15/03/10

FTSE 100	5625.65, +8.39	Dow	10624.69, +12.85
FTSE 250	9941.56, +87.12	Nasdaq	2367.66, -0.8
FTSE All Share	2878.68, +7	S&P 500	1149.99, -0.25
Nikkei	10751.98, +0.72	Hang Seng	21079.10, -130.64
Oil (Crude)	$81.24, -$0.87	Gold	$1102.20, -$6
Base Rate	0.5%	10 Yr Gilt	4.1%
£/$	1.513	Euro/Gbp	0.907

Markets

indices were flat on Friday as stocks struggled for direction following mixed economic data and a lack of corporate news. The Commerce Department reported retail sales rising 0.3% last month, against expectations for a decline. In contrast, the University of Michigan consumer sentiment index fell to 72.5 in early March from 73.6 in the previous month. Analysts had forecast a slight rise. The Dow Jones added 12.85 points to 10,624.69, the S&P 500 slipped 0.25 points to 1,149.99 and the Nasdaq lost 0.8 points to 2,367.66. Bank shares were lower as some investors chose to lock in profits, following a strong week as analysts had noted an improved outlook for the sector. Caterpillar was the Dow’s top gainer a day after the heavy equipment maker said it could triple its current US output of hydraulic excavators.

The Nikkei added just 0.72 points to close at 10,751.98 this morning. Gains among shipping companies after a jump in commodity transport fees were tempered by ongoing concerns that deflation will persist as the job market slumps. The Hang Seng dropped 130.64 points to 21,079.10 today. The index hit a one week low after China Shenhua Energy reported earnings that missed analysts’ estimates, and on concern China will act to cool inflation and slow economic growth.

The FTSE 100 rose 8.39 points to close at 5,625.65 on Friday. BSkyB rallied 5% on rumours that News Corp, which already owns 39% of the company, may be planning to pay 735p a share for the stake it doesn’t already own. Banks were stronger after the sector rallied in the US on Thursday. This morning the index retreats 8.45 points to 5,617.20. Miners dominate the fallers board, led by Xstrata which is down almost 2%. BT Group leads the risers after Citigroup upgraded the company.

Economics

Empire manufacturing (Mar) 12:30 GMT/ 08:30 EDT

The last round of monthly manufacturing surveys continued to indicate a sector in the process of recovery. The Empire index has been in positive territory for the past six months, and manufacturers have become increasingly optimistic about the outlook for new orders. Analysts look for the Empire index to drop slightly to 22.

US Treasury international capital flows (Jan) 13:00 GMT/ 09:00 EDT

Net foreign purchases of Treasury notes and bonds have remained sizeable, according to recent TIC data releases. However, market attention has focused recently on China’s total holdings of Treasuries, which fell by USD9bn in November and USD34bn in December (including bills as well as notes and bonds).

US Industrial production (Feb) 13:15 GMT/ 09:15 EDT

Poor weather in February had a sizeable effect on manufacturing hours, with a 1% drop in the average workweek translating into a 0.9% decline in aggregate hours worked. Analysts see this impact in a range of industries, including non-metallic minerals, electrical equipment, motor vehicles, apparel, and rubber/plastics. Analysts think manufacturing output could fall 0.5%, with total industrial production down 0.3%.

US NAHB housing market index (Mar) 17:00 GMT/ 13:00 EDT

Homebuilder confidence surprised on the upside in February but has essentially tracked within a range of 15 to 20 in recent months – pointing to very weak overall conditions – and analysts see little on the horizon to alter this trend. Homebuilders face contrasting micro and macro trends. A prolonged period of adjustment has helped to bring down the inventory of unsold homes to more normal levels but the ingredients for a broader housing market upturn – rising consumer confidence, employment and credit availability – remain elusive. The overhang of supply in existing homes, largely the product of rising foreclosures, is also a powerful constraint on new home sales, while most indicators of housing market activity have disappointed following the expiry of the first homebuyer tax credit. Overall, analysts look for a slight reduction in homebuilder confidence to 16 in March from 17 in February as expectations of future sales activity are scaled back.

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