Tuesday, 29 December 2009

GLOBAL MARKETS: European Stocks Rise, Setting Fresh 2009 Highs

GLOBAL MARKETS: European Stocks Rise, Setting Fresh 2009 Highs

By Andrea Tryphonides
Of DOW JONES NEWSWIRES


LONDON (Dow Jones)--European stocks rose Tuesday, hitting fresh highs for 2009 as sentiment remained bullish ahead of the New Year, although activity was sluggish in most asset classes, with volumes low all round.

The focus was firmly on the approach of 2010 as equities jumped higher after the Christmas break.

"When reading the forecasts of the big investment banks, one can only conclude that 2010 will be an easy year for investor," said Ad van Tiggelen, senior strategist at ING Investment Management. "Consensus has rarely been so strong. To summarize, 2010 will be a good year for equities, especially the first half," he said.

By 0840 GMT, the pan-European Stoxx 600 index had gained 0.2% to 253.8. London's FTSE 100 was up 0.4% at 5425.3, returning from an extended week-end break. Frankfurt's DAX had increased 0.1% at 6007.8 and Paris's CAC-40 was up 0.2% at 3953.7.

Among the key sectors, basic resources stocks led Europe higher. On Monday, copper rose to its highest price in more than 15 months in New York on speculation that demand will strengthen and drain stockpiles, although copper futures were subject to some profit taking on Tuesday. Reflecting this, spot gold was at $1105.10 per troy ounce at 0900 GMT, down $2.95 from the New York close.

In London, British Airways declined 0.4%, following its U.S. peers after the terror incident on Christmas Day. Additionally, there were press reports that the airline was looking into the possibility of abandoning its first-class service on a number of routes.

Earlier, Asian stocks were mixed Tuesday in muted holiday trade, with most markets shackled by the absence of investors taking an extended break.

Australia's S&P/ASX 200 outperformed the region with a 1.1% gain as investors there returned from their extended weekend. Japan's Nikkei 225 and Hong Kong's Hang Seng index were flat, South Korea's Kospi Composite fell 0.8% but the Shanghai Composite came off its lows to stand up 0.7%.

On Monday, U.S. stocks rose to new closing highs for the year in a thinly traded session, as gains across a host of companies including International Business Machines and 3M overcame declines in American Express and other financial stocks.

The Dow Jones Industrial Average closed up 0.3% at 10,547.1, its highest close since Oct. 1, 2008. The technology-heavy Nasdaq Composite climbed 0.2% to 2291.1 its highest close since Sept. 3, 2008 and the Standard & Poor's 500 index rose 0.1% to 1127.8, its highest finish since Oct. 1, 2008. Three S&P 500 categories ended the session in the red: financials, industrials and consumer discretionary.

Meanwhile, in the European foreign exchanges Tuesday, the euro was firmer. Indeed, its slide against the dollar in recent weeks may have gone too far, said Brown Brothers Harriman in a note, and a correction higher is looking increasingly likely.

The euro was trading at $1.4435 at 0900 GMT, up from $1.4379 in late New York business Monday. The dollar was little changed at Y91.57, down from Y91.63.

Elsewhere, February Nymex crude oil was down five cents at $78.72 per barrel amid thin volumes. Despite equities' march higher, March bund futures rose 0.08 to 121.50.

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

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December 29, 2009 04:05 ET (09:05 GMT)


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DJ Currency Rates Of Coffee Producing, Consuming Countries


DJ Currency Rates Of Coffee Producing, Consuming Countries

Current Prior
Producers
Angola (Readj Kwanza) AOA 89.5 89
Bolivia (Boliviano) BOB 7.02 7.02
Brazil (Real) BRL 1.7406 1.7625
Burundi (Franc) BIF 1240.5 1239.5
Central African States XAF 454.5 455.5
Central Bank of West AfriXOF 454.5 456.065
Colombia (Peso) COP 2036.5 2047.9
Costa Rica (Colon) CRC 564.5 574.3
Cuba (Peso) CUP 1 1
Dominican Rep (Peso) DOP 36.1 36.025
Ecuador (USD) USD 1 1
El Salvador (Colon) SVC 8.7475 8.7475
Ethiopia (Birr) ETB 12.695 12.69
Guatemala (Quetzal) GTQ 8.3165 8.3115
Guinea Rep (Franc) GNF 4995 4995
Haiti (Gourde) HTG 39.75 39.75
Honduras Rep (Lempira) HNL 18.895 18.895
India (Rupee) INR 46.675 46.54
Indonesia (Rupiah) IDR 9434.5 9450
Kenya (Shilling) KES 75.9 75.75
Malawi (Kwacha) MWK 145.9925 145.9864
Mexico (Peso) MXN 12.97545 12.84425
Nicaragua (Cordoba Oro) NIO 20.8322 20.8182
Papua New Guinea (Kina) PGK 0.3789 0.3825
Peru (Nuevo Sol) PEN 2.8815 2.8821
Philippines (Peso) PHP 46.23 46.34
Venezuela (Bolivar) VEB 2147.3 2147.3
Vietnam (Dong) VND 18474 18474
Zambia (Kwacha) ZMK 4650 4655
Zimbabwe (Dollar) ZWD 356.3 354.7

Consumers
Denmark (Krone) DKK 5.1587 5.1714
European Union (Euro) EUR 1.4427 1.4393
Japan (Yen) JPY 91.66 91.51
Norway (Krone) NOK 5.772 5.7995
Sweden (Krona) SEK 7.1743 7.25605
Switzerland (Franc) CHF 1.0301 1.0355


* = 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


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December 29, 2009 04:09 ET (09:09 GMT)


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Swedish November Retail Sales -0.6% On Month

Swedish November Retail Sales -0.6% On Month

The following is a press release from Statistiska Centralbyran, or SCB, the Swedish central government authority for official statistics.

STOCKHOLM--Swedish retail trade sales decreased by 0.6% in November compared to October, seasonally adjusted figures. Compared to November 2008, the retail trade sales increased by 3.6%.

Retail trade for mostly food increased by 0.7% compared to November 2008 and retail trade for mostly durables increased by 6.0%.

Statistics Sweden Web site: www.scb.se

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December 29, 2009 03:30 ET (08:30 GMT)


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DATA SNAP: Italy Dec Business Confidence Rises To 18-Mo High

DATA SNAP: Italy Dec Business Confidence Rises To 18-Mo High

By Liam Moloney and Chiara Vasarri

Of DOW JONES NEWSWIRES

ROME (Dow Jones)--Italian business confidence rose more than expected in December to its highest level in 18 months as the country emerged from recession, with expectations of output recovering and the outlook for foreign orders improving, figures showed Tuesday.

The business confidence index in the European Union's fourth-largest economy rose in December to 82.6 from an upwardly revised 79.4 in November, state-funded research center ISAE said.

December's reading was the highest since June 2008, it added.

Three economists polled by Dow Jones Newswires had forecast an increase in the index to 79.5 in December.

The ISAE business sentiment survey was carried out between Dec. 1-18.

Web site: www.isae.it

-By Liam Moloney and Chiara Vasarri; Dow Jones Newswires; +39 06 697 66923; chiara.vasarri@dowjones.com

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December 29, 2009 03:49 ET (08:49 GMT)


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UPDATE: French 3Q GDP Unrevised, Recovery Looks Fragile

UPDATE: French 3Q GDP Unrevised, Recovery Looks Fragile

(Adds background, economist comment.)


By Gabriele Parussini
Of DOW JONES NEWSWIRES


PARIS (Dow Jones)--French gross domestic product expanded 0.3% in the third quarter from the second, the national statistics service said Tuesday, confirming that the euro zone's second-largest economy has emerged from recession.

The quarterly growth was the second in a row, and came after a full year of contraction.

Still, compared with the July-to-September period of last year, the total value of goods and services produced in France shrank 2.3% in the third quarter.

France has weathered the crisis better than other European Union economies, but its recovery appears to be fragile.

The statistics agency Insee, in a forecast earlier this month, said industrial production will slow next year, leaving the burden for economic growth mainly on the service sector.

The main risk for the French economy, Insee said, may come from a weakening in private consumption. Households' purchasing power growth is projected to slow down next year.

Still, Tuesday's data confirmed that household consumption remains the main engine of the French economy. Throughout the year-long recession, consumption dipped only once into negative territory, shrinking 0.2% in the first quarter of 2008. It has been growing ever since.

In the third quarter of this year, household consumption posted a 0.1% increase, after a 0.4% rise in the three months to July.

Other components of GDP showed marked weakness.

Investment fell 1.4%, a faster pace of decline than the -1% posted in the previous quarter. And exports, while outpacing imports with growth of 1.7% on the quarter, were revised down from the first estimate of 2.3% growth.

"The investment outlook remains bleak and net exports are unlikely to continue to provide a positive contribution to GDP growth," said Dominique Barbet, an economist at BNP Paribas SA in Paris.

Barbet also noted that the household saving rate rose to its highest level since 1982, and that while corporate profitability recovered in the third quarter, it still remains way below the pre-crisis levels.

-By Gabriele Parussini, Dow Jones Newswires; +33 1 4017 1766; gabriele.parussini@dowjones.com

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December 29, 2009 05:08 ET (10:08 GMT)


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UK 3Q Housing Equity Withdrawal -GBP4.9B Vs -GBP6.9B 2Q


UK 3Q Housing Equity Withdrawal -GBP4.9B Vs -GBP6.9B 2Q

LONDON (Dow Jones)--U.K. households injected a net GBP4.9 billion in equity back into their homes in the third quarter of 2009, the sixth quarter that there has been a net injection, the Bank of England said Tuesday.

That was a smaller repayment than the GBP6.9 billion repayment in the second quarter of this year, a figure that was revised lower from an originally reported GBP7.0 billion. Between July and September last year, homeowners repaid a total of GBP5.8 billion of equity into from their homes.

The level of repayment was less than expected. Economists surveyed by Dow Jones Newswires last week had forecast home-owners repaid GBP5.8 billion in the third quarter.

The data measure the portion of borrowing secured on residential property that isn't invested in the U.K. housing market, but used to finance consumption or invest in financial assets.

Although the outlook for the U.K. economy is improving, consumer confidence remains below average, suggesting the trend of putting money back into your house rather than taking it out, is likely to continue for some time.

Housing equity withdrawal now represents -2.0% of take-home pay, indicating a net repayment rather than a positive contribution to consumer spending as seen during the housing market boom in previous years.

In the second quarter of 2009, housing equity withdrawal represented -2.8% of take-home pay while in the third quarter of 2008 it accounted for -2.5%, the BOE data show.

Web site: www.bankofengland.co.uk

-By Ilona Billington; Dow Jones Newswires; +44 (0) 207 842 9452; ilona.billington@dowjones.com

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December 29, 2009 04:57 ET (09:57 GMT)


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Italy Receives EUR95 Billion In Tax Amnesty Funds - Econ Ministry

Italy Receives EUR95 Billion In Tax Amnesty Funds - Econ Ministry

MILAN -(Dow Jones)- Under the Italian government's tax amnesty plan, assets worth EUR95 billion have been declared, of which 98% will be repatriated in Italy, the Italian Economy Ministry said Tuesday, citing data as of Dec. 15.

In an emailed statement, the ministry also said that the extension of the tax amnesty to April 2010 would be the "last one and definitive."

In December, Italian Economy Minister Giulio Tremonti announced the extension of the plan but with higher fees. Italians who repatriate assets by Feb. 28 will have to pay a 6% fee on those assets, while assets declared by April 30 will have a 7% fee.

In October, the Italian government started a tax amnesty plan that allowed Italians with undeclared assets outside the country to repatriate them by paying a 5% fee.

-By Sabrina Cohen, Dow Jones Newswires, +39 02 5821 99906; sabrina.cohen@dowjones.com

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December 29, 2009 05:28 ET (10:28 GMT)


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UPDATE: Spain Retail Sales Steepen Decline In Nov, Down 5.5%


UPDATE: Spain Retail Sales Steepen Decline In Nov, Down 5.5%

(Adds background.)


By Christopher Bjork
Of DOW JONES NEWSWIRES


MADRID (Dow Jones)--Spanish retail sales fell at a sharper rate in November than in recent months, Spain's National Statistics Institute said Tuesday, as high unemployment put a dent in consumer spending.

Spanish retail sales fell 5.5% on the year in calendar-adjusted terms, the INE said, after falling by 2.7% in October and by 3.4% in September.

Unadjusted retail sales fell 4.3%.

The weakness in spending is largely a consequence of Spain's rising tide of unemployment. Although government stimulus measures managed to stem the rise in joblessness during a few months in the summer, job losses resumed their upwards trend from August.

Spanish consumer spending, a key pillar of Spain's formerly buoyant economy, has plummeted following the collapse last year of the labor-intensive Spanish construction industry.

The unemployment rate was 19.3% in October, the second highest in the European Union behind Latvia, according to data from EU statistics agency Eurostat.

INE Web site: www.ine.es

-By Christopher Bjork, Dow Jones Newswires; +34 91 395 8123; christopher.bjork@dowjones.com

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December 29, 2009 05:27 ET (10:27 GMT)


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UK Economy To Grow Slowly In 2010 As Job Concerns Stay-Survey

UK Economy To Grow Slowly In 2010 As Job Concerns Stay-Survey

LONDON (Dow Jones)--The U.K. economy is set to grow only slowly in 2010, while concerns over job security persist among financial professionals based in the U.K., a survey showed Tuesday.

The survey by eFinancialCareers.com showed just 41% of U.K.-based financial professionals are expecting some economic growth next year, while over a third said the economy will be flat in 2010. Of the remaining number of professionals surveyed, 19% said they think the economy will contract again next year and just 4% said they expect strong growth.

The U.K. economy has now contracted for six straight quarters after falling 0.2% on the quarter in the third quarter of the year. That is the longest contraction on record in the U.K., although economists are confident that gross domestic product expanded in the final three months of 2009.

-By Ilona Billington, Dow Jones Newswires; 44 207 842 9452; ilona.billington@dowjones.com

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December 29, 2009 06:26 ET (11:26 GMT)


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Asian Shares End Mixed; Australia At Highest Close In 2 Months


Asian Shares End Mixed; Australia At Highest Close In 2 Months

By Myra P. Saefong and Colin Ng


Asian markets were mixed Tuesday, with Australia closing at its highest level in more than two months supported by gains in Nufarm on news of a strategic investment from Japan's Sumitomo Chemical.

"The bigger catalyst to get Asian stocks really moving big in one-day moves would probably not occur until after New Year's Day," said Richard Hastings, a consumer strategist at Global Hunter Securities. That's "when more data and then the critical Q4 earnings in industrial and global stocks tells us how global companies want to invest their capital; where do they see growth; and whether they seem eager to merge."

Australia's S&P/ASX 200 outperformed the region, gaining 1.1% to finish at 4845.10. Japan's Nikkei 225 closed flat, South Korea's Kospi Composite fell 0.8%, Hong Kong's Hang Seng Index added 0.1%, and the Shanghai Composite tacked on 0.7%.

Among Australian banks, Commonwealth Bank closed up 1.2% and National Australia Bank gained 1.8%. Miner BHP Billiton was up 1.1%, and Rio Tinto rose 1.3%.

Nufarm advanced 2.8% to 10.86 Australian dollars ($9.68) after earlier hitting A$11.10 on news of a strategic investment by Sumitomo Chemical. The Japanese company has the Australian foreign investment review board's approval to buy 20% of Nufarm for A$14 a share. Nufarm rejected a lower offer from China's Sinochem and is planning a A$250 million entitlement offer, fully underwritten by UBS.

"Sumitomo turned out to be the white knight waiting in the wings, happy to give shareholders the opportunity to sell out part of their stake (up to 20%)...while retaining a decent percentage to benefit from a turnaround in performance," said Cameron Peacock, a market analyst at IG Markets, in a note to clients. "Christmas certainly came twice this year for Nufarm shareholders."

In Tokyo, Sumitomo Chemical ended flat for the day. But financial stocks fell, tracking their U.S. counterparts, with Sumitomo Mitsui Financial Group down 2.8% and Mizuho Financial Group off 0.6%.

The Hong Kong stock market was lifted by gains in property stocks, which were rebounding after declines on Monday in the wake of weaker-than-expected land auction results. Sino Land rose 0.5% and Henderson Land rose 0.9%.

New Zealand's exchange operator NZX continued its pre-Christmas run and rose 3.1% due to its share split and its decision to pay out a higher proportion of profits. "Mathematics would suggest it (the split) should make no difference, but it does because it actually gives you greater leverage," said Goldman Sachs JBWere broker Humphrey Sherratt.

Korea's Kospi Composite posted the biggest decline in the region, with selling in financial stocks fed by lingering concerns over 2010 earnings. Shares of Korea Exchange Bank dropped 4.5% and Shinhan Financial Group lost 2.6%.

In China, locomotive maker China CNR Corp.'s debut was weaker than expected. Interest in large Shanghai initial public offerings was waning after two recent large IPOs dropped below their public offering prices, said Li Nian at Shenyin Wanguo Securities. "CNR's weak debut will pressure other Shanghai IPOs as its IPO price was too high." CNR's IPO price was at 5.56 Chinese yuan (81 U.S. cents), and the stock opened up 4.3%, well below expectations for a 16.5% surge. It closed 2.3% higher.

In other markets, Singapore's Straits Times Index closed up 0.5%, Indonesia's headline stock index climbed 0.4%, and India's Sensex rose 0.2%. Taiwan shares closed down 0.1%, Philippine shares rose 0.7%, and New Zealand's NZX-50 added 0.6%.

Foreign exchange majors were in very tight ranges, with trading volumes thinned by the holidays. The dollar was at 91.65 yen from 91.62 yen in late New York trade Monday, while the euro was at $1.4415 from $1.4384 and 131.15 yen from 131.78 yen.

"The decline of the yen against the U.S. dollar since early December has been a high quality move, built on improving fundamentals that were given more substance from [Monday's] retail sales data from the U.S.," said Hastings, of Global Hunter Securities.

"If things go well, then we could get a move in the yen similar to the March to August 2008 decline," he said. "This time perhaps giving us a 97.50 level on the yen by mid-January."

The Euro's recent slide against the dollar may have gone too far, and a correction higher was looking increasingly likely, said Brown Brothers Harriman in a note.

Japanese government bonds ended higher on the back of solid dip-buying demand. The lead JGB futures contract rose 0.15 to 139.53 while the 10-year cash JGB yield fell 0.5 basis point at 1.295%.

Spot gold was at $1,104.10 per troy ounce, down $2.80 from the New York close. February crude oil was up 3 cents at $78.80 per barrel on Globex.

"Crude is hovering around the $79 level while the news from Shanghai Electric Power confirmed very high demand for electric power, with the same effect building up this week in the Northern and Eastern U.S. Canada," said Hastings. "So the week's fundamental demand news remains very supportive for pricing power in major industrial commodities."

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(END) Dow Jones Newswires

December 29, 2009 06:18 ET (11:18 GMT)


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