US & World Daily Markets Financial Briefing 19-02-2009

...For only $29.99 on Investorshub.com NOW! Be one of the first to sign up for this fantastic new service from Investors Hub -- for only $29.99 a month you will gain access to Level 2 Pink sheet and OTCBB data. Click here or call 1-888-99-ADVFN to upgrade your account today.

US Stocks Flat; Blue Chips Stay Near Bear-Market Lows

Stocks were flat, with blue chips remaining close to their bear-market lows, as a mixed bag of economic and corporate reports gave investors little reason to wade more deeply into the market on Thursday.

The Dow Jones Industrial Average was little changed at 7559 in recent trading, with its financial components falling once again while select industrial and retail stocks gained. Hewlett-Packard dropped 7% after posting disappointing earnings and guidance. H-P rival Dell, not a Dow stock, also fell, declining about 5%.

The Nasdaq Composite Index was up 0.3%, boosted by a 37% surge in shares of Whole Foods Market, which posted better-than-expected earnings. But most tech stocks were moving lower. Research In Motion and Oracle slid more than 1%.

The Standard & Poor's 500 Index was up 0.4%, boosted by a 1.8% climb in its basic-materials sector. Energy and consumer shares also rose. Gamestop shares rallied by more than 11% after the videogame retailer posted strong results and issued guidance that pleased investors.

The growing feeling on Wall Street that the recession, now in its fourteenth month, will likely be longer and deeper than investors had generally expected has helped push stocks back near their bear-market lows this week. Traders are watching to see whether those levels hold.

"We're beginning to fall into a new trading range," which may yet include a breach of the late-November market lows, said Roger Volz, senior vice president at Hampton Securities, a New York brokerage. "We've still got very little market participation by the public, which is either so beaten up that it can't take on new positions or has simply stopped caring," after many small investors were burned in the late-2008 slide.

Volz said that has again left hedge funds and other short-term players with deep pockets in the market's driver's seat in recent days, adding volatility.

In economic news Thursday, wholesale prices rebounded in January, pushing the producer-price index up 0.8% on a seasonally adjusted basis - a number likely to ease concerns about deflation. Deeper in the production pipeline, prices mostly fell, suggesting soft wholesale-price readings in coming months. Prices of raw materials, known as crude goods, slid 2.9% on the month.

The number of U.S. workers drawing unemployment benefits for more than a week hit a fresh record high near 5 million in early February, but the level of new claims was unchanged from the previous week. The Federal Reserve said Wednesday that the unemployment rate could near 9% by the end of the year.

Other economic data were a mixed bag, and left little impression on stocks. The Conference Board's index of leading economic indicators rose 0.4% last month, while Philadelphia Fed's manufacturing index showed factory activity in the mid-Atlantic region dropped to a level last seen in October 1990.

Safe-haven assets like gold and Treasurys have bounced as stocks slumped. Gold was generally flat, while Treasurys were mostly lower, pushing the 10-year note yield up to about 2.85%.

European stocks were mostly flat, though investors took some comfort from upbeat corporate earnings. Financial stocks advanced after BNP Paribas said it is well positioned for 2009 and Swiss Re reported a narrower-than-feared full-year net loss.

Most Asian markets ended higher on Thursday, with exporters such as Toyota Motor benefiting from a weaker yen and lifting Japanese stocks, while miners spurred gains in Australia after a three-session losing streak. Japan's Nikkei 225 ended up 0.3% and the Shanghai Composite added 0.8%.

This comprehensive trading toolkit sports a new efficient & intuitive interface and an expanded arsenal of technical analysis resources.Easy access to powerful tools, highly developed charting technology, Dow Jones news, and an advanced level of customization, sophistication & convenience set VT Trader™ apart from other Forex trading platforms. Click here

WORLD FOREX: Dollar Falls; Euro Bounces A Little
 
The dollar is down and the euro is up in Europe Thursday as investors fret about the U.S. government's growing debt positions but hope that the European Union will come to the rescue of ailing central and eastern European economies.

The yen failed to get any new direction from the Bank of Japan's policy meeting, which ended leaving rates unchanged and the economic outlook much as it was before.

Overall, market sentiment has improved slightly, with risk aversion backing down a little and investors showing more appetite for risky markets.

Although U.S. President Barack Obama's plan to help troubled homeowners is seen as a welcome development for the U.S. economy, there was little shift in underlying market sentiment.

"Since it will likely take time to make an impact, similar to the stimulus plan and the revised bank bailout plan, we expect risk aversion will remain and keep the dollar supported," said Geoff Kendrick, a currency strategist with UBS in London.

However, other analysts fear that this latest effort by the U.S. government to stop the economy from skidding any further into recession will only push the country's debt even higher - and provide a negative for the dollar in the longer term.

All the same, this and other negative news out of the U.S. economy, including steep declines in industrial production and housing starts Wednesday, failed to halt a relatively buoyant performance by stocks, with the Dow Jones Industrial Average posting a small 0.04% gain and the Nikkei in Japan rising 0.3%.

This lifted sentiment towards the euro, which analysts said was also helped by the possibility of a short squeeze, given the recent rise in short speculative positions in the currency, and expectations that the E.U. is looking at providing aid to the economies of central and eastern Europe.

The euro has come under selling pressure recently because of growing concern about these economies, which have close banking and trade relations with the euro zone.

The Bank of Japan's latest policy meeting attracted little attention in the end as the bank left rates unchanged and increased its buyback of commercial paper largely as expected.

By 1040 GMT, the dollar had fallen back to Y93.68 from Y93.80 late Wednesday in New York, according to EBS. The euro was up, however, at Y118.78 from Y117.66.

The single currency was also up at $1.2681 from $1.2550, while the dollar was a little higher at CHF1.1785 from CHF1.1770.

The pound started higher, rising to $1.4416 from $1.4227, but then fell back to $1.4353 after data showed that U.K. public finances are deteriorating even more rapidly than expected given the decline in tax receipts and the large government bailouts for two of the country's major banks.

For stock market quotes, company information, stock charts, historical quarterly reports and historical annual reports, click here

European Shares Trade In Tight Range

European pulled back from early gains to trade around the flat line on Thursday, as losses for drugmakers offset a strong advance from Nestle.

The pan-European Dow Jones Stoxx 600 index advanced 0.1% to 183.59, with losses from pharmaceuticals such as Shire , down 3.4%, capping upside.

Shire reported a 6% rise in fourth-quarter sales to $765.8 million, but that figure was below analyst forecasts. Net income fell 33% to $141.3 million. Still, earnings from Nestle , up 4.5%, were better received.

The world's largest food and beverages company raised its dividend after reporting a 69% rise in 2008 net profit to 18.04 billion Swiss francs ($15.4 billion) due to higher sales and asset sales.

Overall, the French CAC-40 index declined 0.3% to 2,865.72 and the U.K. FTSE 100 index fell 0.1% to 4,003.48.

The German DAX 30 index climbed 0.2% to 4,212.05.  Stocks were mixed in Asia, while U.S. stock futures were pointing to a higher open in the U.S. following a flattish end to trading on Wednesday.

"There's a pull between a pretty dreadful and not improving global macroeconomic environment, and stock markets which are pretty much on their knees in terms of valuation and sentiment," noted James Buckley, head of large-cap European equities at Barings Asset Management.

He added that markets will probably stay in a trading range, bouncing off November lows, until investors get some evidence that the huge amount of stimulus from global governments is having some effect.

Anglo-Dutch publishing firm Reed Elsevier (RUK) advanced 2.6% in London and 3.5% in Amsterdam. Its 2008 adjusted pretax profit rose 21% to 1.2 billion pounds, which was ahead of analyst expectations, and the firm also said that it expects positive adjusted earnings per share development in 2009.

Meanwhile, shares of BNP Paribas , France's largest bank by market value, rose 0.9%. The lender confirmed a fourth-quarter loss of 1.37 billion euros, but still plans to pay a dividend and said it was well positioned for 2009.

Also in the sector, shares of Switzerland's largest bank UBS rose 1.7%. It agreed to pay $780 million for helping U.S. customers avoid taxes, the Department of Justice said Wednesday.

"The settlement in the U.S. tax case is what we have been waiting for. It is very positive for UBS to have closed off the case now as it will enable them to move forwards again and to start build up the reputation. The fine is less than we had previously booked into our numbers," said analysts at Vontobel.

In Paris, shares of French insurance giant Axa (AXA) fell 8.9%.  Full-year net profit fell 84% to 923 million euros and the firm warned 2009 would continue to be challenging, especially in life insurance and asset management.

WestLB downgraded the insurer to neutral from add after the results. "Full year results were slightly better than expected but clearly helped by one-offs, in particular asset management," the broker said. "We regard Axa's high dependency on asset management, and in particular life and health, as a clear disadvantage in 2009," it added.

Staying in France, shares of luxury and retail group PPR jumped 5.1% after it reported that 2008 net income rose 0.2% to 924 million euros, or 7.33 euros a share. A survey of analysts by Thomson Reuters was calling for earnings per share of 6.52 euros.

Fast-loading, feature-rich and highly customizable interfaces for reading and posting messages. click here

HK shares edge up in weak turnover; China stocks lead

Hong Kong shares closed slightly higher in thin action on Thursday as a firmer close on the Shanghai bourse encouraged late buying in select Chinese counters, but losses in blue chips including China Mobile held the main index back.

"Investors are simply not convinced the market has hit bottom and as we close into the corporate earnings season there is even more reason to wait," said Y.K. Chan, strategist with Phillip Capital Management.

Among the outperformers, Chinese power stocks notched up strong gains riding falling spot coal prices while Ping An Insurance rallied as investors cheered a strong growth in its premium income.

But heavyweight China Mobile fell 2.1 percent to HK$70.00 as the stock was sold down ahead of the index futures expiry next week. Europe's biggest bank HSBC fell another 1.1 percent to HK$56.10, still managing to stay above the 10-year low of HK$54.90 it hit in January.

The benchmark Hang Seng Index .HSI ended 7.36 points higher at 13,023.36 after opening down 1.1 percent. "The spreads between U.S. Treasuries and emerging market debt seem to have narrowed today so looks like the sentiment towards these markets is stabilising," said Alex Wong, director with Ample Finance.

Other major Asian markets were mostly higher on Thursday as recent selling pressure mitigated and the flight to safety, to U.S. dollars and gold eased.

Mainboard turnover shrank to HK$35.5 billion from HK$42.8 billion on Wednesday as investors stayed cautious amid recent reminders of the global economic gloom and financial sector woes.

The China Enterprises Index .HSCE of top mainland firms outperformed to climb 0.7 percent to 7,266.24 after the Shanghai Composite Index rose 0.8 percent.

Chinese power producers rose as spot coal prices in China eased while industry watchers said that demand may recover in the near term with weak January data indicating a bottom for power demand.  Huaneng Power moved up 4.1 percent to HK$5.38 while Datang International Power gained 2.8 percent to HK$3.70. China Resources Power climbed 7.2 percent to HK$15.10.

According to data released last week, China's power demand fell 13 percent in January but the figure was likely distorted by the week-long Lunar New Year holiday which fell in February last year.

China Overseas Land Development jumped after Deutsche Bank upgraded the stock to buy as it expects favourable government housing policies to trigger demand.

The stock rose 3.8 percent to HK$10.52 after dropping nearly 9 percent in the last month. Ping An Insurance (Group) Co of China, the country's second-largest life insurer, rose 3.6 percent after it reported a 23 percent rise in its life-insurance-premium income in January to 13.31 billion yuan, from a year earlier.

The most traded market in the world; 24 hr market platform with the latest news, prices and charts gives you the knowledge to invest in this exciting and fast moving market.
Click here

CRUDE UP $1 AHEAD OF US INVENTORY DATA
Crude oil futures rebound higher as traders re-examine expectations for weekly U.S. government crude data due later in the day.

MOST OPEC GOVERNORS AGAINST NEW OUTPUT CUT
The majority of Organization of Petroleum Exporting Countries governors are opposed to a new output reduction being decided at a conference of the group in March, a person familiar with the matter tells Dow Jones Newswires.
 
ACCIONA, ENEL REACH AGREEMENT ON ENDESA STAKE SALE
Spanish builder Acciona has reached an agreement to sell its 25% stake in Endesa to Italy's Enel following months of negotiations and differences over the price and the conditions of the deal, a report says.
 
ROSNEFT WILL USE CHINA CREDIT MAINLY FOR REFINANCING
Russia's biggest oil producer Rosneft plans to use a large part of the $15 billion loan it secured from China Development Bank for refinancing purposes, a newspaper reports, citing the company's Chief Financial Officer Peter O'Brien.
 
SOLAR POWER EQUIPMENT PRICES DROPPING
Prices for solar-power equipment are plummeting in response to oversupply, providing a potential boon for local governments, utilities and others trying to roll out new solar-power projects.

ASIA REFINERS STILL CAUTIOUS ON OIL TRADING PLATFORM
Although South Korea's GS Caltex agreed a rare oil-products deal in Singapore's cash market this week, it doesn't seem to be a forerunner of a wider move by Asia's traditionally cautious oil refiners onto a platform dominated by trading houses.
 
CANADA'S ECONOMY SLIPS ON OIL'S SLIDE
Canada has ratcheted up its dependence on oil revenue, more than doubling its crude exports over the past four years. Now, the oil bust is pushing it into a deeper recession than many economists had expected.

The latest streaming prices and news on major commodities from precious metals to crude oil, so you can keep up-to date and never miss a trading opportunity again.
Click here

Investors Hub Services