EC: Higher Inflation, Slower Growth

123jump.com Staff
21 Feb, 2008
New York City

BASF, German chemical company reported first quarter flat revenue of 14.7 billion and earnings rise of 8% to 793 million euros. Continental AG reported full year profit rose 3.9% to 1.02 billion euros on revenue gain of 7.2% to 15.9 billion euros. Not counting the recent purchase of VOD, the car parts maker, the sales rose 5.5%. Societe Generale reported record fourth quarter loss of 3.35 billion euros on write-downs and trading losses.

[R]10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – EC lowered its forecast for the euro-zone growth to 1.8% from 2.2% and inflation target was raised to 2.6% from 2.1% in November. U.S. stocks declined after a regional manufacturing survey showed a deepening slowdown in the activities. Gold surged to a record high.[/R]

European Markets

In London FTSE 100 Index closed higher 38.60 or 0.65% to 5,932.20, in Paris CAC 40 Index increased 46.04 or 0.96% to close at 4,858.85 and in Frankfurt DAX index higher 5.17 or 0.07% to close at 6,904.85. In Zurich trading SMI increased 104.57 or 1.42% to close at 7,486.15.

North American Markets indexes

Dow Jones Industrial Average declined 142.96 or 1.15% to a close of 12,284.30, S&P 500 closed down 17.50 or 1.29% to 1,342.53, and Nasdaq Composite Index traded down 27.32 or 1.17% to a close of 2,299.78. In Toronto TSX Composite closed lower 42.14 or 0.31% to close at 13,509.55.

Of the 30 stocks in Dow Jones Industrial Average, 3 closed higher, 27 closed lower, and none were unchanged.

General Motors led the decliners in the Dow index with a loss of 5% followed by losses in General Electric of 2.3%, in DuPont of 2%, in Boeing of 1.96%, and in Merck of 1.8%. Verizon led the gainers in the index with a rise of 0.6% followed by increases in AT&T of 0.45%, and in Wal-Mart of 0.2%.

Of the stocks in S&P 500, 68 closed higher, 432 fell, and none were unchanged. Of the index stocks, 4 rose more than 3% and 38 stocks fell more than 3%.

Apollo Group led the decliners in the index with a fall of 8.6% followed by losses in Ambac of 7.65%, in Safeway of 6.9%, and in Quest Diagnostics of 6.7%. Terex Corp led the gainers in the index with a rise of 6% followed by increases in Analog Devices of 3.6%, in Fluor Corp of 3.06%, and in Principal Financial of 3.02%.


South American Markets Indexes

In Latin Markets Peru led the gainers in the region with a rise of 2.48% followed by increases in Venezuela of 0.49%, in Mexico of 0.47%, and in Argentina of 0.42%. Colombia added 0.33% but Chile lost 0.04%.

Asian Markets

In Tokyo Nikkei 225 Index closed higher 377.91 or 2.84% to 13,688.28, in Hong Kong Hang Seng index increased 32.42 or 0.14% closed to 23,623.00. Australia ASX 200 index increased 86.90 or 1.58% to close 5,583.40.

In South Korea Kospi Index increased 16.45 or 0.97% to close at 1,704.36, and Indonesia JSE Index edged increased 44.95 or 1.67% to 2,734.21. Sensex index in India increased 117.08 or 0.66% to 17,734.68. In Thailand market were closed today.

Bond Yields increased on 10-year U.S. bonds to 3.76% and on 30-year bonds declined to 4.54%.

[R]Commodities, Metals, and Currencies[/R]

Crude oil declined $1.62 to close at $98.08 per barrel for a front month contract, natural gas decreased 8 cents to $8.89 per mBtu, and gasoline futures decreased 7.020 cents to close at 251.50 cents per gallon.

Gold increased $8.10 in New York trading to close at $945.90 per ounce, silver closed up 6 cents to $17.82 per ounce, and copper for front month delivery increased 9 cents to 380.00 per pound and in London copper futures decreased $44.00 to $8,194.00.

Wheat futures rose 12.00 cents in Chicago trading and closed at $10.45 per bushel. Sugar increased 0.19 cents to 14.29 cents per pound. Soybean future closed up 0.775 cents to $14.24 per bushel.

Dollar edged lower and traded near record lows against euro to $1.4814 and edged lower against yen to 107.26.