Thomson Financial Europe AM at a glance share guide: Stocks, oil mixed

Wed, Feb 20 2008, 05:10 GMT
http://www.afxnews.com

LONDON (Thomson Financial) - US SUMMARY: Stocks lower, oil rises above 100 usd a barrel

Index Change Pct change

*DJIA 12,337.20 -11.00 -0.09

*Nasdaq 2,306.20 -15.60 -0.67

*S&P 500 1,348.80 -1.20 -0.09

Nymex crude

for March 100.01 usd +4.51 usd

10 yr US

treasury 3.87 pct

* Yesterday's close

STOCKS: Wall Street gave up a big early advance and ended mixed after oil prices closed above 100 usd for the first time and stoked fears that inflation will stymie an already troubled economy. The market was also concerned that rising inflation might make the Federal Reserve reconsider its bias toward lowering interest rates to help the economy.

BONDS: Long-term Treasury prices turned higher after morning selling pressure drove yields up to levels high enough to attract investors. Prices opened lower amid worries that the Federal Reserve has intensified inflation by cutting interest rates too much. The selling made government bonds more attractive as prices and yields move in opposite directions.

FOREX: The dollar slipped against the euro and yen but gained on the pound ahead of the release of US economic data this week. In late New York trading, the euro rose to 1.4732 usd from 1.4651 usd late Monday in London and 1.4678 usd in New York last Friday.

The dollar edged down to 107.60 yen from 108.15 yen Monday in London and 107.69 yen late Friday in New York, while the British pound dropped to 1.9491 usd from 1.9516 usd on Monday in London and 1.9603 usd Friday in New York.

OIL: Light, sweet crude for March delivery rose 4.51 usd to settle at a record 100.01 usd a barrel on the New York Mercantile Exchange after earlier rising to 100.10 usd, a new trading record. It was the first time since Jan 3 that oil had been above 100 usd.

METALS: Precious metals prices surged, driven by a drop in the dollar and expectations that ongoing electrical power problems in South Africa will lead to a protracted decline in platinum and gold supplies.

Gold for April delivery soared 25.50 usd to 931.60 usd an ounce on the Nymex, while March silver advanced 46.2 cents to 17.580 usd an ounce. Nymex copper moved 19.90 cents higher to 3,7220 usd a pound.

EVENTS:

Jan consumer prices

Jan new residential construction

Jan real earnings

Jan Cleveland Fed median CPI

Transocean Q4 results. EPS forecast 2.55 usd vs 1.25

TJX Cos Q4 results. EPS forecast 0.62 usd vs 0.51

Watson Pharmaceuticals Q4 results. EPS forecast 0.31 usd vs 0.25

ASIA SUMMARY: Stocks fall; US dollar higher

Index Change Pct change

Nikkei 225 13,418.86 -339.05 -2.46 (0428 GMT)

S&P/ASX 200 5,531.20 -87.90 -1.56 (0428 GMT)

Straits Times 3,084.56 -13.50 -0.40 (0215 GMT)

Hang Seng 23,733.08 -390.09 -1.62 (0429 GMT)

Seoul Composite 1,695.03 -25.49 -1.48 (0430 GMt)

BSE Sensex 17,900.20 -175.46 -0.97 (0432 GMT)

usd-yen 107.96 +0.23 +0.21 (0015 GMT)

10-year JGBs 1.475 pct +0.015 +1.03 (Intra-day)

Brent North Sea 97.89 usd -0.67 -0.68 (Intra-day)

crude for April

STOCKS: Markets across Asia fell today, with Japan and China leading the selloff, after an unexpected spike in oil prices to their first close above 100 usd a barrel stoked inflation fears.

BONDS: Japanese government bond prices were mostly slightly lower this morning, reflecting weaker US Treasury prices on concern about inflation as oil prices hit record highs. The Bank of Japan's policy board reaffirmed at its late January meeting that it will pay close attention to increased downside risks in the US caused by the credit crunch and the weak housing market, according to the minutes of the meeting, released today. The board also pledged to monitor the downside risk in Japan brought about by a fall in housing investment, as well as the surge in commodity prices and its implications for the global economy.

FOREX: The US dollar was higher against most major currencies midway through the morning session in Sydney, trimming overnight losses as investors positioned themselves ahead of the release of key economic data this week. The Australian dollar extended gains against the US dollar in the morning session after the minutes from the Reserve Bank of Australia's (RBA) interest rate meeting earlier this month showed the central bank contemplated raising rates by 50 basis points.

OIL: World oil prices eased in Asian trade after peaking to fresh record levels overnight amid speculation OPEC will cut crude output. In morning trade, New York's main contract, light sweet crude for delivery in March was down 52 cents to 99.49 usd per barrel. The contract soared to an all-time intraday high of 100.10 usd a barrel before closing up 4.51 usd at a record 100.01 usd on the New York Mercantile Exchange.

METALS: Platinum eased off a record high set in midmorning trade Tuesday but remained well bid on continued fears a

supply shortfall linked to the energy crisis in South Africa will cause stockpiles of the metal to contract. Among other

precious metals yesterday, gold rose to 923.55 usd from 902.90 usd in late New York trade yesterday as the US dollar

softened. In addition, the precious metal was also boosted

by a rally in oil prices. Meanwhile, silver was trading at 17.38 usd yesterday against 17.10 usd. Copper continued above 8,000 usd yesterday as

strong buying interest from China and falling stockpiles of the red metal gave prices a boost. Other base metals also were

higher yesterday.

EVENTS:

Bank of Japan releases minutes from monetary policy meeting held on Jan 21, 22

EUROPE SUMMARY: London shares close higher; oil surges

Index Change Pct change

*FTSE 5966.93 +20.31 +0.34

*DAX 7002.29 +34.74 +0.49

*CAC 4885.83 +24.03 +0.49

UK 10-year

Bond 102.81 +0.01

UK 30-year 103.48 +0.21

Bond

stg-usd 1.9510 -0.0002 (Intra-day)

eur-usd 1.4650 +0.0091 (Intra-day)

Brent Crude

ICE (April) 96.69 usd +1.78 usd (1620 GMT)

* Yesterday's close

STOCKS: UK blue chips closed higher, with the FTSE 100 going through the 6,000 barrier briefly, helped by a bullish conference call at Barclays prompting a turnaround in the banking sector, and a strong start on Wall Street.

Barclays had been a casualty in the morning after its full-year results, which saw pretax profit fall 1 pct to 7.076 bln stg. They also included 1.635 bln stg of subprime asset writedowns. But analysts said the results were broadly in line with expectations, and were even more convinced of Barclays' strength after a late-morning conference call.

This helped shake off some of the gloom in the sector, which had been made worse earlier in the day by Credit Suisse unexpectedly reporting 2.85 bln usd in writedowns.

Meanwhile, Anglo American PLC is expected to post higher full-year underlying earnings today, although investors will be looking for any acquisition news or an update on the impact of the South African power crisis on the company's operations this year and beyond.

Mortgage lender Alliance & Leicester is expected to unveil a 29 pct decline in annual profit today, held back by large-scale write-downs against its debt-backed investments in the wake of the credit squeeze.

Rexam PLC, the world's largest can maker, is expected to report an 8.3 pct decline in full-year underlying profit today hurt by higher aluminium costs, a weak US dollar and general slowdown in the plastics activities.

BONDS: European government bonds reversed earlier gains as European equity markets recovered and Wall Street opened higher. UK gilts tracked their European counterparts, following the turnaround on the London stock market.

FOREX: The pound slumped to a one-month low against the euro on concerns over the outlook for the UK economy combine with the continued fallout from news of the planned nationalisation of Northern Rock. Elsewhere, the dollar was on the back foot against the euro as concerns intensify that the Federal Reserve's aggressive monetary easing will not be able to stave off a severe economic downturn. The euro hit a two-week high against the dollar of 1.4756 usd.

OIL: Oil rose more than 2 usd as a spat between Venezuela and ExxonMobil continued to support, as technical buying fuelled prices and on speculation OPEC will not release more oil for the third time in a row.

METALS: Platinum eased off a record high set in midmorning trade but remained well bid on continued fears a supply shortfall

linked to the energy crisis in South Africa will cause stockpiles of the metal to contract. At 1455 GMT, spot platinum was quoted at 2,119 usd an ounce against 2,062 usd in late New York trade Monday.

Gold rose to 923.55 usd from 902.90 usd as the US dollar softened, boosting the precious metal's appeal as an alternative investment. Meanwhile, silver was trading at 17.38 usd against 17.10 usd.

EVENTS:

UNITED KINGDOM

INTERIMS

Blue Bay Asset Management

Thorntons

FINALS

Anglo American

Alliance & Leicester

Allied Irish Banks

Arc

Fairpoint Group

London Capital Group Holdings

Millennium & Copthorne

Pendragon

Rexam

AGMs

Ashpool Telecom

Birmingham City

Renovo

SCi Entertaiment

EGMs

Birmingham City

Galahad Gold

Real Affinity

SCi Entertainment

WH Smith

ECONOMICS

UK Jan public finance

UK Jan provisional M4

BoE minutes to Feb 7 meeting

UK CML Jan mortgage lending

UK BSA Jan mortgage lending, savings

UK CBI monthly industrial trends survey

BENELUX

ING Q4 results. Underlying pretax profit forecast 2.938-3.451 bln eur vs 2.496 bln

Heineken FY. Net profit before exceptionals forecast 1.035 bln vs 930 mln; sales 12.652 bln versus 11.829 bln

Hagemeyer FY

Unit 4 Agresso EGM over CODA takeover

EASTERN EUROPE

Hungary Dec wage data

Polish Finance Ministry holds bond switch tender

Czech 5-year govt bond auction

Grupa Lotos reopens shareholders meeting

Asseco Poland and Prokom Software hold shareholder meetings on their tie-up

Bank BPH shareholders meeting on changes in supervisory board

BZ WBK Q4 results. Net profit forecast 216 mln zlotys

Agora Q4 results. Net profit forecast 29.9 mln zlotys

EUROPEAN UNION/EURO ZONE

ECB longer-term refi result

EU rules on acquisition by IBM of Telelogic

FRANCE

Schneider FY results

BNP Paribas FY results. Net profit forecast 7.8 bln eur, up 7 pct

EDF FY results. Operating profit forecast 9.67 bln eur, up 3.4 pct

TF1 FY results. Net profit forecast 226 mln eur vs 452.5 mln

GERMANY

Jan PPI. Forecast mth-on-mth +0.3 pct vs -0.1; yr-on-yr +2.8 pct vs +2.5

MLP preliminary FY results

Fresenius Medical Care results. Net profit forecast 193.9 mln usd vs 152 mln

Fresenius SE FY results

Deutsche Boerse annual news conference

GREECE

Aegean Airlines FY results. Net profit forecast 35 mln eur, up 38 pct

ITALY

Dec industrial sales, orders

Espresso FY results. EBIT forecast 170.7-171.7 mln eur vs 163.3 mln; net profit 79.9-85.2 mln eur vs 103.6 mln

Rome court hearing on Air One challenge to Alitalia/Air France talks

PORTUGAL

Jan Industrial Production

BCP conference call after FY results

Stock market regulator CMVM's news conference on new regulation against stock market crime

SCANDINAVIA

Sweden Jan CPI

Kinnevik FY results

Tomra Systems Q4 results. Pretax profit forecast 117 mln nkr vs 138 mln; sales 870 mln nkr vs 1.054 bln

Electromagnetic Geoservices Q4 results

Swedish Match Q4 results

Oriflame Q4 results

SPAIN

Final Q4 GDP. Forecast qtr-on-qtr +0.8 pct vs +0.7; yr-on-yr +3.5 pct vs +3.8

Iberdrola FY results. Net profit forecast 2.135-2.368 bln eur vs 1.660 bln

Iberdrola Renovables FY results

Cintra FY results. EBITDA forecast 685.7-696.6 mln eur vs 593.0 mln; revenue 874.9 mln-1.056 bln eur vs 886.0 mln