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Monday 10th of January 2011
January 7, 2011    

ARM Holdings drops 4.41 percent on FTSE 100

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by Elaine Frei
ARM Holdings drops 4.41 percent on FTSE 100

European equities markets were lower Friday after the US Labor Department reported that just 103,000 jobs were created in the US economy in December, well below the expected number of 150,000, although it also said that the unemployment rate dropped to 9.4 percent during the last month of 2010.

Declines also came after miners declined on lower metals prices during the week, as copper prices fell on concerns that China will tighten its monetary policy again, cutting into demand for the metal used in construction and manufacturing.

The FTSE 100 was 0.58 percent lower to 5,984.33 in London, while the FTSE 250 dropped 0.36 percent to 11,674.3.

Chipmaker ARM Holdings (LSE: ARM) was down 4.41 percent to lead declines on the 100 after gains earlier in the week after Microsoft (NAS: MSFT) confirmed reports that a new version of its Windows operating system will run on ARM-designed chips, while the worst performer on the 250 came from the energy sector, where JKX Oil & Gas (LSE: JKX) dropped 10.55 percent to lead declines in a mixed sector.

The declines in prices for copper and other metals send most miners lower, led by a 4.73 percent decline for Kenmare Resources (LSE: KMR), while only two sector constituents saw gains as Talvivaara Mining Company (LSE: TALV) added 1.27 percent and Aquarius Platinum (LSE: AQP) was up 0.36 percent.

Smith & Nephew (LSE: SN) was down 1.89 percent after UBS dropped its recommendation on the medical device manufacturer from “buy” to “neutral”.

Airlines were higher in London as easy Jet (LSE: EZJ) added 4.18 percent as the best performer in a mostly lower travel and leisure sector after it said the number of passengers it carries was up by 7.9 percent last year, while British Airways (LSE: BAY) gained 1.6 percent.

Also gaining in the travel and leisure sector was hotels and pubs operator Whitbread (LSE: WTB), which was up 1.67 percent.

Most retailers saw gains, led by J. D. Sports Fashion (LSE: JD), which added 3.41 percent while automobile retailer Inchcape (LSE: INCH) was up 2.92 percent.

The best performance on the 100 came from automobile and aerospace engineering group GKN (LSE: GKN) with a gain of 4.41 percent, while over on the 250 advances were led by asset managers F & C Asset Management (LSE: FCAM), which was up 4.5 percent.

The FTSE Eurofirst 300 was down 0.23 percent to 1,144.58 while the Dax fell 0.48 percent to 6,947.84, the CAC-40 was 0.99 percent lower to 3,865.58 and the IBEX dropped 1.46 percent to 9,560.7.

Most markets in the Asia-Pacific region were lower Friday as commodities prices dropped.

There were a few gainers, however, including Japan’s markets, where the Nikkei 225 was up 0.11 percent to 10,541, while the Topix index ended its best first week of the year in fifteen years with a gain of 0.21 percent to 926.42 and the Mothers market was 0.88 percent higher to 449.56.

Automobile manufacturers were higher on analyst expectations that North American car assembly could be five percent higher this year to a total of 12.6 million vehicles, with Toyota Motor (TYO: 7203) up 2.2 percent while Nissan Motors (TYO: 7201) added 4.4 percent.

Additionally, tire manufacturer Bridgestone (TYO; 5108) gained 2.6 percent.

Oil companies were lower after prices for crude oil fell again yesterday, with Inpex (TYO: 1605) and Japan Petroleum Exploration Co (TYO: 1662) each down 1.7 percent on the session, while traders also declined on the falling prices for oil and metals.

Australian markets were lower as the Sydney Ordinaries dropped 0.4 percent to 4,812 and the S&P/ASX200 was down 0.42 percent to 4,705.

Hong Kong’s Hang Seng was also 0.42 percent lower, to 23,686.6, while the Straits Times Index was down 0.56 percent to 3,261.35 in Singapore, Taiwan’s Taiex fell 1.13 percent to 8,782.72 and the Sensex dropped 2.44 percent to 19,691.8 in India on concerns that the Reserve Bank of India could raise interest rates when it meets later this month as it attempts to contain inflation there.

The Kospi added 0.41 percent to 2,086.2 in South Korea, while the Shanghai Composite was up 0.52 percent to 2,838.8 as China’s banks and property developers saw gains on the belief that they are undervalued at present.

New York markets were lower after investors were disappointed in the number of new jobs created in the US economy last month, and after banks declined on a ruling by the Massachusetts State Supreme Judicial Court, the oldest continuously operating appellate court in the Western Hemisphere, which held two foreclosures to be invalid because the banks which made the foreclosures, US Bancorp (NYSE: USB) and Wells Fargo (LSE: WFC) did not prove that they held the mortgages foreclosed on at the time of the foreclosures.

At nearly 1 p.m. in New York, the Dow Jones Industrial Average was down 0.79 percent to 11,604.8, while at the same time the S&P 500 had dropped 0.91 percent to 1,262.22 and the Nasdaq Composite was 1.1 percent lower to 2,680.

Crude oil prices were lower in midday trade in New York, with February contracts for West Texas Intermediate crude down 69 cents to $87.69 per barrel after being up earlier in the session, while at last report Brent crude was $1.18 lower to $93.34 per barrel.

Metals prices were also lower in New York, with gold down $5.40 per troy ounce from yesterday’s close while silver had dropped 32 cents per troy ounce and copper was down by 4 cents per pound.

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