September 29, 2005

Yen helped by retail sales

by Brian Turner
The Japanese yen was helped on Thursday by a new high on the Nikkei and strong retails sales figures in August, although there have been indications that investors are getting a bit nervous due to the recent string of substantial gains in the equities markets. The yen was up 0.2 percent to ¥135.83 versus the euro and it gained 0.3 percent to ...

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September 20, 2005

Interest rate raise causes falls on US equities

by Brian Turner
The New York equities markets started out on a positive note on Tuesday, but after the Federal Reserve raised interest rates by 25 basis points to 3.75 percent, the markets began to decline and the Dow Jones Industrial Average, the Nasdaq composite, and the S&P 500 all ended the day with losses. The Dow dropped 0.7 percent to 10,481.52, ...

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Tokyo equities markets optimistic on future

by Brian Turner
In the Tokyo equities markets, the Nikkei and Topix index were both up substantially on Tuesday on continuing optimism that Japan’s economic recovery will continue. The Nikkei 225 gained 1.5 percent to 13,148.57. It was the first time since 2001 that the Nikkei rose above the 13,000 mark. Meanwhile, the Topix index gained 1.1 percent to 1,343.78. ...

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FTSE sees small declines after strong trading

by Brian Turner
In London on Tuesday, the FTSE 100 lost 0.2 percent to 5,416.4, while the FTSE 250 closed nearly flat at 7,929.8. Volume was at 3.3 billion shares traded. Some of the decline was attributed to a slowing of mergers and acquisition rumors that have been a driving force in the market recently. In addition, investors seemed concerned ...

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Tesco sees profit rise but warns on future costs

by Brian Turner
Tesco, the UK’s largest supermarket chain announced on Tuesday that its profits grew by 18.7 percent in the first half of the year. At the same time, however, it warned that while it had budgeted for rising oil prices, the actual rise in costs might be as much as £60 million ($108 million) higher than what had ...

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September 19, 2005

New York markets down on interest rate expectations

by Brian Turner
The New York equities markets fell on Monday as investors seemed to be waiting for Tuesday‘s interest rate decision by the Federal Reserve. By the end of the trading day, the Dow Jones Industrial Average had dropped 0.8 percent to 10,555.80, the Nasdaq composite was down 0.7 percent to 2,145.21, and the S&P 500 had lost 0.6 percent ...

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German election results cause investor concern

by Brian Turner
The German election on Sunday, the outcome of which is seen key to economic reform in Germany, ended in a virtual stalemate, with Angela Merkel’s Christian Democrats claiming only three more seats in parliament than Gerhard Schroeder’s Social Democrats. Each side is claiming victory, and a mandate to rule, even though neither has enough votes to form a majority with ...

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September 16, 2005

Dollar up as analysts consider rate moves

by Brian Turner
Friday’s release of TIC data showing net capital inflows at $87.4 billion in July, well above what was expected and more than compensating for July’s trade deficit of $57.4 billion, helped the US dollar on world forex markets. The greenback didn’t seem bothered by data showing that the current account deficit was at $195.66 billion for the second quarter, ...

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Gold reaches 17-year high

by Brian Turner
The price of gold on US markets reached a 17-year high on Friday morning as December gold futures on the New York Mercantile Exchange’s COMEX index gained $2.40 to $461.70 per troy ounce in early trade after having gone as high as $464 per troy ounce in the opening few minutes of trade. The increase in prices has been put to buying ...

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CNOOC CFO speaks out on US political pressure

by Brian Turner
The chief financial officer of CNOOC, the Chinese oil company that made an unsuccessful bid to acquire US oil company Unocal earlier in the year, has spoken out about the political pressure brought to bear in the US to block the bid. Yang Hua’s comments, to journalists in Hong Kong on Thursday, not only revealed resentment about that ...

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September 15, 2005

Rising prices expected to slow growth as supply increases

by Brian Turner
The Organization of Oil Exporting Countries has predicted that rising prices at the pump will soon start to slow the growth of demand for gasoline. It predicted that demand in 2005 would increase by 1.7 percent to 83.5 million barrels per day. That was lower than its earlier forecast of a demand increase of 1.9 percent. ...

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Tokyo equities up on technology and commodities

by Brian Turner
The equities markets in Tokyo saw another day of gains on Thursday, helped by the commodities and technology sectors. The Nikkei 225 gained 1.2 percent to 12,986.78, while the Topix index was up 1.1 percent to 1,327.29. The iron and steel sector gained 3.5 percent, with Sumitomo Metal Industries gained 5.7 percent and Nippon Steel was up 4.5 ...

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FTSE reaches four-year high

by Brian Turner
In London on Thursday equities markets advanced, with the FTSE 100 rising to its highest level in four years. The FTSE 100 gained 0.7 percent to 5,383.5, while the FTSE 250 was up by 0.1 percent to 7,866.6. Volume on the day was fairly high at 3 billion shares traded. A significant factor in the day’s ...

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S&P warns insurance syndicates face ruin from hurricane

by Brian Turner
Standard & Poor’s has said that some of the syndicates in Lloyd’s insurance market could be forced to go out of business due to losses from Hurricane Katrina. The ratings agency was quick to point out that it was much too early to say which of the 62 syndicates might be affected, but that there were 20 which ...

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FTSE to upgrade South Korea and Taiwan to developed markets after 2007

by Brian Turner
The FTSE said on Wednesday that South Korea and Taiwan will not be upgraded to developed market status until at least 2007. This is not expected to have much impact on the two nations’ equities markets, it will delay the time when longer-term redistribution of some global fund flows could begin. The upgrade ...

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September 14, 2005

European equity markets nervous before German elections

by Brian Turner
European equities markets gained back a little ground on Wednesday despite continuing concern about the outcome of Sunday’s election in Germany and new gains in the price of crude oil. The FTSE Eurofirst 300 was up 0.3 percent to 1,205.27, while the Xetra Dax in Germany gained 0.2 percent to end the day at 4,911.17. The Frankfurt-based Dax ...

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Yen continues strong after elections

by Brian Turner
The yen was still being helped by the outcome of parliamentary elections last Sunday on the expectation that the continuation of Prime Minister Junichiro Koizumi’s government will promote more economic reform and allow the recovery to continue. The yen was also aided by a statement from the deputy governor of the Bank of Japan that its very loose monetary policy is ...

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September 13, 2005

UK equities down on light trading volume

by Brian Turner
The London equities markets were down on Tuesday amid a fairly light 2.7 billion shares traded. The FTSE 100 was down by 0.7 percent to 5,338.0, while the FTSE 250 dropped 0.9 percent to 7833.3. The biggest gainer of the day was Rentokil Initial, which was up 2.5 percent to 167p on continuing speculation as to whether Sir ...

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Japanese equities markets continue to climb

by Brian Turner
The Japanese equities markets continued to climb on Tuesday on optimism after last Sunday’s parliamentary elections. The Nikkei 225 gained 0.4 percent to 12,901.95, while the Topix index was up 0.5 percent to 1,315.76, a four-year high at the close. As on Monday, domestic stocks did well, but export-oriented shares were not far behind. Japan’s largest securities house, Nomura, ...

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USD stronger as trade deficit lower than expectations

by Brian Turner
The US dollar was stronger on Tuesday on US trade deficit data that was not as bad as had been expected. It had been predicted to be just under $60 billion in July, but ended up being $57.9 billion on the month. Non-oil imports were down, which helped keep the deficit limited. Even before the trade ...

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