Filed under: Equities, Economy, Europe

In Europe on Monday, the FTSE Eurofirst 300 added 0.4 percent to 1,321.04 as quarterly earnings reports began to be issued by European companies.

French property group Unibail added 1.7 percent to €135.10 ahead of its half-year earnings report, due later in the month. Merrill Lynch upgraded Unibail to “buy” based on the upward trend of office rents in Paris and issued a target share price of €150.

In the semiconductors sector, STMicroelectronics dropped 0.4 percent to €12.20 after a downgrade from “buy” to “neutral” and a decrease in its target share price from UBS. On the other hand, UBS reissued “buy” ratings for both ASML and Phillips Electronics. ASML added 0.5 percent to €15.44, while Phillips was up 1.1 percent to €23.96. Elsewhere, Infineon gained 1.7 percent to €8.98.

The oil sector saw declines as crude oil prices fell from record highs last week. OMV was down 1.8 percent to €47.71, while Statoil dropped 1.9 percent to NKr183.50.

In the pharmaceuticals sector, Roche added 0.6 percent to SFr207.20 after it said that it has filed with European regulators to gain approval for its drug Avastin for use against breast cancer. In addition, the way was cleared via a ruling from the International Trade Commission for Roche to apply for US approval for CERA, an experimental anemia drug.

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Permalink: Eurofirst up by 0.4 percent

Filed under: Equities, Economy, Europe

European equities markets saw only small gains over the week as investors worried about what will happen concerning interest rates. The FTSE Eurofirst 300 dropped 0.2 percent on Friday but managed a 0.2 percent gain on the week to close at 1,316.45.

Some sectors did see gains on the week. Air carriers were helped out by a report from EasyJet that it had seen 15.6 percent more passenger traffic in June and predicted good profits growth for the year. Air France-KLM added 0.7 percent during the week to €18.51, while Ryanair was up 8.6 percent to €7.71, also on increased passenger traffic in June. Ryanair reported a 23 percent increase in passenger traffic over the same period last year.

The oil sector was up as well as crude oil prices reached new record highs during the week. Neste Oil was up 0.8 percent on the week to €27.75, while Norsk Hydro added 5.5 percent to NKr174 and Statoil advanced by 6 percent to NKr187.

Aerospace and defense group EADS added 3.2 percent on Friday after its new co-chief executive said that the company’s first priority was to regain investors’ confidence, but it still was down 3.5 percent to €21.7 after Rothschild questioned the valuation of Airbus. EADS owns 80 percent of Airbus.

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Permalink: Eurofirst gains 0.2 percent over week

Filed under: Equities, Economy, US

The New York equities markets were generally lower by midday on Friday as the Labor Department released new data showing that fewer jobs were created in the US in June than had been predicted. The Dow Jones Industrial Average was down 0.7 percent to 11,149.50, a drop of 0.1 percent on the week. The Nasdaq Composite dropped 0.4 percent to 2,146.83, a decline of 1.2 percent over the week. The S&P 500 was nearly even, having lost only 1.16 points to 1,272.92, leaving it with a gain of 0.2 percent on the week.

The news that only 121,000 jobs had been created in the US in June was a disappointment after a gain of 200,000 had been predicted. The high expectations had been raised by Wednesday’s National Employment Report from payroll services company ADP, which said that 368,000 new jobs had been created during June. The Labor Department numbers, along with figures showing that higher than expected wage inflation during the month, made investors nervous.

Ebay dropped 7.9 percent to $26.99, largely on a downgrade from Citigroup, which lowered its target share price on the online auctioneer by over 20 percent to $40 earlier in the week. In addition, Ebay said that it was installing new senior executives in several divisions.

Changes in personnel also led to a decline for PMC Sierra in the semiconductors sector, as the chipmaker declined by 18.4 percent to $7.67 after it said its chief financial officer is leaving the company.

Climbing oil prices led to advances in the oil sector. ConocoPhillips added 4.9 percent during the week to $68.74, while Marathon Oil was up 5 percent to $87.50.

Also up on higher commodities prices was Newmont Mining, which was up 4.4 percent to $55.25.

Tobacco companies also saw gains on the week after the Florida Supreme Court set aside a $145 billion dollar punitive damages award against the US tobacco industry. Reynolds American added 1.6 percent to $117.19, while Altria gained 5.5 percent to $77.45.

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Permalink: Jobs data sends Wall Street lower

Filed under: Equities, Economy, UK

In London on Friday, equities markets saw declines for the day but ended the week slightly higher. The FTSE 100 dropped 0.02 percent to 5,888.9, but its closing level was good for a 1 percent rise over the week. Meanwhile, the FTSE 250 ended the session 0.3 percent lower to 9,431.6 but managed and 0.1 percent gain for the week.

The airlines sector saw gains over the week. British Airways was up 3 percent to 359p on the strength of an 8.7 percent gain to 425p by low-cost air carrier EasyJet, which adjusted its full-year profit growth forecast upward to between 40 and 50 percent. Earlier, it had said that profits would grow around 15 percent for the year.

Shire Pharmaceuticals added 1 percent to 811p amid talk that it could be the target of a private equity bid. UBS said that an offer of up to £10.50 per share for Shire could still make a buyer good profit.

Among steelmakers, Corus gained 4.4 percent to 451p as rumors continued that two Russian millionaires, one the owner of Russian company Severstal, are considering a joint bid.

SAB Miller dropped 1 percent on Friday to 960½p as investors feared that this weeks Florida Supreme Court ruling vacating a $145 billion (£79 billion) damages award against US tobacco companies would lead to the sale of 28.7 percent of the brewer by Altria. The concerns have arisen because Altria, which also owns US cigarette maker Phillip Morris, is free to break off parts of its holdings now that it no longer has to worry about paying any part of the damage award. Not all analysts, however, are convinced that Altria will sell its stake in SAB.

PartyGaming dropped 5.9 percent to 108p, also on legal activity in the United States. Investors in the internet gaming company are worried about a debate in the US House of Representatives, scheduled for next week, on legislation that is designed to outlaw online gambling in the US. Analysts expect the new law to pass in the House, but don’t believe that it will make it to the Senate for a vote before elections in November.

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Permalink: London markets down Friday, up on week

Filed under: Equities, Economy, US

At midday on Thursday, New York equities markets were up after new data showed that the US economy was moderating but not falling off sharply when the Institute for Supply Management’s non-manufacturing index dropped more than had been expected in June. By mid-session, the Dow Jones Industrial Average was up 0.8 percent to 11,237.15, while the Nasdaq Composite and the S&P 500 had each added 0.4 percent, to 2,160.99 and 1,275.86 respectively.

In the retail sector, Costco declined by 2.7 percent to $55.29 on sales figures that were lower than expected in June. Elsewhere in the sector things were better, with Target up 1.4 percent to $48.94. TJX, which owns TJ Maxx and Marshall’s, added 3.5 percent to $23.00. Dollar General advanced by 4 percent to $14.39.

The energy sector was mixed. Peoples Energy was up 8.4 percent to $38.99 on the news that it is talking to WPS Resources about a merger. The news sent WPS down 4.5 percent to $47.92. In other mergers and acquisitions news, Peabody Energy added 5 percent after it said it would buy Australian coal company Excel coal. The Peabody announcement helped rival Arch Coal to advanced 2.3 percent to $43.22.

With the announcement that the Florida Supreme Court has upheld a lower court ruling that threw out a $145 billion damage award against the tobacco industry, tobacco stocks were up substantially. Reynolds American added 4.1 percent to $119.01, while Altria was up 6.6 percent to $78.19, its biggest one-day gain since November 2004.

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Permalink: New York markets up on data

Filed under: Equities, Economy, UK

The equities markets in London saw gains on Thursday, with the FTSE 100 adding 1.1 percent to 5,890 and the FTSE 250 up 0.4 percent to 9,461.6 on a volume of 2.6 billion shares.

Of the total number of shares traded, 93 million belonged to foods manufacturer RHM. The shares, 26.6 percent of the company, were sold at 266p per share. RHM ended the session 2.2 percent higher at 274½p.

In the banking sector, Northern Rock added 2.1 percent to £10.53 after Merrill Lynch advised its clients to buy Northern Rock and to sell Alliance & Leicester after Credit Agricole decided not to offer for A&L. A&L dropped 2.7 percent to £10.55.

Rentokil Initial added 2.7 percent to 159½p on talk that a private equity group has bid 185p per share for the pest control company.

In the tobacco sector, British American Tobacco was up 2.6 percent to £14.16 after the Florida Supreme Court confirmed a lower court ruling that threw out a damage award to $145 billion (£79 billion) against the US tobacco industry. BAT owns 42 percent of US cigarette manufacturer Reynolds American.

Retailer Woolworths added 5.6 percent to 33p as Morgan Stanley began coverage with an “overweight” recommendation and a target share price of 38p.

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Permalink: FTSE 100 adds 1.1 percent

Filed under: Equities, Economy, Europe

In Europe on Thursday, the FTSE Eurofirst 300 added 1 percent to 1,318.78 despite more comments from the president of the European Central Bank that point toward future hikes in interest rates in the region.

In the oil sector, stocks advanced even though crude oil prices stepped back from yesterday’s record highs. Neste Oil went as high as €27.90 during the day after Merrill Lynch raised the company’s target share price from €33 to €36. By the close, Neste had retreated to €27.57, still 3.3 percent higher. Meanwhile, Repsol YPF was up 1.9 percent to €22.56, while Statoil added 2.8 percent to NKr181 and OMV gained 3.6 percent to €48.70.

Automobile manufacturers saw some gains on the session. Peugeot was up 0.1 percent to €48.80 on the announcement that global sales were 0.6 percent higher in the first half of 2006. Renault added 2.8 percent to €83.55 even though its sales were weak in the first half of the year.

The airlines sector saw gains despite higher crude oil prices. Alitalia gained 1.1 percent to €0.91 after the an Italian government agency provisionally approved it’s purchase of rival Volare. Lufthansa was up 1.4 percent to €14.52, while Air France-KLM advanced by 1.5 percent to €18.51.

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Permalink: Oil stocks take Eurofirst higher

Filed under: Equities, Economy, US

Wall Street was down on Wednesday as investors expressed fears over missile tests conducted by North Korea as the United States celebrated Independence Day. At midday, the Dow Jones Industrial Average had dropped 0.7 percent to 11,145.26, while the Nasdaq Composite lost 1.7 percent to 2,152.72 and the S&P 500 fell 0.9 percent to 1,268.94.

Miners were down and so was the steel sector. Among miners, Phelps Dodge dropped 1.9 percent to $82.05, while Freeport McMoran was down 4.3 percent to $56.00.

In the steel sector, US Steel declined by 3 percent to $68.08. Nucor was down 3.3 percent to $54.08.

Airlines saw gains on the release of new data on passenger traffic. Continental Airlines and Southwest Airlines each added 1.6 percent by mid-session on the news that passenger traffic had increased for both carriers in June. Continental was trading at $29.98, while Southwest was at $16.74.

McGraw Hill gained 2.1 percent to $51.39 after Citigroup upgraded the publisher of Business Week from “hold” to “buy”.

Pharmaceutical company Eli Lilly also got a boost as Goldman Sachs upgraded its shares from “in line” to “outperform”, adding 1.1 percent to $56.28.

The semiconductor sector, however, saw declines. Advanced Micro Devices dropped 1.3 percent to $24.28, while Intel declined by 2 percent to $18.98. Marvell Technology was down by 7.9 percent to $41.32 after it said that the Securities and Exchange Commission had asked it to supply documents concerning its practices surrounding the granting of stock options.

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Permalink: Wall Street lower at noon

Filed under: Equities, Economy, Asia, Japan

The Tokyo equities markets were down on Wednesday after it was revealed that North Korea had test fired several missiles, but declines were moderate. Some analysts attributed the muted reaction to the tests to the relative strength of the markets, especially after Monday’s strong Tankan report and low unemployment figures from last week. The Nikkei 225 dropped 0.7 percent to 15,523.94 and the Topix index was down 0.8 percent to 1,589.97.

Japan Airlines had losses early in the day as investors feared that an uncertain political situation would make people afraid to fly, but by the end of the day JAL had gained back the losses to close even at ¥277.

The electronics sector saw declines based on fears of what the Korea situation would do to the global economy. Sony dropped 0.8 percent to ¥5,060, while Sharp lost 1.5 percent to ¥1,809 and Matsushita Electric Industrial was down 1.7 percent to ¥2,360.

Automobile manufacturers felt the brunt of investor nervousness more strongly. Toyota fell 1.2 percent to ¥5,940, while Nissan dropped 1.9 percent to ¥1,239 and Honda was down 2.2 percent to ¥3,600.

Companies that have defense-related manufacturing among their interests saw substantial gains. Howa Machinery, which makes firearms in addition to industrial machinery, gained 6.3 percent to ¥204, while Ishikawa Seisakusho, which makes defense equipment in addition to textile machinery, added 17.2 percent to ¥204. However Mitsubishi Heavy Industries, Japan’s biggest manufacturer of defense equipment, was up by only 0.4 percent to ¥496.

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Permalink: Tokyo markets lower after missile tests

Filed under: Equities, Economy, Europe

Weakness in the automobile manufacturing sector hurt European stock markets on Tuesday, but strength in other sectors allowed the FTSE Eurofirst 300 to close 0.2 percent higher at 1,321.46.

The steel sector saw advances as ThyssenKrupp did the best among blue-chip stocks with a gain of 3.8 percent to €28.64 after it said it will buy back as much as 5 percent of its shares. West LB saw this as a sign that further consolidation in the sector will follow the Arcelor-Mittal merger.

Banks also did well amid mergers and acquisitions rumors. BBVA of Spain added 1.9 percent to €16.55 on talk that it could merge with HSBC. It was also helped by hopes that the results of the presidential election in Mexico, where it generates a substantial part of its earnings, could be beneficial to business. Elsewhere in the Spanish banking sector, Deutsche Bank issued positive comments about Banco Santander Central Hispano and Banco Pastor, sending their share values up 0.4 percent to €11.49 and 2.9 percent to €10.60 respectively.

Among carmakers, Volkswagen dropped 0.1 percent to €55.14 and Peugeot declined by 0.9 percent to €48.85. DaimlerChrysler fell 0.7 percent to €38.50 after new data showed that while its Mercedes Benz sales were up by 14 percent last month, sales by its US Chrysler unit were down 15 percent in the month. In addition, Morgan Stanley cut DaimlerChrysler’s target share price from €50 to €46.

Elsewhere in the sector, Fiat was down 1.8 percent to €10.349 on a downgrade from “neutral” to “sell” from Merrill Lynch. Renault was also 1.8 percent lower, to €82.70, after it said that it will explore the idea of an alliance with General Motors if GM proposes such a move.

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Permalink: European carmakers see declines

Filed under: Equities, Economy, UK

Equities markets in London were mixed but closed very close to Monday’s levels on Tuesday as investors indulged in profit-taking after gains in the past four trading sessions. The FTSE 100 dropped 0.02 percent, less than a point, to 4,883.5. The FTSE 250 was up 0.09 percent to 9,505.6. With US markets closed for the Independence Day holiday, volume was light with only 1.9 billion shares trading hands.

The property sector saw gains among both blue-chip and mid-cap stocks. On the 100, both British Land and Land Securities added 2.8 percent, to £13.33 and £18.79 respectively. Hammerson gained 3.1 percent to £12.41. Over on the 250, Shaftesbury was up 4.8 percent to 549p, while St Modwen rose 4.9 percent to 469p and Great Portland Estates gained 534¾p.

Among telecoms, Vodafone was up 1 percent to 119p on positive comments from Deutsche Bank.

Positive sentiment from Goldman Sachs sent Marks & Spencer 1.9 percent higher to 598p, as it added the retailer to its ‘Conviction Buy List’.

On the other hand AstraZeneca dropped 2.7 percent to £32.19 when ING downgraded the drug maker from “buy” to “hold”, saying that its 12.7 percent share price rise in the past month raises issues of valuation.

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Permalink: FTSE 100 declines, but only slightly

Filed under: Equities, Economy, Asia, Japan

The Tokyo equities markets were up on Tuesday as concerns that the US will raise interest rates again soon retreated. Export-reliant stocks did better than domestic stocks even though new data has supported the idea that the Japanese economy continues to recover. The Nikkei 225 added 0.4 percent to 15,638.50, while the Topix index gained 0.6 percent to 1,602.43. It was the first time in nearly a month that the Topix managed to close above the 6,000 level.

Retailers continued to rally with evidence that summer shoppers were active. Aeon and Isetan each added 1.8 percent, to ¥2,615 and ¥2,035 respectively. Department store operator Mitsukoshi gained 2.5 percent to ¥569.

Consumer electronics makers saw gains on expectations that the US market would continue to be strong. Kyocera was up 1.4 percent to ¥9,010. Sony also added 1.4 percent, to ¥5,100. Digital camera maker Canon gained 3.4 percent to ¥5,740.

Automobile manufacturers were also up on the session. Nissan was up 0.5 percent to ¥1,263, while Toyota gained 0.8 percent to ¥6,010. Mazda added 5.2 percent to ¥768 on an upgrade from “neutral” to “buy” from Goldman Sachs.

Japan Airlines, meanwhile, recovered a bit of Monday’s losses when it gained 1.5 percent to ¥277.

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Permalink: Tokyo markets gain on exporters

Filed under: Equities, Economy, Europe

Gains in the oil and banking sectors helped European equities markets higher on Monday. The FTSE Eurofirst 300 added 0.4 percent to 1,318.95.

Carmaker Renault added 0.2 percent to €84.20 ahead of a board meeting set to discuss whether it will, along with Nissan, go into business with US automaker General Motors. At least one analyst said that such a partnership would make sense, but that it should be approached carefully considering the relatively weak position of GM at present.

The banking sector was mixed, but still helped out European markets as a whole. The National Bank of Greece dropped 4.1 percent to €29.62 on profit taking after a gain of almost 9 percent on Friday. Elsewhere, things were better. Banca Popolare Italiana added 6 percent to €7.77 after an Italian newspaper reported over the weekend that Societe Generale, Fortis, and Deutsche Bank had all approached Popolare with bids. Deutsche Bank gained 0.5 percent to €88.40, Societe Generale was up 0.9 percent to €116, and Fortis advanced by 1.6 percent to €27.10.

Among oil stocks, Cepsa gained 1.4 percent to €55.85, while Statoil added 1.7 percent to NKr179.50.

EADS dropped 0.8 percent to €22.28 after Rothschild valued the 20 percent of Airbus that BAE Systems owns at a lower figure than had been expected. BAE Systems also declined, by 3.3 percent. EADS also announced, over the weekend, that co-chief executive has resigned over the Airbus A380 delays and investigations into his financial dealings and that the head of Airbus, Gustav Humbert, was also stepping down.

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Permalink: Eurofirst gains on banks, oil

Filed under: Equities, Economy, Asia, Japan

The Tokyo equities markets were up slightly on Monday after a new Tankan survey from the Bank of Japan showed that large companies are planning much larger levels of capital spending than they said they were in the last survey. The new numbers show that businesses are confident that the Japanese economic recovery will continue, and hinted that the Bank will abandon zero interest rates sooner rather than later.

The Nikkei 225 and the Topix index each added 0.4 percent, to 15,571.62 and 1,593.22 respectively.

The retail sector gained 1.2 percent as a whole. General retailer Aeon added 2.4 percent to ¥2,570, while department store chain Isetan gained 2.5 percent to ¥1,999. Another department store chain, Mitsukoshi, was up 6.1 percent to ¥555 after it announced strong operating profits for the quarter ending in May.

Miners saw advances as commodity prices rose once again. Mitsubishi Materials gained 3.1 percent to ¥503, while Sumitomo Metal Mining advanced by 5.4 percent to 1,572.

Japan Airlines dropped 4.9 percent to ¥273 after Friday’s news that it will have to sell new shares to update its fleet and cut debt.

Komatsu, the construction machinery maker, added 2.2 percent to ¥2,325.

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Permalink: Nikkei, Topix gain on Tankan survey

Filed under: Equities, Economy, US

Stocks were up but trade was light at midday in New York on Monday ahead of the Independence Day holiday coming up on Tuesday. The Dow Jones Industrial Average, the Nasdaq Composite and the S&P 500 were each 0.7 percent higher at mid-session. The Dow had gained 77.32 points to 11,227.54, while the Nasdaq was up 14.44 points to 2,186.53 and the S&P added 9.31 points to 1,279.51.

Technology stocks saw gains. Hewlett Packard was up 2.8 percent to $32.58 after it agreed to include a port technology in its laptops that would let those machines use multiple peripheral devices. Computer Sciences Corporation recovered some of its 13 percent loss on Friday, gaining 4.3 percent to $50.65. The losses last week came when CSS said it was no longer interested in mergers.

The oil sector was up as crude oil prices went higher. ConocoPhillips added 2.2 percent to $66.98, while Anadarko Petroleum gained 2.5 percent to $48.88.

Miners also were higher. Alcoa was up 2.9 percent to $33.29 on talk that it could be the target of takeover activity, while Newmont Mining gained 4.4 percent to $55.26 and Freeport McMoran advanced by 4.7 percent to $58.01.

In the retail sector, Wal-Mart dropped 1.3 percent to $47.53 on the announcement that June sales would only make the lower end of expectations. Home decorating retailer Michaels, however, added 2 percent to $42.08 on the announcement that it will sell to two private equity groups for over $6 billion.

The automobile manufacturing sector saw declines. Despite early gains, General Motors was down by 0.6 percent at mid-session to $29.60 as Renault and Nissan said they would talk about extending their partnership to include GM, as had been suggested last week by Kirk Kerkorian, the largest single shareholder in the US carmaker. Ford fell 3.3 percent to $6.70 when it said it would achieve its intention of making 250,000 hybrid cars per year by 2010.

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Permalink: New York equities markets rise ahead of holiday

Filed under: Equities, Economy, Asia, Japan

The Tokyo equities markets were up strongly on Friday after Thursday’s gains on Wall Street in the wake of another hike in US interest rates by the Federal Reserve. The Nikkei 225 and the Topix index each added 2.5 percent on the day to 15,505.18 and 1,586.96 respectively. Export-focused stocks were helped by expectations of higher demand in the United States, while domestic stocks also saw advances.

In the electronics sector, Advantest and Tokyo Electron each added 2.8 percent, to ¥11,660 and ¥8,000 respectively..

Construction machinery maker Komatsu gained 3.4 percent to ¥2,340. Industrial robot maker Fanuc was up 3.2 percent to ¥10,280.

Automobile manufacturers also saw gains. Toyota advanced by 4.2 percent to ¥5,990, while Nissan added 5 percent to ¥1,250 after declines earlier in the week. Mazda also gained 5 percent, to ¥717.

The banking and real estate sectors were also up on Friday. Chiba Bank gained 4.5 percent to ¥1,070, while Bank of Yokohama was up 6.6 percent to ¥885 and Mitsui Trust added ¥1,375.

In real estate, Mitsui Fudosan advanced by 4 percent to ¥2,485, Tokyo Tatemono added 4.1 percent to ¥1,226, and Daiwa House gained 5.8 percent to ¥1,830.

Among the losers on the day was department store chain Takashimaya, which was down 0.6 percent to ¥1,436 after it said its first quarter earnings had been lower than had been expected.

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Permalink: Wall Street leads Tokyo markets higher

Filed under: Equities, Economy, Europe

The FTSE Eurofirst 300 was up 2.4 percent this week to 1,313.62, for its best week since January, but it was down by 4.1 percent in the second quarter of 2006. The 300 has added 3 percent since the beginning of the year, but it will need to make up a lot of ground if it is to match its 2005 full-year gain of over 20 percent.

The steel sector saw gains on the week after Arcelor rejected a bid from Severstal, which was seen leaving room for an already-arranged merger with Mittal Steel. Arcelor added 7.8 percent during the week to €37.74. Elsewhere in the sector, ThyseenKrupp gained 3.8 percent to €26.77, while Salzgitter was up 6.9 percent to €66.37. Voestalpine advanced by 7.3 percent to €117.60.

European tiremakers saw declines after Japanese tiremaker Bridgestone of Japan cut its profits estimate for the year. Michelin was down 1.3 percent on the week to €47, while Continental fell 1.6 percent to €79.92.

Danish shipper AP Moller-Maersk declined by 5.2 percent to DKr45,400 on a reduced profits forecast for the year due to sub-par performance in its container shipping unit.

Bayer added 4.5 percent on Friday and 8.4 percent on the week to €35.94 after it said that it will sell part of its diagnostics unit to Siemens, which added 0.8 percent on the day Friday and 0.2 percent during the week to €68.03. Several banks either upgraded or reiterated their positive recommendations for Bayer during the week.

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Permalink: Eurofirst up 3 percent since January

Filed under: Equities, Economy, UK

The FTSE 100 and FTSE 250 both saw gains on Friday and for the entire week, but both were lower for the second quarter of the year. The 100 ended the day 0.7 percent higher to 5,833.4. This meant a gain of 2.5 percent this week, but still left it 2.2 percent lower in the second quarter of 2006. The 250 ended the day up by 1.3 percent to 9,422.7, also a 2.5 percent gain for the week. It dropped 4.3 percent during the quarter, however. Trade volumes on the day were higher than they have been, with more than 3 billion shares trading hands.

Miners were up as the news of another interest rate hike in the United States sent metals prices higher. BHP Billiton gained 1.75 percent to £10.49, while Anglo American added 2.5 percent to £22.18 and Xstrata was up 3.1 percent to £20.50.

In the steel sector, Corus advanced by 2.5 percent to 456½p as rumors persisted that India’s Tata Steel is interested in making a bid.

Among utilities, Centrica added 4.1 percent to 285¼p after the head of Gazprom said during a news conference in Moscow that while there are not talks going on presently, he is still interested in purchasing the owner of British Gas. Gazprom recently bought Pennine Natural Gas, based in Cheshire.

In the semiconductor sector, Wolfson Microelectronics gained 4.3 percent to 115¼p on a reconfirmation of a “buy” recommendation from ABN Amro.

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Permalink: London trade volume improves

Filed under: Equities, Economy, US

The New York equities markets were down slightly at mid-session on Friday after gains on Thursday as the Federal Reserve announced yet another interest rate hike. But, while the markets slumped after starting strongly again Friday morning, they still looked to end the week with gains overall.

The Dow Jones Industrial Average was 9.44 points lower at mid-session, to 11.181.36, while the Nasdaq Composite dropped 0.2 percent to 2,170.39 and the S&P 500 was only 0.3 points lower, to 1,272.57. However, the Dow was on track to see a gain of 1.7 percent this week, while the Nasdaq and the S&P were each up 2.3 percent on the week. The quarterly news wasn’t as good. While the Dow managed an 0.6 percent rise in the second quarter, the S&P was 1.7 percent lower in the quarter and the Nasdaq has fallen 7.2 percent since the end of March. Those figures leave the Dow up 4.3 percent in the first half of the year, the S&P up 1.9 percent in the first half, and the Nasdaq 1.6 percent lower. The losses in the Nasdaq reflect the difficulties that technology stocks have had so far this year.

That trouble in the technology sector was reflected in the week’s activity for data storage system maker EMC Corp and flash memory products manufacturer Micron Technology. EMC and Micron each dropped 8.6 percent on the week, to $10.54 and $15.00 respectively. EMC’s investors were concerned that it had offered to much to purchase IT security company RSA Security, while Micron’s stockholders were not happy with its quarterly report.

On the other hand, chipmaker Intel added 5.7 percent during the week to $19.02 on the launch of a new microprocessor for computer servers and the news that it has sold its unit to make chips for hand-held devices to Marvell Technology.

In the automobile manufacturing sector, General Motors added 7 percent ton the week to $28.86 after dropping substantially on Tuesday when it said that sales in 2006 would be below 2005 levels. But receipt of a letter from investor Kirk Kerkorian on Friday that said Renault and Nissan are both interested in purchasing stakes in GM sent shares higher.

ExxonMobil added 6.8 percent on the week to $62.05 as crude oil prices were on the rise again.

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Permalink: New York markets up on week

Filed under: Equities, Economy, US

Wall Street saw gains by midday on Thursday as the Dow Jones Industrial Average, the Nasdaq composite, and the S&P 500 were all up by 0.8 percent. The Dow stood at 11,056.97, while the Nasdaq was at 2,129.55 and the S&P had reached 1,255.34. The gains came ahead of any announcement concerning interest rates from the US Federal Reserve.

Miners were up as the prices of gold and copper went higher. Newmont Minng added 2.1 percent to $50.28, while Barrick Gold was up 2.7 percent to $28.55 and Freeport McMoran advanced by 3.4 percent to $51.86.

Oil stocks were higher as well as the price of crude oil topped $73 per barrel. Sunoco was up 3 percent to $67.23, while Valero added 3.1 percent to $65.37, a six-week high. Duke Energy gained 3.6 percent to $29.39 after it said it will spin off its natural gas business. The announcement spurred an upgrade from “equal weight” to “overweight” from Lehman Brothers.

Technology stocks were mixed. In the semiconductor sector, Micron Technology dropped 6.7 percent to $14.89 after it issued a third quarter report that was disappointing even though it showed a profit during the period this year after having sustained losses during the same time last year. Software maker Red Hat was down 8.9 percent to $22.78 on an earnings report that was below expectations due to acquisitions and accounting charges.

On the other hand, Microsoft and Yahoo were both up at mid-session. Microsoft added 1.2 percent to $23.43, while Yahoo had gained 1.7 percent to $32.45.

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