Markets in Europe Slide; Asian Markets Firm

123jump.com Staff
08 Jan, 2010
New York City

Weather remained in focus in northern hemisphere as freezing weather affected commodities and people transportation. Unemployment in the euro area increased to 10% in November and third quarter GDP was decreased 4% from a year ago.

[R]9:40 AM New York – Weather remained in focus in northern hemisphere as freezing weather affected commodities and people transportation. Unemployment in the euro area increased to 10% in November and third quarter GDP was decreased 4% from a year ago.[/R]

Freezing weather continued in the northern hemisphere with more snow expected this weekend. Temperatures as south as Florida as expected to dip near freezing level but minimal damage to orange crop is reported so far.

European markets were on the decline and Asian markets closed higher on the optimism that the U.S. jobs report will show minimal losses. However, this morning jobs report showed a larger than expected fall.

European unemployment increased to 10% in November and the U.S. unemployment in December was unchanged at 10%. December U.S. payrolls declined 85,000. The larger than expected payroll decline dragged the European and U.S. indexes lower.

December non-farm payroll employment fell 85,000 and the unemployment rate was unchanged at 10.0%. The largest job losses were in construction, manufacturing and wholesale trade sectors.

During the third quarter Euro area GDP increased 0.4% and in the EU27 it increased 0.3% from second quarter 2009. Seasonally adjusted GDP compared to the quarter a year ago decreased 4.0% in the euro area and 4.3% in the EU27 in the third quarter of 2009.

Seasonally adjusted unemployment rate was 10% in November 2009 compared to 9.9% in October and 8% in November a year ago. Compared with November 2008, unemployment went up by 4.978 million in the EU27 and by 3.041 million in the euro area.

German seasonally adjusted exports in November increased 1.6% from October according to the Federal Statistics Office in Wiesbaden.

UK producer prices index or wholesale annual inflation for all manufactured products rose 3.5% in December. Input price annual inflation rose by 6.9%. This mainly reflects price rises manufactured, electrical & food products and transport equipment.

Aberdeen Acquires RBS Asset Management Arm

Aberdeen Asset Management Plc said it agreed to acquire a fund management unit from Royal Bank of Scotland for 84.7 million and will fund the purchase through the sale of 84 million new shares.

Separately the money manager also said its asset under management declined 1.4% to 144.1 million pounds in the fourth quarter ending in December.

Global Earnings Review

Apollo Group, Inc, the private education provider said first quarter revenues rose 31% to $1.27 billion from $971 million a year ago. Net income in the quarter rose 33% to $240.1 million or $1.54 per diluted share compared to net income of $180.4 million or $1.12 per share a year ago.

Michael Page International plc, a specialist recruitment consultancy said fourth quarter group gross profit fell 24% to £90.6 million compared with a gross profit of £118.7 million a year ago. EMEA gross profit fell 29.3% to £42.2 million compared with a gross profit of £59.7 million a year ago.

UK gross profit fell 27% to £26.5 million compared with a gross profit of £36.2 million a year ago. Asia Pacific gross profit fell 1% to £12.2 million compared with a gross profit of £12.4 million a year ago. America gross profit fell 8.3% to £9.7 million compared with a gross profit of £10.5 million a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 116.66 or 1.09% to 10,798.32, and Hang Seng index in Hong Kong increased 27.30 or 0.12% to 22,296.75, and CSI 300 index in China higher 8.67 or 0.25% to 3,480.13. ASX 200 index in Australia increased 12.70 or 0.26% to 4,912.10. The FTSE Bursa KL Composite index in Malaysia was higher 1.56 or 0.12% to 1,292.98.

The Kospi Index in South Korea increased 11.81 or 0.70% to close at 1,695.26. SET index in Thailand closed higher 4.33 or 0.59% to 738.96. JSE Index in Indonesia increased 27.48 or 1.06% to 2,614.37. The Sensex index in India decreased 75.43 or 0.43% to 17,540.29.

Europe Markets Review

In London FTSE 100 Index traded higher 3.43 or 0.06% to 5,530.15, in Paris CAC 40 Index increased 25.48 or 0.63% to 4,050.28 and in Frankfurt DAX index traded higher 24.62 or 0.41% to 6,043.98. In Zurich trading SMI increased 63.18 or 0.96% to 6,618.54.