Tuesday 6 October 2009

Forex: GBP/USD: Pound weakens further; below 1.5930 session high

Tue, Oct 6 2009, 11:06 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - The Pound continues trading lower after its reversal from 1.6050, and the pair has dipped below intra-day low at 1.5930 to levels right above 1.5900 at the time of writing.

Support levels, at the moment, lie at 1.5880 and below there 1.5770 (Sept 28 low) and 1.5755. On the upside, resistance levels remain at 1.6005/20, and above here 1.6050 intra-day high and 1.6125 (Sept 30 high), and 1.6200.

According to Stoyan Mihaylov, technical analyst at Deltastock.com, a clear break below 1.5900 could kick up a sell off towards 1.5766: "A clear break below 1.5901 is to be expected and it will initiate a massive sell-off for 1.5766, en route to 1.5352. The intraday bias is already negative with the recent break below 1.5961, so expect current rebound above 1.5937 to be corrective in nature and to give an entry point for the next leg downwards, to 1.5834."


EU Sets Rules For Electronic Payment Of Road Tolls Across EU

EU Sets Rules For Electronic Payment Of Road Tolls Across EU

BRUSSELS -(Dow Jones)- The European Commission Tuesday established rules to encourage a single system for electronic toll payments on European Union roads.

Several E.U. countries use electronic payments on toll roads, but these systems generally aren't useable across the bloc's borders, according to the commission, the E.U.'s executive arm.

A road trip to Denmark from Portugal requires five or more on-board units on a vehicle's dashboard, the commission said.

In the U.S., by contrast, E-ZPass, an electronic toll-payments system designed to link New York, New Jersey and Pennsylvania, now works with toll roads in 11 other states.

The commission wants a single E.U. system in place for heavy trucks and passenger buses within three years, with wider availability for passenger cars within five years.

"The European Electronic Toll Service will enable road users to easily pay tolls throughout the whole European Union thanks to one subscription contract with one service provider and one single on-board unit," European Commissioner for Transport Antonio Tajani said in a statement.

-By Adam Cohen, Dow Jones Newswires; +322 741 1486; adam.cohen@dowjones.com

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(END) Dow Jones Newswires

October 06, 2009 07:12 ET (11:12 GMT)

IMF:ECB Weber:Only Seeing Green Shoots, Downside Risks Remain

Tue, Oct 6 2009, 11:01 GMT
http://www.djnewswires.com/eu

IMF:ECB Weber:Only Seeing Green Shoots, Downside Risks Remain

ISTANBUL -(Dow Jones)- Recent positive signs in the global economy are too fragile for policy makers to assume growth has resumed, European Central Bank governing council member Axel Weber said Tuesday.

"We're only seeing green shoots...downside risks remain," Weber, who is also German Bundesbank president, said in a speech to the International Monetary Fund's board of governors at the IMF/World Bank annual meetings in Istanbul.

Fiscal and monetary stimulus measures adopted to combat the sharpest global recession in decades shouldn't be unwound at this point, said Weber.

Existing stimulus measures should remain in place until a recovery is clearly in sight, he added.

-By Christopher Emsden, Dow Jones Newswires; +39-02-58-21-99-05; chris.emsden@dowjones.com

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October 06, 2009 07:01 ET (11:01 GMT)


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Bank Of Spain Gov: Spain Economy Could Suffer A Long Slump


Tue, Oct 6 2009, 11:01 GMT
http://www.djnewswires.com/eu

Bank Of Spain Gov: Spain Economy Could Suffer A Long Slump

MADRID -(Dow Jones)- Spain's economy will likely recover later than others in Europe and could suffer a prolonged slump unless there are ambitious reforms, Bank of Spain Governor Miguel Angel Fernandez Ordonez said Tuesday.

In annual parliamentary testimony on the government's budget proposal for the following year, Fernandez Ordonez said tax and spending reforms are needed to rein in Spain's spiraling budget deficit.

-By Jonathan House, Dow Jones Newswires; +34 619 93 39 52; jonathan.house@dowjones.com

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October 06, 2009 07:01 ET (11:01 GMT)


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EU Clears Extension Of Italian Government Bank Support Plan

Tue, Oct 6 2009, 10:33 GMT
http://www.djnewswires.com/eu

EU Clears Extension Of Italian Government Bank Support Plan

BRUSSELS -(Dow Jones)- The European Commission Tuesday approved extending the Italian government's scheme for supporting banks until the end of 2009.

The plan, which was modified in February, complies with E.U. rules, the commission said.

-By Matthew Dalton, Dow Jones Newswires; +32 2 741 1487; matthew.dalton@dowjones.com

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October 06, 2009 06:33 ET (10:33 GMT)


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ECB Ordonez: Euro-Zone Econ Stabilizing, Rates Appropriate


Tue, Oct 6 2009, 10:34 GMT
http://www.djnewswires.com/eu

ECB Ordonez: Euro-Zone Econ Stabilizing, Rates Appropriate

MADRID -(Dow Jones)- The euro-zone economy is stabilizing after its worst recession in decades and interest rates are at an "appropriate" level, European Central Bank Governing Council member Miguel Angel Fernandez Ordonez said Tuesday.

Speaking in the Spanish parliament, Fernandez Ordonez said the recovery of the euro-zone economy will be slow and "not without difficulty."

-By Jonathan House, Dow Jones Newswires; +34 619 93 39 52; jonathan.house@dowjones.com

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October 06, 2009 06:34 ET (10:34 GMT)


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Asian Shares End Up; RBA First G-20 Ctrl Bank To Hike Rates

Tue, Oct 6 2009, 10:07 GMT
http://www.djnewswires.com/eu

Asian Shares End Up; RBA First G-20 Ctrl Bank To Hike Rates

SINGAPORE (Dow Jones)--Asian equity markets overcame another choppy session Tuesday to end mostly higher, with Australian stocks snapping a four-session losing streak despite a surprise rate increase by the central bank.

The S&P/ASX 200 ended 0.4% higher at 4591.60, well off the day's high, after the Reserve Bank of Australia became the first central bank in the Group of 20 nations to begin withdrawing monetary stimulus, by raising its key policy rate by a quarter point to 3.25%.

"I think it's good news if they're increasing rates because it shows growth is coming through domestically but the market, in its fragile state at the moment, would probably see that as a negative," said Justin Gallagher, head of Sydney sales trading at RBS.

Elsewhere, Japan's Nikkei 225 Average climbed 0.2% to 9691.80 after flirting with losses, South Korea's Kospi slipped 0.5%, New Zealand's NZX 50 gained 0.4% and Taiwan's Taiex advanced 1.3%.

Hong Kong's Hang Seng Index rallied 1.9%, while India's Sensex rose 0.5% and Singapore's Straits Times Index gained 1.1%.

U.S. stocks were pointing toward a higher opening, with Dow Jones Industrial Average futures recently up 64 points in screen trade. The DJIA rose more than 110 points overnight after falling in the previous four sessions.

Most Australian banking plays traded off early highs after the RBA rate decision. Commonwealth Bank of Australia ended down 0.4% and National Australia Bank fell 0.4%, while Australia & New Zealand Banking Group finished up 0.9%.

The Australian dollar surged to $0.8875 from about $0.8770 after the RBA decision. The New Zealand dollar also rose, climbing as high as $0.7362, from $0.7309 earlier. Among other major currencies, the euro was recently at $1.4734 from $1.4651 in late New York trade on Monday, and at 131.24 yen from 131.19 yen. The U.S. dollar was at 89.06 yen from 89.54 yen.

Asian currencies were also broadly higher against the U.S. dollar, with suspected central bank intervention to support the greenback from South Korea, Taiwan and Thailand authorities.

In Tokyo, Mazda Motor jumped 7.6% after its shares tumbled for seven sessions. Investors also cheered news from Monday that the company expected a lower net loss for the fiscal year than it had originally forecast. The company also announced plans to raise about $1 billion, partly to develop technologies that will improve the fuel-efficiency of its cars.

Other exporters also staged a rebound after heavy losses recently, despite the yen's continued strength against major currencies. Panasonic rose 1.3% and Nikon rose 3.7%.

Gains in Indian stocks were limited by mobile operators' steep falls on concerns about intensified price wars, after Reliance Communications Monday announced a low-tariff plan that effectively allows subscribers to make local and domestic long-distance calls for 0.5 rupees (one cent) a minute. Reliance Communications plunged 10.7%, its bigger rival Bharti Airtel skidded 10.7% and Idea Cellular sank 8.0% in heavy trading volumes.

"The strategic reason for (Reliance's) move is clear - to make it uneconomical for new (telecom companies) to operate in the Indian market. We believe that this is a positive move from a medium-term view despite its near-term impact on revenue/earnings per share," J.P. Morgan analysts wrote in a note.

Korean shares declined for a fourth straight session, reversing early gains after the Australian central bank's rate increase on concerns that the Bank of Korea may follow suit to contain rising inflationary pressures and prevent asset bubbles in an environment of low interest rates.

Shares of Samsung Electronics fell 0.3%, although the company said it now expects stronger third-quarter sales of 36 trillion won.

In Hong Kong, shares of China Resources Cement ended flat on their trading debut at their initial public offering price of 3.90 Hong Kong dollars (50 U.S. cents), after opening at HK$3.75. The performance, which comes after a string of weak listings in recent weeks in Hong Kong, was unlikely to lift investor sentiment toward coming IPOs, said analysts.

Financial stocks in South Korea were weak, with Shinhan Financial Group dropping 0.7% and Woori Financial dropping 3%, while Hana Financial Group slipped a further 0.1%. Hana shares had plunged 14.4% Monday following a report it planned a share sale to boost capital.

But financial shares were higher in some other markets after Goldman Sachs upgraded its view on large U.S. banks to "attractive" from "neutral" ahead of quarterly earnings. Japan's Nomura Holdings added 4.4% and Mizuho Financial Group climbed 2.8%. In Singapore, DBS Group Holdings rose 1.8% and in Hong Kong, Bank of China added 2.7% and HSBC Holdings gained 1.2%, while HDFC Bank shares were up 1.8% in Mumbai afternoon trading.

Strength in commodities prices helped regional resource plays. Australia's BHP Billiton gained 0.9% and Rio Tinto added 1.6%, while Newcrest Mining rose 2.4%. In Tokyo, Sumitomo Metal Mining surged 6.1% and in Hong Kong, Jiangxi Copper gained 4.1% and Zijin Mining Group jumped 6.3%.

Japanese government bonds advanced after a stronger-than-expected auction of 10-year JGBs. The result suggested that demand for long-term bonds was very firm, said Mizuho Securities market analyst Masashi Shimominami. "Many investors expect long-term yields to extend their declines as the economic outlook remains gloomy, and they are eager to buy JGBs in a liquidity-driven market."

The lead December JGB futures contract rose 0.09 to 139.59 points. The 10-year cash JGB yield fell 2 basis points to 1.24%.

The November Nymex crude oil futures contract was up 93 cents at $70.34 per barrel. Spot gold was at $1,023.10 per troy ounce, up $5.90 from the New York close.

-Dow Jones Newswires; +65-6415-4140; markettalk@dowjones.com

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October 06, 2009 06:07 ET (10:07 GMT)


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UPDATE: Hungary's Aug Output Keeps Falling On Drop In Cars


Tue, Oct 6 2009, 10:18 GMT
http://www.djnewswires.com/eu

UPDATE: Hungary's Aug Output Keeps Falling On Drop In Cars

(Adds comments from statistician, analysts.)


By Margit Feher
Of DOW JONES NEWSWIRES


BUDAPEST (Dow Jones)--Hungary's industrial output failed to recover in August despite expectations of some improvement, firming the market view that the central bank will continue to cut interest rates to boost the economy.

Industrial output fell 0.7% in August from the previous month and was down 19.9% on the year, following a 0.7% monthly fall and a 19.4% annual decline in July, the Central Statistics Office, or KSH, said Tuesday.

"The data confirmed that the economy remains very weak, with August preliminary industrial output worse than consensus, showing close to a 20% contraction. There is no doubt that the central bank will deliver further rate cuts," said BNP Paribas in a note.

Output remained in August at a depressed level due, to a large extent, to a fall in car manufacturing.

"The trends of the past months continued; output has been stagnating at about 80% of the previous year's level as all sectors of industry and both exports and domestic sales are depressed. Car manufacturing, which has a large weight in the overall numbers, accounted for 40% of the decline, as in previous months," KSH statistician Miklos Schiendele told reporters.

Output fell in the first eight months of the year by 21.8% from a year earlier.

"Hungarian industry doesn't seem to be able to follow the rebounding confidence indicators, PMI and the regional recovery due to the sharp collapse in domestic demand, which prolongs the recession," said economist Gergely Suppan at Takarekbank.

There could be a rise in the monthly reading in October, but that would be misleading as the rise would come against a very low base a year earlier, KSH statistician Schiendele said. Hungarian industrial output started to decline sharply from October 2008 onwards, when the country was hit hard by the global economic crisis. As a result, the full-year decline could be somewhat less than the fall recorded for the January-August period, the statistician added.

As about 80% of the country's exports go western Europe, Hungary's output is consistent with the sluggish recovery expected in the euro zone, MKB economist Zsolt Kondrat said.

"We expect a very slow and gradual pickup in domestic industrial activity, 1.5% quarterly growth [both] this quarter and the last quarter [of 2009] and a roughly 18% drop for the whole year. However, due to a very strong base effect, even this would bring positive growth figures from December," Kondrat added.

The monthly reading is adjusted seasonally as well as for the number of working days. The annual number is adjusted for the number of working days. Output also fell 19.9% under unadjusted data in August versus a year earlier.

Statistics office Web site: www.ksh.hu

-By Margit Feher, Dow Jones Newswires; +36-20-925-2364; margit.feher@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=ayP1X7kVnr7MWhQ1SnmXpA%3D%3D. You can use this link on the day this article is published and the following day.

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October 06, 2009 06:18 ET (10:18 GMT)


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Czech 9-Mo New Car Registrations Up 8% On Yr At 117,748 Units

Tue, Oct 6 2009, 09:52 GMT
http://www.djnewswires.com/eu

Czech 9-Mo New Car Registrations Up 8% On Yr At 117,748 Units

PRAGUE (Dow Jones)--Czech new passenger car registrations rose 8% on the year in the nine months through Sept. 30, to 117,748 units from 109,000 in the year-earlier period, Czech Car Importers' Association, or SDA, said Tuesday.

Sales of light utility vehicles, or LUVs, dropped 66% on the year to 15,829 units, in part reflecting the economic downturn and recent changes to tax laws allowing companies to deduct VAT on standard passenger cars, including saloons.

Under previous regulations, companies could only deduct VAT on cars that had installed special metal mesh barriers separating the passenger from cargo sections, disqualifying many car models.

As in previous months, the leading car makers by sales on the Czech market are Czech Skoda Auto AS and its German parent Volkswagen AG (VOW.XE), Ford Motor Co. (F), and Renault SA (RNO.FR).

SDA Web site: www.sda-cia.cz

   Go to http://blogs.wsj.com/new-europe for the new Dow Jones blog on Central and Eastern Europe, covering business, politics, society and more, written by our correspondents across the region.


-By Leos Rousek, Dow Jones Newswires; +420 222 315 290, leos.rousek@dowjones.com

(MORE TO FOLLOW) Dow Jones Newswires

October 06, 2009 05:52 ET (09:52 GMT)


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Iraqi Fin Min: IMF Granted $5 Billion To Iraq For Budget

Iraqi Fin Min: IMF Granted $5 Billion To Iraq For Budget

ISTANBUL (Zawya Dow Jones)--Iraq has been granted $5 billion by the International Monetary Fund to support the government's budget, Iraqi Finance Minister Baker al-Zubaidy said Tuesday.

"We reached an agreement on an IMF loan for about $5 billion," he told reporters in Istanbul, speaking on the sidelines of the IMF's annual meeting.

The funds will be disbursed between 2010 and 2011, he said.

"We will not spend on the oil or electricity sector [any more]," he said, adding that such projects will be financed through the private sector.

Al-Zubaidy also said he has been meeting with French Finance Minister Christine Lagarde to discuss the country's investments in Iraq's oil sector.

-By Maria Abi-Habib, Dow Jones Newswires; +9714 364 4962; maria.habib@dowjones.com

Copyright (c) 2009 Dow Jones & Co.

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=ayP1X7kVnr7MWhQ1SnmXpA%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

October 06, 2009 06:03 ET (10:03 GMT)


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European markets advance led by financials; Euro, higher, Pound slumps

FXstreet.com (Barcelona) - European markets are going through gains on Tuesday buoyed by advances in the banking sector. In the FX markets, the Dollar has dipped against Euro and Yen, while the Pound plunged on disappointing UK industrial production.

Eurostoxx 50 Index adds 0.9%, while German DAX Index rises 0.7%, and the french CAC Index advances 0.5%. In the UK, the FTSE Index trades 0.7% up in the first hours of trading.

The banking sectors is going though a strong session while Societe Generale announced its plan to raise EUR4.8 billions in a rights offer in order to re-pay state funds.

In the macroeconomic front, UK Industrial production has declined 2.5% month on month and 11.2% year on year in August, against experts expectations of a 0.3% monthly gain and a 10.2 year on year decline. Manufacturing output has dropped 0.9% on the month and 11.3% year on year; the market consensus was a 0.4% monthly advance and a 9.1% year on year decline.

Euro at higher levels, Pound plunges


GBP/USD, which rose to 1.6048 session high, has plunged about 100 pips after worse than expected Industrial production figures, returning well below 1.6000, and giving away all the ground taken during the day. At the moment of writing, the Pound trades at 1.5950.

EUR/USD has extended its rebound from 1.4480 low on Friday to 1.4750 high on Tuesday's early European session, and the Euro remains moving between 1.4700 and 1.4750.

USD/JPY decline from 90.00 high on Monday has found support at 88.85, and the pair has remained moving sideway's between the mentioned level and Monday's low at 89.40 on the upside.

Forex: EUR/USD: Extension to the psychological 1.5000 cannot be ruled out - Mizuho


Tue, Oct 6 2009, 09:52 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - The Euro has shrugged off last weeks' weakness and, after bottoming at 1.4480 on Friday, the pair has rallied almost 300 pips to reach 1.4750 on Monday, and according to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, it could reach 1.5000 area during the current month.

On its monthly outlook, Elliott expect a brief period of consolidation before rallying higher: "Last month the Euro squeezed higher, as expected, and is now due a short period of consolidation in the 1.4600/1.4800 area, though an extension to the psychological 1.5000 level cannot be ruled out."

On the downside, Elliott considers declines should be limited to 1.4443 area: "Declines are seen as medium and long term buying opportunities for an even weaker US dollar later this year. Dips might be limited to the nine-week moving average at 1.4443 which also happens to be the first Fibonacci support."

Forex: GBP/USD: Pound plunges below 1.6000 on weak industrial production

Tue, Oct 6 2009, 08:44 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - The Sterling has plunged about 100 pips from session high at 1.6048, after worse than expected Industrial production figures, back well below 1.6000, and giving away all the ground taken during the day.

UK Industrial production has declined 2.5% month on month and 11.2% year on year in August, against experts expectations of a 0.3% monthly gain and a 10.2 year on year decline. Manufacturing output has dropped 0.9% on the month and 11.3% year on year; the market consensus was a 0.4% monthly advance and a 9.1% year on year decline.

At the moment of writing, the Pound trades at 1.5940, with next support levels at 1.5925 session low and below here, 1.5880 and 1.5770 (Sept 28 low). On the upside, resistance levels lie at 1.6005/20, and above here 1.6050 intra-day high and 1.6125 (Sept 30 high), and 1.6200.


DATA SNAP: UK Mfg Output Slumps Unexpectedly In August


Tue, Oct 6 2009, 08:44 GMT
http://www.djnewswires.com/eu

DATA SNAP: UK Mfg Output Slumps Unexpectedly In August

By Ilona Billington
Of DOW JONES NEWSWIRES


LONDON (Dow Jones)--The U.K.'s manufacturing sector slumped unexpectedly by 1.9% in August from July as output in all thirteen sub-sectors reported a poor result, the Office for National Statistics said Tuesday.

On the year, manufacturing output declined 11.3%.

The data for August compare with a revised 0.7% rise on the month and a 10.2% fall on the year in July.

The drop came as a surprise. Economists surveyed by Dow Jones Newswires last week had expected that manufacturing output rose 0.4% on the month and fell 9.1% on the year in August.

The July data were originally reported as rising 0.9% on the month and declining 10.1% in year-on-year terms.

The monthly fall was the first drop since May this year although an ONS spokesperson did say that anecdotal evidence showed that there were various planned shutdowns in August which accounted for some of the decline, and possibly the larger-than-expected rise in July.

The seasonal adjustment would typically account for some of these seasonal shut downs but may not capture all of them, the ONS said.

The wider measure of industrial production also posted a disappointing performance in August, falling 2.5% on the month and 11.2% when compared with August 2008.

In July, industrial production rose 0.5% from June and was 9.3% lower in annual terms.

Economists had forecast this measure would rise 0.3% on the month and drop 8.6% in annual terms.

-By Ilona Billington and Adam Bradbery, Dow Jones Newswires; +44 20 7842 9452; ilona.billington@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=ayP1X7kVnr7MWhQ1SnmXpA%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

October 06, 2009 04:44 ET (08:44 GMT)


Copyright 2009 Dow Jones & Company, Inc.

GLOBAL MARKETS: European Stocks Up; Banks Offer A Timely Lift

GLOBAL MARKETS: European Stocks Up; Banks Offer A Timely Lift

Tue, Oct 6 2009, 08:19 GMT
http://www.djnewswires.com/eu

GLOBAL MARKETS: European Stocks Up; Banks Offer A Timely Lift

By Andrea Tryphonides
Of DOW JONES NEWSWIRES


DATA SNAP: UK Halifax House Prices Rise Again In September


Tue, Oct 6 2009, 08:25 GMT
http://www.djnewswires.com/eu

DATA SNAP: UK Halifax House Prices Rise Again In September

By Nicholas Winning
OF DOW JONES NEWSWIRES


LONDON (Dow Jones)--U.K. house prices rose for a third consecutive month in September and posted their first quarterly rise for two years in the third quarter, HBOS, a unit of the Lloyds Banking Group, said Tuesday.

The company's Halifax house price index rose 1.6% in September from August, following a 0.8% monthly increase in August. The average price in the three months to the end of September was 7.4% lower than in the corresponding period of last year, down from an annual 10.1% drop in August.

The data are stronger than the market consensus estimate of a 1.0% gain on the month and a 7.7% drop on the year from a Dow Jones Newswires survey of economists last week.

The global credit crisis and ensuing recession throttled activity on the U.K.'s house market and dragged prices lower last year. Although the market still faces headwinds from rising unemployment and a shortage of mortgages, prices have started to recover in recent months with support from a combination of pent-up demand and a shortage of property for sale.

Company Web site: www.halifax.co.uk

-Nicholas Winning, Dow Jones Newswires; +44 207 842 9498; nick.winning@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=ayP1X7kVnr7MWhQ1SnmXpA%3D%3D. You can use this link on the day this article is published and the following day.

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October 06, 2009 04:25 ET (08:25 GMT)


Copyright 2009 Dow Jones & Company, Inc.





LONDON (Dow Jones)--European stocks climbed higher Tuesday, supported by a strong performance in the banking sector, while news of Societe Generale's EUR4.8 billion rights issue helped boost confidence in the recovery of fortunes for Europe's blue-chips.

Additionally, the U.K.'s largest retailer, Tesco, reported better than expected profit growth, which supported those who think that economic recovery in the U.K. and beyond is more than just a pipe dream.

"Earnings momentum is starting to pick up, valuations are reasonable and it can hardly be said that investor sentiment is too positive," said Bob Doll, chief investment officer of equities at BlackRock.

"Together, all of these factors support our view that the current cyclical bull market remains intact," he said.

By 0800 GMT, the pan-European Stoxx 600 index was up 0.8% at 238.0. London's FTSE 100 was up 0.7% at 5059.8, Frankfurt's DAX gained 0.7% to 5545.2 and Paris's CAC-40 was 0.6% higher at 3695.4.

Much of the morning's focus was on the banking sector after Societe Generale launched a rights issue, partly to repay state funds and using the remainder to buy out a 20% stake in Credit du Nord and boost capital ratios. It fell 0.8% to EUR51.8, although it soon came off its lows.

"New confidence in the banking sector and the desperate desire to rid themselves of the shackles of government ownership is driving these decisions," said Manoj Ladwa, senior trader at ETX Capital.

Additionally, BofA-Merrill Lynch upgraded the European bank sector to overweight. It said that with further EPS upgrades ahead, reasonable valuations offer the potential for re-rating, building on strong core profitability and positive trends in key wholesale and property markets. The Stoxx Europe banks sub-sector was up 1.4% at 229.6.

Elsewhere, Tesco, the world's third-largest retailer by sales, reported better than expected profit growth, with pretax profit before exceptional items up 8.6% to GBP1.57 billion. However, it fell 0.8% to 388 pence, with analysts still noting an air of caution, particular with regards to the U.S. business.

Earlier, Asian equity markets mostly advanced Tuesday, inspired by solid gains for U.S. stocks, although some markets slipped off earlier highs or were trading lower.

Japan's Nikkei 225 finished up 0.2% but South Korea's Kospi Composite failed to turn its fortunes around and ended 0.5% lower. Hong Kong's Hang Seng index gained 1.9%.

Australia's S&P/ASX 200 ended 0.4% higher, although the index dipped a little after the Reserve Bank of Australia hiked its key cash rate by 25 basis points to 3.25%, becoming the first central bank among the Group of 20 nations to begin monetary tightening.

In the U.S., an analyst upgrade of the banking sector and earnings-driven speculation drove a rallying stock market Monday, with Wells Fargo, Alcoa and Caterpillar leading the tape.

For the session, the DJIA gained 1.2% to 9599.8, snapping a four-day losing streak.

Goldman Sachs raised its rating on large banks to attractive Monday morning. Improved earnings, stronger balance sheets and bigger assets following a year's worth of acquisitions at several large banks have raised some analysts' views of the sector going into the quarterly reports.

Among other indexes, the Standard & Poor's 500 rose 1.5% to 1040.5 and the Nasdaq Composite increased 1.0% to 2068.2.

In the foreign exchanges, the dollar fell against the euro and the yen as risk appetite increased and Australia raised interest rates. Market participants noted that a report that Gulf countries are planning to stop using the dollar for oil dealing was swiftly denied by various parties.

The euro was trading at $1.4720 at 0815 GMT, up from $1.4648 in late New York trade on Monday. The dollar was quoted at Y89.20, down from Y89.55.

Meanwhile, the November Nymex crude oil futures contract was up 55 cents at $70.96 per barrel. Spot gold surged, jumping to $1018.40 per troy ounce, up $7.80 from the New York close.

European government bonds were lower and, at 0815 GMT, December bund futures were down 0.15 at 122.55.

-By Andrea Tryphonides, Dow Jones Newswires; +44-20-7842-9281; andrea.tryphonides@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=ayP1X7kVnr7MWhQ1SnmXpA%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

October 06, 2009 04:19 ET (08:19 GMT)


Copyright 2009 Dow Jones & Company, Inc.

DJ Currency Rates Of Coffee Producing, Consuming Countries

DJ Currency Rates Of Coffee Producing, Consuming Countries

Current Prior
Producers
Angola (Readj Kwanza) AOA 77.805 77.806
Bolivia (Boliviano) BOB 7.02 7.02
Brazil (Real) BRL 1.7598 1.7818
Burundi (Franc) BIF 1240 1240
Central African States XAF 445.755 448.285
Central Bank of West AfriXOF 445.755 448.285
Colombia (Peso) COP 1928.4 1918
Costa Rica (Colon) CRC 582.7 585.5
Cuba (Peso) CUP 1 1
Dominican Rep (Peso) DOP 36.2 36.15
Ecuador (USD) USD 1 1
El Salvador (Colon) SVC 8.7475 8.7475
Ethiopia (Birr) ETB 12.605 12.605
Guatemala (Quetzal) GTQ 8.3235 8.3115
Guinea Rep (Franc) GNF 5025 5025
Haiti (Gourde) HTG 39.75 39.75
Honduras Rep (Lempira) HNL 18.895 18.895
India (Rupee) INR 47.12 47.53125
Indonesia (Rupiah) IDR 9435 9552.5
Kenya (Shilling) KES 75.325 75.65
Malawi (Kwacha) MWK 140.605 140.6058
Mexico (Peso) MXN 13.5688 13.6281
Nicaragua (Cordoba Oro) NIO 19.9713 19.9713
Papua New Guinea (Kina) PGK 0.37535 0.3755
Peru (Nuevo Sol) PEN 2.8765 2.8765
Philippines (Peso) PHP 46.5675 46.71
Venezuela (Bolivar) VEB 2147.3 2147.3
Vietnam (Dong) VND 17842 17844.5
Zambia (Kwacha) ZMK 4680 4730
Zimbabwe (Dollar) ZWD 363.4 363.4

Consumers
Denmark (Krone) DKK 5.05835 5.0876
European Union (Euro) EUR 1.47155 1.46325
Japan (Yen) JPY 89.21 89.835
Norway (Krone) NOK 5.7108 5.7737
Sweden (Krona) SEK 6.9749 7.0373
Switzerland (Franc) CHF 1.02715 1.03265


* = The CFA Franc is the common currency of 14 African countries
which are members of the Franc zone:
XOF = Benin, Burkina, Ivory Coast, Guinea Bissau, Mali, Niger,
Senegal and Togo under the Central Bank of the West African States.
XAF = Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea,
and Gabon, under the Bank of the Central African States.


All currencies are quoted in units of currency per U.S. dollar.
Source: Thomson Reuters

Forex: GBP/USD: Pound stretches to 1.6048 session high on housing prices


FXstreet.com (Barcelona) - Pound's rally from 1.5800 low on Friday has extended to a fresh session high at 1.6048 high on Tuesday after better than expected UK Halifax housing prices index, to ease later to current levels around 1.6020.

Resistance levels, above 1.6025, lie at 1.6125 (Sept 30 high), and above here, 1.6200 and 1.6350. On the downside, support levels remain at 1.5925 session low and below here, 1.5880 and 1.5770 (Sept 28 low).

UK Halifax housing Prices Index have advanced 1.6% in September while they fell 7.4% year on year, beating experts expectations of a 1.0% monthly advance and a 7.7% year on year decline.




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(END) Dow Jones Newswires

October 06, 2009 04:09 ET (08:09 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Saturday 3 October 2009

WORLD FOREX: Euro Climbs Above $1.46, Extending Recovery

WORLD FOREX: Euro Climbs Above $1.46, Extending Recovery

By Riva Froymovich
Of DOW JONES NEWSWIRES


NEW YORK (Dow Jones)--The euro recently climbed above $1.46, extending its recovery from an early morning selloff against the dollar.

The euro advanced to an intraday high of $1.4619, after earlier declining to more than a three-week low of $1.4480 on the release of a disappointing U.S. payrolls report.

Trading is often volatile following this highly anticipated monthly jobs data.

"It would be a mistake to take a logical look" on these moves, said Tom Fitzpatrick, global head of currency strategy at Citigroup.

"It's classic post-non-farm payrolls trading," he said. After the initial reaction, "people tend to say, 'Let's jump away to the sidelines,'" Fitzpatrick said.

The report also may add to skepticism on the dollar's prospects.

It recently fell to an intraday low against the yen, Y88.62.

Fitzpatrick added that this currency pair has been trading more closely with fixed-income markets lately, and long-end yields are down, putting pressure on the buck.

Separately, currency analysts cited a CNBC interview with Bill Gross, Pimco's co-chief investment officer. He said he thinks policymakers actually want a weak dollar, according to Reuters.

In recent trade Friday morning in New York, the euro was at $1.4611 from $1.4526 late Thursday, according to EBS via CQG. The dollar was at Y88.65 from Y89.77. The euro was at Y129.56 from Y130.39. The U.K. pound was at $1.5924 from $1.5940, while the dollar was at CHF1.0333 from CHF1.0420.

Employers eliminated 263,000 jobs in September, more than expected, as the unemployment rate climbed to 9.8%, the Labor Department said.

Economists surveyed by Dow Jones Newswires expected a 175,000 decrease.

-By Riva Froymovich, Dow Jones Newswires; 212-416-2217; riva.froymovich@dowjones.com

(Bradley Davis in New York contributed to this report.)

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=nPo2qNQG%2BYMHypL5iY1TpQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

October 02, 2009 10:06 ET (14:06 GMT)