world stock market news

World stocks fall on euro debt, growth fears

Global stock markets reeled Tuesday amid growing fears the European debt crisis threatens a return to recession and a spike in dangerous tensions between North and South Korea.

Investors, rocked by fresh turmoil in the Spanish banking sector, were also hit by the prospect of severe austerity measures in the eurozone that could slam the brakes on the fragile global economic recovery.

Reflecting the growing tensions, rates for money lent between commercial banks pushed higher, stoking worries there could be a repeat of the credit crunch of 2008 sparked by the collapse of US investment bank Lehman Brothers.

Investors meanwhile were buying safety — the dollar and US government bonds — in the hope of riding out a storm which has been building for months as first Greece and then other weaker eurozone states got into difficulty.

After heavy losses in Asia and Europe, US stock markets recovered from some of the damage inflicted early in the session.

The blue-chip Dow Jones Industrial Average recouped losses of over 250 points to finish just above the symbolic 10,000-point mark, but still in the red.

The Dow dropped 22.82 points (0.23 percent) to 10,043.75 while the broad-based S&P 500 staged a dramatic comeback, closing 0.38 points or 0.04 percent higher at 1,074.03.

Wall Street “again took its cues from overseas today, with the Korean peninsula and the eurozone sharing the global spotlight,” said Andrea Kramer of Schaeffers Investment Research.

“A valiant eleventh-hour blitz by the bulls kept the Dow Jones Industrial Average atop round-number support, and put the S&P 500 Index just north of breakeven.”

At one point all 30 of the Dow’s stocks had been down, with shares in consumer and financial firms hit hardest.

But amid the turmoil, news that US consumer confidence — a key component for any economic recovery — improved for the third straight month in May provided a boost.

Still, the US rally game too late to nudge up European markets.

“Investors continued to flee risky asset classes on Tuesday… causing European indices to slump,” said City Index analyst Joshua Raymond.

Michael Hewson, analyst at CMC Markets, said there were “increased fears about the stability of the European banking system and the financial viability of sovereign governments.

“Bank borrowing costs… have risen to their highest levels since July last year on concerns about the integrity of the European banking system,” he said, adding that markets were now worried about a double-dip recession.

In Europe, London’s benchmark FTSE 100 index of leading shares slumped 2.54 percent. In Paris, the CAC 40 fell 2.90 percent and in Frankfurt the DAX lost 2.34 percent.

Other European markets fared even worse, with Madrid down 3.05 percent and Milan losing 3.40 percent but these two markets were well off their early lows.

Meanwhile, the European single currency stood at 1.2351 dollars in late New York trade, coming off an early low of 1.2178 dollars in London trade.

In Asian trade earlier Tuesday, stocks were hit by reports that North Korea was on combat alert after it was blamed for the sinking of a South Korean ship in March.

Tokyo lost 3.06 percent, hitting its lowest level since November 30, Hong Kong dropped 3.47 percent and Shanghai shed 1.90 percent.

“The bloodbath continues on equity markets as a heightened sense of concern creeps back in to traders’ minds,” said ODL Securities analyst Owen Ireland.

For weeks we’ve seen “experts” telling us that Greece will be an isolated event. That it could have an impact elsewhere in Europe, but it shouldn’t have any bearing on the US or Australia (Australia’s different you see).

Then at the start of this week talk of contagion started to do the rounds. But again, maybe Europe and the UK will go pear-shaped, but that’s all. We’ll be fine. Our lovely banks don’t have any Greek exposure.

But now today we’ve got “abyss” being used.

That’s hardly surprising considering the deep mess Greece and the European Union is in. And quite frankly it’s something that should be taken seriously.

We’re not talking about common-all-garden riots here. We’re not talking about World Economic Forum style riots with a few bags of flour being thrown and the odd urine water bomb splashing across the old bill.

It’s not the type of riot where the participants turn up for a bit of copper baiting and argy-bargy, fully expecting to return to their day job in the call centre on Monday morning. From what we can see it’s yer proper lootin’ and a killin’ civil unrest.

But we’ll see. You never know, it could all blow over before you know it. However, we’d want pretty decent odds if we were going to place a bet on it.

So who’s to blame for the Greek mess? Are the Greeks behaving like spoilt brats? Do they deserve the punishment that’s being dealt to them? Haven’t they received all the benefits of government largesse?

It won’t surprise you to learn that we firmly place the blame on the government. Sure, the Greek public aren’t completely innocent, thinking they could have something for nothing. But when it comes down to it, the prime reason for the current mess is the politicians and their insatiable appetite for power.

I’m afraid it’s the nature of the political beast. And it’s why we believe in a minimalist government.

The more powers that politicians are granted, the more they’ll want. The more they get to control things, the more they’ll want to control other things.

Eventually it reaches a tipping point. The government ends up having its fingers in so many pies its actions have the biggest impact on the fortunes of the economy. You can see that in Greece, and you can see that in, er, Australia…

Just look at what the Fairy Ruddfather has done to the markets this week. The impact has only been this big due to the excessive influence of government.

And it adds further evidence to support our claim that Australia does not operate a truly free market. In a free market with limited government, the government would not have this kind of power and could therefore not make these decisions.

As we’ve pointed out all along, it is the excesses of government that is the overwhelming negative influence on the economy, not free enterprise.

The front page of today’s Australian Financial Review (AFR) has political hack Laura Tingle leading with:

“The war of words over the resource super profits tax has overshadowed how the Henry review has presented the government with a new fiscal policy lever to control the economy. The lever is a new tax which, as a macro-economic policy, could reweight the way the economy works.”

To free-marketeers that kind of statement is enough to make you drop your copy of The Wealth of Nations into your bowl of cornflakes of a morning.

We love the last part especially; it “could reweight the way the economy works.”

See what I mean about the obsession for hapless bureaucrats and politicians to control things? They just can’t help themselves.

The idea that the Resource Super Profits Tax is a new lever to control the economy is just plain madness. But again, it’s the overconfidence of bureaucrats who believe they saved the Australian economy from disaster.

We’d love to hear from Ms. Tingle her explanation of how economies work. Our guess is that she believes it involves politicians and bureaucrats pulling and pushing levers like an old signalman.

Clearly Ms. Tingle and other government and tax lovers have some bizarre idea that economies can be directed at the whim of bureaucrats just as a child can control a toy train set.

In fact, in a Money Morning exclusive, below is a photo we secretly took this morning of a government bureaucrat in action - not surprisingly he’s sitting down on the job (probably an occupational health and safety thing):

Greek’s debt troubles raise contagion worries

The Greek debt crisis sent a shudder through global financial markets and served as a dramatic reminder of how vulnerable the world economy remains to the threat of a fast-spreading financial panic.

To many, market developments this week served as a spooky reminder of the fall of 2008 and the panic that spread worldwide after Lehman Brothers collapsed with disastrous consequences in September 2008.

“If people get scared that Greece could default, they are going to be scared that Portugal will default and then other countries. Once people panic, they panic about everything,” said David Wyss, chief economist at Standard and Poor’s in New York. “We saw that in the wake of the Lehman Brothers failure.”

The Dow Jones industrial average ended Thursday up 122.05 points at 11,167.32, while European stock markets rose after two days of steep declines.

Those market gains came as European and Germany officials sought to assure investors that they were working quickly to approve a bailout for Greece with European Union monetary affairs commission Olli Rehn, saying he was confident that talks on a bailout package of support from European countries and the International Monetary Fund would be wrapped up in a few days.

Underscoring the need for quick solutions, the White House released a statement late Wednesday that President Barack Obama and German Chancellor Angela Merkel had discussed the “importance of resolute action by Greece and timely support from the IMF and Europe to address Greece’s economic difficulties.”

In Asia, while there are not yet significant concerns about the creditworthiness of the region’s governments, big economies like China and Japan still have much at stake. Europe is an important export market for Asia, and China and Japan are among the biggest investors in the debt issued by the United States and European countries with holdings worth billions of dollars.

Some lenders in the region, meanwhile, are already fretting that Europe’s problems will chill the financial system, making it harder for banks to borrow the short and long-term money that helps fund their own lending to businesses and consumers.

There are also concerns the turmoil in Europe could convince China to delay any appreciation of its currency — widely viewed as undervalued — aggravating tensions with the U.S. and other trading partners. A key meeting on this issue is scheduled for May 24-25 when Treasury Secretary Timothy Geithner and Secretary of State Hillary Rodham Clinton will meet with their counterparts for talks in Beijing.

Economists noted that the debt problems hitting Greece and other European countries often occur after a financial crisis. That is because governments borrow heavily to prop up their banking systems, which sends their own debt burdens soaring.

In the current crisis, the United States has seen its publicly held debt jump from 36 percent of the total economy in 2007 to 64 percent this year. That’s the highest level since 1951, when the country was still paying off the debt run up to fight World War II.

Debt levels of all developing countries are rising to levels not seen over the past 60 years, the IMF said in an economic survey released last week.

“The Greek problem highlights a broader problem across the globe,” said Mark Zandi, chief economist at Moody’s Analytics. “Governments used their resources to end the financial panic and the Great Recession, but now they have to figure out how to pay for it.”

While the United States and Japan, the world’s two biggest economies, also have heavy debt loads, they enjoy advantages in financing that debt that Greece does not have.

More than 90 percent of Japan’s debt is funded domestically, putting the country at low risk for capital flight and servicing that debt remains manageable because of low interest rates.

But Fitch Ratings did warn last week that Japan’s credit rating could worsen if Tokyo does not rein in snowballing debt, which reached 201 percent of gross domestic product in 2009. Deflation, slow growth and dwindling household savings could eventually undermine Japan’s ability to fund itself.

The rest of Asia is on sounder financial footing, especially considering its rapid growth. The region underwent a “profound deleveraging” in the 1990s following its own financial crisis, mandated by the IMF’s strict bailout conditions, said Glen Maguire, chief Asia economist at Societe Generale.

China’s government reports its debt at about 20 percent of GDP. But Tom Orlik, an analyst in Beijing for Stone & McCarthy Research Associates, says the figure is far higher than official numbers suggest.

Add in local government debt and nonperforming loans in the government-owned banks, and the level tops 50 percent of GDP, he said.

“The number is higher than the government acknowledges, and that is well known, but it is still not a very alarming number,” Orlik said.

While Asia appears strong enough to avoid the debt problems engulfing Greece and Europe, it hasn’t been immune to the anxiety the turmoil has produced with Asian equity markets being hammered this week, in line with deep share declines in Europe and the U.S.

Signaling what may lie ahead, the chief executive of ANZ Banking Group Ltd., an Australian lender with operations across Asia, warned Thursday that the sovereign debt crisis in Europe could make it harder for banks to access credit.

“I am still quite worried about the global economy,” Smith told reporters. “Europe is a mess.”

Outlook & Forecasts for 2010

• Global growth to normalize at around 4% GDP, mainly driven by growth in emerging markets
• Equity markets to rise another 10%-20% in coming months due to increased corporate profitability and operating leverage
• Re-pricing of risk in bond markets, especially sovereign debt
• Short-term rates to remain low for another few months but to rise strongly later in the year
• Long-term rates to move higher, but more moderate than short-term rates
• Inflation to remain at very low levels for another 12-18 months
• Energy prices to move higher with oil breaking USD 100/barrel in the first half of 2010
• Soft commodities to move sharply higher with upside potential of 30%+ in 2010
• Gold to consolidate after strong upward move, trading in narrow range in Q1/2010
• Gold to continue upward trend in second half of 2010
• U.S. Dollar to move lower, despite temporary upward bounces

As you can see, we’re expecting a rapidly shifting financial landscape to persist throughout the year (as it has since 2007/2008). We covered some of the broader points in last week’s macro-view, but this week I wanted to drill down and focus on just a few major trends that could be immensely profitable for you as the year wears on…

Gold Finds a New Kind of Value in the Wake of a
“Once-in-a-Century” Crisis

As we anticipated in previous A-Letter outlooks, gold has recently moved to record levels and it has been one of the best performing investments in the recent past. But should investors be worried about the upward trend of gold and take it as a sign that there is trouble ahead for markets in general?

In our view the answer is no.

We’ve written about the changing importance of gold in our previous reports, and we don’t think that gold is all that expensive at current levels. Again, once current prices are seen in a historical context, considering inflation and the weakening U.S. Dollar, gold is not expensive at all.

Also the obvious willingness of emerging markets and their central banks to use gold as an additional way of diversifying their reserves will be highly supportive for the yellow metal in the years to come…

Global Investor: Earnings Falsely
Discount a Strong Recovery in 2010

Thus far into the corporate earnings season, the results have best unimpressive. And U.S. Treasuries have noticed, as the benchmark yield on ten-year paper declines from 3.84% on December 31 to 3.70% this morning.

For the most part, revenues are flat to slightly higher while net income has indeed increased – but compared to 12 months ago that comparison is pretty easy. Combined with fudged accounting rules in the United States since May and creative accounting elsewhere, it’s no wonder banks have recovered sharply. Plus, let’s not forget the Fed’s greatest gift of all – providing a remarkably profitable spread trade where banks received near-zero percent money and thereafter reinvest in longer dated paper or make loans at a sharply higher rate of return.

With the exception of China, India and several other advanced emerging markets like Chile and Brazil, the global economy is not booming any time soon.

The West remains stuck in a debt-infested rut and the markets have begun to protest the mountains of money created since late 2008 to arrest falling prices; government bond yields are now rising over the last six weeks as the risk of a sovereign default grows. Dubai, Iceland and Greece are just the tip of the iceberg or the hors d’oeuvre before the main course.

In the United States, still nursing deep wounds inflicted by the credit crash, consumption is still largely impaired. Consumers have boosted spending compared to 12 months ago and that’s normally a good sign. However, the big gains in retail are coming from the likes of discount stores, not high-end retailing or even Wal-Mart Stores. Consumers are frugal. I suppose the “feel good” factor is long gone and won’t make a comeback until real estate recovers combined with jobs growth.

Finally, it’s noteworthy to point out again that following big declines in U.S. economic output over the past 100 years, the economy has always recovered sharply. Actually, a boom is more accurate…

The bigger the drop in GDP, the bigger the bounce. Indeed, as outlined here recently, courtesy of Grant’s Interest Rate Observer, the U.S. economy went through the roof starting in 1934 following a massive 27% crash in output from 1929 to 1933. The same story, though not as sexy, occurred in prior booms and busts.

If the above historical association is true then what can we expect in 2010? Will the United States post a significant economic recovery?

Increasingly, even amid a wall of government stimulus spending, the economy is not bouncing back vigorously. You have to wonder what lies ahead once Washington starts pulling back on spending or if the Fed is forced by the markets to start raising interest rates. There’s not much juice left here unless business spending really takes off.

singapore stock market news,australia stock market ,china stock market ,usa stock market

we’ll start with the question everyone’s asking this time of year—what should we be expecting in 2010?

A: The basic story hasn’t changed; the global economy is going through a period of rapid change and the center of the world – both economically and strategically – is shifting to the East, mainly Asia. We’re moving toward a multi-polar world order, much different from the world we have been living in at the end of the last century.

We expect that world GDP growth will accelerate to about 4% in 2010 and that more than 70% of that growth will come from new markets such as China, India and Brazil. Meanwhile, immense amounts of capital will flow to markets that experience a stronger economic growth pace…it’s just a basic law of finance and is proven by the growing capital flows to these markets.

These capital inflows have helped push up equity prices in emerging markets by 50% to 100% in the last couple of months. As a result, many investors now believe that these markets are overvalued. We strongly disagree with that assertion…

We admit that these markets might look expensive when compared to Western markets. However, investors need to realize that we are dealing with a strong and very powerful paradigm shift here, which could result in chronically high demand for investments in these regions for many years to come.

Q: What’s your take on this equity rally?

A: Many investors missed the rally (or a good portion of it ) and are still on the sidelines, waiting to enter the market when markets consolidate. This seems to be one of the reasons why markets seem so well supported against the downside at the moment. I mean; when was the last time you saw a significant 3%+ move to the downside? It’s been a while.

And, when stories like Dubai – the darling of investors– running out of money don’t even cause a market sell-off…well, the market is probably too protected on the downside. With the global economy in recovery mode, ample cash sitting on the sidelines and corporate profitability on the rise, we believe there is a good chance to see further upward momentum in equity markets next year.

Of course, our scenario is based on the assumption that we don’t get any surprise shocks next year – internal or external to financial markets. What could be a possible shock in the future? A terrorist attack, a pandemic flu or another geopolitical event? It could be any of those things. But markets are showing signs of resilience…and we think even the consequences of such an event should be predictable and manageable.

Q: How are the Western countries – Europe…the U.S., the UK – looking to you right now?

A: We do believe that Western economies will recover as global growth once again accelerates. Accelerating growth combined with a generally high degree of operating leverage means we’ll likely see corporate profits that surprise to the upside over the next couple of quarters.

There are; however, going to be significant differences in countries’ relative performance during this economic rebound…we’re most concerned about the United States as well as some European nations.

On the other hand we’re very upbeat on countries such as Australia, Norway and Switzerland for various reasons.

Q: Any other trends you’re looking out for?

A: We’re expecting a relatively strong upward pressure on energy and commodity prices. More than what most investors might be expecting. A normalization of global growth – combined with the unique supply and demand curves for energy and commodities – is set to result in an exponential price increase. Gold and other precious metals are a special case and are driven by other factors.

The concern about the global financial system and the generation of ample (and probably excess) liquidity by central banks around the world has increased concerns about paper money as a store of value. These concerns are valid in our view and we don’t think gold is overvalued at current prices considering all the factors previously explained. We can see gold prices taking a breather here for a couple of months with the most likely scenario being trading within some range.

Rising inflationary pressures, which we can see emerging in the next 2-3 years could eventually, help in driving the price of gold to $2,000…

CIT files for Chapter 11 bankruptcy protection

world stock market ,world stock market  news, singapore stock market , singapore stock market news

After struggling for months to avert bankruptcy, lender CIT Group has filed for Chapter 11 protection in an attempt to restructure its debt while trying to keep badly needed loans flowing to thousands of mid-sized and small businesses.

CIT made the filing in New York bankruptcy court Sunday, after a debt-exchange offer to bondholders failed. CIT said in a statement that its bondholders overwhelmingly opted for a prepackaged reorganization plan which will reduce total debt by $10 billion while allowing the company to continue to do business.

The Chapter 11 filing is one of the biggest in U.S. corporate history, following Lehman Brothers, Washington Mutual, WorldCom and General Motors. CIT’s bankruptcy filing shows $71 billion in finance and leasing assets against total debt of $64.9 billion.

A prepackaged bankruptcy, which has the support of major bondholders, speeds up the process of restructuring CIT’s debt and could allow it to exit court protection by the end of the year. In addition to reducing its debt, CIT said the plan cuts cash needs over the next three years, which should help it return to profitability more quickly.

“The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy,” said Jeffrey M. Peek, chairman and CEO. Peek has said he plans to step down at the end of the year.

CIT’s move will wipe out current holders of its common and preferred stock. That means the U.S. government will likely lose the $2.3 billion it sunk into CIT last year in return for preferred shares to prop up the ailing company. The government could have lost billions more, however, had it not declined to hand over more aid to the company earlier this year.

Treasury Department spokesman Andrew Williams said the government will be closely monitoring the bankruptcy proceedings, but acknowledged that “recovery to preferred and common equityholders will be minimal.”

Common stockholders set to lose their investment include FMR LLC of Boston with a 9.9 percent stake in CIT and San Diego-based Brandes Investment Partners LP with a 9.7 percent equity position, according to CIT’s filing.

CIT has been trying to fend off disaster for several months and narrowly avoided collapse in July. It has struggled to find funding as sources it previously relied on, such as short-term debt, evaporated during the credit crisis.

The company received $4.5 billion in credit from its own lenders and bondholders last week, reportedly made a deal with Goldman Sachs to lower debt payments, and negotiated a $1 billion line of credit from billionaire investor and bondholder Carl Icahn. But the company failed to convince bondholders to support a debt-exchange offer, a step that would have trimmed at least $5.7 billion from its debt burden and given CIT more time to pay off what it owes.

Analysts warned that the bankruptcy could add to the uncertainty around loans for the nation’s small businesses, especially retailers, which make up a significant portion of CIT’s clients and are already struggling with tight credit markets.

CIT is the financier for about 2,000 vendors that supply merchandise to more than 300,000 stores, many of which are gearing up for the critical holiday shopping season. They rely on the lender to cover costs ranging from paying for orders to making payroll. Any disruption caused by bankruptcy could wreak havoc on their operations, Joe Alouf, a partner with Eaglepoint Advisors, a crisis management company that is partly owned by Kurt Salmon Associates.

“CIT is the 600-pound gorilla in the industry,” Alouf said.

But CIT has already pulled back sharply on its lending to businesses as it tried to preserve cash. According to its most recent quarterly earnings report, the company originated just $4.4 billion worth of new business during the first six months of 2009 compared to $11.3 billion in the first half of 2008.

CIT said Sunday the bankruptcy filing is only for the holding company, and won’t affect its operating subsidiaries, such as Utah-based CIT Bank. CIT has filed a number of first-day motions to allow it to continue operations, including requests to keep paying wages and other employee benefits and to pay its vendors and certain other creditors in full.

The company has retained Evercore Partners and FTI Consulting as its financial advisers and Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel in connection with the restructuring plan and Chapter 11 cases.

Houlihan Lokey Howard & Zukin Capital Inc. serves as financial adviser, and Paul, Weiss, Rifkind, Wharton & Garrison LLP serves as legal counsel to the bondholders’ committee.

The House has passed a bill (HR 2751) that would provide a cash voucher of up to $4,500 for anyone who trades in older gas-hogging vehicles for new, more fuel-efficient ones.

I take a really old car that’s barely running and trade it in for a hybrid that’s on sale for about $14,500. If I get the full $4,500 (there are conditions of course), and if I use this new car exclusively for business, I’ll be able to write off the other $10,000 in a few years [for depreciation]. The deduction is going to reduce my taxes by about $5,000 and so the government is paying $9,500 for my car while I’m only paying $5,500 out of pocket – after taxes.

Seems like a sweet deal to me, but where is the government getting the money?

They might get some of the money from folks who don’t use the car for business, but that’s hardly enough. I doubt if they will get much from folks who make over $250,000 a year because in a short time we won’t have nearly as many people above that income bracket. More fuel-efficient cars will result in less federal gas taxes, so that’s not a source of new money.

What else is there? Oh, Yes. I forgot. They’re going to get that money from all the folks who have huge amounts of unreported income hidden in secret foreign bank accounts.

MORNING MARKET REPORT

Gold is the August contract on the NY Mercantile Exchange. Silver, copper and oil are the September contracts.)

NEW YORK - Wall Street shares drifted to a mostly higher close on Friday as investors mulled disappointing earnings reports.
The Dow Jones Industrial Average rose 23.95 points, 0.26 per cent, to finish at 9093.24.
The technology-heavy Nasdaq composite dropped 7.64 points, or 0.39 per cent, to 1965.96, snapping a 12-session winning streak.
The broad-market Standard & Poor’s 500 index added 2.97 points, or 0.3 per cent, to close at 979.26.

LONDON - European stock exchanges closed narrowly mixed on Friday as a near two-week rally ran into profit-taking ahead of the weekend.
In London, the FTSE 100 index of leading shares was up 16.81 points, or 0.4 per cent, at 4576.61 points.

FRANKFURT - The Dax fell 17.92 points, or 0.34 per cent, to 5229.36.

PARIS - The CAC 40 index slipped 7.27 points, or 0.22 per cent, to 3366.45 points.

TOKYO - Japanese shares rose for an eighth straight day, ending at the highest level in more than three weeks after Wall Street posted its best finish of 2009.
The benchmark Nikkei-225 index climbed 151.61 points, or 1.55 per cent, to 9944.55.

HONG KONG - The benchmark Hang Seng Index closed up 165.09 points, or 0.83 per cent, at 19,982.79.

WELLINGTON - The benchmark NZSX-50 index closed up 42.54 points, or 1.46 per cent, at 2961.17.

SYDNEY - The Australian sharemarket is likely to open higher after a mostly positive lead from the US and the commodity market.
At 0707 AEST on the Sydney Futures Exchange, the September share price index contract was 26 points higher at 4,091.
In company news on Monday, Australian Foundation Investment Co Ltd annual results and Australand Property Group first half results are due.
The case brought by the Australian Securities & Investments Commission (ASIC) against James Hardie Industries NV in the NSW Supreme Court resumes for a penalties hearing.
On Friday, big miners helped drive Australia’s stock market to its highest close since last November.
The benchmark S&P/ASX200 index closed up 25.7 points, or 0.63 per cent, at 4089.8, its highest close since November 10.
The broader All Ordinaries index gained 24.7 points, or 0.61 per cent, at 4097.3 points, its highest close since November 6.

NYMEX

Oil prices rose, powered higher by growing optimism that the US economy is on the mend.
New York’s main futures contract, light, sweet crude for September delivery, climbed 89 cents to close at $US68.05 a barrel.
In London, Brent North Sea crude for September delivery increased $US1.07 to settle at $US70.32 a barrel.

COMEX

Gold for August delivery fell $US1.70 to $US953.10 an ounce on the New York Mercantile Exchange.
September silver gained 10.5 cents to $US13.875 an ounce.
September copper fell 0.2 cent to $US2.522 a pound.

NEW YORK - Wall Street shares surged to their highest levels of 2009 on Thursday as investors cheered upbeat housing data and a strong day for corporate earnings as signs that the economic slide may be ending.
The Dow Jones Industrial Average vaulted above 9,000 for the first time since early January, gaining 188.03 points, or 2.12 per cent, to 9,069.29, the best close for blue chips since November 5.
The technology-heavy Nasdaq composite extended its winning streak to a 12th session, rallying 47.22 points, or 2.45 per cent, to 1,973.60, its highest since finish October 2.
The broad-market Standard & Poor’s 500 index climbed to an eight-month peak of 976.29, rising 22.22 points, or 2.33 per cent.

LONDON - European stock markets closed higher to chalk up a ninth consecutive day of gains and a return to the levels of January this year after positive US economic data and corporate results.
London’s FTSE 100 index gained 78.63 points, or 1.75 per cent, at 4,559.8 points.

FRANKFURT - The Dax rose 153.31 points, or 3.01 per cent, to 5,247.28.

PARIS - The CAC 40 index gained 70.83 points, or 2.14 per cent, to 3,373.72 points.

TOKYO - Japan’s Nikkei stock average rose nearly one per cent to a three-week closing high as Sony Corp and other exporters climbed on a weaker yen, with buying of futures an additional boost for the market mood.
The benchmark Nikkei-225 index rose 69.78 points, or 0.72 per cent, to 9,792.94.

HONG KONG - The Hang Seng Index gained 569.53 points, or 2.96 per cent, to 19,817.7.

WELLINGTON - The New Zealand sharemarket rose for its eighth consecutive trading day.
The NZSX-50 index closed up 18.19 points, or 0.627 per cent, at 2918.633.

SYDNEY - The Australian sharemarket has received solid leads from overseas after US stocks surged and oil prices gained overnight.
Gold and silver prices also were higher, while copper closed slightly weaker.
At 0749 AEST on the Sydney Futures Exchange, the September share price index contract was 61 points higher at 4,096.
In economic news on Friday, the Housing Industry Association - RP Data will release their residential land report for the March quarter.
In company news, Woodside Petroleum Ltd issues its second quarter production report.
Companies holdings general meetings include Optus owner Singapore Telecommunications Ltd, in Singapore, Australian Mines Ltd and Proto Resources & Investments Ltd.
Creditors of failed stocklending firm Opes Prime will meet to consider whether to accept a $253 million settlement of their claims from Opes Prime’s bankers.
On Thursday, the Australian share market closed flat after falling bank stocks ended this week’s rally and investment bank Macquarie Group and Macquarie Airports went into a trading halt.
The benchmark S&P/ASX200 index was down 4.4 points, or 0.11 per cent, at 4,064.1, while the broader All Ordinaries index gained 3.7 points, or 0.09 per cent, to 4,072.6 points.

NYMEX

Oil prices surged as a Wall Street stocks rally and rising US home sales fueled optimism that the world’s biggest economy may be pulling out of its nosedive.
New York’s main futures contract, light sweet crude for September, leapt $US1.76 to close at $US67.16 a barrel.
In London, Brent North Sea crude for September delivery spiked $US2.04 higher to settle at $US69.25.

COMEX

Gold for August delivery lifted $US1.50 to $US954.80 an ounce on the New York Mercantile Exchange.
September silver gained seven cents to $US13.77 an ounce.
September copper fell 0.15 cent to $US2.5240 a pound.

MORNING MARKET REPORT

(Gold is the August contract on the NY Mercantile Exchange. Silver, copper and oil are the September contracts.)

NEW YORK - A strong earnings-driven rally ran out of steam on Wednesday for Wall Street’s blue chips, but the technology-heavy Nasdaq extended its winning streak to 11 days.
The Dow Jones Industrial Average fell 34.68 points, or 0.39 per cent, to close at 8,881.26, snapping a seven-day winning streak for the blue-chip index.
The Nasdaq composite, meanwhile, lifted by strong results from Apple, climbed 10.18 points, or 0.53 per cent, to 1,926.38, in the longest streak of gains in the index since 1996.
The broad Standard & Poor’s 500 index fell 0.51 point, or 0.05 per cent, to 954.07.

LONDON - European stock markets closed firmer in choppy trade, with investors consolidating positions after gains of 10 per cent over the past week.
London’s FTSE 100 index gained 12.56 points, or 0.28 per cent, at 4,493.73 points.

FRANKFURT - The Dax rose 27.59 points, or 0.54 per cent, to 5,121.56.

PARIS - The CAC 40 index gained 2.18 points, or 0.07 per cent, to 3,305.07 points.

TOKYO - Tokyo finished higher, climbing for a sixth straight day on hopes of a recovery in corporate earnings.
The benchmark Nikkei-225 index rose 71.14 points, or 0.74 per cent to 9,723.16 points — the best finish since July 3.

HONG KONG - The Hang Seng Index lost 253.56 points, or 1.3 per cent, to 19,248.17.

WELLINGTON - The New Zealand sharemarket followed through after posting strong gains on Tuesday in response to a profit upgrade by casino company SkyCity.
The benchmark NZSX-50 index closed up 27.25 points, or 0.948 per cent, at 2900.443.

SYDNEY - The Australian sharemarket is expected to open weaker after US stocks fell and oil prices dropped overnight.
Higher gold, silver and copper prices could help lift the market, however.
At 0717 AEST on the Sydney Futures Exchange, the September share price index contract was six points lower at 4,031.
In economic news on Thursday, the Reserve Bank of Australia assistant governor of financial markets, Guy Debelle, addresses a Whitlam Institute Forum at the University of Western Sydney.
In company news, Petsec Energy Ltd issues second quarter results and Santos Ltd posts second quarter production figures.
Companies holding general meetings include Gulf Resources Ltd, Matsa Resources Ltd, Talisman Mining Ltd and Advance Energy Ltd.
The Australian share market closed in positive territory for the seventh consecutive session on Wednesday, driven by gains in mining and energy stocks.
The benchmark S&P/ASX200 index was up 17.8 points, or 0.44 per cent, at 4,068.5 points, while the broader All Ordinaries index gained 20.6 points, or 0.51 per cent, to 4,068.9 points.

NYMEX

Oil prices were mixed as renewed economic caution put the brakes on the market and traders digested news of a decline in US energy stockpiles in line with forecasts.
New York’s main futures contract, light sweet crude for September, dropped 21 cents to close at $US65.40 a barrel.
In London, Brent North Sea crude for September delivery rose 34 cents to settle at $US67.21 per barrel.

COMEX

Gold for August delivery lifted $US6.40 to $US953.30 an ounce on the New York Mercantile Exchange.
September silver gained 23.2 cents, or 1.72 per cent, to $US13.71 an ounce.
September copper soared 7.45 cents, or 3.04 per cent, to $US2.5255 a pound.

NEW YORK - US stocks closed with modest gains on Tuesday in choppy trade as the market weighed improved earnings reports and Federal Reserve chairman Ben Bernanke’s cautious comments about economic recovery.
The Dow Jones Industrial Average added 67.79 points, or 0.77 per cent, to 8,915.94.
The technology-heavy Nasdaq rose 6.91 points, or 0.36 per cent, to 1,916.20, and the broad Standard & Poor’s 500 index gained 3.45 points, or 0.36 per cent, to 954.58.

LONDON - European stock markets closed higher, extending gains to a seventh straight day after largely positive US corporate results bolstered growing optimism.
London’s FTSE 100 index gained 37.55 points, or 0.85 per cent, at 4,481.17 points.

FRANKFURT - The Dax rose 63.82 points, or 1.27 per cent, to 5,093.97.

PARIS - The CAC 40 index gained 31.95 points, or 0.98 per cent, to 3,302.89 points.

TOKYO - Japan’s Nikkei average climbed 2.7 per cent to its highest close in two weeks as optimism grew about a recovery in the US economy, reviving investor appetite for riskier assets and lifting blue-chip exporters.
The benchmark Nikkei added 256.70 points to 9,652.02.

HONG KONG - The Hang Seng Index lost 0.64 point to 19,501.73.

WELLINGTON - An upbeat earnings forecast from casino company Sky City On Tuesday spurred buying activity throughout the market.
The benchmark NZSX-50 index closed up 52.28 points, or 1.85 per cent, at 2873.19. Turnover was a modest $NZ94.4 million ($A76.27 million).

SYDNEY - The Australian sharemarket is expected to open in positive territory after US stocks rose and oil prices gained overnight.
Lower gold, silver and copper prices could limit gains, however.
At 0732 AEST on the Sydney Futures Exchange, the September share price index contract was 15 points higher at 4,044.
In economic news on Wednesday, the Australian Bureau of Statistics releases consumer price index data for the June quarter.
The Reserve Bank of Australia assistant governor of financial markets, Guy Debelle, takes part in a panel discussion at a Mortgage Finance Industry Association function.
In company news, BHP Billiton Ltd issues second quarter production report and Woolworths Ltd posts fourth quarter sales results.
Companies holding meetings include Asciano Group — to vote on a capital raising proposal — Namoi Cotton Co-operative Ltd and Trust Company Ltd.
On Tuesday, the Australian share market finished the day flat, as rises among the big miners helped offset a weaker banking sector.
The benchmark S&P/ASX200 index closed up 0.4 point, or 0.01 per cent, to 4050.7 points, while the broader All Ordinaries index gained 4.1 points, or 0.1 per cent, to 4048.3.

NYMEX

Oil prices moved higher, with the market anticipating that the US government’s weekly oil report will show a decline in the crude stockpile as the economy shows signs of recovery.
New York’s main futures contract, light sweet crude for delivery in August, rose 74 cents to close at $US64.72 a barrel.
The August contract expired at the close.
In London, Brent North Sea crude for September delivery gained 43 cents to settle at $US66.87 a barrel.

COMEX

Gold for August delivery fell $US1.90 to $US946.90 an ounce on the New York Mercantile Exchange.
September silver lost 14.7 cents to $US13.478 an ounce.
September copper fell 1.8 cents to $US2.451 a pound.

NEW YORK - Wall Street posted a third-successive day of gains as the market surged on surprisingly strong results from tech giant Intel and an improved economic outlook from the Federal Reserve.
The market opened higher following Intel reported earnings per share much higher than market expectations late on Tuesday.
Investors looked past data on consumer inflation which appeared to be skewed by a temporary surge in energy prices. The Labor Department said its consumer price index (CPI) rose 0.7 per cent in June.
The market’s rally gathered momentum after the Federal Reserve raised its growth outlook for the US economy and said this would likely lead to an easing of its stimulus efforts.
The Dow Jones Industrial Average leapt 256.72 points, or 3.07 per cent, to 8,616.21.
The technology-heavy Nasdaq climbed 63.17 points, or 3.51 per cent, to 1,862.9 and the broad Standard & Poor’s 500 index advanced 26.84 points, or 2.96 per cent, to 932.68.

LONDON - Europe’s leading stock markets surged, boosted by Wall Street, as investors eyed a global economic recovery following positive earnings and economic data.
Intel’s second quarter result boosted European markets.
London’s FTSE 100 gained 108.78 points, or 2.57 per cent, to close at 4,346.46 points.

FRANKFURT - The Dax soared 146.75 points, or 3.07 per cent, to close at 4,928.44 points.

PARIS - The CAC 40 index rose 89.4 points, or 2.9 per cent, to 3,171.27.

TOKYO - Many investors locked in profits following a sharp rally in the previous session, although chipmakers got a boost after US semiconductor maker Intel posted better-than-expected second-quarter results and offered a bright outlook.
The Nikkei-225 index climbed 7.44 points, or 0.08 per cent, to 9,269.25.

HONG KONG - The market was boosted by gains in property stocks ahead of the launch of a major residential project, dealers said.
The Hang Seng Index rose 372.93 points, or 2.09 per cent, at 18,258.66.

WELLINGTON - The New Zealand share market posted gains but they were modest compared to the Australian market.
The benchmark NZX-50 index closed up 15.58 points, or 0.57 per cent, at 2,764.08.
Turnover was $NZ94.96 million ($A76.73 million). There were 43 rises and 20 falls among the 111 stocks traded.

SYDNEY - The Australian sharemarket is expected to open significantly higher after a strong surge on Wall Street sparked by a brighter economic outlook from the Federal Reserve.
At 0730 AEST on the Sydney Futures Exchange, the September share price index contract was 72 points higher at 3,960.
In economic news on Thursday, the Australian Bureau of Statistics releases international merchandise imports data for June.
The Reserve Bank of Australia publishes its monthly bulletin.
The Australian Office of Financial Management will tender Treasury notes maturing October 23, 2009, and January 22, 2010.
In company news, Sino Gold releases quarterly results.
Olympia Resources Ltd and Territory Resources Ltd hold general meetings.
Household, Income and Labour Dynamics in Australia (HILDA) hosts a survey research conference in Melbourne.
The Queensland Coal & Energy conference concludes in Brisbane.
On Wednesday, resources and banking stocks drove the Australian share market to its highest close this financial year.
The benchmark S&P/ASX200 index closed up 57.4 points, or 1.48 per cent, at 3924.5 points, while the broader All Ordinaries index gained 58.7 points, or 1.52 per cent, to 3917.5 points.

NYMEX

Oil prices were lifted by a drop in US crude inventories that suggested stronger demand in the world’s largest energy consumer.
The market welcomed the US government’s weekly oil report and price gains accelerated in the second half of the session.
The Department of Energy said that American crude oil reserves sank more than expected, by 2.8 million barrels in the week ended July 10, as refineries stepped up production.
The data also showed that distillate inventories, including gasoline and diesel fuel, which had increased for months, rose less than expected.
New York’s main contract, light sweet crude for August delivery, leapt $US2.02 to close at $US61.54 a barrel.
In London, Brent North Sea crude for delivery in August jumped $US2.23 to settle at $US63.09.

COMEX

A government report showing a bigger-than-expected jump in wholesale inflation numbers in June helped support metals prices.
The increase was driven largely by a surge in energy prices last month, and renewed concerns about inflation. Investors often use gold as a hedge against inflation, and other precious metals sometimes benefit as well.
Some weakness in the US dollar also helped support prices for commodities.
Gold for August delivery gained $16.60 to $US939.40 an ounce on the New York Mercantile Exchange.
September silver rose 35.3 cents to $US13.208 an ounce, while July platinum gained $US17.30 to $US1,128.40 an ounce.
September copper futures rose 9.3 cents to $US2.392 a pound.

NEW YORK - US stocks struggled higher as a stronger-than-expected profit report from financial giant Goldman Sachs helped investors look past lacklustre economic data.
Market action came after Goldman Sachs posted a net profit of $US3.44 billion in the second quarter, topping market expectations and easing fears about a collapsing financial system.
The market also reacted to news that US retail sales rose for the second consecutive month in June, by 0.6 per cent, but with gasoline sales accounting for much of the increase due to higher prices.
Another report showed surging energy costs pushed up US wholesale prices by a sharp 1.8 per cent in June.
The rise in prices was steeper than expected, however, analysts said the big factor was energy costs, and they have since retreated, so the overall inflation picture was subdued.
The main indices drifted in and out of positive territory for most of the day within a narrow range.
The Dow Jones Industrial Average closed up 27.81 points, or 0.33 per cent, to 8,359.49.
The technology-heavy Nasdaq composite added 6.52 points, or 0.36 per cent, to 1,799.73 while the broad-market Standard & Poor’s 500 index gained 4.79 points, or 0.53 per cent, to a close of 905.84.

LONDON - Europe’s leading stock markets rose after strong US bank earnings and the release of economic data, but dealers said doubt crept in with investors already looking anxiously ahead for more indicators.
Financial stocks were higher on most markets.
London’s FTSE 100 index closed up 35.55 points, or 0.85 per cent, at 4,237.68 points.

FRANKFURT - The Dax rose 59.35 points, or 1.26 per cent, to 4,781.69 points.

PARIS - The CAC 40 index gained 29.79 points, or 0.98 per cent, to close at 3,081.87.

TOKYO - Asian markets staged a massive rebound following weeks of losses, boosted by Monday’s rally on Wall Street led by confidence in the key financial sector.
Tokyo snapped a nine-day losing streak, with the benchmark Nikkei-225 rising 211.48 points, or 2.34 per cent, to 9,261.81.

HONG KONG - Hong Kong recorded its best rise since June 10. The Hang Seng Index ended up 631.1 points, or 3.66 per cent, at 17,885.73.

WELLINGTON - New Zealand’s share market lifted sharply in early trade but then ran out of steam.
The benchmark NZX-50 index closed up 11.61 points, or 0.42 per cent, at 2,748.5.

SYDNEY - The Australian sharemarket is expected to open higher following another day of gains on Wall Street after a stronger than expected profit result from finance giant Goldman Sachs.
At 0730 AEST on the Sydney Futures Exchange, the September share price index contract was 35 points higher at 3,882.
In economic news on Wednesday, the Westpac-Melbourne Institute indices of economic activity for May are released.
The Australian Bureau of Statistics releases building activity data for the March quarter.
The Australian Office of Financial Management conducts a tender of $700 million June 2014 Commonwealth government bonds.
In company news, Primary Health Care Ltd, Lumacom Ltd and Total Staffing Solutions Ltd hold general meetings.
Minerals Corporation Ltd holds an extraordinary general meeting in Sydney.
Gloria Jean’s Coffee International founder Peter Irvine will address an Australia-Israel Chamber of Commerce young business forum in sydney.
New Zealand Deputy Prime Minister Bill English is in Sydney to speak at an Australian Business Economist function on New Zealand’s Road to Recovery.
Victorian Premier John Brumby will deliver a State Of The State speech to a Committee for Economic Development of Australia function.
The Queensland Coal & Energy conference begins in Brisbane.
On Tuesday, the Australian share market posted its biggest one-day percentage gain so far this calendar year.
The local bourse was led by stronger banking and mining sectors.
The benchmark S&P/ASX200 index rose 129.6 points, or 3.47 per cent, to 3,867.1, while the broader All Ordinaries index lifted 120.8 points, or 3.23 per cent, to 3,858.8 points.

NYMEX

Oil prices closed mixed as the latest data failed to generate confidence in an economic rebound in the United States, the world’s largest energy consumer.
The New York oil contract retraced Monday’s session, opening in positive territory and finishing in the red.
New York’s main contract, light sweet crude for delivery in August, fell 17 cents to finish at $US59.52 a barrel.
In London, Brent North Sea crude for delivery in August rose 17 cents to settle at $US60.86 a barrel.

COMEX

Gold prices rose after better than forecast US retail sales data, boosting demand for the precious metal as an alternative investment and a hedge against inflation.
Gold for August delivery gained 30 cents to settle at $US922.80 an ounce on the New York Mercantile Exchange.
Other precious metals also rose as a weaker US dollar helped demand. September silver was up seven cents to $US12.855 an ounce.
Among base metals, September copper futures rose 7.6 cents to $US2.299 a pound.

(Gold and oil are the August contracts on the NY Mercantile Exchange. Silver and Copper are the July contracts.)

NEW YORK - US stocks finished mostly lower on Friday with investors fretting over fears that recovery from the global recession remains distant.
Ahead of Friday’s opening, the US government said the US trade deficit had narrowed sharply in May to its lowest level in nearly a decade, led by a plunge in imported oil.
The deficit fell nearly ten per cent in May to a seasonally adjusted $US26 billion ($A33.18 billion), its lowest level since November 1999.
The news appeared moderately positive for the US economy but also reflected weak global trade flows.
Analysts said the report showed domestic spending remained weak and an economic recovery will not occur quickly.
The Dow Jones Industrial Average fell 36.65 points, or 0.45 per cent, to settle at 8,146.52, closing out a fourth consecutive weekly loss for blue chips.
The tech-heavy Nasdaq edged up 3.48 points, or 0.2 per cent, to 1,756.03 while the broad market Standard & Poor’s 500 index shed 3.55 points, or 0.4 per cent, to 879.13.

LONDON - European stock exchanges wilted, dragged down by a disappointing report on US consumer confidence and a fall in oil prices.
The London FTSE 100 index shed 31.49 points, or 0.76 per cent, to close at 4,127.17.

FRANKFURT - The Dax slipped 53.76 points, or 1.16 per cent, to 4,576.31.

PARIS - The CAC 40 fell 42.84 points, or 1.42 per cent, to finish at 2,983.1.

TOKYO - A stronger yen continued to weigh on Japanese exporters, while new wholesale price data stoked worries that renewed deflation could hinder a recovery in the world’s number two economy.
The benchmark Nikkei-225 index dropped 3.78 points, or 0.04 per cent, to 9,287.28.

HONG KONG - The Hang Seng Index ended down 82.17 points, or 0.46 per cent, at 17,708.42.

WELLINGTON - The New Zealand share market started the day slightly ahead and ended it slightly lower.
The benchmark NZSX-50 index closed down 3.399 points, or 0.124 per cent, at 2,738.282.

SYDNEY - The Australian sharemarket is likely to open relatively flat following small falls in overseas markets and largely unchanged commodities prices.
At 0720 AEST on the Sydney Futures Exchange, the September share price index contract was three points higher at 3,754.
In economic news on Monday, the Australian Bureau of Statistics releases lending finance data for May.
In equities, WHL Energy Ltd, Hot Rock Ltd, Mutiny Gold Ltd, Peninsula Minerals Ltd and Tianshan Goldfields Ltd hold general meetings.
Neptune Marine Services Ltd holds an extraordinary general meeting in Perth.
The Mannkal Economic Education Foundation hosts a half day conference in Perth on the free market system.
On Friday, the Australian share market closed in positive territory driven by gains in the materials sector on the back of stronger commodity prices.
The benchmark S&P/ASX200 index was up 30.8 points, or 0.82 per cent, at 3,794.1 points, while the broader All Ordinaries index gained 29.2 points, or 0.78 per cent, to 3,790.6 points.

NYMEX

Oil closed below the psychological barrier of $US60 a barrel in New York on Friday as the market focused on weak demand and risks of deflation amid a steep global downturn.
New York’s main contract, light sweet crude for delivery in August settled at $US59.89 a barrel, shedding 52 cents from its Thursday close.
In intraday, trade the futures contract sank to $US58.72, its lowest level since May 18 and nearly $US15 below last week’s peaks.
In London, Brent North Sea crude for August delivery dropped 58 cents to close at $US60.52 a barrel.

COMEX

Gold and other commodities were sold off as investors refrained from buying risky assets as they await more clarity on the economy from earnings reports.
Gold for August delivery slipped $US3.70 to settle at $US912.50 an ounce on the New York Mercantile Exchange.
July silver fell 29 cents to $12.645 an ounce, while July copper futures fell 2.6 cents to $2.2115 a pound.

MORNING MARKET REPORT
(Gold and oil are the August contracts on the NY Mercantile Exchange. Silver and Copper are the July contracts.)

NEW YORK - Investors are cautiously moving back into stocks after being reassured by better earnings from Alcoa Inc and a decline in claims for jobless benefits.
Stocks edged higher on Thursday after Alcoa reported a smaller-than-expected loss after trading closed on Wednesday, kicking off the second-quarter earnings season.
Investors were encouraged also by a report from the Labor Department showing that the number of initial jobless benefits claims fell last week to 565,000 - the lowest level since early January and better than the 605,000 analysts were expecting.
Some of the improvement was due to changes in the timing of auto industry layoffs and the holiday-shortened week, however.
In other economic data, the Commerce Department said wholesale inventories fell for a ninth straight month in May as businesses continued to trim stockpiles. Inventories dipped 0.8 percent in May, slightly smaller than the 1 percent decline economists had expected.
The better news on jobless claims and inventories was tempered by generally weaker sales at retailers in June, which held back the market’s gains.
The Dow Jones Industrial Average had edged up 4.76 points, 0.06 per cent, to 8,183.17 at settlement.
The tech-heavy Nasdaq composite gained 5.38 points, 0.31 per cent, to 1,752.55 and the broad-market Standard & Poor’s 500 index climbed 3.12 points, or 0.35 per cent, to 882.68.

LONDON - European stock markets halted a three-day losing streak and finished in positive territory on better-than-expected US employment data.
In London, the FTSE 100 index gained 18.43 points, or 0.45 per cent, to close at 4,158.66.

FRANKFURT - The Dax added 57.42 points, or 1.26 per cent, to close at 4,630.07.

PARIS - The CAC 40 rose 16.23 points, or 0.54 per cent, to reach 3,025.94.

TOKYO - Japanese shares fell for a seventh straight session, closing at their lowest level in almost seven weeks as worries grew about the economic outlook and the strength of the yen.
The benchmark Nikkei-225 index dropped 129.69 points, or 1.38 per cent, to 9,291.06, the weakest since May 22.

HONG KONG - The benchmark Hang Seng Index ended up 69.52 points, or 0.39 per cent, at 17,790.59.

WELLINGTON - The benchmark NZSX-50 index closed down 8.92 points, or 0.32 per cent, at 2,741.68.

SYDNEY - The Australian sharemarket is likely to open higher following mild gains on Wall Street overnight and higher commodity prices.
At 0710 AEST on the Sydney Futures Exchange, the September share price index contract was 13 points higher at 3,748.
In economic news, the Australian Office of Financial Management is due to conduct a tender for $700 million in June 2011 bonds.
In equities, Allco Finance Group Ltd will hold a creditors meeting in Sydney.
The Australian share market closed flat on Thursday for the second consecutive day, as better than expected employment figures helped stocks rebound from early losses.
The benchmark S&P/ASX200 index was 4.6 points, or 0.12 per cent, lower at 3763.3, and the broader All Ordinaries index also shed 4.6 points, or 0.12 per cent, to 3761.4 points.

NYMEX

Oil prices eked out small gains after falling below $US60 in New York for the first time since late May as the market pondered sluggish energy demand in major economies.
New York’s main contract, light sweet crude for August delivery, rose 27 cents to close at $US60.41 a barrel.
In London, Brent North Sea crude oil for delivery in August gained 67 cents to settle at $US61.10 a barrel.

COMEX

August gold added $US6.90, or 0.76 per cent, to settle at $US916.20 an ounce. July silver gained 8.3 cents, 0.65 per cent, to $US12.935 an ounce, and July copper rose 7.85 cents, or 3.64 per cent, to $US2.2375 a pound.