13/07/09

FTSE 100	4127.17, -31.49	Dow	8146.52, -36.65
FTSE 250	7184.43, -49.57	Nasdaq	1756.03, +3.48
FTSE All Share	2109.32, -15.58	S&P 500	879.13, -3.55
Nikkei	9050.33, -236.95	Hang Seng	17259.86, -448.56
Oil (Crude)	$59.89	Gold	$912.50
Base Rate	0.5%	10 Yr Gilt	3.71%
£/$	1.607	Euro/Gbp	0.867

Markets

The Dow and S&P 500 finished lower on Friday, with the latter completing its fourth consecutive weekly loss. A deeper than expected slide in consumer confidence added to concern that the economic recovery will be delayed, sending stocks lower. The Dow Jones lost 36.65 points to close at 8,146.52 while the S&P 500 slipped 3.55 points to end at 879.13. The Nasdaq added 3.48 points to finish at 1,756.03.

Chevron Corp led the Dow lower, losing 2.7%. Not only did oil suffer its worst weekly drop since January, the company also said that earnings would be lower for the second quarter, hit further by a weaker dollar. The second biggest US energy producer said the falling dollar slashed overseas profit from oil and natural gas wells by almost $7 million a day during April and May. Exxon Mobil also fell, losing 1.3%. Technology shares helped to limit losses after several analyst upgrades. Yahoo gained 2.6% after being upgraded to Market Weight from Underweight. SanDisk Corp rose 3.2% after Morgan Stanley raised its earnings per share estimate for 2010 and said the company's 2009 loss was likely to be narrower than it previously estimated. Dell climbed 0.5%.

US light crude oil for August delivery slipped $0.52 to $59.89 a barrel. COMEX gold for August delivery lost $3.70 to $912.50 an ounce. Treasury prices went higher, lowering the yield on the 10 year note to 3.3% from 3.4%.

The Nikkei dropped 236.95 points to close at 9,050.33 this morning. Prime Minister Taro Aso's plan to dissolve parliament led stocks lower on concern that political turmoil will hurt the economy. Electronics and car makers were hit by falling US consumer confidence.

The Hang Seng is currently 448.56 points lower at 17,259.86. Losses are broad based, again in reaction to the consumer confidence data from the US. Cathay Pacific Airways loses 3.4% while Esprit Holdings falls 3.3%. Chigo Holding, which makes air conditioners, rallies 37% on its debut.

The FTSE 100 is currently 7.81 points lower at 4,119.36. Xstrata leads the fall, down 4.2%, after The Observer newspaper said it will offer a £5 billion to convince Anglo American investors of its merger bid. On the upside, Friends Provident jumps 5.1% after Resolution confirmed it is looking to buy life insurer. Old Mutual climbs 1.8% after UBS upgrades the stock to Buy from Neutral. Man Group adds 1.5% after UBS upgraded the stock to Neutral. Elsewhere, British Airways has declined to comment on reports that it has secured shareholder backing for an emergency rights issue of up to £500 million as it fights to secure its future, according to The Times today. Centrica has reportedly made a $2 billion bid for North Sea gas producer Venture Production as it seeks to increase its gas reserves. However, the chief executive of Venture said its shareholders were looking 'significantly in excess' of the 845-pence a share takeover offer made by Centrica.

Economics
US Treasury budget (Jun) 19:00 BST 12:00 EDT

The CBO is estimating a budget deficit of USD97bn in June, even though this is typically a surplus month due to quarterly payments of estimated individual and corporate income taxes. June receipts are expected to be 18% (or USD46bn) lower than last year, reflecting declines in corporate receipts as well as reduced individual withholding due to the Making Work Pay tax credit. Meanwhile, outlays are expected to rise 38% (or USD85bn) from a year ago, boosted by stimulus spending, increased unemployment benefits, and support for Fannie Mae and Freddie Mac.

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