US SUMMARY: Stocks Overcome Losses To Close Higher
DJIA 12423.49 gain 25.48 up 0.2%
NASDAQ 2438.20 gain 3.95 up 0.2%
S&P 500 1412.84 gain 3.13 up 0.2%
Dow Future 12503.00 gain 11.00 up 0.1%
NASDAQ Future 1806.00 gain 2.50 up 0.1%
S&P Future 1424.00 gain 1.50 up 0.1%
Euro-USD 1.3037 gain 0.0008 up 0.06%
10-Yr US Treasury: 4.66% up 0.01
(Futures values, Treasury, EUR/USD Data as of 0550 GMT)
Wall Street overcame early losses to close higher Monday as a drop in oil prices and a fresh round of acquisition activity helped boost investors confidence in the economy. The dollar ended little changed, while Treasurys eased lower.
STOCKS: Gap surged on a report the retailer is considering strategic alternatives for the business, which could include a sale.
Stock trading did carry an element of caution as investors turned their attention toward fourth-quarter earnings, which start Tuesday when Alcoa posts results. Several profit warnings from a number of companies - including airline UAL - prevented indexes from gaining broader momentum.
Peter Dunay, an investment strategist with New York-based Leeb Capital Management, said investors are trading conservatively ahead of earnings reports. He said the biggest thing on the horizon is "the impact any kind of profit warnings are going to have."
Federal Reserve Vice Chairman Donald Kohn said in a speech that recent inflation data are "encouragingly consistent" with the central banks forecast for a gradual decline. However, he warned its still too early for officials to relax about price pressures.
"Were looking at some pretty strong fundamentals with the economy, interest rates, inflation and valuation," said Leo Grohowski, chief investment officer for U.S. Trust. "The market looks to have a fairly equity-friendly investing backdrop."
In deal news, General Electric has asked for bids on its plastics business, valued at up to $10 billion, in an auction that appears to reflect new concern from the U.S. Department of Justice about lack of competition among possible private-equity buyers.
BOND: Treasury prices ended mostly lower Monday.
"The market is marking time here," said Raymond Remy, head of fixed income for Daiwa Securities America.
Generally speaking, RBS Greenwich said, "we detect neither forced selling into weakness nor forced buying into strength."
FOREX: Starting off mixed in Europe, the dollar touched a six-week-high against the euro Monday before falling back and exiting active trading little changed against its major rivals.
Demand for euros at around $1.30 from an unnamed central bank in Asia also weighed on the dollar, said Grant Wilson, senior foreign exchange trader at Mellon Bank.
Tuesday is another data-light session, and traders are likely to square positions ahead of Wednesdays report on the U.S. trade balance in November.
OIL: Futures fell slightly Monday as traders shrugged off both Russias decision to halt oil supplies through Belarus and OPEC talk of further production cuts. February light, sweet crude contract on the New York Mercantile Exchange settled 22 cents lower at $56.09 a barrel. Brent crude on the ICE futures exchange fell 4 cents to $55.60 a barrel.
"It looks like we havent been able to shake the bearish feeling of last week." said Peter Donovan, vice president of Vantage Trading in New York.
"OPEC is starting to jawbone the market higher, but really, theres not much point in them bringing in new cuts until they can implement existing" commitments to cut, said Nauman Barakat, of Macquarie Futures USA in New York.
ASIAN SUMMARY: Stocks Recover As Commodities Stabilize
USD-Yen 118.88 gain 0.10 up 0.08%
AUD-USD 0.7831 gain 0.0032 up 0.4%
Nikkei 225 17239.79 gain 148.20 up 0.9%
Hang Seng 19901.31 loss 128.30 dn 0.6%
S&P/ASX 200 5564.10 gain 79.60 up 1.5%
Taiwan Index 7796.58 gain 59.87 up 0.8%
S.Korea Kospi 1374.66 gain 3.96 up 0.3%
Spot gold $613.40 gain 5.25 up 0.8%
Brent Crude Oil $55.07 loss 0.57 dn 1.0%
JGB 10-year Yield 1.7400% up 0.0300
(All values as of 0550 GMT)
STOCKS: Stocks rose across most of the Asia Pacific region, with share indexes in Japan and Australia leading the advance on gains in Sony on an analyst upgrade and BHP Billiton on a bargain-hunting rebound.
In Hong Kong, the market fell on heavy profit-taking in Chinese stocks after the Hang Seng failed recently to breach the 20000-mark convincingly.
In corporate news, South Koreas Hyundai Capital Services is selling all of its 4.369 million shares in Kia Motors for KRW52.42 billion Tuesday, according to a transaction statement seen by Dow Jones Newswires. Kia shares tumbled on the news.
FOREX: The yen weakened against the dollar as the market debated chances for another rate hike by the Bank of Japan next week.
"For yen performance...it remains to be seen how the BOJ will navigate demands from the government to not derail a recovering economy while embarking on a tightening path," said Daniel Katzive, currency strategist at UBS.
"Our economists expect the BOJ to lift rates at next weeks meeting, which should provide some support to the currency, though probably not enough to generate a full-blown unwinding of carry positions," he added.
BONDS: Prices of Japans government bonds fell as investors faced more supply from a 10-year auction on Wednesday. Worry about a rate hike in January by the Bank of Japan also weighed, as did weaker Treasurys.
METALS: A rebound in mining and other commodity shares in Asia prompted hopes that prices of raw materials have bottomed out. Spot gold was last at $613.40/oz, up $5.25, as demand from jewelers picked up. But dealers said the metal could pare gains later Tuesday on weaker oil and the higher euro. LME 3-month was last at $5,605/ton, unchanged on the PM kerb. Consumer demand may pick up at current lower prices, but speculative sellers are likely to act on any rally, traders said.
OIL: Prices declined in Asian trading Tuesday as persistently mild weather in the U.S. northeast dampened demand for heating oil. Expectations that a midweek U.S. supply tally will show domestic inventories rose also pressured prices. Nymex February futures dropped 35 cents to $55.74 a barrel in electronic trading on the New York Mercantile Exchange midmorning in Singapore.
EUROPEAN OUTLOOK: Stock Markets To Follow Global Trend
Euro-USD 1.3037 gain 0.0008 up 0.06%
Stlg-USD 1.9421 gain 0.0043 up 0.2%
USD-Franc 1.2371 gain 0.0008 up 0.06%
(All values as of 0550 GMT)
European stocks are headed higher, with prices of government debt under light pressure, with the euros rebound capped for now.
STOCKS: European markets are set for a decent rebound at the open, buoyed by gains in Asia and a late recovery on Wall Street overnight. Any significant gains on the London FTSE could be capped by the continuing fall in oil prices, according to Tom Hougaard of City Index.
"However, we are seeing a significant interest in oil stocks in the belief that we have seen the worst in the oil correction for now," Hougaard said.
U.K. spreadbettor CMC Markets is calling the FTSE up 29 points at 6223, the DAX up 26 at 6634 and the CAC up 19 at 5538.
On Monday, European markets shed early momentum, as a reversal in the fortunes of oil producers and declines for drug companies offset gains from metals producers, technology firms and telecommunications services companies.
"We have seen a bit of sector rotation," said Lars Kreckel, a European equity strategist at Dutch bank ABN Amro, noting that telecoms have been one of the beneficiaries of this trend.
"Weve had a good start to the year. Were going for a 10% increase in the European market this year," said Kreckel.
FOREX: The euro is higher against the dollar and yen, but sellers have already trapped the euro in the $1.3030-1.3050 area, dealers say. But some are betting European players will bid the euro higher on doubts about the dollars stamina.
BONDS: Prices of European government bonds may open slightly lower, after having drifted higher Monday as gilt and bund traders marked time ahead of central bank interest rate decisions later in the week, market participants said.
Much activity is doubtful before Thursdays European Central Bank interest rate decision and subsequent news conference with bank President Jean-Claude Trichet. The Bank of England also sets rates Thursday.
The ECB and BoE are expected to keep rates unchanged at 3.5% and 5.0% respectively.
HSBC said in a research note that it expects U.K. rates to peak at 5%, while in the euro zone another 25 basis point hike should come in the first quarter of 2007.
Analysts said Tuesday is likely to be another quiet trading session, with only German industrial production and the British Retail Consortiums December retail sales index on the agenda.
CALENDAR: Tuesday Jan 9: German Industrial Output
GMT Expected Previous
0700 GER Nov Foreign Trade +16.1B +17.3B
0700 GER Nov Current Account +11.0B +11.6B
1100 GER Nov Indus Production Index +1.0% -1.4%
+4.6% +3.2%
1100 UK Dec BRC-KPMG Retail Sales Monitor +1.4% +0.5%
1245 US Jan 6 ICSC Chain Store Sales +0.3%
1355 US Jan 6 Redbook Retail Sales Index -1.4%
2200 US Jan 7 ABC/Washington Post Consumer Confidence -3
Index
N/A FRA Nov OECD CPI
-By Dennis Baker; Dow Jones Newswires; [email protected]
(MORE TO FOLLOW) Dow Jones Newswires
January 09, 2007 01:47 ET (06:47 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.
09 Jan 2007 06:47 GMT =DJ EUROPEAN MORNING BRIEFING: Corporate Events
Beiersdorf (BEI.XE): FY Earnings
Average EPS excluding special items (DJ, 7 analysts): EUR1.65 (EUR1.45)
Average EBIT: EUR600M (EUR531M)
Average sales: EUR5.1B (EUR4.776B)
Note: Analysts see Beiersdorf reaching its sales growth target of +6%.
Bovis Homes Group (BVS.LN): Trading Update
Note: Bovis Homes half year trading update is expected to show "no material differences from other housebuilders," according to Citigroup analyst Aynsley Lammin. He notes modest exposure to the South East has limited the housebuilders progress in the period. Lammin says that focus will be on Bovis Homes strong landbank, which has consistently improved margins above rivals in the sector. Has 2-Mo target price of 1106p.
Marks & Spencer (MKS.LN): Trading Update
Note:Dresdner Kleinwort raises Marks & Spencer target to 720p from 695p, based on an updated DCF analysis. Says 3Q expectations are high but should be met. "Trading is likely to be a rare bright spot in a difficult clothing sector where weakness, outside weather, is in good part a function of M&S strength." The bank is cautious to issue a re-rating and asks the question "Can M&S expand clothing market share beyond the recovery phase?" Maintains at hold.
OTHER SCHEDULED EVENTS:
Abbeycrest (ACR.LN): Trading Update
Air Berlin (AB1.XE): December Traffic Data
Alfred McAlpine (MCA.LN): Trading Update
Beneteau (3516.FR): 1Q Revenue
Big Yellow Group (BYG.LN): Trading Update
Blooms of Bressingham (BBR.LN): Trading Update
BP (BP.LN): Trading Update
Carrs Milling (CRM.LN): AGM
Cobra Bio-Manufacturing (CBF.LN): FY Earnings
Cybergun (403183.FR): 1H & Q3 Revenue
Dominos Pizza (DOM.LN): Trading Update
Dunelm Group (DNLM.LN): Trading Update
EGIS Pharmaceuticals: 1Q Earnings
Finnair (FIA1S.HE): December Traffic Data
Galliford Try (GFRD.LN): Trading Update
Halladale Group (HDG.LN): 1H Earnings
Inter Link Foods (ITF.LN): 1H Earnings
Northern Foods (NFDS.LN): EGM
Northgate (NTG.LN): 1H Earnings
Norwegian Air Shuttle (NAS.OS): December Traffic Data
Rightmove (RMV.LN): Trading Update
SAS (SAS.SK): December Traffic Data
Savills (SVS.LN): Trading Update
Uniq (UNIQ.LN): EGM
VBG (VBG-B.SK): EGM
(MORE TO FOLLOW) Dow Jones Newswires
January 09, 2007 01:47 ET (06:47 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.
09 Jan 2007 06:47 GMT =DJ EUROPEAN MORNING BRIEFING: Div Payments & Ex Div Dates
Caledonia Investments (CLDN.LN): 1H 2006 Dividend Payment Date
Dee Valley Group (DVW.LN): 1H 2006 Dividend Payment Date
Detica Group (DCA.LN): 1H 2006 Dividend Payment Date
Gas Natural (GBAN.BA): 1H 2006 Dividend Payment Date
Tate & Lyle (TATE.LN): 1H 2006 Dividend Payment Date
(END) Dow Jones Newswires
January 09, 2007 01:47 ET (06:47 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.
DJIA 12423.49 gain 25.48 up 0.2%
NASDAQ 2438.20 gain 3.95 up 0.2%
S&P 500 1412.84 gain 3.13 up 0.2%
Dow Future 12503.00 gain 11.00 up 0.1%
NASDAQ Future 1806.00 gain 2.50 up 0.1%
S&P Future 1424.00 gain 1.50 up 0.1%
Euro-USD 1.3037 gain 0.0008 up 0.06%
10-Yr US Treasury: 4.66% up 0.01
(Futures values, Treasury, EUR/USD Data as of 0550 GMT)
Wall Street overcame early losses to close higher Monday as a drop in oil prices and a fresh round of acquisition activity helped boost investors confidence in the economy. The dollar ended little changed, while Treasurys eased lower.
STOCKS: Gap surged on a report the retailer is considering strategic alternatives for the business, which could include a sale.
Stock trading did carry an element of caution as investors turned their attention toward fourth-quarter earnings, which start Tuesday when Alcoa posts results. Several profit warnings from a number of companies - including airline UAL - prevented indexes from gaining broader momentum.
Peter Dunay, an investment strategist with New York-based Leeb Capital Management, said investors are trading conservatively ahead of earnings reports. He said the biggest thing on the horizon is "the impact any kind of profit warnings are going to have."
Federal Reserve Vice Chairman Donald Kohn said in a speech that recent inflation data are "encouragingly consistent" with the central banks forecast for a gradual decline. However, he warned its still too early for officials to relax about price pressures.
"Were looking at some pretty strong fundamentals with the economy, interest rates, inflation and valuation," said Leo Grohowski, chief investment officer for U.S. Trust. "The market looks to have a fairly equity-friendly investing backdrop."
In deal news, General Electric has asked for bids on its plastics business, valued at up to $10 billion, in an auction that appears to reflect new concern from the U.S. Department of Justice about lack of competition among possible private-equity buyers.
BOND: Treasury prices ended mostly lower Monday.
"The market is marking time here," said Raymond Remy, head of fixed income for Daiwa Securities America.
Generally speaking, RBS Greenwich said, "we detect neither forced selling into weakness nor forced buying into strength."
FOREX: Starting off mixed in Europe, the dollar touched a six-week-high against the euro Monday before falling back and exiting active trading little changed against its major rivals.
Demand for euros at around $1.30 from an unnamed central bank in Asia also weighed on the dollar, said Grant Wilson, senior foreign exchange trader at Mellon Bank.
Tuesday is another data-light session, and traders are likely to square positions ahead of Wednesdays report on the U.S. trade balance in November.
OIL: Futures fell slightly Monday as traders shrugged off both Russias decision to halt oil supplies through Belarus and OPEC talk of further production cuts. February light, sweet crude contract on the New York Mercantile Exchange settled 22 cents lower at $56.09 a barrel. Brent crude on the ICE futures exchange fell 4 cents to $55.60 a barrel.
"It looks like we havent been able to shake the bearish feeling of last week." said Peter Donovan, vice president of Vantage Trading in New York.
"OPEC is starting to jawbone the market higher, but really, theres not much point in them bringing in new cuts until they can implement existing" commitments to cut, said Nauman Barakat, of Macquarie Futures USA in New York.
ASIAN SUMMARY: Stocks Recover As Commodities Stabilize
USD-Yen 118.88 gain 0.10 up 0.08%
AUD-USD 0.7831 gain 0.0032 up 0.4%
Nikkei 225 17239.79 gain 148.20 up 0.9%
Hang Seng 19901.31 loss 128.30 dn 0.6%
S&P/ASX 200 5564.10 gain 79.60 up 1.5%
Taiwan Index 7796.58 gain 59.87 up 0.8%
S.Korea Kospi 1374.66 gain 3.96 up 0.3%
Spot gold $613.40 gain 5.25 up 0.8%
Brent Crude Oil $55.07 loss 0.57 dn 1.0%
JGB 10-year Yield 1.7400% up 0.0300
(All values as of 0550 GMT)
STOCKS: Stocks rose across most of the Asia Pacific region, with share indexes in Japan and Australia leading the advance on gains in Sony on an analyst upgrade and BHP Billiton on a bargain-hunting rebound.
In Hong Kong, the market fell on heavy profit-taking in Chinese stocks after the Hang Seng failed recently to breach the 20000-mark convincingly.
In corporate news, South Koreas Hyundai Capital Services is selling all of its 4.369 million shares in Kia Motors for KRW52.42 billion Tuesday, according to a transaction statement seen by Dow Jones Newswires. Kia shares tumbled on the news.
FOREX: The yen weakened against the dollar as the market debated chances for another rate hike by the Bank of Japan next week.
"For yen performance...it remains to be seen how the BOJ will navigate demands from the government to not derail a recovering economy while embarking on a tightening path," said Daniel Katzive, currency strategist at UBS.
"Our economists expect the BOJ to lift rates at next weeks meeting, which should provide some support to the currency, though probably not enough to generate a full-blown unwinding of carry positions," he added.
BONDS: Prices of Japans government bonds fell as investors faced more supply from a 10-year auction on Wednesday. Worry about a rate hike in January by the Bank of Japan also weighed, as did weaker Treasurys.
METALS: A rebound in mining and other commodity shares in Asia prompted hopes that prices of raw materials have bottomed out. Spot gold was last at $613.40/oz, up $5.25, as demand from jewelers picked up. But dealers said the metal could pare gains later Tuesday on weaker oil and the higher euro. LME 3-month was last at $5,605/ton, unchanged on the PM kerb. Consumer demand may pick up at current lower prices, but speculative sellers are likely to act on any rally, traders said.
OIL: Prices declined in Asian trading Tuesday as persistently mild weather in the U.S. northeast dampened demand for heating oil. Expectations that a midweek U.S. supply tally will show domestic inventories rose also pressured prices. Nymex February futures dropped 35 cents to $55.74 a barrel in electronic trading on the New York Mercantile Exchange midmorning in Singapore.
EUROPEAN OUTLOOK: Stock Markets To Follow Global Trend
Euro-USD 1.3037 gain 0.0008 up 0.06%
Stlg-USD 1.9421 gain 0.0043 up 0.2%
USD-Franc 1.2371 gain 0.0008 up 0.06%
(All values as of 0550 GMT)
European stocks are headed higher, with prices of government debt under light pressure, with the euros rebound capped for now.
STOCKS: European markets are set for a decent rebound at the open, buoyed by gains in Asia and a late recovery on Wall Street overnight. Any significant gains on the London FTSE could be capped by the continuing fall in oil prices, according to Tom Hougaard of City Index.
"However, we are seeing a significant interest in oil stocks in the belief that we have seen the worst in the oil correction for now," Hougaard said.
U.K. spreadbettor CMC Markets is calling the FTSE up 29 points at 6223, the DAX up 26 at 6634 and the CAC up 19 at 5538.
On Monday, European markets shed early momentum, as a reversal in the fortunes of oil producers and declines for drug companies offset gains from metals producers, technology firms and telecommunications services companies.
"We have seen a bit of sector rotation," said Lars Kreckel, a European equity strategist at Dutch bank ABN Amro, noting that telecoms have been one of the beneficiaries of this trend.
"Weve had a good start to the year. Were going for a 10% increase in the European market this year," said Kreckel.
FOREX: The euro is higher against the dollar and yen, but sellers have already trapped the euro in the $1.3030-1.3050 area, dealers say. But some are betting European players will bid the euro higher on doubts about the dollars stamina.
BONDS: Prices of European government bonds may open slightly lower, after having drifted higher Monday as gilt and bund traders marked time ahead of central bank interest rate decisions later in the week, market participants said.
Much activity is doubtful before Thursdays European Central Bank interest rate decision and subsequent news conference with bank President Jean-Claude Trichet. The Bank of England also sets rates Thursday.
The ECB and BoE are expected to keep rates unchanged at 3.5% and 5.0% respectively.
HSBC said in a research note that it expects U.K. rates to peak at 5%, while in the euro zone another 25 basis point hike should come in the first quarter of 2007.
Analysts said Tuesday is likely to be another quiet trading session, with only German industrial production and the British Retail Consortiums December retail sales index on the agenda.
CALENDAR: Tuesday Jan 9: German Industrial Output
GMT Expected Previous
0700 GER Nov Foreign Trade +16.1B +17.3B
0700 GER Nov Current Account +11.0B +11.6B
1100 GER Nov Indus Production Index +1.0% -1.4%
+4.6% +3.2%
1100 UK Dec BRC-KPMG Retail Sales Monitor +1.4% +0.5%
1245 US Jan 6 ICSC Chain Store Sales +0.3%
1355 US Jan 6 Redbook Retail Sales Index -1.4%
2200 US Jan 7 ABC/Washington Post Consumer Confidence -3
Index
N/A FRA Nov OECD CPI
-By Dennis Baker; Dow Jones Newswires; [email protected]
(MORE TO FOLLOW) Dow Jones Newswires
January 09, 2007 01:47 ET (06:47 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.
09 Jan 2007 06:47 GMT =DJ EUROPEAN MORNING BRIEFING: Corporate Events
Beiersdorf (BEI.XE): FY Earnings
Average EPS excluding special items (DJ, 7 analysts): EUR1.65 (EUR1.45)
Average EBIT: EUR600M (EUR531M)
Average sales: EUR5.1B (EUR4.776B)
Note: Analysts see Beiersdorf reaching its sales growth target of +6%.
Bovis Homes Group (BVS.LN): Trading Update
Note: Bovis Homes half year trading update is expected to show "no material differences from other housebuilders," according to Citigroup analyst Aynsley Lammin. He notes modest exposure to the South East has limited the housebuilders progress in the period. Lammin says that focus will be on Bovis Homes strong landbank, which has consistently improved margins above rivals in the sector. Has 2-Mo target price of 1106p.
Marks & Spencer (MKS.LN): Trading Update
Note:Dresdner Kleinwort raises Marks & Spencer target to 720p from 695p, based on an updated DCF analysis. Says 3Q expectations are high but should be met. "Trading is likely to be a rare bright spot in a difficult clothing sector where weakness, outside weather, is in good part a function of M&S strength." The bank is cautious to issue a re-rating and asks the question "Can M&S expand clothing market share beyond the recovery phase?" Maintains at hold.
OTHER SCHEDULED EVENTS:
Abbeycrest (ACR.LN): Trading Update
Air Berlin (AB1.XE): December Traffic Data
Alfred McAlpine (MCA.LN): Trading Update
Beneteau (3516.FR): 1Q Revenue
Big Yellow Group (BYG.LN): Trading Update
Blooms of Bressingham (BBR.LN): Trading Update
BP (BP.LN): Trading Update
Carrs Milling (CRM.LN): AGM
Cobra Bio-Manufacturing (CBF.LN): FY Earnings
Cybergun (403183.FR): 1H & Q3 Revenue
Dominos Pizza (DOM.LN): Trading Update
Dunelm Group (DNLM.LN): Trading Update
EGIS Pharmaceuticals: 1Q Earnings
Finnair (FIA1S.HE): December Traffic Data
Galliford Try (GFRD.LN): Trading Update
Halladale Group (HDG.LN): 1H Earnings
Inter Link Foods (ITF.LN): 1H Earnings
Northern Foods (NFDS.LN): EGM
Northgate (NTG.LN): 1H Earnings
Norwegian Air Shuttle (NAS.OS): December Traffic Data
Rightmove (RMV.LN): Trading Update
SAS (SAS.SK): December Traffic Data
Savills (SVS.LN): Trading Update
Uniq (UNIQ.LN): EGM
VBG (VBG-B.SK): EGM
(MORE TO FOLLOW) Dow Jones Newswires
January 09, 2007 01:47 ET (06:47 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.
09 Jan 2007 06:47 GMT =DJ EUROPEAN MORNING BRIEFING: Div Payments & Ex Div Dates
Caledonia Investments (CLDN.LN): 1H 2006 Dividend Payment Date
Dee Valley Group (DVW.LN): 1H 2006 Dividend Payment Date
Detica Group (DCA.LN): 1H 2006 Dividend Payment Date
Gas Natural (GBAN.BA): 1H 2006 Dividend Payment Date
Tate & Lyle (TATE.LN): 1H 2006 Dividend Payment Date
(END) Dow Jones Newswires
January 09, 2007 01:47 ET (06:47 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.
