10/09/07
| FTSE 100 |
6191.2, -122.1 |
Dow |
13113.4, -250.00 |
| FTSE 250 |
11107.7, -223.1 |
Nasdaq |
2565.7, -48.62 |
| FTSE All Share |
3203.8, -61.9 |
S&P 500 |
1453.55, -25 |
| Nikkei |
16122.2, -134.8 |
Hang Seng |
23982.6, -67.8 |
| Oil (Brent) |
$74.68 |
Gold |
$705.74 |
| Base Rate |
5.75% |
10 Yr Gilt |
4.948% |
| £/$ |
2.0285 |
Euro/Gbp |
0.6795 |
Markets
U.S. stocks tumbled on Friday, driving major indexes down nearly 2 percent, as data showing the first monthly drop in payrolls in four years stoked fears on Wall Street that the economy was headed into recession. Stocks across the board dropped sharply after the Labor Department said U.S. employers cut a net 4,000 jobs in August, when turmoil in the subprime mortgage market led to a tightening of corporate credit and heightened concerns about the wider economic impact. The report cemented expectations the Federal Reserve would cut interest rates when policymakers meet on Sept. 18. Anxiety about this weeks anniversary of the Sept. 11 attacks further soured the mood on Wall Street. Al Qaeda leader Osama bin Laden, in an unauthenticated video circulated on the Internet, said the United States was still vulnerable to attacks. But the main focus was on the economy as shares of industrial companies, which often react to economic cycles, fell sharply. Caterpillar Inc. was down 3.1 percent at $73.44, while Honeywell International Inc. was down 3.4 percent at $54.71.
The Nikkei closed 2.2% lower at 15764.97 as the weak US jobs data and stronger dollar yen hurt exporters. Banks, real estate stocks among weakest performers; MUFG weakens 2.8% to Y1.03 million while Mitsubishi Estate falls 3.8% to Y2,695.
The Hang Seng closed just 0.3% lower as a late rally bought eroded earlier losses with the rally just running out of steam as the Index turned positive. HSBC led the early decline on worries about the US economy although Hong Kong Exchanges and Clearing Ltd jumped to a record following reports the government had raised its stake in the city stock market operator.
The FTSE100 opened strongly this morning only to fall back and turn negative as the sentiment seen on Friday continues as talk of a recession in the US hits early trading. Miners make up most of the top places in the losers column with British Land and Hammerson also showing a sharp decline.
Economics
UK
PPI (AUG) 0930 BST
Oil prices in sterling rose over 7% in August which will boost reported input prices. The focus should be on core output prices where a month on month gain of 0.3% is expected, which would suggest manufacturers have to take a hit on margins.
DCLG House Prices (JUL) 0930 BST
The DCLG (formerly ODPM) house price index is the last of the house price indices to be released for July. House prices based on the Nationwide and Halifax indices increased by 0.5% in July, so the same is forecast for this measure, talking the annual inflation rate down to 10.8%
US
Consumer Credit (JUL) 2000 BST
Consumer Credit has increased by USD10bn per month on average this year. A USD7bn increase is expected for July, Assuming a USD5bn rise in credit card debt as well as a USD2bn rise in nonrevolving credit.
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