FTSE 100	5145.74, -71.73	Dow	10120.46, -115.7
FTSE 250	9213.78, -31.47	Nasdaq	2179, -42.41
FTSE All Share	2640.46, -32.5	S&P 500	1084.53, -12.97
Nikkei	10198.04, -216.25	Hang Seng	20089.53, -266.84
Oil (Crude)	$73.64, -$0.03	Gold	$1083.60, -$0.90
Base Rate	0.5%	10 Yr Gilt	3.94%
£/$	1.616	£/€	1.1574
1 month LIBOR	0.517	3 month LIBOR	0.616

Markets

London - The FTSE 100 tumbled 71.73 points to 5,145.74 yesterday. Weaker metal prices weighed on raw material producers. AstraZeneca helped drag the index lower after posting earnings that missed estimates and issuing a sales guidance and stock buyback that disappointed some analysts. This morning the index is 36.73 points higher at 5,182.47 with investors looking towards the US GDP figures due at 1:30pm.

New York - US stocks sank yesterday following weak economic data and disappointing results from the technology sector. The number of Americans filing new claims for unemployment fell to 470,000 last week, down from a revised 478,000 the previous week. Forecasts had been for claims to fall 450,000. Continuing claims, a measure of individuals who have been receiving benefits for a week or more, fell to 4,602,000 from 4,659,000 the previous week versus expectations for 4,593,000 claims. The Dow Jones lost 115.7 points to close at 10,120.46, the S&P 500 fell 12.97 points to 1,084.53 and the Nasdaq dropped 42.41 points to 2,179. Tech shares were led lower by Motorola and Qualcomm after both companies reported lower than expected earnings. In contrast, 3M, AT&T and Procter & Gamble all topped expectations. 3M still finished 1.9% lower, AT&T inched higher and P&G gained 2%.

Tokyo - The Nikkei finished 216.25 points lower at 10,198.04 this morning. Exporters suffered following the weak disappointing jobs data from the US. Nintendo Co fell after a price cut squeezed its quarterly profit.

Hong Kong - The Hang Seng loses 266.84 points to 20,089.53, on course to complete its third straight weekly decline.

Economics

US GDP (Q4, advance) 13:30 GMT/08:30 EST

Analysts look for Q4 GDP to rise by 3.7%. An even bigger increase cannot be ruled out, as the pace of inventory-shedding slowed sharply, and analysts see this adding nearly 2% pts to growth. However, some of this boost should be offset by higher imports (+18%), and analysts estimate a small drag from net trade, even though exports (+21%) also rose solidly. Consumption growth at 1.9% and another double-digit rise in residential construction (from a very low base) should help support final sales, but business fixed investment (-2%) is likely to remain tepid.

US Employment cost index (Q4) 13:00 GMT/08:00 EST

Analysts expect the employment cost index to rise 0.5% in Q4, a bit quicker than the pace seen in the previous three quarters but still quite modest overall. Wages and salaries could rise 0.6%, while analysts look for benefit costs to rise 0.5%. The y-o-y rate for the ECI would stay at just 1.5%.

US Chicago PMI (Jan) 14:45 GMT/09:45 EST

Chicago-area manufacturers with ties to the auto industry noted further improvement in the latest Beige Book, while exporters pointed to continued demand, especially from Asia. Contacts also noted that their orders books were filling up for Q1 2010. These factors could make the Chicago PMI one of the stronger-performing manufacturing surveys for the next few months. Analysts look for the headline index to stay firm at around 59 in December.

US University of Michigan confidence (Jan, final) 14:55 GMT/09:55 EST

The weekly ABC News consumer comfort index rose to -41 in the first week of January but dropped back to -49 by the middle of the month. The upward creep in gasoline prices since yearend may be having some negative impact on confidence. Analysts look for the final reading of January Michigan January to be revised lower to 72.

Corporate

Asset manager and investment bank Investec Ltd said its attributable earnings remained in line with a year ago for the first nine months of its financial year as defaults and impairments continued to rise but net operating income edged higher. Investec, like other lenders, has been hit by bad debts as customers struggled through the global recession. Investec cautioned it remained uncertain about the pace of economic recovery. Net operating income rose 1% for the period through Dec. 31, while the credit loss as a percentage of average gross loans annualized was 1.1%, in line with guidance given last year, the company said. Although there has been a sustained period of stability in financial markets, operating fundamentals remain mixed with activity levels below historic trends," it said. "While the pace of economic recovery remains uncertain the group believes that it is well placed to capitalize on opportunities presented in a much changed operating environment." With about GBP7.4 billion to support its activities, Investec said it has a strong liquidity position. The bank said its core loans and advances grew by 7% to GBP17.4 billion, customer deposits increased 33% to GBP19.3 billion and third-party assets under management increased 38% to GBP67.2 billion over the nine months.

The above details are provided for information only and are not intended to be construed as solicitation for the sale or purchase of any particular investment nor as specific investment advice.

 

Posted: January 29th, 2010 under Asset Management.
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