Economic Trend Analysis

WORLD MARKET UPDATES

2010-12-02T18:52:00.000+01:00

US Market Updates

Stocks Posting Modest Gains In Early Trading

Stocks have moved modestly higher in early trading on Thursday, adding to the standout gains posted in the previous session. The major averages have all climbed above the unchanged line, although buying interest remains relatively subdued.

The early strength in the markets may be partly due to the release of generally upbeat November sales results from major retailers, which has helped to offset any negative sentiment generated by a bigger than expected increase in weekly jobless claims.

The Labor Department released a report showing that initial jobless claims rose by more than expected in the week ended November 27th after falling to a two-year low in the previous week.

Jobless claims rose to 436,000 from the previous week's revised figure of 410,000. Economists had been expecting jobless claims to increase to 422,000 from the 407,000 originally reported for the previous week.

At 10:00 a.m. ET, the National Association of Realtors will release its report on pending home sales for the month of October. Economists expect that pending home sales remained unchanged after a 1.8 percent in September.

The retail sector is also in focus today, with most major U.S. retailers reporting November sales figures above analyst estimates.

Bon-Ton (BONT) said its November same-store sales rose by 2.9 percent, Target's(TGT) same-store sales increased 5.5 percent, Costco Wholesale Corp. (COST) saw a same-store sales jump of 6 percent and Abercrombie & Fitch Co. (ANF) said its same-store sales surged up by 22 percent.

In other corporate news, food and beverage giant PepsiCo, Inc. (PEP) announced that it has agreed to acquire 66 percent of Russia's leading branded food and beverage company Wimm-Bill-Dann Foods (WBD) for $3.8 billion. The total enterprise value of the deal is nearly $5.4 billion.

Metal stocks are turning in some of the market's best performances, with steel and gold stocks posting notable gains. Banking stocks have also shown a strong move to the upside, while most of the other major sectors are showing more modest moves.

The major averages have seen some further upside in the past few minutes, climbing a little more firmly into positive territory. The Dow is up 32.43 points or 0.3 percent at 11,288.21, the Nasdaq is up 9.71 points or 0.4 percent at 2,559.14 and the S&P 500 is up 4.50 points or 0.4 percent at 1,210.57.

European Market Reports

French Market Moderately Up

The French market is rising moderately in afternoon trading Thursday, led by banks. Sentiment was influenced by speculation that the European Central Bank may take measures to tackle the sovereign debt fears.

In economic news, the ILO jobless rate in metropolitan France was 9.3% in the third quarter, unchanged from the previous quarter and lower than economists' expectation of a 9.4% rise, Insee said.

Eurozone GDP rose 0.4% sequentially in the third quarter following a 1% growth in the second quarter, Eurostat said. Separately, Eurostat said Eurozone's producer price inflation rose to 4.4% in October from an upwardly revised 4.3% in September.

UK construction activity rose to 51.8 in November from 51.6 in October, higher than the expected reading of 51.3, a survey from Markit Economics showed.

The CAC 40 opened slightly higher at 3,695. The index has been above the flat line during the session, and is currently adding 0.94%.

Oil & gas services firm Technip is leading the gainers by adding 3.4%. Tire firmMichelin is up 3.15 and Schneider Electric is adding 2.7%.

Banks Societe Generale, BNP Paribas and Natixis are gaining between 2.4% and 1.8%. Credit Agricole is marginally up. Insurer Axa is rising 1.7%.

Car manufacturers Renault and Peugeot are advancing 2.3% and 1.7%, respectively.

Those making notable gains include building materials maker Saint-Gobain, luxury goods conglomerate LVMH, department stores operator PPR, brewer Pernod-Ricard, steel giant ArcelorMittal and yoghurt maker Danone.

Metal fabrication firm Vallourec is losing 3.2% and electric utility EDF is losing 2.3%. Chipmaker STMicroelectronics and pharmaceutical giant Sanofi-Aventis are down 1.7% and 1.4%, respectively.

Elsewhere in Europe, the UK's FTSE 100 is rising 0.90% and the German DAX is advancing 0.27%.

Across Asia/Pacific, key markets closed higher. China's Shanghai Composite Index gained 0.7% and Japan's Nikkei 225 rose 1.8%. Hong Kong's Hang Seng added 0.86% and India's BSE Sensex climbed 0.72%. Australia's All Ordinaries climbed 1.82%.

In the U.S., futures point to a higher open on Wall Street. In the previous session, theDow jumped 2.3%, the Nasdaq gained 2.1% and the S&P 500 rose 2.2%.

Crude for January delivery is trading up $0.11 at $86.86 per barrel and February gold is rising $2.5 at $1390.8 an ounce.

Asia Market Updates

Asian Markets Extend Gains On Economic Outlook

Asian markets open for trading on Thursday ended in positive territory, extending the rally for the second successive day on optimism about global economic recovery. Better than expected ADP employment report in the US and sharp gains on Wall Street lifted market sentiment. Easing of debt concerns in Europe and expectations that the European Central Bank might unveil quantitative measures to further ease concerns favorably impacted market sentiment.

In Australia, the benchmark S&P/ASX200 Index surged up 89.60 points, or 1.96%, and closed at 4,676 points, while the All-Ordinaries Index ended at 4,762, representing a gain of 85.00 points, or 1.82%.

On the economic front, a report released by the Australian Bureau of Statisticsrevealed that retail sales in the country declined a seasonally adjusted 1.1% in October compared to the previous month, standing in at A$20.232 billion. That was well below forecasts for a 0.4% increase following the revised 0.1% gain in September. The report further noted that among the individual components, restaurant sales added 0.2%, while food sales were flat, clothing was down 0.5% and household goods were down 0.1%.

Another report released by the Statistics Bureau revealed that the country posted a merchandise trade surplus of A$2.625 billion in October, higher than forecasts for a surplus of A$2.0 billion following the A$1.76 billion surplus in September. The report further noted that imports came in at a seasonally adjusted A$21.70 billion, down 3% from A$22.39 billion in the previous month. The country also exported A$24.32 billion in October, up 1% from A$24.15 billion a month earlier.

Light sweet crude oil futures for January delivery ended at $86.68 a barrel in electronic trading, down $0.07 per barrel from previous close at $86.75 a barrel in New York on Wednesday.

Banking stocks led the gains on optimism about easing debt concerns and quantitative measures from ECB to weather the storm. ANZ Bank climbed 3.40%, Commonwealth Bank of Australia gained 1.61%, National Australia Bank rose 2.61% and Westpac Banking Corp. was up 2.38%. Investment banking company Macquarie Group was up 1.55%.

Resource related stocks also gained on higher commodity prices in the international market. BHP Billiton gained 2.62%, Rio Tinto rose 2.30%, Fortescue Metals added 0.94%, Gindalbie Metals surged up 4.26%, Iluka Resouces soared 5.53%,Macarthur Coal advanced 0.82%, Mincor Resources was higher by 4.72% and Oz Minerals climbed 4.82%.

Oil related stocks ended in positive territory, lifted by higher crude oil prices. Woodside Petroleum gained 1.84%, Santos Ltd rose 1.53%, ROC Oil surged up 2.78%, Origin Energy climbed 2.82% and Oil Search Ltd was up 2.49%.

Mixed trading was witnessed among gold related stocks. Newcrest Mining gained 1.79%, while Avoca Resources ended in negative territory with a loss of 0.93%.

In Japan, the benchmark Nikkei 225 Index advanced 180.47 points, or 1.81% to 10,169. while the broader Topix index of all First Section issues rose 11.14 points, or 1.29%, to 877.

On the economic front, a report released by the Ministry of Finance revealed that capital expenditure by Japanese companies rose for the first time in over three years in the September quarter, boding well for the country's output growth in the December quarter. As per the report, capital spending rose 5% year-over-year between July and September, following the 1.7% fall in the preceding quarter. Analysts expected a 6% increase during the quarter. Excluding software, capital expenditure climbed 4.8% annually in the third quarter, following the 1.5% fall in the previous three months.

A statement released by the Bank of Japan revealed that monetary base jumped 7.6% on year in November, standing at 99.186 trillion yen. That follows a 6.4% annual surge in October. The central bank further noted that banknotes in circulation were up 1.8% on year, although coins in circulation declined an annual 0.4%. The current account balance surged 47.3% on year, including a 44.4% jump in reserve balances. Seasonally adjusted, the monetary base was up 16.9 percent in November, standing at 101.974 trillion yen.

Almost all the stocks across the 33 broad sectors ended in positive territory on increasing optimism about global economic recovery.

Machinery stocks led the gains in the market. Komatsu Ltd surged up 4.62%, Hitachi Construction Machinery climbed 3.04%, Daikin Industries advanced 1.82% andChiyoda Corp. soared 6.44%.

Stocks of securities also ended in positive territory. Matsui Securities gained 2.86%,Nomura Holdings rose 2.72%, Daiwa Securities Group climbed 2.91% and Mizuho Securities surged up 3.61%.

The Indian market edged higher for a fourth consecutive session on Thursday, as firm global cues on the back of encouraging economic data from China, Europe and the U.S. offered support. After moving in a narrow range of 167 points, the 30-share Sensexended up 143 points or 0.72% at 19,993, with 17 of its components advancing. The broader Nifty rose by 51 points or 0.85% and the BSE small-cap and mid-capindexes added over a percent each. The market breadth was fairly positive.

Among the other markets in the region, China's Shanghai Composite Index added 20.16 points, or 0.71% to close at 2,844, HongKong's Hang Seng Index gained 198.98 points, or 0.86% to close at 23,449, Jakarta Composite Index in Indonesia rose 75.49 points, or 2.09%, to close at 3,695, Singapore's Strait Times Index advanced 16.02 points, or 0.50%, to close at 3,198, Seoul Composite Index in South Korea ended in positive territory with a gain of 20.94 points, or 1.09%, to close at 1,950, and Taiwan Weighted Index was higher by 65.66 points or 0.77% to close at 8,586.

Canadian Market Reports

TSX May Struggle To Extend Gains Amid Mixed Earnings

Bay Street stocks may open mixed Thursday as commodities prices continued to hold on to their recent gains amid a mixed dollar and positive cues from the global equity markets.

However, stock specific action may not be ruled amid a mixed bag of earnings reports from major companies.

Financial stocks may be in play after lenders CIBC and TD Bank reported lower earnings, a day after NBC said it net earnings jumped 19%.

Meanwhile, the ECB has left it rates unchanged at 1% in its today's meeting, as widely expected.

U.S. stock futures were pointing to a lower open amid weekly jobless data.

On Wednesday, the S&P/TSX Composite Index rallied 195.47 points or 1.51% to 13,148.35, it fresh 2-year peak.

The price of crude oil was little changed, holding on to its prior session's gains. Crudefor January was down $0.10 to $86.65 a barrel.

Gold for February edged down $1.90 to $1,386.40 an ounce.

In corporate news from Canada, lender CIBC reported lower fourth-quarter net income of C$466 million or C$1.19 per share, compared to C$609 million or C$1.59 in the previous year.

TD Bank reported a decline in its fourth-quarter adjusted net income at C$1.21 billion or C$1.38 per share compared to C$1.26 billion or C$1.46 per share a year earlier. The bank declared a quarterly dividend of C$0.61 per common share.

Oil and natural gas explorer Canadian Natural Resources said it is targeting 2011 production volumes per barrel of oil equivalent to grow by 6% and anticipates capital spending to range between $5.6 billion and $6.0 billion in 2011. The company also said it will be investing over C$2.4 billion on long-term growth initiatives that will provide sustainable long-term returns in 2012 and beyond.

Crude oil and natural gas distribution company Enbridge Inc. declared a quarterly dividend of $0.49 per common share, in line with its current policy is to pay out between 60% and 70% of its adjusted earnings as dividends. The company also guided adjusted operating earnings of $2.75 to $2.95 per share for 2011.

Construction and infrastructure development company Aecon Group said its Infrastructure division was granted a $16.2 million highway contract by the Ontario Ministry of Transportation.

Healthcare services provider SXC Health Solutions said it would acquireMedfusionRx, LLC for $100 million in cash, and expects the acquisition to generate $0.15 to $0.17 in adjusted earnings per share in 2011.

Transportation company Bombardier Inc. reported lower third quarter net income of $141 million or $0.08 per share compared to $167 million or $0.09 per share in the prior-year quarter.

Gildan Activewear reported improved fourth-quarter net earnings of $56.8 million or $0.47 per share compared to $42.4 million or $0.35 per share last year. On an adjusted basis, earnings
before the restructuring charge $58.3 million or $0.48 per share, higher than $42.4 million or $0.35 per share a year earlier. Analysts were expecting the company to report earnings of $0.45 per share for the quarter.

Precious metals miner Mines Management reported a wider third quarter net loss of $2.7 million or $0.12 per share compared to $2.3 million or $0.10 per share in the year-ago quarter.

Business-critical software and services provider Redknee Solutions swung to profit in fourth quarter, reporting net income of C$358,786 or C$0.01 per share compared with net loss of C$247,642 or breakeven per share last year. Analysts were expecting the company to report earnings of C$0.01 per share for the quarter.

In economic news from south of the border, the U.S. Labor Department said that jobless claims rose to 436,000 in the week ended November 27 from the previous week's revised figure of 410,000. Economists were expecting jobless claims to increase to 422,000 from the 407,000 originally reported for the previous week.

WORLD MARKET UPDATES

2010-12-02T10:31:00.000+01:00

US Market Updates

Stocks Rally At The Open On Upbeat Jobs Data - U.S. Commentary

Stocks moved sharply higher at the start of trading on Wednesday, with traders reacting positively to an upbeat employment report. The major averages all showed notable moves to the upside after ending the previous lower by varied margins.

The initial strength in the markets was due in large part to the release of a report fromAutomatic Data Processing, Inc. (ADP) showing that private sector employment increased by more than expected in the month of November.

ADP said private sector employment increased by 93,000 jobs in November following an upwardly revised increase of 82,000 jobs in October. Economists had expected employment to increase by 58,000 jobs compared to the addition of 43,000 jobs originally reported for the previous month.

At 10:00 a.m. ET, traders will look to the latest reading on the Institute for Supply Management's national manufacturing index. Economists expect the index to show a reading of 56.5 for November, slightly lower than 56.9 recorded in the previous month.

At the same time, the Commerce Department will issue a separate report on construction spending in October. Construction spending is expected to decline by 0.5 percent for the month following a 0.5 percent increase in September.

The Energy Information Administration will release its customary weekly petroleum inventory report for the week ended November 26th at 10:30 a.m. ET. Ahead of the report, the price of oil is up by $1.40 at $85.51 a barrel.

Over the course of the day, individual automakers are scheduled to release their monthly U.S. sales results for November. The data will reveal the unit sales of domestically produced cars and light duty trucks, including sports utility vehicles and mini-vans, during the month.

In other corporate news, State Street Corp. (STT) may be in focus after the custodial bank revealed that it will cut 5 percent of its workforce, or 1,400 jobs, as part of a multi-year restructuring action.

Semiconductor stocks have helped to lead the way higher in early trading, driving thePhiladelphia Semiconductor Index up by 2.7 percent to a seven-month intraday high. Health insurance, oil service, and transportation stocks are also seeing early strength.

The major averages have seen further upside in the past few minutes, rising to new highs for the young session. The Dow is currently up 201.21 points or 1.8 percent at 11,207.23, the Nasdaq is up 48.85 points or 2 percent at 2,547.08 and the S&P 500 is up 12.51 points or 1.1 percent at 1,200.27.

European Market Reports

The French market is gaining in afternoon trading Wednesday, led by banks. Sentiment was influenced by strong cues from Asia and encouraging economic reports.

In economic news, purchase managers' index data for the manufacturing sector in many countries was released by Markit Economics. French manufacturing PMI rose to 57.9 in November from 55.2 in October, the highest level for over ten years, while in Eurozone manufacturing activity improved to a four-month high of 55.3 from 54.6 in October.

German manufacturing PMI rose to a three-month high of 58.1 in November from 56.6 in October. Economists had forecast the PMI to match a preliminary reading of 58.9.

U.K.'s seasonally adjusted Markit/CIPS manufacturing PMI climbed to 58 in November from a revised figure of 55.4 in October, a sixteen-year high.

Meanwhile, UK house prices dipped for a second month in November, but the rate of decline slowed from October, data from the Nationwide Building Society showed. House prices in November were 0.3% lower than in October. The latest decline was smaller than the 0.7% decrease in October and the expected fall of 0.5%.

After opening slightly lower at 3,635, the CAC 40 has been trading in a range of 3,621-3,656. The index is currently advancing 1.28%.

Lender Natixis is rallying 4.7%, followed by Societe Generale, which is adding 4.2%.Credit Agricole and BNP Paribas are rising 4% and 1.8%, respectively.

Carmakers Renault and Peugeot are advancing 3.7% and 2.9%, in that order.

Steel giant ArcelorMittal is rising 3.3%, oil & gas services firm Technip is rising 2.8% and insurer Axa is advancing 2.6%.

Those making notable gains include drugmaker Sanofi-Aventis, telecom equipment maker Alcatel Lucent, cement giant Lafarge, Airbus maker EADS and hotel groupAccor.

Retailer Carrefour is falling 7.4% after cutting its full-year guidance.

Elsewhere in Europe, the UK's FTSE 100 is gaining 1.64% and the German DAX is advancing 2.04%.

Across Asia/Pacific, major markets closed in the green as China reported strong manufacturing data. Australia's All Ordinaries edged up 0.01% and China's Shanghai Composite Index gained 0.12%. Hong Kong's Hang Seng and BSE Sensex climbed 1.05% and 1.68%, respectively. Japan's benchmark index Nikkei 225 added 0.51%.

In the U.S., futures point to a higher open on Wall Street. In the previous session, theDow fell 0.4%, the Nasdaq slid 1.1% and the S&P 500 declined 0.6%.

Crude for January delivery is trading higher by $1.42 at $85.53 per barrel and gold is advancing $7.3 at $1393.4 an ounce.

Asia Market Updates

Indian Market Extends Gains For Third Session

Bulls made a roaring comeback on Wednesday after a higher-than-expected GDP data for the July-September quarter showed that the Indian economy continues to maintain its growth momentum despite the challenging external environment.

A string of reports on manufacturing, core sector output and exports also helped investors shrug off lingering European debt concerns and speculation about possible interest rate hikes in China.

Extending its gains for a third consecutive session, the benchmark 30-share Sensexclimbed about 330 points or 1.7% to 19,850, with 24 of its components advancing.Bharti Airtel (down 2.51%), Hero Honda Motors (down 2.28%), Wipro (down 1.34%),Maruti Suzuki (down 0.77%), Hindustan Unilever (down 0.57%) and TCS (down 0.07%) were the laggards.

With global cues remaining supportive, the broader Nifty jumped by about 100 points or 1.7% to 5,961. The BSE mid-cap and small-cap indexes led the rally, rising 2.83% and 3.14%, respectively. In the broader market, gaining shares outpaced declining ones by 2381 to 579 shares on the BSE.

Sector-wise, the BSE metal, public sector, realty, banking and capital goods indexes rallied about 3% each, the auto index climbed 1.9% and the consumer durable indexby 1.6%.

Cipla (up 6.30%), Tata Steel (up 5.04%), Larsen & Toubro (up 4.04%), DLF (up 3.79%), SBI (up 3.71%) and Hindalco (up 3.66%) were among the prominent gainers.

In the auto space, Tata Motors climbed 4.13% after reporting a marginal 1% rise in its November vehicle sales. Mahindra & Mahindra jumped 4.53% after posting a 125% rise in its two-wheeler sales for November.

Telecom stocks closed on a mixed note after state-run BSNL increased the pulse rate on STD calls from its landline numbers to any other landline number across the country to 3 minutes from 1 minute. Bharti Airtel fell 2.51% on profit taking and Idea Cellular shed 0.69%, while Tata Teleservices rose 2.57% and Reliance Communication rallied nearly 4%.

Anil Dhirubhai Ambani group stocks were in demand. Reliance MediaWorks soared 10.62%, Reliance Capital jumped 6.40%, Reliance Power added 1.56% andReliance Infrastructure advanced 3.10%.

Pratibha Industries rallied 3.39% after the infrastructure firm raised funds by way of a preferential allotment of shares to Van Dyck, a subsidiary of Chrys Capital V, LLC. Coal India gained 1.33% on reports that it is eying a 10% stake in a coal producing mine in Australia. Strides Arcolab soared 5.35% after securing the U.S. FDA approval for selling anaesthetic midazolam hydrochloride injections.

ONGC gained 3.23% on reports of stock split ahead of its follow-on public offering in March. Great Offshore (up 3.85%) and Suzlon Energy (up 8.40%) jumped on winning new orders. BPCL (up 2.95%) and HPCL (up 4.46%) rallied after they reportedly hiked jet fuel prices. IOC climbed nearly 11% on divestment reports.

In economic news, India's merchandise exports rose 21.36% year-on-year to $18 billion in October, outpacing the 6.8% increase in imports to $27.68 billion, official data released today showed.

Separately, a survey carried out by Markit Economics showed that the headline seasonally adjusted HSBC Purchasing Managers' Index rose to 58.4 in November from 57.2 in October, with a reading above 50 indicating expansion. The rate of growth accelerated for a second consecutive month and was above the long-run average for the series, the Markit said.

Meanwhile, the latest data for the six core industries having a combined weight of 26.7% in the Index of Industrial Production also cheered investors. The country's infrastructure sector output grew by an impressive 7 percent in October versus 3.9% in the same month last year.

Elsewhere, Asian stocks rose across the board, commodities advanced and the euro stabilized on Wednesday, after data showing an expansion in China's manufacturing and buoyant U.S. consumer confidence figures signaled the global economic recovery is intact.

In Europe, Britain's FTSE 100 and Germany's DAX were up over a percent each in early trading and trading in the U.S. index futures suggested that the Dow index could rise 79 points at the opening bell on Wednesday.

Canadian Market Reports

TSX Logs Triple-digit Gain At Open Wednesday

Bay Street stocks rallied at open Wednesday amid buying across a variety of sectors. The S&P/TSX Composite Index gained 127.86 points or 0.99% to 13,080.74, its fresh two-year high.

The Diversified Metals Index gathered 1.71%, with Inmet Mining and Thompson Creek Metals adding over 2% each.

In the gold space, Alamos Gold and Centerra Gold were up around 2% each.

Among financial plays, Scotiabank, Bank of Montreal and RBC gained over 1% each.

Lender NBC moved up close to 2% after it said its fourth quarter net income available to common shareholders rose 19%.

In the oil patch, Petrobakken Energy, Pacific Rubilaes Energy and Niko Resourceswere up over 2% each.

Communications and media company Rogers Communications added over 1% after media reports said the company is in talks to buy the Toronto Maple Leafs in a deal worth more than $1 billion.

Meanwhile, logistics technology solutions provider Descartes Systems Group edged down 0.50% even after reporting improved third quarter net income.

WORLD MARKET UPDATES

2010-11-30T17:50:00.000+01:00

US Market Updates

Stocks Move Sharply Lower At The Start Of Trading

While the markets recovered from an early sell-off seen in the previous session, stocks showed a notable move back to the downside at the start of trading on Tuesday. The major averages all moved sharply lower, adding to the modest losses posted in the previous session.

The renewed weakness in the markets reflects continued concerns about debt problems in Europe as well as worries about the U.S. housing market following the release of a report showing a continued slowdown in the annual rate of home price growth.

The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index rose at an annual rate of 0.6 percent in September compared to the 1.7 percent growth seen in August. Economists had expected the annual rate of price growth to slow to 1.0 percent.

While prices rose on an annual basis in September, S&P noted that its S&P/Case-Shiller Home Price Index, which covers all nine U.S. census divisions, fell by 2.0 percent in the third quarter following a 4.7 percent increase in the second quarter.

Compared to the same quarter a year ago, the S&P/Case-Shiller Home Price Index was down by 1.5 percent in the third quarter.

S&P said that the end of the tax incentives and still active foreclosures appear to be weighing down the market, although it noted that housing prices are still above their spring 2009 lows.

Oil service stocks are helping to lead the way lower in early trading, with a decrease by the price of crude oil contributing to the weakness in the sector. Computer hardware,railroad, and health insurance stocks are also posting substantial losses.

The major averages have edged up off their lows for the young session in the past few minutes but remain firmly in the red. The Dow is down 81.06 points or 0.7 percent at 10,970.90, the Nasdaq is down 30.14 points or 1.2 percent at 2,495.08 and the S&P 500 is down 10.88 points or 0.9 percent at 1,176.88.

European Market Reports

Banks Lead French Market Down

The French market is falling in afternoon trading Tuesday, led by banks, as the sovereign debt fears continue to hurt sentiment.

In economic news, the producer price index for the French market rose 0.8% on a monthly basis in October, faster than a 0.3% rise in the previous month, statistical office Insee said. Economists had predicted 0.4% rise.

Germany's unemployment, according to the International Labor Organization concept, decreased a seasonally adjusted 340,000 persons or 10.6% year-on-year to 2.88 million in October, the Federal Statistical Office said. Compared to the previous month, the seasonally adjusted number of unemployed rose 0.2% in October.

Meanwhile, the euro area unemployment rate rose to 10.1% in October from 10% in September, in line with economists' expectation, Eurostat said. The jobless rate was 9.9% a year earlier. Separately, flash estimate from Eurostat showed that Eurozone annual inflation remained at 1.9% in November, matching economists' expectations.

An indicator of U.K. consumer confidence fell to a four-month low in November. The GfK NOP Consumer Confidence Index decreased by 2 points to -21, slightly below expectations for a score of -20, while the index gauging the economic situation over the next 12 months fell to -22 from -20 in October.

The CAC 40 opened at 3,644 and has been witnessing volatile trading. The index is currently losing 0.98%.

Lender Societe Generale is leading the decliners by falling 3.5%. Peers BNP Paribas,Credit Agricole and Natixis are losing between 3.1% and 2.4%.

Carmakers Peugeot and Renault are sliding 0.5% and 0.25%, respectively. InsurerAxa is down 2.6%.

Among construction-related stocks, Vinci, Saint-Gobain and Lafarge are dropping between 1.8% and 0.7%. However, Bouygues is adding 0.7%.

The gainers are being led by machinery and equipment maker Alstom, which is adding 3.2%. Contact lens maker Essilor International and steel giant ArcelorMittal are rising notably.

Elsewhere in Europe, the UK's FTSE 100 is slipping 0.23%, while the German DAX is adding 0.06%.

Across Asia/Pacific, most major markets closed lower. Australia's All Ordinaries lost 0.64% and China's Shanghai Composite Index lost 1.6%. Hong Kong's Hang Sengand Japan's Nikkei 225 retreated 0.68% and 1.9%, respectively. However, India's BSE Sensex bucked the trend and gained 0.60% on strong GDP data.

In the U.S., futures point to a negative open on Wall Street. In the previous session, theDow slid 0.4%, the Nasdaq fell 0.4% and the S&P 500 declined 0.1%.

Crude for January delivery is sliding $0.67 at $85.06 a barrel and December gold is rising $5.7 at $1371.7 an ounce.

Asia Market Updates

Asian Markets Slip On European Debt Concerns

Asian markets open for trading on Tuesday, except the Indian market, ended sharply lower on European debt concerns, lower commodity prices and profit taking. The Indian market however bucked the trend and ended in positive territory lifted by buoyant GDP numbers for the second quarter. China's Shanghai Composite index witnessed sharp sell-off on inflation concerns.

In Australia, the benchmark S&P/ASX200 Index declined 34.20 points, or 0.74%, and closed at 4,584 points, while the All-Ordinaries Index ended at 4,676, representing a loss of 30.30 points, or 0.64%.

On the economic front, a report released by the Australian Bureau of Statisticsrevealed that the country's current account balance with the rest of the world saw a larger than expected shortfall in the three months through September. As per the report, a current account deficit of A$7.8 billion was recorded, up from A$5.4 billion deficit in the June quarter. Analysts predicted a shortfall of A$6.6 billion for the quarter. The report further revealed that the balance of goods and services saw a surplus of A$5.8 billion in the September quarter, down from a surplus of A$6.6 billion reported for the June quarter. However, the income account saw a deficit of A$13.2 billion, up from a A$11.5 billion shortfall in the June quarter.

Another report released by the Australian Bureau of Statistics revealed that the number of housing permits grants in the country rose for the first time in seven months in October. As per the report, total dwelling permits rose by a seasonally adjusted 9.3% to 13,541 during the month compared to the previous month. Analysts expected a moderate 1.4% rise in dwelling permits following a 5.3% decline in September. The report further noted that the number of private houses approved rose 1.5% to 8,284, while the number of private sector other dwelling units surged up 23.6%. On a year-over-year basis, dwelling approvals were up 1.2%. Approvals for private sector houses were down 15.7%, while those for private sector other dwellings increased 67.3%.

In a separate report, the Australian Bureau of Statistics revealed that the government's total spending between July and September increased 0.9% compared to the previous three months. General government final consumption expenditure rose by 0.5% in the September quarter and the general government gross fixed capital formation was up 1.6%. The report further noted that total public gross fixed capital formation increased 1.9% during the quarter.

A statement released by the Reserve Bank of Australia revealed that total credit provided to the private sector by financial intermediaries rose by a seasonally adjusted 0.1% in October compared to the previous month. That is slightly lower than expectations for a 0.2% rise after no growth in September. The statement further noted that housing credit increased by 0.5% month-on-month in October, matching September's growth rate. Business credit, on the other hand, was down 0.8%. On a year-over-year basis, total credit increased 3.3% in October. Housing credit was up 7.7%, while business credit was down 3.2%.

Resource related stocks led the decline on lower commodity prices in the international market. BHP Billiton slipped 1.16%, Rio Tinto fell 1.94%, Fortescue Metals plunged 3.36%, Gindalbie Metals lost 2.07%, Iluka Resources shed 0.53%, Macarthur Coalwas down 1.08%, Mincor Resources declined 1.43%, Murchison Metals eased 2.76% and Minara Resources was down 3.77%.

Retail stocks also ended in negative territory on lower demand growth. David Jones slipped 0.45%, MetCash Ltd declined 2.57%, Woolworths shed 0.63%, andWesfarmers was down 1.50%.

In Japan, the benchmark Nikkei 225 Index lost 188.95 points, or 1.87%, to 9,937 while the broader Topix index of all First Section issues dropped 13.65 points, or 1.56%, to 861.

On the economic front, a report released by the Ministry of Internal Affairs and Communications revealed that unemployment rate in the country came in at a seasonally-adjusted 5.1% in October. That was higher than analysts' expectations for a reading of 5.0%, unchanged from September. As per the report, there were 3.34 million unemployed persons in October, down 100,000 or 2.9% on year. The number of employed persons was 62.86 million, an increase of 150,000 or 0.2% on year. The participation rate was 59.9%, while the job-to-applicant ratio matched forecasts at 0.56 after showing 0.55 in the previous month.

A preliminary report released by the Ministry of Economy, Trade and Industryrevealed that industrial production in the country declined by a seasonally adjusted 1.8% in October compared to the previous month, declining for the fifth consecutive month. That was better than forecasts for a 3.2% monthly decline following the 1.6% contraction in September. On an annual basis, industrial production added 4.5% - again beating expectations for a 3.1% increase following the 11.5% gain in the previous month.

A report released by the Ministry of Land, Infrastructure, Transport and Tourismrevealed that housing starts grew 6.4% during October from the same period last year. Economists had expected it to increase 9.7% after recording an annual growth of 17.7% in September. The report further noted that annualized housing starts in October totaled 813,000 compared to 837,000 in the prior month. The latest figure was also smaller than the expected level of 840,000.

Almost all stocks in all the 33 sectors ended in negative territory on profit taking amid concerns about sell-off in China and other Asian markets.

Among the major losers, Komatsu declined 2.4%, and Hitachi Construction Machinery lost 3.1%. Asahi Glass fell 2.30%, while Canon Inc. was down 2.35%.

The Indian market closed higher for a second consecutive session on Tuesday , as robust second-quarter GDP data helped spur bargain hunting. An overwhelming response to Manganese Ore India initial public offering, which was subscribed about 12.4 times on the third day of issue today, also boosted sentiment. Despite a very adverse base effect from last year, the Indian economy grew a much higher-than-expected 8.9% in the July-September quarter versus the previous quarter's upwardly revised 8.9% rise and economists' forecasts of around 8% after factoring in the recent slowdown in manufacturing, government data showed today. After trading in the red in early trading, the 30-share BSE Sensex recovered sharply to hit a high of 19,610 before paring some gains and ending up 116 points or 0.6% higher at 19,521, with 19 of its components closing in the green. Likewise, the broader Nifty eased a little bit from the day's high to end up 33 points or 0.56% at 5,863.

Among the other markets in the region, China's Shanghai Composite Index plunged 46.17 points, or 1.61% to close at 2,820, HongKong's Hang Seng Index declined 158.23 points, or 0.68% to close at 23,008, Jakarta Composite Index in Indonesia shed 99.43 points, or 2.74%, to close at 3,531, and Singapore's Strait Times Index was down 13.51 points, or 0.43%, to close at 3,145. However, Seoul Composite Index in South Korea ended in positive territory with a gain of 9.09 points, or 0.48%, to close at 1,905, and Taiwan Weighted Index advanced 5.31 points or 0.06% to close at 8,372.

Canadian Market Reports

TSX May Open Lower; Q3 GDP Growth Slows

Toronto stocks may dip at open Tuesday after a latest report revealed Canada's third quarter economic growth slowed more than economists predicted.

Oil prices drifted lower, while gold moved back above $1,380 for the first time in three weeks.

While most Asian markets ended in the red, European stocks were trading lower amid continued worries over the euro zone debt situation.

U.S. stock futures were pointing to a sharply lower open.

On Monday, the S&P/TSX Composite Index edged up 2.94 points or 0.02% to 12,895.65.

The price of crude oil edged down as traders await cues from today's economic releases from the U.S. Crude for January was down $0.81 to $84.92 a barrel.

The price of gold moved back above $1,370 amid lingering concerns over the euro zone debt situation. Gold for February, the most actively traded contract, added $17.50 to $1,385.00 an ounce.

In corporate news from Canada, Inmet Mining said it, along with an affiliate, would acquire 30% indirect equity interest and subordinated sponsor loans in the Cobre Las Cruces copper mine in Spain for $552 million.

Bell Canada, a unit of BCE Inc., said it will offer C$1 billion of Medium Term Debentures under its medium term debenture program.

Junior oil and gas firm Wild Stream Exploration swung to profit in third quarter, reporting net earnings of C$580,000 or C$0.01 per share compared with a net loss of C$447,000 or C$0.25 per share in the previous year quarter.

Natural gas distribution company Changfeng Energy reported higher third-quarter net income of C$0.3 million or C$0.005 per share, compared to C$0.09 million or C$0.001 per share in the last year quarter.

Gold explorer Conquest Resources turned to profit in third quarter, reporting net income of C$1.85 million or C$0.023 per share compared to loss of C$0.22 million or C$0.003 per share in the year ago quarter.

In economic news, Statistics Canada said real gross domestic product (GDP) rose 0.3% in the third quarter compared to the second quarter, when the economy grew 0.6% from the first three months of the year.

GDP advanced at a 1% annualized rate in third quarter, after expanding 2.3% and 5.6% in the previous two quarters. Economists predicted a 1.5% gain this quarter.

On a monthly basis, real GDP declined 0.1% in September, short of expectations for 0.1% growth.

WORLD MARKET UPDATES

2010-11-30T10:05:00.001+01:00

US Market Updates

Stocks See Initial Weakness Amid Concerns About Europe - U.S. Commentary

Stocks showed a notable move to the downside at the start of trading on Monday, with lingering concerns about European financial stability generating some selling pressure. The major averages have all slid firmly into negative territory after turning in a mixed performance last week.

The initial weakness in the markets came as traders remain concerned regarding potential debt issues in Portugal and Spain even after the European Union and theInternational Monetary Fund reached an agreement about a financial bailout of Ireland.

Over the weekend, European finance ministers reached an agreement regarding an 85 billion euro financial assistance package for Ireland. Around 35 billion euros will go into propping up the Republic's banking system, while the remaining 50 billion euros will cover the day-to-day financing of the state.

In corporate news, BP Plc (BP) announced that it would sell its majority stake in Argentina-based oil and gas firm Pan American Energy to Bridas Corp. for $7.06 billion. The transaction is expected to be completed in 2011.

Software stocks have helped to lead the markets lower in early trading, while considerable weakness has also emerged among defense, pharmaceutical, andrailroad stocks. Most of the other major sectors have also moved to the downside.

The major averages have not seen much follow-through on their initial drop but remain stuck in the red. The Dow is currently down 83.10 points or 0.8 percent at 11,008.90, theNasdaq is down 12.23 points or 0.5 percent at 2,522.33 and the S&P 500 is down 8.38 points or 0.7 percent at 1,181.02.

Canadian Market Reports

TSX Poised For Mixed Open

Toronto stocks may open mixed Monday amid varied cues from the commodities and global equity markets. While most Asian markets ended higher, European stocks were lingering in the red as investors shrugged off the news that the EU agreed to extend about $90 billion in bailout loans to Ireland.

U.S. stock futures were pointing to a flat open.

On Friday, the S&P/TSX Composite Index lost 53.11 points or 0.41% to 12,892.71.

The price of crude oil moved up above $84 despite a strong dollar. Crude for January gained $0.82 to $84.58 a barrel.

The price of gold was trading flat amid a firm U.S. dollar, with gold for December edging up $1.60 to $1,364.00 an ounce.

In corporate news from Canada, uranium miner Uranium One said it has completed the initial closing of its transaction with JSC Atomredmetzoloto, comprising the issuance of 178.13 million new common shares of Uranium One to ARMZ for $610 million in cash.

Oil and natural gas producer Petrobank Energy and Resources said it received necessary final environment approval for its initial two well-pair THAI Dawson project.

Oil and gas firm TransGlobe Energy guided funds flow from operations to be $101 million or $1.43 per share for fiscal 2011.

Owner and operator of land lease communities Parkbridge Lifestyle Communities Inc. said 1561609 Alberta Ltd., a corporation owned of British Columbia Investment Management Corp. has obtained necessary approvals to acquire all of the outstanding common shares of Parkbridge.

News service provider Thomson Reuters announced that it has acquired GeneGo, a provider of biology and disease information, analytics, and decision support solutions for pharmaceutical research and development

Precious metals miner Silvermex Resources said it would privately place up to 19.35 million units at a price of C$0.62 per unit to raise up to C$12 million.

StreamOil & Gas said it privately placed 6,500,000 units at a price of $1.50 per unit for $10 million.

Junior oil and gas firm Canadian Phoenix Resources reported a narrower third quarter net loss of C$2.0 million or C$0.04 per share compared to a loss of C$4.57 million or C$0.10 per share in the year-ago period.

Wireless radio frequency devices maker Active Control Technology Inc. said it's fiscal year 2010 net loss narrowed to C$4.29 million or C$0.02 per share from C$5.67 million or C$0.04 per share year ago. On Friday, the stock shed 20% to C$0.020.

In economic news, Statistics Canada said overall current account deficit, on a seasonally adjusted basis, with rest of the world widened by $4.6 billion to $17.5 billion in the third quarter. Stronger imports of goods accounted for the bulk of the increase in the deficit in the third quarter, as exports of goods also weakened. Economists expected a deficit of C$14.9 billion after the shortfall of C$11 billion initially reported for the second quarter. The second quarter deficit was revised to nearly C$13 billion.

Separately, the agency said the Industrial Product Price Index and the Raw Materials Price Index were up 0.5% and 1.7% respectively in October from a month ago, mainly due to petroleum and metal products.

European Market Reports

French Market Reverses Early Gains

The French market gave up early gains and is in negative territory in afternoon trading trading Monday, as the Irish debt bailout failed to sustain investors' risk appetite. Banks, car manufacturers and construction stocks are lower.

In economic news, Eurozone economic confidence rose to 105.3 in November from 103.8 in October, above the expected reading of 104.9, a survey from European Commission showed.

The UK's mortgage approvals in October declined to 47,185 from 47,369 in September, the Bank of England said. Mortgage approvals in the month were lower than the previous six-month average of 48,503, but stayed above the consensus forecast of 46,500.

Additionally, property data provider Hometrack said UK house prices fell for the fifth consecutive month in November due to the ongoing decline in demand. House prices fell 0.8% month-on-month in November. The decline was 0.9% in October and 0.4% in September.

The CAC 40 opened above the flat line at 3,748, but shortly followed its counterparts in the region and moved into the red. The index is currently retreating 1.15%.

BNP Paribas is leading the decliners by falling 2.8%. Societe Generale, Natixis andCredit Agricole are losing between 2.6% and 1.8%.

Tires and rubber firm Michelin, computer and consulting services company Cap Gemini, machinery and equipment maker Alstom and hotel group Accor are among notable losers.

Carmakers Renault and Peugeot are losing 2.3% each.

Among construction stocks, Saint-Gobain is losing 1.7%, Lafarge is sliding 1.4%,Bouygues is down 1.5% and Vinci is losing 1.1%.

Elsewhere in Europe, the UK's FTSE 100 is losing 0.74% and the German DAX is sliding 1.10%.

Across Asia/Pacific, most major markets closed in the green. Australia's All Ordinaries added 0.35% and Hong Kong's Hang Seng gained 1.26%. Japan's Nikkei 225 and India's BSE Sensex climbed 0.9% and 1.4%, respectively. However, China'sShanghai Composite Index retreated 0.19%.

In the U.S., futures point to a slightly negative open on Wall Street. In the previous session, the major averages ended the day firmly in negative territory. The Dow fell 0.9 percent, the Nasdaq slipped 0.3 percent and the S&P 500 dropped 0.8 percent.

Crude for January delivery is adding $0.82 at $84.58 per barrel and December gold is trading lower by $2.6 at $1359.8 an ounce.

Asia Market Updates

Asian Markets End In Positive Territory

Asian markets open for trading on Monday, the first day of the trading week, ended in positive territory with modest gains on improving market sentiment in the markets, despite weak closing on Friday in the Wall Street. Better than expected sales on Black Friday, bailout of Ireland from the debt crisis and rise in oil prices impacted market sentiment as investors resorted to bargain hunting at lower levels.

In Australia, the benchmark S&P/ASX200 Index advanced 20.20 points, or 0.44%, and closed at 4,618 points, while the All-Ordinaries Index ended at 4,707, representing a gain of 16.50 points, or 0.35%.

On the economic front, results of a survey conducted by the Housing Industry Association along with Jeld-Wen revealed that the number of new homes sold in the country increased in October, although it is unlikely to prevent a renewed decline in residential construction. The New Home Sales Report showed that the number of new homes increased by 2.4% during the month following a downwardly revised 1.7% decline in the previous month.

A report released by the Australian Bureau of Statistics revealed that company operating profits were down a seasonally adjusted 1.5% in the third quarter of 2010 compared to the second quarter. That was below forecasts for a 4% quarterly gain following a revised 17% increase in the second quarter. The report further noted that inventories were down 0.8% on quarter versus expectations for a 0.4% increase after the revised 0.1% decline in the second quarter.

Nufarm, engaged in supply of agricultural chemicals, was the major gainer in the market, having surged 4.95%, lifted by a broker upgrade on higher crop prices.

Healthcare stocks led the gains in late trading session on fresh buying interest evinced by traders in late trading session. Sonic Healthcare gained 1.28%, Cochlear surged up 2.79% and CSL ended in positive territory with a gain of 0.69%.

Oil-related stocks also ended in positive territory following rise in crude oil prices in the international market. Woodside Petroleum gained 1.86%, Santos Ltd added 0.49%,Origin Energy rose 0.76% and Oil Search Ltd was up 0.45%. ROC Oil Ltd remained unchanged from previous close.

Banking related stocks also ended in positive territory with minor gains, lifting the overall market indices into positive territory. ANZ Bank advanced 1.15%, Commonwealth Bank of Australia gained 2.08%, National Australia Bank rose 1.29% and Westpac Banking Corp. was higher by 1.89%. Investment banking company Macquarie Groupended in positive territory with a gain of 0.28%.

Gold related stocks ended in negative territory on lower gold prices in the bullion market.Newcrest Mining lost 1.49% and Avoca Resources declined 2.14%.

In Japan, the benchmark Nikkei 225 Index gained 86.43 points, or 0.86% to 10,126 while the broader Topix index of all First Section issues advanced 7.78 points, or 0.90%, to 875..

On the economic front, a report released by the Ministry of Economy, Trade and Industry revealed that retail sales fell for the first time this year in October as government subsidies wound to a close and tobacco tax was raised. As per the report, retail sales dropped 0.2% during October from a year earlier to 10.8 trillion yen, compared to the 1.4% increase in the previous month. Analysts expected a 0.7% month-over-month increase in retail sales for the month. The report further noted that the unexpected decline in retail sales was due to a 24.1% fall in motor vehicle sales following the expiry of subsidy for purchasing green cars.

Results of a survey conducted by the Shoko Chukin Bank revealed that confidence among small businesses in Japan fell for the third consecutive month in November. As per the survey results, the small business confidence index fell to 45.8 in November from 46.4 reported for the previous month. Confidence among manufacturers fell 1.4 points to 46.6, while that among non-manufacturers edged up to 45.2. The report further noted that small businesses were even more downbeat over their expectations for December, with the index projected to fall to 45.0.

Light sweet crude oil futures for January delivery ended at $84.33 a barrel in electronic trading, up $0.57 per barrel from previous close at $83.76 a barrel in New York on Friday.

Exporters led the gains in the market following weakness in the local currency against theUS dollar. The yen traded above the 84-mark per US dollar, a two-month high following the strengthening of the greenback. Canon Inc. added 1.00%, Advantest Corp.advanced 1.63%, Sony Corp. climbed 2.80%, Sharp Corp. rose 0.86%, andPanasonic Corp. was up 0.99%.

Sea-transport stocks also ended in positive territory on weaker local currency. Mitsui OSK Lines climbed 2.43%, Nippon Yusen surged up 3.64% and Kawasaki Kishen Kaisha gained 3.17%.

Automotive stocks ended in positive territory. Honda Motor Co. added 0.65%, Toyota Motor edged up 0.30%, Nissan Motor climbed 1.53%, Mazda Motor Corp. gained 0.42% and Mitsubishi Motor Corp. rose 0.85%. However, Suzuki Motor Corp. bucked the trend and ended in negative territory with a loss of 1.10%.

Trading companies also advanced on optimism about recovery and weaker local currency. Toyota Tsusho Corp. gained 1.83%, Marubeni Corp. surged up 3.55%,Mitsubishi Corp. advanced 0.85%, Itochu Corp. rose 1.54% and Sojitz Corp. climbed 3.70%.

Real-estate stocks also ended in positive territory. Sumitomo Realty & Developmentgained 1.72%, Mitsui Fudosan rose 1.20%, Mitsubishi Estate advanced 1.12%,Tokyu Land Corp climbed 2.38% and Heiwa Real Estate was higher by 0.88%.

The Indian market bounced back sharply on Monday after a correction last week, as investors bought battered heavyweight stocks such as Reliance Industries, ICICI Bank, TCS, Tata Motors and Hindustan Unilever amid firm global cues. Among the prominent gainers, market heavyweight Reliance Industries climbed 3.7% after crude futures rose to a two-week high above $85 a barrel in Asian trading on optimism over Ireland's €85 billion bailout package. The 30-share BSE Sensex ended up 268 points or 1.40% at 19,405, while the broader Nifty rose by 78 points or 1.36% to 5,830.

Among the other markets in the region, HongKong's Hang Seng Index gained 288.97 points, or 1.26% to close at 23,166, Singapore's Strait Times Index edged higher by 0.13 points, or 0.00%, to close at 3,128, and Taiwan Weighted Index ended in positive territory with a gain of 55.02 points or 0.66% to close at 8,367. However, China'sShanghai Composite Index ended in negative territory with a minor loss of 5.34 points, or 0.19% at 2,866, Jakarta Composite Index in Indonesia slipped 11.86 points, or 0.33%, to close at 3,631, and Seoul Composite Index in South Korea shed 6.26 points, or 0.33%, to close at 1,896.

WORLD MARKET UPDATES

2010-11-29T10:30:00.001+01:00

US Market Updates

Geopolitical Concerns Lead To Initial Weakness On Wall Street

Stocks showed a notable move to the downside at the start of trading on Friday, giving back ground after showing a strong upward move in the previous session. The major averages all moved sharply lower amid renewed geopolitical concerns.

The initial weakness in the markets reflected continued concerns about rising tensions between North and South Korea as well as renewed worries about financial stability in Europe. The concerns have led some traders to move their money out of stocks and into less risky assets.

Traders are keeping a close on developments on the Korean peninsula, as North Korea has warned that planned military exercises by the U.S. and South Korea have put the region on the "brink of war."

North Korea has also reportedly conducted a series of artillery drills and warned the South that it will face a "shower of dreadful fire" if it encroaches on the North's "dignity and sovereignty even in the least."

Stocks are also moving lower amid renewed concerns about debt problems in Europe after a German newspaper reported that members of the European Union and theEuropean Central Bank have urged Portugal to request financial aid in order to avoid a debt crisis.

While Portugal, the European Commission, and the ECB have denied the report, the story has still raised concerns about the financial stability of Europe following the recent troubles in Ireland.

Gold stocks are turning in some of the worst performances in early trading, as the price of gold has come under pressure amid some strength in the value of the U.S. dollar. With the price of gold falling by nearly $18 an ounce, the NYSE Arca Gold Bugs Index is down by 2 percent.

Most other resource stocks have also come under pressure amid a decrease in commodities prices, while brokerage, electronic storage, and housing stocks are also seeing early weakness.

The major averages have edged up off their lows for the young session in the past few minutes but remain firmly in the red. The Dow is down 95.21 points or 0.9 percent at 11,092.07, the Nasdaq is down 12.41 points or 0.5 percent at 2,530.71 and the S&P 500 is down 9.00 points or 0.8 percent at 1,189.35.

European Market Reports

Bleak morning session for Europe

European bourses are a sea of red, with many leading indices looking at suffering treble-digit falls, while others are already experiencing them. Investors are keen to close down positions ahead of a week-end which could see unwelcome developments in the Korean conflict and a worsening of sentiment over the future of the euro-zone.

Reports indicate that North Korea fired on South Korea’s Yeonpyeong Island today, although South Korea has opted not to confirm the reports, citing military policy.

Meanwhile, South Korean president Lee Myung-bak has appointed Kim Kwan Jin as his new defence minister after Kim Tae-young tendered his resignation yesterday. The new defence minister was formerly chairman of South Korea’s joint chiefs of staff and has been in the military for more than four decades. His first task is likely to be to beef up the military presence in Yeonpyeong.

In Paris the CAC 40 is down 66 points at 3,694 while in Germany the DAX is down 92 at 6,787. Spain and Italy remain the hardest hit of Europe’s major bourses, with Spain’s IBEX 35 down 255 points at 9,466 while Italy’s MIB index is 324 points lower at 19,621.

European sovereign debt worries are once again a drag on banks. In France BNP Paribas, SocGen and Credit Agricole are all lower, while in Germany Commerzbankleads the market down.

Spanish banking giant Santander is sharply lower, as are Spanish peers Bankinter, Banco Popular and BBVA; all are 4% or more down from last night’s close.

Not to be left out, Italian banks Banco Popolare, Mediobanca and Banca Popolare Milano have all found reverse gear, though in percentage terms the falls are about half those of their Spanish counterparts.

Elsewhere in the banking sector Deutsche Bank said it now controls more than 50% of the shares of rival Deutsche Postbank following the latest totting up of acceptances of its bid for the Bonn-based bank.

Swiss biotechnology company Actelion is under the weather after UBS cut its rating on the stock from “buy” to “neutral”.

Broker downgrades, this time from Morgan Stanley, are also weighing on sportswear manufacturer Puma, flavour and fragrance maker Givaudan and Ray-Ban sunglasses maker Luxottica; all have been downgraded to “underweight”. Oilfield services providerTechnip, meanwhile, has been cut by Morgan Stanley to “equal weight” from “overweight”.

The broker is sending some love the way of Sky Deutschland, however, upgrading the stock to “overweight” after the recent slide in the company share price.

Spanish property firm Realia Business is to increase its exposure to the French commercial property market by means of an asset swap deal with French counterpartSociete Fonciere Lyonnaise.

Realia is to transfer 29.99% of its French real estate investment trust (REIT), SIIC de Paris, to Societe Fonciere Lyonnaise in exchange for €287m of property assets. The deal reduces Realia’s stake in the REIT below 60%, enabling it to continue to enjoy French tax benefits from its holding.

CAC 40 - Risers
ST Microelectronics (STM) € 6.93 +1.55%
Accor (AC) € 33.71 +0.28%
Carrefour (CA) € 36.30 +0.19%

CAC 40 - Fallers
BNP Paribas (BNP) € 47.67 -4.32%
Societe Generale (GLE) € 37.33 -3.74%
AXA (CS) € 11.70 -3.58%
Alcatel-Lucent (ALU) € 2.13 -3.06%
Credit Agricole (ACA) € 9.85 -3.03%
Peugeot (UG) € 30.39 -2.88%
Technip (TEC) € 61.14 -2.67%
Veolia Environnement (VIE) € 20.98 -2.49%
Vivendi (VIV) € 19.38 -2.39%
Renault (RNO) € 42.88 -2.37%

Asia Market Updates

Indian Market Extends Losses

The Indian market extended its recent losses on Friday, after the Central Bureau of Investigation (CBI) said it was probing 21 companies on the bribes-for-loans scandal and market regulator SEBI said it is examining the possibility of insider trading in shares of at least nine companies. Weak Asian and European markets and a lack of directional cues from Wall Street due to the Thanksgiving holiday on Thursday also dampened investor sentiment to some extent.

Meanwhile, a finance ministry statement termed the housing finance racket, involving several officials of public sector banks, as an "isolated" instance of "alleged illegal gratification." The finance minister has directed all state-run banks, financial institutions and insurance companies to look into their exposures to the various companies mentioned in the CBI application filed in the Court and carry out independent evaluation on the asset quality, documentation and compliance of other prudential requirements.

With an intra-day recovery proving elusive, the 30-share BSE Sensex ended down 182 points or 0.94% at 19,137 after falling to a low of 18,955 earlier in the session. The broader Nifty lost 48 points or 0.82% to end at 5,752.

Shares of mid and small companies tumbled on the back of panic selling triggered by margin calls from stock brokers. The BSE mid-cap and small-cap indexes ended down 3.06% and 4.49%, respectively. In the broader market, declining shares outpaced gaining ones by 2508 to 485 shares.

Sector-wise, property stocks bore the brunt of the selling on concerns about a pullback in lending to the realty sector. Ackruti City (down 13.38%), Orbit Corp (down 13.08%),Indiabulls Real Estate (down 11.88%), D B Realty (down 9.99%), Unitech (down 4.76%), and DLF (down 1.71%) were the prominent decliners.

Hindustan Construction plummeted 19% after the environment ministry reportedly asked its subsidiary Lavasa Corp to stop construction of a township project outside Pune.

Airline stocks such as Kingfisher and Jet Airways fell about 7% each after civil aviation minister Praful Patel asked airlines to avoid any kind of predatory pricing. Bank of Indiarose 2.14% after the state-run lender clarified that its asset quality continues to be good.Piramal Healthcare, which is in the race to acquire Ahmedabad-based Paras Pharmaceuticals, ended up 2.04%.

Jaiprakash Power Ventures tumbled 4.25% after receiving a CBI notice on the ongoing probe into the multi-crore housing loan scam. Jaiprakash Associates plunged a little over 8%. Alphageo (India) declined 3.54% despite winning a new order worth Rs.12 crore from Essar Oil.

Heavyweight Reliance Industries fell nearly 2% to end near the day's low. TCS rose 2.14%, while Infosys eased 0.76%, as the rupee fell to a 10-week low against thedollar on Friday afternoon, tracking losses in other Asian peers and the local stock market. Wipro, which is reportedly trying hard to reinvigorate itself, ended down 0.55%.

In the banking sector, Union Bank of India, Bank of Baroda, HDFC Bank, Axis Bank, Punjab National Bank and IDBI Bank lost between 0.5% and 5%, while SBIadvanced 1.16% and ICICI Bank added 0.68%.

Among metal stocks, Tata Steel, Hindalco, Sterlite, Hindustan Zinc, Sesa Goa andJSW Steel fell by 0.80%-7%. Telecom operator Reliance Communication fell 5.51%, auto maker Tata Motors declined 3.30%, Mahindra & Mahindra fell 3% and mortgage lender HDFC ended down 1.78%.

Forex Top Story

Euro Spirals Lower As Portugal, Spain Deny Bailout In The Works

The euro extended its losses Wednesday as officials from Spain and Portugal denied reports that the European Union is pressuring them to work out a bailout.

Greece and Ireland have reluctantly accepted aid, but the EU is reportedly getting desperate to backstop the debt of the Iberian nations.

An article in FT Deutchland citing an unnamed source said majority of euro area countries and the European Central Bank are urging Lisbon to apply for a financial bailout from the European rescue fund.

It is hoped that a deal for Portugal would ease pressure on Spain, where banks are heavily exposed to Portugal. However, a spokesman for Portugal said the report was completely unfounded and that deep budget cut are in place.

Amid popular unrest aimed at derailing austerity measures, Portugal's government said Friday that the streamlined 2011 budget was approved by parliament.

Spanish Prime Minister Jose Luis Rodriguez Zapatero also rejected the notion that rescue was being negotiated for his country.

The prime minister, whose popularity is sagging following the announcement punishing austerity plans, said the government had undertaken strict reforms to trim the public deficit, and hit out at speculators who bet against the country.

Still, the euro fell further against the dollar, hitting a new 2-month low of $1.3199. Its been a brutal three weeks for the euro, which began November at a 10-month peak near $1.43.

The euro was stuck near last week's 2-month low of Y110.30 against the yen.

Against the sterling the euro hit a 2-month low of 0.8419 before improving to 0.8470.

German consumer price inflation rose to the highest level in more than two years, preliminary data from the Federal Statistical Office showed Friday. The consumer price index, or CPI, rose 1.5% year-on-year in November following the 1.3% increase in October

Canadian Market Reports

Early Signals Point To Sharply Lower Open For TSX

Bay Street stocks may open sharply lower Friday amid renewed worries over the euro zone debt situation and tensions in Korea, with discouraging cues coming in from the global equity markets. While most Asian markets ended lower, European stocks were lingering in the red amid weakness in mining stocks.

Speculation that Spain and Portugal will also be forced to seek a bailout plan hampered the euro and commodities prices.

U.S. stock futures were pointing to a sharply lower open. The U.S. markets will be closed in early afternoon.

On Thursday, the S&P/TSX Composite Index added 43.82 points or 0.34 % to 12,945.81, gaining for a second session.

The price of crude oil edged back near $83 as the U.S. dollar remained firm versus a basket of currencies. Crude for January was down $0.77 to $83.09 a barrel.

The price of gold slipped back near its weekly low amid renewed worries over the debt situation in Spain and Portugal. Gold for December slipped $18.90 to $1,354.10 an ounce.

In corporate news from Canada, oil and gas explorer Ripper Oil and Gas swung to profit in second quarter, reporting net income of C$1.3 million or C$0.06 per share compared to a net loss of C$0.4 million or C$0.02 per share for the year-ago quarter.

Automobile components company Exco Technologies reported higher fourth quarter net income of C$2.4 million or C$0.06 per share, compared to C$364,000 or C$0.01 per share for the year-ago quarter. The company said that its quarterly cash dividend will be increased 25% to C$0.025 per share.

Junior oil and gas firm Twin Butte Energy said it would buy conventional heavy oil producing assets mainly in the Frog Lake area of North Eastern Alberta for $19.50 million.

Oil and gas explorer TriOil Resources reported a narrower third quarter net loss of C$3.47 million or C$0.14 per share compared to C$2.27 million or C$0.79 per share last year.

Radio Frequency Identification products maker Ipico Inc reported a narrower third quarter net loss of C$1.60 million or C$0.03 per share compared to a loss of C$2.15 million or C$0.04 per share in the prior year quarter.

WORLD MARKET UPDATES

2010-11-25T12:12:00.002+01:00

Asia Market Updates

Japanese Market Ends In Negative Territory

The Japanese market ended Wednesday's trading session in negative territory on geopolitical concerns involving North Korea and South Korea. Weaker local currency and the sharp drop in euro also impacted market sentiment, dragging the indices sharply lower at open. However, select buying at lower levels limited the losses in late trading session.

The benchmark Nikkei 225 Index fell 85.08 points, or 0.8%, to 10,030, while the broaderTopix index of all First Section issues also fell 8.91 points, or 1.0%, to 867.

Light sweet crude oil futures for January delivery ended at $81.60 a barrel in electronic trading, up $0.35 per barrel from previous close at $81.25 a barrel in New York on Tuesday.

Exporters ended in negative territory. Sony Corp. declined 2.08%. Sharp Corp. fell 1.59%, Canon Inc. slipped 0.85%, and Panasonic Corp. lost 2.02%.

Automotive stocks also ended in negative territory on geopolitical concerns. Honda Motor Co., was down 1.79%, Toyota Motor Corp. shed 0.91%, Nissan Motordeclined 2.11% and Mitsubishi Motor fell 2.52%.

Real estate stocks ended in negative territory. Mitsui Fudosan shed 1.69%, Sumitomo Realty & Development lost 1.36%, Mitsubishi Estate lost 1.37% and Heiwa Real Estate slipped 0.87%.

Mixed trading was witnessed among the stocks of trading companies. Sojitz Corp.surged more than 9% after the company said that it will soon announce a strategic partnership with Australia's Lynas on supply and development of rare earth materials. The other stocks, however, ended in negative territory. Mitsubishi Corp. declined 1.40%, Toyota Tsusho Corp. shed 1.16% and Mitsui & Co., slipped 0.75%.

In the U.S., stocks took a beating on Tuesday in light of news of flaring tensions between North and South Korea and the lack of a resolution to Ireland's debt woes. An upward revision to third quarter U.S. GDP and uneventful minutes from the Federal Reserve did little to alter the day's negative sentiment. The major averages moved roughly sideways in late-session dealing, ending with steep losses on the day. The Dowplunged by 142.21 points or 1.3% to 11,036, the Nasdaq fell by 37.07 points or 1.5% to 2,495 and the S&P 500 slid by 17.11 points or 1.4% to 1,181.

Forex Top Story

Dollar Hits Fresh 2-Month Peak Versus Euro

The dollar continued to rally versus the euro and sterling Wednesday morning in New York, as the markets braced for a deluge of economic data ahead of the Thanksgiving holiday.

While Europe was still coping with the fallout from the controversial bailout of Irish debt, the dollar was supported by industry data showing a degree of resiliency in the housing market.

US mortgage applications for home purchases rose to their highest level in more than six months, the Mortgage Bankers Association said today.

"The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation," said Michael Fratantoni, MBA's Vice President of Research and Economics.

The dollar rose to a fresh 2-month high of $1.3283 against the euro, having picked up a full ten cents since hitting a 10-month low near $1.43 three weeks ago.

German business sentiment rose in November to its best level in almost 20 years, Germany's Ifo said Wednesday. Germany's relatively robust economy stands in stark contrast to some of its less competitive euro area cousins, fueling talk that the euro may be short lived.

Meanwhile, the dollar rose to a new monthly high of $1.58 versus the sterling.

Against the yen, the dollar improved to Y83.35, staying within a stubborn trading range. The buck touched a 15-year low of 80.22 three weeks ago, and has stalled in its rebound attempt.

The Commerce Department will release its durable goods orders report for the month of October at 8:30 a.m. ET. Economists expect a 0.3% drop in durable goods orders for October, following a sharp 3.5% month-over-month increase in September.

The Bureau of Economic Analysis will release its personal income & outlays report for October at 8.30 a.m ET. Economists expect the report to show that personal income rose 0.4% and personal spending increased 0.5% in the month.

The Labor Department will release its customary jobless claims report for the week ended November 19th at 8:30 AM ET. Economists expect a small increase in claims to 442,000.

At 9.55 a.m. ET, the Reuters/University of Michigan's final report on the consumer sentiment index for November will be released. The consumer sentiment index is expected to be upwardly revised to 69.4 from the mid-month reading of 69.3.

The Commerce Department will release its new home sales report for October at 10 AM ET.

WORLD MARKET UPDATES

2010-11-23T17:51:00.000+01:00

US Market Updates

Stocks Down Sharply In Mid-Morning Trading

Stocks are posting steep losses in mid-morning trading on Tuesday, with flaring tensions between North and South Korea driving the selling pressure. In Europe, Ireland remains the headline concern amid the debt contagion plaguing the Eurozone.

The worries are eclipsing U.S. economic data, including a better than expected upward revision to third quarter GDP.

In recent dealing, the major averages have continued to bounce around near their worst levels. The Dow is currently down 139.56 points or 1.3 percent at 11,039.02, theNasdaq is down 31.26 points or 1.2 percent at 2,500.76 and the S&P 500 is down 15.21 points or 1.3 percent at 1,182.63.

Stocks fell off a cliff at the open amid news that North Korea opened artillery fire on a South Korean island just off of the two countries' western border earlier. South Koreathen retaliated, prompting an escalation in military tensions.

Additionally, a lack clarity about Ireland's expected debt bailout have further exacerbated concerns over European financial stability. Political analysts indicated that fallout from the deal could put Ireland's ruling coalition in danger.

On the U.S. economic front, the National Association of Realtors said existing home sales fell 2.2 percent to a seasonally adjusted annual rate of 4.43 million in October from 4.53 million in September. Economists had been expecting existing home sales to slip to an annual rate of 4.42 million.

Earlier, the Commerce Department reported that U.S. gross domestic product increased at an annual rate of 2.5 percent in the third quarter compared to the initially reported 2.0 percent growth. Economists had expected the pace of GDP growth to be revised up to 2.4 percent.

The upward revision reflected stronger than previously reported growth in consumer spending, exports, and state and local government spending.

In the afternoon, the Federal Reserve will release the minutes of its November 3rdFederal Open Market Committee meeting, during which it announced additional quantitative easing measures. The minutes, which traditionally feature economic commentary, are due out at 2:00 p.m. ET.

Sector News

Steel stocks are among the steepest decliners in the early going, dragging the NYSE Arca Steel Index down by 2.5 percent. Despite the drop, the index remains in a range.

Oil service stocks are also moving notably lower, with the Philadelphia Oil Service Sector index posting a 2.2 percent loss. The decline comes as the price of crude oil is down by $0.95 or 1.2 percent at $80.79 a barrel.

Considerable weakness is also visible among housing stocks, driving the Philadelphia Housing Sector Index down by 1.4 percent. With the slide, the index is on pace to end at its lowest level in three weeks.

Airline, software, telecom and healthcare-related stocks are also retreating on the day, reflecting the day's broad-based selling.

Stocks Driven By Analyst Comments

Despite the sharp slide by the broader markets, MedAssets Inc. (MDAS) is trading higher after being upgraded to Outperform from Neutral by Robert Baird & Co. The stock has gained 5.2 percent, moving further off of last week's nearly eighteen-month closing low.

Meanwhile, Health Net (HNT) is trading lower after Stifel Nicolaus lowered their rating on the stock from Buy to Hold. Shares are down by 2.4 percent, on pace for a three-week closing low.

Arch Coal (ACI) is also under pressure after being downgraded by BB&T Capital Markets from Buy to Hold. The stock is down by 4 percent, slipping from the two-year closing high of $30.52 set yesterday.

Other Markets

In overseas trading, stock markets in the Asia-Pacific region ended on a sour note Tuesday. Hong Kong's Hang Seng Index fell by 2.7 percent and India's BSE 30 Index declined by 1.3 percent, while the Japanese markets were closed on the day.

The major European markets also remain under pressure. The German DAX Index is down by 1.5 percent, while the U.K.'s FTSE 100 Index and the French CAC 40 Index are down by 1.3 percent and 2.1 percent, respectively.

In the bond markets, treasuries are seeing moderate upside. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.733 percent, posting a loss of 8 basis points.

European Market Reports

TUI bid rumour revived

Market Movers
FTSE 100 5,620.34 -1.06%
FTSE 250 10,699.29 -0.90%
techMARK 1,725.97 -0.89%

With the Dow Jones index expected to register a triple-digit fall when Wall Street opens, sentiment in London has dipped further.

Fears of debt contagion in the euro-zone are pushing the banks down, with Barclays, Standard Chartered and Lloyds Banking the hardest hit. Royal Bank of Scotlanddefies the trend, however, after UBS upgraded the stock to 'buy', the broker suggesting the bank can manage its £50bn Irish exposure.

The Korean situation is sapping demand for miners such as Vedanta, Kazakhmys andAntofagasta. Gold miners Randgold Resources and Fresnillo both defy the trend in the mining sector, however, as risk averse investors respond to increased tension in the east by pushing up the price of gold

The shelling of Yeonpyeong Island by North Korea is the fourth flare-up of tensions between North Korea and South Korea this year. In March, a South Korean corvette was sunk near the disputed border between the two counties, with a North Korean submarine suspected of being responsible for the act.

In May, South Korea suspended trade with its northern neighbour and banned North Korea’s ships from the waters around Seoul. Hostilities broke out again in October when troops exchanged fire across the border, ahead of the G20 summit meeting held in Seoul.

Aero-engine maker Rolls-Royce got a lift from news that a pair of A380 super-jumbos owned by Qantas will resume flights again on Saturday, three weeks after the airline’s entire fleet was grounded after an engine exploded mid-flight.

Holiday firm TUI Travel is another flying high, on revived speculation that its major shareholder, TUI, is preparing a bid.

Mitchells & Butlers' debt reduction programme has cut the pub group’s interest bill, helping boost full-year profit by 26%. Panmure Gordon downgraded the shares from “buy” to “hold”, even though it was impressed with current trading. Like many in the market it was disappointed that the group did not resume dividend payments. The broker had forecast a payment of 7.5p.

The M&B board said it will make a decision on dividend payments after monitoring the level of operating cash flow generation and capital investment opportunities for the business during 2011.

“We leave our 393p price target unchanged, but there is insufficient upside to retain our positive recommendation and we downgrade from Buy to Hold,” Panmure Gordon said.

Water Group Severn Trent posted a fall in profits in the six months to 30 September despite higher revenues, after facing a number of charges. The company, which serves 8m customers across England and Wales, said pre-tax profits fell to £101.1m from £208.2m the previous year on turnover that rose to £867.9m from £852.1m.

De La Rue’s underlying interim profits tumbled after the well-flagged problems at one of its paper production sites. That cost it £35m and the resignation of chief executive James Hussey. The firm says demand for banknotes was also weak generally in the past six months with revenues falling from £252m to £209m.

Emergency repair service provider Homeserve posted a 32% decline in half year pre-tax profit as it issued a confident outlook for the year. The boiler repair group said statutory pre-tax profit fell to £17.8m for the six months ended 30 September 2010 from £26.0m after including exceptional revenue of £10.2m.

Lower impairments and a much stronger investment portfolio were behind a sharp increase in half-year profit at mezzanine finance specialist Intermediate Capital. It posted a profit before tax of £105.1m for the six months ended 30 September compared with just £8.1m a year ago and £97.7m in the second half of the last financial year.

Blue-blood investment firm Caledonia Investments is taking a cautious view of short-term prospects for equity markets and intends to increase liquidity and focus more on income rather than capital growth.

Internet service provider TalkTalk is buoyant after Credit Suisse upgraded the stock from “neutral” to “outperform”.

Electrical component maker Laird is acquiring Cattron Group, which makes remote controls for cranes, agricultural machinery and other equipment, for $90m (£56.5m). The acquisition will allow Laird to expand its wireless ‘machine-to-machine’ offering while providing technology, product development and revenue synergies, Laird said.

A combination of a recovery in sales and cost-cutting helped industrial chain-makerRenold move into profit in the half year to September 30. Renold said it has begun discussions on the future of its Seclin facility in France that could result in the cessation of activities there. Chief executive Robert Davies told ShareCast that the manufacturing operations at the facility would be moved to the UK.

Oil and gas services provider Hamworthy has taken a 38% slump in first half profits on the chin and thinks it will meet expectations for the full year.

Shares in Intellego jumped after the training consultancy group said it had made a good start with its trial programme providing financial services products to a high street bank and other financial services groups.

Gold producer Goldplat is to increase its mining assets in Ghana through a deal worked out with Canadian mining firm Gulf Coast Resources (GCR). Fellow gold miner Shanta Gold has placed an order for two new 800 kilowatt ball mills for the New Luika gold mine. The company is paying $2.52m for the mills.

Shares in Renovo climbed after the biopharmaceutical reported a successful outcome in trials for the use of Juvista scar treatment on children.

Asia Market Updates

Indian Market Ends In Negative Territory

India's benchmark 30-share Sensex ended in negative territory on Tuesday but well off the lows on weak global cues and concerns about EU debt crisis. Exchange of fire between North Korea and South Korea also impacted market sentiment. Smart recovery in late trading session, however, limited the losses. The benchmark BSE sensex ended at 19,694.81, down 1.33% or 265.75 points, while the broader Nifty index ended at 5,934.75, down 75.25 points, or 1.25%.

Banks, realty and PSU stocks led the decline in the market. State Bank of India was down 3.28% followed by ICICI bank which shed 2.21%.

Hindalco, Sterlite, Tata Power and Tata Steel also ended in negative territory dragging the indices lower on weak global cues.

Reliance Industries, ITC and HDFC also slipped into negative territory.

In realty sector, Unitech declined 4.38%, followed by DB Realty, India Bulls Real Estate and Akruti City.

The major gainers in the market included pharmaceuticals and select automotive stocks. Among the gainers, Orchid Chemicals surged up 4.37% followed by Maruti Suzukiwith a gain of 1.55%.

The Japanese market was closed for a holiday.

Among the other markets in the region, China's Shanghai Composite Index declined 1.94%, while the Hang Seng Index in Hong Kong plunged more than 600 points, or 2.67% on monetary tightening measures in mainland China. The other markets in the region ended in negative territory.

European markets were also trading in negative territory on concerns of contagion impact of debt crisis in countries like Portugal and Spain following Ireland's rescue efforts.

The futures in the US point to a weak opening on EU debt concerns even as traders await third quarter GDP data for cues on economy.

Forex Top Story

Dollar Hits $1.35 Versus Euro Amid Doubts Over Ireland Rescue

The dollar extended yesterday's rally versus the euro on Tuesday, as traders were concerned about a lack clarity on Ireland's expected debt bailout.

Political fallout from the deal could put Ireland's ruling coalition in danger. Sinn Fein said Tuesday it would table a motion of no confidence in Irish Prime Minister Brian Cowen.

The safe haven buck also got a boost from tensions in Asia, where North Korea shelled a South Korean military post, killing two soldiers.

The news from across the Atlantic may overshadow a flurry of economic data from the US, including the preliminary estimate on third quarter GDP.

The dollar jumped to $1.3500 versus the euro, near last week's 2-month high of $1.3443. With the advance, the dollar moved well away from a 10-month low near $1.43 set earlier this month.

Eurozone private sector growth climbed to a three-month high in November boosted by both manufacturing and service sectors.

The flash composite output index rose to 55.4 from October's eight-month low of 53.8, Markit Economics said Tuesday.

The buck was steady versus the Sterling, holding at $1.5950. Despite low interest rates and stamp duty holiday, the British mortgage market remained subdued in October with approvals falling to a 19-month low.

The dollar gave back some of its overnight gains versus the yen, easing back to Y83.30 as of 8 am ET.

The Bureau of Economic Analysis will release its preliminary estimate of third quarter GDP report at 8:30 a.m. ET. Economists expect GDP growth for the quarter to be upwardly revised to 2.4% from earlier an earlier estimate of 2.0% provided last month.

At 10.00 a.m ET, the National Association of Realtors will release its report on existing home sales for October. Economists estimate existing home sales of 4.42 million for the month.

At 2.00 p.m ET, the Federal Reserve will release the minutes of its November 3rd Federal Open Market Committee meeting. After the meeting the Fed announced quantitative easing measures to extend $600 billion over the next few months.

Canadian Market Reports

TSX May Extend Losses At Open On Global Cues

Bay Street stocks are poised for a weak open Tuesday amid falling commodities prices and discouraging cues from the global equity markets.

Stocks across the globe fell as risk appetite waned amid escalating tension in theKorean peninsula after North Korea fired artillery shells at a South Korean island earlier today. Also growing concerns over the euro zone debt situation weighed on trader sentiment.

On Monday, the S&P/TSX Composite Index shed 27.32 points or 0.21% to 12,929.01.

The price of crude oil moved down near $80 even as tension escalated in Korean peninsula. Also, concerns over the euro zone debt situation continued to weigh on sentiment, with crude for January slipping $1.39 to $80.35 a barrel.

The price of gold was trading flat amid growing concerns over the euro zone debt situation. Gold for December edged up $2.90 to $1,360.70 an ounce.

In M&A news, Thailand's PTT Exploration forays into Canada's oil sands. Energy company Statoil ASA agreed to sell 40% of its interest in Alberta, Canada-based Kai Kos Dehseh oil sands project to Thailand's PTT Exploration and Production (PTTEP) for about $2.28 billion.

In corporate news from Canada, Potash Corp. said it would raise about $1 billion by selling 7 year and 30 year notes to fund its buyback plans.

Application life cycle management technology services provider MKS Inc. reported improved second-quarter net income of $2.40 million or $0.23 per share compared to $1.61 million or $0.16 per share reported a year ago. Analysts were expecting the company to report net earnings of $0.13 per share for the quarter.

Gold explorer Queenston Mining said it privately placed 3 million shares at C$6.70 to raise C$20.1 million. The stock closed Monday at C$5.750.

In economic news, Statistics Canada said consumer prices rose 2.4% year-over-year in October, with nearly half of the 0.5 percentage point increase caused by highergasoline prices. Economists were expecting the consumer prices to rise 2.2% on an annual basis, following an unrevised 1.9% increase in September. Meanwhile, the Bank of Canada's core index, which the bank uses to measure inflation relative to its 2% target rate, advanced 1.8% in the 12 months to October, following a 1.5% rise in September.

In another report, the agency said retail sales rose 0.6% in current dollars to C$36.4 billion in September, moving up for a fourth straight month. Economists expected retail sales to rise 0.7%, following the revised 0.6% advance reported for August. Excluding auto sales, retail sales were up 0.4% from August.

From the U.S., the Commerce Department said that third quarter gross domestic product increased at an annual rate of 2.5% compared to the initially reported 2.0% growth. Economists had expected the pace of GDP growth to be revised up to 2.4% .

WORLD MARKET UPDATES

2010-11-23T11:56:00.000+01:00

US Market Updates

Stocks Turn Mixed In Mid-Morning Trading

Stocks are showing a lack of direction in mid-morning trading on Monday, as traders await any details on Ireland's bailout package. Concerns over persistent debt problems in Europe are hampering any meaningful movement in stocks thus far.

The major averages have moved to the downside in recent dealing but currently remain mixed. While the Nasdaq is up 0.98 points or less than 0.1 percent at 2,519.10, theDow is down 70.95 points or 0.6 percent at 11,132.60 and the S&P 500 is down 6.45 points or 0.5 percent at 1,193.28.

Some optimism was visible before the markets opened amid news that Ireland applied for aid, although concerns about the repercussions of the bailout took the wind out of traders' sails.

The financial stability of Europe remains a key concern amid the Irish debt crisis, with possible complications from Spain and Portugal also on the horizon.

In earnings news, Tyson Foods (TSN) posted adjusted fourth-quarter net income of $0.64 per share, topping estimates for earnings of $0.56 per share for the period. Sales came in at $7.44 billion, short of analyst estimates for $7.75 billion for the quarter.

After the markets close for trading today, Hewlett Packard (HPQ), Jack in the Box(JACK), La-Z-Boy (LZB) and Pacific Sunwear (PSUN) will report their quarterly results.

In other corporate news today, U.K.-based defense and aerospace company Rolls-Royce Group PLC received a $1.8 billion contract from Air China Ltd. to provide engines for a total of 20 new aircraft. The contract also includes a long-term service agreement for the engines.

Sector News

Health insurance stocks are among the strongest percentage gainers in the early going, with the Morgan Stanley Healthcare Payor Index up by 1.4 percent. The advance is helping the index to move back towards its best levels since 2008, set earlier this month.

Electronic storage stocks are also seeing modest strength, with SanDisk (SNDK) leading the way higher after an upgrade at Robert W. Baird. Shares of SanDisk are currently up by 5 percent after reaching a three-month intraday high in earlier trading.

On the other hand, banking stocks are under pressure, with the KBW Bank Index posting a loss of 1.4 percent. The decline has dragged the index down to its lowest intraday level in three weeks amid worries about institutional exposure to the Irish financial sector.

Oil service stocks are also under pressure amid a decrease by the price of oil on the day. The Philadelphia Oil Service Index is down by 1.5 percent as the price of oil has slipped by $0.39 to $81.59 a barrel.

Stocks Driven By Analyst Comments

Argonaut Group (AGII) is trading higher after being upgraded at FBR Capital Marketsfrom Perform to Outperform. The broker also raised its price target on the stock from $40 to $46 after seeing a strategy to boost returns following a recent meeting with company management. The stock is up by 0.4 percent after rising to a two-year intraday high.

Meanwhile, Massey Energy (MEE) is trading lower after being downgraded at FBR Capital Markets from Outperform to Market Perform. Shares are down by 2.2 percent, slipping from the seven and a half month closing high of $49.01 set on Friday.

Atwood Oceanics (ATW) is also under pressure following a downgrade by Wells Fargo to Market Perform based on recent valuation. The stock has fallen by 2.3 percent, pulling back further off last week's seven-month closing high.

Other Markets

In overseas trading, stock markets in the Asia-Pacific region ended on a mixed note Monday. Japan's benchmark Nikkei 225 Index gained 0.9 percent, while Hong Kong'sHang Seng Index fell by 0.4 percent.

The major European markets are also mixed. The German DAX Index is up by 0.1 percent, while the French CAC 40 Index and the U.K.'s FTSE 100 Index are both down by 0.5 percent.

In the bond markets, treasuries are seeing solid gains. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.813 percent, posting a loss of 6.2 basis points.

European Market Updates

Footsie gives up gains

      Market Movers
      techMARK 1,750.61 -0.04%
      FTSE 100 5,714.38 -0.32%
      FTSE 250 10,866.36 +0.36%

Footsie has turned lower as the relief over the EU bail-out of Ireland fades.

Miners got a boost on hopes the bail-out will stabilise the global economy but are now mixed. Xstrata is slightly higher but BHP Billiton and Rio Tinto are among the fallers.

It’s a slow start to the week on the company front. But Rolls-Royce has picked up a morale boosting $1.8bn (£1.1bn) engine order from China just weeks after the problems that grounded Airbus A380 super-jumbos around the world.

Defence group Qinetiq has nabbed a $2bn five-year deal to provide engineering services to the Kennedy Space Centre in Florida. The contract, with US space agency NASA, is a cost-plus-award-fee contract to begin next March and will run for five years.

Go-Ahead chief financial officer Nick Swift is swapping trains and buses for planes as he takes up the same position at British Airways, replacing Keith Williams who becomes chief executive of BA when it merges with Spanish peer Iberia.

Mining heavyweight Anglo American has puts its Callide thermal coal mine up for sale. The mine in Central Queensland, a low cost coal producer, will go as part of Anglo’s focus on growing its metallurgical coal and high margin export thermal coal businesses.

Mitie has grown interim profit by 12% and the outsourcing and asset management group is confident of meeting expectations for the full-year and picking up new government work next year. Profit before tax and one-off items was up to £47.5m in the six months to 30 September from £42.3m a year ago on revenue 15% higher at £918.7m.

Estate agent chain Winkworth expects to beat full-year profit forecasts after growing revenue by 20% in the first nine months, but 2011 is expected to be another low volume year, like 2010. Franchise offices enjoyed a strong third quarter, it said Monday, despite low transaction volumes, especially outside London, and a drop in prices compared with the first half.

Education solutions provider RM reported record full year profit as growth continues in each of its three divisions. Pre-tax profit rose to £24m for the year to 30 September 2010 from £16.3m the year before. Revenue increased to £380.1m from £346.9m the year before.

FTSE 100 - Risers
TUI Travel (TT.) 206.30p +2.74%
Compass Group (CPG) 538.50p +1.80%
Vedanta Resources (VED) 2,243.00p +1.59%
Severn Trent (SVT) 1,460.00p +1.46%
Capital Shopping Centres Group (CSCG) 371.00p +1.45%
Kingfisher (KGF) 248.00p +1.35%
Pearson (PSON) 942.00p +1.24%
Scottish & Southern Energy (SSE) 1,170.00p +1.21%
InterContinental Hotels Group (IHG) 1,153.00p +1.05%
Sage Group (SGE) 263.00p +0.77%

FTSE 100 - Fallers
Royal Bank of Scotland Group (RBS) 40.54p -2.94%
Legal & General Group (LGEN) 95.70p -1.90%
ICAP (IAP) 466.00p -1.89%
Lloyds Banking Group (LLOY) 65.50p -1.83%
Standard Life (SL.) 219.30p -1.62%
Prudential (PRU) 605.50p -1.46%
Autonomy Corporation (AU.) 1,398.00p -1.27%
Admiral Group (ADM) 1,536.00p -1.16%
BG Group (BG.) 1,209.50p -1.02%
Inmarsat (ISAT) 684.00p -1.01%

FTSE 250 - Risers
Yell Group (YELL) 12.42p +4.90%
Spirax-Sarco Engineering (SPX) 1,844.00p +4.77%
Kesa Electricals (KESA) 166.80p +4.32%
Taylor Wimpey (TW.) 25.49p +4.04%
Mitie Group (MTO) 208.40p +3.68%
Enterprise Inns (ETI) 110.10p +3.28%
Premier Foods (PFD) 17.39p +3.08%
Brown (N.) Group (BWNG) 292.40p +2.60%
Devro (DVO) 265.30p +2.47%
QinetiQ Group (QQ.) 115.00p +2.40%

FTSE 250 - Fallers
Gartmore Group Ltd. (GRT) 106.10p -3.46%
SIG (SHI) 117.60p -3.21%
Fenner (FENR) 298.00p -2.30%
Daejan Holdings (DJAN) 2,531.00p -2.24%
Xchanging (XCH) 120.10p -1.96%
Melrose Resources (MRS) 240.40p -1.88%
Redrow (RDW) 105.40p -1.50%
Aquarius Platinum Ltd. (AQP) 334.50p -1.33%
Shanks Group (SKS) 118.90p -1.25%
Fidessa Group (FDSA) 1,481.00p -1.20%

Asia Market Updates

Asian Markets Mostly End Higher

Asian markets open for trading on Monday, the first day of the trading session, ended mostly in positive territory, lifted by optimism about solution for Ireland's debt crisisfrom the International Monetary Fund and the European Union. Positive closing onWall Street on Friday amid optimism about sustaining economic recovery also lifted market sentiment, with resource stocks leading the gains. The markets in China andHong Kong, however, ended in negative territory following tightening controls imposed by China to cool-down its economic growth.

In Australia, the benchmark S&P/ASX200 Index advanced 14.30 points, or 0.31%, and closed at 4,643 points, while the All-Ordinaries Index ended at 4,732, representing a gain of 14.10 points, or 0.30%.

Queensland freight railway company, QR National made an impressive in the market with a public float that eventually turned out to be the major trader with large volume and value, lifting the overall sentiment in the market, amid optimism about the strength of the Australian economy. The shares of the company, listed at A$2.54 ended at A$2.65 a share at close.

Mixed trading was witnessed among the major resource stocks. BHP Billiton added 0.62%, Rio Tinto advanced 0.50%, Gindalbie Metals climbed 3.06%, Iluka Resources gained 1.16%, Macarthur Coal rose 0.82%, and Minara Resourcessurged up 3.25%. However, Fortescue Metals ended in negative territory with a loss of 1.19%, Murchison Metals fell 2.05% and Oz Minerals shed 1.16%. Mincor Resources remained unchanged from previous close.

Mixed trading was also witnessed among banks and financial stocks. ANZ Bankslipped 0.04%, Commonwealth Bank of Australia declined shed 0.16% and National Australia Bank was down 0.29%. However, Westpac Banking Corp. bucked the negative trend and ended in positive territory with a gain of 0.46% and investment banking company Macquarie Group advanced 0.66%.

Gold mining stocks Newcrest Mining ended in negative territory with a loss of 0.60%.

Oil related stocks also witnessed mixed trading. Santos Ltd and Oil Search Ltdremained unchanged from previous close. ROC Oil Ltd ended in negative territory with a loss of 1.28%. However, Origin Energy ended in positive territory with a gain of 0.77% and Woodside Petroleum gained 0.98%.

In Japan, the benchmark Nikkei 225 Index advanced 92.80 points, or 0.93% 10,115.19, while the broader Topix index of all First Section issues rose 5.96 points, or 0.69%, to 875.

On the economic front, a report released by the Japan Chain Stores Associationrevealed that supermarket sales in the country fell 0.3% on an annual basis in October, the same rate of decline witnessed in September. The data further noted that sales before stores adjustment, were down 2.5% in October, following a 2.7% fall in the prior month.

Separately, a statement released by the Japan Franchise Association revealed that convenience store sales fell 5.9% year-on-year in October, following a 12.9% increase in the previous month. The report revealed that sales declined for the first time in four months. It has also revealed that the number of customers visiting convenience stores fell 4.4% year-on-year to 1,067,605 in October.

Inpex Corp., engaged in oil exploration and mining, ended in positive territory with a gain of 3.59%.

Glass and ceramics stocks advanced on optimism about economic recovery. Nippon Electric Glass Co., gained 2.68%, Asahi Glass Co. rose 1.85%, Tokai Carbon Co.advanced 1.87% and NGK Insulators added 0.72%.

Machinery stocks also ended in positive territory. Komatsu Ltd gained 2.89%, Hitachi Construction Machinery climbed 2.49%, Okuma Corp. surged up 4.34%, JTEKT Corp. advanced 1.99% and NSK Limited was higher by 2.30%.

After plunging to a two-month low last week, India's benchmark 30-share Sensexbounced back sharply on Monday, as investors lapped up bluechip stocks in the banking, IT, oil/gas, metals and auto space, tracking firm global cues after Irelandaccepted an international bailout. Brisk short covering ahead of the expiry of near-month derivative contracts on Thursday also contributed to the sharp upmove. While theSensex gained 372 points or 1.90% to end at 19,958, the broad-based Nifty index rose by 120 points or 2.03% to 6,010.

Among the other markets in the region, China's Shanghai Composite Index slipped 4.20 points, or 0.15% to close at 2,884, HongKong's Hang Seng Index declined 81.69 points, or 0.35% to close at 23,524, and Singapore's Strait Times Index ended in negative territory with a loss of 6.45 points, or 0.20%, at 3,191.

However, Jakarta Composite Index in Indonesia added 16.18 points, or 0.43%, to close at 3,741, Seoul Composite Index in South Korea ended in positive territory with a gain of 3.38 points, or 0.17%, at 1,944, and Taiwan Weighted Index advanced 68.79 points or 0.83% to close at 8,375.

Forex Top Story

Dollar Rebounds, Ireland Accepts Bailout

With Ireland finally appealing to the EU and the International Monetary Fund for a financial aid package, the dollar wobbled against the euro and sterling Monday morning, fighting back from steep early losses amid concerns about the size and scope of the rescue.

European officials are looking to contain Ireland's debt crisis, but bond vigilantes are poised to target other debt-ridden nations like Portugal and Spain if plans for an Eur 80 billion bailout fall through at the the eleventh hour.

Ireland was reluctant to accept the bailout, fearing the conditions attached to aid would be odious.
Dollar Rebounds, Ireland Accepts Bailout

Rating agency Moody's said on Monday that Ireland may face a multi-notch downgrade as the EU/IMF aid package raises the country's debt burden.

The dollar improved to $1.3665 against the euro, having dipped toward $1.3800 in overnight dealing. Earlier in November, the dollar hit a 10-month low near $1.4300.

A similar pattern was seen against the sterling, with the dollar fighting back to $1.5975 from near $1.6100. British officials say their share of the bailout for Ireland would be around $11 billion. London lenders are heavily exposed to Irish banks, and are hoping to backstop the Irish banking system.

There was relatively little movement seen against the yen, with the pair staying near Y83.50. The dollar has stabilized since hitting a 15-year low of Y80.22 earlier this month.

Monday will be a quiet day on the economic front, with most of this week's data releases coming on Tuesday and Wednesday. The markets in the US are closed for Thanksgiving on Thursday.

Canadian Market Reports

TSX Poised For Mixed Open Amid Flat Commodities

Toronto stocks may witness a lackluster session Monday amid mixed cues from the equity and commodities markets.

European stocks and euro moved higher in early deals after Ireland agreed to a bailout plan for its banks from the European Union and the IMF, but have now turned lower.

On Friday, the S&P/TSX Composite Index added 86.33 points or 0.67% to 12,956.33.

The price of crude oil was little changed as traders overlooked the last week's move byChina to hike the reserve ratio requirements for its banks and await a host of economic data due out from the U.S. during this week. Crude for January edged down $0.04 to $81.94 a barrel.

The price of gold was flat, with gold for December edging up $0.70 to $1,353.00 an ounce.

In corporate news from Canada, technology licensing company Wi-LAN Inc. said it has initiated patent infringement suit against Comcast Corp., Time Warner Cable Inc. andCharter Communications.

Natural resources company Potash One Inc. said it would be acquired by K+S Aktiengesellschaft for C$4.50 per share in cash for total consideration of around C$434 million. KCL shares closed Friday's session at C$3.620.

Energy conservation technology services provider MicroPlanet Technology posted a narrower third-quarter net loss of $1.0 million or $0.02 per share, compared to $1.3 million or $0.03 per share in the same quarter last year.

Natural resources explorer Silver Quest Resources said it would acquire 100% interest in 316 quartz mineral claims covering approximately 6,400 hectares known as the Rude Creek Property.

Silver explorer Arian Silver Corp. said it has commenced a new 10,000 million drill program at its 100% owned San Jose Property, Zacatecas, Mexico.

In brokerage ratings, Raymond James hiked its price target on Osisko Mining Corpto C$16 from C$14 and that of West Fraser Timber to C$55 from C$50.

Raymond James upped its price target on Canfor Corp to C$12.50 to C$11.25 and maintained its "Outperform" rating on the stock.

WORLD MARKET UPDATE

2010-11-19T17:57:00.000+01:00

US Market Updates

Stocks Posting Modest Losses In Mid-Morning Trading

Stocks are down by modest margins in mid-morning trading on Friday, with traders doing some profit taking following yesterday's rally while looking towards overseas news including a move by China to curb runaway economic growth.

The major averages have all seen choppy movement in recent dealing as they bounce around near session lows. The Dow is currently down 48.67 points or 0.4 percent at 11,132.56, the Nasdaq is down 11.25 points or 0.5 percent at 2,503.15 and the S&P 500 is down 5.63 points or 0.5 percent at 1,191.06. Traders have looked overseas amid a light day on the economic front in the U.S. The People's Bank of China stated that it would raise the reserve ratio by 50 basis points, effective November 29th, in an effort to manage its surging growth by limiting the flow of cheap cash in its economy. Meanwhile, at a European Central Bank conference in Germany, Federal Reserve Chairman Ben Bernanke said that China's efforts to under-value its currency are hampering the global recovery, while he defended his own decision for additional Fed stimulus in the U.S.

The Fed chief argued that further quantitative easing measures are necessary to lower unemployment, which would in turn backstop the value of the dollar as the growth of the U.S. economy returns to normal levels.

In other global news, investors continue to watch Ireland amid speculation that the emerald isle is coming closer to accepting a bailout package to deal with its debt problems.

With earnings season winding down, computer maker Dell Inc. (DELL) said that its third quarter profit more than doubled from last year, as revenues surged and margins improved amid strong corporate demand and solid supply-chain execution. The company's quarterly earnings came in above analysts' expectations.

H.J. Heinz Co. (HNZ) reported second-quarter net income that beat estimates by 2 cents, while its revenues fell short of estimates. Ann Taylor Stores Corp. (ANN) posted adjusted third-quarter net income and revenues that topped projections along with its fourth quarter and full-year guidance.

Sector News

Oil service, housing and utility stocks are among the day's most heavily sold sectors. The 1 percent decline by the Philadelphia Oil Service Index comes as the price of oil has dropped by $1.04 to $80.81 a barrel amid concerns about lower demand from China.

Banking stocks are also trading lower, pulling the KBW Bank Index down by 0.8 percent. The decline has the index on pace for its lowest close in three weeks.

Meanwhile, gains by electronic storage stocks are helping to offset some of the downside in the other market segments. The NYSE Arca Disk Drive Index is up by 0.8 percent but remains in a recent trading range.

Stocks Driven By Analyst Comments

Sunpower (SPWRA) is trading lower after being downgraded by Wedbush Morgan from Neutral to Underperform. The broker also lowered its price target on shares from $11 to $7. The stock is down by 6.7 percent, sinking to a two-month intraday low.

Patterson-UTI Energy Inc. (PTEN) is also under pressure after Dahlman Rose dropped its rating on the stock from Buy to Hold. The stock is posting a loss of 1.2 percent, slipping to a three-week intraday low.

On the other hand, Nice Systems (NICE) is posting a notable gain after HSBC Securities raised its rating on the stock from Neutral to Overweight. The price target was raised from $37 to $41. Shares are up by 1.8 percent, bouncing back further off this week's six-week closing low.

Other Markets

In overseas trading, stock markets in the Asia-Pacific region ended on a mixed note on Friday. Japan's benchmark Nikkei 225 Index inched up 0.1 percent, while Hong Kong's Hang Seng Index edged down by 0.1 percent.

Meanwhile, the major European markets remain down by varied margins. The German DAX Index and the French CAC 40 Index are down by 0.5 percent and 1 percent, respectively, while the U.K.'s FTSE 100 Index is down by 1.4 percent.

In the bond markets, treasuries are little changed, with the yield on the benchmark ten-year note holding at 2.893 percent.

European Market Updates

The major European averages are moving to the downside on Friday, with the French CAC 40 Index and the German DAX Index moving down 0.60% and 0.27%, respectively, while the U.K.’s FTSE 100 Index is receding 1.08%.

In economic news, Germany’s Federal Statistical Office showed that producer price index rose 4.3% year-over-year in October following 3.9% growth in the previous month. Economists had expected a producer price inflation rate of 4.1%.

U.S. Economic Reports

Federal Reserve Chairman Ben Bernanke has launched a strong defense of the central bank's new asset purchase program amid a barrage of criticism at home and abroad. He argued that more monetary easing was necessary to bring down high unemployment in U.S., even as he admitted there were limits to what can be achieved by the central bank alone.

"On its current economic trajectory the United States runs the risks of seeing millions of workers unemployed or underemployed for many years," Bernanke said in prepared remarks for delivery at a banking conference in Frankfurt. "As a society, we should find that outcome unacceptable."

The Fed's new $600 billion bond buying program - the printing of fresh money to buy up government debt - has sparked condemnation from around the world, with many emerging economies claiming the stimulus will weaken the dollar and flood their economies with speculative hot money. Germany's finance minister Wolfgang Schaeuble blasted the Fed's decision as "clueless."

Stocks in Focus

Earnings

Dell (DELL) reported third quarter non-GAAP earnings of 45 cents per share, higher than 23 cents per share last year. Revenues rose 19% to $15.39 billion. Analysts estimated earnings of 32 cents per share on revenues of $15.76 billion.

Foot Locker (FL) reported third quarter earnings of 33 cents per share compared to a loss of 4 cents per share last year, which included a charge of 14 cents per share. Sales rose 5.4% to $1.28 million. Analysts estimated earnings of 17 cents per share on revenues of $1.22 billion.

Marvell Technology (MRVL) said its third quarter non-GAAP net income rose to 45 cents per share from 35 cents per share last year. Net revenues rose 20% to $959 million. The consensus estimates had called for earnings of 43 cents per share on revenues of $848.59 million.

Salesforce.com (CRM) said its third quarter non-GAAP earnings rose 14% year-over-year to 32 cents per share. Revenues climbed 30% to $429 million. Analysts estimated earnings of 31 cents per share on revenues of $410.46 million. The company raised its 2011 revenue guidance to $1.647 billion -$1.649 billion, while it estimates non-GAAP earnings of $1.18-$1.19 per share. The consensus estimates call for earnings of $1.18 per share on revenues of $1.61 billion.

Blue Coat Systems (BCSI) reported second quarter non-GAAP earnings of 38 cents per share compared to 29 cents per share last year. Net revenues rose 1% to $121 million. Analysts estimated earnings of 37 cents per share on revenues of $121.03 million. For the third quarter, the company expects earnings of 33-39 cents per share on revenues of $121 million to $128 million. The Street estimates earnings of 40 cents per share on revenues of $126.54 million. The company also announced that its board has approved the buyback of up to $50 million of its common stock.

Dress Barn’s (DBRN) first quarter non-GAAP earnings rose to 63 cents per share from 38 cents per share last year. Net sales rose 77% to $713.3 million. Analysts estimated earnings of 62 cents per share on revenues of $702.66 million. The company reaffirmed its full year earnings guidance of $2.05-$2.15 per share, surrounding the consensus estimate of $2.10 per share.

Intuit (INTU) reported a loss of 12 cents per share on a non-GAAP basis for its first quarter compared to a loss of 10 cents per share last year. The company’s revenues rose to $532 million from $474 million last year. Analysts estimated a loss of 12 cents per share on revenues of $520.45 million. The company reiterated its full year revenue guidance, which calls for revenues of $3.74 billion to $3.84 billion, while analysts estimate revenues of $3.80 billion.

Autodesk (ADSK) said its third quarter non-GAAP earnings rose to 32 cents per share from 26 cents per share last year, in line with the consensus estimate. Revenues rose 14% year-over-year to $477 million, exceeding the $471.10 million mean analysts’ estimate. For the full year 2011, the company expects non-GAAP earnings of $1.27-$1.30 per share on revenues of $1.924 billion to $1.944 billion. Analysts estimate earnings of $1.31 per share on revenues of $1.92 billion.

Gap (GPS) reported third quarter earnings of 48 cents per share, up from 44 cents per share last year. Net sales rose 2% to $3.65 billion. Analysts estimated earnings of 48 cents per share on revenues of $3.58 billion.

Asia Market Updates

Asian markets open for trading on Friday, the last day of the trading week, ended mixed despite positive cues from Wall Street where the major averages ended with gains on easing debt concerns in Europe and better than expected economic data. Concerns that the People's Bank of China might hike interest rates to cool off its economic growth impacted market sentiment as traders exercised caution and moved to the sidelines. Japanese market, however, managed to end in positive territory with modest gains as weaker yen offset concerns of rate hike.

In Australia, the benchmark S&P/ASX200 Index slipped 11.00 points, or 0.24%, and closed at 4,629 points, while the All-Ordinaries Index ended at 4,718, representing a loss of 5.10 points, or 0.11%.

Light sweet crude oil futures for December delivery ended at $81.65 a barrel in electronic trading, down $0.20 per barrel from previous close at $81.85 a barrel in New York on Thursday.

Mixed trading was witnessed among resource related stocks amid concerns about possible rate hike by China. BHP Billiton slipped 0.43%, Rio Tinto edged down 0.12%, Fortescue Metals shed 0.45%, Gindalbie Metals was down 0.26%, and Minara Resources lost 1.28%. Gindalbie Metals and Oz Minerals remained unchanged from previous close. However, Macarthur Coal managed to end in positive territory with a gain of 2.68%, Mincor Resources advanced 0.57% and Murchison Metals surged up 4.72%.

Oil related stocks also displayed mixed trading. Santos Ltd slipped 0.87%, Origin Energy shed 0.38% and Oil Search Ltd declined 0.75%. However, Woodside Petroleum added 0.07% and ROC Oil gained 2.63%.

Banks ended in negative territory on concerns about global economy. ANZ Bank slipped 0.40%, Commonwealth Bank of Australia fell 1.43%, National Australia Bank fell 1.23% and Westpac Banking Corp. was down 0.83%. Investment banking company Macquarie Group edged down 0.11%.

In Japan, the benchmark Nikkei 225 Index closed up 8.76 points, or 0.1%, to 10,022, while the broader Topix index of all First Section issues also rose 0.71 point, or 0.1%, to 869.

Light sweet crude oil futures for December delivery ended at $81.65 a barrel in electronic trading, down $0.20 per barrel from previous close at $81.85 a barrel in New York on Thursday.

Brokerage stocks ended in positive territory with modest gains. Matsui Securities surged up 3.39%, Nomura Holdings gained 1.63%, Daiwa Securities Group advanced 0.75% and Mizuho Securities added 0.50%.

Mixed trading was witnessed among automotive stocks. Toyota Motor Corp. gained 1.56%, Mazda Motor climbed 1.72% and Mitsubishi Motor Corp. surged up 2.61%. However, Honda Motor Corp. slipped 0.48% and Suzuki Motor was down 1.15%.

Trading companies also displayed mixed trading. Itochu Corp. gained 1.43%, Sumitomo Corp. advanced 0.63% and Marubeni Corp. edged higher by 0.19%. However, Mitsubishi Corp. ended in negative territory with a loss of 0.19% and Sojitz Corp. slipped 0.66%.

Year-end profit taking by foreign funds dragged the Indian market sharply lower on Friday. Despite positive Asian cues, the 30-share BSE Sensex moved choppily in negative territory all through the day before ending down 345 points or 1.73% at 19,585, while the broader Nifty lost 108 points or 1.81% to end at 5,890.

Among the other markets in the region, China's Shanghai Composite Index added 23.11 points, or 0.81% to close at 2,889, Jakarta Composite Index in Indonesia advanced 47.14 points, or 1.28%, to close 3,725, Taiwan Weighted Index gained 22.67 points or 0.27% to close at 8,306.and Seoul Composite Index in South Korea ended in positive territory with a gain of 13.10 points, or 0.68%, at 1,941. However, Hong Kong's Hang Seng Index ended in negative territory with a loss of 31.68 points, or 0.13%, at 23,605.71, and the Strait Times Index in Singapore slipped 17.85 points, or 0.56%, to close at 3,197.

Forex top story

Dollar Giving Back Recent Gains Versus Euro

The dollar was uncertain Friday morning after China's central bank hiked its reserve requirements -- another measure designed to cool off its economy.

The buck lost ground to the euro but was only slightly weaker against the sterling and yen.

The People's Bank of China will raise the reserve ratio by 50 basis points later this month in an effort to step up liquidity management and appropriately control credit and loans.

Meanwhile, Fed Chairman Ben Bernanke was in Europe responding to criticism that the US central bank's latest round of asset purchases was designed to weaken the dollar.

He argued more monetary easing was necessary to bring down high unemployment in U.S., and that the best way to support the dollar was with economic growth.

"The best way to continue to deliver the strong economic fundamentals that underpin the value of the dollar, as well as to support the global recovery, is through policies that lead to a resumption of robust growth in a context of price stability in the United States," Bernanke told a European Central Bank conference in Germany.

The dollar fell further versus the euro amid speculation that Ireland is prepared to accept a massive sovereign debt bailout and allow an emergency fund to backstop its banking system.

The buck slipped to $1.3725 against the euro, moving back toward a 10-month low near $1.43 set earlier this month.

Germany's producer price inflation accelerated in October from the previous year, the Federal Statistical Office said on Friday.

The producer price index rose 4.3% year-on-year in October, faster than a 3.9% growth in the previous month. Producer prices increased for the seventh consecutive month. Economists had expected inflation to rise to 4.1%.

The dollar was steady near $1.6000 against the sterling, after fighting back from some overnight losses.A lack of direction versus the yen left took the dollar to Y83.45, near yesterday's monthly high of Y83.77. There is no first-tier economic data on tap from the United States today

Canadian Market Reports

TSX May Edge Down At Open Amid Flat Commodities

Toronto stocks may edge down at open Friday after a big rally in the previous session following higher commodities prices. Meanwhile, China today said it would hike the reserve ratio requirements for its banks.

The People's Bank of China today said the reserve ratio would go up by a further 50 basis points on November 29, in an effort to control its spiraling inflation that had hit a two-year high of 4.4% last week. The move also cemented speculation that the nation will raise its key interest rates soon to check inflation.

On Thursday, the S&P/TSX Composite Index surged 212.18 points or 1.68% to 12,870.01 as commodities surged after fears over Ireland's debt situation eased.

The price of crude oil edged down amid China's credit tightening move. Crude for December was down $0.33 to $81.52 a barrel.

The price of gold was paring its prior session's gains, with gold for December edging down $4.50 to $1,348.50 an ounce.

In corporate news from Canada, construction and infrastructure development company Aecon Group said a group led by Aecon has been awarded a C$279 million contract by the Toronto Transit Commission to complete the first leg of the Toronto-York Spadina Subway Extension.

Mineral mining company Romarco Minerals said its shares will commence trading on the TSX at market open on Friday, November 19 under the symbol "R" after getting delisted on the TSX Venture Exchange at market close on Thursday, November 18. The stock closed Thursday at C$2.440, gaining 1.24%.

Insurer Manulife Financial, at its annual Institutional Investor Day in Toronto today, will present its strategic direction and objectives to increase net income to C$4 billion in 2015 and improve return on common shareholders' equity to 13% by 2015.

News services provider Thomson Reuters Corp. said it has acquired Pangea3, a legal process outsourcing provider serving corporate legal departments and law firms worldwide.

Natural gas firm Perpetual Energy said it has, through a series of three transactions, disposed certain assets in northeast Alberta for combined gross proceeds of $40.0 million.

Oil and gas firm Forent Energy reported a wider third quarter net loss of C$0.51 million compared to C$0.46 million prior year. However, loss per share remained same at C$0.01.

WORLD MARKET UPDATE

2010-11-18T09:32:00.000+01:00

US Market Updates

Stocks Mostly Higher In Mid-Morning Trading

Stocks are largely on the upside in mid-morning trading on Wednesday, as support for financially troubled Ireland from major European powers has prompted some relief buying in the markets. Meanwhile, a mixed batch of data out of the U.S., including a sharper than expected drop in housing starts, has seen little market reaction.

The major averages have seen some upside in recent dealing, reaching news highs for the session. The Dow is currently up 14.42 points or 0.1 percent at 11,037.92, theNasdaq is up 15.41 points or 0.6 percent at 2,485.25 and the S&P 500 is up 5.10 points or 0.4 percent at 1,183.44.

Overseas, European finance ministers have begun discussions on extending financial assistance to Ireland, which is now being talked about as the next possible debt casualty after Greece.

In U.S. economic news, the Commerce Department reported that housing starts fell 11.7 percent to an annual rate of 519,000 in October, much steeper than the pullback to 600,000 forecast by economists. The report also showed that building permits rose 0.5 percent to an annual rate of 550,000 in October, short of expectations for a rate of 570,000.

Commenting on the data, Chris Low, chief economist at FTN Financial, said, "Housing permits were stable in October, with little change in single- or multi-family filings, suggesting the drop in starts was a fluke likely to reverse next month."

"Even if it does, however, we do not look for starts to make a material economic contribution at all next year as there is still an enormous overhang of existing supply to work through before new construction makes much sense in most of the country," he added.

A separate report from the Labor Department showed that its consumer price index rose by 0.2 percent in October, less than the expected 0.3 percent increase. Meanwhile, the core consumer price index, which excludes food and energy prices, came in unchanged for the third consecutive month.

In earnings news, traders are looking to quarterly results from a number of key retailers, with Target Corp. (TGT) posting third-quarter earnings of $0.74 per share, above forecasts for $0.68 per share for the period. Total revenues came in at $15.61 billion, in-line with estimates.

BJ's Wholesale Club Inc. (BJ) reported third-quarter income that topped estimates, while its revenues fell short of projections. Guidance for 2010 net income was boosted above expectations.

Teen apparel retailer Hot Topic (HOTT) revealed third quarter earnings that were short of estimates while reporting revenues were better than expected.

In other corporate news, General Motors increased the size of its initial public offering by 31 percent to 478 million shares from the 365 million shares announced earlier.

Recently, the auto giant raised the price range to $32.00 to $33.00 per share from the previously estimated price range of $26.00 to $29.00 per share. The sale is scheduled to commence Thursday.

Sector News

Telecom stocks are seeing a strong outing in the early going, driving the NYSE Arca Telecommunications Index up by 1.8 percent. Qualcomm (QCOM) is turning in a particularly strong performance, posting a gain of 3.4 percent as it rebounds from recent weakness.

Qualcomm's gain comes after its fiscal year earnings results and its announcement of chip production that will enable it to expand market share. The chip is expected to help with the transition from 3G to LTE technology.

Gold stocks are also trading notably higher, even as the price of gold is slightly lower on the day. The NYSE Arca Gold Bugs Index is currently up by 1.7 percent, while the price of gold is down by $1.20 to $1,337.20 an ounce.

Electronic storage, oil service, internet and semiconductor stocks are also moving higher, while some weakness is visible in the banking sector. The KBW Bank Index is down by 0.8 percent, offsetting some of the upside in other market segments.

Stocks Driven By Analyst Comments

First Solar (FSLR) is trading lower after being downgraded to Neutral from Outperform at Credit Suisse. The broker also lowered its price target on the stock from $155 to $127.50. The stock is down by 4.3 percent after setting a two and a half month intraday low in earlier trading.

Meanwhile, Akamai Technologies (AKAM) is on the upside following an upgrade at Maxim Group from Hold to Buy. The stock is up by 3.6 percent, bouncing off of the one-month closing low set on Tuesday.

General Cable (BGC) is also trading higher after being upgraded at KeyBanc Capital Markets from Hold to Buy. Shares are seeing a gain of 4.7 percent, moving back up to the six-month closing high set earlier this month.

Other Markets

In overseas trading, stock markets in the Asia-Pacific region ended mostly lower on Tuesday. Hong Kong's Hang Seng Index declined by 2.2 percent and India's BSE 30Index slid by 2 percent, while Japan's Nikkei 225 Index bucked the downtrend and gained 0.2 percent.

Meanwhile, the major European markets are up by varied margins. While the German DAX Index and the French CAC 40 Index are up by 0.4 percent and 0.9 percent, respectively, the U.K.'s FTSE 100 Index is up by 0.2 percent.

In the bond markets, treasuries are modestly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.814 percent, posting a loss of 3.3 basis points.

European Market Updates

The French stocks are rising in afternoon trading Wednesday as hopes of a solution to Ireland's sovereign debt influenced sentiment. Construction stocks and carmakers are witnessing upside and banks are mostly higher.

In economic news, Eurozone's construction output dropped a seasonally adjusted 2.1% on a monthly basis in September, following a 0.4% fall in August, Eurostat said. Output had decreased 3.5% in July.

The number of people claiming jobless benefits in the U.K. fell unexpectedly in October. The Office for National Statistics said the claimant count decreased by 3,700 to 1.47 million last month. Economists had expected a 4,500 rise.

Meanwhile, minutes of the Bank of England's meeting in November showed that policy makers left key interest rate unchanged and maintained the size of quantitative easing at GBP 200 billion by a split vote. Seven members of the Monetary Policy Committee including Governor Mervyn King voted in favor of the proposition to maintain the bank rate at 0.5% and size of quantitative easing at GBP 200 billion.

The CAC 40 opened below the flat line at 3,754. The index turned positive shortly and is currently adding 0.53%.
Building materials maker Saint-Gobain is rising 1.7%, and steel giant ArcelorMittal is adding 1.4%. Utility EDF is rising 1.3%.

Drug maker Sanofi-Aventis gained 1.4%, echoing the Northward movement of pharma stocks elsewhere in Europe.Heavy construction firms Vinci and Bouygues, cement giant Lafarge and Schneider Electric are moderately higher.

Banks Societe Generale, BNP Paribas and Credit Agricole are gaining between 1% and 0.2%. However, Natixis is losing 0.7%. Carmakers Renault and Peugeot are moderately rising.Those on the losing side include oil & gas services firm Technip, insurer Axa and hotel group Accor.

Elsewhere in Europe, the UK's FTSE 100 is losing 0.20% and the German DAX is adding 0.29%.

Investors continue to adopt a wait and see approach, biding their time until the Irish debt situation becomes clearer.

UK economic news has been good, but not amazingly so. There was an unexpected fall in unemployment in October and a widely-anticipated three-way split in views on the Bank of England’s Monetary Policy Committee (MPC) when it last met.

The number of Jobseekers’ Allowance claimants fell by 3,700 in October to 1.4654m, the first drop since July.

The Bank of England's interest rate setting committee, the MPC, was split three ways again this month, though a large majority still voted for no change in either the level of interest rates or the size of the current quantitative easing programme. Andrew Sentance again wanted a quarter-point rise in interest rates while Adam Posen voted for an increase in the stimulus package to £250bn.

Credit checking firm Experian is a star performer after it saw improving trends across all regions in the first half of its financial year. Revenue from continuing activities in the six months to 30 September was up 8% at constant exchange rates, while organic revenue growth was 7%. Total group revenue improved to $2bn from $1.9bn the year before. Profit before tax fell to $283m from $316m.

Derivatives broker ICAP is another in demand after first half underlying revenue rose 2%. Total turnover in the half year to September rose by 9% to £867m, but profits tumbled from £150m to £116m after one-off charges. Underlying profits rose by 2% to £183m with operating profits up 9% at £197m

Utility group Centrica said it had a strong third quarter, with operating profit forecasts for 2010 “slightly” ahead of current market expectations, though earnings per share will likely match estimates. British Gas, which last week announced a 7% hike in bills for both electricity and gas, is still doing well. The number of residential energy accounts on supply is up 270,000 since the start of the year, while services accounts have jumped 181,000.

BHP Billiton is to increase its spending on its iron ore mine operation at Pilbara, Western Australia by $635m. The investment comes a month after BHP and Rio Tinto abandoned plans to merge their Pilbara operations in the face of regulatory, customer and shareholder objections.

Rolls-Royce provided a welcome distraction from its aeroplane engine woes today, announcing the first order for its new ‘wave-piercing’ boat to the Norwegian shipping group Farstad.

Business publisher Informa saw continuing growth and recovery in its three main divisions in the first 10 months of 2010. The company said it is trading in line with management expectations and is seeing encouraging renewals and forward bookings for next year.

Chip designer Imagination Technologies is building up its war chest to fund an acquisition spree, starting with HelloSoft, a US voice over internet protocol (VOIP) operator. Imagination is paying a maximum of $47m for Hellosoft, a company that has technology patents that are complementary to Imagination's. The final consideration is dependent on the performance of Hellosoft over the next three years.

The coalition government’s strategic defence review is broadly neutral for military decoy flares and mine detection firm Chemring, which today uncovered a 42% increase in revenue for the fourth quarter. In 2011, the UK will only represent 15% of group revenue, it said.

Premier Foods, the Hovis bread, Bisto gravy and Branston pickle group, has received approaches for its East Anglian canning operations, which could lead to a sale of the unit. The company said back in August that it was “open minded” about disposals as long as they deliver shareholder value and speed up the reduction of average net debt/EBITDA.

That was not the only M&A-related action in the food sector for investors to digest. Irish ready made meals supplier Greencore and Goodfellas pizza and Fox’s biscuits groupNorthern Foods have agreed a 50:50 merger that will save £40m a year. The new company will trade as Essenta Foods when the deal completes, expected during the second quarter of 2011. Over 30% of Greencore and almost 12% of Northern’s shareholders have already backed the move.

Mother and baby retailer Mothercare produced a 22% surge in half yearly profit and increased its dividend as global sales continued to flourish compared to a weaker UK performance. For the 28 weeks ended 9 October 2010 underlying pre-tax profit increased to £12.2m. Group sales were up 2.5% at £397.1m.

Fashion chain Ted Baker's sales soared by over a fifth in the past three months as wholesale sales powered forward and UK business held up well.

Housebuilder Barratt Developments has had a weaker than expected autumn selling season, though new site openings will drive a “limited” increase in volume growth for the full year.

SIG, a supplier of insulation and construction products, said it is confident of reaching full year profit expectations and posted a modest rise in second half sales.

Engineer Morgan Crucible's profits this year are expected to be in "in the top half of analyst forecasts" after strong sales since the half year.

Plant hire specialist Speedy Hire has grown UK revenue, volume and average hire rates for the third quarter in a row following a further increase in the three months to 30 September, and October was up 5% on the year before.

Entertainment content owner and distributor Entertainment One saw underlying earnings increase by a third in the first half and said the second half has started off well.

Texas-focused oil explorer Pantheon Resources' loss for the year to September fell to £2.54m, from £3.05m last year, which included impairment charges of £1.4m for the abandonment of the Vision Rice University number 1 well.

Ethanol producer GTL Resources is doing well after more than doubling interim pre-tax profit to $6.2m from $2.5m last year on revenue up 2% to $109.2m.

Record company and music publisher Chrysalis piped up to remind us that it will also be a beneficiary of the deal to put Beatles songs on iTunes, as the Fab Four’s legendary producer George Martin is one of its clients.

Asia Market Updates

Asian Markets Trade Lower On Wall Street Cues

Tracking cues from Wall Street where stocks declined sharply overnight amid growing concerns about debt worries in the euro zone and an imminent rate hike by China, Asian stock markets are mostly trading notably lower on Wednesday. A few markets in the region have come off early lows with investors going in for some bargain hunting, but the mood remains extremely cautious amid fears of a setback to the global economic recovery.

With investors going on a selling spree across the board, all the sectoral indices are down in negative territory in the Australian market. The benchmark S&P/ASX 200index, which dropped down to 4,623.5, is currently down 65.3 points or 1.4% at 4,635. The broader All Ordinaries index is down 67.8 points or 1.4% at 4,715.

Energy, mining, financial, industrial and consumer discretionary stocks are among the prominent losers in Wednesday's trading. Stocks from healthcare and utilities sections are also mostly trading lower.

Among key bank stocks, ANZ Bank, National Bank of Australia and Westpac are down 1.3%-1.8%, while Commonwealth Bank of Australia is down with a modest loss. Bendigo & Adelaide Bank is losing about 1% and Bank of Queensland is trading 0.5% lower, while Macquarie Group is down with a loss of 0.8%.

In the mining space, BHP Billiton is down almost 2%, Rio Tinto is losing nearly 3%,Newcrest Mining is down with a loss of 2.1% and Fortescue Metals is trading lower by about 2.7%.

Bluescope Steel, Iluka Resources, Riversdale Mining, Incitec Pivot, Orica andOnesteel are also trading weak.

Macarthur Coal Ltd shares are bucking the trend and trading modestly higher. The company expects its first-half profit to triple in fiscal 2011 on a year earlier, on the back of demand growth and a tightening market. It said its first-half net profit after tax is forecast to be in a range of A$115 million to A$125 million, based on 2.5 million-2.7 million tonnes of sales. In 2009-2010 Macarthur made a first half profit of A$39.6 million, and made a full year profit of A$125.1 million.

Among energy stocks, Woodside Petroleum, Santos and Oil Search are trading lower by 2.1%-2.4%, while Origin Energy is down 1.8% from its previous closing price.

Shares of Ausenco Ltd are up by over 12%. The company says it has returned to growth, with a profit expected for the second half of 2010. The company said full-year revenues were now anticipated in a range of A$480 million to A$520 million, while underlying net profit after tax would probably be between nil and A$3 million.

On the economic front, wages in Australia increased a seasonally adjusted 1.1% in the September quarter, while the number of job vacancies in November declined 1%. TheAustralian Bureau of Statistics reported Wednesday that hourly wages rose 1.1% in Q3. In trend terms, which further smooth the seasonally adjusted data, wages were up 1%. The increase follows a 0.8% rise in Q2. Wages were 3.5% higher than they were one year ago, the Statistics Bureau said.

Meanwhile, the Department of Education, Employment and Workplace Relationreported that its index of skilled job vacancies decreased 1% in November to 44.5 points. The index is 5.9% higher than in November 2009.

A leading indicator of the Australian economy continued to rise in September, although the pace of growth slowed again, new figures showed on Wednesday. The Westpac-Melbourne Institute Leading Index rose 4.6% on an annualized basis in September, easing from the 5.8% gain in August, but well above the long term trend of 3.1%. This is sixth consecutive month in which the growth rate of the leading index has slowed. The annualized leading index gives an indication of how the economy will perform in the next three to nine months. Meanwhile, the coincident index, a measure of current conditions, grew 4.8% - the same pace of growth as in August.

In the currency market, the Australian dollar opened lower amid worries over Ireland's sovereign debt. In early trades, the Aussie was quoting around US$0.9764, down notably from Tuesday's close of US$0.9855. The Australian dollar is trading at 0.9779 to the U.S. dollar.

The Japanese stock market is also trading weak with investors pressing sales in several front line stocks following a setback on Wall Street overnight. However, after a steep fall in early trades, the market has recovered some lost ground subsequently with a few stocks rebounding from their lows, thanks to a weaker yen.

The benchmark Nikkei 225 index, which plunged to 9,693 in early trades, was down 51.01 points or 0.52% at 9,746.09 at the end of the morning session.

Shares from steel, non-ferrous metals, precision instruments, securities, oil and marine transport sections are mostly trading weak. Insurance stocks are finding good support, while mining, gas and retail stocks are exhibiting a mixed trend. Automobile and bank stocks are also trading mixed.

Mitsubishi Materials, Toho Zinc, Nisshin Steel, Showa Shell, Sumco Corp., Credit Saison, Nissan Chemical Industries, Trend Micro, Sumitomo Realty, Hino Motors, Mitsui & Co., Nippon Light Metals and Pacific Metals are trading notably lower.

Mazda Motor is gaining over 3.5%. Yokohama Rubber, CSK Corp., Bridgestone Corp., Mizuho Trust & Banking, Nippon Express, Ebara Corp., Mitsubishi UFJ Financial, Resona Holdings and Mizuho Financial are up with impressive gains.

In the currency market, the U.S. dollar traded at the lower 83 yen level in early deals in Tokyo. The yen is trading at 83.34 to the U.S. dollar.

The South Korean market started off on a highly negative note but has rebounded into positive territory now thanks to some firm buying at lower levels in a few blue chip stocks.

Technology and bank stocks are exhibiting a mixed trend. Automobile stocks are trading firm, while oil and steel stocks are down in negative territory.

The benchmark KOSPI index, which declined to 1,875.3 in early trades, is currently up 1.9 points or 0.1% at 1,901.

Among automobile stocks, Ssangyong Motor and Hyundai Motor are up 3% and 2.3% respectively, while Kia Motor is trading with a modest gain.

Among bank stocks, Korea Exchange Bank is gaining nearly 3%. Woori Finance is down with a loss of 2%, while KB Financial and Shinhan Financial are down with modest losses. Hana Financial Group shares are up by over 2%.

In the technology space, LG Electronics is gaining 4.8% and LG Display LCD is up 0.7%, while Samsung Electronics and Hynix Semiconductor are trading lower by 0.8% and 1.2% respectively.

Among shipping stocks, Hyundai Heavy Industries and STX Pan Ocean are up 1.3% and 1% respectively and Daewoo Shipbuilding is up 3.6%. Samsung HeavyIndustries, however, is down in negative territory with a marginal loss.

Steel stocks Hyundai Steel and POSCO are down 1.6% and 0.6% respectively. Oil stocks SK Holdings and S-Oil are also down with notable losses. KEPCO is trading flat.

Telecommunications stocks are trading weak, while airliners are trading mixed.

Among other markets in the Asia-Pacific region, Shanghai, Hong Kong, New Zealand and Taiwan are trading notably lower. Malaysia, Singapore and Indonesiaare all closed in observance of Hari Raya Haji, while the Indian market is closed for Bakri-Eid. Markets across the region ended mostly lower on Tuesday.

WORLD MARKET UPDATE

2010-11-15T17:48:00.000+01:00

US Market Updates

Stocks Mostly Higher After In-Line Increase In Inventories

Stocks are largely on the upside in mid-morning trading on Monday following a largely upbeat batch of economic reports, including report showing a bigger than expected increase in retail sales in October.

The major averages have all seen some upside in recent dealing and are currently up by varied margins. The Dow is up 55.21 points or 0.5 percent at 11,247.79, the Nasdaq is up 6.71 points or 0.3 percent at 2,524.92 and the S&P 500 is up 4.72 points or 0.4 percent at 1,203.93.

A short time ago, the Commerce Department reported that business inventories increased by 0.9 percent in September, matching the revised increase seen in August. The increase in inventories matched economists' expectations, while the growth in the previous month was upwardly revised from 0.6 percent.

Additionally, the report showed that business sales rose by 0.5 percent in September following a 0.3 percent increase in August.

Earlier, the Commerce Department said that retail sales surged up by 1.2 percent in October, marking the fourth consecutive month of growth for the key consumer health indicator. Economists had expected a more modest increase of 0.7 percent.

Excluding a 5.0 percent increase in sales by motor vehicle and parts dealers, retail sales increased by 0.4 percent in October, in line with economist estimates.

Meanwhile, the New York Federal Reserve reported that its general business conditions index fell to a negative 11.1 in November from a positive 15.7 in October, with a negative reading indicating a contraction in activity in the New York manufacturing sector. Economists had expected the index to remain positive at 11.7.

On the corporate front, construction equipment maker Caterpillar Inc. (CAT) entered into an agreement to buy ore extraction equipment specialist Bucyrus International Inc. (BUCY) for around $8.6 billion, including the assumption of debt.

Global mining leader BHP Billiton Group (BHP) withdrew its $40 billion offer to acquire Canadian fertilizer maker Potash Corp. of Saskatchewan Inc. (POT). The moves comes a week after the Canadian government blocked the deal, saying it does not provide a "net benefit" to the country.

Home improvement retailer Lowe's (LOW) reported third-quarter earnings and revenues that failed to meet estimates. Meanwhile, the firm's fourth quarter guidance called for earnings in-line with estimates and revenues on track to beat expectations.

Sector News

Railroad and banking stocks are heading the modest upward move seen thus far in today's session. The Dow Jones Railroads Index and the KBW Bank Index are up by 1.8 percent and 1.4 percent, respectively, while they both remain in a range near recent highs.

Electronic storage stocks are seeing a mixed outing, with the 4.1 percent jump by the NYSE Arca Disk Drive Index being driven by upbeat reaction to EMC's (EMC) agreement to acquire Isilon Systems Inc. (ISLN) for $2.25 billion in cash.

Isilon has surged up by 28.5 percent to an all-time intraday high and is responsible for much of the upside in the electronic storage index.

On the other hand, internet and health insurance stocks are under pressure but are seeing only moderate downside. The NYSE Arca Internet Index is down by 0.9 percent, sliding further away from last week's decade high.

Stocks Driven By Analyst Comments

UnitedHealth (UNH) is trading lower after being downgraded at Stifel Nicolaus from Buy to Hold. Shares are down by 2.5 percent, setting a two-week intraday low.

Meritage (MTH) is also under pressure after a downgrade at Ticonderoga from Buy to Neutral. The stock is down by 1.7 percent, moving further away from Thursday's five and a half month closing high.

Other Markets

In overseas trading, stock markets in the Asia-Pacific region saw a mixed close on Monday. Japan's benchmark Nikkei 225 Index rose by 1.1 percent while Hong Kong's Hang Seng Index declined by 0.8 percent.

The major European markets also remain on opposite sides of the unchanged line. While the German DAX Index is down by 0.1 percent, the U.K.'s FTSE 100 Index is up by 0.4 percent and the French CAC 40 Index is up by 0.9 percent.

In the bond markets, treasuries are notably lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.842 percent, posting a gain of 8.6 basis points.

European Market Updates

French Stocks Erase Early Losses

The CAC 40 turned positive in afternoon trading Monday, even as worries about the Irish debt continued to influence sentiment. Banks were mixed, while insurer Axa gained notably.

In economic news, France saw a current account deficit of EUR 4.4 billion in September, up from a EUR 4.3 billion shortfall in August, the central bank said.

U.K. house prices recorded the steepest fall in nearly three years this month due to a widening imbalance between supply and demand. House prices fell 3.2% compared to the previous month, reversing the 3.1% increase in October, Hometrack said.

In the eurozone, trade balance with the rest of the world rose to an unadjusted surplus of EUR 2.9 billion, compared with a deficit of EUR 5 billion in August, Eurostat said. Economists had forecast a deficit of EUR 0.8 billion.

After opening at 3,840, the CAC 40 has been moving in a range of 3,798-3,852. The index is currently gaining 0.54%.

Insurer Axa is gaining 2.2%. The company made a joint proposal with Australian wealth manager AMP Ltd for Axa Asia Pacific Holdings Ltd. Carmaker Renault is gaining 1.4% and Peugeot is adding 0.23%.

Chemical firm Air Liquide, tire company Michelin and real estate investment trust Unibail-Rodamco are seeing notable upside.

Among banks, Natixis is up 0.9% and BNP Paribas is advancing marginally. Societe Generale is down 0.12% and Credit Agricole is losing 0.6%.

Those making notable losses include advertising firm Publicis Groupe and machinery & equipment company Alstom. Alcatel Lucent, Suez Environnement and EADS are losing moderately.

Elsewhere in Europe, the UK's FTSE 100 is advancing 0.32% and the German DAX is rising 0.60%.

Asia Market Updates

Asian Markets End Mixed Amid Cautious Trading

Asian markets open for trading on Monday, the first day of the trading week, witnessed mixed trading with markets in Australia, Hong Kong, Indonesia, Singapore and Taiwan ending in negative territory, while the markets in China, India, Japan, and South Korea ended in positive territory led by weaker Japanese currency. Caution over the global economy amid concerns about monetary tightening measures in China and resurfacing of debt crisis in Europe impacted market sentiment.

In Australia, the benchmark S&P/ASX200 Index slipped by 4.70 points, or 0.10%, and closed at 4,688 points, while the All-Ordinaries Index ended at 4,773, representing a loss of 5.50 points, or 0.12%.

On the economic front, data released by the Australian Bureau of Statistics revealed that the total value of owner-occupied housing commitments, excluding alterations and additions, rose 0.6% to A$13.8 billion in September compared to the previous month. The data further revealed that total personal finance commitments rose 3.5% to A$7.7 billion. Fixed lending commitments rose 6.3% and revolving credit commitments rose 0.9%. The total value of commercial finance commitments rose 2.7% in September. Lease finance commitments increased 0.2%.

In a separate statement, the Statistics Bureau revealed that the total number of new vehicles sold in Australia decreased by a seasonally adjusted 0.6% in October compared to the previous month. Year-over-year, sales were up 3.3%. Sales of passenger vehicles decreased by 1.6% on a monthly basis in October. This was partly offset by a 1.5% increase in SUV sales. Light sweet crude oil futures for December delivery ended at $84.73 a barrel in electronic trading, down $0.15 per barrel from previous close at $84.88 a barrel in New York on Friday.

Mixed trading was witnessed among the major bank stocks. Commonwealth Bank of Australia gained 0.64% and National Australia Bank advanced 0.57%. However, ANZ Bank ended in negative territory with a loss of 0.60% and Westpac Banking Corp. edged down 0.09%. Investment banking company Macquarie Group ended in negative territory with a loss of 0.11%.

Resource-related stocks also witnessed mixed trading. BHP Billion, which had withdrawn its bid to acquire Canadian company Potash Corp, ended in negative territory with a loss of 0.36%. Among the other major losers among resource stocks, Fortescue Metals declined 1.60%, Gindalbie Metals lost 2.98%, Iluka Resources fell 1.86%, Macarthur Coal edged down 0.09%, Mincor Resources was down 1.97%, Murchison Metals plunged 3.04% and Oz Minerals shed 2.25%. However, Minara Resources managed to end in positive territory with a gain of 0.63% and Rio Tinto advanced 0.21%.

Mixed trading was witnessed among oil-related stocks as well. Woodside Petroleum declined 1.37%, Santos Ltd shed 1.42%, ROC Oil Ltd plunged 3.49% and Origin Energy slipped 0.31%. However, Oil Energy bucked the negative trend and ended in positive territory with a gain of 1.38%.

Brambles Inc., the logistics company, was the major gainer in the market, having surged up 5.36% after the company announced that it would aquire Dutch based IFCO Systems NV and its re-usable plastic container business for €923 million.

In Japan, the benchmark Nikkei 225 Index ended 102.70 points, or 1.06%, higher to 9,827, while the broader Topix index of all First Section issues gained 4.58 points, or 0.54%, to 852.

On the economic front, a report released by the Cabinet Office revealed that Japan's economy grew at a stronger than expected pace between July and September, underpinned by a solid increase in domestic demand. As per the report, gross domestic product rose 0.9% compared to the previous quarter. That was higher than the 0.6% rise forecast by analysts after the 0.4% growth in the June quarter.

A report released by the Ministry of Economy, Trade and Industry revealed that industrial production slid a revised 1.6% month-on-month in September. This was slower than the 1.9% fall estimated earlier. As per the report, shipments decreased 0.5% in September. Inventory rose 0.1%, while the inventory ratio climbed 1.3%. On a yearly basis, production was up 11.5%, higher than the previously estimated 11.1% rise. Shipments increased 12.6% and inventory was up 3.4%.

Light sweet crude oil futures for December delivery ended at $84.73 a barrel in electronic trading, down $0.15 per barrel from previous close at $84.88 a barrel in New York on Friday.

Exporters led the gains on weak local currency. Sony Corp. climbed 2.65%, Panasonic Corp. advanced 2.06%, Sharp Corp. added 1.85% and Olympus Corp. surged up 3.74%.

Automotive stocks also ended in positive territory, lifted by weak local currency. Honda Motor Co. added 1.71%, Toyota Motor Co. advanced 1.45%, Suzuki Motor was up by 0.90% and Nissan Motor climbed 1.55%.

The Indian market reversed its early loss to end notably higher on Monday, as data showing easing inflation suggested that there may not be any more rate hikes this year. A little bit of short covering following last week's sell-off also helped the benchmark indexes to close near the day's highs. The benchmark 30-share Sensex moved in a range 20,047-20,336 before ending up 153 points or 0.76% at 20,310, with 20 of its components edging higher. The broader Nifty rose by about 50 points or 0.82% to 6,122

Among the other markets in the region, China's Shanghai Composite Index advanced 28.98 points, or 0.97% to close at 3,014, and Seoul Composite Index in South Korea ended in positive territory with a gain of 0.69 points, or 0.04%, at 1,914. However, Hong Kong's Hang Seng Index declined 195.40 points, or 0.81%, to close at 24,057, Jakarta Composite Index in Indonesia fell 9.38 points, or 0.26%, to close 3,656, the Strait Times Index in Singapore slipped 15.20 points, or 0.47%, to close at 3,237, and Taiwan Weighted Index shed 75.40 points or 0.91% to close at 8,241.

Canadian Market Reports

TSX Poised For Mixed Open; Potash In Focus

Bay Street stocks are poised for a mixed open Monday after a steep fall in the previous session, with traders digesting encouraging retail sales data from the U.S., Canada's largest trading partner.

Meanwhile, Statistics Canada said new vehicle sales rebounded in September.

Potash Corp. may be in focus after BHP Billiton withdrew its $130 per share hostile takeover bid for the fertilizer maker. BHP Billiton could not convince Canada's federal government to approve the deal. Earlier this month, the government said it would block the deal because it wasn't a 'net benefit' to Canada.

On Friday, the S&P/TSX Composite Index surrendered 185.50 points or 1.43% to 12,749.24.

The price of crude oil edged up Monday morning as traders await a slew of economic data due out from the U.S. during the week. Crude for December was up $0.45 to $85.33 a barrel.

The price of gold was trading flat amid a firm U.S. dollar. Gold for December edged down $1.90 to $1,363.60 an ounce.

In corporate news from Canada, diversifies management and holding company Power Corp. of Canada reported lower third quarter net earnings of C$178 million or C$0.37 per share compared to C$250 million or C$0.52 per share in the prior year quarter.

Investments management company BAM Investments reported a rise in third quarter profit at $3.6 million or $0.05 per common share from $2.3 million or $0.03 per common share last year.

Insurance solutions provider Kingsway Financial Services swung to profit in third quarter, reporting net income of $2.5 million or $0.05 per share compared to a loss of $118.1 million or $2.19 per share in the prior year quarter.

Gold mining company Gryphon Gold posted a wider third-quarter net loss of $1.84 million or $0.021 per share compared to $1.61 million or $0.026 per share in the prior year quarter.

South Africa focused uranium and gold miner First Uranium reported a wider second quarter loss, despite a surge in revenues. Net loss for the period widened to $27.1 million or $0.12 per share from $18.4 million or $0.11 per share in the year-ago period, while revenue more than doubled to $38.31 million from $19.02 million.

West Africa focused gold miner Crew Gold Corp. reported a narrower third quarter net loss of $2.14 million or $0.02 per share compared to $23.11 million or $4.32 per share reported in the previous year.

Copper miner Anvil Mining reported third-quarter net income of $6.06 million or $0.04 per share compared with a loss of $0.23 million or breakeven per share last year.

Telecommunications company Vecima Networks reported higher first quarter net income of C$1.86 million or C$0.08 per share compared to C$1.2 million or C$0.05 per share in the year-ago period.

Environmental services company EnGlobe Corp. said it net earnings increased to C$4.6 million from C$1.9 million a year ago. The company also said that ONCAP II L.P. and certain affiliates would acquire all of the outstanding common shares of EnGlobe that they do not currently own at a price of C$0.265 per share.

Digital mapping company Intermap Technologies reported a wider third quarter net loss of $11.8 million or $0.20 per share compared to $4.3 million or $0.08 per share in the year-ago period.

Pharmaceuticals company WEX Pharmaceuticals reported third quarter net loss of $2.37 million or $0.01 per share compared with a loss of $2.04 million or $0.03 per share in the same period in the preceding year.

Bio-pharmaceutical company MethylGene Inc. reported a narrower third quarter net loss of C$4.8 million or C$0.12 per share, compared with a net loss of C$5.4 million or C$0.15 per share for the year-ago period.

Brokerage and clearing services technology provider Belzberg Technologies reported a narrower third quarter net loss of C$2.2 million or C$0.15 per share, compared to C$2.4 million or C$0.16 per share in the same period last year.

Steel structural products maker Genesis Worldwide reported a net loss of C$1.7 million or C$0.03 per share for the third quarter, compared to a net loss of C$2.2 million or C$0.05 per share in the prior year quarter.

Drilling services provider Forbes Energy Services reported a narrower third quarter net loss of $2.4 million or $0.03 per share, compared to a net loss of $9.6 million or $0.15 per share for the year-ago quarter.

Base-metals miner GlobeStar Mining reported improved third-quarter net income of $3.4 million or $0.032 per share, compared to $1.4 million or $0.013 per share in the third quarter of 2009.

Renewable energy company Etrion Corp. reported a narrower third-quarter net loss of $6.4 million or $0.04 per share compared to a net loss of $50.9 million or $0.32 per share last year.

Photovoltaic energy products company Day4 Energy reported a narrower third quarter net loss of C$2.32 million or C$0.06 per share compared with a net loss of C$4.23 million or C$0.12 per share last year. Revenues climbed to C$41.30 million from C$13.34 million in the comparable period.

In economic news, data from Statistics Canada revealed new vehicle sales rebounded in September after a notable drop in the previous month. The number of new motor vehicles sold rose 4.2% to 134,845 units in September, helped by stronger truck sales that increased 5.8% to 77,885 units in September after declining the previous month.

WORLD MARKET UPDATES

2010-11-12T17:50:00.000+01:00

US Market Updates

Stocks Still Down After Upbeat Consumer Sentiment Reading

Stocks remain moderately lower in mid-morning trading on Friday, with concerns about potential monetary policy tightening in China overshadowing an improvement in U.S. consumer sentiment.

The major averages have moved to the downside in recent dealing, with the Nasdaq and the S&P 500 falling to new sessions lows. The Dow is down 53.96 points or 0.5 percent at 11,229.14, the Nasdaq is down 15.28 points or 0.6 percent at 2,540.24 and the S&P 500 is down 9.19 points or 0.8 percent at 1,204.35.

Sentiment among American consumers saw a notable improvement in the month of November, according to a report released a short time ago by Reuters and the University of Michigan.

The consumer sentiment index rose to a reading of 69.3 in November from the final October reading of 67.7. Economists had been expecting the index to increase to a reading of 69.0.

Nonetheless, selling pressure remains after a report released earlier this week showing Chinese consumer price growth at its sharpest level in roughly two years and new limits on foreign corporate property holdings added to the likelihood of further policy tightening by the Chinese government.

The news spooked the Chinese markets and has caused consternation in equity markets worldwide.

With earnings season coming to a close, department store operator JC Penney (JCP) posted third quarter net income of $44 million or $0.19 per share. On average, analysts expected the company to report earnings of $0.17 per share.

JC Penney's net sales for the quarter remained relatively flat with last year at $4.2 billion, coming roughly in-line with estimates for revenues of $4.22 billion. The company's fourth quarter and full-year forecasts were in-line with estimates.

Homebuilder DR Horton Inc. (DHI) reported that its fourth-quarter net loss narrowed to $0.03 per share, while analysts had forecast a loss of $0.04 per share. Homebuilding revenue totaled $925.7 million, firmly topping projections for revenues of $854.03 million for the quarter.

On Thursday, media giant Walt Disney Co. (DIS) said that its fourth quarter profit fell 7 percent from last year, hurt by the adverse impact of the timing of the recognition of previously deferred revenues at ESPN and the effect of one fewer week of operations.

Graphics chipmaker Nvidia Corp. (NVDA) said that its third-quarter profit declined by 21 percent from last year due to lower revenues and higher expenses. Looking ahead, the company forecast fourth-quarter revenue above analysts' expectations.

Sector News

Oil service, gold, steel and natural gas stocks are seeing some of the heaviest selling amid concerns about China's level of demand being lowered by prospective tightening measures.

Notably, the NYSE Arca Steel Index is down by 2.1 percent, moving further away from the seven-month closing high set earlier this month.

The weakness among gold and oil stocks also comes as the price of gold is down $18 at $1,385.30 an ounce and the price of crude oil has dropped $1.64 to $86.17 a barrel.

Telecommunications, defense, housing and banking stocks are also under pressure, contributing to the downside in today's session.

Meanwhile, some strength is visible among semiconductor stocks following Nvidia's quarterly results. Nvidia is up by 7.9 percent, setting a six-month intraday high.

Stocks Driven By Analyst Comments

Geokinetics (GOK) is trading higher after being upgraded by Howard Weil from Market Perform to Market Outperform. The broker also raised its target on the stock from $6 to $11. The stock is up by 0.6 percent after setting a six and a half month intraday high.

On the other hand, Dril-Quip (DRQ) is under pressure after being downgraded at CapitalOne Southcoast from Add to Neutral. The stock is down by 3.3 percent, slipping from an all-time closing high set on Thursday.

Constellation Brands (STZ) is also moving lower after Standpoint Research lowered their rating on shares of the alcoholic libations maker from Buy to Hold. The stock is posting a loss of 1.9 percent, falling from the two-year closing high set yesterday.

Other Markets

In overseas trading, stock markets in the Asia-Pacific region ended sharply lower on Friday. Japan's benchmark Nikkei 225 Index fell by 1.4 percent and Hong Kong's Hang Seng Index declined by 1.9 percent.

Meanwhile, the major European markets are mixed. While the German DAX Index and the U.K.'s FTSE 100 Index are up by 0.2 percent and 0.1 percent, respectively, theFrench CAC 40 Index is down by 0.6 percent.

In the bond markets, treasuries are seeing moderate weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.691 percent, posting a gain of 4.3 basis points.

European Market Updates

French Market Loses In Afternoon Trade

The French market is falling in afternoon trading Friday, as Irish debt worries and speculation that China may intervene to cool its economic growth dampened risk appetite. Construction stocks were mostly lower, while banks gained.

In economic news, French economic growth slowed slightly more than expected in the third quarter, figures released by Insee showed. Gross domestic product increased at a slower pace of 0.4% sequentially in the third quarter, following a 0.7% expansion in the second quarter.

Germany's economy recorded a sharp slowdown during the last quarter, in line with analyst expectations. Statistical office Destatis said the economy grew 0.7% between July and September, over three times slower than the 2.3% expansion in the preceding quarter.

The Eurozone economy expanded 0.4% quarter-on-quarter in the third quarter, flash estimates from Eurostat revealed. Gross domestic product growth slowed from 1%, while economists were expecting the sequential growth rate to ease to 0.5%.

Meanwhile, Eurozone industrial output dropped unexpectedly in September as all of the region's industrial groups marked declines in production. Seasonally adjusted industrial production fell by 0.9% month-on-month in September in contrast to an expected 0.2% increase.

The CAC 40 opened lower at 3,797 and has remained in negative territory throughout the session. The index is currently losing 1.12%.

Integrated oil & gas firm Total is losing 3.5%, thus topping the decliners. Steel giant Arcelor Mittal and telecom equipment maker Alcatel Lucent are sliding 2.7% and 1.6%, respectively.

Cement giant Lafarge and airplane maker EADS are losing 1.3% each. CarmakerPeugeot is down 1.1% and Renault is losing 0.8%.

Lenders are witnessing the upside. Natixis is rising 2.1% and Credit Agricole is advancing 0.9%. Societe Generale and BNP Paribas are moderately rising.

Elsewhere in Europe, the UK's FTSE 100 is dropping 0.28% and the German DAX is sliding 0.09%.

Crude for December delivery is down $1.57 at $86.24 per barrel and gold is declining $14.8 at $1388.5 an ounce.

Asia Market Updates

Indian Market Tumbles On Weak IIP, Irish Debt Woes

The Indian market fell sharply for a second consecutive session on Friday, as disappointing industrial production data, Irish debt woes and a slide in commodity prices amid concerns that China might raise interest rates weighed on sentiment. Also, investors eagerly awaited fresh news from the ongoing G20 meeting in Seoul.

India's industrial output growth slowed unexpectedly in September, nearly halving to 4.4% from the 8.2% in the corresponding month last year, as growth in capital goods production, manufacturing, mining and electricity all slowed from a year earlier, data released today by the Central Statistical Organization showed. The 4.4% annual growth lagged the previous month's upwardly revised 6.92% growth as well, raising worries that industrial activity could be faltering.

Expressing concerns over the massive decline in industrial growth, finance minister Pranab Mukherjee said, "We need to analyze why this is happening."

In the 30-share Sensex pack, only two stocks - two-wheeler manufacturer Hero Honda Motors and mortgage lender HDFC- bucked the downward trend to end modestly higher.

Among the prominent decliners, metals stocks like Sterlite, Jindal Steel, Tata Steel andHindalco fell between 2.31% and 4.72%, as copper prices dropped by the daily limit in Shanghai. In the banking sector, SBI led the decliners with a 4.55% loss, while ICICI Bank fell nearly 3% and HDFC Bank shed 1.65%.

Property developer DLF gave off 5.46%, utility vehicles manufacturer Mahindra & Mahindra lost 4.75%, infra firm Jaiprakash Associates shed 3.76%, FMCG player Hindustan Unilever ended down 2.43% and heavyweight Reliance Industries declined 1.87%.Bharti Airtel led the declines in the telecom sector with a 3.59% loss. Reliance Communication ended down 3.52%.

The Sensex ended down 432 points or 2.10% at 20,157 after falling to an intra-day low of 20,108 earlier in the session. Intense selling across the board dragged the broader Nifty index down by about 125 points or 2% to 6,072, while the BSE mid-cap and small-cap indexes ended down around 2.5% each. In the broader market, declining shares outpaced gaining ones by 2263 to 753 shares.

Elsewhere, the other Asian markets fell sharply on Friday, as the U.S. dollar fell, commodity prices eased and technology bellwether Cisco Systems Inc's weak outlook as well as heightened European sovereign debt worries fueled a bout of risk aversion. The euro dropped to a six-week low versus the dollar on continued worries over Europe's public debts.

Investors were also worried at the prospects of further tightening policies by Beijing after data released yesterday showed China's consumer prices jumped 4.4% from a year earlier in October, the fastest pace in two years.

China's benchmark Shanghai Composite, which covers both A and B shares, closed 5.16% lower at 2,985, its biggest drop in more than 14 months, dragged down by financial and resource sectors, on speculation that the government would introduce further measures to rein in consumer prices and soaring housing costs. European stocks also fell sharply in early trading on debt fears and the Dow futures were

Currencies

Dollar Stable As G20 Urges Market-Determined Currency Trade

The dollar was steady on Friday, holding on to this week's gains as the G20 outlined an agreement to unleash domestic demand in surplus countries.

With the White House saying this will support strong global growth and support a robust recovery in the US, the dollar continued to reverse its steep early losses from the past few months.

G20 members said they should refrain from competitive devaluation of currencies, but resisted US efforts to specifically push China on its currency, which the White House says is artificially weak. This gives Chinese exporters a big advantage over US manufacturers.

Commodity prices slumped and US stocks were poised for a sharply lower open this morning, as risk aversion bolstered the safe haven dollar.

Meanwhile, the debt crisis in Ireland continued to spook investors, and became a distraction to European leaders gathered in Seoul for the G20 Summit.

The dollar was stuck near $1.3700 against the euro as traders assessed headlines coming out of the G20 Summit in Seoul. Earlier this month, the dollar touched a 10-month low near $1.43.

Eurozone economic growth moderated more than forecast in the third quarter reflecting slowdown in all its major economies as many of them are undergoing fiscal squeeze.

The economy expanded 0.4% quarter-on-quarter in the third quarter, flash estimates from European Union statistical office Eurostat showed Friday.

The dollar was slightly weaker versus the yen, easing to Y81.90. Yesterday the buck hit a monthly high of Y82.78.

The buck was steady near $1.61 against the sterling, and briefly ticked above C$1.01 against its Canadian counterpart.

Currency and trade compromises came out of Seoul, as world leaders acknowledged the need for export-reliant nations to bolster domestic demand. However, the G20 agreed that measures to control their massive capital inflows should be "carefully designed."

Canadian Market Reports

TSX May Dip At Open Amid Falling Commodities

Bay Street stocks are poised for a lower opening Friday as commodities tumbled on China rate hike concerns. Cues from the global equity markets were also discouraging with most Asian market ending lower, with China's composite index shedding over 5%, and European stocks lingering in the red.

The price of copper fell from a record high and oil pulled back from its 2-year peak as China may attempt to curb inflation by further tightening its monetary policy. Meanwhile, leaders from the G20 nations have failed to arrive at a consensus about trade and currency manipulation.

On Thursday, the S&P/TSX Composite Index edged down 7.90 points or 0.06% to 12,934.74.The price of crude oil moved back from its 2-year peak amid speculation that China will resort to further monetary tightening measures to curb inflation. Crude for December was down $1.50 to $86.31 a barrel.

The price of gold slipped below the $1,400-mark, with gold for December shedding $15.0 to $1,388.30 an ounce.

In corporate news from Canada, gold-focused royalty company Franco-Nevada reported higher third quarter net income of $18.0 million or $0.16 per share compared to $12.3 million or $0.11 per share in the previous year. On an adjusted basis, net income was $14.8 million or $0.13 per share, compared to $7.3 million or $0.07 per share last year. Analyst were expecting the company to report earnings of $0.12 per share for the quarter.

Fertilizer company Migao Corp Com NPV reported a decline in second quarter net income at $8.3 million or $0.16 per share from $9.6 million or $$0.21 per share in the year-ago period.

Renewable energy company Algonquin Power & Utilities reported lower third quarter profit of C$1.5 million or C$0.02 per share from C$13.1 million or C$0.17 per share for the third quarter of prior year. On an adjusted basis, net earnings fell to C$0.9 million or C$0.01 per share from C$7.2 million or C$0.09 per share last year.

Retail property operator Scott's Real Estate Inv Trust reported a wider third quarter net loss of $458,000 or $0.065 per share compared with a net loss of $156,000 or $0.031 per share a year ago.

Real estate properties company MI Developments reported lower third quarter net income of $8.2 million or $0.18 per share, compared to $28.0 million or $0.60 per share for the year-ago quarter. The company declared a dividend of $0.10 per share on its Class A subordinate voting shares and Class B shares.

Packaging products company Cascades Inc. reported lower third-quarter net earnings of C$30 million or C$0.31 per share compared to C$34 million or C$0.35 per share in the previous year. The company declared a quarterly dividend of $0.04 per share.

Broadcasting technology services provider Miranda Technologies reported third-quarter net income of C$6.63 million or C$0.30 per share, up from C$1.07 million or C$0.05 per share last year.

Wireless broadband communications services provider TeraGo Inc. reported a narrower third quarter net loss of C$1.45 million or C$0.13 per share compared to a net loss of C$1.72 million or C$0.15 per share last year.

Stevia extracts supplier GLG Life Tech Corp. posted third quarter net income of C$1.8 million or C$0.07 per share, compared to C$1.4 million or C$0.07 per share in the same period last year. Analysts expected the company to report earnings of $0.03 per share. For the fiscal year 2010, the company guides revenues in the range of C$65 million to C$70 million.

Wood products company Stella-Jones said it third-quarter net earnings grew to C$12.22 million or C$0.77 per share from C$8.32 million or C$0.65 per share a year ago. The acquisition of Tangent Rail Corp., effective April 1, 2010, contributed sales of around C$41.2 million.

NIGERIA:Asset corporation assuages stockbrokers’ fears

2010-11-12T08:42:00.000+01:00

Asset corporation assuages stockbrokers’ fears

After a meeting between top officials of Asset Management Corporation and stockbrokers yesterday in Lagos, some stockbrokers said though they are not totally satisfied with the current arrangement, the indication are that the corporation was prepared to address their concerns.

The meeting, which lasted for about an hour, was the first between the Asset Management Corporation of Nigeria (AMCON) and the stockbrokers since the Senate confirmed the appointment of the board members.

Operational guidelines

This came as Mustafa Chike Obi, AMCON’s managing director, said it would work within the contents of its operational guidelines, which are yet to be made public.

“Only the Central Bank has the prerogative to release these operational guidelines,” Mr. Chike Obi told stockbrokers at the meeting, which was preceded by another meeting with some bankers. He said based on the guidelines, assets will be held for two to three years while “Central Bank may change this time frame, but any sale will be announced publicly.”

The managing director did not speak with journalists after the meetings.

A source who attended the meeting said stockbrokers were, however, not fully satisfied with how AMCON intends to address the issue of margin loans, which remains a major impairment in their books.

“Mr. Chike Obi was not specific on how margin loans will be treated. Brokers were expecting a categorical statement that once AMCON takes up such loans, it will discharge stockbrokers of their indebtedness,” the source said.

Joshua Omo-Kehinde, managing director of Marimpex Investment Limited, a stockbroking firm, said there are various issues involved in each case of margin loans, which is why it is proper for the corporation to handle each situation on a case by case basis.

“What happens if some of the shares or none of the shares have been sold?” Mr. Omo-Kehinde queried.

“Also, do not forget that there are contractual agreements on each of the loans, which must be honoured. So it will not be easy to apply the same set of rules for all the cases,” he further said.

No nationalisation

One of the assurances given by AMCON was that it had no intention to be active owners of companies whose shares are acquired.

“This is due to concerns about nationalisation of such companies,” the source added.

He said AMCON intends to discuss with every debtor with a view to providing forebearance or debt forgiveness, while the asset corporation will help to recapitalise the banks by working with the prospective buyers and merger partners.

As part of the agreement, AMCON will be buying loans and not the underlying assets of the non performing loans, while payments will be made with zero coupon three year bonds, which will be refinanced with a seven year bond to be determined by the market.

Victor Ogiemwonyi, managing director of Partnership Investment Plc, said AMCON has shown that it will take its job seriously.

“Their actions to date and the speed and fair value given to assets they are acquiring in the first phase have given them credibility. The implication for the market is very positive,”Mr. Ogiemwonyi said.

He said once all the toxic assets are taken off the books of the banks, there will be room to resume lending to the economy.

AMCON, however, said it will not acquire tainted assets, which were based on insider related loans, or loans acquired with criminal intent.

WORLD MARKET UPDATES

2010-11-11T18:58:00.000+01:00

US Market Updates

Stocks Regain Ground But Remain Mostly Negative

After moving sharply lower at the open, stocks continue to see considerable weakness in mid-morning trading on Thursday. While the major averages have not seen much follow-through on their initial downward move, they remain stuck in the red.

The major averages have recently moved well off their worst levels of the day but currently continue to post notable losses. The Dow is down 83.74 points or 0.7 percent at 11,273.30, the Nasdaq is down 33.23 points or 1.3 percent at 2,545.55 and the S&P 500 is down 8.54 points or 0.7 percent at 1,210.17.

Much of the weakness on the day is due to disappointing guidance from technology bellwether Cisco Systems (CSCO), which has offset some of the recent optimism about the economic outlook and inspired traders to do some profit taking.

After the close of trading on Wednesday, Cisco reported first quarter adjusted earnings that rose to $0.42 per share from $0.36 per share in the year-ago quarter, as its revenues rose 19.2 percent to $10.75 billion. Analysts had expected earnings of $0.40 per share on revenues of $10.74 billion.

Looking ahead, however, Cisco CEO John Chamber said the company expects its full year net sales to increase by about 9 to 12 percent compared to analyst expectations for a 12.9 percent increase. Shares of Cisco are subsequently down by 15.3 percent after setting a two-month intraday low.

The weakness in the markets also comes as traders keep an eye on the G20 summit of world leaders in South Korea. There are concerns that divisions regarding currency valuations could prevent the leaders from reaching a broad agreement on global economic cooperation.

While most stocks are moving to the downside, shares of Viacom (VIA) are bucking the downtrend after the entertainment content company reported better than expected third quarter adjusted earnings and announced plans to sell its Harmonix gaming unit.

Sector News

Networking stocks are posting particularly steep losses following the news from Cisco, with the NYSE Arca Networking Index down by 3.4 percent. The loss by the index comes after it ended the previous session at a three-year closing high.

While Cisco is leading the sector lower, Alcatel-Lucent (ALU) and Anixter International (AXE) are also posting notable losses, falling by 4.4 percent and 2.8 percent, respectively.

Most other technology-related stocks have also come under pressure in morning trading, with significant weakness visible among computer hardware stocks. The NYSE Arca Computer Hardware Index is down by 2 percent, pulling back further off the ten-year closing high it set on Monday.

Outside of the tech sector, defense, airline, and banking stocks are also posting notable losses. Most of the other major sectors have also moved to the downside.

Stocks Driven By Analyst Comments

Shares of Jabil Circuit (JBL) are seeing notable weakness in mid-morning trading, with the electronic manufacturing services provider currently down by 7.8 percent. At its low for the session, Jabil was at its worst intraday level in well over a month.

The loss by Jabil comes after Citigroup downgraded its rating on the company's stock to Hold from Buy. Citigroup said that the company is leveraged to lower growth at Cisco.

Dick's Sporting Goods (DKS) is also under pressure after Longbow downgraded its rating on the sporting goods retailer to Neutral from Buy. Shares of Dick's are currently down by 1.4 percent, pulling back further off the well over two-year closing high set on Monday.

On the other hand, shares of 99 Cents Only Stores (NDN) are currently up by 3.2 percent after Deutsche Bank upgraded its rating on the discount retailer to Buy from Hold. With the gain, 99 Cents is moving further off last Friday's fourth-month closing low.

Other Markets

In overseas trading, stock markets in the Asia-Pacific region turned in another mixed performance on Thursday. While Japan's benchmark Nikkei 225 Index and Hong Kong's Hang Seng Index rose by 0.3 percent and 0.8 percent, respectively, South Korea's Kospi Index plunged by 2.7 percent.

The major European markets have also turned mixed on the day. Germany's DAX Index is currently up by 0.1 percent, while the U.K.'s FTSE 100 Index is down by 0.1 percent and the French CAC 40 Index is down by 0.5 percent.

The bond markets are closed due to the Veterans Day holiday.

European Market Updates

Financials drag index lower

Market Movers
techMARK 1,751.49 -0.55%
FTSE 100 5,801.71 -0.26%
FTSE 250 10,913.56 -0.74%

An early three-digit loss on Wall Street has the Footsie near its worst levels of the day, with financials the biggest fallers.

Insurers Aviva, L&G and Standard Life are deep in the red, as are and RBS andBarclays on fears about Irish debt.

Metal heavyweights are limiting the deficit though. Most are still higher, as they have been all day. Antofagasta, Kazakhmys, Xstrata, Fresnillo and Rio Tinto are in demand, as is oil major BP.

Iron specialist Ferrexpo is the best performer. Cash is pouring in, output is at record levels and the prospects rosy for 2010 and 2011, the company said.

Indian miner Vedanta posted a sharp rise in profits in the six months to September 30 as it tapped into the recovery in commodity prices with record production of a number of metals. Pre-tax profits were up to $1.11bn (£690m) from $605m over the same period the previous year on revenues that soared to $4.58bn from $2.98bn.

Kazakhstan-based mining leviathan Eurasian National Resources (ENRC) said production is expected to remain at full capacity in the final quarter of the year. “Revenue and cost growth is broadly in line with our expectations. Cost management remains a priority for the group in order to maintain our advantageous cost position,” said Felix Vulis, chief executive officer of ENRC.

Telecoms titan BT is another good performer after it bumped up adjusted profit before tax by 13% during the second quarter and increased earnings forecasts for the full-year.

Cost cutting helped earnings before interest, tax, depreciation and amortisation (EBITDA), adjusted for one off charges, add 3% to £1.45bn, taking the six-month total to £2.85bn. That was enough for the company to increase its prediction for full-year adjusted EBITDA to around £5.8bn.

But shares are subdued overall. Yule Catto is among the stocks helping to dampen sentiment. A mixed trading update sparked a negative reaction from investors.

Within Polymer Chemicals, monomer prices continued to rise, the group said, but at at a lower rate than the first half. The business continued to recover these increases in its end markets. Volumes remained robust in most segments, it added, though the weak volumes in the low margin compound business persisted.

Real estate giant Land Securities built underlying profit up by 6% during the first half – excluding valuation gains of £314m – and businesses are now more willing to commit to new space than even the company expected. Revenue profit grew to £135.9m in the six months ended 30 September, up from £128.4m the year before, though that jumps to £455.3m including the revaluation compared with a £4.6m loss last time.

Electricity generator International Power said expected 2010 spreads and load factors in its merchant markets remain in line with the guidance given in August

Newsagent chain WH Smith saw lower sales in its High Street and Travel divisions in the period between 1 September and 6 November, though this is in line with expectations as the company has been focusing on margins rather than sales. Total sales were down by 2% compared with the same period the previous year. Like-for-like sales in the travel division, which includes shops in railway stations and airports, were down by 1%. High Street like-for-like sales fell by 4%.

Private equity house 3i ramped up investment and swung into profit during the first half. Profit before tax came in at £54m for the six months ended 30 September compared with a £57 loss in 2009, helped by a much smaller exchange rate hit. The net portfolio return rose by £4m to £236m.

AMEC, the provider engineering and project management services to the oil & gas and other sectors, said trading has been towards the top end of expectations this year as all three divisions stay busy.

Restaurant Group, owner of the Garfunkel's chains, said it is trading in line with management expectations despite the tough economic backdrop and is confident of meeting full year targets.

Asia Market Updates

Indian Market Ends Sharply Lower On Profit Taking

The Indian market fell sharply on Thursday on the back of profit taking in financial, IT, oil & gas, consumer goods, telecom and construction-related shares following a mixed bag of corporate earnings and negative European cues.

The market fell even as data showed that food inflation eased to a one-year low, soothing fears of further interest rate hikes. Government data released today showed that food inflation for the week ended October 30 declined for the fourth successive week to 12.30% from 12.85% in the previous week on lower prices of potatoes, vegetables and pulses.

After trading little changed in early trading, the BSE Sensex fell sharply in the afternoon to end down 287 points or 1.37% at 20,589, with 25 of it components edging lower. Likewise, intensive selling in heavyweight stocks dragged the broader Nifty down by about 80 points or 1.30% to 6,194.

The BSE mid-cap and small-cap indexes outperformed the frontline indexes, declining 1.12% and 0.47%, respectively. In the broader market, losing shares outpaced gaining ones by 1696 to 1288 shares.

In the 30-share Sensex pack, DLF led the decliners with a 4.41% loss after the property developer posted a 5% drop in its September-quarter consolidated net profit. Bharti Airtel fell 3.26%, a day after the nation's biggest wireless telecom operator reported disappointing results. Its rival Reliance Communication ended down 1.81%.

Tata Motors declined nearly 2% after the automaker asked its Nano customers to get safety devices and features fitted in the vehicle free of cost. Jaiprakash Associates tumbled 3.28% amid reports that the company will sell shares in its Jaiprakash Power Ventures unit next year.

Cipla (down 3.22%), BHEL (down 2.66%), TCS (down 2.49%), ONGC (down 2.11%),HDFC (down 1.76%), ACC (down 1.65%), HDFC Bank (down 1.64%) and Hindustan Unilever (down 1.61%) also ended sharply lower.

On the flip side, Hindalco Industries advanced 2.62% on a brokerage upgrade. Tata Power (up 1.47%), Reliance Infrastructure (up 1.16%), Mahindra & Mahindra (up 1%) and Hero Honda Motor (up 0.12%) also bucked the downward trend to end in the green.

Hindustan Copper (down 1.26%), ONGC (down 2.11%) and Shipping Corporation of India (down 2.09%) closed weak on divestment-related reports. Tata Steel ended down 1% ahead of its results due tomorrow. Ranbaxy Laboratories fell 3.18% despite the drug firm nearly tripling its third-quarter net profit. Apollo Tyres plunged 6.51% on sluggish results.

IndusInd Bank rallied 3.54% and Lupin rose 2.22% after MSCI Inc., a leading provider of investment decision support tools worldwide, added these stocks in the MSCI Global Standard Index.

Elsewhere, the markets in Japan, China, Australia and Hong Kong advanced on Thursday, as an encouraging drop in U.S. jobless claims, robust Chinese economic data on industrial output and retail sales and a move by Moody's Investors Service to increase China's debt rating boosted demand for higher-yielding assets.

However, South Korea's KOSPI average fell 2.70% on heavy late-session selling by foreign investors on the last day of options expiry.

The impact of China's overnight reserve ratio hike was limited, while traders kept an eye on the ongoing Group of 20 meeting in Seoul, which winds up Friday. Crude futures rose above $88 a barrel to hit a new two-year high, copper prices hit a record high and gold prices edged up, as the dollar's recent rebound paused.

Chinese inflation accelerated to its highest level in more than two years in October, the government said, raising the prospects for more tightening moves from Beijing to restore normal economic conditions.

Commodities

Crude Hovers Near $89; OPEC Ups Forecast

The price of crude oil moved up Thursday morning as traders hoped for faster demand recovery.

Light Sweet Crude Oil (WTI) futures for January delivery were up $0.45 to $88.74 a barrel. Yesterday, oil rose to a fresh 2-year high after the EIA said that U.S. crude oil inventories unexpectedly fell last week.

Wednesday during trading hours, the EIA revealed U.S. crude oil inventories fell 3.3 million barrels and gasoline stocks dipped by 1.90 million barrels in the week ended November 05. Analysts were expecting crude oil inventories to increase by 1.5 million barrels, while gasoline inventories to decrease by 1.0 million barrels, last week.

The OPEC in its latest report released today revised up its estimate for global oil demand growth in the current year by 190,000 barrels a day, as it expects world economy to expand at a faster pace than previously expected. The cartel also made a slight upward revision to world oil demand growth in 2011, which is now forecast at 1.2 million barrels a day.

Today's data from China revealed that inflation soared to a 2-year high and above the government's annual target of 3%. Inflation in China soared to 4.4% in October from 3.6% in September.

Meanwhile, the U.S. dollar was trading mixed Thursday morning. The greenback continued to move higher versus the euro, while trading flat against sterling. The buckwas edging down versus the Swiss Franc and hovering near its one-month high against the yen.

With a light economic calendar today, traders will look to the equity and currency markets to get clues.

Canadian Market Reports

TSX Poised For Weak Open - Canadian Commentary

Bay Street stocks may open lower Thursday as traders fret over the inflation situation in China, the largest commodity consuming nation. Moreover, cues from the global equity markets were mixed, with most Asian stocks ending lower and European shares lingering in the red amid euro zone debt worries.

Today's data from China revealed that inflation soared to a 2-year high and above the government's annual target of 3%. Inflation in China surged to 4.4% year-over-year in October from 3.6% in September. The data could put pressure on the China's Central Bank to resort to further monetary tightening measures that might have a negative impact on the commodities prices, analysts opined.

On Wednesday, the S&P/TSX Composite Index edged up 26.01 points or 0.20% to 12,942.64.

The price of crude oil moved up to a fresh 2-year peak as U.S. crude oil inventories declined last week. Meanwhile, the OPEC in its latest report released today revised up its estimate for global oil demand growth in the current year by 190,000 barrels a day, as it expects world economy to expand at a faster pace than previously expected. Crude for January edged up $0.07 to $88.36 a barrel.

The price of gold bounced back above $1,400 amid a mixed U.S. dollar. Gold for December was up $8.90 to $1,408.20 an ounce.

In corporate news from Canada, power producer BORALEX INC. posted sharp rise in third-quarter earnings that beat Street estimates. Net earnings came in at C$27.09 million compared to C$0.69 million prior year, while net earnings per Class A share surged to C$0.69 from C$0.02 year ago. Analysts were expecting the company to report loss of C$0.05 per share for the quarter.

Independent power producer Atlantic Power Corp. reported a narrower third quarter loss of $0.44 million or $0.01 per share compared to $15.80 million or $0.26 per share in the same quarter last year. Lower interest expenses and the absence of foreign exchange loss helped the company perform better.

Coal producer SouthGobi Energy Resources swung to profit in third quarter, reporting net income of $27.49 million or $0.15 per share, compared to a net loss of $23.78 million or $0.17 per share in the year-ago period.

Precious metals miner Greystar Resources reported third-quarter loss of C$9.81 million, compared to a loss of C$7.83 million last year. However, loss per share was C$0.12, compared to loss per share of C$0.15 in the year-ago quarter.

Mining services company Orbit Garant Drilling reported first quarter net earnings of C$2.2 million or C$0.07 per share, lower than C$2.5 million or C$0.08 per share last year.

Lender C.A. Bancorp Inc. said it would use up to C$31 million of its available cash to buyback shares under a "Dutch Auction", with offer prices ranging from C$1.80 to C$2.10 per share. The offer will be for up to approximately 65% of the total number of issued and outstanding shares.

Investment firm Onex Corp. reported a narrower third quarter net loss of C$44 million or C$0.37 per share from a loss of C$180 million or C$1.48 per share last year.

Asset management company Sprott Inc. reported higher third quarter net income of C$9.6 million or C$0.06 per share, compared to C$5.5 million or C$0.04 per share in the prior year quarter.

Caterpillar equipment dealer Finning International reported nearly three-fold rise in third quarter profit to C$61 million or C$0.36 per share from C$21.7 million or C$0.13 per share a year ago. The company approved a quarterly dividend at C$0.12 per common share. Analysts were expecting the company to report earnings of C$0.29 per share.

Industrial valves making company Velan Inc. announced Wednesday that it received several important new nuclear contracts from China in October for a total of approximately C$61 million.

Restaurants operator Tim Hortons Inc. reported higher third quarter net income of C$73.83 million or C$0.42 per share compared to C$61.18 million or C$0.34 per share last year.

Shopper Marketing company Pareto Corp. reported third quarter net earnings of $1.8 million or $0.048 per share, up from $1.5 million or $0.034 per share a year earlier.

NIGERIA:Government plans effective gas policy

2010-11-11T12:50:00.000+01:00

Government plans effective gas policy

The Federal Government is set to ensure that an effective gas policy is evolved in Nigeria, considering that the country is fortunate to have one of the largest gas deposits in the world which has been neglected over time, especially for local use, the Vice President Namadi Sambo has said.

Mr Sambo made this disclosure yesterday during a courtesy visit paid to him by a delegation from the Nigerian Gas Association (NGA), led by its Chairman, Charles Osezua, which was in the State House to brief him on the just concluded Conference on Gas Development in Nigeria.

The Vice President pledged government’s resolve to give all the necessary support towards realizing this objective. He listed some steps taken by the government to include construction of ten new thermal/gas power plants in the country and the encouragement of private sector participation; the drawing up of a gas master plan by government and the mandate given to NNPC to commence a detailed study and designs of gas transfer.

He informed the group that on November, 23, the President of the African Development Bank will be visiting Nigeria to ascertain the areas where the bank can support Nigeria.

He also pointed out that on the 6th of December, the Islamic Development Bank will also be in Nigeria for the IDB day and use the opportunity to examine infrastructural projects in the country for the purpose of making available cheap funds with long term repayment periods at low interests rates.

Funds for growth

He further stated that the China Exim Bank, Japanese Yen Credit, European Union and the Common Wealth Business Council are other bodies interested in supporting government’s planned development of the gas sector both technically and financially.

Mr. Sambo reiterated the administration’s resolve to support the development of gas and its export sector in Nigeria in order to realize the roadmap to improve power in Nigeria. “This is a viable project, the sum of N300 billion having been made available to be accessed via the CBN,” he said.

Mr Osezua commended government’s intervention through the CBN funding to enable potential power and gas investors access capital which hitherto had been a major challenge.

He also observed that it was crucial that infrastructural challenges, such as the North to South gas pipelines network be worked.

Mr. Osezua urged government to review the licensing tenure and enthused that gas needs power and power needs power.

WORLD MARKET UPDATES

2010-11-11T10:43:00.000+01:00

US Market Updates

Stocks are seeing moderate weakness in mid-morning trading on Wednesday, although selling pressure has remained relatively subdued. The major averages have moved firmly into negative territory, pulling back further off their recent highs.

While the major averages have moved off their worst levels of the day in the past few minutes, they remain in the red. The Dow is down 60.93 points or 0.5 percent at 11,285.82, the Nasdaq is down 12.44 points 0.5 percent at 2,550.54 and the S&P 500is down 6.12 points or 0.5 percent at 1,207.28.

Profit taking is contributing to the weakness in the markets, with traders cashing in on the strength seen in recent weeks. Nonetheless, the release of upbeat economic data may be helping to limit the downside.

Before the start of trading, the Labor Department said jobless claims fell to 435,000 in the week ended November 6th from the previous week's revised figure of 459,000. Economists had expected jobless claims to slip to 450,000 from the 457,000 originally reported for the previous week.

The less volatile four-week moving average also slipped to 446,500 from the previous week's revised average of 456,500, falling to its lowest level since September of 2008.

A separate report from the Commerce Department showed that the U.S. trade deficit narrowed by much more than expected in the month of September, as the value of exports rose and the value of imports fell.

The report showed that the trade deficit narrowed to $44.0 billion in September from a revised $46.5 billion in August. Economists had been expecting the size of the deficit to edge down to $46.2 billion from the $46.3 billion originally reported for the previous month.

Paul Dales, U.S. economist at Capital Economics, noted that the narrower deficit in September may contribute to a small upward revision to third quarter GDP growth, as the initial estimate reflected the assumption that the trade deficit was unchanged in September.

In economic data from overseas, China's General Administration of Customs said the country's trade surplus soared to $27.2 billion in October compared to $16.9 billion in September. Analysts had forecast a surplus of $25 billion.

The People’s Bank of China subsequently announced a 50 basis point increase in its reserve ratio, a move that forces banks to set aside more reserves in an effort to control the flow of new money.

On the earnings front, auto giant General Motors reported a $2 billion profit in the third quarter compared to a loss of $908 million in the year-ago quarter. The results come as the company prepares for public stock offering next week.

Asia Market Updates

The Indian market ended a range-bound session modestly lower on Wednesday due to tepid global cues. While frontline indexes such as the Sensex and Nifty eased modestly due to profit taking at higher levels, retail participation was seen in mid-cap and small-cap stocks. The BSE mid-cap and small-cap indexes ended up 0.3% and 0.79%, respectively. The broader Nifty ended down 26 points or 0.41% at 6,276.

After moving choppily in a narrow range of 20,971- 20,850, the 30-share BSE Sensexfinally ended down about 60 points or 0.27% at 20,876, with 19 of its components edging lower. Among the prominent decliners, ICICI Bank, Sterlite, ACC, Hindustan Unilever, Hindalco, BHEL, SBI and Cipla lost between 1% and 2%. Bharti Airtel fell 1.77%, as its second-quarter consolidated net profit fell 27%, lagging estimates.

Sector-wise, selling was seen in banks, metals, construction, consumer goods and pharma stocks, while energy, IT and auto stocks witnessed stock-specific buying, limiting the downside. Tata Motors rose 2.45% on forecast-beating July-September quarter earnings. Mahindra & Mahindra (up 3.05%), Infosys (up 1.01%), Wipro (up 0.80%),ONGC (up 0.71%) and Maruti Suzuki (up 0.31%) were the other prominent gainers.

Newly-listed Coal India ended down 1.07% on profit taking following good listing gains. Jet Airways advanced 1.66% on a hectic volume. Astra Microwave Products rallied 4.39% after its board approved a 1:2 bonus issue.

Tyre manufacturers like MRF, Apollo, CEAT and JK Tyre & Industries rose by 1%-3.5% on the buzz they may hike product prices. Similarly, sugar stocks saw widespread gains after raw sugar futures vaulted to a 30-year high in London on Tuesday. Nestle India tumbled 4.15% on a brokerage downgrade.

Elsewhere, most Asian stocks fell on Wednesday, as oil and metal prices declined on the back of weak Chinese import data and a stronger dollar. Renewed credit concerns over European sovereign debt and caution ahead of the release of a slew of data from China due tomorrow, including inflation, producer prices and retail sales, also prompted investors to lock in some gains after last week's rally.

However, Japan's Nikkei average rose 1.4% to end at its highest level in more than four months, as the yen's retreat against higher-yielding currencies lifted exporter shares and banking stocks gained on a Financial Times report that major Asian banks will be ''exempted from a planned new global regulatory regime.''

Likewise, South Korea's KOSPI average rose 1.05% to almost a three-year high, boosted by continued buying by foreign funds and New Zealand's benchmark NZX-50closed 0.35% higher.

China's Shanghai Composite, which tracks both A and B shares, ended down 0.63%, dragged down by banks and property developers, as investors awaited October inflation data. Also, reports suggested that China's central bank has ordered some lenders to increase their reserve requirements by 50 basis points in an attempt to ward off the risk of stronger inflation and curb rapid credit growth.

European stocks fell from a two-year high, dragged down by miners, while the U.S. index futures fluctuated.

Stocks in Focus

Among bond insurers, Ambac Financial (ABK) said its third quarter net income fell to 25 cents per share from $7.58 per share last year. The recent quarter’s results were impacted by significantly reduced mark-to-market gains in the credit portfolio. Total revenues fell to $361.16 billion from last year’s $2.69 billion. The company filed for Chapter 11 bank-ruptcy protection earlier this week following its failure to meet interest payment commitment on its debentures.

MBIA, Inc. (MBI) reported a third quarter loss of $1.06 per share compared to a loss of $3.50 per share last year, with the recent quarter’s loss reflecting a $492 million pre-tax loss on the fair value of insured credit derivatives.

International Gaming Technology (IGT) said its fourth quarter adjusted income from continuing operations came in at 18 cents per share, flat with last year. Revenues fell to $496 million from $512.3 million in the year-ago period. Analysts estimated a profit of 19 cents per share on revenues of $488.16 million.

Weight Watchers International (WTW) reported third quarter earnings of 59 cents per share, which included a charge of 5 cents per share, on revenues of $330.6 million. The company’s adjusted earnings fell to 59 cents per share from last year’s 67 cents per share. Analysts estimated earnings of 64 cents per share on revenues of $327.41 million. The company tightened its full year earnings guidance to a range of $2.42-$2.47 per share from a range of $2.35-$2.50 per share, to reflect the 5 cents per share charge recorded in the third quarter. The consensus estimates call for earnings of $2.47 per share.

Lions Gate Entertainment (LGF) reported a net loss of 22 cents per share for its second quarter compared to net income of 27 cents per share last year. Revenues rose 25% to $456.3 million. Analysts estimated a loss of 11 cents per share on revenues of $414.85 million.

Other Corporate News

Allstate (ALL) could see some strength after it announced that its board has approved a dividend of 20 cents per share and a $1 billion share buyback

Brightpoint (CELL) may also see some activity after it said its board has approved the increase of its previously announced share buyback program by an additional $25 million.

Canadian Market Reports

Canadian stocks may open lower Wednesday as commodities prices were leveling off from their recent highs. Commodities eased as worries resurfaced over demand growth in China, after its central bank ordered banks to increase their reserves to curb lending.

U.S stock futures were pointing to a marginally higher open amid weekly jobless claims data that came in better-than expected.

On Tuesday, the S&P/TSX Composite Index lost 135.85 points or 1.04% to 12,916.63.

The price of crude oil edged up as traders await the official crude oil inventories data from the EIA, due out later during trading hours today. Tuesday after the market hours, the API said crude oil inventories fell 7.4 million barrels and gasoline stocks dipped by 3.5 million barrels in the week ended November 05. Analysts were expecting crude oil inventories to increase by 1.4 million barrels last week. Crude for January delivery added $0.26 to $87.61 a barrel.

The price of gold was leveling off after hitting a fresh record high in the previous session amid a mixed U.S. dollar. Gold for December was down $7.40 to $1,402.70 an ounce.

In corporate news from Canada, metals mining company Quadra FNX Mining (QUX.TO) reported improved third-quarter net earnings of $37.2 million or $0.19 per share from $14.7 million or $0.15 per share in the same quarter last year. On an adjusted basis, earnings were $42.0 million or $0.22 per basic share, compared to $21.4 million or $0.22 per basic share last year.

Base-metals miner First Quantum Minerals (FM.TO) slipped in to the red in third quarter, reporting net loss of $136.7 million or $1.70 per share compared to a net earnings of $148.6 million or $1.50 per share last year. However excluding impairment, derivatives and acquisition costs, net earnings were $129.7 million or $1.62 per share compared to $164.2 million or $2.10 per share last year.

Mining industry services provider Atna Resources (ATN.TO) said it would, on a bought deal basis, place 13.35 million of its units at C$0.60 per unit for gross proceeds of C$8.01 million.

Gold miner Jaguar Mining Inc. (JAG.TO) slipped into the red in third quarter, reporting net loss of $3.8 million or $0.05 per share, compared to net income of $6.91 million or $0.09 per share last year.

China focused silver miner Silvercorp Metals (SVM.TO) reported higher second-quarter net income of $12.5 million or $0.08 per share, compared to $8.9 million or $0.05 per share a year ago. Excluding items, adjusted net earnings for the latest quarter were $14.7 million or $0.09 per share.

Interactive technology solutions provider SMART Technologies (SMA.TO) reported lower second quarter net income of $44.3 million or $0.38 per share from $56.7 million or $0.33 per share in the year ago period. However on an adjusted basis, net income increased to $38.7 million or $0.33 per share from $20.2 million $0.12 per share last year. Analysts were expecting the company to earn $0.24 per share in the quarter.

Commercial forest plantation operator Sino-Forest (TRE.TO) reported higher third-quarter net income of $118.04 million from $105.62 million last year. On a per share basis, earnings remained unchanged at $0.47.

Oil and gas industry services provider Savanna Energy Services (SVY.TO) swung to profit in third quarter, reporting net earnings of $1.21 million or $0.02 per share, versus a loss of $4.54 million or $0.06 per share for the same period last year. Analysts were expecting the company to report earnings of $0.03 per share this quarter.

Energy sector focused investment trust Baytex Energy Trust (BTE_UN.TO) reported higher Funds From Operations of C$112.79 million or C$0.97 per unit from C$88.81 million or C$0.80 per unit in the previous year.

Hydrogen generation products maker Hydrogenics Corp. (HYG.TO) reported third quarter net loss of $2.08 million or $0.47 per share, narrower than $5.44 million or $1.47 per share last year.

Rainmaker Entertainment (RNK.TO) turned to profit in third quarter, reporting net earnings of C$0.70 million or $0.04 per share compared to a loss of C$0.93 million or $0.05 per share in the same quarter last year.

In economic news, Statistics Canada said trade deficit rose to C$2.5 billion in September from C$1.5 billion in August, as exports dropped 1.7% to C$33.06 billion from a revised C$33.65 billion Automotive products, other consumer goods as well as industrial goods and materials were the main factors behind the decline. Exports to the U.S. fell 3.6% to C$23.9 billion, their lowest level since November 2009.

From south of the border, the U.S. Labor Department said initial jobless claims were down by 24,000 to 435,000 in the week ended November 06. Economists had expected the figure to come in at 450,000.

European Market Updates

The French market is declining in afternoon trading Wednesday, led by lenders. Sentiment was impacted by economic reports from China that dampened Asian markets and apprehensions about European debt crisis.

Crude for January delivery is trading down $0.26 at $87.09 per barrel and gold is losing $13.4 at $1396.7 an ounce.

In economic news, industrial output in France edged up 0.1% in September from August, according to a report from the statistical office Insee. Economists had expected it to grow 0.5% after staying flat in August.

German wholesale price index rose 7.7% year-on-year in October, faster than a 7.6% rise in the previous month, the Federal Statistical Office said. A year earlier, wholesale prices were down 7%.

The Bank of England said in its latest quarterly Inflation Report that British consumer price inflation is expected to stay above the 2% target throughout 2011 given the forthcoming rise in value added tax and continuing increases in import prices.

Meanwhile, China's central bank decided to raise banks' reserve requirement ratio by 50 basis points, effective from November 16, the fourth hike this year. Separate data showed that China's net crude imports fell to 16.1 million metric tons in October from a record 22.9 million tons in September.

The CAC 40 opened lower at 3,901 and has been trading in a range of 3,915- 3,933. The index is currently losing 0.73%.

Lender Natixis is losing 8.6% after reporting unimpressive results. Credit Agricole is slipping 3%. Societe Generale and BNP Paribas are losing 1.2% and 0.7%, respectively.

Among carmakers Renault is down 2.1% and Peugeot is slipping 1%.

Those making notable losses include tire and rubber company Michelin, utility GDF Suez, metal fabrication company Valourec, dairy products maker Danone, drugmakerSanofi-Aventis and hotel group Accor.

Water utility Veolia Environnement is adding 2.6% and electric utility EDF is gaining 2.3%. Heavy construction firms Bouygues and Vinci are advancing 2% and 1.3%, respectively. Airplane maker EADS is rising 1.5%.

Elsewhere in Europe, the UK's FTSE 100 is losing 0.64% and the German DAX is dropping 0.42%.

Across Asia/Pacific, most major markets closed in the red. Australia's All Ordinarieslost 0.86% and China's Shanghai Composite Index retreated 0.63%. Hong Kong's Hang Seng and India's BSE Sensex lost 0.85% and 0.27%, respectively. However,Japan's Nikkei 225 gained 1.4%.

In the U.S., futures point to a slightly higher open on Wall Street. In the previous session, the Dow fell 0.5%, the Nasdaq slid 0.7% and the S&P 500 declined 0.8%.

WORLD MARKET UPDATES

2010-11-10T13:02:00.000+01:00

US Market Updates

Stocks are largely on the upside in mid-morning trading on Tuesday amid a positive reaction to a September wholesale inventory growth number that more than doubled expectations. Nonetheless, movement remains limited amid the lack of first-tier economic reports.

The major averages have pulled back off their highs for the session in the past few minutes but currently remain positive. The Dow is up 9.84 points or 0.1 percent at 11,416.68, the Nasdaq is up 11.12 points or 0.4 percent at 2,591.17 and the S&P 500is up 3.16 points or 0.3 percent at 1,226.41.

A short time ago, the Commerce Department reported that wholesale inventories in the U.S. increased by much more than expected in the month of September, helped by a jump in inventories of non-durable goods.

Wholesale inventories increased by 1.5 percent in September following a revised 1.2 percent increase in August. Economists had expected inventories to increase by 0.6 percent compared to the 0.8 percent growth originally reported for the previous month.

On the corporate front, energy giant Chevron (CVX) signed a deal to purchase Atlas Energy, Inc. (ATLS) for approximately $4.3 billion, including debt. Through the deal, Chevron will gain access to a natural gas resource position primarily in southwestern Pennsylvania's Marcellus Shale.

In earnings news, Dean Foods Co. (DF) reported that its third-quarter net income came in at $0.13 per share, 8 cents short of average expectations. Meanwhile, net sales totaled $3.1 billion, beating forecasts for $3.04 billion for the period.

The firm also revealed a fourth-quarter earnings estimate nearly a dime under Wall Street expectations and announced the resignation of VP and CFO Jack Callahan.

Also today, U.K.-based mobile phone network operator Vodafone Group Plc (VOD) reported a surge in its first-half profit, driven by gains from sale of its interest in China Mobile and a tax resolution.

Vodafone also announced a deal to sell its interests in Japanese telecom and media company SoftBank Corp. of Japan for roughly $5 billion. Looking ahead, Vodafone lifted its adjusted earnings outlook for the full year.

After the markets closed for trading on Monday, online travel company Priceline.com(PCLN) said that its third-quarter profit declined by 30 percent from last year due to a non-cash tax benefit recorded in the year-ago period. On an adjusted basis, earnings came in well ahead of expectations, driven by double-digit growth in travel bookings.

European Market Updates

The French market is rising in afternoon trading Tuesday, ignoring largely negative cues from Asia. Sentiment was influenced by upbeat corporate statements from Europe. Carmakers, construction stocks and lenders are witnessing upside.

Crude for December delivery is trading at $87.39 per barrel, up $0.33 from the previous close, and gold is higher by $16.6 at $1419.8 an ounce.

In economic news, French trade deficit shrank to EUR 4.68 billion in October from EUR 4.98 billion in September, the country's customs office said. Economists had expected the deficit to fall to EUR 3.9 billion.

The German consumer price index rose 1.3% year-on-year, unchanged from September and confirming the preliminary estimate released on October 27, the Federal Statistical Office said.

Industrial production in the U.K. rose 3.8% year-over-year in September, the Office for National Statistics said. Economists had predicted a 3.6% rise following the 4.3% increase in August. Separate data showed that the country's visible trade deficit narrowed to GBP 8.2 billion in September from a revised deficit of GBP 8.5 billion in August. Economists had forecast GBP 8 billion deficit.

The CAC 40, which opened lower at 3,904, followed its German counterpart and rose sharply later. The index is currently adding 0.85%.

Carmakers are gaining on the index with Renault adding 2.4% and Peugeot gaining 1.7%. Cement giant Lafarge is rising 2.3%, steel maker ArclorMittal is adding 2% and building naterials maker Saint-Gobain is advancing 1.7%. Heavy construction firms Bouygues and Vinci are rising 2.1% and 0.8%, respectively.

Lenders Natixis, BNP Paribas and Crdeit Agricole are notably higher while Societe Generale is moderately rising.

Those on the losing side include oil & gas services firm Technip, airplane maker EADS, dairy products maker Danone as well as water utilities Suez Environnement and Veolia Environnement.

Elsewhere in Europe, the UK's FTSE 100 is adding 0.81% and the German DAX is gaining 0.69%.

Across Asia/Pacific, most major markets ended in the red. Australia's All Ordinarieslost 0.71% and China's Shanghai Composite Index dropped 0.78%. Hong Kong's Hang Seng and Japan's Nikkei 225 lost 1% and 0.4%, respectively. However, India's BSE Sensex gained 0.4%.

In the U.S., futures point to a slightly higher open on Wall Street. In the previous session, the Nasdaq rose slightly, while the Dow slid 0.3% and the S&P 500 declined 0.2%.

Asia Market Updates

The Indian market ended a volatile session modestly higher on Tuesday, with heavyweights such as Hindustan Unilever, HDFC Bank, TCS, Sterlite, Bharti Airtel, ITC, DLF, Tata Steel, ICICI Bank and Infosys leading the gains.

Tracking lackluster global cues, the 30-share BSE Sensex moved choppily in a range of 20,984- 20,763 before ending up 80 points or 0.38% at 20,932, with 20 of its components edging higher. Likewise, the broader Nifty reversed its early loss to end about half a percent higher at 6,302, while the BSE mid-cap and small-cap indexes gained 0.38% and 0.85%, respectively.

IT, metals, construction, consumer goods and telecom stocks saw strong - buying, while continued profit taking in stocks like Maruti Suzuki, Reliance Infrastructure, ONGC, Tata Power, HDFC, Reliance Industries, Hero Honda Motors, BHEL andJaiprakash Associates limited the upside.

State-run lender SBI tumbled 4.40% after it announced quarterly profit that lagged estimates. HDFC eased 0.41%, extending its loss for a third consecutive session. ICICI Bank advanced 1.11% after it raised $1 billion from international bond market.

Ramco Systems (up 5%) and Subex (up 12.41%) rallied on bagging new orders. GVK Power and Infrastructure rose 2.63% after it sealed a deal to sell a 21.1% stake in its energy unit GVK Energy to 3i Infrastructure Fund.

SKS Microfinance slumped 4% after it proposed to cut its lending rates to 24% across all states. Coal India fell 1.33%, extending its loss for a second straight session. Central Bank of India shed 0.88% after it tied up with commercial vehicles-maker Asia MotorWorks for financing vehicles.

Himatsingka Seide advanced 3% after the company convened a board meet on November 11 to consider fund raising. Power Grid Corporation jumped 5.5% after the company launched its follow-on public offering.

Tata Teleservices edged up 0.65%, after the telecom company, which has DoCoMo of Japan as its partner, announced a call tariff of just 0.66 paise per second for its 3G mobile services.

Apollo Hospitals (up 0.28%) JK Tyre & Industries (down 0.69%) and Sundram Fastners (up 3.05%) closed mixed after the companies unveiled their quarterly earnings. Shares of oil-marketing companies rose after the state-run companies raised petrol prices. BPCL advanced 0.28%, HPCL gained 0.29% and IOC added 0.67%. Mahindra Satyam gained 2.78%, extending its recent gains, ahead of its quarterly results due next week.

Elsewhere, the stock markets in Japan, China, Hong Kong and Australia closed lower on Tuesday, as the euphoria over the Fed's monetary easing faded and a rebound in the dollar index dragged down base metal and oil prices. Caution ahead of this week's Group of 20 meeting in South Korea also weighed on sentiment to some extent.

Heightened worries about fiscal positions in some euro zone countries and a possible Ireland debt default dragged the euro down against the dollar, while a stronger yen dragged down exporter shares such as Canon.

However, European stocks moved higher, reversing early losses, as companies fromVodafone Group Plc to Adecco SA reported strong earnings. Crude oil futures declined due to strength in the dollar index, while the U.S. index futures pointed to a

sluggish start on Wall Street Tuesday morning.

Forex Top Story

Wholesale Inventory Growth Far Exceeds Estimates In September

Wholesale inventories in the U.S. increased by much more than expected in the month of September, according to a report released by the Commerce Department on Tuesday, with the increase due in large part to a jump in inventories of non-durable goods.

The report showed that wholesale inventories increased by 1.5 percent in September following a revised 1.2 percent increase in August. Economists had expected inventories to increase by 0.6 percent compared to the 0.8 percent growth originally reported for the previous month.

A notable increase in inventories of non-durable goods contributed to the stronger than expected growth, with inventories of non-durable goods surging up by 2.8 percent in September due largely to a 14.8 percent jump in inventories of farm products.

Inventories of durable goods also contributed to the overall growth, rising by 0.7 percent. The increase was partly due to a 3.0 percent increase in inventories of miscellaneous durable goods.

The Commerce Department also said that wholesale sales increased by 0.4 percent in September after rising by 0.5 percent in August. Sales of durable goods edged up by 0.2 percent, while sales of non-durable goods rose by 0.6 percent.

With inventories increasing at a much faster rate than sales, the wholesale inventories/sales ratio
inched up to 1.18 in September from 1.17 in August. Nonetheless, the ratio remains below the 1.22 seen in September of 2009.

Next Monday, the Commerce Department is due to release a separate report on total business inventories, which include wholesale inventories as well as inventories at manufacturers and retailers. Business inventories are expected to rise by 0.6 percent in September, matching the increase seen in August.

Canadian Market Reports

Bay Street stocks were hovering in the positive territory Tuesday morning as resource stocks extend gains amid a rally in commodities prices, with gold stocks turning in a particularly strong performance.

Meanwhile, the Canadian dollar rose above parity with its U.S. counterpart.

The S&P/TSX Composite Index moved up 33.50 points or 0.26% to 13,085.98, its fresh 2-year peak.

The price of gold continued to extend rally, surging to a fresh record high of above $1,400. Gold for December gained $17.20 to $1,420.40 an ounce.

The Global Gold Index gained over 2%, with Barrick Gold (ABX.TO), Alamos Gold(AGI.TO) and Yamana Gold (YRI.TO) adding around 3% each.

Silver streaming company Silver Wheaton (SLW.TO) added nearly 4%. The company reported higher third quarter net earnings of $69.23 million or $0.20 per share, up from $33.57 million or $0.11 per share last year. Analysts were expecting the company to report earnings of $0.19 per share. The company said it remains on track to meet production guidance of 23.5 million silver equivalent ounces in 2010, growing to about 40 million ounces by 2013.

Among base-metals stocks, First Quantum Minerals (FM.TO), Lundin Mining(LUN.TO) and Taseko Mines (TKO.TO) gained nearly 3% each.

Metal mining company Minefinders Corp. (MFL.TO) edged up over 1% even after reporting a wider a third-quarter net loss of $4.8 million or $0.07 per share, compared to a loss of $0.07 million or $0.01 per share in the same quarter a year-ago. Analysts were expecting the company to report a loss of $0.02 per share this quarter.

Meanwhile, Equinox Minerals (EQN.TO) lost over 8%. Yesterday, the company said it swung to profit in third quarter, reporting net income of $71.15 thousand or $0.10 per share compared to a loss of $56.27 thousand or $0.08 per share in the same quarter last year. Copper production grew 37% to 38,445 tonnes or 84.76 million pounds from the prior-year quarter, the company said.

The price of crude oil extended recent gains as traders await cues from the weekly inventories report from the API. Crude for December was up $0.27 to $87.33 a barrel.

In the oil patch, Crew Energy (CR.TO), Encana Corp (ECA.TO) and NuVista Energy(NVA.TO) gathered close to 2% each.

Uranium stocks were under the buyers' radar, with First Uranium Corp. (FIU.TO) andMega Uranium (MGA.TO) adding close to 8% each. Uranium One (UUU.TO) rose close to 2%.

Information technology services provider CGI Group (GIB_A.TO) soared nearly 10%. The company said its fourth-quarter earnings increased to C$84.08 million or C$0.30 per share from C$82.64 million or C$0.27 per share in the year ago period. Excluding one-time expenses, earnings from continuing operations would have been $94.5 million or C$0.34 per share.

Heavy equipment dealer Toromont Industries (TIH.TO) gained over 5% after it said it would spin off Enerflex Ltd, a supplier of natural gas production & processing equipment, as a separate publicly traded company.

Meanwhile, financial stocks were down marginally. TD Bank (TD.TO), Bank of Montreal (BMO.TO) and CIBC (CM.TO) were down close to 1% each.

Wireless data services provider Wi-LAN Inc. (WIN.TO) plummeted nearly 5% after slipping into the red in third-quarter, reporting net loss of C$6.2 million, or C$0.06 per share, compared to net earnings of C$16.5 million or C$0.16 per share a year ago. Excluding the one-time tax benefit, net loss would have been C$3.1 million or C$0.03 per share. The company declared a dividend of C$0.0125 per share.

Farm and construction equipment dealer Rocky Mountain Dealerships (RME.TO) shed over 5% after reporting lower third quarter net profits of $3.8 million or $0.20 per share compared to $4.9 million or $0.34 per share for the same period last year.

Oil producer PetroBakken Energy (PBN.TO) was down over 1% after reporting lower third quarter net income of C$9.19 million or C$0.05 per share, compared to C$9.86 million or C$0.09 per share in the prior year quarter.

In economic news, Statistics Canada said New Housing Price Index (NHPI) increased 0.2% in September following a 0.1% increase in August. Economists were expecting the index to move up by 0.1% in September. Year over year, the NHPI was up 2.7% in September following a 2.9% increase in August.

WORLD MARKET UPDATES

2010-11-08T19:27:00.000+01:00

US Market Updates

Stocks Giving Back Ground In Early Trading

After seeing considerable strength last week, stocks moved back to the downside at the start of trading on Monday. The major averages all slipped into negative territory after ending Friday's trading at their best closing levels in over two years.

Profit taking contributed to the initial weakness among stocks, with traders cashing in on the recent strength in the markets amid a light news day. Following the slew of news last week, some traders may stay on the sidelines to digest the markets' recent performance.

Amid today's corporate news, McDonald's Corp. reported global sales growth at locations open for at least a year of 6.5 percent in October, which was slightly less than expected by Wall Street analysts.

U.S. comparable sales grew 5.6 percent for the month, as the popularity of the featured core products drove monthly growth. In Europe, revenues rose by 5.8 percent, while sales rose by 5.3 percent in the Asia/Pacific, Middle East and Africa.

In earnings news, food wholesaler Sysco posted first-quarter net income of $0.51 per share, in-line with Wall Street expectations. Sales for the quarter came in at $9.75 billion, an increase of 7.4 percent from the same period last year and higher than forecasts for $9.56 billion.

While selling pressure has remained relatively subdued in early trading, moderate weakness is visible among airline, defense, and housing stocks. Nonetheless, most of the major sectors are showing only modest moves.

The major averages have moved off their lows for the young session but currently remain stuck in the red. The Dow is currently down 45.34 points or 0.4 percent at 11,398.74, theNasdaq is down 3.92 points or 0.2 percent at 2,575.06 and the S&P 500 is down 3.28 points or 0.3 percent at 1,222.57.

European Market Updates

French Market Modestly Down

The French market is modestly down in afternoon trading Monday, following a strong rally last week. Utilities were under pressure, while banks were mostly higher.

Crude for December delivery is dropping $0.19 at $86.66 per barrel and Decembergold is sliding $5.5 at $1392.2 an ounce.

In economic news, Germany's trade surplus widened in September as exports increased, a report by the Federal Statistical Office showed. The trade surplus increased to EUR 16.8 billion in September from EUR 9 billion in the previous month. Economists had expected a surplus of EUR 12 billion. The figure was also bigger than EUR 11.5 billion recorded a year ago.

German industrial production fell 0.8% month over month in September, the Federal Ministry of Economics and Technology said. Following a 1.5% rise in August, economists were looking for 0.4% growth for September.

Switzerland's seasonally adjusted jobless rate dropped to 3.6% in October from 3.7% in September, in line with economists' expectations, the State Secretariat for Economic Affairs said. The number of unemployed was 143,050, down from 145,777 in the preceding month.

Meanwhile, market research group Sentix said Euro area investor confidence, which measures the level of investors' confidence in the eurozone economic activity, improved sharply in November, exceeding forecast. The investor sentiment index rose to 14 from 8.8 in October. The indicator stayed above the expected score of 10.

The CAC 40 opened at 3,916 and has been trading in the range of 3,897- 3,918. The index is currently losing 0.12%.

Telecom equipment maker Alcatel Lucent is sliding 2.7% reportedly on an analyst downgrade. Machinery firm Alstom is declining 2.3%.

Water utility Veolia Environnement is losing 1.2% and peer Suez Environnement is dipping 0.8%. Electric utility EDF is down 1.1%.

Lenders BNP Paribas, Societe Generale and Natixis are adding between 0.8% and 0.1%. Credit Agricole is down 0.1%.

Steel giant ArcelorMittal is advancing 1.4% and cement manufacturer Lafarge is gaining 1.3%. Carmakers Renault is rising 1.2% and Peugeot is marginally up.

Elsewhere in Europe, the UK's FTSE 100 is losing 0.33% and the German DAX is declining 0.12%.

Most Asian markets closed higher. China's Shanghai Composite Index gained 1%, Hong Kong's Hang Seng added 0.35% and Japan's Nikkei 225 climbed 1.1%. However, India's BSE Sensex and Australia's All Ordinaries dropped 0.4% and 0.7%, respectively.

In the U.S., futures point to a lower open on Wall Street. In the previous session, the Dowand the Nasdaq edged up around 0.1% each, while the S&P 500 rose 0.4%.

Asia Market Updates

Indian Market Eases From Record High

The Indian market ended Monday's session notably lower, with profit taking following a sharp rally in the past few sessions, weighing on sentiment.

Financials like HDFC Bank, SBI, HDFC and ICICI Bank, technology stocks likeInfosys and Wipro, and auto makers like Mahindra & Mahindra, Maruti Suzuki andHero Honda Motors came under selling pressure, while select metal stocks likeSterlite, Tata Steel, cement maker ACC, infra firm Jaiprakash, Tata Motors andHindustan Unilever showed significant strength. Reliance Infrastructure, DLF andReliance Industries also ended up about half a percent each.

The 30-share BSE Sensex, which ended at a record high of 21,005 during the Muhurat session on Friday evening, lost about 150 points or 0.73% today to close at 20,852. The broader Nifty ended down 39 points or 0.62% at 6,273.

However, the BSE mid-cap and small-cap indexes closed mostly unchanged. In the broader market, declining shares outpaced gaining ones by 1520 to 1451 on the BSE.

Coal India, which gained 42% on its debut last week, plunged 5.49% on profit taking.Power Grid Corporation of India fell 3.58% to Rs.98.35 after the state-run transmission company fixed the price band of its upcoming follow-on public offering at Rs 85-90 a share. SBI declined almost 2% amid reports that it may acquire a second bank in Indonesia.

Cement maker Ambuja Cement, which recently said its cement production rose 16% in October, jumped 7.73%. Drugmaker Glenmark Pharmaceuticals rallied 3.56% after it completed phase-III trials for its crofelemer drug. Delta Corporation (up 2.30%), IFCI (up 4.17%) and Orchid Chemicals (up 3.53%) closed firm on hectic volumes.

Reliance Power, which has placed a $750 million order with U.S.-based General Electric to procure gas turbines for its power plant in Andhra Pradesh, climbed 4.27%.Mahindra Satyam advanced 3.41% ahead of its half-yearly results due next week.

HCL Technologies declined 1.76% after it signed a deal with Novotech, the largest independent clinical research organization in Australia. Shares of state-run oil marketing companies came under significant selling pressure, as crude futures hovered near a two-year high. BPCL fell 2.73%, HPCL tumbled 3.81% and IOC ended down 2.56%.

Jain Irrigation Systems rose 2.94% on posting a 46% rise in quarterly net profit. Aban Offshore added 0.91% after it posted a modest 5% rise in its second-quarter consolidated net profit. Megasoft hit the 5% upper circuit limit after it concluded a deal with HTC Global Services (India) for selling its land and building at Begumpet, Hyderabad.

Sugar stocks were in demand as raw sugar futures settled at a 30-year high on Friday.Bajaj Hindusthan (up 6.67%), Balrampur ( up 6.69%), Dhampur ( up 9.11%) andShree Renuka (up 4.83%) were some of the prominent gainers.

Elsewhere, most Asian stocks rose on Monday, reversing early losses, with solid jobs data from the U.S. and higher commodity prices lifting sentiment. However, a little bit of profit taking following last week's strong gains and concerns over budget woes in Greece, Ireland and Portugal limited the upside.

However, European stocks were subdued in early trading, dragged down by miners, and the U.S. index futures pointed to a slightly lower open on Wall Street Monday. The dollar rose against major rivals today, as investors covered short positions on the back of improving jobs data from the world's largest economy.

Forex Top Story

Dollar Gains On Euro As Focus Turns To G20

The dollar continued to fight back against the euro Monday morning, as the markets looked ahead to this week's gathering of world leaders at the G20 Summit in South Korea.

Volatility in the currency markets have become a focal point of foreign policy, with many nations seen as deliberately weakening their currencies to give their exporters a competitive advantage.

President Barack Obama will join leaders from the developed and developing world on Thursday and Friday in Seoul.

Last week, the Federal Reserve announced an additional $600 billion in asset purchases to support the economy, but because the size and scope of the move was already priced in, the dollar has managed to stabilize over the past few days, particularly against the euro.

With little economic data to chew on today, traders will focus on a pair of speeches from officials of the Federal Reserve.

Federal Reserve Bank of St. Louis President James Bullard speaks on monetary policy and inflation, while Richard Fisher of the Dallas Fed will discuss the health of the nation's economy.

The dollar rose to $1.39 versus the euro -- its highest level in a week. With the advance, the dollar moved away from a recent 10-month low of $1.4281.

Gains were more muted against the sterling, with the dollar improving to $1.6120 from last week's 10-month low near $1.63.

The dollar was just above parity against the Canadian loonie, and was hovering around Y81 versus the yen.

The dollar has found a measure of support since hitting a 15-year low of Y80.23 on Halloween.

The Japanese government intervened only once in the currency markets to weaken the yen in September, official data showed on Monday.

The Ministry of Finance said it sold 2.1 trillion yen for the U.S. dollar on September 15. That was the first intervention by Japanese authorities in the currency markets in over six years.

Japan's central bank on Monday downgraded its view of the economy amid stagnating exports and weakening global demand.

The Japanese recovery is likely to proceed at a "slower pace for some time," the Bank of Japan said, cutting last month's assessment that the recovery should continue at a moderate pace.

In other economic news from around the globe, Euro area investor confidence improved sharply in November, exceeding forecast, results of a survey showed Monday.

The investor sentiment index rose to 14 from 8.8 in October, market research group Sentix said this morning.

German industrial output dropped 0.8% month-on-month in September, according to a report from the Federal Ministry of Economics and Technology. Following a revised 1.5% rise in August, economists were looking for 0.4% growth for September.

Canadian Market Reports

TSX May Open Flat Amid Mixed Cues

Canadian stocks are poised for a lackluster open Monday ahead of a less eventful week, with a very light economic calendar. Meanwhile, easing commodities prices might weigh on trader sentiment.

Commodities witnessed a decent run up last week, with gold settling at a record high and crude oil gaining nearly 7%.

U.S stock futures were pointing to a lower open.

On Friday, the S&P/TSX Composite Index advanced 46.31 points or 0.36% to 12,925.11, its fresh 2-year peak.

The price of crude oil edged down as traders await for fresh triggers. Crude for December moved down $0.27 to $86.58 a barrel.

The price of gold edged down Monday morning amid a rebounding U.S. dollar. Last week, gold settled at a record high of $1,397.70, gaining $40 as the U.S. dollar weakened after the Federal Reserve announced plans to infuse $600 billion in a phased manner into the economy to spur growth. Gold for December was down $6.20 to $1,391.50 an ounce.

In an attempt to spread wings in the Asia-Pacific region, RBC acquired Fortis Wealth Management Hong Kong Ltd., a wholly owned subsidiary of Fortis Bank.

Information technology services provider MacDonald Dettwiler said it would sell its property information business to private equity firm TPG Capital for C$850 million. The company also announced a dividend policy of $1 per share from operating cash to be paid in two equal installments on or about March 31 and September 30, commencing in 2011.

Copper miner Equinox Minerals swung to profit in third quarter, reporting net income of $71.15 thousand or $0.10 per share compared to a loss of $56.27 thousand or $0.08 per share in the same quarter last year. Copper production grew 37% to 38,445 tonnes or 84.76 million pounds from the prior-year quarter, the company said.

Food products company Dominion Citrus Income Fund slipped into the red, reporting third-quarter net loss of C$487 thousand or C$0.02 per share, compared to income of C$1.88 million or C$0.09 per share in the same quarter last year.

Residential real-estate services provider Brookfield Real Estate Services Fundposted decline in third-quarter profit at C$2.02 million or C$0.21 per unit from C$2.23 million or C$0.23 per unit prior year. The Fund declared a cash distribution of $0.117 per unit for the month of November 2010

Asset management company Dundee Corp. acquired 440,860 flow-through common shares of Sabina Gold & Silver Corp. at a price of $5.35 per share, in a brokered and non-brokered private placement.

Stainless steel company Tree Island Wire Income Fund reported a wider third quarter loss of C$4.9 million or C$0.21 per share for the quarter, compared to a net loss of C$1.6 million or C$0.07 per share in the year-ago period. The year-ago period results included a non- recurring gain on the sale of surplus land of $5.4 million.

Aerospace industry products maker General Donlee Income Fund reported higher third quarter profit of C$1.4 million or C$0.262 per unit compared to C$0.2 million or C$0.040 per unit in the year-ago period.

Oil and gas industry services provider Wenzel Downhole Tools turned to profit, reporting third quarter net earnings of C$1.58 million or C$0.05 per share, compared to a loss of C$843 thousand or C$0.03 per share last year.

Oilfield services contractor Ensign Energy Services reported an 82% growth in profit for the third quarter. Third quarter net income was $30.7 million $0.20 per share, up from $16.9 million $0.11 per share last year.

GPS products company Hemisphere GPS reported a narrower third quarter net loss of $1.97 million or $0.04 per share compared to net loss of $3.76 million or $0.07 per share in the year-ago period, with the agriculture segment helping total revenue grow by 46%.

Philippines based mineral exploration company Crazy Horse Resources said it has received the conditional approval of the TSX Venture Exchange to the complete the acquisition of a 100% interest in the Taysan Copper-Gold Porphyry Project in Philippines consisting of two exploration permits and three exploration permit applications.

In economic news, the Canada Mortgage and Housing Corporation said the seasonally adjusted annual rate of housing starts fell to 168,000 units in October, down from the revised185,000 units. Economists were expecting housing starts to decline to 180,000 units in October.

WORLD MARKET UPDATES

2010-11-05T19:00:00.000+01:00

US Market Updates

Stocks Little Changed In Mid-Morning Trading

Stocks are showing a lack of direction in mid-morning trading on Friday, even in the wake of a jobs report that showed an increase in October payrolls that doubled expectations. Yesterday's run-up in stocks lifted the major averages to their best levels since 2008, leading some market participants to believe that today's upbeat jobs number is already be priced into stocks.

The major averages have all seen choppy movement in recent dealing, remaining near the flat line. The Dow is currently up 5.26 points or 0.1 percent at 11,440.10, the Nasdaqis up 1.25 points or 0.1 percent at 2,578.59 and the S&P 500 is up 4.56 points or 0.4 percent at 1,225.62.

Earlier this morning, the Labor Department reported that October payrolls rose by 151,000, well above the 60,000 increase forecast by economists. The unemployment rate remained at 9.6 percent for the third month in a row, in-line with expectations.

"October's U.S. payrolls report is stronger than expected and, at the margin, reduces the risk we will actually see the unemployment rate edge higher over the coming months," said Paul Ashworth, Senior U.S. Economist at Capital Economics.

"Nevertheless, there is still little prospect of any meaningful decline in that unemployment rate, which remains perilously close to 10 percent," he added.

In the early afternoon, the markets will be presented with data on pending home sales for September from the National Association of Realtors. Economists expect the pending home sales index to rise by 2.5 percent after registering an unexpected 4.3 percent increase in August.

At 3:00 p.m. ET, the Federal Reserve will release its report on consumer credit for September. Economists project consumer credit to contract by $3.5 billion for the month.

As earnings season continues to wind down, Beazer Homes Inc. (BZH) posted a loss of $0.81 per share for the fourth quarter. Quarterly revenues fell to $274.77 million from $365.59 million in the previous year but topped forecasts for $255.29 million for the quarter.

After the market closed for trading on Thursday, Dow component Kraft Foods Inc.(KFT) said that its third quarter profit fell 8.5 percent from last year but still edged out estimates, while revenues jumped by 26 percent but missed forecasts.

Coffee retailer Starbucks Corp. (SBUX) reported a fourth-quarter profit that surged from a year ago, helped by strong growth in comparable store sales. Both earnings and revenues for the quarter came in ahead of Street estimates.

Sector News

Banking stocks are extending their rally for the third straight day, lifting the KBW Bank Index up by 4.1 percent to its best intraday level in three months.

Significant strength is also visible among housing and commercial real estate stocks. The Philadelphia Housing Sector Index and the Morgan Stanley REIT Index are up by 3 percent and 1.5 percent, respectively.

The housing index has jumped to a three-month intraday high, while the real estate index has risen to its highest intraday level in two years.

Meanwhile, weakness among tobacco, wireless and software stocks is offsetting some of the aforementioned upside. The NYSE Arca Tobacco Index is down by 1 percent, pulling back off of the all-time high reached at the close of Thursday's session.

Stocks Driven By Analyst Comments

Coeur d'Alene Mines (CDE) is trading higher after being upgraded at RBC Capital Markets from Underperform to Sector Perform. The broker also raised its price target on the stock from $22 to $27. The stock is up by 5.7 percent, setting a fresh eleven-month intraday high.

MetroPCS (PCS) is also on the upside after analysts at Oppenheimer boosted their rating on the stock from Perform to Outperform. Shares are currently up by 4.5 percent, rising to their best intraday level since August of 2009.

On the other hand, RF Micro Device (RFMD) is trading lower after Davenport dropped its rating on the stock from a firm Buy to Neutral. The stock is down by 1.5 percent, slipping from its best closing price since March of 2007.

Other Markets

Overseas, stock markets in the Asia-Pacific region ended notably higher on Friday. Japan's benchmark Nikkei 225 Index gained 2.9 percent, while Hong Kong's Hang Seng Index advanced by 1.4 percent.

Meanwhile, the major European markets are seeing modest upside. The U.K.'s FTSE 100 Index is up by 0.1 percent, while the German DAX Index and the French CAC 40Index are both up by 0.3 percent.

In the bond markets, treasuries are trading modestly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.512 percent, posting a gain of 2.8 basis points.

European Market Updates

European Markets Lose Early Gains

The European markets are trading in negative territory in afternoon trading Friday, reversing early gains, ahead of the U.S. employment report for October. After welcoming firm cues from Asian economies in the early trade, which rallied on positive sentiment unleashed by the Quantitative Easing in the U.S., investors became wary of the employment numbers from the world's largest economy.

Crude for December delivery is trading higher by $0.10 at $86.59 per barrel and gold is advancing $0.5 to $1383.6 an ounce.

Among major economic reports, the Office for National Statistics said U.K. output price inflation grew to 4% in October from a downwardly revised 3.8% in September. Economists had forecast output price inflation to log 4.4%. On a monthly basis, output prices rose 0.6% in October after stagnating in September.

Eurozone retail sales fell 0.2% month-on-month in September, following a revised 0.2% drop in August, Eurostat said. Economists had forecast a 0.1% increase.

Germany's overall construction activity increased in October from the previous month, a report by the Markit Economics showed. The seasonally adjusted construction purchasing managers' index rose to 50.7 in October from 49.9 in the previous month. The latest reading was highest since February 2008 and above the long-run series average of 44.9.

The UK's FTSE 100 opened at 5,863 and was in the green in early part of the session, but erased those gains later.

The German DAX opened slightly higher at 6,744 and witnessed some choppy trading that saw the index move across either side of the unchanged line.

The French CAC 40 opened higher at 3,928 and followed its counterparts in the other two economies by reversing those gains later.

The FTSE 100 is currently losing 0.11%, compared to the DAX slipping 0.03% and theCAC 40 shedding 0.14%.

In London, Defence and aerospace contractor Cobham is declining 3.7%. Cobham said Thursday that it is experiencing delays and deferrals in the award of certain U.S. defense and security contracts. Asset manager Man Group, which Thursday reported a fall in first-half profit, is sliding 3.5%.

Among lenders, Royal Bank of Scotland is slipping 3.5% after forecasting a challenging fourth quarter. HSBC is dropping 1.3%. The company said third-quarter profit before tax was well ahead of the previous year, reflecting lower loan impairment charges. Lloyds Banking Group and Barclays are down 0.7% each.

Among miners, Kazakhmys is down 2.2%. BHP Billiton, Anglo American, Xstrataand Antofagasta are moderately down. Vedanta Resources and Eurasian Natural Resources are notably higher. Smith & Nephew, which reported a higher profit in the third quarter, is advancing 6.4%.

In Germany, carmaker Daimler is declining 1.6%. However, BMW and truckmaker MAN are rising 0.6% each. Sports goods giant Adidas is down 1.5%. Deutsche bank is slightly down, while Commerzbank is adding 0.4%.

Lenders are witnessing downside in France. Credit Agricole is losing 3.7% andSociete Generale is dropping 2.3%. BNP Paribas and Natixis are losing 1.3% and 0.9%, respectively.

Machinery & equipment maker Alstom is losing 3.4% and cement giant Lagarge is dropping 2.6%.

Carmaker Renault is up 1.8% and Peugeot is slightly up. Hotel group Accor and steel giant ArcelorMittal are seeing notable upside.

Asia Market Updates

Asian Markets End In Positive Territory, Lifted By Wall Street Cues

Asian markets open for trading on Friday, the last day of the trading week, ended in positive territory, taking cues from Wall Street where the major averages ended sharply higher gaining more than 1.5% to the highest levels since 2008 led by commodities and weaker dollar. Excluding South Korea which ended in negative territory and the markets in India and Singapore, which were closed for a holiday, the other markets ended with modest gains led by commodities amid optimism about global economic recovery,

In Australia, the benchmark S&P/ASX200 Index surged up 55.30 points, or 1.17%, and closed at 4,801 points, while the All-Ordinaries Index ended at 4,873, representing a gain of 55.40 points, or 1.15%.

Resource related stocks led the gains in the market on higher commodity prices in the international market triggered by weak US dollar. BHP Billiton climbed 3.55%, Rio Tinto surgd up 4.81%, Fortescue Metals advanced 1.94%, Gindalbie Metals gained 2.75%, Iluka Resources was up by 3.95%, Macarthur Coal rose 2.65%, Mincor Resoruces advanced 3.01%, and Oz Minerals was higher by 4.85%. Murchison Metals, however, bucked the positive trend and plunged 8.33%.

Oil related stocks also ended in the green on sharp gains in crude oil prices in the international market. Woodside Petroleum advanced 1.92%, Santos Ltd gained 1.79%, ROC Oil Ltd added 1.15%, Origin Energy gained 1.42% and Oil Search Ltd rose 2.15%.

Mixed trading was witnessed among financial stocks on profit taking. ANZ Bank slipped 1.03%, Commonwealth Bank of Australia shed 0.53%, and National Australia Bankedged down 0.12%. However, Westpac Banking Corp. bucked the losing trend and ended in positive territory with a gain of 0.04%. Investment banker Macquarie Groupended in positive territory with a sharp gain of 3.80%.

In Japan, the benchmark Nikkei 225 Index rose 267.21 points, or 2.9%, to 9625.99..while the broader Topix index of all First Section issues also rose 18.65 points, or 2.3%, to 834.98

On the economic front, the Bank of Japan left its key interest rate unchanged as expected. The Policy Board voted to hold the uncollateralized overnight call rate at around 0 to 0.1%. The board also decided to buy Japan real estate investment trusts that are rated AA or higher and for which there are no concerns regarding their creditworthiness. Also, it will buy exchange-traded funds whose prices track the Tokyo Stock Price Index or the Nikkei 225 Stock Average.

Taking positive cues from Wall Street where the major averages ended at a new high since 2008 on quantitative easing measures and optimism about sustaining economic recovery, almost all the stocks in the Nikkei 225 index surged higher and ended with moderate gains.

Resource stocks led the rally on weaker US dollar and higher commodity prices. Automotive stocks, exporters and banks also ended in positive territory.

As many as 217 of the total 225 stocks in Nikkei 225 index ended in positive territory. The market in India was closed for regular trading on the eve of Diwali festival.

Among the other markets in the region, China's Shanghai Composite Index gained 42.56 points, or 1.38% to close at 3,129, Hong Kong's Hang Seng Index surged up 341.19 points, or 1.39%, to 24,877, Jakarta Composite Index in Indonesia advanced 26.26 points, or 0.72%, to close at 3,655, and Taiwan Weighted Index was higher by 91.49 points or 1.09% to close at 8,449. However, the Kospi Index in South Korea bucked the overall trend and ended in negative territory with a modest loss of 3.54 points, or 0.18% at 1,939.

Forex Top Story

Dollar Steadies Versus Euro Ahead Of Jobs Report

The dollar was slightly stronger Friday morning, paring steep recent losses against the euro ahead of the US government's crucial monthly jobs report.

A dramatic decline to yearly lows for the dollar was brought on by the Federal Reserve's plan to bolster the economy with another $600 billion in asset purchases. The move was announced on Wednesday, but the buck had been falling since June as the Fed signaled its intentions.

The Labor Department will release its non-farm payroll report for October at 8.30 a.m. ET. Economists expect that the US economy added 60,000 new jobs during the month, after losing 95,000 jobs in the previous month. Economists, however, expect the unemployment rate to remain elevated at 9.6%.

The dollar improved to $1.4100 versus the euro, having touched a 10-month low of $1.4281 on Thursday.

Eurozone retail sales unexpectedly fell for a second consecutive month in September signaling that households in the currency block remain reluctant to increase their spending. According to data released by Eurostat on Friday, the volume of retail sales fell 0.2% month-on-month in September.

The buck was also steady versus the sterling, trading at $1.6230 after hitting $1.6298 -- its lowest since mid-January.
Versus the yen, the dollar barely budged near Y80.80. The dollar hit a 15-year low of 80.20 earlier in the week, but has managed to steady through the mid-term elections and Fed's QE announcement.

The buck edged slightly higher to C$1.0050 after coming withing a whisker of parity against its Canadian counterpart.
Canada's unemployment rate edged slightly lower in October, but the nation's economy generated only 3,000 new jobs, official data revealed Friday morning.

Statistics Canada said employment remained virtually unchanged for the second consecutive month, as full-time gains offset part-time losses. The unemployment rateedged down to 7.9% and has been around 8% for the past seven months, the agency noted.

In addition to the monthly jobs report from the US, traders will be treated to the National Association of Realtors Pending Home Sales for September. Economists expect that the pending home sales index rose 2.5% for the month, after registering an unexpected 4.3% month-over-month increase in the previous month.

At 3.00 p.m. ET, the Federal Reserve will release its report on consumer credit for September. Market analysts expect that consumer credit contracted by $3.5 billion for the month.

Canadian Market Reports

TSX May Pause After Big Rally

Toronto stocks are likely to open mixed Friday amid flat commodities prices and varied cues from the global equity markets. Traders might realign positions after a big rally in the previous session and ahead of the week end.

While positive jobs data from the U.S. might lift trader sentiment, profit taking at higher levels may weigh on the market.

On Thursday, the S&P/TSX Composite Index soared 207.68 points or 1.64% to 12,878.79, levels not seen since 2008. Earlier on 10th May 2010, the main index gathered a notable 255 points or 2.18% when the European Union announced a $1 trillion bailout package.

The price of crude oil edged up amid positive jobs data, with Crude for December adding $0.30 to $86.79 a barrel.

The price of gold paused for a breather after gaining $45 in the previous session. Gold for December edged down $1.30 to $1,381.80 an ounce.

In corporate news from Canada, Potash Corp.'s stock rating was raised to a "Buy"from "Hold" at Desjardins Securities, with a price target of C$175. Yesterday, the Canadian government blocked the BHP Billiton's $130 per share hostile takeover bid saying that the proposed transaction is not likely to provide a "net benefit" to the country.

Communication equipment maker JDS Uniphase reported first quarter net income of $44.8 million or $0.20 per share compared to net income of $9.0 million or $0.04 per share in the year ago quarter. Analysts were expecting the company to report earnings of $0.16 per share for the quarter.

Automotive systems company Magna International reported higher third-quarter net income of $241 million or $2.06 per share compared to $51 million or $0.45 per share in the same quarter last year. Analysts were expecting the company to report earnings of $1.51 per share. The company announced a two-for-one stock split of the company's outstanding common shares, which will be implemented by way of a stock dividend. For the full year 2010, the company now expects sales to be between $23.5 billion and $24.0 billion, up from the earlier estimates to be $22 billion and $23 billion.

Telecommunication products provider TELUS Corp. posted lower third quarter net income of C$247 million or C$0.77 per share, compared to C$280 million or C$0.88 per share in the year ago period. Excluding certain items, normalized net income for the quarter was C$0.89 per share, compared to C$0.84 per share in last year period. Analysts were expecting the company to report earnings of $0.75 per share. The company guides fiscal year 2010 earnings per share in a range of C$3.10 to C$3.30, compared to its previous forecast in the range of C$2.90 to C$3.30.

Global asset management company Brookfield Asset Management said it swung to profit in third-quarter, reporting net income of $112 million or $0.16 per share, compared to a loss of $417 million or $0.75 per share in the same quarter last year. The company declared a dividend of $0.13 per Class A common share.

International mineral properties explorer Iamgold Corp. reported lower third quarter net earnings of $40.8 million or $0.11 per share from $64.9 million or $0.18 per share in the third quarter of 2009. Adjusted net earnings were $50.0 million or $0.13 per share, down from adjusted net earnings of $51.7 million or $0.14 per share in the same quarter last year. Analysts were expecting the company to report earnings of $0.21 per share on revenues of $285.71 million for the quarter. Moreover, the company has revised its fiscal 2010 gold production guidance to a range of between 940,000 and 970,000 ounces from a range of between 980,000 and 1.01 million ounces.

Gold miner Centerra Gold reported lower third quarter net earnings of $17.7 million or $0.07 per share, compared to $20.2 million or $0.09 per share last year. As a result of the completion of the sale of the REN property early in the third quarter, the third quarter results include a gain of $34.9 million.

Oil and gas explorer Fairborne Energy reported a wider third quarter net loss of C$7.60 million or C$0.07 per share compared to C$497 thousand or C$0.01 per share last year.

Industrial equipment dealer Strongco Corp. swung to profit in third-quarter, reporting net income of C$0.7 million or C$0.07 per share, compared to a loss of C$0.5 million or C$0.05 per share in the same quarter last year.

In economic news, Statistics Canada said employment remained virtually unchanged for the second consecutive month in October, as full-time gains offset part-time losses. The unemployment rate edged down to 7.9% and has been around 8% for the past seven months, the agency noted. Economists were expecting job growth of 10,000, following a drop of 6,600 in September.

From the U.S., the Labor Department said the economy generated 151,000 jobs in September, much higher than economists' expectations for addition of 60,000 jobs. Private-sector payroll employment rose by 159,000 from September, as jobs were added in the health care and retail trade sectors. The unemployment rate stood still at 9.6%.

WORLD MARKET UPDATES

2010-11-04T18:34:00.000+01:00

US Market Updates

Stocks Sharply Higher In Mid-Morning Trading

Stocks are up by notable margins in mid-morning trading on Thursday, as traders are reacting to the Federal Reserve's plan to buy up $600 billion in bonds over the next eight months in order to stimulate the economy. The reaction has overshadowed a jobless claims report that showed the weekly figure moving back above the 450,000 mark.

The major averages have moved to the upside in recent trading, with the Dow and theS&P 500 rising to new highs for the session. The Dow is currently up 170.41 points or 1.5 percent at 11,385.54, the Nasdaq is up 32.05 points or 1.3 percent at 2,572.32 and the S&P 500 is up 15.96 points or 1.3 percent at 1,213.92.

Earlier, the Labor Department reported that initial jobless claims rose to 457,000 from the previous week's revised figure of 437,000, the lowest level in roughly three months. Economists had expected jobless claims to edge up to 445,000.

Commenting on the data, Peter Boockvar, equity strategist at Miller Tabak, said, "Because last week's drop in initial claims was not followed thru this week, the labor market still remains lackluster but hopefully averaging below 450k can be a new baseline."

"With the U.S. election now past and details from the Fed on the pace and amount of their asset purchases now out, we'll see how corporate America's hiring policies change and we hope of course for the better," Boockvar added.

In news out of the retail sector, October comparable store revenues largely increased by more than expected. Target (TGT) reported same-store sales that rose by 1.7 percent, while Macy's (M) said its same-store sales increased by 2.5 percent and Costco (COST) said same-store sales picked up by 6 percent.

As earnings season is winding down, French telecommunications equipment makerAlcatel-Lucent (ALU) reported third quarter profit and revenues that just edged out Wall Street expectations after currency translation, although its quarterly margins were of concern to analysts.

After the markets closed Wednesday, News Corp. (NWS) posted a first quarter profit of $0.30 per share, topping forecasts by six cents, while its quarterly revenues just beat analyst forecasts.

Telecommunications giant Qualcomm Inc. (QCOM) reported fourth quarter earnings and revenues that beat Wall Street projections while issuing first quarter and full year 2011 earnings guidance above expectations.

Sector News

Gold stocks are among the morning's strongest percentage gainers, with the NYSE Arca Gold Bugs Index up by 3.4 percent. The advance has lifted the index to an all-time intraday high.

The strength in the gold sector comes as the price of the precious metal has surged up by $38.30 or 2.9 percent to $1,375.90 an ounce.

Telecom, steel and oil service stocks are also posting strong gains, along with healthcare provider, housing and defense stocks.

Telecom stocks are being helped by Qualcomm's strong earnings report, driving the NYSE Arca Telecom Index up by 3.3 percent to a two-year intraday high.

Oil service stocks are helping to boost the Philadelphia Oil Service Sector Index up by 1.8 percent as the price of oil is up by $1.44 or 1.7 percent to $86.13 a barrel.

Stocks Driven By Analyst Comments

Real estate management firm Jones Lang Lasalle (JLL) is on the upside after being upgraded from Neutral to Buy by analysts at Goldman Sachs, which cited recent valuation as a reason for the ratings change. The stock has gained 5.2 percent, extending its recovery from the two-month closing low set in late October.

On the other hand, Career Education (CECO) is trading lower following a downgrade from Outperform to Sector Perform at RBC Capital Markets. The stock is posting a loss of 4 percent and is currently on pace for its worst close in two years.

Other Markets

Overseas, stock markets in the Asia-Pacific region ended notably higher on Thursday. Japan's benchmark Nikkei 225 Index gained 2.2 percent, while Hong Kong's Hang Seng Index advanced by 1.6 percent.

The major European markets are also seeing strong gains. The U.K.'s FTSE 100 Index is up by 1.9 percent, while the German DAX Index and the French CAC 40 Index are both up by 1.8 percent.

In the bond markets, treasuries are seeing sharp gains. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.476 percent, posting a loss of 14.3 basis points.

European Market Updates

Morning's gains consolidated

Market Movers
techMARK 1,752.56 +0.03%
FTSE 100 5,847.08 +1.71%
FTSE 250 11,004.22 +1.18%

Since the Bank of England’s noon announcement extinguished the small hopes of Britain joining the US in reviving its quantitative easing programme, leading shares have marked time.

Miners are still doing particularly well on hopes that the Fed’s stimulus measures will help sustain the global economic recovery. ENRC, Kazakhmys and Xstrata are all up 5% or more.

Mining giant BHP Billiton is enjoying a similar sort of boost, after yesterday evening’s announcement that the Canadian government has blocked the Anglo-Australian firm’s proposed $38.6bn takeover of fertiliser giant Potash.

Even the miners trail in the wake of Man Group, which is the pick of the blue-chips after the hedge fund manager reported its first quarter of positive institutional flows in more than two years.

Man saw funds under management in the three months to September 30 rise to $40.5bn (£25.2bn) from $38.5bn ‘due to strong investment performance and favourable FX movements.’

In other sectors, Anglo-Dutch household goods giant Unilever is higher after making some optimistic noises about future price trends. Underlying price growth in the third quarter was negative at -1.2%, though this represented an improvement on previous quarters, and the trend is expected to continue for the remainder of 2010. For the first nine months of 2010 price growth was negative at -2.1%.

Third quarter turnover at the Knorr soup and Dove soap group was up 13.2% at €11.55bn from €10.20bn a year earlier, ahead of some market forecasts of €11.35bn.

Supermarket Morrisons is missing out on the fun after a rise in sales failed to impress. In a brief statement, the company said total sales excluding fuel were up by 2.8%, with like-for-like sales up by 1.3%.

Rolls-Royce is also an exception after Aussie airline Qantas grounded its fleet of new Super Jumbo Airbuses after an engine exploded. Rolls made the engine in question.

Insurer RSA Group maintained top line momentum in the third quarter despite challenging trading conditions. Net written premiums in the first nine months of 2010 totalled £5.53bn, up 10% from £5.03bn the year before. With exchange rate fluctuations stripped out the rise was 7%.

Old Mutual's planned disposal of its US hedge fund Harbinger Capital is on track with completion expected at the end of this year, the South African life group reiterated today.

Telecoms giant BT is firmer after it said changes to its pension scheme rules will reduces the IAS [International Accounting Standards] 19 accounting valuation of the scheme's liabilities by around £2.9bn. The change has been prompted by the government’s decision to switch to using the Consumer Prices Index (CPI) rather than the Retail Prices Index (RPI) as the basis for determining the rate of inflation for the statutory revaluation and indexation of occupational pension rights.

Telecoms group Cable & Wireless Communications saw a dip in profits in the year to September 30 against what it described as a ‘mixed economic backdrop’ across the exotic regions it serves. Pre-tax profits fell to $204m from $223m even as revenues rose to $1.16m from $1.13m. The shares take a tumble on fears that the dividend may not be sustainable.

Engineering firm Invensys said it was reassured by the government’s commitment to invest in infrastructure such as the London Underground and the Crossrail project as it posted higher revenues, though profits were impacted by contract implementation costs. In the half year to September 30, pre-tax profits fell to £75m from £88m over the same period the previous year as revenues climbed to £1.16bn from £1.07bn.

News Corporation’s attempt to take complete ownership of satellite broadcaster BSkyBsuffered a setback after Business Secretary Vince Cable referred it to industry regulator Ofcom to decide if it is against the public interest.

In the FTSE 250, oil and gas group Melrose Resources is strong after it announced its first production from gas fields off the Bulgarian coast. Sector peer Kenmare Resources is flavour of the day after Bank of America Merrill Lynch initiated coverage of the stock with a “buy” recommendation.

No-frills airline easyJet said it carried 4.6m passengers in October, up 8.6% from the same period last year. The October load factor increased to 88.2% from 86.8% in 2009, making 87.1% for the rolling 12 months.

Meggitt, the maker of components for planes and other equipment, expects the recent defence review to have a ‘minimal impact’ on 2011 revenues.

First quarter like-for-like sales at pub chain JD Wetherspoon increased 1.6% while total sales in the period rose 7.3%.

International Hotel Group Millennium & Copthorne nearly doubled profits in the third quarter as it took advantage of improved economic conditions to lift room rates.

Shares in Tate & Lyle sweetened after the food ingredients company more than doubled profits on sales that were boosted by higher corn prices. Pre-tax profits in the six months to September 30 climbed to £104m from £45m on sales that rose to £1.35bn from £1.3bn.

Speciality pharmaceuticals developer BTG reported an interim operating profit even though lower milestone payments meant that revenues fell in the six months to September 2010.

Shares in telecom equipment tester Spirent moved up towards a 12-month high as it reported trading since July has exceeded its expectations.

Housebuilders are in demand after house prices staged a surprise rebound in October according to the latest monthly figures from mortgage lender Halifax, though the longer-term trend remains downwards. Taylor Wimpey, Barratt Developments andPersimmon all charge ahead, dwarfing the gain achieved by sector peer, Redrow , which had its annual general meeting today.

Redrow chairman Steve Morgan said: “"Like for like private home sales in the financial year to date are some 9% up on the same period last year at £133m, which has been achieved on 6% fewer reservations.”

Shares in Charter International fell sharply after the industrial engineer announced the full year earnings outcome will be at the lower end of analysts’ forecasts.

Waste management firm Shanks revealed a 2% increase in interim pre-tax profit despite difficult trading conditions.

Asia Market Updates

Indian Market Rallies After Fed Decision

The Indian market rose to a fresh 34-month high on Thursday, as the U.S. Federal Reserve' s decision to embark on a second round of quantitative easing, by buying $600 billion in government debt over eight months, fueled demand for riskier assets. Strong listing gains from Coal India IPO and data showing easing food inflation also boosted investor sentiment.

Consistent buying in heavyweight stocks like SBI, Tata Motors, ONGC, Reliance Industries, Sterlite Industries and Hindalco lifted the 30-share BSE Sensex up 428 points or 2.09% to a 52-week high of 20,894, about 300 points below its all-time high of 21,206 recorded in January 2008. The broader Nifty rose by 121 points or 1.97% to 6,282.

Mid-cap and small-cap stocks, however, posted modest gains, underperforming the frontline stocks. The BSE mid-cap index rose 0.83%, while the small-cap index added 0.66%. On the BSE, gaining shares outpaced declining ones by 1545 to 1393 shares. Sector-wise, financials, IT, metals, auto and energy stocks were among the prominent gainers.

The market will remain closed tomorrow to celebrate the Hindu festival of Diwali. However, there will be a special one hour "Muhurat' trading session in the evening between 6 pm and 7 pm IST, to mark the beginning of the Samavat Year 2067.

Coal India rose nearly 40% to Rs.341.90 on its debut compared to its initial public offering price of Rs.245 per share. Other mining-related stocks like Ashapura Minechem (up 2.50%), GMDC (up 19%) and NMDC (up 2.76%) also rallied.

Tata Teleservices closed up half a percent after it launched 3G services in Maharashtra. Confidence Petroleum hit the 5% upper circuit limit after it tied up with a Chinese company to develop gas meters and energy meters business in India.

GTL Infrastructure rose 2.34% on reports that it will raise up to Rs 3,500 crore by issuing fresh shares and selling treasury stock. Shares of Aurobindo Pharmaadvanced 2.44% after the drug maker reported a 92% jump in consolidated net profit for the quarter ended September. Engineers India slipped 0.23% after reporting a modest 14% rise in quarterly net profit.

On the macro economic front, India's annual food inflation for the week ended October 23 fell to 12.85% from 13.75% in the previous week, the third consecutive week of decline, as prices of vegetables like potato and onion eased due to improved supplies, official data released today showed. The fuel price inflation for the week also moderated to 10.67% from 11.25% in the previous week.

In other economy-related news, Chief Economic Adviser to the Finance Ministry Kaushik Basu said today that current capital inflows into the country are large but still not at a level that the government should be worried about.

Elsewhere, the other Asian markets climbed on Thursday, lifting the MSCI Asia Pacificindex up by about 1.7% to a more than two-year high, as the much-anticipated U.S. Federal Reserve's announcement on quantitative easing suggested that capital inflows into emerging markets will likely continue.

Crude futures for December delivery rose sharply to near $86 a barrel in late Asian trading Thursday, as a bullish inventory report, the Fed's pledge to purchase $600 billion in long-term bonds and the subsequent weakening in the dollar boosted the commodity's appeal as an alternate investment.

Forex Top Story

Dollar Falls Further After QE2

If, as some critics charge, the Federal Reserve is hoping to debase the dollar, the early returns on its latest shot of stimulus are in: the move is working.

The dollar came under heavy pressure versus most major currencies Thursday morning, dropping to a 10-month low against the euro and coming within a hair of parity against its Canadian counterpart.

Many analysts point out that a number of nations are in race to weaken their currencies in order to give exporters a competitive advantage.

Yesterday, the U.S. Federal Reserve revealed that it intends to expand its asset purchase program by $600 billion. As was widely expected, the Fed also decided to leave interest rates unchanged at a record low.

The dollar dropped to $1.4263 versus the euro for the first time since mid-January, and has fallen near 25 cents from a 4-year peak set back in June. The European Central Bank is expected to keep its key interest rate on hold at one percent this morning.

The dollar also extended its 10-month low versus the sterling, touching $1.6205. TheBank of England kept its kept interest rate unchanged at 0.5 percent.

On the flip side, the dollar has fallen no further versus the yen, even after the Fed warmed up the printing presses. The buck was steady near Y81, having touched a 15-year low near 80.20 earlier this week.

The Labor Department will release its customary report on weekly jobless claims for the week ended October 30 at 8.30 a.m. ET. Economists expect that jobless claims come in at 445,000 for the week, slightly higher than 434,000 reported for the previous week.

The data is considered a key prelude to tomorrow's pivotal monthly jobs report.

The Labor Department will also release a preliminary report on third quarter non-farm productivity and unit labor costs. Economists expect productivity growth of 1% for the quarter.

Canadian Market Reports

TSX Logs Triple Digit Gain On Fed QE2

Canadian investors reacted positively to the latest move by the Federal Reserve to pump in more money into US economy. Buying was seen across sectors Thursday morning, with commodities stocks turning in particularly strong performances.

The Federal Reserve said late Wednesday that it would buy the bonds at a rate of about $75 billion a month through the middle of next year. Meanwhile, the ECB today held steady on rates to help economic growth and the Bank of England kept its emergency stimulus program unchanged at $324 billion, and its key rates at 0.5%, as widely expected.

The S&P/TSX Composite Index surged 232.29 points or 1.83% to 12,903.41, its fresh 2-year peak.

The price of crude oil advanced Thursday morning as traders hoped for faster economic growth after the Federal Reserve announced plans to inject $600 billion into the economy. Crude for December moved up $1.54 to $86.23 a barrel.

In the oil patch, Crew Energy and Petrobakken Energy were up around 3% each.

Integrated oil firm Suncor Energy surged over 8% after reporting improved third quarter net earnings of C$1.022 billion or C$0.65 per share compared to C$929 million or C$0.69 per share a year ago.

Independent energy company Canadian Natural Resources added over 3%. The company reported lower third quarter net earnings of C$580 million or C$0.53 per share, compared to C$658 million or C$0.61 per share last year. The company said that prior-year per common share amounts have been restated to reflect a two-for-one common share split in May 2010. The company declared a quarterly cash dividend of C$0.075 per share.

The price of gold was heading toward a record high as the U.S. dollar plummeted versus a basket of currencies following the Federal Reserve's monetary easing measures. Goldfor December surged $41.40 to $1,379.00 an ounce.

Among gold stocks, Alamos Gold and Kirkland Lake Gold rose nearly 7% each.

International gold miner Yamana Gold Inc. rose close to 6% after reporting third-quarter adjusted net earnings of $118.9 million, or $0.16 per share. Analysts were expecting the company to report earnings of $0.14 per share for the quarter.

Kinross Gold swung to profit in third quarter, reporting net earnings of $346.9 million or $0.44 per share compared with net loss of $21.5 million or $0.03 per share in a year ago period. Adjusted net earnings were $123.6 million, or $0.16 per share, up from $1.7 million or breakeven per share in the year ago quarter. Analysts were expecting the company to report earnings of $0.16 per share. The stock was up nearly 2%.

In the base-metals space, Equinox Minerals added nearly 8%. Inmet Mining andLundin Mining gained over 4% each.

In the Financial sector, Bank of Montreal, Canadian Western Bank and RBC rose over 1% each.

Insurer Manulife Financial soared over 8%. The company reported a much wider third quarter net loss of C$947 million, or C$0.55 per share compared with a loss of C$172 million, or C$0.12 per share in the year-before period. Nonetheless, net loss came in much narrower-than consensus estimates for a loss of C$0.73 per share.

Peer insurer Sun Life Financial said it swung to profit in third quarter, reporting net income of C$453 million or C$0.79 per share, compared to a loss of C$140 million or C$0.25 per share in a year ago. The company announced a quarterly dividend of C$0.36 per common share. The stock gained nearly 3%.

Communications services provider BCE Inc. moved up over 1%. The company reported lower third quarter net earnings of C$528 million or C$0.70 per share compared to C$558 million or C$0.72 per share in the year ago quarter. Analysts were expecting the company to report earnings of $0.77 per share in the quarter.

Meanwhile, Potash Corp. slipped over 4% after the Canadian government blocked the BHP's $130 per share takeover bid saying that the proposed transaction is not likely to provide a "net benefit" to the country.

Multinational specialty pharmaceuticals company Valeant Pharmaceuticals shed over 3% after reporting third quarter net loss of $207.88 million or $1.27 per share, compared to profit of $40.36 million or $0.25 per share last year. The company also announced that its board has approved $1.5 billion securities repurchase program and said that it may buy its convertible notes, senior notes and/or common shares.

In economic news from south of the border, the U.S. Commerce Department said that initial jobless claims rose to 457,000 in the week ended October 30 from the previous week's revised figure of 437,000. Economists had expected jobless claims to edge up to 445,000 from the 434,000 originally reported for the previous week.

E-commerce will expand Africa's trade horizon'

2010-11-04T17:08:00.001+01:00

E-commerce, if given the right framework and infrastructure, has the potential of aiding African countries and expanding the horizons of their trading to a competitive level in the global village.

This was the consensus on Tuesday at the Kuramo Conference, an international colloquium on trade, law, and economic development held in Lagos.

The conference participants agreed that with the right framework and strategy, Africa can make a difference in her economic and trade climate if she fully explored the benefits of e-commerce.

E-commerce is the buying and selling of products or services over the Internet and other modes of computer networks.

Enver Daniels, the chief state legal adviser, South Africa, said e-commerce has the potential to expand horizons of the African market.

Tackle infrastructural challenge

However, for e-commerce to be successful, African countries must address the attendant infrastructural challenges. Mr. Daniels said countries must take up the responsibility of developing infrastructure locally, for trade between countries to be successful.

"For instance, if you order for an item or items online from Ghana, Ghana must have the right infrastructure in place that would aid the movement of such orders to their destination, within the shortest time, and Nigeria must in turn have the appropriate infrastructure to receive such goods," he said.

He added that countries must also develop their human capital, adding that one of the major reasons militating against e-commerce success is the lack of understanding of its attendant benefits.

Governor Babatunde Fashola of Lagos State said legislation must also remove barriers to trade.

"A new legal order is now needed. There is the need to examine the existing legal order for trade and commerce among nations," Mr. Fashola said.

He also challenged participants to set the agenda "here and now, as regards the mechanism for a fair global regime."

Emmanuel Ayoola, a retired Supreme Court justice and the conference chairman, said it was a platform for the restoration of a nation, and not another talk shop.

"It is a forum to define the path of a new national vision, deploying application of knowledge and experience drawn from multifarious disciplines as tools.

"It is the platform to launch the new order that is shaped by right thinking, right values, right ideas and palpable commitment," Mr. Ayoola said
.

Nigeria:Profit returns as banks cut cost

2010-11-04T17:03:00.000+01:00

In the midst of dwindling earnings, banks are cutting down on their cost of doing business in order to remain profitable. As a result, despite recording significant drop in their earnings, many banks still managed to post significant rise in profit as seen in recent results.

For most banks, while gross earnings dropped, profit before tax rose due to what analysts at Afrinvest, a financial research firm, refers to in Zenith Bank's case as "improvement across the bank's key efficiency and operating ratios." Despite a 13.6 per cent drop in gross earnings, the institution posted a profit before tax of 196.3 per cent.

In its update for the bank's third quarter result released on October 27, Afrinvest noted that "continuous improvement across the bank's key efficiency and operating ratios has fuelled this performance even as top-line growth continues to come under intense pressure." A similar scenario played out in First City Monument Bank (FCMB) as gross earnings dropped by 19.02 per cent from N55.02 billion to N44.55 billion. Interest expense however when down from N21.8 billion to N16.7 billion while profit before tax rose by nearly 2000 per cent from N298.13 million to over N6.1 billion.

For Sterling Bank, while gross earnings declined by 13 per cent from N26.6 billion in September 2009 to N23.1 billion in the corresponding period in 2010, profit after tax rose to N5.3 billion from a loss of N6.2 billion last year.

The bank attributes this significant increase in profit to efficiency and cutting down on its cost of doing business. Thus, funding costs declined 38 per cent to N8.1 billion from N13.0 billion. "Sterling Bank emphasis on efficiency and profitability has been the cornerstone of its performance in the third quarter. Discretionary costs have been kept in tight check and new processes brought on stream at the beginning of the year continue to show expected results", said the bank's executive director, Lanre Adesanya.

Common experience across board

Access Bank's third quarter results showed that gross earnings declined by 15.2 per cent from N91.93 billion to N77.95 billion. From a loss position of N10.64 billion in the third quarter of last year to a profit before tax of N14.06 billion this year.

Aigboje Aig-Imoukhuede, Access bank group managing director, said the bank has achieved significant growth in its deposit base with a 24 per cent increase in customer deposits quarter on quarter as it continues to benefit from the continuing success and effectiveness of its value chain strategy. "With our focus on maintaining a high quality service-centered business model supported by a robust enterprise risk management framework, the bank is well positioned to deliver a strong full year performance in line with the positive results achieved year to date," Mr Aig-Imoukhuded said.

First Bank also posted a gross earnings of N177.1billion, an 11 per cent drop over the N197.9 billion posted last year.

However, profit before tax rose to N40.7 billion from a loss of N6.6 billion posted last year. Guaranty Trust Bank similarly showed an 11.9 per cent drop in third quarter earnings from N136.1 billion to N119.8 billion, while pretax profit rose significantly by 82.1 per cent from N21.4 billion to N39 billion.

WORLD MARKET UPDATES

2010-11-03T18:25:00.000+01:00

US Market Updates

Stocks Little Changed Despite Upbeat Economic Data

Stocks are little changed in mid-morning trading on Wednesday, as traders are awaiting the Federal Reserve's commentary on a possible second round of quantitative easing, standing pat even after another upbeat set of economic reports. Service sector activity, factory goods orders and private sector employment data all came in higher than economists had anticipated.

The major averages have seen choppy movement in recent dealing, remaining near the flat line. While the Nasdaq is down 0.39 points or less than 0.1 percent at 2,533.13, theDow is up 19.75 points or 0.2 percent at 11,208.47 and the S&P 500 is up 1.71 points or 0.1 percent at 1,195.28.

A short time ago, the Institute for Supply Management said its non-manufacturing index rose to 54.3 in October from 53.2 in September, with a reading above 50 indicating growth in the service sector. The index had been expected to show a more modest increase to a reading of 53.4.

The Commerce Department also released a separate report showing that orders for manufactured goods increased by 2.1 percent in September after coming in nearly unchanged in August. Economists had expected orders to increase by 1.7 percent compared to the 0.5 percent decrease originally reported for the previous month.

Earlier, Automatic Data Processing, Inc. (ADP) reported that private-sector employment increased by 43,000 jobs in October following a revised decrease of 2,000 jobs in September. Economists had expected employment to increase by 23,000 jobs compared to the loss of 39,000 jobs originally reported for the previous month.

The markets have largely shrugged off the influx of data, however, as traders are looking ahead to the Fed's statement regarding quantitative easing due for release at 2:15 p.m. ET.

In earnings news, Aetna (AET) topped both third quarter profit and revenue expectations, despite a $20 million drop in revenues.

CVS Caremark (CVS) reported a third quarter profit of $0.59 per share, six cents short of analyst forecasts, while the company's sales also failed to meet expectations after a 3 percent decline.

Pulte Homes (PHM) posted a much more substantial third quarter loss compared to the same period last year, while on an adjusted basis, the loss was slimmer than expected on Wall Street. Revenues were also able to beat analyst projections.

After the markets closed in the previous session, video-game publisher Electronic Arts(ERTS) said that its second quarter loss narrowed from last year, as lower costs and expenses offset a sharp drop in revenue. The company's adjusted earnings also came in better than expected.

Sector News

While most of the major sectors are showing only modest moves, some strength is visible among banking stocks, lifting the KBW Bank Index up 0.9 percent off of the two-month closing low it set at the close of trading on Tuesday.

Airline and electronic storage stocks are also elevated, while weakness among natural gas, housing and telecommunication stocks is offsetting some of those gains. The NYSE Arca Natural Gas Index is 0.9 percent off of the fresh six-month closing high set yesterday.

Stocks Driven By Analyst Comments

MCG Capital (MCGC) is trading higher after being upgraded at BB&T Capital Markets from Hold to Buy. Shares are up by 3.6 percent after reaching their best intraday level in just over six months in earlier trading.

Meanwhile, IT service provider CACI International (CACI) is under pressure after Stifel Nicolaus downgraded shares from Buy to Hold. The stock is posting a loss of 2.3 percent, falling from its best closing price in over seven months.

Other Markets

Overseas, stock markets in the Asia-Pacific region ended mostly higher on Wednesday. Hong Kong's Hang Seng Index gained 2 percent and India's BSE 30 Index moved up by 0.6 percent. The Japanese markets were closed on the day.

Meanwhile, the major European markets are little changed. The U.K.'s FTSE 100 Index and the German DAX Index are nearly flat, while the French CAC 40 Index is up by 0.3 percent.

In the bond markets, treasuries are showing modest gains. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.545 percent, posting a loss of 4.9 basis points.

European Market Updates

Cautious progress

European markets have mostly built on early gains but with the US Federal Reserve due to make its pronouncement on quantitative easing later today investors are unprepared to go too far out on a limb.

The CAC in Paris is up 20 at 3,886. The Dax is 19 better at 6,673 but the IBEX in Madrid has shed 20 points at 10.742.

French bank SocGen's third-quarter net profit more than doubled to €896m on revenues up 5.5% to €6.3bn. Good growth in international retail banking, investment banking and a 39% reduction in provisions to €918m drove the improvement.

German car maker BMW also published bumper third-quarter earnings and increased its forecast for the year as well. Earnings climbed €874m from €78m this time last year. Revenues rose 36% to €15.9bn.

"We are currently aiming to achieve an EBIT margin of above 7% as a result of the strong sales volume performance in the automobile segment in 2010," said chairman Norbert Reithofer. The previous margin forecast was 5%.

Elsewhere in the car sector Fiat accelerates after UBS issued a buy note on the Italian firm. The switch from a neutral stance on the stock was prompted by a belief that “the market may be underestimating the value in Fiat post de-merger.”

Brewing giant Anheuser-Busch InBev saw its shares go flat after it said underlying earnings before interest, tax, depreciation and amortisation in the third quarter was $3.53bn, up 9.1% on a like for like basis compared to last year; the market had been expecting a 9.6% increase.

Switching focus to the Nordic countries, colostomy bag and catheter maker Coloplastannounced net income of 368m kroner for its fourth quarter, topping market expectations of 345m kroner.

Swedish oil explorer Lundin Petroleum also topped market forecasts with its quarterly figures; net income was $26.6m, versus expectations of $21.8m.

Norwegian oil and gas firm Statoil fell back, however, after slicing its full-year production target. The news overshadowed an 87% year on year increase in net profits in the third quarter.

Lloyds Banking has appointed Antonio Horta-Osorio, the head of Spanish bankSantander's UK business, as its new chief executive replacing Eric Daniels who is stepping down.

CAC 40 - Risers
Societe Generale (GLE) € 43.97 +4.43%
Lafarge (LG) € 43.12 +4.02%
ArcelorMittal SA (MT) € 24.66 +2.47%
ST Microelectronics (STM) € 6.44 +2.06%
BNP Paribas (BNP) € 53.27 +2.03%
LVMH (MC) € 117.00 +2.01%
Bouygues (EN) € 32.26 +1.72%
Saint Gobain (SGO) € 34.76 +1.46%
Credit Agricole (ACA) € 12.13 +1.34%
AXA (CS) € 13.34 +1.06%

CAC 40 - Fallers
Cap Gemini (CAP) € 36.80 -1.50%
GDF Suez (GSZ) € 28.32 -1.48%
Unibail-Rodamco (UL) € 147.80 -1.40%
Carrefour (CA) € 38.38 -0.90%
Vallourec (VK) € 76.01 -0.89%
Lagardere SCA (MMB) € 31.73 -0.87%
EDF (EDF) € 32.43 -0.72%
EADS (EAD) € 19.17 -0.60%
Schneider Electric (SU) € 104.10 -0.48%
Suez Environnement Company (SEV) € 14.10 -0.42%

Asia Market Updates

Indian Market Rises Ahead Of Fed Meet

The Indian market ended Wednesday's range-bound session off the day's high, with metal, auto and financial stocks leading the gains. Second-line stocks also received good support, as investors eagerly awaited the outcome of a key U.S. Fed's two-day rate-setting meeting for clues on fresh foreign fund inflows into emerging markets.

With heavyweights such as ITC, BHEL, Hindalco, Tata Steel, HDFC, SBI, ACC, Tata Motors and Sterlite gaining between 1% and 4%, the 30-share BSE Sensex ended up 120 points or 0.59% at 20,466, while the broader Nifty rose by 41 points or 0.68% to 6,160.

The BSE mid-cap and small-cap indexes gained 0.60% and 0.68%, respectively. On the BSE, the market breadth was positive, with 1648 gainers versus 1322 decliners.

Select public sector stocks like BEML, Bharat Electronics, STC and HMT gained between 2.5% and 6% ahead of state-run Coal India's debut on the stock exchanges tomorrow. Hindustan Copper rallied 4% on reports that it is selling non-core assets.

If the global markets remain firm, the refund money of Coal India's $3.5 billion IPO, which was subscribed 15 times, could make way into the stock market in the next few sessions, analysts said.

Leading lenders like HDFC, ICICI Bank and SBI rose by 0.24%-2.19%. Realty stocks witnessed stock-specific buying following yesterday's sharp declines after the RBI tightened norms for home loans. Unitech climbed 2.61%, Sobha Developers added 0.54% and Indiabulls Real Estate closed barely changed, while Parsvnath Developers fell 2.86%, Ackruti City declined 2.26%, DB Realty eased 1.18% and HDIL edged down 0.54%.

Fertilizer stocks like GSFC, GNFC, Zuari Industries, Chambal, Nagarjuna, Nationaland RCF rallied between 2% and 17% in anticipation of a new fertilizer policy ahead of a cabinet meeting scheduled on Thursday.

Tata Teleservices rose 0.65% after it launched 3G mobile services in nine circles. Fortis Healthcare advanced 1.43% after it posted nearly a six-fold rise in its quarterly net profit, bolstered by the proceeds from the sale of its stake in Singapore-based hospital chain Parkway.

IDBI Bank gained 0.94% as it hiked retail term-deposit rates by 10-50 basis points.GAIL India edged up 0.13% after the state-owned transmission and marketing firm posted a 29% rise in quarterly net profit.

Venus Remedies rose 1.58% after it received good manufacturing practices certification from Saudi Arabia for four of its injectable manufacturing facilities. KEC International added a percent after it received board approval for a 5-for-1 stock split.

Oriental Bank of Commerce fell 1.75% even as the public sector lender reported a 47% rise in second-quarter net profit. SpiceJet, which said it would buy 30 Bombardier aircraft for $900 million, ended down 2.61%.

Elsewhere, most Asian stocks edged higher on Wednesday, as a weaker dollar supported commodity prices and investors braced for another round of quantitative easing from the U.S. Federal Reserve to kick-start the lackluster U.S. recovery. Many analysts expect the Fed to commit to buying about $250 billion to $1.5 trillion government bonds to further lower borrowing costs and spur more spending.

The outcome of the U.S. mid-term elections, where Republicans made large gains to take control of the House of Representatives, also boosted sentiment, as the Republicans are often viewed as more business-friendly.

The Japanese market was closed in observance of the Culture Day holiday, while Chinese stocks extended losses for a second consecutive session to end about half a percent lower after the People's Bank of China said it would take further measures to tame inflation.

The People's Bank of China, in its third-quarter monetary policy report published Tuesday, said that it will gradually "normalize" monetary conditions from a stimulus-driven mode as it faces "relatively big" uncertainties over price trends.

European stocks were mixed in early trading, while the U.S. index futures fluctuated ahead of the FOMC meeting later this evening.

Forex Top Story

Euro Holds Gains Versus Dollar As Fed Preps QE

The euro paused versus the dollar ahead of Wednesday's closely watched announcement on quantitative easing from the US Federal Reserve.

The Fed is set to print more money in order to support the economy with another round of asset purchase. While the size and scope of the latest program is expected to be smaller than the stimulus offered last year, the notion that the Fed will continue its accommodative policy has weakened the dollar.

The euro fetched $1.4050 in New York's late morning trading, about a penny from October's 9-month high of $1.4058.

Traders shrugged off industry data from ADP showing US private sector employment increased by 43,000 jobs in October following a revised decrease of 2,000 jobs in September. Economists had expected employment to increase by 23,000 jobs compared to the loss of 39,000 jobs originally reported for the previous month.

Activity in the U.S. service sector expanded for the tenth consecutive month in October, the Institute for Supply Management revealed in a report on Wednesday, with the pace of growth in the sector accelerating by more than economists had been anticipating

The euro rose sharply against the yen, hitting a 3-week high of Y114.20.

The euro pared some of its overnight losses versus the sterling, edging up to 0.8720 from 0.8695. In October, the euro hit a multi-month high above 0.89.

UK's service sector growth unexpectedly improved in October, according to a survey from Markit Economics.

The seasonally adjusted Markit/CIPS Purchasing Managers' Index for the service sector rose to a four-month high of 53.2 in October, the report showed Wednesday. Economists had expected the index to fall to 52.6 from 52.8.

Canadian Market Reports

TSX Poised For Cautious Start Ahead Of FOMC

Bay Street stocks are poised for a cautious start Wednesday ahead of the outcome of the 2-day FOMC meeting, due out later in the day, with traders digesting a host of mixed earnings reports.

However, energy stocks may be in play, with crude oil prices moving near their 6-month high of $85. On Tuesday, the S&P/TSX Composite Index edged up 16.61 points or 0.13% to 12,681.42, near its 2-year peak.

The price of crude oil advanced near $85 as traders speculate that the U.S. Federal Reserves will announce further monetary easing measures today. The EIA will release its weekly crude oil report. Analysts expect crude inventories to rise by 1.2 million barrels and gasoline stocks to increase by 200,000 barrels in the week ended October 29. Crude for December was up $0.89 to $84.79 a barrel.

Meanwhile, the price of gold was little changed, with gold for December edged down $0.20 to $1,356.70 an ounce.

In corporate news from Canada, fertilizer maker Agrium Inc. reported higher third-quarter net earnings of $57 million or $0.37 per share compared to $26 million or $0.16 per share in the prior year quarter. Excluding certain items, net earnings came in at $111 million or $0.70 per share for the quarter. Analysts were expecting the company to report earnings of $0.87 per share.

Oil transportation company Enbridge Inc. reported lower third-quarter net earnings of C$157 million or C$0.42 per share compared to C$304 million or C$0.83 per share last year. However on an adjusted basis, earnings improved to C$196 million or C$0.53 per share from C$153 million or C$0.42 per share a year earlier. The company declared quarterly dividend of $0.425 per share.

Oil and gas royalty trust Daylight Energy reported a rise in third-quarter Funds From Operations reflecting higher revenue. However, FFO per share dropped on higher share count. FFO increased to C$67.65 million from C$50.24 million last year, while on a per share basis it decreased to C$0.31 from C$0.39 reported in the prior year.

Food products company Premium Brands Holdings reported lower third quarter earnings of C$5.88 million or C$0.33 per share, compared to C$6.88 million or C$0.39 per share last year.

Construction and infrastructure development company Aecon Group reported lower third quarter net profits despite increase in revenues. Net income declined to $17.22 million or $0.27 per share from $19.64 million or $0.35 per share in the same quarter last year. Revenues for the quarter increased to $800.18 million, from $707.09 million.

Media company Torstar Corp. reported flat third quarter net income of $4.10 million or $0.05 per share, compared to $4.04 million or $0.05 per share last year.

Home, auto and business insurances provider Intact Financial Corp. said it swung to profit in third quarter, reporting a profit of C$82.3 million or C$0.72 per share, compared to a loss of C$8.0 million or C$0.07 per share last year. The company declared a quarterly dividend of $0.34 per share.

Retail financial services company Home Capital Group reported a 18% jump in its third quarter net income at C$45.45 million or C$1.31 per share. The company declared quarterly dividend of C$ 0.18 per common share, up 12.5% from last year.

Forest products company Western Forest Products swung to profit in third quarter, reporting net income of C$6.9 million or C$0.01 per share compared to a net loss of C$16.6 million or C$0.04 per share in the same quarter last year.

Mining services company North American Energy Partners reported lower third-quarter net income of $2.37 million or $0.06 per share compared to $4.30 million or $0.12 per share last year. Analysts were expecting the company to report net income of $0.15 per share.

Construction products dealer Superior Plus slipped into the red, reporting third quarter net loss of C$4 million or C$0.04 per share compared to net earnings of C$33 million or C$0.37 per share last year. During the quarter, the company recorded C$1.2 million in unrealized losses on derivative financial instruments, compared to unrealized gains of C$33.9 million in prior year's third quarter.

Oil and gas industry services provider Calfrac Well Services reported higher third-quarter net income of C$31.19 million or C$0.72 per share compared to C$2.84 million or C$0.08 a year ago.

In economic news from the U.S., Automatic Data Processing, Inc. said private-sector employment increased by 43,000 jobs in October following a revised decrease of 2,000 jobs in September. Economists were expecting employment to increase by 23,000 jobs compared to the loss of 39,000 jobs originally reported for the previous month.

WORLD MARKET UPDATES

2010-11-02T18:31:00.000+01:00

US Market Updates

Stocks Posting Solid Gains In Mid-Morning Trading

Stocks are seeing moderate upside in mid-morning trading on Tuesday, although the gains may be challenged by caution ahead of the midterm election results. The impending influx of market-moving news, including the Federal Reserve's anticipated quantitative easing announcement and Friday's jobs report, may also keep a lid on buying and selling in the equity markets.

The major averages have seen some downside in recent dealing, moving further off of their best levels of the day. Nonetheless, the Dow currently remains up 66.67 points or 0.6 percent at 11,191.29, the Nasdaq is up 16.42 points or 0.7 percent at 2,521.26 and the S&P 500 is up 7.12 points or 0.6 percent at 1,191.50.

While waiting on the forthcoming news, the markets may look to monthly sales numbers from individual automakers for the month of October, due out later today. With earnings season winding down, quarterly results have also garnered some market attention in the early going.

This morning, pharmaceutical giant Pfizer Inc. (PFE) reported adjusted third-quarter net income of $0.54 per share, which beat estimates by 3 cents, while its revenues missed forecasts despite a 39 percent increase. The drug maker's 2010 earnings and revenue forecasts were largely in-line with expectations.

MasterCard Inc. (MA) posted third quarter net income of $3.94 per share, firmly beating Wall Street projections, while its revenues just edged out estimates.

Oil giant BP Plc (BP) reported a sharp decline in its third-quarter profit after it took a $7.7 billion pre-tax charge related to the massive Gulf of Mexico oil spill.

After the markets closed for trading on Monday, Anadarko Petroleum Corp. (APC) reported a loss in its third quarter, with earnings and revenues missing Street estimates by a wide margin.

Overseas, the Reserve Bank of Australia unexpectedly raised its key interest rate by 25 basis points to 4.75 percent, effective November 3rd.

The bank concluded that the balance of risks had shifted to the point where an early, modest tightening of monetary policy was prudent, RBA Governor Glenn Stevens said in a statement.

Sector News

Health insurance stocks are among the market's best performers in the early going, driving the Morgan Stanley Healthcare Payor Index up by 2.8 percent. Within the sector, Humana (HUM) is seeing a gain of 4.1 percent and is on target for its best closing price in two and a half years.

Steel, tobacco, oil and defense stocks are also trading higher, further contributing to the early upside for the major averages. The NYSE Arca Tobacco Index is up by 1.7 percent, poised for yet another all-time closing high.

Gains among natural gas, networking and software stocks are proving to be more modest as some buying interest is restrained ahead of the week's major news.

Stocks Driven By Analyst Comments

DreamWorks Animation (DWA) is trading higher after being upgraded at Bank of America from Underperform to Neutral, while its price target was raised to $38 from $30. The stock is up by 0.4 percent after setting a fresh six-month intraday high.

Tidewater (TDW) is also elevated following an upgrade at Goldman Sachs from Sell to Neutral. Shares are currently up by 1.1 percent and also set a new six-month intraday high.

On the other hand, Aeropostale (ARO) is trading lower after being downgraded at Keybanc Capital Markets from Hold to Underweight. The stock is posting a loss of 2.4 percent, slipping to a one-month intraday low.

Other Markets

Overseas, stock markets in the Asia-Pacific region ended little changed on Tuesday. Japan's benchmark Nikkei 225 Index edged up by 0.1 percent, as did Hong Kong's Hang Seng Index.

Meanwhile, the major European markets are seeing strong gains. The U.K.'s FTSE 100Index is up by 1.3 percent, while the German DAX Index is up by 0.9 percent and theFrench CAC 40 Index is up by 0.7 percent.

In the bond markets, treasuries are posting modest gains. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.590 percent, posting a loss of 3.8 basis points.

European Market Updates

European Markets Trade Cautiously Amid Manufacturing Data

The European stock markets are edging higher Tuesday morning after euro zone manufacturing activity improved by much more-than-expected in October. However, traders remain cautious ahead of Wednesday's FOMC meeting.

In the commodities market, crude for December delivery is up $0.32 to $83.27 a barrel. Meanwhile, the price of gold is moving higher, with gold for December delivery adding $7.60 to $1,358.20 an ounce.

In economic news, manufacturing activity in the euro zone improved more than initially estimated in October, survey results from Markit showed. The final Purchasing Managers' Index for October rose to 54.6 in October from September's eight-month low of 53.7. The flash estimate for October was 54.1.

Meantime, Germany's manufacturing sector expanded again in October, largely helped by strong new orders, survey data from Markit Economics showed. The seasonally adjusted Markit/BME Purchasing Managers' Index, a composite indicator designed to give a single-figure snapshot of operating conditions in the manufacturing economy, rose to 56.6 in October from 55.1 in the previous month.

In an indication that construction will have less of a positive impact on UK's GDP compared to the previous quarter, the seasonally adjusted Markit/Chartered Institute of Purchasing & Supply construction Purchasing Managers' Index fell to 51.6 in October, the lowest reading in the current eight-month sequence of expansion. The expected reading was 53.

Among stocks, BP Plc is edging up over 1% after it said its profit fell 66% after taking a further pre-tax charge of $7.7 billion related to the Gulf of Mexico well disaster. Third-quarter net income dropped to $1.8 billion from $5.3 billion in the year-earlier period.

U.K's third-largest natural-gas producer BG Group Plc is adding over 2% after reporting a 12% jump in its third-quarter profits.

Basilea Pharmaceutica is up over 1%. The company said it has received a milestone payment of 5.5 million euros under its distribution agreement for Toctino, or alitretinoin, with Almirall, S.A.

Meanwhile, Spain's second-biggest bank Banco Bilbao Vizcaya Argentaria SA is shedding over 4% after it said it would buy a 24.90% stake in Turkiye Garanti Bankasi AS for $5.8 billion.

The FTSE 100 is currently up 0.89%, the CAC 40 is adding 0.73% and the DAX is up 0.40%.

Asia Market Updates

Indian Market Ends Volatile Session Unchanged

The Indian market closed a volatile session mostly unchanged on Tuesday after theReserve Bank of India raised its key short-term policy rates by 25 basis points each, a day before a meeting of the U.S. Federal Reserve Meeting to consider additional quantitative easing.

Investors also eagerly await the results of U.S. mid-term elections today, the outcome of the Bank of England's policy committee meeting on Thursday and the the Bank of Japan's meet on November 5 for clues on foreign fund inflows into emerging markets.

After trading choppily in a range of 20,418-20,282, the 30-share BSE Sensex ended down about 10 points or 0.05%, while the broader Nifty closed up 0.02% at 6,119.

The BSE mid-cap index gained 0.45% and the small-cap index added 0.09%. The market breadth on the BSE was negative, with 1591 decliners versus 1375 gainers, in contract with a positive breadth in early trading.

The Reserve Bank of India today hiked the repo rate and the reverse repo rate by 25 basis points each in a bid to cool inflation. The cash reserve ratio, which determines the amount of funds that banks are required to set aside with the central bank, however, has been kept unchanged at 6%. RBI's last move was in September when it lifted the repo rate by a quarter point and the reverse repo by 50 basis points.

"Based purely on current growth and inflation trends, the Reserve Bank believes that the likelihood of further rate actions in the immediate future is relatively low," the central bank said in a statement. The central bank left its baseline real GDP growth projection for 2010-11 unchanged at 8.5%.

Banking stocks closed mostly higher, shrugging off the modest rate hike. SBI edged up 0.19%, HDFC Bank advanced marginally and Axis Bank advanced 0.98%, while ICICI Bank closed flat with a negative bias.

Realty stocks fell the most after the central bank tightened provisional norms on home loans. Indiabulls Real Estate plunged 5%, Unitech and DLF tumbled over 3% each and Sobha Developers ended down 2.12%. Orbit Corporation lost 2% on disappointing results.

In the auto sector, Ashok Leyland, Maruti Suzuki, Mahindra & Mahindra and Tata Motors fell between 0.20% and 1.41%, while Bajaj Auto rose 1.07% after reporting a 32% rise in its vehicle sales for October.

Cement stocks witnessed significant activity after the companies released healthy sales and production numbers for October. ACC climbed 4.20%, Ambuja Cements added 3.71% and UltraTech advanced 1.67%.

Software stocks closed on a mixed note. Infosys rose 0.83% and Wipro advanced 2.49%, but TCS ended down 0.48%. Jet Airways fell 1.12% after the airline said it launched forty-six new flights across the country effective Nov 1. Steel Strips Wheelsdeclined 2.13% despite reporting higher gross sales for October.

ABG Shipyard edged up 0.45% on securing an overseas order. Glaxosmithkline Consumer Healthcare added 0.98% after declaring its quarterly results.

Elsewhere, the other Asian markets ended on a mixed note Tuesday, as investors remained wary of expected quantitative easing by the U.S. Federal Reserve. There was a lack of consensus on the magnitude of additional stimulus measures or bond-buying program that the Fed may unveil to spur the economy.

However, European stocks posted modest gains in early trading and the U.S. index futures pointed to a positive start on Wall Street Tuesday morning.

Meanwhile, the Reserve Bank of Australia unexpectedly raised its key interest rate on Tuesday following its assessment that an early and modest tightening of monetary policy is prudent.

Separately, minutes from the Bank of Japan's monetary policy meeting on October 4.-5 released today revealed that some of the members of the central bank believed that further stimulus measures might do more harm than good.

Forex Top Story

Dollar Mixed As U.S. Voters Head To Polls, Fed Preps QE Announcement

The dollar was mixed on Tuesday morning, as Americans lined up to vote in a midterm election that is shaping up to be a referendum on the policies of the Obama administration.

The markets have priced in a sweeping victory for the the Republicans, who will likely re-take the House of Representatives and trim the Democrats lead in the Senate.

Against this backdrop,the Federal Reserve is kicking off a two-day meeting today. While a decision to stand pat on interest rates is considered a foregone conclusion, few are certain about the size and scope of an expected second round of quantitative easing.

The dollar has fallen sharply of late amid speculation the Fed is prepping something along the lines of the $2 trillion spent on the first round of asset purchases back in 2009. However, recent hints about a more gradual and restrained approach this time around have helped the dollar stabilize a bit.

The dollar eased a bit versus the euro, having shown little direction over the past few days. The buck was trading near $1.3980, not far from October's 8-month low of $1.4150.

The dollar also drifted lower versus its Canadian counterpart, and was within a cent of parity approaching mid-morning. The pair exchanged at C$1.01, a 2-week low for the greenback.

On the flip side, the dollar gained on the sterling after the British construction sector showed its weakest growth in eight months, according to a survey. The buck rose a penny to $1.5985, an improvement from a recent 9-month low of $1.6106.

The dollar was also steady versus the yen, edging higher to Y80.95. In the process, the dollar stayed away from a record low of Y79.80, set back in 1995.

Some of the members of the Bank of Japan's monetary policy board believed that further stimulus measures might do more harm than good, minutes from the bank's October 4-5 meeting revealed on Tuesday.

However, some of the policy board members said that an unchecked rise from the yen would almost certainly weigh on the economy.

Elsewhere on the Pacific Rim, the Reserve Bank of Australia unexpectedly raised its key interest rate by 0.25 points to 4.75% on Tuesday, following its assessment that an early and modest tightening of monetary policy is prudent.

Canadian Market Reports

Early Signals Point To Higher Open For TSX

Toronto stocks are poised for a higher open Tuesday amid firm commodities prices and strong cues from the global equity markets.

On Monday, the S&P/TSX Composite Index eased 11.43 points or 0.09% to 12,664.81 on late selling. The price of crude oil moved up Tuesday morning as traders await the outcome of FOMC meeting due out tomorrow. Crude for December was up $1.01 to $83.99 a barrel, near its three-week high.

The price of gold was moving higher as Federal Reserve officials gathered for a two-day meeting in Washington, at the conclusion of which they are expected to unveil more quantitative easing measures. Gold for December gained $7.40 to $1,358.00 an ounce.

Fertilizer maker Potash Corp. may be in play amid media reports that Investment Canada has tentatively approved BHP Billiton's hostile $130 per share take over bid.

In corporate news from Canada, diversified upstream oil and gas firm Talisman Energyreported improved third-quarter net income of C$121 million or C$0.12 per share, compared to C$30 million or C$0.03 per share last year. The company declared a semi-annual dividend of $0.125 per share.

Industrial electioneering company Ritchie Bros. Auctioneers reported third quarter net earnings of $13.48 million or $0.13 per share, up from $12.89 million or $0.12 per share last year. Analysts were expecting the company to report earnings of $0.09 per share this quarter.

Publishing and marketing services company Transcontinental Inc. said it acquired privately held Vortxt Interactive, to enhance its interactive marketing solutions.

Pulp maker Mercer International said it swung to profit in third quarter, reporting net income of EUR 46.1 million or EUR0.82 per share, compared to net loss of EUR14.1 million or EUR0.39 per share in the year ago quarter.

Mobile communications services provider Bridgewater Systems said its third-quarter net income doubled to $3.4 million or $0.13 per share and guides 2010 net income to be between $12 and $13.5 million.

Mineral explorer Terraco Gold said it would acquire Western Standard Metals in an all-share transaction, by way of a plan of arrangement. Western shareholders will receive 0.75 common shares of Terraco for each share held.

Resource stocks were leading Toronto's main index higher at open the Tuesday amid firm commodities prices. The S&P/TSX Composite Index added 27.80 points or 0.22% to 12,692.61.

The Diversified Metals Index rose 0.90%, with First Quantum Minerals and Equinox Minerals adding around 2% each. Among gold stocks, Alamos Gold, Eldorado Gold and Kirkland Lake Gold were up around 1% each.

In the oil patch, Celtic Exploration and Canadian Oil Sands Trust gained over 1% each. Diversified upstream oil and gas firm Talisman Energy edged up 0.75% after reporting improved third-quarter net income.

In the financial space, TD Bank and Bank of Montreal added nearly 1% each. In the IT space, MacDonald Dettwiler was up 0.75%, while blackberry maker Research In Motion gave in close to 1%.

Mobile communications services provider Bridgewater Systems soared over 7% after it said its third-quarter net income doubled.

Fertilizer maker Potash Corp. edged up nearly 0.50% amid media reports that Investment Canada has tentatively approved BHP Billiton's hostile $130 per share take over bid.

EUROPE AND CHINA ECONOMY TIES

2010-11-02T15:49:00.000+01:00

“The support of our Chinese friends is fortunate for us,” Greece’s minister of state, Haris Pamboukis, said by telepone.
But China had much greater ambitions. Greece is one foothold for China’s broad, strategic push into Europe. It is snapping up assets depressed by the global financial crisis and becoming a significant partner of other hard-hit European nations.
Ultimately, analysts say, Beijing hopes to achieve not just more business for its own companies, but also greater influence over the economic policies set in the power corridors of Brussels and Germany.
“They are indicating a willingness to stick their nose into Europe’s business,” said Carl B. Weinberg, chief economist of High Frequency Economics.
“It’s very clever and sends a clear message,” he added, “that China is a force to be contended with.”
That message will be reinforced by a visit this week by China’s president, Hu Jintao, who is scheduled to meet with top officials and business executives of Portugal and France.
Europe’s financial crisis this year has created buying opportunities for cash-rich investors, including secretive hedge funds and Qatar, the natural gas giant of the Persian Gulf that recently agreed to invest $5 billion in Greece. But China is leading the charge. It is singling out Greek, Spanish and other downgraded government debt, as well as ports, highways and industries in troubled countries on Europe’s eastern and southern edges.
Ireland and Hungary, among others, are also competing to lure Chinese investments, in the hopes that they will create thousands of new jobs.
“What is happening is that the Chinese are expanding in Europe as they did in Africa,” said François Godement, a senior policy fellow of the European Council on Foreign Relations. “But in Europe, they’re coming in through countries on the periphery, which is extraordinary.”
China is concentrating its efforts on ports in Greece and Italy and highways that link Eastern Europe to Germany and Turkey, and aims to secure larger infrastructure investments over time. It has provided billions of dollars in state financing for key public works projects that support Chinese state-owned companies and Chinese workers.
Such moves could give China a bigger presence in the European chain of distribution and production, while allowing it to build a track record of investments that it hopes will also encourage Europe to support its position on divisive currency issues and in trade disputes at the World Trade Organization.
During his recent European tour, Mr. Wen reminded politicians in Brussels that China had acted as “a friend” to Greece, Spain, Italy and other troubled European countries in their darkest hour by buying bonds as other investors fled. In return, he admonished regional leaders not to “pressure China on the yuan’s appreciation,” referring to the Chinese currency, formally called the renminbi.
In the past several months, China has pledged to buy Greek bonds when the government starts selling again, and purchased $625 million in Spanish debt. On his visit, Mr. Wen hailed scores of business deals in Italy and Greece, including one that allows a Chinese state firm to run Greece’s top shipping port — one of the largest European gateways for Chinese goods.
For China, plowing a small but growing share of its more than $2.3 trillion in foreign currency reserves into European investments instead of low-yielding United States Treasury bills helps diversify its portfolio. Beijing also hopes that this kind of push helps reduce the international political pressure to raise the value of its currency.
“It’s not a coincidence that China is doing this,” said Jens Bastian, an economist at the Hellenic Foundation for European and Foreign Policy. “They have huge currency reserves, and these countries where they are going right now have a dying need for foreign investment.”
While Chinese foreign direct investment in Europe is still small compared with its investments in other regions, it has grown quickly over the past two years. And this spring Europe overtook the United States as China’s largest trading partner.
Struggling Ireland is also looking for a piece of the action, and moves are afoot to create an “investment gateway to Europe” for China in the town of Athlone, which hopes for the creation of thousands of jobs. Prime Minister Brian Cowen of Ireland said in June that China had vowed to be “as helpful as they can to a friend like Ireland in the difficult times that we have.”
The investments also allow Beijing to advance the interests of Chinese companies as they go global. Mr. Wen last month talked up a $4.5 billion credit line that troubled Greek shipbuilders could tap — but almost exclusively to purchase Chinese-made ships. An additional $5 billion is flowing to Greek coffers from China’s state-run Cosco shipping company, which is leasing Piraeus, the port of Athens, to transform it from Europe’s largest passenger port to a much bigger hub for cargo, with aims to more than double traffic to 3.7 million containers in 2015.
In Italy, Cosco is expanding the port of Naples, while HNA, a logistics, transportation and tourism group based in Hainan Province, China, is in talks to build a giant air terminal north of Rome for cargo arriving from China. Mr. Wen pledged an additional $100 billion in trade with Italy through 2015 and heralded 10 business deals between Chinese and Italian businesses.
Some of China’s investments have already raised eyebrows. Last year, China outbid European companies to build a highway in Poland using a Chinese business and workers — with European subsidies — prompting Chancellor Angela Merkel of Germany to call for reciprocity.
In the coming decade, Europe will be considering numerous new projects, such as clearing the Danube River of wartime ordnance to use it as a transportation passageway; building railways between countries like Germany and Macedonia; and carving new highways from Germany to Turkey, Mr. Bastian said.
“What Europe lacks is a transportation infrastructure network where Western and Eastern Europe meet,” he said. “This is where China is trying to take advantage of their current buildup.”
Still, for all the fears of ulterior motives on China’s part, many Europeans welcome the investment with open arms. China is mainly interested in promoting trade and making money, said Mr. Pamboukis, the Greek minister of state.
China’s investment strategy in Europe is “discreet and well thought-out,” he said. “I don’t think China is coming in here as a Trojan Horse.”