Stocks Rise on Q2 GDP Growth, Oil Up

123jump.com Staff
28 Aug, 2008
New York City

U.S. stocks rose in the morning trading after the release of second quarter economic growth and weekly unemployment data. In the quarter economic growth boosted at 3.3% annual rate on rising exports on lower dollar and stimulus package from the government. Weekly unemployment claims matched the forecast but were at elevated level. Sears contune to struggle in sales as reported in the latest quarter.

[R]9:45AM New York – U.S. stocks rise on latest economic data and lifted markets in Europe and in South America.[/R]

U.S. stocks edged higher after the release of better-than-expected economic growth in the second quarter.

The U.S. economy in the second quarter rose at 3.3% annual rate after rising at 0.9% in the first quarter according to the Commerce Department. The faster than expected economic growth lifted stocks in early hours of trading boosted by international traded and government stimulus package. Weakness in residential construction and retail sales are hurting the broader economy but weak dollar is boosting exports and cost of imported oil.

The initial claims of unemployment insurance dropped to 425,000 at the end of last week after rising at 435,000 at the end of the previous according to the Labor Department.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 15.29 or 0.12% to 12,768.25, , Hang Seng index in Hong Kong decreased 492.43 or 2.29% closed to 20,972.29.ASX 200 index in Australia increased 55.30 or 1.10% to close 5,066.50. The KL Composite index in Malaysia increased 2.81 or 0.26% closed to 1,070.46.

The Kospi Index in South Korea decreased 19.77 or 1.32% to close at 1,474.15, SET index in Thailand closed higher 6.84 or 1.01% to 682.83 and JSE Index in Indonesia increased 13.79 or 0.65% to 2,144.85. The Sensex index in India decreased 248.45 or 1.74% closed to 14,048.34.

Europe Markets Review

In London FTSE 100 Index traded higher 17.70 or 0.32% to 5,545.80, in Paris CAC 40 Index decreased 0.76 or 0.02% to 4,372.32 and in Frankfurt DAX index traded lower 19.27 or 0.30% to 6,301.76. In Zurich trading SMI decreased 3.73 or 0.05% to 7,082.91.

Earnings Review

The Bank of Nova Scotia, a financial institution, active in both Canadian and international markets said third quarter revenues rose 3% to $3.4 billion from $3.3 billion a year ago. Net income in the quarter grew 3% to $1.01 billion or 98 cents per diluted share compared to net income of$1.03 billion or $1.02 per share, a year ago.

The Bank of Nova Scotia ((BNS)) in the last one year traded as high as $57.15 in November 2007 and as low as $47.16 in March 2008. Based on the yesterday’s closing price the company has a market cap of $43.80 billion.

China Life Insurance Company Limited, the country''s largest life insurance company said first-half net income in the quarter declined 32% to 15.84 billion yuan compared to 23.29 billion yuan a year earlier.

China Life Insurance Company Limited ((LFC)) in the last one year traded as high as $106.56 in October 2007 and as low as $49.15 in July 2008. Based on the yesterday’s closing price the company has a market cap of $109.60 billion.

Jiangxi Copper Company Limited, China''s top integrated copper producer said first-half net income in the quarter jumped 32% to 2.77 billion yuan compared to net income of 2.10 billion yuan a year earlier.

Antofagasta plc, the world''s biggest copper supplier said first-half sales rose 24% to $2.41 billion from $1.94 billion a year ago. Net income in the quarter rose 8.8% to $792.8 million or 80.4 cents per diluted share compared to net income of $728.4 million or 73.9 cents per share, a year earlier.

Tullow Oil plc, the U.K. energy explorer with the most licenses in Africa said first-half sales gained 33% to £378 million from £285 million a year ago. Net income in the quarter climbed 70.48% to £124 million or 16.98 pence per diluted share compared to net income of £37 million or 5.03 pence per share, a year earlier.

CNOOC Limited largest oil company first-half revenues rose 64% to 69 billion yuan and net income jumped 47% to 27.5 billion yuan or 62 yuan a share. China COSCO engaged in shipping first half revenues rose 47.6% to 70.48 billion yuan and net income jumped 109.2% to15.12 billion yuan or 1.48 yuan a share. China Life Insurance Company Limited country''s largest life insurance company first-half net income declined 32% to 15.84 billion yuan.