US stocks closed lower on Monday, limping through the last trading day of 2007 but closed the year with respectable gains. Trading was light as investors looked to polish their portfolio's ahead of the year end. At the close, the DJIA was 101.05 points lower at 13264.82, the S&P500 ended 10.13 points lower at 1468.36 and the Nasdaq finished 22.18 points lower at 2652.28. For the year, the DJIA was 6.4 percent higher, the S&P500 3.5 percent higher and the Nasdaq 9.8 percent higher.
In economic news, the number of existing homes sold in November inched higher, according to the National Association of Realtors. The increase was expected by economists but still helped give some companies in the housing sector a lift. Shares of Hovnanian Enterprises gained 6 percent, after sinking immediately after the report.
Countrywide Financial added more than 2 percent, and Washington Mutual gained 5 percent. Home Depot also gained, adding more than 1 percent.
In the banking sector, it was reported in the Observer that Merrill Lynch could receive another infusion of capital from sovereign wealth funds. Last week, Merrill Lynch said it was selling a $4.4bn stake in Singapore's state owned investment branch in an effort to shore up its capital position after taking huge subprime related writedowns in the company's third quarter. The stock turned nearly 2 percent higher in afternoon trade, after falling the first part of the day.
Citigroup, JP Morgan and Bank of America, which have all suffered this year all traded higher at the close.
In corporate news, it was reported that billionaire investor Kirk Kerkorian's Tracinda Corp is paying $684m for a 35 percent stake in Delta Petroleum, an independent energy exploration company.
US light crude for January delivery fell 2 cents to $95.89 a barrel on NYMEX. For the year crude oil soared $34.93 a barrel, a gain of 57 percent, and came close to the $100 a barrel mark in November.
Treasury prices rose, with the yield on the 10 year note falling to 4.03 percent, down from 4.07 on Friday.
In currency trading, the dollar gained slightly versus the euro and lost ground against the yen.
COMEX gold for February delivery fell $4.70 to $838 an ounce.
The Tokyo stock market is closed today and tomorrow, and trading will resume for half a day only on Friday.
UK stocks fell on Monday, ending a year overshadowed by credit crisis and market turmoil with gains of 3.8 percent, the worst performance since 2002. The index closed 20 points lower at 6456.9 in thin trade and in a shortened session, before the market closed for New Years Day.
Oil stocks were the worst performers, with BP down 0.7 percent and Royal Dutch falling 0.8 percent.
Miners tracked metal prices lower. BHP Billiton and Rio Tinto fell 1 percent and Anglo American lost 0.6 percent.
Banks also fell, with HSBC falling 0.7 percent and Barclays 0.5 percent lower. The DJ STOXX banking sector index ended the year nearly 17 percent lower, its worst performance since 2002.
Glaxo and AstraZeneca fell 0.2 and 0.5 percent respectively after the drugmakers said the SFO had asked them to hand over confidential documents, following allegations bribes were paid to win contracts in Iraq.
Friends Provident added 2.8 percent to become the FTSE's best percentage performer. The Sunday Times said the company is putting the finishing touches to a strategic review, which is likely to lead to a sale of all or part of the company.
Economics
UK PMI manufacturing (Dec) 09.30 gmt
The CBI industrial trends survey for December declined slightly but it still pointing to impressive growth in the manufacturing sector. Global trade is currently still robust, largely driven by strength in emerging markets, so optimism in the manufacturing sector is likely to continue.
US ISM manufacturing (Dec) 15.00 gmt
The latest Empire Index fell to 10.3 from 27.4, with new orders and shipments falling but still in solid territory. ISM manufacturing to be subdued at 51.
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