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Thomson Financial Europe AM at a glance share guide

Tuesday, January 22, 2008

LONDON (Thomson Financial) - US SUMMARY: Stocks lower, oil dips

Index Change Pct change

*DJIA 11971.19 -128.11 -1.00

*Nasdaq 2292.27 -47.75 -2.04

*S&P 500 1310.50 -14.69 -1.11

eur-usd 1.4612 -0.0010

Nymex crude

for Feb 89.85 usd -72 cents

* Yesterday's close

STOCKS: Jolted by global recession fears, the Federal Reserve slashed interest rates by 75 basis points to 3.5 pct in a surprise move Tuesday. Despite this, Wall Street plummeted as the day began following Asian stocks, then warily eased its sell-off. The Dow Jones Industrial Average fell 300 points in the first minute of trade then rebounded to finish down a more bearable 128.

The cut in the federal funds rate marked the biggest reduction in this target rate for overnight loans on records going back to 1990. It marked the first time the Fed has changed rates between meetings since 2001, when the central bank was battling the combined impacts of a recession and the terrorist attacks.

FOREX: The dollar retreated against most major currencies after Fed dramatically slashed rates and stocks plunged across the globe. The 15-nation euro was worth 1.4612 usd Tuesday, however, was still stronger against the euro than it was Friday, when the euro was worth 1.4622 usd.

The British pound rose to 1.9625 usd, above 1.9452 usd on Monday, while the dollar rose to 106.48 Japanese yen from 105.92 yen.

Meanwhile, the dollar fell to 1.0266 cad from 1.0282 cad Friday, and also slipped to 1.0974 sfr from 1.0990 sfr Friday.

BONDS: Short-term Treasurys rallied sharply, sending a signal that investors expect further rate cuts, after Fed reduced the bank lending rate to 3.5 pct. The benchmark 10-year Treasury note advanced 9/32 to 106 10/32 with a yield of 3.48 pct from 3.63 pct Friday.

OIL: Crude oil dropped sharply on concerns that a US recession would dampen demand for crude. Light, sweet crude for February delivery fell 72 cents to settle at 89.85 usd a barrel on the Nymex.

METALS: Gold rebounded to end higher Tuesday after a Fed rate cut battered the dollar and prompted jittery investors to seek safe-haven assets to gird against a possible recession.

Gold for February delivery climbed 8.60 usd to settle at 890.30 usd an ounce on the Nymex.

EVENTS:

Abbott Labs Q4 results. EPS forecast 0.92 usd vs 0.75 usd

ConocoPhillips Q4 results. EPS forecast 2.40 usd vs 2.10 usd

Ebay Q4 2007 results. EPS forecast 0.41 vs 0.31

General Dynamics Corp Q4 results. EPS forecast 1.41 usd 1.13

Motorola Inc Q4 2007 results. EPS forecast 0.13 usd vs 0.26

Qualcomm Inc earnings. EPS forecast 0.53 usd vs 0.43

Rockwell Automation Inc earnings. EPS forecast 1.01 usd vs 0.76

Southwest Airlines Q4 results. EPS forecast 0.10 usd vs 0.12

United Technologies Corp Q4 2007 results. EPS forecast 1.06 usd vs 0.87

Congressional Budget Office releases Budget and Economic Outlook: Fiscal Years 2009-2018

CBO director Peter Orszag testifies at the House Budget Committee

Energy Dept, American Petroleum Institute weekly stocks reports

ASIA SUMMARY: Shares rally on Fed rate cut; oil mixed

Index Change Pct change

Nikkei 225 12645.53 +72.48 +0.58 (0402 GMT)

S&P/ASX 200 5396.00 +209.20 +4.03 (0405 GMT)

Hang Seng 22653.84 +896.21 +4.12 (0407 GMT)

Seoul Composite 1613.04 +4.02 +0.25 (0423 GMT)

BSE Sensex 17601.08 +871.14 +5.21 (0425 GMT)

usd-yen 106.60 -- (2250 GMT)

10-year JGBs 1.320 pct +0.005 (Intra-day trade)

Brent North Sea

crude for March 88.44 usd -01 cents (Intra-day trade)

STOCKS: Stock markets across Asia opened higher Wednesday to recoup some of the heavy losses of the last two sessions, as investors cheered, for now at least, the US Federal Reserve's historic 75 basis-point intrameeting cut.

But most regional indexes had already pared initial gains with investors saying they want to first see how Wall Street performs today when traders have had time to digest the Fed move.

The Hang Seng outperformed, tacking on 1,617 points, or 7.4 pct, to 23,351 in early trade. The index had lost about 14 pct of its value in two days of heavy selling and suffered its worst-ever performance on Tuesday.

The Australian benchmarks rose for the first time in 13 session. The Nikkei was up 3.4 pct at 12,994 in early trade, while India's BSE Sensex opened 790.08 points or 4.72 pct higher at 17,520.02.

BONDS: Japanese government bond prices were mostly weaker on Wednesday as an emergency rate cut overnight by the Federal Reserve helped ease credit and economic fears in the US, prompting investors to unwind some of their recent flight-to-safety moves.

On the other hand, shorter-term notes inched higher, mirroring strength of shorter-term US Treasury notes overnight against a background of possible further rate cuts by the Fed.

Investors also hoped that the Bank of Japan would follow in the footsteps of its US counterpart and cut interest rates in the near future.

FOREX: The US dollar was lower against the sterling and the euro in Sydney morning trade on Wednesday, extending its overnight losses after the Fed slashed interest rates by 75 basis points in an attempt to stop the US economy falling into recession.

The greenback was slightly higher against the yen.

The euro was at 1.4672 usd, against 1.4628 usd, while the sterling was at 1.9633 usd, compared to 1.9611 usd.

The Australian dollar was buying 87.08 US cents, up from 87.01 cents overnight, ahead of the release of the Australian fourth-quarter consumer price index.

OIL: Oil prices were mixed in Asian trade Wednesday after the US Fed's rate cut.

In morning trade, New York's main contract, light sweet crude for delivery in March, was up 8 cents at 89.29 usd a barrel. The February contract, which expired Tuesday, had closed 72 cents lower at 89.85 usd in New York overnight.

METALS: Gold rallied back to the 890 usd mark, while copper rose Tuesday in London, with the market cheered by the Fed's decision to cut key interest rates.

At 1643 GMT, spot gold was trading at 889.38 usd per ounce, against 865.10 usd late New York trades Monday, having hit an intraday high of 894.45 usd. At 1644 GMT, LME copper for three-month delivery was at 6,980 usd per tonne against 6,870 usd at the close Monday.

However, with the metals market still sensitive to economic data emerging from the US, and to movements on the equity markets, the sustainability of the rally remains uncertain.

In other metals, platinum rose to 1,548 usd per ounce from 1,539 usd. Palladium fell to 360 usd per ounce from 361.50 usd, while silver tracked gold higher at 15.97 usd per ounce against 15.60 usd.

Aluminium climbed to 2,427 usd per tonne, basis three months, against 2,413 usd per tonne, while lead rose to 2,605 usd from 2,515 usd. Zinc rose to 2,300 usd from 2,230 usd. Nickel was the only faller, slipping to 27,500 usd per tonne from 27,750 usd.

EVENTS:

Australia Q4 2007 consumer price index data

Australia's BHP Billiton Q2 production report

Australia's Oxiana Ltd's Q2 production report

SKorea's KT&G Corp Q4 earnings release

Singapore Dec CPI

Singapore's K-REIT Asia FY results

Malaysia's Dec CPI

Taiwan Dec export orders

Taiwan Dec industrial output

India's Hindustan Zinc Q3 results

EUROPE SUMMARY: Stocks sharply higher, dollar weak

Index Change Pct change

*FTSE 5740.10 +161.90 +2.90

*DAX 6769.47 -20.72 -0.31

*CAC 4842.54 +98.09 +2.07

UK10-year

Bond 96.59 -0.94

UK 30-year

Bond 97.70 -1.88

stg-usd 1.9623 +0.0185 (Intra-day)

eur-usd 1.4614 +0.0169 (Intra-day)

ICE (march) 87.62 usd +0.08 usd (1700 GMT)

*Yesterday's close

STOCKS: Leading shares closed sharply higher yesterday, where the big news of the day was the US Federal Reserve's decision to slash interest rates by 3/4 pct, however it was not enough to ease fears over a recession in the US as Wall Street dropped. Leading European shares ended sharply higher after the surprise 75-basis point cut in US interest rates boosted hopes that cheaper borrowing will prove enough to avert a US recession.

BONDS: European government bonds and UK gilts slumped, reversing early gains after the US Federal Reserve made a substantial emergency interest rate cut to shore up confidence on financial markets from recession fears.

FOREX: The dollar was weaker against the euro but was mixed against other currencies as markets weighed up the implications of the interest rate cut by the Federal Reserve.

OIL: Oil prices were mixed as players continued to react to news that the US Federal Reserve had opted for an emergency rate cut to help shore up the ailing economy and stave off a recession.

METALS: Gold rallied back to the 890 usd mark after the US Federal Reserve's shock rate cut. Copper rose in yesterday's late afternoon trade, with the market cheered by the Fed's interest rate decision in a bid to revitalise the ailing US economy.

EVENTS:

UNITED KINGDOM

BoE MPC minutes to rate-setting meeting on Jan 10 (0930 GMT)

UK Q4 preliminary GDP (0930 GMT)

UK Nov services output (0930 GMT)

BoE's Bean appears before Treasury Select Committee on population counting (1430 GMT)

Kazmunaigaz AGM

BHP Billiton trading statement (Dec quarterly production & exploration)

Tullow Oil trading statement

Great Portland Estates trading statement

EASTERN EUROPE

Czech auction of 3-yr government bonds

FRANCE

Dec household spending (0745 GMT). Forecast mth-on-mth +1.0 pct vs -0.1; yr-on-yr +2.4 pct vs +2.4

Carrefour FY sales. Forecast 25.155-25.456 bln eur (after markets close)

Ubisoft Q3 sales

EADS/Finmeccanica jv ATR annual press conference

Ingenico FY sales

GERMANY

Press conference on German government's economic forecasts with German economy minister Michael Glos (1030 GMT)

Cheuvreux German Corporate Conference in Frankfurt (day 3 of 3); Deutsche Postbank CFO Marc Hess, Commerzbank CFO Eric STrutz, Hypo Real Estate CEO Georg Funke, Deutsche Boerse CFO Thomas Eichelmann, Linde CFO Georg Denoke, Hannover Re CEO Wilhelm Zeller et al to speak

Euroforum conference on Telecom Trends (day 1 of 2); BT German head Jan Geldmacher, Versatel CEO Peer Knauer, Federal Networks Agency president Matthias Kurth et al to speak

Handelsblatt Annual Energy Conference, Berlin (day 2 of 3); E.ON Ruhrgas CEO Burckhard Bergmann (0810 GMT), E.ON board member Johannes Teyssen (1345 GMT)

ITALY

Lottomatica court hearing in Rome on online gaming

Italy lower house casts vote of confidence on Prodi govt (1600 GMT)

CNH Global

SCANDINAVIA

Sweden Jan consumer confidence (0815 GMT)

Sweden Dec unemployment (0830 GMT)

Norway interest rate decision

SPAIN

Dec hotel occupancy, prices

Banco Popular FY results, presentation at (1100 GMT). Net profit forecast 1.143-1.306 bln eur vs 970 mln; net interest revenue 2.230 bln eur vs 2.031 bln

SWITZERLAND

Lonza FY results

Richemont Q3 sales

World Economic Forum

EUROPEAN UNION/EURO ZONE

Euro zone provisional Jan PMI (0900 GMT)

Euro zone provisional Jan manufacturing PMI. Forecast 52.0 vs 52.6

Euro zone provisional Jan services PMI. Forecast 52.7 vs 53.1

Euro zone provisional Jan composite PMI. Forecast 52.8 vs 53.3

Euro zone Nov industrial orders. Forecast mth-on-mth +1.2 pct vs +2.5; yr-on-yr +8.6 pct vs +10.9

EU implements energy and climate change package

EU to propose new guidelines on biofuel production

Posted by MOHAMED SAID at 9:23 PM  

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