US Market remains subdued

20 Aug 2008 | 09:05




US Market remains subdued

Stocks at Wall Street ended lower on Tuesday, 19 August, 2008. Stocks
continued to be hurt due to the credit crisis situation in the
financial sector, drop in quarterly earnings from a couple of retailers
and a batch of economic reports that were against investor sentiments.
Crude prices rising by more than 2% today also took a toll on stocks at
Wall Street. Eight of the ten sectors ended in the red today.

Though market opened modestly lower in the morning, the inflation data
followed by the bleak housing report dragged market further lower. The
Dow Jones industrial Average ended the day with a loss of 130.84 points
at 11,348.55. The Nasdaq Composite Index, finished lower by 32.62
points at 2,384.66. S&P 500 finished lower by 11.91 points at
1,266.69.

Twenty six of thirty Dow components ended in the red
led by AIG, Bank of America and American Express. AIG dropped more than
6% on reports that the company might have to raise more capital.

The Labor Department reported today that U.S. producer prices rose by a
bigger-than-expected 1.2% in July. It was driven higher by prices for
energy, food and other products. Market was looking for an increase of
0.3% in July. Excluding food and energy, producer prices rose 0.7% in
the month, which was also higher than expected. In July, energy prices
rose 3.1% and food prices climbed by 0.3%.

The report hit the
wires just before Wall Street opened in the morning. It fuelled a
sell-off among stocks and the Dow Jones Industrial Average slipped by
almost 100 points within an hour after market opened.

Also, the
Commerce Department reported today that the number of new homes
starting construction in July has sharply dropped. The number of new
single-family permits dropped to the lowest level in 26 years. Builders
are cutting back their production of new homes and trying to work off
unsold inventory. Rising foreclosures on existing homes are
complicating the builders' efforts to bring supply back down to meet
sluggish demand. Housing starts fell 11% to a seasonally adjusted
annual rate of 965,000 in July, 2008.It marked the lowest level for
housing starts in 17 years. June's starts were revised higher to a
1.084 million annual pace. Housing starts are down 29.6% in the past
year.

Among earning news, Home Depot stock slipped almost 4%
after the company reported drop in second quarter profit. Target too
reported y-o-y drop in quarterly earnings but still met investor
expectations.

Barring HDFC Bank and ICICI Bank, all the Indian
ADRs ended in the red today. Satyam was the biggest loser shedding
3.2%. HDFC Bank and ICICI Bank marginally gained 0.1% and 0.01%
respectively.

At the crude market on Tuesday, crude oil rose
more than $1 a barrel as a weakening dollar prompted investors to
purchase commodities as an inflation hedge. Crude oil for September
delivery rose $1.66 (1.5%) to settle at $114.53 a barrel.

At
the currency markets on Tuesday, the dollar index, which tracks the
greenback against a trade-weighted basket of six major currencies, was
at 76.74, down from 77.070. It climbed as high as 77.41 earlier. The
dollar weakened in the face of weak economic data.

Trading
volumes remained light, with 1 billion shares exchanging hands on the
New York Stock Exchange and 712 million shares trading on the Nasdaq
stock market.

For tomorrow, the day is quite light in terms of
economic reports and earning reports. The weekly crude inventory report
from the Energy Department is the main and only economic report
expected for the day.
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US Market registers good gains

21 Aug 2008 | 09:31




US Market registers good gains

Stocks at Wall Street ended modestly higher on Wednesday, 20 August,
2008. Financial sector registered modest gains despite Freddie Mac and
Fannie Mae slipping by another 20%. A better than expected earning
report by H-P and modest rise in crude prices helped stocks register
good gains after quite a long time. Eight of the ten sectors ended in
the red today.

The Dow Jones industrial Average ended the day
with a gain of 68.88 points at 11,417.43. The Nasdaq Composite Index,
finished higher by 4.72 points at 2,389.08. S&P 500 finished higher
by 7.85 points at 1,274.54.

Seventeen of thirty Dow components ended in the green today led by AIG, Bank of America, Citigroup and American Express.

Among earning news, H-P, a blue-chip stock, rose 5.6% after the company
posted an 11% rise in profit and issued an earnings outlook that topped
analyst estimates. This gave the market a strong start but the indices
soon slipped into the red as crude prices rose before the inventory
report was out. But then, crude prices slipped again once the inventory
data hit the wires and the indices popped up in the green again.

The financials sector continued to be under pressure even today after
Fannie Mae and Freddie Mac reports that they will need to be bailed out
by the federal government. But still the financial sector managed to
dodge these reports by ending in the green today.

The Wall
Street Journal reported today that Freddie executives will meet with
Treasury officials, saying the two sides may explore whether the
Treasury could clarify its intentions in a way that would reassure
investors.

Indian ADRs ended mixed today. HDFC Bank and ICICI Bank were the topmost gainers soaring 3.7% and 3.9% respectively.

Crude oil prices were quite volatile and rose today at Nymex. Prices
rose higher earlier during the day. But they gave up most of their
gains once the weekly inventory report by the Energy Department hit the
wires. At the end, prices closed modestly higher. Crude-oil futures for
light sweet crude for September delivery closed at $114.98/barrel
(higher by $0.45 or 0.4%) on the New York Mercantile Exchange.

As per the weekly report issued by the Energy Information
Administration (EIA) wing of the Energy Department, crude supplies rose
by 9.4 million barrels to 305.9 million for the week ended 15 August,
2008. Market was expecting a build up of just 1 million barrels. It was
the highest weekly buildup of crude in almost seven years. Refinery
utilization was at 85.7% compared with 85.9% of capacity a week earlier.

At the currency markets on Wednesday, the dollar gained as much as 0.7%
against the euro after losing almost that amount in the previous two
days. Worries about growth outside the U.S. allowed the dollar to
rebound on Wednesday, sending the euro back toward six-month lows
against the greenback and lifting the U.S. unit against most major
counterparts. The dollar index, which measures the greenback against a
trade-weighted basket of currencies, rose to 76.92 from 76.746 in the
previous day.

Trading volumes remained light with 1 billion
shares changing hands on the New York Stock Exchange and 710 million
trading on the Nasdaq stock market. Gaining issues topped decliners 16
to 15 on the NYSE, while decliners topped gainers 14 to 13 on the
Nasdaq.

For tomorrow, other than a couple of earning reports,
weekly jobless claims are due before Thursday's opening bell. July
leading economic indicators and the August Philadelphia Fed Index are
both due later in the morning.
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US Market tries to make a comeback

25 Aug 2008 | 08:53




US Market tries to make a comeback

Freddie Mac and Fannie Mae remained the headlines during the course of
the week that ended on Friday, 22 August, 2008. The battered financial
sector, negative data on the housing front, volatile crude prices and a
few earning reports dominated the headlines during the week. Dollar
remained relatively strong though lost 1.2% to the euro during the
course of the week. Stocks at Wall Street registered losses on all the
days of the week barring the last day, Friday, 22 August. Volume of
trading remained relatively light during the course of the week.

The Dow Jones Industrial Average lost 31.84 points for the week to end
at 11,628.06. Tech - heavy Nasdaq lost 37.81 points at 2,414.71.
S&P 500 lost 6 points to end at 1,292.2.

The financials
sector continued to be under pressure even today after Fannie Mae and
Freddie Mac reports that they will need to be bailed out by the federal
government sooner than was previously thought. This continued to create
turmoil in the finance sector off and on.

The sector also came
under pressure after Bank of America was named in The Wall Street
Journal as being the focus of increased probes from the New York
Attorney General regarding auction rate securities. S&P Financial
sector dropped 2.4% and 6.5%, respectively, in the first two days of
trading.

In the US stock market on Friday, 22 August, despite
low volumes, US stocks rallied. The rally was broad based and there
were a couple of catalysts for the rally. Comments from famous investor
Warren Buffet and Fed Chairman Ben Bernanke gave US stocks a good
reason to rally on Friday. The dollar also strengthened and financial
sector also climbed up on reports that Korea Development Bank has shown
interest in acquiring Lehman Brothers.

The Dow Jones
industrial Average ended the day with a gain of 197.85 points at
11,628.06. The Nasdaq Composite Index, finished higher by 34.3 points
at 2,414.71. S&P 500 finished higher by 14.48 points at 1,292.2.

Famed investor Warren Buffett stated in an interview that Fannie Mae
and Freddie Macare looking for private investment and also offered
positive comments on the attractive values currently offered by stocks
and said that he doesn't have any bets against the dollar.

Elsewhere, Fed Chairman Ben Bernanke said on Friday that the declines
in commodity prices and the stability of the dollar are encouraging as
their trends are likely to slow inflation. He also stated that
inflation will be further helped as the U.S. economy falls short of its
growth potential for a time. Still, the inflation outlook is highly
uncertain.

The economic data seen during the week were mixed,
but mostly negative in nature. The Commerce Department reported that
the number of new homes starting construction in July has sharply
dropped. The number of new single-family permits dropped to the lowest
level in 26 years. Builders are cutting back their production of new
homes and trying to work off unsold inventory. Rising foreclosures on
existing homes are complicating the builders' efforts to bring supply
back down to meet sluggish demand. Housing starts fell 11% to a
seasonally adjusted annual rate of 965,000 in July, 2008.It marked the
lowest level for housing starts in 17 years. June's starts were revised
higher to a 1.084 million annual pace. Housing starts are down 29.6% in
the past year.

The Labor Department reported that U.S.
producer prices rose by a bigger-than-expected 1.2% in July. It was
driven higher by prices for energy, food and other products. Market was
looking for an increase of 0.3% in July. Excluding food and energy,
producer prices rose 0.7% in the month, which was also higher than
expected. In July, energy prices rose 3.1% and food prices climbed by
0.3%.

Also, initial jobless claims for the week ending 16 August
totaled 432,000, which was below the 440,000 expected. Claims fell
13,000 relative to the prior week's downwardly revised total. Still,
the 4-week moving average for jobless claims advanced to 445,750 from
438,500.

In a separate report, the Conference Board in USA
reported that the leading economic indicators for July dipped 0.7%. The
leading index is designed to forecast turning points in the economy.
Market was looking for a 0.2% decline. The report pointed to slow
growth the rest of the year and possibly an economy grinding to a halt.

Among earning report for the week, Dow component
Hewlett-Packard turned in another solid earnings report and provided a
reassuring outlook. Meanwhile, several retailers, including Home Depot,
Target and Gap reported relatively good results.

At the crude
market at US on Friday, crude-oil futures dropped more than 5%,
reversing the rally in the previous session, as a stronger U.S. dollar
and ongoing concerns about a slowdown in demand pressured crude prices.
Crude prices for October delivery closed at $114.59 (lower by $6.6 or
5.4%). For the week it managed to end higher by a little 0.6%.

Executive Summary

For the week, indices registered little losses. In percentage terms,
Dow and Nasdaq lost 0.3% and 1.5% respectively. S&P 500 lost 0.5%.
Negative economic reports and Freddie Mac and Fannie Mae dominated the
headlines during the week which witnessed relatively less volumes in
trading. Indices registered gains only on the last day of the week.

For the year, Dow, Nasdaq and S&P 500 are down by 12.3%, 12% and 9% respectively.

Developments surrounding the Government sponsored enterprises (GSEs)
will be the thing to watch in the coming week, along with oil prices
and some key economic reports for existing home sales, new home sales,
Q2 GDP (revised), and personal income and spending.

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US Market drowns in losses

26 Aug 2008 | 08:55




US Market drowns in losses

In the US stock market on Monday, 25 August, US stocks were back to
their loss making mode. Trading volume was substantially light showing
no conviction among buyers. Dow registered its largest drop in almost a
month. Overall it was a slow news day, although there were several
negative headlines out of the financial sector. All the ten sectors
ended in the red today led by the financial sector.

Market
opened the day in the red. It lingered in the same for the entire day.
Even the better than expected housing report failed to send any
positive vibes within the market. The Dow Jones industrial Average
ended the day with a loss of 241.81 points at 11,386.25. The Nasdaq
Composite Index, finished lower by 49.12 points at 2,365.59. S&P
500 finished lower by 25.36 points at 1,266.84.

All the thirty
Dow components ended in the red today. AIG led the team being down 5.5%
after Credit Suisse analysts lowered their third-quarter profit
estimate and target price on the insurance giant.

The
financial sector continued to be in the doldrums even today. After last
week?s news, it was reported today that South Korean regulators have
told the Korea Development Bank to take a cautious approach before
making an acquisition of an overseas bank after the company expressed
interest in Lehman Brothers.

Among economic news hitting the
wires at US today, the National Association of Realtors reported today
at USA that July existing home sales (U.S. single-family homes and
condominiums) rose 3.1% month-over-month to a seasonally adjusted 5
million annual rate. Sales of single-family homes rose 3.1% to a 4.39
million annual pace. Condo sales rose 3.4% to 610,000 annualized. Total
sales follow the 2.8% decline in June. Market expected July sales to
increase 1.1% to 4.91 million.

The report also stated that
existing home sales are down 13.2% year-over-year, and have an
inventory supply of 11.2 months, compared to the 2007 average inventory
supply of 8.9 months. The median sales price fell 1.3% month-over-month
to $212,400, and is down 7.1% compared to last year.

July's
inventory of unsold homes on the market rose 3.9% to a record 4.67
million units, representing a supply of 11.2 months based on the
current sales pace. The inventory figures are not seasonally adjusted.
A sharp increase in condo inventory accounted for the gain in July.
Inventories of condos rose to a record 769,000 units.

Meanwhile, the IMF cut its forecast for 2008 and 2009 world economic
growth by 20 basis points to 3.9% and 3.7%, respectively, primarily due
to a worsening outlook for the eurozone.

All the Indian ADRs
ended in the red today. VSNL and Infosys Technologies were were the
topmost losers shedding 5% and 4% respectively.

Crude-oil
futures for light sweet crude for October delivery closed at
$115.11/barrel (higher by $0.52 or 0.5%) on the New York Mercantile
Exchange. Prices rose to a high of $116.08 and fell to an intra day low
of $113.68 during the day. Crude oil rose after Tropical Storm Gustav
formed in the Caribbean Sea today; raising concern oil fields in the
Gulf of Mexico may be struck.

Trade volume was particularly
light. On the New York Stock Exchange, volume topped 865 million, and
declining issues overtook those advancing more than 3 to 1. On the
Nasdaq, nearly 593 million shares exchanged hands, and advancers topped
decliners, also by a more-than-3-to-1 ratio.

For tomorrow, other
than a few earning reports, July new home sales and August consumer
confidence data are due tomorrow just after opening bell rings. Other
than that, the minutes from the latest Federal Open Market Committee
are due in the afternoon.
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Mixed finish for US Market

27 Aug 2008 | 09:18




Mixed finish for US Market

In the US stock market on Tuesday, 26 August, US stocks ended mixed
with the technology sector playing the spoilsport. Energy sector tried
providing some leadership as crude prices increased. Better than
expected economic reports also had some positive effect on overall
market sentiment. Market opened in the red in the morning. But trading
volume was the lowest for the year till date. Nevertheless, Dow and
S&P 500 managed to register marginal gains. Seven of the ten
sectors registered gains.

The Dow Jones industrial Average
ended the day with a gain of 26.6 points at 11,412.87. The Nasdaq
Composite Index, finished lower by 3.6 points at 2,361.9. S&P 500
finished higher by 4.6 points at 1,274.51.

Eighteen out of
thirty Dow stocks ended in the green today. AIG and other energy stocks
led the Dow winners today. The day was quite heavy on economic reports,
couple of which was better than expected.

The Federal Open
Market Committee (FOMC) minutes for the 5 August, 2008 meeting were
released today. On that day, the FOMC had kept the fed funds rate
unchanged at 2%, acknowledging both downside risk to growth and
increased inflation risks. As per today?s meeting, Fed officials are
concerned that inflation won't ease until 2009, but most participants
anticipate moderation in the coming quarters. In general, Fed officials
expect the next policy move will be to raise rates.

Among the
major economic reports hitting the wires today, the Conference Board in
USA reported today that July consumer confidence spiked 9.6% to 56.9
from the previous month. This was much ahead of the expected 2.1%
increase to 53. U.S. consumer confidence registered consecutive month
of gains in August. But the confidence level remained relatively low
amid persistent concerns about jobs. As per the report, the percentage
of consumers saying jobs are hard to get rose to 32% in August from
30.2% in July. Meanwhile, the percentage of consumers expecting
business conditions to worsen over the next six months fell to 25.8%
from 32.4%.

The U.S. Department of Commerce reported today
that July new home sales rose 2.4% to a seasonally adjusted annualized
rate of 515,000 from a downwardly revised June reading of 503,000
against an expected reading reading of 525,000. New home sales were
down 35% from the prior year, but have shown some stabilization in
recent months.

The report also stated that new-home sales are
down 35.3% compared with a year ago. The months' supply of homes on the
market fell to 10.1 months in July from 10.7 months in June. Median
sales prices fell 6.3% in the past year to $230,700.

In a
separate report from the Case-Shiller, it showed that U.S. home prices
fell at a record rate in June. The Case-Shiller index of 20 major
metropolitan areas for the month fell by 15.9% in June 2007. June's
drop represents a new record decline. The report also showed that
annual growth rate slowed in 11 of 20 cities in June.

The Indian
ADRs ended mixed today. Tata Motors and HDFC Bank registered the
largest gains with their ADRs gaining 3.4% and 3.2% respectively.

Trading volume was light, topping 856 million on the New York Stock
Exchange, where advancing stocks outran those declining about 9 to 5.
On the Nasdaq, 591 million shares were exchanged, while advancers
topped decliners 5 to 4.

At the crude market on Tuesday, crude
oil rose more than $1 a barrel on forecasts showing that Hurricane
Gustav may enter the Gulf of Mexico, home to more than a fifth of U.S.
oil production. Crude oil for October delivery rose $1.16 (1%) to
settle at $116.27 a barrel

At the currency markets on Tuesday,
the dollar index, which tracks the value of the dollar against a basket
of other major currencies, climbed 0.6%. The index earlier traded up 1%
on positive economic news at Wall Street.

For tomorrow, the economic reports expected are July Durable Goods Orders and the weekly oil inventory report.
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Asian Markets Closed Mixed

27 Aug 2008 | 16:27




Asian Markets Closed Mixed


The
stock markets across the Asian region closed mixed, as Wall Street
provided a mixed lead after negative investor sentiment due to higher
oil prices offset positive sentiment generated by better-than-expected
reading on consumer confidence.

In late Asian trading, oil
prices edged above the $117 a barrel mark, rising for the third
straight day, on fears that Tropical Storm Gustav could strengthen to
hurricane levels. Energy stocks gained on higher oil prices, but
exporters fell as the dollar eased against major Asian currencies. By
4:53 a.m. ET, crude oil futures were up 77 cents at $117.04 a barrel
after the contract finished $1.16 higher at $116.27 a barrel on Tuesday
in U.S. trading.

On the currency front, the U.S, dollar eased to
lower 109-yen levels in late Tokyo deals, from mid 109-yen levels in
early trade and upper 109-yen levels late Tuesday.

The South
Korean won strengthened against the greenback on suspected dollar
selling by authorities to lift the local unit. The won finished at
1,084.1 a dollar, up from Tuesday's close of 1,089.4.

The
Australian dollar closed higher after dropping to an eleven-month low
during offshore trading. The Aussie finished the local session at
US$0.8580-0.8582, up from Tuesday's close of US$0.8559-0.8563.

The
New Zealand dollar rose after the release of business confidence data.
The kiwi finished the session at US$0.7025, up from US$0.6976 in early
trade and Tuesday's late quotes of US$0.6970.

Coming back in the
equities the Japanese market closed lower, extending Tuesday's losses.
Investors remained cautious ahead of a series of key economic data
scheduled for release on Thursday and Friday in the U.S. and Japan. The
market traded weak in the morning session, but recovered some ground in
the afternoon session. The benchmark Nikkei 225 index closed down 0.2%
at 12,752.96 and the broader Topix index slipped 0.5% to finish at
1,223.69.

On the economic front, traders had little economic
data to digest on Wednesday. In the U.S., traders await durable goods
orders and GDP numbers on Thursday and Friday respectively, while Japan
will announce its July consumer price index, jobless rate, household
spending and other data on Friday.

The Chinese market closed
lower for a second day, as investors remained cautious amid concerns
about government action to support the markets. The benchmark Shanghai
Composite Index closed down 0.34% at 2,342.15 after falling to as low
as 2,310.46. In Shenzhen, the All Share index plunged by 0.56% to
642.82.

The Hong Kong market closed sharply higher, extending
gains in the afternoon as heavyweight China Mobile surged after
reporting better-than-expected first-half earnings. The Hang Seng China
Enterprises tracked Shanghai stocks zoomed up by 3.28% at 11,780.91
while the benchmark Hang Seng index closed up 1.94% at the day's high
of 21,464.72.

The Australian stock market closed slightly higher
after posting marginal losses on Tuesday. Energy stocks gained on
higher oil prices, but financial stocks were weak on credit crunch
concerns. The benchmark S&P/ASX 200 index closed up 0.07% at
5,011.2 after losing 0.2%. The broader All Ordinaries index lost 5.5
points or 0.11% to finish 5,087.8.

On the economic front, the
Australian Bureau of Statistics said that the value of total
construction work done in Australia fell 2.6% in volume terms in the
second quarter of 2008. The total construction work done for the
quarter was valued at A$30.137 billion, compared to an upwardly revised
A$30.947 billion in the March quarter. On a seasonally adjusted basis,
total value of building work done in the June quarter rose to A$16.797
billion from an upwardly revised A$16.756 billion in the March quarter.

The
New Zealand market closed mixed after trading in positive territory in
the morning session. The benchmark NZX 50 index closed down 0.07% at
3,318.52 after losing 0.2%, while the broader NZX All Capital Index
rose 0.02% to finish at 3,359.58.

The National Bank of New
Zealand's latest survey showed that business confidence in New Zealand
improved in August, with a net 20.5% of those surveyed expecting worse
times over the year ahead, an improvement from the net 43.2% expecting
worse times in last month's survey. A net 4.7% expect conditions for
their own business to improve in the coming year, while in the survey
last month a net 8.2% expected conditions for their own business to
worsen over the coming year.

The South Korean market finished
marginally higher, as bargain hunting resumed after the key index
posted losses in opening trade and yesterday. The benchmark Kospi
closed up 0.25% to end at 1,493.92. The Kospi, which tumbled down to
the 1,460 levels in the morning due the won's steep devaluation,
rebounded on bargain hunting.

In India the market which was
ranged throughout the day cracked in late trade spooked by reports that
the Reserve Bank of India may hike cash reserve ratio tomorrow to
arrest runaway inflation which is at 16-year high. Index heavyweight
Reliance Industries (RIL) and bank stocks weighed on the indices.

Inflation
as measure by wholesale price index is speculated to rise further to a
fresh 16-year high in the week ended 16 August 2008. Global credit
rating agency Moody's expects the Reserve Bank of India to further
tighten monetary policy to contain rising prices

The BSE
30-share Sensex was down 181.03 points or 1.25% to 14,301.13, as per
provisional closing. It opened 80.88 higher at 14,563.10, which is also
its high so far in the day. Sensex hit a low of 14,261.69 in late
trade. At the day?s low, the Sensex lost 220.53 points. The S&P CNX
Nifty slipped 41 points or 0.95% to 4,296.45 as per provisional closing

Elsewhere,
Taiwan's Taiex closed up 1.67% at 7,080.97; Singapore's Strait Times
closed down 0.1% at 2,705.09; Malaysia's KLCI closed down 0.3% at
1,067.65; Indonesia's Jakarta Composite index closed up 1.12% at
2,131.06.

In the other part of the world, European shares
weakened in early trading, as an up tick in oil prices pressured stocks
sensitive to consumer spending such as automaker Daimler.

In the
opening trade, the U.K. FTSE 100 index lost 0.2% to 5,459.60, the
German DAX 30 index dropped 0.5% to 6,306.95 and the French CAC-40
index lost 0.6% to 4,341.57. At 10.37 GMT all this national indices
continued to slump further. U.K. FTSE 100 index fell further at 0.3% to
5,454.40. The German DAX 30 index fell 1.21% to 6,263.73, while the
French CAC-40 index decreased by 1.21% to 4,315.67.

Looking
ahead the day is schedule to release Inflation data from Germany, which
will be followed by durable good orders details from U.S. In the later
evening we will see to the weekly crude oil stock from US.

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Modest gains at US Market

28 Aug 2008 | 09:09




Modest gains at US Market

Strong economic data took US stocks higher today, Wednesday, 27 August,
2008 and all the three indices posted modest gains. Investors found a
reason for economic hope in a July rise in orders for U.S. durable
goods. Crude prices spiked for the third straight day as hurricane
Gustav continued to rattle New Mexico. Trading volume continued to be
substantially light showing no conviction among buyers. Nine of the ten
sectors ended in the green, healthcare being the sole laggard.

The Dow Jones industrial Average ended the day with a gain of 89.6
points at 11,502.51 after being up by almost 132 points at one point.
The Nasdaq Composite Index, finished higher by 20.4 points at 2,382.4.
S&P 500 finished higher by 10.1 points at 1,281.66. Twenty-five out
of thirty Dow stocks ended in the green. Twenty-five out of thirty Dow
stocks ended in the green today.

The Commerce Department at
USA reported today that new orders for U.S. made durable goods (items
designed to last three years or more) surged in July, rising 1.3%. New
orders are very sensitive to economic expectations and serve as useful
leading indicators of growth. Strong transportation equipment demand
boosted the result. Excluding transportation goods, July's new orders
rose 0.7%.

Orders for core capital-equipment goods, considered
the best monthly gauge of business investment, rose 2.6% in July,
following a 1.3% gain in June. Core capital equipment orders exclude
aircraft and non-defense goods. Meanwhile, shipments of these goods,
which are factored directly into the government's calculations of gross
domestic product rose 0.6% in July, following a 0.4% gain in the prior
month.

In a speech today morning at Georgia State University's
business school, Federal Reserve Bank of Atlanta President Dennis
Lockhart predicted inflation would ease in coming months, calling
recent price hikes more likely to be transitory than persistent.

Indian ADRs ended mixed today. Sify was the largest gainer soaring by 18%.

At the crude market on Wednesday, crude-oil climbed as much as 2.9% to
$119.63 a barrel. It was reported today that tropical Storm Gustav will
strengthen as it enters the Gulf of Mexico and might become the
strongest storm since 2005, when hurricanes Katrina and Rita shut
refineries. Finally, crude oil for October delivery increased $1.88
(1.6%) to settle at $118.15 a barrel.

The Energy Department
reported today that crude supplies fell by 100,000 barrels to 305.8
million for the week ended 23 August. Motor gasoline supplies also
fell, down by 1.2 million barrels in the latest week to 195.4 million
barrels. They've fallen a total of 21.7 million barrels in the past
five weeks. As for distillates, inventories remained unchanged for the
week at 132.1 million barrels.

At the currency markets on
Wednesday, the dollar traded lower against the euro. A further spike in
oil prices amid worries over the potential impact of Tropical Storm
Gustav on the Gulf of Mexico triggered profit-taking on the U.S.
dollar. However, the dollar found some ground after the Commerce
Department reported orders for U.S.-made durable goods surged in July.
The dollar index, which tracks the value of the greenback against other
major currencies, slid 0.1%.

Volume on the New York Stock
Exchanged came to a paltry 820.6 million shares, and advancing stocks
outpaced those declining more than 3 to 1. Trade was also light on the
Nasdaq, where 610.5 million issues were exchanged and advancers topped
decliners almost 2 to 1.

For tomorrow, the preliminary GDP
report for the second quarter is scheduled for release before market
opens. The weekly jobless claims report is due simultaneously.

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Asian Market Swing Between Gains And Losses

28 Aug 2008 | 16:42




Asian Market Swing Between Gains And Losses


The
stock markets across the Asian region closed mixed in seesaw trading
after Wall Street finished firm overnight on a rebound in financial
stocks and better-than-expected durable goods orders. The U.S. stocks
closed higher yesterday as unexpectedly strong data on durable goods
orders eased concerns about the growth of the U.S. economy, while
mortgage-finance giants Fannie Mae and Freddie Mac led a rally in the
financial sector. The Dow closed up 0.8% at 11,502, the Nasdaq advanced
0.9% to end at 2,382 and the broader S&P 500 climbed 0.8% to finish
at 1,281.

Crude oil futures continued to rise for a fourth day
on fears that Tropical Storm Gustav could enter the Gulf of Mexico as a
powerful hurricane and disrupt oil and natural gas production. Light,
sweet crude for October delivery rose by $1.88 to settle at $118.15 a
barrel on the New York Mercantile Exchange. By 5:23 a.m. ET, crude oil
was quoted at $118.86 a barrel, up 71 cents, after the contract for
October settlement rose by $1.88 to settle at $118.15 a barrel.

On
Currency front the U.S. dollar finished weaker against major Asian
currencies. The U.S. dollar fell to lower 109-yen levels in late Tokyo
deals from mid 109-yen levels in early trade, but was little changed
compared to the levels late Wednesday in Tokyo.

The greenback closed weaker at 1,081.8 South Korean won, down from 1,084.1 won late Wednesday.

The
Australian dollar rose to its highest in three days, pulling away from
recent 11-month lows, on the back of strong second-quarter investment
data. Higher gold prices and a weaker U.S. dollar also supported the
Aussie. In late trade, the dollar was quoted at US$0.8679-0.8682, up
from US$0.8593-0.8595 late Wednesday.

The New Zealand dollar
closed stronger against the U.S. dollar. The kiwi gained after the U.S.
dollar slipped from its recent highs and following a recovery in
business confidence reported by the National Bank of New Zealand on
Wednesday. The local unit finished the session at US$0.7056 compared to
US$0.7025 late Wednesday.

The Japanese stock market closed mixed
on Thursday after posting gains for the previous two trading sessions.
The market started off higher, tracking Wall Street's gains overnight,
but Nikkei index moved into negative territory by mid-morning as
investors turned cautious ahead of the release of key local economic
data on Friday and U.S. GDP data slated for release later Today. The
Nikkei index moved back into positive terrain going into close of the
trading session.

The benchmark Nikkei 225 index closed up 0.12% at 12,768.25 and the broader Topix Index lost 0.3% to finish at 1,219.53.

On
the economic front, Japan's Finance Ministry said shortly before the
market opened that foreign residents sold a net 214.5 billion yen worth
of Japanese stocks for the week ended August 23. Foreigners were net
sellers for the fourth time in five weeks. Meanwhile, foreigners were
net purchasers of Japan bonds and notes for the week, as they bought a
net 557.9 billion yen in Japan bonds and notes during the period.

Chinese
market closed higher Thursday, led by financial stocks, ending a
two-day losing streak. Property stocks fell after the central bank
called on commercial banks to tighten lending to property developers.
The benchmark Shanghai Composite Index closed up 0.34% at 2,350.14. In
Shenzhen, the All Share index plunged by 0.08% to 642.31.

The
Hang Seng China Enterprises tracked Shanghai stocks broke its three
days winning streak losing by 2.40% at 11,497.68 while the benchmark
Hang Seng index closed down 2.29% at 20,972.29.

The Australian
stock market closed higher, extending gains for a second consecutive
trading session. The market opened higher, and finished near day's
highs as resources gained on strong commodity prices.

The
benchmark S&P/ASX 200 index closed up 1.1% at 5,066.5 and the
broader All Ordinaries index advanced 1.1% to end at 5,143.3.

On
the economic front, the Australian Bureau of Statistics said that new
private sector capital expenditures on buildings and equipment in
Australia increased 5.7% in the second quarter of 2008 over the
previous quarter. Private capital expenditure totaled A$22.59 billion
for the quarter, up from A$21.37 billion in the first quarter.

Meanwhile,
the leading index for Australia declined 0.5% and the coincident index
remained unchanged in June, the Conference Board said on Thursday,
after a 0.1% decrease in May. The leading index declined for the fifth
month in June, while the coincident index was unchanged for the second
straight month.

The New Zealand stock market closed higher after
a volatile trading session. The market opened slightly higher, boosted
by overnight gains on Wall Street, but lost ground as crude oil
continued to rise for a fourth day. However, the major averages staged
a recovery in the afternoon session and moved into positive terrain.

The
benchmark NZX 50 index closed up 0.19% at 3,324.80, ending a two-day
losing streak. Meanwhile, the NZX All Capital Index rose 0.31% to
finish at 3,369.86, extending gains for a second trading session.

On
the economic front, the Reserve Bank of New Zealand reported that M3,
the broadest measure of monetary aggregate, increased at a faster pace
of 7.6% year-on-year in July compared to 7.4% in June. However, money
supply rose less than the 9.4% growth reported in the prior year. Money
supply amounted to NZ$203.66 billion in July.

The South Korean
market fell, led by technology stocks, after finishing higher on
Wednesday. After opening on a firm note, the market lost ground on the
back of rising crude oil prices. The Kospi closed down 1.32% at
1,474.15, a 16-month closing low. The Kospi has now fallen 22% from the
year's mid-May closing high of 1,888.88.

On the economic front,
the Bank of Korea said in a report that South Korea's manufacturing
sentiment index for September rose to 79 from 74 in August. The
sentiment index improved for the first time in September after
recording decreases in past three months.

In India, intense
selling in index heavyweight Reliance Industries and in bank stocks
triggered a sell-off in late trade. The BSE 30-share Sensex lost 219.81
points as per provisional closing. The barometer index hit a low
slightly above the psychological 14,000 level before cutting some of
the steep losses. Volatility was high in second half of the trading
session ahead of expiry of August 2008 derivatives contracts. On the
economic front the government will release the inflation data after
market hours today, 28 August 2008. India's inflation based on the
wholesale price index is forecast to have risen to a fresh 16-year high
for the year through 16 August 2008

The BSE 30-share Sensex lost
219.81 points or 1.54% to 14,076.98, as per provisional closing. At the
day?s low of 14,002.43 struck in late trade, the Sensex lost 294.36
points. Sensex gained 50.40 points at day?s high of 14,347.19 hit in
early trade. The S&P CNX Nifty slipped 74.30 points or 1.66% to
4,221 as per provisional closing.

In Philippine the central bank
raised its interest rates by a 0.25%, tightening policy as expected for
a third month in a row as inflation runs at 17-year highs despite a
slowing economy. The latest rate increase brings the overnight
borrowing rate to 5.75/6.00 percent and the overnight lending rate to
7.75/8.00 percent. The Philippines stock exchange gained 0.34% to
2,665.75

Elsewhere, Taiwan's Taiex closed down 0.67% at
7,033.37; Singapore's Strait Times closed down 0.5% at 2,691.00;
Malaysia's KLCI closed up 0.3% at 1,070.46; Indonesia's Jakarta
Composite index closed up 0.65% at 2,144.85.

In the other part
of the world, European shares weakened in early trading, as an up tick
in oil prices pressured stocks sensitive to consumer spending such as
automaker Daimler.

Of national indexes, the French CAC-40 index
lost 0.4% to 4,365.70, the German DAX 30 index fell 0.7% to 6,280.51
and the U.K. FTSE 100 index declined 0.2% to 5,514.60. At 10.52 GMT all
this national indices were back in green. U.K. FTSE 100 index gained at
0.23% to 5,540.70. The German DAX 30 index was still down by 0.3% to
6,300.65, while the French CAC-40 index came at par with 4,373.05.

On
the economic front, British retail sales fell at their sharpest annual
pace in at least a quarter of a century in August as the housing market
contraction and wet weather hit retailers hard. The Confederation of
British Industry's distributive trades survey balance fell to -46, the
lowest since the series began in 1983, from -36 in July. Retailers were
also very gloomy about the outlook for next month; with the
expectations balance for September also hitting a series low of -42.

In
another data release, British house prices fell 1.9 percent in the
month of August to post their biggest annual drop since monthly records
began in 1991. The decline, pushed the average price of a property to
164,654 pounds ($303,700), the lowest since May 2006. The 10th
consecutive monthly decline highlights the reversal of fortune for the
property market since the credit crunch took hold last summer, bringing
an end to a decade in which property values almost trebled.

In
Germany, the number of jobless people in Germany declined by 40,000 in
August in seasonally adjusted terms compared with July. It said the
adjusted jobless rate in August was at 7.6 percent, down from 7.7
percent in July. The total number of unadjusted number of jobless
people stood at 3.196 million, it added. The unadjusted jobless rate
also fell to 7.6 percent from 7.7 percent in July, it said.

In
Euro zone, M3 money supply growth in the 15-nation euro zone
decelerated to an annual rate of 9.3% in July from 9.5% in June, the
European Central Bank reported Thursday. Three-month average annual
growth declined to 9.6% in the May-July period, down from 10% in
April-June, slightly above expectations of 9.5%.

Looking ahead
the day is schedule to release some of the most important event of the
data release calendar. First of all Bureau of Labor supply will release
the weekly data on continuous jobless claims and initial jobless
claims. It will be accompanied by personal consumption data for the
second quarter. However the focus will be on preliminary estimates of
gross domestic product for the second quarter of 2008. In the late
evening we have a series of data from the Japanese statistical house
starting with purchasing managers index of manufacturing for the month
of August, which will be followed by data on industrial production and
unemployment. Data on large retail sales and retail trade will
accompany them. However the market will focus on data on inflation,
which will show by the national consumer price index for the month of
July.
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U.S. Recession Fear Drags Asian Equity Markets Lower

01 Aug 2008 | 15:51




U.S. Recession Fear Drags Asian Equity Markets Lower


Asian
markets declined, after disappointing U.S. economic data released
yesterday revived worries about the strength of the world's largest
economy showing some chanced of recession for the country. Oil prices
fell overnight on demand concerns to slightly above $124 a barrel. In
addition, the weak earnings performance from banks added to the selling
pressure in Japan. Chinese stocks in Hong Kong declined, but Shanghai
shares reversed direction in the afternoon, rebounding after three
straight sessions of declines, as bargain buyers snapped up financial
shares.

On Wall Street, the Dow Jones Industrial Average tumbled
1.8% to 11,378.02 and the S&P 500 index lost 1.3% to 1,267.38,
while the Nasdaq Composite gave up 0.2% to 2,325.55. The drop came as
in addition to the weak GDP, which grew 1.9% in the second quarter,
compared with expectations of 2.3%. Also, annual revisions showed the
economy contracted in the fourth quarter of 2007, falling 0.2% for the
first drop in real gross domestic product since the recession of 2001.
The economy grew at a revised 0.9% annual rate in the first quarter
Another government data showed the number of people seeking jobless
benefits rose to the highest level in five years. The figures released
by the Labor Department said the initial claims for unemployment
benefits jumped by 44,000 to 448,000 in the week ended July 26. The
U.S. investors await the release of July employment figures and the ISM
index later today.

In the oil market yesterday the oil prices
dropped on concern that global consumption is falling on slowing
economic growth. Oil closed down $2.69 at $124.08 a barrel on the New
York Mercantile Exchange. In Asian trade, the front-month contract
slipped 72 cents to $123.36 a barrel.

In the currency market,
the U.S. dollar traded in the mid 107-yen levels late Friday, down from
upper 107-yen levels in early trade and lower 108-yen levels late
Thursday. The dollar dropped fell against the yen in Asia due to
settlement orders from Japanese exporters. The U.S. dollar bought
107.77 yen recently, compared with 107.90 yen late Thursday.

The
Australian dollar hit seven-week lows, taking its losses for the week
to over 2%, on speculation that domestic interest rates could be cut as
early as September. The Aussie was quoted at US$0.9374-0.9375, down
from US$0.9453-0.9454 late Thursday.

The New Zealand dollar
skidded to 10-month lows amid deepening concerns over the local
financial sector. The kiwi was quoted at US$0.72720.7280 compared to
Thursday's close of US$0.7329-0.7335

The Japanese market closed
sharply lower after posting gains for the previous two sessions. The
market opened on a weak note, tracking disappointing U.S. economic
data, and extended its losses amid weakness throughout Asian equity
markets and poor Japanese corporate earnings.

The benchmark
Nikkei 225 index fell to its lowest level in two weeks. The key index
finished the session at 13,094.59, down 2.1%, its lowest level since
July 18 when it finished at 12,803.70. The broader Topix index dropped
30.69 points or 2.4% to finish at 1,272.93.

In economic news,
the Japan Automobile Dealers Association said that sales of new cars,
trucks and buses, excluding Mini vehicles, rose 5.4% to 302,568 units.
Sales rose for the first time in three months. Car sales rose 9.3% to
267,725 units, while sales of buses fell 14.7% to 1,228 units and truck
sales declined 17.6% to 33,615 units.

The Chinese market closed
higher, paring early losses, after President Hu Jintao reiterated the
government's intention to maintain steady and fast economic growth. In
other news, an anti-monopoly law became effective in China. The law is
the mainland's version of antitrust regulations already in force in the
developed countries, and comes at a time when Chinese firms are
increasing their global presence through overseas acquisitions and the
country was gaining in strategic importance for international companies.

On
the economic front the purchasing managers index in China fell to a
series low of 48.4 in July, a level indicating economic contraction,
according to news reports. The reading was 52.0 in June The benchmark
Shanghai Composite Index closed up 0.94% at 2,801.82 after three days
of losses.

In Hong Kong, the Hang Seng Index continued its
upward movement as it registered a gain of 0.6% at 22,862.60, while the
Hang Seng China Enterprises Index increased by 0.3% to 12,545.22.

On
the economic front the purchasing managers' index for Hong Kong fell in
July, reflecting a simultaneous contraction in private-sector output
and new orders for the first time in 3- years, signaling overall
economic growth is slowing sharply.

The Hong Kong purchasing
managers' index (PMI), based on a survey of 300 private companies,
measured a seasonally adjusted 49.4 in July, falling below 50 -- the
dividing line between growth and contraction in the private sector --
for the first time since December 2004. It was down from 50.6 in June.

According
to the survey the orders were depressed by weaker demand at home and
internationally last month and because some customers refused to pay
higher prices. The drop in the PMI follows an unexpected decline in the
territory's exports in June. Consumer spending continues to drive
economic growth and remains solid but there are signs that rising
inflation and a weak stock market are making consumers more cautious.

The
Australian stock market closed lower, snapping a two-day winning
streak. Wall Street provided a weak lead, as the U.S. market posted
triple-digit losses overnight following worse-than-expected data for
both GDP and jobs. Further, Suncorp Metway's profit warning and weaker
commodity prices hurt investor sentiment.

The benchmark
S&P/ASX 200 index closed down 1.5% at 4,904.0, after gaining 0.8%
on Thursday. The broader All Ordinaries index lost 74.6 points or 1.5%
to finish at 4,978.0.

On the economic front, the Reserve Bank of
Australia's index of commodity prices rose further in July, adding to
already hefty gains driven by surging prices for coal and iron ore. The
central bank's index increased by 3.0% in special drawing rights or SDR
terms to a record 260.5. In Australian dollar terms, it rose by 2.8% to
another record of 182.5.

Australia's manufacturing sector
contracted for the second consecutive month in July, with the
Australian Industry Group-PricewaterhouseCoopers Australian Performance
of Manufacturing Index falling 0.1 point in July to 46.9 from June. The
slowing domestic and global economy, higher interest rates and stronger
Australian dollar contributed to the fall.

Meanwhile, the
monthly TD Securities/Melbourne Institute inflation survey showed that
consumer prices rose 0.4% in July, following a 0.5% hike in June.
Inflation in Australia eased slightly in July, but remained above the
Reserve Bank's target range.

The New Zealand market closed lower
Friday, ending a two-day winning streak. Wall Street's plunge overnight
amid disappointing U.S. GDP and jobs data dented investor sentiment.
The benchmark NZX 50 index closed down 33.1 points or 1.0% at 3,303.2
and the broader NZX All Capital Index fell 40.5 points or 1.2% to
finish at 3,339.0.

The South Korean market plunged after posting
gains for the previous two trading sessions. The benchmark Korea
Composite Stock Price Index or Kospi lost 1.31% to end at 1,573.7

On
the economic front, a government report showed that South Korea's trade
balance remained in the red for a second straight month in July, mainly
due to sharp hikes in global oil prices. The Ministry of Knowledge
Economy said that the trade deficit stood at US$1.62 billion in July.
Imports soared a record 47.3% on year to US$43.04 billion, while
exports rose 37.1% to $41.41 billion.

In Thailand, the annual
inflation rate rose to a new 10-year high of 9.2 % in July, slightly
lower than expectations, fuelled by sharply higher oil and food prices.
Inflation accelerated sharply from 8.9 percent in June and 7.6 percent
in May. Annual core inflation was 3.7 percent in July, up from 3.6 in
June. The Thailand the Thai Set 50 index increased by 0.3% to 475.57.

India's
Sensitive Index, or Sensex, was trading in positive territory,
recouping some of its early losses. The market opened sharply lower
following weak cues from the rest of the global markets. On the
earlier, the official data released showed India?s wholesale price
index-based inflation accelerated to 11.98% in the week ended 19 July
2008, higher than 11.89% recorded in for the previous week ended on 12
July 2008. The Sensex closed at 14656.69 i.e. 2.1% higher than
yesterday? closing.

Elsewhere in the region, Singapore's Straits Times index declined 0.8% while Taiwan's weighted index declined 0.3%.

In
the other part of the world, growing pessimism about the world economy
dragged the European stocks lower. In the opening trade, the U.K. FTSE
100 fell 0.5% to 5,384.20, the German DAX 30 lost 0.8% to 6,425.31 and
the French CAC 40 fell 0.9% to 4,354.65

There was slew of
economic data released today showing much gloomier picture for the
region. In Germany, the retail sales plunged 3.9% on the year in June,
the sharpest drop since March, while sales on the month were weaker
than expected. Retail sales fell a seasonally adjusted 1.4% on the
month in June In separate data Friday, which includes vehicle and gas
station sales, the Deutsche Bundesbank said retail sales fell 2.8% on
the month and 3.7% on the year, reflecting higher fuel costs.

In
another data release, final purchasing managers' index for
manufacturing was at 50.9 points in July, down from 52.6 points in June.

In
U.K. the manufacturing sector contracted sharply in July, as activity
levels wilted to their lowest levels since December 1998. According to
the data the Purchasing Managers Index dropped to a reading of 44.3 in
July from a downwardly revised 45.9 in June.

In Euro Zone the
manufacturing activity sunk to a five-year low in July, as pressures
from the strong euro, soaring commodity prices and higher interest
rates took their toll on the currency bloc's factory sector.

The
Purchasing Managers Index for the euro zone's factory sector fell to
47.4 in July from 49.2 in June. That's slightly below a previously
released estimate of 47.5 and indicates that activity contracted for
the second month in a row.

The ahead features some of the most
explosive events for the week as it will release average hourly earning
for U.S, which will be followed by data on construction spending, and
ISM manufacturing index. However the focus of the market will be on Non
Farm Payrolls scheduled to release in the evening, which will be
accompanied by the unemployment rate for the July.
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US Market ends flat for the week

04 Aug 2008 | 08:31




US Market ends flat for the week

US Market ended the week on Friday, 01 August almost flat with little
losses for the Dow Jones Industrial Average. Mixed economic data,
mostly better-than-expected earnings reports, and volatile crude prices
prompted the market's ups and downs during the week. Financial sector
had some positives and also had some negatives during the week. The
negatives came during the start of the week. But it was then taken over
by spate of economic data during the course of the week.

The
Dow Jones Industrial Average lost 44 points for the week to end at
11,326.6. Tech - heavy Nasdaq gained 0.43 points at 2,310.96. S&P
500 gained 2.55 points to end at 1,260.31.

The financial
sector came under severe pressure during the start of the week. On
Monday, 28 July, there was news that the FDIC seized two regional banks
- First National Bank of Nevada and First Heritage Bank, marking the
sixth and seventh failures this year. The banks' deposits were taken
over by Mutual of Omaha.

Then, on Tuesday, 29 July, main news
came from Merrill Lynch who tried to reduce its risk exposure and shore
up its balance sheet. Merrill Lynch announced selling $30.6 billion
worth of U.S. CDOs for only $0.22 on the dollar, or $6.7 billion. The
assets were valued at $11.1 billion at the end of the second quarter
implying that the sale will result in a $4.4 billion pretax write-down.
Merrill has taken $51.8 billion in write-downs and credit losses since
the credit market turmoil began last year and is only second to
Citigroup in terms of writedowns.

But then, the financial sector
enjoyed several other positive developments, including the Fed
extending the length of its Term Securities Lending Facility program
through 30 January and is introducing longer terms to maturity for its
Term Auction Facility. The facilities were implemented to improve
liquidity during the recent credit market turmoil.

But outside
the financial sector, it was economic reports which dominated the week.
Second quarter GDP rose 1.9%, aided by the fiscal stimulus, although
the result was lower than the expected 2.3% gain.

The
government's jobs report for July was mixed, as payrolls slipped by a
smaller-than-expected amount, while the unemployment rate rose by a
larger-than-expected amount. Specifically, nonfarm payrolls fell by
51,000, which was better than the expected decline of 75,000.
Meanwhile, the unemployment rate rose to 5.7% from 5.5%.

The ISM
Index, a national manufacturing survey, posted a decent reading in July
given the current economic conditions. The index was roughly unchanged
at 50.0, which represents flat manufacturing growth.

On the
earnings front, Exxon Mobil posted a 14% increase in net income to
$11.68 billion, marking the largest quarterly profit in U.S. history.
But the results were still below expectation. Among others, while
Corning, Garmin and MetLife disappointed traders, ArcelorMittal and
Comcast met expectations. Other than that, Altria, Disney, MasterCard,
Visa and Tyco - all reported upside earnings results.

Auto
manufacturers were affected during the week after General Motors swung
to a massive $15.5 billion second quarter net loss, as consumer
preferences shift away from large trucks and SUVs in the face of record
gasoline prices.

Crude prices ended higher on Friday, 01
August, 2008 as the dollar fluctuated and as Middle East tensions
cropped up due to a possible Israeli strike on Iran. For the week also,
it managed to end higher for this rise on the last day. Crude-oil
futures for light sweet crude for September delivery closed at
$125.1/barrel (higher by 1.02 or 0.8%) on the New York Mercantile
Exchange. Futures earlier fell to an intraday low of $123.5 a barrel.
But it also rose to a high of $128.6 during intra day trading and cut
most of their gains by afternoon. For the week, crude prices ended
higher by 1.5%.
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Asian Markets Trade Lower As Nikkei Ends Below 13,000 Mark

04 Aug 2008 | 16:20




Asian Markets Trade Lower As Nikkei Ends Below 13,000 Mark


The
stock markets across the Asian region were trading lower on the first
day of the week, as the concerns about the health of the U.S. economy
remain elevated. The Wall Street fell Friday after a report showed that
U.S. employers cut jobs for the seventh straight month in July and a
rise in crude oil prices. On Wall Street the Dow industrials fell 0.45%
to 11,326.32, the broader S&P 500 index lost 0.56% to 1,260.31 and
the Nasdaq dropped 0.63% to 2,310.96 on Friday after a government
report showed that the U.S. employers cut jobs for the seventh straight
month in July.

Oil prices continued to rise today on fresh
worries about Iran's disputed nuclear program and a new storm brewing
in the Gulf of Mexico. In the Asian session, oil is currently adding 49
cents to $125.59 after the contract for September delivery settled at
$125.10 a barrel, up $1.02 on the New York Mercantile Exchange on
Friday.

In the currency market, the dollar strengthened to the
upper 107-yen levels in late Tokyo deals from mid 107-yen levels in
early trade and late Friday. The Australian dollar closed weaker after
hitting a three-month low ahead of the monetary policy decision from
the central bank on Tuesday. The local unit finished the session at
US$0.9313-0.9316, down from Friday's close of US$0.9364-0.9366.

In
case of South Korean won the U.S. dollar closed at 1,017.4 won, up from
Friday's close of 1,014.6 won. The New Zealand dollar posted modest
gains against the U.S. dollar. The kiwi finished the session at
US$0.7286 after falling to a new 10-month low around US$0.7245 early on
Saturday. The kiwi had closed at US$0.7274 on Friday.

Coming
back in equity markets which mostly registered declined, with Japanese
stocks extending losses after automobile giants Toyota Motor Corp. and
Honda Motor Co. reported lower U.S. sales in July. The Japanese market
closed sharply lower after losing 2.1% on Friday. The key Nikkei index
fell below the 13,000 mark for the first time in two weeks, as dismal
earnings outlook for Japanese companies and uncertainty about the U.S.
economy weighed on investor sentiment. The benchmark Nikkei 225 index
closed down 1.23% at 12,933.18. The broader Topix index lost 1.94% to
finish at 1,248.25.

On the economic front, the Bank of Japan
said that Japan's monetary base fell 0.7% to 87.85 trillion yen in July
from a year earlier, marking the first fall in two months. Later in the
day, Japan Machine Tool Builders Association releases preliminary data
on machine tool orders for the month of July.

The Chinese market
closed sharply lower, reversing Friday's gains. The market started off
weak after Wall Street finished lower Friday and extended losses after
China South Locomotive & Rolling Stock Corp. said that it might
raise US$1.5 billion from dual Shanghai and Hong Kong initial public
offerings. The benchmark Shanghai Composite index closed down by 2.14%
at 2,741.74.

In Hong Kong, the Hang Seng Index continued its
upward movement as it registered a fall of 1.5% at 22,514.92, while the
Hang Seng China Enterprises Index declined by 2% to 12,296.59.

The
Australian stock market closed lower, extending Friday's losses. Wall
Street's decline on Friday, following a weak jobs report and a rise in
crude oil prices, dampened investor sentiment. The market traded
briefly in positive territory in early trade, after a weak opening, but
moved back into negative terrain soon as Lend Lease Corp announced a
profit downgrade. While miners lost ground on lower metals prices,
energy stocks gained on rising oil prices.

The benchmark
S&P/ASX 200 index closed down 0.3% at 4,887.7, after losing as much
as 1.5% on Friday, and the broader All Ordinaries index lost 20.4
points or 0.4% to finish at 4,957.6.

On the economic front,
Australian house prices fell for the first time in almost three years
in the second quarter. However, the drop was smaller than the fall that
analysts had expected. Weighted average prices for established houses
in Australia's eight largest cities dipped 0.3% in the quarter,
compared to a 0.4% rise the previous quarter.

Meanwhile, a
survey by Australia and New Zealand Banking Group showed that job
advertisements around the country has fallen for the third successive
month. Newspaper and Internet job ads fell by a seasonally adjusted
0.3% in July to 261,936 a week, but were up 5.5% on year. Jobs
advertised in newspapers dived by 5.1% to 15,739 last month, while
Internet ads were flat at 246,197.

The South Korean market
closed sharply lower on Monday, led by shipbuilders. The market started
off weak amid worries about the U.S. economy and rising oil prices and
extended losses after shipbuilders reported cancellation of orders. The
benchmark Korea Composite Stock Price Index or KOSPI closed down 1.95%
at 1,543.05.

On the economic front, the Bank of Korea said that
South Korea's foreign exchange reserves declined for the fourth
consecutive month in July. Foreign exchange reserves fell US$10.58
billion to US$247.5 billion by the end of July. In June, reserves
totaled US$258.1 billion.

The New Zealand stock market closed
higher on Monday, reversing a portion of the losses that it posted on
Friday. The market started off lower, tracking a weak lead from Wall
Street, but moved into positive territory by mid morning. The benchmark
NZX 50 Index closed up 0.49% at 3,319.22 and the broader NZX All
Capital Index rose 0.47% at 3,358.44.

On the economic front,
Statistics New Zealand said that the number of New Zealanders in
full-time employment and the amount they earned both increased for the
year ending in June 2008. Employment, as measured by full-time
equivalent workers, increased 2.5% for the 12 months through the June
2008 quarter, but slowed from the 3.5% annualized rate at the end of
the March 2008 quarter. Meanwhile, earnings rose by the highest amount
on record. The Labor Cost Index from Statistics NZ showed an increase
of 3.5% in overall salary and wage rates for the year through June.

The
Indian market were trading firm after opening on a positive note today
morning. The market pared gains within a few minutes of trading, but it
is currently trading firm amid alternate bouts of buying and selling.

After
opening higher at 14,595, the Sensex pared gains within a few minutes.
Although the benchmark recouped some of its losses, finally closing at
14,577.87, down 0.54% over the previous close. Meanwhile, the S&P
CNX Nifty is trading at 4,395.35, down 0.41%.

Elsewhere in the
region, Singapore's Straits Times index declined 1.03% while Taiwan's
weighted index declined 0.3%. In Thailand, the Thai Set 50 index
decreased by 0.6% to 472.42.

In the other part of the world the
European shares declined, weighed down by losses from the banking
sector, although sharp gains from oil majors such as BP and Eni helped
place a floor under losses. Of national indexes, the U.K. FTSE 100
index climbed 0.2% to 5,364.70; the French CAC-40 index dipped 0.3% to
4,302.68 while the German DAX 30 index lost 0.7% to 6,352.40

On
the economic front, the British construction activity fell at a record
pace in July, a further sign that the sector is weakening sharply in
the wake of the credit crunch. The Chartered Institute of Purchasing
and Supply's (CIPS) construction PMI fell to 36.7 last month -- the
weakest reading since the survey began in 1997 -- from an initially
reported 38.8 in June. The housing sub-index fell to a series low of
18.7 in July, the eighth consecutive fall.

However the focus of
the markets was on the industrial producer prices across the euro zone,
which rose at a monthly pace of 0.9% in June for an annual rise of 8%.
Excluding energy, producer prices rose 0.4% from May for a 4% annual
rise. The annual increase is the highest since June 1982 when it has
touched the level of 8.6%.

In another data release, Euro Zone?s
Sentix confidence index for August has declined six points from July,
posting lowest drop in the last five years.

According to the
Sentix Institute for economic research the investor confidence has
plummeted in August to a level of -15.3, from -9.3 in July. The index
assessing the actual situation has declined to 0 from 11.75 in July,
while the expectations index has posted a more moderate decline to
-29.50 from -28.25 in July.

After this slew of negative news the
stock market dived further into the negative territory. The U.K. FTSE
100 index was down by 0.1% to 5,352.30; the French CAC-40 index dipped
0.4% to 4,297.51 while the German DAX 30 index lost 0.8% to 6,348.79.

Looking
ahead the day is left with series of economic indicators from the U.S.
The focus of the market will be on the Core personal consumption
expenditure, which is gauged as the key inflationary measure by the
Fed. It will be followed by the data on the personal income and
spending. In the late evening we have data on Factory orders for the
month of June 2008.

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Asian Markets Rally After Wall Street; Oil Downward Spiral Continues

06 Aug 2008 | 16:03




Asian Markets Rally After Wall Street; Oil Downward Spiral Continues


The
stock markets across the Asian region were trading sharply higher,
boosted by Wall Street's rally overnight. The U.S. markets started off
higher following a positive report on service sector activity and a
fall in crude oil prices and extended their gains after the Federal
Reserve decided to leave its benchmark interest rate unchanged at 2%.

On
Wall Street, the Dow jumped 331.62 points or 2.94% to close at
11,615.77, the broader Standard & Poor's 500 index added 35.87
points or 2.87% to end at 1,284.88, and the Nasdaq composite index rose
64.27 points or 2.81% to finish at 2,349.83 on Tuesday.

Crude
prices plunged as Tropical Storm Edouard spared the key offshore rigs
along the Gulf of Mexico. The Oil fell to as low as $118 a barrel
before settling at $119.17, down $2.24 on the New York Mercantile
Exchange. Oil has now fallen $28 from its July 11 high of $147.27 on
widening expectations that the slumping U.S. economy will impact
demand. In late Asian session Wednesday, oil is currently adding 6
cents to trade at $119.23 a barrel.

In the currency market, the
dollar was quoted in the lower 108-yen levels, compared to upper
107-yen levels late Tuesday. The Australian dollar opened at near
four-month lows of US$0.9160-0.9165. The New Zealand dollar rallied
from a 10 1/2-month low of US$0.7220 against the greenback overnight
and was buying US$0.7261 in early local trade. In case of South Korean
won, the U.S. dollar finished the session at 1,015.9 won, down from
1,017.9 won late Tuesday.

Coming back in the Asian equity
market, the Japanese stock market snapped a three-day losing streak to
finish sharply higher on Wednesday. Wall Street's rally overnight amid
positive report on service sector activity, falling oil prices and the
Federal Reserve's decision to hold its benchmark interest arte at 2%
buoyed market sentiment. The Fed's strong warning on inflation weighed
on crude oil prices and kept the dollar above 108 yen, boosting
exporters.

The benchmark Nikkei 225 Index closed up 2.6% at 13,254.89 and the broader Topix Index advanced 2.4% to finish at 1,277.27.

On
the economic front, a preliminary report from the Cabinet Office showed
that the Japanese leading index dropped to 91.2 in June from 92.9
reported in May. Economists were looking for a reading of 91.1.

Meanwhile,
the coincident index stood at 101.7, in line with expectations.
However, the index fell from May's 103.3. Further, the lagging index
slid to 102.3 from 103.4 registered in May.

Chinese shares in
Shanghai and Shenzhen rebounded after suffering deep losses Tuesday.
The Shanghai Composite gained 1.1% to 2,719.37, while Shenzhen All
Share index ended little changed at 790.65 after a roller-coaster ride.

Hong
Kong financial markets were closed as an approaching cyclone brought
gale-force winds and heavy rain into the territory, prompting officials
to issue a citywide shutdown order.

The Australian stock market
closed sharply higher, ending a three-day losing streak. The benchmark
S&P/ASX 200 index closed up by 3.1% at 4,969.1 and the broader All
Ordinaries index climbed 2.8% to finish at 5,018.1.

On the
economic front, data released by the Australian Bureau of Statistics
showed that the number of housing loans for owner-occupiers dropped by
a seasonally adjusted 3.7% in June, the fifth successive month of
decline. June housing finance commitments fell by more than expected,
just a day after the Reserve Bank of Australia signaled that it was
looking to cut interest rates. Lending for investment properties
contracted 0.3% in June from a revised 6.1% slump in the previous month.

The
New Zealand market closed sharply higher on Wednesday, recouping
Tuesday's moderate losses. Wall Street's big rally overnight on the
back of positive data, a fall in oil prices and the Federal Reserve's
decision to keep the benchmark interest rate unchanged at 2% boosted
investor sentiment. The benchmark NZX 50 index closed up 1.72 % at

3,352.34 and the broader NZX All Capital Index advanced 1.35% to finish at 3,380.11.

The
South Korean market rallied after posting losses for the previous three
consecutive sessions. After starting off on a firm note, tracking a
rally on Wall Street and oil's slide overnight, the benchmark Korea
Composite Stock Price Index or Kospi closed up 2.81% at 1,578.71, its
biggest daily gain in over two weeks.

On the economic front,
South Korea's retail sales growth slowed in June as higher commodity
prices reduced consumer spending. The National Statistical Office said
that sales in South Korea's retail stores increased 6.8% year-over-year
in June, slower than the 10.1% rise seen in May. Retail sales accounted
for 20.1 trillion won, down from 21.5 trillion won in the previous
month. Excluding vehicle fuels, retail sales increased 5% over the
previous year compared to 6.4% in May.

Meanwhile, the Bank of
Korea said that South Korean money supply grew at a slower pace of
12.7% in June from the previous year. The growth eased from 14.2%
reported in May. Liquidity aggregates amounted to nearly 2,196.9
trillion won.

The Indian market is trading firm after positive
cues from the rest of the global markets, a retreat in the price of oil
and some announcements of economic reforms by the Indian government is
keeping the undertone bullish.

After opening at 15,264, the
Sensex extended its gains closing at 15,073.54, up 112.47 points or
0.75% over the previous close. The S&P CNX Nifty is closed up 15
points or 0.33%.

Elsewhere, Taiwan's Taiex surged 3.1% while
South Korea's Kospi added 2.8%. The Singapore's Straits Times Index
rose 0.9% while Thai Set index jumped by 1.8%.

In the other part
of the world the European shares declined, weighed down by losses from
the banking sector, although sharp gains from oil majors such as BP and
Eni helped place a floor under losses. At 10.50 GMT the French CAC-40
index rose 0.4% to 4,406.55

The German DAX 30 index plunged by
0.1% to 6,510.01. On the economic front the German manufacturing orders
fell a seasonally adjusted 2.9% in June from May, According to
preliminary data from the Ministry of Economics and Technology shows
revised its May figure to a month-on-month decline of 1.4 percent from
a previously announced 0.9 percent decline.

Domestic orders in
June fell by 0.6 percent, while orders from abroad dropped 5.1 percent.
Demand for capital goods fell 4.4 percent, while manufacturers of
consumer goods reported a 0.5 percent increase in orders.

Using
a two-month comparison to account for seasonal fluctuations, adjusted
manufacturing orders fell 3.7 percent in the May to June period
compared with April to May. Unadjusted June manufacturing orders fell
by 6.1 percent on a year-on-year basis.

In U.K the labor market
weakened further in July with recruitment consultancies reporting a
sharp downturn in permanent staff placements, moderating pay growth,
and a rise in staff availability. The Report on Jobs, produced by
Markit Economics and sponsored by KPMG and the Recruitment and
Employment Confederation, showed the seasonally adjusted index of
permanent staff placements fell to 44.1 in July from 48.2 in June, the
sharpest drop since December 2001. The U.K. FTSE 100 index by 0.1% to
5,450.80.

Looking ahead the day is scheduled to release data on
MBA mortgage application data for August. It will be followed by Ivy
Purchasing Managers index for the July 2008. In the evening we have EIA
Crude stock for the week ended on August 2. In the late evening we have
unemployment data from New Zealand for the second quarter, which will
be followed by the core machinery orders from Japan


.
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Good gains for US Market

11 Aug 2008 | 08:54




Good gains for US Market

A strong dollar and lower crude price were the main highlights for the
US Market for the week ended on Friday, 08 August. Stocks at Wall
Street soared and registered good weekly gains. Economic data that hit
the wired during the week were mixed in nature. Also, the Federal
Reserve elected to leave the fed funds rate unchanged at 2% and
provided a policy directive that left investors inclined to think there
won't be a tightening anytime soon. A reassuring earnings report and
outlook from tech bellwether Cisco Systems helped overall market
sentiment improve further.

The Dow Jones Industrial Average
gained 408 points for the week to end at 11,734.32. Tech - heavy Nasdaq
gained 103 points at 2,414.1. S&P 500 gained 36.01 points to end at
1,296.32.

Tighter Chinese controls on currency inflows and
worries about the outlook for economic growth in the euro-zone
countries sent the dollar sharply higher during the end of the week
while the European common currency tumbled to a five-month low against
the greenback.

In the financial sector, government sponsored
enterprises Freddie Mac and Fannie Mae both reported huge quarterly
losses, as did Dow component AIG. But despite these, the financial
sector held its head high for most part of the week. Also, Moody's that
it has placed American Express' A1 rating on review for downgrade.

The economic data seen during the week was mixed. Personal income and
spending for June was better than expected, but the price deflator
provided a negative surprise. The inflation fears were tempered,
though, in the wake of the FOMC decision and with commodity prices
continuing their decline. The ISM Services and Pending Home Sales
reports also brought better than expected results.

Friday's
report on Q2 productivity provided more encouraging inflation news when
it was reported unit labor costs rose just 1.3% from the first quarter.
That was a slower rate of increase than seen in the prior two quarters.

Weekly initial claims, however, were anything but good. They
jumped to 455,000, which moved the 4-week moving average to 419,500
from 392,750. That is the highest 4-week average since July 12, 2003.
Continuing claims increased 0.9% to 3.311 million.

The
consumer discretionary sector was the best-performing sector for the
week. On the other hand, the energy sector and the materials sector
were at the end of the performance table.

Crude-oil futures for
light sweet crude for September delivery closed at $115.2/barrel (lower
by 4.82 or 4.4%) on the New York Mercantile Exchange for the week.
Futures earlier fell to an intraday low of $115.1 a barrel. For the
week, crude prices ended lower by $9.9 (8%). Crude lost $15.92 (11%) in
July, 2008, the biggest ever in dollars.

In the currency
market on Friday, the dollar rallied against the euro. The dollar
surged against major counterparts, mostly as concerns about the
eurozone economy increased following the European Central Bank's
decision to leave interest rates unchanged on Thursday. The greenback
garnered attention following cautions that the European economy would
weaken. As tighter credit and higher costs hit the continent, growth
prospects become dimmed, making it less likely the ECB will hike
interest rates. The dollar index traded 1.6% higher.
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US Market registers modest gains

12 Aug 2008 | 09:43




US Market registers modest gains

In the US stock market on Monday, 11 August, the stock market posted a
solid gain with notable strength in financials and retailers. The end
result was not as strong as it could have been, however, as the stock
market gave up half its advance in afternoon trade as crude prices
recovered some losses and the Fed said that lending standards have
tightened. The stock market inversely tracked oil price movements for
most of the session, as there was very little corporate news and no
economic data to focus on.

The Dow Jones industrial Average
ended the day with a modest gain of 48 points at 11,782. The Nasdaq
Composite Index, finished higher by 25.8 points at 2,439.95. S&P
500 finished higher by 9 points at 1,305. The Nasdaq is outperforming,
partially due to strength in Amazon.com.

According to the
Fed's latest survey, domestic financial institutions tightened their
lending stands on all major loan categories over the past three months.
Specifically, 75% of domestic respondents tightened requirements for
lending standards on prime mortgages, which is up from the previous
survey's reading of 60%.

Amazon.com shares soared 9.4% today
after Citi said that sales of Amazon's electronic book reader, Kindle,
appear to be much stronger than expected.

In terms if
corporate news in Wall Street, Waste Management raised its offer to
purchase Republic Services to $37 per share, or $6.73 billion, from $34
per share. This represents a 33% premium to Republic's share price
prior to Waste Management's original proposal. Republic said it will
review the offer.

In commodity trading, a strong dollar and
overall economic concerns related to the US economy pushed crude prices
below the $115/barrel level for the first time in three months. Prices
rose above $116 earlier during the day as five days of clashes between
Russia and Georgia threatened alternative export routes from
Azerbaijan, needed because of a pipeline fire. Crude-oil futures for
light sweet crude for September delivery closed at $115.2/barrel (lower
by 4.82 or 4.4%) on the New York Mercantile Exchange. Futures earlier
fell to an intraday low of $112.72 a barrel.

At the currency
markets on Monday, the dollar extended its last week rally against the
euro. The dollar index which measures the U.S. dollar against a basket
of major currencies, rose to 76.25, up from 75.82 in during last
Friday. A combination of factors drove the dollar's rise last week,
such as the European Central Bank admitting weakness in the euro-zone
economy. The dollar also gained on speculation the economic slowdown
that started in the U.S. is spreading.

Trading volumes showed
1.4 billion shares trading on the New York Stock Exchange and 757
million trading on the Nasdaq stock market. Gainers topped decliners by
a margin of 3 to 1 on the NYSE and 2 to 1 on the Nasdaq.

For
tomorrow, the economic calendar features the June international trade
balance data. The Treasury Budget for July is also due tomorrow; it is
scheduled for afternoon release.
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Asian Markets Slips In to Red After Arousing Start

12 Aug 2008 | 16:05




Asian Markets Slips In to Red After Arousing Start


The
stock markets across the Asian region closed lower after Wall Street
closed a volatile trading session with moderate gains overnight on the
back of a fall in crude oil prices. Oil finished the New York session
below $115, as fears of easing demand and a stronger dollar offset
concerns about the conflict between Russia and Georgia. In the Asian
session Tuesday, oil plunged further hovering around US$ 113 level.

The
U.S. market closed moderately higher after seeing considerable
volatility over the course of the trading session on Monday as oil
prices fell on concerns about weakening demand. The Dow closed up 0.4%
and the broader S&P 500 gained 0.7%, while the Nasdaq advanced 1.1%.

Crude
prices slid further today, even as Russia attacked a key strategic oil
pipeline in its battle with Georgia, as the International Energy Agency
forecast a steep drop in energy demand. Oil prices also fell as the
dollar hit a six-month peak against the euro, traders said. A stronger
US currency tends to dampen demand for dollar-denominated commodities
as they become more expensive for buyers holding weaker currencies.

London's
Brent North Sea crude for September delivery lost 1.56 dollars to
111.11 dollars per barrel in electronic trading on Tuesday. New York's
main contract, light sweet crude for September delivery sank US$ 1.35
dollars to 113.10.

The Russian airforce attacked a key oil
pipeline running through Georgia on Tuesday but there was no word yet
on whether it had been damaged, the secretary of Georgia's National
Security Council told AFP.

The International Energy Agency
raised its demand estimates in its latest monthly report expecting
world oil demand growth rose by approximately 60,000 barrels per day
(bpd) to 930,000 bpd in 2009 as consumption in non-OECD countries
increases, the International Energy Agency said today.

Compared
with its previous monthly report, it also nudged up its expectations
for demand in 2009 by 70,000 bpd to 87.8 million bpd and said its
outlook for 2008 was virtually unchanged.

In the currency
market, the U.S. dollar gained on expectations that the U.S. slowdown
was spreading to other economies. In early Tokyo deals, the dollar was
quoted in the lower 110-yen levels compared to upper 109-yen levels
late Monday. In South Korean local trade, the dollar opened lower at
1,030.0 won. The Australian dollar extended its losses for a tenth
consecutive trading session after opening lower at US$0.8838-0.8843.
The kiwi was trading weaker at US$0.6975 in early local deals.

The
Japanese market closed lower, as investors locked in profits following
a two-day winning streak. After opening weaker, despite a positive
finish on Wall Street overnight, the market made a vain attempt to move
into positive territory in the afternoon session. The benchmark Nikkei
225 index closed down 0.95% at 13,303.60 after advancing 2% in the
previous session. The broader Topix index closed down 0.7% at 1,271.42.

Among
economic data released today, wholesale price inflation jumped 7.1% in
July from a year ago. The Bank of Japan said that on a monthly basis,
the price of corporate goods rose 2.0%, sharply higher than the 0.8%
increase in June, which is also the forecast for July.

Market
remains cautious ahead of the release of Japan's second-quarter gross
national product data scheduled to release tomorrow. Traders are The
Japanese economy is expected to have contracted for the first time in
four quarters as the key growth drivers of exports, private consumption
and capital investment lost momentum.

In China, Shanghai-listed
stocks turned volatile closing lower for a third day, despite a
slowdown in July inflation. The benchmark Shanghai Composite Index shed
0.52% to finish at 2,457.20, its lowest closing level in 19 months.
Inflation slipped to 6.3% in July from 7.1% in the previous month.
However this a decline in consumer-level inflation could prove
temporary after the producer price index surged 10%, its highest rate
since 1996.

In another economic event, the actual foreign direct
investment (FDI) in China in the first seven months of this year
totaled US$ 60.724 billion, up 44.54% from a year earlier, the commerce
ministry said. There were 16,891 new foreign-funded enterprises formed
in the first 7 months of the year, down 22.15 pct from a year earlier,
according to a statement published on the ministry's website.

In
Hong Kong, the Hang Seng Index lost 1% to 21,640.89, after flirting
with gains earlier in the session, while the Hang Seng China
Enterprises Index gave up 1.7% to 11,445.55.

The Australian
market closed higher for a fifth day on Tuesday, recording the longest
winning streak in four months. The market started off weak, despite a
positive Wall Street lead, but moved into positive terrain following a
rebound in big miners in the afternoon session. The benchmark
S&P/ASX 200 index closed up 0.5% at 5,053.6 and the broader All
Ordinaries index gained 0.4% to finish at 5,090.3.

On the
economic front, the National Australia Bank's latest survey showed that
business conditions weakened to the lowest point in Australia in July
since the weeks after the September 11, 2001 terrorist attacks in the
U.S. The survey also showed that business confidence remained at the
lowest point since the 1991 recession.

The latest business
conditions score of -5 is below the zero level separating an expansion
from a contraction. The score has fallen by 25 points since reaching a
peak in October last year. The NAB's business confidence expectations
reading stood at -9 for July, a 17-year low for the second month in a
row.

The New Zealand market closed lower Tuesday, reversing
Monday's moderate gains. After a flat opening, the market was led lower
by top stocks Telecom and Fletcher Building. The benchmark NZX 50
closed down 0.49% at 3,353.63 and the broader NZX All Capital Index
lost 0.74% to finish at 3,347.80.

The Real Estate Institute of
New Zealand said that July house sales figures showed an unexpected
recovery. According to the Institute, the national median house price
remained the same as that for the previous month at NZ$340,000. Nine
out of twelve districts surveyed recorded increases in median prices.

The
South Korean market closed slightly lower amid worries that a
post-Olympics economic slowdown in China would hurt emerging markets.
The key index briefly gained ground in the afternoon session, rising
above the 1,590 mark, but failed to sustain momentum as investors
continued their selling spree. The benchmark KOSPI index closed down
0.25% at 1,577.12, ending a two-day winning streak.

The Indian
market is trading weak after opening slightly higher this morning. The
much-awaited data Index of Industrial Production (IIP) released today
afternoon showing the general index stands at 269.1, which is 5.4%
higher as compared to the level in the month of June 2007. The
cumulative growth for the period April-June 2008-09 stands at 5.2% over
the corresponding period of the pervious year

As per provisional
closing, the BSE 30-share Sensex was down 281.27 points or 1.81% to
15,222.65. At the day?s low of 15,124.91, the Sensex lost 379.01 in
afternoon trade. The index rose 75.86 points at day?s high of 15,579.78
at the onset of trading session. The S&P CNX Nifty provisionally
ended down 64.90 points or 1.40% to 4555.50.

Indonesian consumer
confidence rose in July after falling for eight straight months,
indicating that fewer respondents expressed pessimism about current
economic conditions and the economic outlook for Indonesia. According
to a central bank survey of 4,600 households in 18 cities across the
consumer confidence index rose to 82.1 points in July from 79.1 points
in June. However the Jakarta Composite plunged by 3.6% to 2,057.58.

Elsewhere,
Taiwan's Taiex shed 0.4% to 7,293.80 while Singapore's Straits Times
Index declined 0.3% to 2,816.82, after each of them changed direction
at least once during the session. In Malaysia the Kula Lumpur Composite
Stock exchange fell 0.77% to 1,118.78.

In the other part of the
world, the European markets broke there five-session winning streak,
with banks under pressure after UBS unveiled a second-quarter loss and
automakers giving back some strong gains made over the past week. The
German DAX 30 index fell 0.7% to 6,567.46.

The U.K. FTSE 100
index dropped 0.5% to 5,513.70 as U.K?s consumer price inflation marked
a fresh 16-year high in July, sharply accelerating to more than twice
the Bank of England's inflation target, data from the Office for
National Statistics showed.

Consumer prices climbed 4.4% on the
year, up from 3.8% in June and logging the third consecutive month that
inflation has been more than one percentage point above the Bank Of
England's 2.0% target.

The 4.4% annual gain in the CPI was the
largest since April 1992 based on a retrospective index and also the
biggest since the current series began in January 1997. The 0.6%
increase in the annual inflation rate in July marked the largest rise
since April 1991.

Consumer prices were flat on the month in
July, down from a 0.6% increase in June, but defied economists'
expectations of a 0.3% decline. The ONS said gains in food and
non-alcoholic beverage prices, which rose 12.3% in July, provided the
main stimulus for higher annual inflation. That increase marked a sharp
acceleration from a 9.5% gain in June, and was the highest since
records began in 1989.

Rising energy prices also provided
upward pressure, with average petrol prices increasing 1.2 pence to
118.8 pence a liter in July from June. Air transport prices also
surged, rising 8.9% after a 5.4% gain in June.

The core CPI,
which excludes energy, food, alcoholic beverages and tobacco, also
continued to rise more sharply last month, gaining 1.9% on the year.
That followed a 1.6% rise in June and was the highest rate since June
2007. In monthly terms, it fell 0.2%. Core annual inflation in July was
forecast at 1.7%.

In another worrying sign for policymakers,
the retail price index, which has historically been used as a guide for
pay settlements, rose 5.0%, marking its sharpest increase since July
1991. That followed a 4.6% rise a month earlier. In monthly terms, the
RPI fell 0.1%.

On the housing front there were further evidence
of the marked deterioration in the UK housing market; with government
data showing house price growth has slowed sharply from a year earlier.
The Department for Communities and Local Government (DCLG) found that
annual house price inflation fell to 0.6 percent in June from 3.0
percent in May. The average weighted house price, on a non-seasonally
adjusted basis, dropped to 215,029 pounds from 216,625 pounds in May,
the DCLG said.

In France, the French CAC-40 index lost 0.8% to
4,502.67. On the economic front, the consumer inflation eased on the
month in July as retailers cut prices for clothing in summer sales,
fresh food prices fell and energy prices rose moderately. According to
data from statistics office INSEE the consumer prices fell 0.3 percent
in July from the previous month but that left the year-on-year rate
unchanged at 4%.

The data in detail reveals prices for
manufactured goods were down 1.9 percent, with clothing and shoes
falling 9.5 percent, while fresh food products were 1.5 percent lower.

But
the data did not reflect the fall in crude oil prices over recent weeks
and overall energy prices, which have surged over the past year, were
up 0.2 percent on the month and 18.5 percent on the year. Processed
food products were up 0.3 percent on the month and transport and
communications costs rose 2.1 percent.

Looking ahead the day is
slated to release international merchandise trade balance for Canada,
which will be followed by the trade balance data from US. In the
evening we have July?s monthly budget statement, which will be followed
by ABC/ Washington post weekly consumer confidence. In the late evening
we have wholesale inflation data from New Zealand which will be
followed by series of economic event from Japan including the release
of GDP figure for second quarter.
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