE 100 declined 1.8% at 6,171.50, the German DAX Xetra 30 dropped 1.5% at 6,715.44, and the French CAC-40 slipped 1.3% at 5,516.32.


[R]11:30AM Wall Street rallied after Fed Reserve Chairman Bernanke’s comments.[/R]
U.S. stocks recovered Wednesday from the heavy drop in the previous trading session, helped by generally upbeat economic data and comforting comments from Fed Reserve Chairman Ben Bernanke who said that there was no single trigger to Tuesday''s market plunge and the economy may strengthen later this year. The Dow bounced 52 points, supported by 3.6% for Procter & Gamble ((PG)), 2.2% for Walt Disney ((DIS)) and 1.4% for Altria Group ((MO)). Drug maker Merck ((MRK)) also boosted the blue-chip average, rising 2.2% on lifted earnings outlook. Dow component Exxon Mobil ((XOM)) contributed to the gains, rising 1.3%, despite a decline in the price of oil.

By sector, gold, oil, telecoms and real estate investment trusts were leading gainers. The telecommunications sector was boosted by Sprint Nextel ((S)) which jumped 5.4% on better-than-expected earnings and revenue rise in Q4. Apple ((APPL)) helped the tech sector up with a gain of over 1% on news that the company remains on track to release its iPhone mobile-phone product in June, with 10 million devices expected to be sold in 2008. Some computer hardware stocks posted strength, with Sun Microsystems ((SUNW)) and Palm ((PALM)) rising 3% each.

Meanwhile, housing stocks came under pressure after a report from the Commerce Department showed that new home sales slipped 16.6% in January, the steepest drop since 1994. The Dow was up 106.31 at 12,322.55. The Standard & Poor''s 500 index was up 14.20 to 1,413.24, and the Nasdaq composite index was up 17.73 percent at 2,425.59. Bonds fell as stocks tried to recoup some losses. The yield on the benchmark 10-year Treasury note rising to 4.57 percent from its low for the year of 4.47 percent late Tuesday.

[R]Crude oil inventories gained, gasoline stockpiles fell.[/R]
Government data released Wednesday showed that crude oil inventories climbed again in the most recent week, adding to an advance that took place in the previous week. Meanwhile, gasoline and distillate stockpiles continued to slide. The Department of Energy''s Energy Information Administration said that crude oil inventories rose 1.4 million barrels in the week ended February 23. Specifically, the measure climbed to 329 million barrels from the previous week''s level of 327.6 million barrels. This followed an increase of 3.7 million barrels recorded in the previous week. Oil inventories for the week were 2.6% below last year''s level. Meanwhile, gasoline inventories showed a week-over-week decline of 1.9 million barrels. The added to a decline of 3.1 million barrels that took place in the previous week. The level of gasoline inventories was 2.1% below last year. Distillate fuel oil had an inventory decline during the week ended February 23 as well. Stockpiles of these products, which include heating oil, slipped by 3.8 million barrels. This added to recent declines, with a draw down of 5 million barrels taking place in the previous week.

[R]New home sales tumbled 16.6% in January.[/R]
The Department of Commerce released its report on new home sales in the month of January on Wednesday, showing that new home sales fell much more than economists had been expecting. The data added to recent concerns about the strength of the housing market. The report showed that new home sales fell 16.6 percent to an annual rate of 937,000 units in January from a revised 1.123 million unit rate in December. Economists had expected sales to edge down to a 1.08 million unit rate from the 1.12 million unit rate originally reported for the previous month. The decline in January marked the steepest drop in new home sales since a 23.8 percent drop in January of 1994 and resulted in the slowest pace of sales growth since February of 2003. A substantial drop in new home sales in the West contributed to the decline, with sales in the region falling 37.4 percent in January. New home sales in the Northeast, Mid-West, and South also showed notable declines. The report also showed that the median sales price of new houses sold in January was $239,800, which is up from $239,400 in December but down 2.1 percent year-over-year. The Commerce Department added that the seasonally adjusted estimate of new houses for sale at the end of January was 536,000, which represents a supply of 6.8 months at the current sales rate.


[R]9:45AM U.S. stocks opened higher. The Dow recovered.[/R]
U.S. stocks opened higher, recovering from the steep losses posted yesterday when Dow Jones industrials plunged 416 points. Some of the most notable decliners on Tuesday gained ground, with American Express ((AXP)), up 0.9%, Procter & Gamble ((PG)), rising 2.6%. The Dow was also helped by Merck & Co. ((MRK)), which rose 2.4% after lifting its Q1 earnings forecasts. Further boost to the blue-chip average was provided by Boeing ((BA)) which gained 0.5% after J.P. Morgan upgraded its stock. However, Home Depot ((HD)) fell 0.6% after warning it sees earnings will drop this year. Blue-chip stocks with earnings closely tied to the economy declined, with Alcoa Inc. ((AA)) falling 0.5%, Caterpillar Inc. ((CAT)), down 1.5%, and Dupont ((DD)), losing 0.6%. Telecoms advanced in early trading as Sprint Nextel ((S)) jumped 5% on better-than-expected Q4 earnings and revenue. Biotech stocks posted losses, while pharmaceutical issues moved higher. In early trading, the Dow was down 10.66, or 0.09%, at 12,205.58. The Standard & Poor''s 500 index was down 1.30, or 0.09%, at 1,397.74, and the Nasdaq composite index was off 9.77%, or 0.41%, at 2,398.09.

[R]Fourth-quarter GDP growth revised down 2.2%.[/R]
Wednesday morning, the Department of Commerce released its preliminary report on the fourth quarter gross domestic product, showing that the pace of growth was downwardly revised from the advance reading. The report showed that the pace of GDP growth was revised down to 2.2 percent in the fourth quarter compared to the advance reading of 3.5 percent. The downward revision came in roughly in line with economist estimates. Despite the downward revision, the pace of growth in the fourth quarter still represents an acceleration from the 2.0 percent growth that was reported for the third quarter. The acceleration in the pace of growth compared to the third quarter primarily reflected a downturn in imports as well as faster growth in consumer spending, exports, and federal government spending. However, the Commerce Department also said that downward revision to fourth quarter GDP growth was primarily due to downward revisions to private inventory investment and to consumer spending on goods, as well as an upward revision to imports of goods.

The report also said that motor vehicle output subtracted 1.24 percentage points from fourth quarter GDP growth compared to the previously reported subtraction of 1.17 percentage points. Motor vehicle output contributed 0.76 percentage points to the third-quarter growth. With the downward revision to the pace of growth in the fourth quarter, the GDP growth for all of 2006 was revised down to 3.3 percent from 3.4 percent. This compares to the 3.2 percent rate of growth that was seen in 2005. At the same time, the report showed a downward revision to the pace of inflation in the third quarter, as the annual rate of growth by the index of consumer prices, excluding food and energy prices, was revised down to 1.9 percent from the advance reading of 2.1 percent. With the revision, this represents an even more significant slowdown from the 2.2 percent rate of growth that was seen in the third quarter. The downward revisions to the pace of both economic growth and inflation may help to renew optimism that the Federal Reserve could consider lowering interest rates sometime in the near future.


[R]9:30AM London trims losses Wednesday on a strong opening in US.[/R]
The UK market was lower on Wednesday. After losing 2.3% in the previous session, the FTSE 100 rallied in mid-session trade, trimming losses to 1%, or 64 points, at 6,222.0.

Advancers

Whitbread, the leisure group, is leading the gainers after a very strong trading statement this morning. It announced sales for the first 50 weeks of the year to February 15 2007 have grown by 10.3% and same-store sales are up by 4.3%, though it played down takeover talk. Whitbread rose 2.2%. Retailer Debenhams also advanced on talk that acquisitive Icelandic firm Baugur is circling. Shares have jumped 6%.

Decliners

The mining sector bore the brunt as Xstrata fell 2.4% and Anglo American dropped 2.5%. Banks were also sharply lower, led by HBOS, after the Scottish bank posted annual profit in line with forecasts but warned of increased margin pressure in the coming months. The owner of Halifax fell 4.3%. In the wider sector, Barclays lost 2.7%, Northern Rock fell 2% and Royal Bank of Scotland was 1.7% lower.

Other stocks which fell included Alexon Group down 4.6% as Merrill Lynch lowered its recommendation on Alexon, the U.K. owner of almost 1,400 clothing stores and department-store concessions, to neutral from buy. Allergy Therapeutics lost 5%, as the U.K. vaccine maker announced its six-month loss widened to 6.76 million pounds from 535,000 pounds a year earlier.


[R]9:00 AM Market futures pointed to moderately higher start. GDP in Q4 rose 2.2%.[/R]
U.S. stock futures pointed to a slightly higher opening on Wednesday, following a heavy global sell-off yesterday. The pre-market sentiment was helped by partial recovery in Shanghai, as well as data on Q4 economic growth, which was revised down less than expected. The Commerce Department said that economy grew at a sluggish 2.2% pace in Q4, much slower than the initially reported reading of 3.5%. Economists had been expecting a downward revision of 2%.

In corporate news, the world’s biggest home improvement retailer Home Depot Inc.((HD)) said it will invest $2.2 billion into improving its business in 2007, despite expectations of lower earnings and weak sales growth. The comopany said it will open 115 new stores this year. Home Depot said that for fiscal 2007 it expects sales growth in the range of flat to an increase of 2%, a decline in same-store sales and earnings per share decline of 4% to 9%. Company''s shares dropped 1% in the pre-open.

Another Dow component, aerospace and defense contractor Boeing ((BA)) added 0.8% after it was upgraded to neutral from underweight at J.P. Morgan, due to valuation. In the defense sector, the broker cut its rating on Lockheed Martin ((LMT)) and upgraded L-3 Communications ((LLL)). In other broker news, investment banks Goldman Sachs ((GS)), Lehman Bros. ((LEH)) and Bear Stearns ((BSC)) were downgraded to neutral from buy at Merrill Lynch. S&P 500 futures on Wednesday rose 10.80 points to 1,406.10 and Nasdaq 100 futures climbed 14.25 points to 1,764.75. Dow industrial futures rose 75 points to 12,255.


[R]8:00AM NY-7:00PM Mumbai Sensex drops steeply on Budget Day.[/R]
The Sensex on BSE finished 540.74 points, or 4.01%, lower at 12,938.09. The market was highly volatile and traded within a range of almost 500 points. The market-breadth was very weak as there were four decliners to every advancer. Of the 30 stocks in the Sensex, only ITC advanced, while the other 29 stocks declined. Of all the stocks, 598 stocks advanced, 1,900 declined and 32 were unchanged. The turnover on BSE was Rs 5,825.82 crore, higher than Rs 4,019.74 crore on Tuesday. On NSE, the turnover was Rs 12,686.73 crore, much higher than Rs 8,148.78 crore on Tuesday.

Economic news

The Union Budget

Finance Minister Chidambaram presented the budget for 2007-08 to parliament today.

Highlights

The average inflation rate is seen at between 5.2% and 5.4 % in 2006/07 and the government is confident it can tackle the present inflationary trend. Revenue deficit remains at 2.1% and fiscal deficit is at 2% of GDP. Increase in gross tax revenue is by 19.9%. The minister also said all indicators point to an accelerating rate of investment. During the period between April 2006 and January 2007 foreign direct investment is estimated at $12.5 billion. Overseas investment exceeds portfolio investments. Government is to set up a panel to study the impact of forward trading in commodities. Exports are seen crossing Rs 5,53,260 crore, or $125 billion in 2006/07.

The budget does not hold any surprises to investors and is geared towards taming inflation and the increase in prices. There are no changes in the personal income tax slabs, rates; corporate income tax, central exercise, service tax rates and the other levies. Only the peak customs duties have been reduced by 2.5% on non-farm products to make the industrial inputs cheaper that is aimed at tempering with retail prices of consumer goods.

Investors are particularly dissatisfied with the increase in dividend distribution tax by 2.5% and bringing all knowledge-based companies under the minimum alternative tax, or MAT.

As a whole, the budget disapponts. There are no steps proposed to increasing productivity in agriculture, electricity and other sectors, which badly need investments and productivity improvement..

Trading highlights

Reliance was the most-active stocks with a turnover of Rs 325.25 crore followed by Reliance Communications and Infosys.

Advancers

ITC was the only gainer of the Sensex stocks, as it rose 4.03% to Rs 171.85, on the premise that it will be able to pass on the 5% hike in excise duty announced on cigarettes to customers. The Finance Minister P Chidambaram today announced a complete exemption of excise duty on all instant food mixes and biscuits, whose retail price does not exceed Rs 50 a kilo. ITC is not only the top cigarette maker, it also makes biscuits and ready-to-eat food. Relief from excise duty for biscuits and ready-to-eat foods will support for the company.

Decliners

Satyam Computers led the decliners, down 8.42% to Rs 412.5, Wipro lost 7.3% to Rs 560.9 were the most prominent decliners among the IT stocks. Index heavy Reliance Industries declined 3.65% to Rs 1,353.80 on a volume of 23.76 lakh shares. HDFC shed over 6% to Rs 1,502. Tata Steel and Maruti slipped around 5.5% each to Rs 443 and Rs 838, respectively.

Gujarat Ambuja Cements shed 7.8% to Rs 116, ACC dipped 6.4% to Rs 900. Other cement stocks also lost. Grasim tumbled over 5% to Rs 2,213. UltraTech Cement plunged nearly 6% to Rs 891, and Shree Cement dropped over 7% to Rs 1,147.


[R]7:30AM Asia closes lower on Wednesday on weak performance from US market.[/R]
Asian markets closed lower on Wednesday. The Shanghai Composite Index rebounded 3.9%, adding 109.28 points to finish at 2,881.07 on Wednesday. On Tuesday, the Shanghai index plunged 8.8%. The drop followed fears that government would undertake measures to slow the fast-moving index. Premier Wen Jiabao tried to steady investor sentiment by issuing a comment through state press late Wednesday in order to allay the fears.

Other markets around the region plunged on the pooe performance by US markets overnight. Japanese Nikkei 225 stock index lost 515.80 points, or 2.9%, to 17,604.12. Australian stocks settled down 2.7% after shedding 3.5%, while Singapore Straits Times Index was off 3% to 3,136.58 points, after sagging 5.6% earlier. Philippine stocks nosedived 7.9%, their worst drop since 1997, at the height of the Asian financial crisis. Many Asian markets were in correction mode after their recent spectacular performance. Benchmark indexes in China, Australia and Singapore had all hit records in February. Before the plunge this week, Malaysian stocks had advanced 17% this year, while Philippine shares had climbed about 12%.


[R]6:30AM European markets declined following global sell-off.[/R]
European markets were lower on Wednesday. By mid morning, Frankfurt Xetra Dax fell 1.6% to 6,712.13, the CAC 40 in Paris shed 1.7 % to 5,494.49 and London’s FTSE 100 slid 1.6% to 6,187.9. Of the emerging markets, Turkish Istanbul share index fell more than 3%, while Russian RTS index was off 2.7%.

Advancers

There were no prominent advancers.

Decliners

Rodamco Europe, the Dutch shopping centre owner, fell 4.3%. The company earlier in the week reported quarterly earnings that missed market expectations. Also in the sector, French Unibail fell 3.5 % and Spanish Metrovacesa shed 2.1%.

Stocks connected with emerging markets were lower and Raiffeisen International, the Austrian bank which owns assets across Russia and eastern Europe, fell 3.2%. EFG Eurobank, which has exposure through its Turkish assets, fell 3.5%. Swiss bank Julius Baer, the best performing stock on the SMI index this year, fell 3.8%. Eon, the German utility fell 4.2% after further doubts were cast on its 41billion euros bid to takeover Spanish Endesa.

Munich Re, the German reinsurer, fell 1.4% after it reported record full-year earnings of 3.5 billion euros, but added that it expected a general tendency towards a somewhat softer market.

Oil and gold

Crude oil for April delivery shed $1.54, or 2.5%, to $59.92 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the biggest intraday drop since Feb. 20. It traded at $60.96 in early trade in London.

Brent crude for April settlement lost as much as $1.12, or 1.8%, to $60.24 a barrel on the ICE Futures exchange and traded at $61.14 a barrel in early trade in London.

Gold rose as investors sought a haven following a rout in global equities sparked by the biggest decline in Chinese share prices in a decade and amid tension over Iranian nuclear research. Gold for immediate delivery rose as much as $9.30, or 1.4%, to $672.65 an ounce and traded at $671.95 in early trade in London.

Currenciers

The euro was lower against the U.S. dollar Wednesday as fears of a worldwide slump in markets weighed on the common currency. The euro bought $1.3188, compared with the $1.3243 it bought in New York late Tuesday. The British pound fell to $1.9552 from $1.9632 the day before. The dollar rose to 118.58 Japanese yen from 118.22 yen.