U.S. Stocks Follow World Markets Gain

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

U.S. stocks are trading higher in the pre-market trading on a global optimism and a rise in Asian and European markets. Dubai is expected to offer restructuring plan for $26 billion and may disappoint bankers by not offering state guarantee. French President offered more support for Greece.

[R]8:30 AM New York – U.S. stocks are trading higher in the pre-market trading on a global optimism and a rise in Asian and European markets. Dubai is expected to offer restructuring plan for $26 billion and may disappoint bankers by not offering state guarantee. French President offered more support for Greece and Prime Minister Papandreou is scheduled to meet Barack Obama tomorrow.[/R]

Markets in Asia closed higher and in Europe traded up after Dubai prepares to offer debt renegotiation plan this week and European leaders offer a strong support to Greece.

French President Nicholas Sarkozy after a meeting with Greek Prime Minister George Papandreou said that Greece does not need emergency funds but Europe is prepared to help Greece if needed. Papandreou is scheduled to meet U.S. President Barack Obama in Washington tomorrow.

Markets in Japan surged more than 2% on the global outlook and in Australia gained after Arrow Energy received an offer for A$3.4 billion from Royal Dutch Shell Plc and PetroChina Co.

Japan reported current account surplus for the second month in a row in January after exports surged 40% from a year ago. Current account surplus increased to 899.8 billion or $9.9 billion, a gain of 1.03 trillion from a year ago month from a deficit.

Dubai World is expected to present its debt repayment plan this week to lenders committee that includes 90 banks represented by seven banks.

Media reports in the Middle East suggest that the banks may be asked to accept delayed payment or receive a payment that is less than due.

The state controlled entities including Nakheel PJSC and Limitless LLC have $26 billion of debt and is expected to rely on asset sale. Bankers are seeking a guarantee from Dubai government that is less than likely according to 123jump.com sources in Abu Dhabi.

Stock Movers

American International Group Inc agreed to sell its life insurance division to MetLife Inc for $15.5 billion. The company recently agreed to sell its Asian insurance division to Prudential Plc of the U.K. for $35.5 billion.

Hewlett-Packard Co. lowered its earnings per share by 3 cents after it estimated higher legal costs for a UK lawsuit against its division Electronics Data Systems.

YRC Worldwide Inc said that it will do a reverse stock split to avoid delisting from the Nasdaq Stock Market.

Earnings Review

Bovis Homes Group PLC, the home builder said 2009 revenues fell 0.3% to £281.5 million from £282.3 million a year ago. Net profit for the year was £3.5 million or 2.8 pence per diluted share compared to net loss of £59.0 million or 49.1 pence per share a year ago.

Bovis Homes Group PLC, in the last one year traded as high as 571.00 pence in August 2009 and as low as 353.00 pence in June 2009. Based on the yesterday’s closing price of 381.50 pence the company has market cap of £508.31 million.

Petrofac Limited, an oil services provider said 2009 revenues rose 10% to $3.66 billion from $3.33 billion a year ago. Net profit for the year rose 33% to $353.6 million or 103.19 cents per diluted share compared to net profit of $265 million or 77.11 cents per share a year ago.

Ciments Francais SA, the provider of construction materials said 2009 revenues fell 12.5% to €4.2 billion from €4.8 billion a year ago. Net profit for the year fell 12% to €234.3 million or €6.39 per diluted share compared to net profit of €266.0 million or €7.16 per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 216.96 or 2.09% to 10,585.92, and Hang Seng index in Hong Kong increased 408.90 or 1.97% to 21,196.87, and CSI 300 index in China higher 26.41 or 0.81% to 3,286.18. ASX 200 index in Australia increased 40.70 or 0.85% to 4,807.90. The FTSE Bursa KL Composite index in Malaysia was higher 24.44 or 1.88% to 1,324.22.

The Kospi Index in South Korea increased 25.47 or 1.56% to close at 1,660.04. SET index in Thailand closed lower 3.67 or 0.51% to 720.29. JSE Index in Indonesia increased 47.68 or 1.85% to 2,626.45. The Sensex index in India increased 108.11 or 0.64% to 17,102.60.

Europe Markets Review

In London FTSE 100 Index traded lower 12.78 or 0.23% to 5,586.98, in Paris CAC 40 Index decreased 1.67 or 0.04% to 3,908.75 and in Frankfurt DAX index traded lower 2.43 or 0.04% to 5,874.93. In Zurich trading SMI decreased 10.82 or 0.16% to 6,836.96.