Asian Markets Register Broad Based Decline

15 Jul 2008 | 15:36




Asian Markets Register Broad Based Decline


Asian
markets tumbled across the board, extending their poor run and pulling
down regional indexes, on persistent worries about the health of the
U.S. financial sector. Taiwanese and Japanese financials were hit
especially hard on reports about their exposure to troubled U.S.
mortgage giants Freddie Mac and Fannie Mae.

Overnight, the Dow
Jones Industrial Average fell 0.4% to 11,055.19, the Nasdaq Composite
gave up 1.2% to 2,212.87 and the S&P 500 index dropped 0.9% to
1,228.30 as uncertainty reigned in the wake of the failure of IndyMac
Bancorp and the government rescue of mortgage-finance giants Fannie Mae
and Freddie Mac.

On the currency front, the U.S. dollar was
mixed against major Asian currencies. The greenback opened higher
against the South Korean won at 1,005.0 a dollar, but was trading
weaker at lower 106-yen levels in early Tokyo deals. The Australian
dollar opened stronger at US$0.9716-0.9719 after hitting a fresh
25-year high on Monday. In early trades, the kiwi was buying US$0.7636
compared to US$0.7612 at close on Monday.

Coming back in Asian
equities the benchmark Nikkei 225 index closed down 1.96% at 12,754.56.
The index slipped below the 13,000 mark for the first time since April
15. The broader Topix index fell 2.2% to finish at 1,253.12.

On
the economic front, Bank of Japan's policy board, meanwhile,
unanimously decided to keep the key policy rate unchanged at 0.5%. The
central bank said in its monthly report on economic and financial
developments for June that the domestic economy was slowing due to
rising energy and material costs and said that although the economy
will likely continue to slow for a while, it will begin to grow
gradually after that.

China's Shanghai Composite dropped 3.4% to
2,779.45. In Hong Kong, the Hang Seng Index lost 3.8% to 21,174.77,
while the Hang Seng China Enterprises Index slumped 4.7% to 11,687.32.

South
Korean market sank with the key Kospi falling to 15-month lows. The
market started off weak, tracking a weak lead for the U.S., and
extended losses for a second straight session on weakness in the Asian
region and higher crude oil prices. Reports that South Korean financial
companies had a preliminary $550 million in total exposure to the
struggling Fannie Mae and Freddie Mac also added to the gloom.

The
benchmark Kospi tumbled 3.2% to end at 1,509.33. The index closed its
lowest close since April 2007 and recorded its biggest single-day
percentage drop since February.

Meanwhile, South Korea's revised
trade deficit widened to US$430 million from an earlier estimate of
$280 million in June due mainly to increased oil imports, government
report showed Tuesday. Exports were revised downward to $37.32 billion
in June from the previous $37.44 billion, while imports reached $37.75
billion, up from an earlier estimate of $37.72 billion.

Elsewhere,
Singapore's Straits Times Index fell 2.5% to 2,830.75 while Taiwan's
weighted index was down 4.5% at 6,834.24. Malaysia's KLCI was down 1.4%
to finish at 1,127.60.

The Australian stock market fell
extending yesterday's 1.2% losses after Wall Street closed lower for a
second day on lingering concerns about the U.S. credit market crisis.
Energy stocks and gold miners mostly gained as oil stayed near a record
and the precious metal surged overnight.

The benchmark
S&P/ASX200 index closed down 2.1% at 4,815.7, hitting its lowest
closing level in two and a half years. The index has dropped 24% since
the beginning of the year, putting it on course to post its first
annual loss since 2002. The broader All Ordinaries lost 97.8 points or
2.0% to finish at 4,910.1.

On the economic front, minutes of the
Reserve Bank of Australia's July meeting showed that the central bank
is growing more confident that decade-high interest rates will restrain
future inflation, reinforcing views monetary policy is on hold.

In
addition to this the Australian Bureau of Statistics reported that the
value of construction work done in Australia fell sequentially in the
first quarter, reflecting a decline in all types of construction
activities. The total value of construction activity declined a
seasonally adjusted 1% to A$16.48 billion in the first quarter compared
to the previous quarter.

The New Zealand stock market closed
sharply lower, extending Monday's 1.35% decline. The market opened on a
firm note, but slipped into negative territory following the release of
worse-than-expected inflation data. The benchmark NZX 50 Index closed
down 1.3% at 3,040.5, hitting a new three-year low.

According
to the data released by Statistics New Zealand showed that New
Zealand's consumer price index or CPI jumped 1.6% in the second
quarter, recording the largest quarterly rise in eighteen years.
Analysts expected CPI to rise 1.4%. For the year, inflation hit 4.0%
against market expectation for a 3.8% increase.

Statistics New
Zealand also said that food prices increased 1.3% in June. Food prices
rose 2.2% in the June quarter. On an annual basis, food prices rose
8.2%, the highest in 18 years.

The Indian market is currently
extending losses after opening on a weak note. Amid negative global
cues over concerns about the fallout from the credit crisis and
continued selling from foreign funds, traders are hesitating to make
fresh buying. After opening down 263 points, the BSE Sensex is
currently trading at 12,673, down 657 points or 4.9% over the previous
day's close. Meanwhile, the S&P CNX Nifty index is down 180 points
or 4.5%.

Turning toward European markets, which traded sharply
lower as the series of negative economic events hit the markets hard.
In the opening trade, the German DAX 30 index fell 1.5% to 6,105.13,
the French CAC-40 index dropped 1.4% to 4,083.22 and the U.K. FTSE 100
index fell 1.2% to 5,237.90.

On the currency front, the euro
surged to a new all-time high versus the dollar, surging as high as
$1.6036, as the greenback saw a broad decline against major currencies
on intensifying credit worries. The previous all-time high, set earlier
this year, was seen near $1.6020.

On the economic front, U.K?s
office for National Statistics (ONS) revealed that CPI inflation in
June was up 3.8 percent from the year before, the highest rate since
official records began in 1997 -- in an historically constructed
series, the ONS said June's rate was last higher in May 1992. The
statistics office said the main reason behind the spike in June's
inflation rate was soaring food prices, with food and non-alcoholic
beverages up 9.5 percent over the year, the highest rate since records
began in January 1997.

On a monthly rate, the ONS said CPI was
up 0.7 percent, higher than May's 0.6 percent, and way ahead of
analysts' expectations for a 0.4 percent increase.

Meanwhile the
core rate, which strips out energy, food, alcohol and tobacco prices,
was up an expected 1.6 percent over the year, against May's 1.5
percent. June's rate was the highest since August 2007, when it was 1.8
percent.

Adding more concern, the sentiment among German
financial analysts and institutional investors plummeted to its lowest
level on record in July on rising oil and consumer prices and concern
about the U.S. financial crisis.

According to a survey from the
Center for European Economic Research, or ZEW the economic expectations
index fell to -63.9 from -52.4 points in July - the lowest level since
records for the index began.

Looking ahead the markets will now
focus on the US producer price index for June as well as the retail
sales reports, which are scheduled for release in the New York morning.
Investors also look forward to the Fed Chairman Ben Bernanke's
testimony before the Senate Banking Committee later in the day to see
how he would refer to monetary policy and the U.S. economy. The Canada
will release its new motor vehicle sales figure, which will be followed
by the interest rate decision of Bank of Canada.
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Asian Markets Trades Lower As Wall Street Provides A Mixed Lead

16 Jul 2008 | 16:16




Asian Markets Trades Lower As Wall Street Provides A Mixed Lead


The
stock markets across the Asia-Pacific region have turned mostly
declined after seeing some strength in early trade following a sharp
pullback in crude oil prices. Wall Street provided a mixed lead, with
the Dow Jones Industrial Average slid 0.8% to 10,962.54 and the S&P
500 index lost 1.1% to 1,214.91, while the Nasdaq Composite added 0.1%
to 2,215.71.

Crude-oil prices tumbled $6.44 to $138.74 a barrel
yesterday on the New York Mercantile Exchange, suffering their biggest
daily drop in more than 17 years, as concerns that slowing economic
growth will dampen oil demand triggered a broad sell-off. The
front-month August contract was recently added as much as one cent at
$138.75 a barrel in electronic trading. In Asian deals Wednesday, crude
is currently adding 7 cents to $138.81 a barrel.

The region's
energy stocks dropped following an overnight drop in crude oil prices
however it helped the airline shares to climb up. The technology stocks
climbed on strong earnings from U.S. chipmaker Intel, but exporters
like Nintendo Co. were dragged down in Tokyo as the U.S. dollar fell
below the 105-yen level. In Asian currency trading, the U.S. dollar
bought 104.58 yen, compared with 105.16 yen late yesterday.

In
the currency market, the U.S. dollar traded in the upper 104-yen level
in early Tokyo deals, down from mid 105-yen levels late Tuesday. In
South Korea, the dollar opened lower at 1,007.0 won. The Australian
dollar opened higher at US$0.9790-0.9794 and the kiwi was firmer at
US$0.7715 in early local trade.

The Japanese market closed mixed
after posting losses for the previous three sessions. The market moved
sideways, as a better-than-expected earnings from semiconductor chip
giant Intel boosted some of the high-tech stocks, but lower crude
prices weighed on oil-related stocks and a stronger yen hurt some
exporters. The benchmark Nikkei 225 index closed up 0.05% at 12,760.80,
while the broader Topix index of all First Section issues on the Tokyo
Stock Exchange closed down 0.31% at 1,249.28.

On the economic
front, The Ministry of Economy, Trade and Industry said that its
tertiary industry index recorded first decline in three months due to
lower spending in the information/communications service and real
estate sectors. Services sector spending in Japan declined 0.2% in May
from its level in April and May 2007.

Meanwhile, Japanese
machine tool orders fell a revised 2.5% on year in June to 128.42
billion yen, according to data released by the Japan Machine Tool
Builders Association. However, the decline was better than the
preliminary estimate of a 2.7% loss in the month. Orders rose 1.4% in
May and 0.4% in April.

The Chinese market closed lower extending losses for a second straight trading session.

The
market sentiment was also impacted by a state media report that
domestic output expanded at a slower pace in the first six months and
the head of the United States central bank warned of increased risks to
the world's largest economy. The statistics bureau will release CPI and
PPI data for June and GDP data. The benchmark Shanghai Composite Index
closed down 2.65% at 2,705.87.

In Hong Kong, the Hang Seng Index
increased 0.2% to 21,223.50, while the Hang Seng China Enterprises
Index slipped 0.3% to 11,716.78.

The South Korean market closed
lower, after a volatile session, extending losses for a third straight
session. The benchmark Korea Composite Stock Price Index shed 0.13% to
end the session at 1,507.4 after gaining more than 1% in early trade.

On
the economic front, a government report showed that South Korea's major
discount outlets reported a drop in sales in June, while department
stores continued to post solid growth. The combined sales of the
nation's top three discount stores dipped 1.9% on year in June, mainly
due to lower than expected temperatures that reduced demand for air
conditioners and summer clothing, the Ministry of Knowledge Economy
said.

Meanwhile, South Korea's unemployment rate rose to 3.1%
last month from 3.0% in May, according to a report by the National
Statistical Office.

The Australian stock market closed higher
after two straight sessions of losses. After opening lower and trading
sideways in the morning session, the stocks saw some strength in the
afternoon session. While banking stocks gained on bargain hunting,
miners lost ground on lower commodity prices. The benchmark
S&P/ASX200 index closed up 1.1% at 4,870.6 and the broader All
Ordinaries index gained 0.8% to finish at 4,947.5.

On the
economic front, Australia's leading index posted slower growth in May,
according to the latest survey by Westpac Bank and the Melbourne
Institute. The group's leading index showed an annualized growth rate
of 2.1% for the leading index, lower than the 2.6% growth rate posted
in April. However, the coincident index, measuring the current state of
the economy, rose 0.2% in May. The annualized growth of the coincident
index slowed to 3.0% from 3.2% in April.

Reserve Bank of
Australia Governor Glenn Stevens said in Sydney that he did not expect
the country to face the same sort of economic challenges that now
plagued the United States and the U.K. Answering questions after a
speech to business economists, Stevens also said that interest rates
could come down before inflation came back within the central bank's
target band, just as it was often necessary to raise them before
inflation climbed above the band.

The New Zealand stock market
closed higher, reversing a two-day losing streak. After falling to a
new three-year low of 3,001 in early trade, the benchmark NZX 50 index
moved into positive territory in the afternoon session as bargain
hunting picked up momentum. The key index, which has lost about 16%
since the beginning of June, closed up 18.90 points or 0.62% at
3,059.36.

The Indian market is currently trading firm after
opening on a positive note. The rebound in Asian markets after the
initial slide and a sharp fall in the price of oil boosted sentiment.

After
opening with a positive gap of 65 points, the BSE Sensex closed in
negative territory closing at 12,575.80 a fall of 101 points or 0.8%.
Meanwhile, the S&P CNX Nifty was down by 44 points or 1.2%.

Thailand's
central bank raised its benchmark interest rate for the first time in
two years to combat the fastest inflation in a decade and said further
increases are possible. The Bank of Thailand increased its one-day bond
repurchase rate by a quarter percentage point to 3.50%. The Thai Set 50
Index dropped 4% closing at 469.63.

Elsewhere, Taiwan's Taiex
gave up 1.8% to 6,710.64, on top of a 4.5% tumble in the previous
session, on worries about slowing global economic growth. Singapore?s
Straits Times Index inched up 0.2% to 2,835.32.

Turning toward
European markets, edged higher with record production numbers helping
to lift Rio Tinto in a stronger mining sector, as investors took a
break from the heavy selling that has so far characterized this week's
action. In the opening trade, the U.K. FTSE 100 index climbed 0.4% to
5,194.20; the German DAX 30 index advanced 0.3% to 6,097.03 and the
French CAC-40 index ticked up 0.3% to 4,071.25.

On the economic
front, the day doesn?t belong to the region as hoards of negative
economic sentiments hits the sentiment hard. Starting from U.K?s, where
the claimant count jobless figure posted the biggest rise for almost 16
years in June, marking a significant deterioration in the labor market.

According
to data from the Office for National Statistics the claimant count rose
15,500, the biggest rise since it increased by 71,000 in December 1992.
May's gain in the claimant count was also revised up to 14,300 from
9,000.

The claimant count jobless rate for June was unchanged at
2.6% of the workforce after May's rate was revised up from 2.5%,
marking the first rise since September 2006.

The pound fell
after figures showed unemployment rose by more than expected in June
while wage inflation remained muted. At 8.33 GMT the pound was trading
at $2.0045, having been at $2.0091 shortly before the figures were
released. Meanwhile the euro climbed to 0.7953 pence having been at
0.7930 pence shortly before the figures came out.

Meanwhile,
the amount of people on employment both increased in the quarter to May
in the United Kingdom despite a strong increase in the claimant count
rate. From March to May, the ILO unemployment rate has declined to 5.2%
from the 5.3% in the three months to April. The number of employed
people increased by 12,000 persons on the mentioned period.

Continuing
the flow of negative sentiments, the annual rate of inflation in euro
zone rose further above the European Central Bank's comfort zone in
June, as energy and food prices continued to rise.

According to
the Eurostat consumer prices increased 0.4% in June from May, and were
up 4.0% from June 2007. In the 12 months to May, consumer prices rose
3.7%. The inflation rate's latest surge marks a new record high for the
measure, which is at its highest level since Eurostat began collecting
data in 1997.

The rise in prices was broad based, but led by a
2.5% increase in energy prices from May. Over the year, energy prices
were up 16%, a significant pick up from the 13.7% rise in the 12 months
to May. Food prices also rose again, although by a relatively modest
0.2% on the month. Over the year, however, they were up 6.4%, a
year-on-year rise that was unchanged from May.

But, prices of
other goods and services are also on the increase, with the annual
measure of core inflation - which excludes food, energy, alcohol and
tobacco - rising to 1.8% from 1.7% in May and 1.6% in April. Excluding
tobacco prices, the consumer price index rose 0.4% on the month and
4.0% on the year.

After all this, the European markets came back
in negatives. At 10.21 GMT the U.K. FTSE 100 index fall by 1.3% to
5,103.50; the German DAX 30 index fell by 1.1% to 6,015.13 and the
French CAC-40 index trickle down by 1% to 4,019.32.
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US Market registers strong gains

17 Jul 2008 | 09:12




US Market registers strong gains

The culprit of the previous two days, the financial sector, helped US
market register good gains today, Wednesday, 16 July, 2008. Turnaround
in the sector following a better than expected earning report from
Walls Fargo helped the sector register the largest one day gain in
almost nineteen years. Crude prices further dropping helped market
momentum improve a bit. Eight economic sectors finished with a gain.
Energy and utilities were the largest losers.

The indices
traded in the positive territory for the entire day. The market opened
on a modestly higher. After some early morning choppiness, the stock
market rallied to its session high as crude prices plunged. At the end,
The Dow Jones industrial Average ended the day with a gain of 276.74
points at 11,239.28. The Nasdaq Composite Index, finished higher by
69.14 points at 2,84.85. S&P 500 finished higher by 30.45 points at
1,245.36.

Wells Fargo today reported second quarter earnings
topping Wall Street's expectation. The company also raised its dividend
by 10%, indicating it is in a solid financial position despite the
current environment. The stock spiked 32% today.

On the
economic front, June inflation rose by a higher-than-expected amount
due to rising energy and food costs. Core inflation also was higher
than expectations due to larger increases in the indexes for shelter,
tobacco and smoking products, and the apparel index. Specifically, June
Consumer Price Index (CPI) rose 1.1% month-over-month, higher than the
expected increase of 0.7%. Core CPI, which excludes food and energy,
rose 0.3%, which was also higher than the consensus estimate of 0.2%.

The Labor Department also reported that Industrial production rebounded
to a 0.5% gain in June from the decline of 0.2% in May. The gain was in
part due to a 5.4% increase in the output of motor vehicles and parts
as activity resumed at plants that had been idled during the American
Axle strike. Separately, capacity utilization increased to 79.9% from
79.6%.

General Motors was one of the main Dow winners today
after being up more than 14% today. The company announced yesterday
morning a new restructuring plan to shore up capital through 2009. The
stock was also up on a better-than-expected earnings report and word
that Tracinda Corp had increased its stake in the automaker.

In
the technology front, the sector performed roughly in-line with the
market, unable to outperform despite Intel reporting earnings that
topped estimates.

Fed Chairman Bernanke today answered questions
from Housing Financial Services Committee members. He said that Fannie
Mae and Freddie Mac are adequately capitalized and in no danger of
failing. He went on to say that action by Congress is justifiable in
order to raise confidence.

Crude oil prices once again witnessed
a drop in prices for the second consecutive day today. Prices plunged
once again after government data showed a surprise increase in U.S.
petroleum inventories last week. Crude-oil futures for light sweet
crude for August delivery today closed at $134.6/barrel (lower by
$4.14/barrel or 3%) on the New York Mercantile Exchange. Earlier in the
day it fell to $132. Crude has lost $10.58 over the last two sessions,
the biggest two-day price drop since January, 1991.

EIA
reported today that U.S. crude inventories rose 3 million barrels to
stand at 296.9 million barrels in the week ended 11 July. Gains in U.S.
crude inventories got a helping hand from increased imports. Daily
crude imports averaged nearly 10.8 million barrels last week, up 1.2
million barrels from a week earlier. With the weekly gain of 3 million
barrels, U.S. crude inventories were still near the lower boundary of
the average range for this time of year.

At the currency
markets on Wednesday, the dollar reversed sharp losses taking support
from better-than-expected U.S. output data, strength on Wall Street and
sagging crude-oil futures. The dollar index which tracks the
performance of the greenback against a basket of other currencies, rose
0.3% to 71.98.

For tomorrow, Coca-Cola, Ford and JP Morgan
Chase and Nokia are some of the more widely-held companies scheduled to
announce their latest quarterly results tomorrow morning. Among
economic reports, housing starts for June and the weekly jobless claims
data are first on tomorrow's list of economic data. The Philadelphia
Fed Survey is due after the session opens.
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Asian Markets Rallied As Crude Oil Continues Its Retreat

17 Jul 2008 | 15:58




Asian Markets Rallied As Crude Oil Continues Its Retreat

The
Asian stock markets rallied on bargain hunting following positive
sentiments generated by Wall Street's biggest one-day gains since 1
April overnight and a steep fall in oil prices for a second day.
Financial stocks rebounded as credit worries eased, following
surprisingly strong results from the U.S. bank Wells Fargo. But the
resources sector was lower following weaker commodity prices. On the
Wall Street, the Dow jumped 2.52% to 11,239.28, the broader S&P 500
gained 2.51% to 1,245.36 and the Nasdaq surged 3.12% to 2,284.85.

Crude
oil prices fell $4.14 to settle at $134.60 a barrel on the New York
Mercantile Exchange after data released by the U.S. Energy Department
showed that domestic inventories of crude oil and gasoline rose last
week, rather than declining as analysts had expected. Crude oil is
currently down 41 cents at $134.19 a barrel in Asian trade Thursday.

On
the currency front, the U.S. dollar recovered to lower 105-yen range in
early Tokyo deals from lower 104-yen levels late Wednesday. In Asian
currency trading, the U.S. dollar bought 104.82 yen recently, compared
with 105.03 yen late in New York. In South Korea, the U.S. dollar
opened lower at 1,007.5 won compared to previous day's close of 1,009.3
won. The Australian dollar has opened weaker at US$0.9746-0.9749 and
the kiwi held on to its overnight gains and was buying US$0.7715 in
early local trade.

The Japanese market closed higher after a
mixed performance on yesterday. Wall Street's rally overnight following
a sharp decline in oil prices boosted market sentiment. However,
concerns over the dollar's weakness against the yen. The banking sector
rallied after the U.S. bank Wells Fargo reported better-than-expected
quarterly numbers, but oil-related stocks lost ground.The benchmark
Nikkei 225 index gained 1.0% to finish at 12,887.95. The broader Topix
index gained 1.15% at 1,263.65.

On the economic front, the
Finance ministry said that foreign residents were net sellers of
Japanese stocks last week. The dumped shares in favor of bonds.
Foreigners were net sellers of 242.4 billion yen worth of Japanese
stocks for the week ended July 12, the third week of net stock selling.
Meanwhile, foreigners were net purchasers of 528.2 billion yen in Japan
bonds and notes during the week, the second straight week of net
acquisition.

Meanwhile, a final report from the Japanese Cabinet
Office showed that the leading index stood at 92.9 in May, up from an
initial estimate of 92.6 and 92.8 recorded in April. The coincident
index also showed an improvement from its initial estimate. The index
recorded a reading of 103.3, an increase from 103 reported earlier. It
was also up from 101.7 registered in April. However, the lagging index
decreased to 103.4 from 103.7 seen in April.

China's Shanghai
Composite Index posted modest losses, lagging a sharp regional advance,
after data showed wholesale inflation and factory investment remain
elevated, likely leaving policy makers few options on a tightening bias.

The benchmark Shanghai Composite Index closed down 0.8% at 2,684.78 extending yesterday?s fall of 2.7%.

According
to the data released by the National Bureau of Statistics Bureau showed
producer prices rose a faster-than-expected 8.8% in June, up from 8.2%
in May. The pace of gains in consumer prices eased somewhat, with the
CPI rising 7.1% in June on year, down from a 7.7% in May and 8.5% in
April.

First-half gross domestic product climbed 10.4% from a
year earlier, easing from an 11.9% expansion in 2007. The consumer
price index rose 7.1% in June from a year earlier, easing from a 7.7%
rise in May and 8.5% in April.

In Hong Kong, the Hang Seng Index
increased 2.4% to 21,734.72, while the Hang Seng China Enterprises
Index zoomed up 2.9% to 12,056.56.

The Australian stock market
closed higher. The market started off on a firm note and extended its
gains for the second straight session after Wall Street rallied
overnight following a steep fall in crude oil prices for a second day.
The resources stocks fell on weak commodity prices. The benchmark
S&P/ASX 200 index closed up 0.6% at 4,901.0 and the broader All
Ordinaries index also gained 0.6% to finish at 4,991.4.

On the
economic front, Australia's international merchandise imports totaled
A$17.527 billion in June, down from a revised A$18.191 billion in May,
according to the Australian Bureau of Statistics. The bureau also said
preliminary analysis showed that goods imports on a balance of payments
basis fell by 2% in seasonally adjusted terms between May and June.

The
data, included in the Reserve Bank of Australia monthly bulletin,
showed that the central bank sold a net A$875 million in the spot
foreign exchange market in June. The central bank also bought a net
A$993 million from the government during the month. The Reserve Bank's
spot foreign exchange market transactions in May amounted to net sales
of A$336 million.

The South Korean market closed higher, ending
a three-day losing streak. However, the market came of the day's highs
amid caution ahead of the release of quarterly earnings by major U.S.
investment banks later in the day. The benchmark Korea Composite Stock
Price Index closed up 1.2% at 1,525.56, off a day's high of 1,546.84.
The key index rebounded following a nearly 4% decline over the previous
three days

On the economic front, Korea Automobile Importers and
Dealers Association said that sales of imported cars in South Korea
jumped 31.2% from a year earlier in the first half of this year,
despite weaker consumer sentiment.

The New Zealand market closed
higher extending yesterday's gains. The market started off on a firm
note as Wall Street's rally overnight, following a sharp decline in oil
prices for a second consecutive session, encouraged investors to look
for bargain buys. The benchmark NZX 50 index closed up 1.04% at
3,091.38, after adding 0.6% on Wednesday.

The Indian market is
trading firm after opening sharply higher in the morning. A sharp
plunge in the price of oil for a second day and positive global cues
triggered buying interest, but traders are expressing caution ahead of
the release of inflation data today.

After opening sharply
higher at 12,909, the BSE Sensex rose to an intra-day high of 13,099
within a few minutes. The Sensex pared its gains closing at 13,111.85,
up 536 points or 4.26% over the previous day's close. Meanwhile, the
S&P CNX Nifty is up 130 points or 3.42%.

Elsewhere, Taiwan's weighted index spiked 3.9% to 6,974.51, while Singapore's Straits Times Index added 1% to 2,864.10.

Turning
toward European markets, jumped higher with investors taking heart from
a continued retreat in oil prices and moving back into recently
battered sectors such as the banks. In the opening trade, the U.K. FTSE
100 index climbed 1.7% to 5,238.90, the German DAX 30 index rose 1.5%
to 6,245.20, and the French CAC-40 index advanced 1.6% to 4,178.23.

On
the economic front the day is scheduled to release construction output
for the Eurozone, which will be followed by ZEW economic survey for the
Switzerland. From US we have building permits, which will be followed
by the continuous and initial jobless claims. In the evening we have
housing starts accompanied by Philadelphia Fed?s manufacturing survey.
From Canada the Bank of Canada will release its monetary policy report,
which will be preceded by the data on the foreign investment in
Canadian securities.
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Another bright day at US Market

18 Jul 2008 | 09:05




Another bright day at US Market

Led by the financial sector once again, US market registered good gains
for the second consecutive day today, Thursday, 17 July, 2008.
Financial sector was once again in the good mood today following better
than expected earning reports from JP Morgan Chase and Blackrock. Crude
prices further dropping helped market momentum improve further.

The indices traded in the positive territory for the entire day. The
market opened considerably higher with the Dow trading 104 points up at
open. At the end, The Dow Jones industrial Average ended the day with a
gain of 207.38 points at 11,446.66. The Nasdaq Composite Index,
finished higher by 27.45 points at 2,312.3. S&P 500 finished higher
by 14.96 points at 1,260.32.

Twenty-four out of thirty Dow stocks ended in the green today led by Banc of America whose stock was up 17% today.

Dow components JPMorgan Chase, United Technologies and Coca-Cola ? all
reported better-than-expected earnings per share results. JP Morgan
reported that its revenue climbed nearly 9% year-over-year to $18.4
billion, topping the consensus estimate of $16.5 billion. A $1.2
billion increase in allowance for credit losses took its toll on
earnings. Shares of JPM jumped to their highest level in roughly one
month on the news as many investors returned to the financial sector.
But Coca Cola?s shares did not show any excitement despite the
company?s good results.

On the economic front, the Commerce
Department reported at Washington today that housing starts rose 9.1%
to a 1.066 million-unit annual pace from a revised rate of 977,000 in
May. Also, jobless claims for the week ending 12 July indicated an
increase of 18,000 to 366,000 and were below the consensus expectation
for 380,000 claims.

On the other hand, the Federal Reserve
Bank of Philadelphia said manufacturing in the Philadelphia region
weakened for the eighth month straight in July, defying the
expectations of economists, who had predicted a slight improvement.

In the technology front, Microsoft, IBM and Google were expected to report their earnings after the market closed.

Barring Tata Motors and MTNL, all other Indian ADRs ended in the green
today. ICICI Bank and HDFC Bank were the largest gainers with their
ADRs gaining 9% and 7% respectively.

Crude oil prices dropped
for third straight day today and with today?s fall crude gave up almost
$16 in three sessions. Prices plunged once again on economic worries
surrounding the US economy and also after government data yesterday
showed a surprise increase in U.S. petroleum inventories last week.
Crude-oil futures for light sweet crude for August delivery today
closed at $129.29 /barrel (lower by $5.3/barrel or 3.9%) on the New
York Mercantile Exchange. Earlier in the day it rose by $2.15 to
$136.75. It's now 12.2% lower than the $147.27 record high hit last
Thursday.

At the currency markets on Thursday, also weighing
on gold prices was a rebound in the U.S. currency. The dollar extended
gains against Japan's yen and the Swiss franc and reversed earlier
losses against most other rivals as stocks rallied and crude oil
futures continued to drop. The dollar index which measures the buck
against a trade-weighted basket of currencies, rose 0.3% to 72.28.

Volume on the New York Stock Exchange approached 2 billion, with
advancing stocks outrunning those declining nearly 3 to 1. On the
Nasdaq, nearly 1.1 billion shares traded, with advancers ahead of
declining stocks 2 to 1.

For tomorrow, Citigroup's second
quarter earning results will be the highlight. The market's reaction to
Citi's earnings will play a role in determining if the financial sector
will be able to hold its massive three day rally. Other than that,
Honeywell is another big name.
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Asian Markets Remain Mixed Ahead of Weekend

18 Jul 2008 | 15:33




Asian Markets Remain Mixed Ahead of Weekend


Asian
markets continued to swing between gains and losses as most of the
markets declined, erasing their early gains, as investors turned
cautious following disappointing U.S. quarterly reports by Merrill
Lynch & Co., Microsoft Corp. and Google Inc. If we glance through
the Asian region most of the markets reversed their early day
positions. Nikkei, Kospi ended lower losing yesterday?s gain while
Shanghai came back in positives.

Oil plunged for the third
straight session on Thursday and closed below $130 a barrel for the
first time in six weeks. Light sweet crude for August delivery closed
at $129.29, down $5.31, on the New York Mercantile Exchange. In Asian
trade Friday, crude is currently up 90 cents at $130.19 a barrel.

On
the currency front, the U.S. dollar gained overnight following a rally
in the equity markets and better-than-expected earnings reported by JP
Morgan. In early Tokyo deals, the U.S. dollar bought 106.16 yen,
compared with 105.23 yen late Thursday. The South Korean won opened
higher at 1,010.5 a dollar compared to previous day's close of 1,012.8
won. The Australian dollar opened weaker at US$0.9724-0.9730 and the
kiwi was trading weaker in early local deals at US$0.7609.

Coming
back in equity markets, the Japanese stock market closed lower, paring
early gains and reversing a two-day winning streak. The market started
off higher, tracking Wall Street's rally overnight, but changed
direction in the afternoon session as investors turned cautious ahead
of Citigroup's earnings announcement in the U.S. Investor sentiment was
also dented as U.S. firms Merrill Lynch, Microsoft and Google reported
disappointing quarterly results. A media report that the struggling
mortgages- giant Freddie Mac was considering a major stock sale added
to the negative sentiment.

The benchmark Nikkei 225 index closed down 0.7% at 12,803.70 and the broader Topix Index fell 0.9% to finish at 1,252.43.

The drop came ahead of an extended weekend, with Japanese markets closed for a holiday on Monday.

On
the economic front, minutes of the Bank of Japan's June meeting noted
policy makers as saying that slowing growth is more of a concern than
accelerating inflation. Japanese bonds rose for the first time in three
days following the release of the minutes.

Japan's nationwide
department store sales continued to decline for the fourth straight
month in June as households reduced their spending. According to data
released by the Japan Department Stores Association, sales declined
7.6% on year in June, significantly faster than a 2.7% fall seen in
May. The association said in its report that adverse weather conditions
hurt sales of summer-related products, especially clothing.

The
South Korean market also closed lower on disappointing quarterly
results reported by major U.S. companies like Merrill Lynch, Microsoft
and Google. The market had started off on a firm note after Wall Street
extended its rally amid better-than-expected results posted by JP
Morgan Chase and United Technologies and a continued drop in oil
prices, but pared early gains as selling intensified in the afternoon
session. The benchmark Kospi lost 1.02% to end at 1,509.99, reversing
yesterday's gains.

China's Shanghai Composite Index reversed yesterday?s losses put a gain on the bolt. ,

The benchmark Shanghai Composite Index climbed 3.5% reaching to 2,778.37 against yesterday?s fall of 0.8%.

In
Hong Kong, the Hang Seng Index increased 0.6% to 21,874.19, while the
Hang Seng China Enterprises Index zoomed up 0.6% to 12,123.88.

The
Australian stock market closed lower, ending a two-day winning streak.
The local market opened weak, despite a positive lead from Wall Street,
and extended losses as the resources sector fell on weaker commodity
prices and major U.S. companies like Merrill Lynch, Microsoft and
Google reported disappointing earnings after the markets closed in the
U.S.

The benchmark S&P/ASX 200 index closed down 1.2% at
4,840.4 and the broader All Ordinaries index lost 62.1 points or 1.2%
to finish at 4,915.3.

On the economic front, the Australian
Bureau of Statistics reported that the import price index rose just
1.4% in the June quarter after posting a 2.7% growth in the previous
quarter. In the year to June, import prices rose 3.5%.

Export
price index jumped 13.5% during the June quarter, due to a huge jump in
ore and coal prices, compared to the 3.5% growth recorded in the
previous quarter. In the year to June, export prices rose 13.3%.

The
New Zealand market closed higher for the third consecutive session,
tracking a positive lead form Wall Street and a sharp fall in oil
prices, and traded above the flat line for the entire session. The
benchmark NZX 50 index closed up 0.95% at 3,120.91 and the broader NZX
All Capital Index rose 23.99 points or 0.73% to finish at 3,165.61.

After
opening up sharply, the Indian market drifted down in early trading but
is currently trading in a positive territory. The market opened higher,
led by a sharp correction in crude oil yesterday. Soon, the market
pared gains, led by IT stocks and other index heavyweights as traders
expressed caution ahead of the government's trust vote scheduled early
next week.

In the afternoon trading the BSE Sensex was trading
at 13,625.28 up by 3.9% from yesterday?s closing while, the S&P CNX
Nifty index increased 3.7% reaching to 4,093.40.

On the economic
front, India inflation rose to 11.91% for the week ended on 5 July 2008
? slightly higher than the previous week?s 11.89% and became the
highest increase since 1995.

Elsewhere, Singapore's Straits Times Index lost 0.6% to 2,847.73, Taiwan's Weighted Index gave up 2.3% 6,815.32

In
other economic events, International Monetary Fund managing director
Dominique Strauss-Kahn said rising oil prices are making it more
difficult to reduce global current account imbalances. Surging oil
prices, in particular, are widening global imbalances and also
complicating the task of managing domestic inflation for several oil
exporters with less flexible exchange rates, he said in a response to
readers' questions on the International Herald Tribune website.

Strauss-Kahn
said a key priority must be to make sure that downside risks to growth
in the advanced economies are avoided, and that their growth is
restored to a trend pace.

Turning toward European markets,
jumped higher with investors taking heart from a continued retreat in
oil prices and moving back into recently battered sectors such as the
banks. In the opening trade, the U.K. FTSE 100 index fell 0.2% to
5,274.30, the German DAX 30 index was virtually flat at 6,273.24 and
the French CAC-40 index dropped 0.2% to 4,216.22.

On the
economic front, German producer prices surged 6.7% on the year in June,
posting their strongest annual rise since March 1982. Prices at
Germany's factory gates increased 0.9% from May. According to the
Federal Statistics Office the June data marks the sharpest annual rise
since March 1982, when German producer prices leapt 7.2%, the
statistics office said.

Surging energy prices were behind the
moves: heating oil prices surged almost 65% from June 2007, while
gasoline prices leapt 11% over that period, the data showed.
Electricity prices jumped 15.6% on the year in June.

Excluding
the sharp energy price increases, the index rose 0.3% on the month and
3.0% on the year, a spokeswoman at the statistics office said.

In
addition to this the euro-zone foreign trade balance swung to a deficit
in May from a surplus the previous month in a sign that the euro's
strength and weakening global demand are weighing on exports.

The
euro zone recorded a trade deficit of EUR4.6 billion with the rest of
the world in May. That compares with a revised EUR2.5 billion surplus
in April and surplus of EUR1.4 billion in May last year. April's
surplus was revised up from EUR2.3 billion-reported last month.

Non-seasonally
adjusted data showed euro-zone exports grew 4% on the year to EUR128.4
billion in May, but imports increased 9% to EUR133.0 billion. Over the
first five months of the year, exports rose 8% on the year, while
imports increased 11%, Eurostat said. The euro zone's internal trade
rose 3% on the year in May to EUR129.4 billion, Eurostat said.

In
UK the money supply growth accelerated in June. According to the
provisional release of money growth data for June showed M4 -- a broad
measure of money supply -- rose 2.0% on the month and 11.5% on the
year. Meanwhile, M4 lending was at 13.6 billion pounds in June from
11.3 billion in May.
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US Market tries to stabilize itself

21 Jul 2008 | 05:09




US Market tries to stabilize itself

US Market ended the week on Friday, 18 July with decent gains. Drop in
oil prices, the rally in the financial stocks, and better-than-feared
earnings news were the major reasons for this turnaround. Even on the
last day of the week, Friday, the earnings misses by two behemoth
companies weighed heavily on the tech sector but even so, the broader
market still eked out a slight gain.

The Dow Jones Industrial
Average gained 396 points for the week to end at 11,496.57. Tech -
heavy Nasdaq gained 43.7 points at 2,282.78. S&P 500 gained 21.19
points to end at 1,260.68. In percentage terms, Dow, S&P 500 and
Nasdaq gained 3.6%, 2% and 1.7% respectively.

The financial
sector which had came under severe pressure last week once again
resumed journey in a lackluster fashion during the beginning of the
week. In the first couple of days, the sector registered 5-6% declines
each day. But then it tried to make a decent comeback. The decline in
financial sector was due to a couple of reasons. First, it occurred to
many that IndyMac's failure was a hint of many more bank failures.
Secondly, it was the continued pressure on Freddie Mac and Fannie Mae.

Treasure Secretary Henry Paulson came out with a plan that intended to
shore up confidence in the idea that neither Fannie Mae nor Freddie Mac
would be allowed to fail. The three main tenets of the plan were - a
provision for a temporary increase in the line of credit the government
sponsored enterprises (GSEs) have with Treasury, temporary authority
for Treasury to purchase equity in either GSE and providing the Fed a
consultative role in the new GSE regulator's process for setting
capital requirements.

But the market did not pay much heed to the above following the result of Freddie's $3 billion sale in short-term notes.

On Tuesday, 15 July, Federal Reserve Chairman Ben Bernanke, in his
semi-annual monetary policy testimony said that the U.S. economy is
facing significant risks to growth. As per him, rising energy prices,
reduced access to credit and a further deepening in the U.S. housing
slump have created significant downside risks to the outlook for
growth. Bernanke also said that the weakening dollar has contributed to
the rise in crude prices. He said it is too difficult to assess how
much of an impact it has. Bernanke feels the trade deficit is largely
to blame for the dollar's decline.

Market registered significant
losses during the first couple of days. But the positive part was that
crude prices were cracking. After touching $146.37 at their high
Monday, 14 July, crude prices ended Tuesday's session at $138.74. The
slide, though, didn't end there. The selling persisted for the
remainder of the week, with prices settling at $134.60 on Wednesday,
$129.29 on Thursday and $128.96 on Friday. The latter price marked an
11% decline from the prior week's close.

But since Wednesday, 16
July, financial sector witnessed a good rally and surged 21% in the
last three days. Wells Fargo provided the spark that fueled the
monstrous rally. On Wednesday it delivered better-than-expected
earnings results. The momentum was carried on Thursday that was driven
by better-than-expected earnings news from JPMorgan Chase.

Among other earning reports, companies like United Technologies,
Honeywell, Johnson & Johnson, IBM all exceeded estimates, offering
an important reminder that the earnings environment outside the
financial sector isn't as bad as one might think. But disappointments
were provided by tech giants Google and Microsoft on Friday. The miss
weighed on the Nasdaq and the tech sector on Friday and the index ended
in the red on that day.

Citigroup reported a loss that was less
severe than feared. That was another reason for the financial sector to
cheer. The firm also announced more than $7 billion in write-downs,
though the extent of those adjustments was 40% less than the previous
quarter. That story helped to more than nullify the effect when Merrill
announced a steeper-than-expected loss for its most recent quarter.

In other economic news, June inflation rose by a higher-than-expected
amount due to rising energy and food costs. Core inflation also was
higher than expectations due to larger increases in the indexes for
shelter, tobacco and smoking products, and the apparel index.
Specifically, June Consumer Price Index (CPI) rose 1.1%
month-over-month, higher than the expected increase of 0.7%. Core CPI,
which excludes food and energy, rose 0.3%, which was also higher than
the consensus estimate of 0.2%.

The Labor Department also
reported that Industrial production rebounded to a 0.5% gain in June
from the decline of 0.2% in May. The gain was in part due to a 5.4%
increase in the output of motor vehicles and parts as activity resumed
at plants that had been idled during the American Axle strike.
Separately, capacity utilization increased to 79.9% from 79.6%.

Among interesting corporate news, Yahoo rejected a joint proposal from
Microsoft and Carl Icahn that called for a restructuring of Yahoo,
which would include Microsoft taking over Yahoo's search business.

In the M&A arena, Anheuser-Busch finally agreed to be bought by
InBev, after the Belgian company increased its offer to $70 per share,
or $52 billion, from $65 per share. Also, Waste Management offered to
acquire Republic Services for $34 per share in cash, or roughly $6.2
billion, a 22% premium over RSG's closing price.

Executive Summary

For the week, indices registered decent gains. In percentage terms, Dow
and Nasdaq gained 3.6% and 2% respectively. S&P 500 gained 1.7%.
Drop in oil prices, the rally in the financial stocks, and
better-than-feared earnings news were the major reasons for this
turnaround. The financial sector lost 12% in the first two days of the
week but gained 21% in the last three days.

For the year, Dow, Nasdaq and S&P 500 are down by 13.3%, 13.9% and 14.1% respectively.

The
coming week once again has a number of important companies to announce
their earnings. Other than that, behavior of oil prices and the
financial stocks will also play a role in driving the market.
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US Market posts slight losses

22 Jul 2008 | 08:52




US Market posts slight losses

US market registered little losses today, Monday, 21 July, 2008 after
crude prices climbed up again and Banc of America announced a
substantial drop in its profits but however topping Wall Street?s
estimates. Two pharmaceutical companies postponing their earning report
till market closes also took a bit of toll on the market sentiment.
Seven out of ten sectors ended in the red today led by consumer
discretionary. Energy sector was one of the top gainers.

After
a modest climb, The Dow Jones industrial Average ended the day with a
loss of 29.23 points at 11,467.34. The Nasdaq Composite Index, finished
lower by 3.25 points at 2,279.53. S&P 500 finished lower by 0.68
points at 1,260.

Twenty-one out of thirty Dow stocks ended in the red today led by Merck and American Express.

On the economic front, June leading indicators fell 0.1%, which was
in-line with expectations. The report had a limited impact on the stock
market.

Bank of America reported a 43% drop in earnings per
share to $0.72. However, the result easily topped Wall Street's
forecast due to a lower-than-expected write-down of $1.2 billion. The
stock closed higher by 4%.

Merck along with Schering-Plough
delayed releasing their second-quarter earnings until after the
market's close as Norwegian researchers said the study found a
cholesterol drug, Vytorin, marketed by the two companies to be
ineffective in curtailing a cardiac condition.

The healthcare
sector recently took a sharp slip into negative ground after
momentarily spiking upward into the green. The drop coincides with
negative news related to two marquee names in the pharmaceutical
industry.

Barring HDFC Bank, Rediff.com and Patni Computers, all
other Indian ADRs ended in the red today. Rediff.com was the largest
gainer with the ADR soaring more than 4%.

Crude oil prices
rose for the first time in five sessions today. Price spurred up as a
tropical storm, Dolly, entered the Gulf of Mexico, and Iran, the
world's fourth-biggest producer, resisted demands to suspend nuclear
research. Crude-oil futures for light sweet crude for August delivery
closed at $131.04 /barrel (higher by $2.16/barrel or 1.7%) on the New
York Mercantile Exchange. It was the first increase in five days.

A hurricane watch was issued for the Texas coastline from Brownsville
to Port O'Connor at morning time today by the Miami-based hurricane
center. Dolly moved over the Yucatan Peninsula earlier today. Petroleos
Mexicanos, Mexico's state oil company, produces about 1.07 million
barrels of oil a day in the Bay of Campeche, which is south of the
projected track of the storm. The northern Gulf of Mexico accounts for
about 25% of U.S. oil production.

Trading was relatively light,
with volume on the New York Stock Exchange passing 1.2 billion, and
advancing stocks outran those declining nearly 2 to 1. On the Nasdaq,
more than 753 million shares traded, and advancers beat decliners 5 to
4.

For tomorrow, Wachovia Bank, UPS, United Health, Caterpillar
and DuPont are some of the more widely-held companies scheduled to
announce their latest quarterly results Tuesday morning. There is no
market moving economic data due tomorrow. Treasury Secretary Henry
Paulson is scheduled to speak about the U.S. economy and markets before
the opening bell.
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Strong gains at US Market

23 Jul 2008 | 08:22




Strong gains at US Market

It was basically a day for earning reports today at US Market. A late
surge in the financial sector helped US market register strong gains
today, Tuesday, 22 July, 2008. Financial sector made a weak sector in
the morning after earnings misses from Wachovia and American Express.
But the sector turned around in the final hours of trading. Crude
prices dropping to lowest levels in six weeks also added further
momentum to this rally. Five out of ten sectors ended in the green
today led by financials. But the energy sector was the worst performing
sector.

The Dow Jones industrial Average ended the day with a
good gain of 135.16 points at 11,602.5. The Nasdaq Composite Index,
finished higher by 24.13 points at 2,303.96. S&P 500 finished
higher by 17 points at 1,277.

Twenty-one out of thirty Dow
stocks ended in the green today led by Banc of America, Caterpillar and
Du-Pont. Merck and American Express continued to be two laggards for
the second straight day.

Earlier in the day, Wachovia reported
a larger-than-expected loss of $8.9 billion. The stock fell at the open
but then recovered after investors were encouraged that the company
plans to raise $5 billion in capital using organic measures, instead of
a dilutive capital raise. The stock ended with a gain of 27%.

On the technology front, technology bellwether Apple fell almost 3%
today after the maker of personal computers and iPod music players
offered a weaker-than-expected outlook for its fourth quarter. Also,
Texas Instruments slid 15% after the company reported a 4% profit fall
and offered a disappointing third-quarter outlook.

Bank of
America stock once again closed 13% higher today after the company?s
the result easily topped Wall Street's forecast yesterday due to a
lower-than-expected write-down of $1.2 billion.

On the same front, American Express too disappointed with its earnings and outlook.

Also in the earnings arena, strong emerging market demand helped
Caterpillar increase earnings per share 40% year-over-year, topping
estimates. UPS reported in-line earnings, relieving investors. The
company called the economy bleak, but kept its full year earnings
forecast in-line with expectations.

In the healthcare sector,
Merck reported better-than-expected results for its latest quarter, but
continued concerns over its cholesterol drug Vytorin sent shares
tumbling. United Health reported a 23% drop in earnings per share, but
the results topped expectations.

All the Indian ADRs ended in
the green today. ICICI Bank and HDFC Bank were the largest gainers with
their ADRS soaring 13.1% and 9.9% respectively.

Crude-oil
touched a six-week low today on forecasts that the tropical storm,
Dolly, in the Gulf of Mexico will miss oil fields and refineries,
easing concern about supply disruptions. The rebounding dollar also led
further pressure on crude prices. Crude-oil futures for light sweet
crude for August delivery closed at $127.95/barrel (lower by
$3.09/barrel or 2.3%) on the New York Mercantile Exchange. It slipped
by 5.41% to $125.63 earlier during intra day trading. Crude for August
delivery expired today.

At the currency markets on Tuesday,
the dollar index rebounded after dropping 0.3% yesterday on speculation
borrowing costs may rise later this year. The dollar rose as much as
0.8% against a basket of six major currencies.

Volume on the
New York Stock Exchange neared 1.6 billion shares, and advancers topped
decliners more than 2 to 1. On the Nasdaq, more than 1 billion shares
traded, and advancing issues outpaced those declining, also more than 2
to 1.

For tomorrow, a host of widely-held companies are
scheduled to report their latest earnings results. AT&T, Boeing,
ConocoPhillips, Whirlpool, PepsiCo and GlaxoSmithKline are among the
many. No economic data are scheduled for release tomorrow.
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US Market registers modest gains

24 Jul 2008 | 09:21




US Market registers modest gains

US Market ended the day with decent gains today, Wednesday, 23 July,
2008. It was basically once again a day for earning reports once again
with 110 companies reporting earnings and four among them being Dow
components. In addition, the government announced its weekly energy
statistics and the Fed released its Beige book. Seven of the ten
economic sectors finished with gains. Telecom was the best performing
sector, helped by strength in AT&T. Energy was the worst performing
sector, faltering as crude prices slipped.

The Dow Jones
industrial Average ended the day with a decent gain of 30 points at
11,632.5. The Nasdaq Composite Index, finished higher by 21.9 points at
2,325.88. S&P 500 finished higher by 5.2 points at 1,282.19. The
Nasdaq outperformed its counterparts thanks to strength in large-cap
tech names.

Twenty-one out of thirty Dow stocks ended in the
green today led by AIG and Pfizer. Boeing and MC Donalds were two
laggards for the second straight day.

Earlier in the day,
there was some merger and acquisition. Property and casualty insurance
company Philadelphia Consolidated Holding (PHLY) entered a definitive
agreement to be acquired by Japan-based Tokio Marine Holdings for
$61.50 per share in cash. The offer represents a 73% premium to PHLY's
previous closing price.

Earnings continued to take the centre
stage throughout the day. Pfizer shares gained 3.9% after the world's
largest drug maker reported its second-quarter profit more than doubled.

Also in the earnings arena, AT&T rallied after reporting an 8.6%
rise in earnings per share, which met Wall Street's forecast. There
were some earnings misses as well. Boeing, E*Trade, Washington Mutual
and Yahoo! fell short of estimates. Washington Mutual reported a
larger-than-expected loss of $3.3 billion.

On a negative note,
Costco warned that its earnings per share for its latest quarter will
fall well below the current consensus estimate. Costco cited increased
inflation and especially energy costs.

The financial sector
continued to weigh on market earlier in the day due to the dismal
report from WaMu. But it managed to turn around later in the day on
news that lawmakers reached a deal on a housing bill that, among other
things, will allow for financial aid to Fannie Mae and Freddie Mac if
need be.

The Fed's Beige Book, a collection of anecdotal
economic information, revealed that the US economy has slowed somewhat
since the previous report, and that there were increased price
pressures. In addition, consumer spending was mixed, weak or slowing in
nearly all districts. The release prompted a short but sharp sell-off
in stocks.

All the Indian ADRs ended in the green today. ICICI
Bank and HDFC Bank were the largest gainers with their ADRS soaring
8.6% and 7% respectively.

The weekly inventory report by the
Energy Department and the rebounding dollar pressured crude prices for
the second consecutive day today. Prices also fell after concerns faded
that Hurricane Dolly would pose much of a threat to energy
infrastructure in the Gulf of Mexico. Crude-oil futures for light sweet
crude for September delivery closed at $124.44/barrel (lower by
$3.98/barrel or 3.1%) on the New York Mercantile Exchange. Prices gave
up more than $7 in the past two sessions.

EIA reported in its
weekly inventory report today that U.S. crude inventories fell less
than expected last week and fell 1.6 million in the week ended 18 July.
Market expected a figure around 2 million. At 295.3 million barrels,
U.S. crude-oil inventories are in the lower half of the average range
for this time of year.

Volume on the New York Stock Exchange
topped 1.7 billion shares, with advancers topping decliners nearly 5 to
3. On the Nasdaq, more than 1 billion shares traded, and advancers
outpaced declining stocks 4 to 3.

For tomorrow, earnings
season will continue to dominate. 3M, Bristol-Myers , Dow Chemical,
Ford and Union Pacific are among the more widely held companies due to
announce their latest results. Among economic repots, weekly jobless
claims are due before opening bell Thursday. Existing home sales for
June are due midmorning.
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US Market tries best to limit its own losses

28 Jul 2008 | 07:21




US Market tries best to limit its own losses

US Market ended the week on Friday, 25 July on a mixed note. Nasdaq was
the only index that managed to carve out some gains for the week. But
the other two major indices, S&P 500 and the Dow registered modest
losses. Drop in oil prices, ups and downs in the financial stocks and
better-than-feared earnings news once again dominated the week.

The Dow Jones Industrial Average lost 126 points for the week to end at
11,370.69. Tech - heavy Nasdaq gained 30.4 points at 2,310.5. S&P
500 lost 2.9 points to end at 1,257.76. In percentage terms, Nasdaq
gained 1.2%. Dow and S&P 500 lost 1.1% and 0.2% respectively.

Bank of America kicked off the reporting for the financial sector this
week. The company announced a substantial drop in its profits. Bank of
America reported a 43% drop in earnings per share to $0.72. However,
the result easily topped Wall Street's forecast due to a
lower-than-expected write-down of $1.2 billion. In contrast, Wachovia
declared a larger-than-expected loss of $8.9 billion.

After
rallying in the first two days of the week, the pullback in the
financials was a major drag on the broader market during the rest of
the period. A pickup in concerns about a global economic slowdown,
which were fed by weak data out of Europe, the hangover of major
earnings disappointments from American Express and Texas Instruments,
cautious guidance from Apple, and a horrendous earnings report from
Ford kept buying efforts in check.

Also in the earnings arena,
strong emerging market demand helped Caterpillar increase earnings per
share 40% year-over-year, topping estimates. UPS reported in-line
earnings, relieving investors. The company called the economy bleak,
but kept its full year earnings forecast in-line with expectations.

In the healthcare sector, Merck reported better-than-expected results
for its latest quarter, but continued concerns over its cholesterol
drug Vytorin sent shares tumbling. United Health reported a 23% drop in
earnings per share, but the results topped expectations.

AT&T shares rallied after reporting an 8.6% rise in earnings per
share, which met Wall Street's forecast. There were some earnings
misses as well. Boeing, E*Trade, Washington Mutual and Yahoo! fell
short of estimates. Washington Mutual reported a larger-than-expected
loss of $3.3 billion. 3M announced earnings that exceeded analysts'
expectations. Amazon.com announced that its second quarter revenue
surged 40% year-over-year to $4.1 billion which was better than
analysts forecast.

Weak housing data added further salt to
injury that the market had been bleeding with since the middle. On
Thursday, 24 July, the National Association of Realtors reported
existing home sales in June slipped to a 10-year low. A day later,
Commerce Department reported that new home sales, were reported to be
down 0.6% in June from an upwardly revised May number. Strikingly, June
new home sales at an annual rate of 530,000 units were right in line
with the 3-month average for the March to May period. Market was
expecting new home sales of 503,000 for June. Importantly, the data
suggested some signs of stabilization, though at depressed levels.

During the last day of the week, Friday, 25 July, traders lifted stocks
in early action after it was reported durable goods orders made a
surprising increase for June. The increase totaled 0.8%, which is
better than the prior increase of 0.1% and the 0.3% downturn that
economists forecast. Excluding transportation, orders increased 2.0%,
up from the 0.5% downturn in the prior month and above the 0.2%
downturn that was expected.

In other economic news, initial
jobless claims for the week ending 19 July was reported to have totaled
406,000, which is an increase of 34,000 from the prior week and 26,000
more than market expectations. That was the second time in four weeks
the claims number were reported above 400,000. This report also made
sentiment negative in the market.

Crude prices once again fell
on Friday, as investors continued to be worried about oil demand from
US in the long run. The rebounding dollar also added further impact to
the fall. With this, crude ended lower in the seven out of last nine
sessions. Crude-oil futures for light sweet crude for September
delivery closed at $123.26/barrel (lower by 2.23/barrel or 1.8%) on the
New York Mercantile Exchange. For the week, prices coughed up $6.5
(4.8%). It's now 16.3% lower than the $147.27 record high hit last on
Thursday, 10 July, 2008.

The coming week will bring another
heavy slate of earnings reports and a key batch of economic data,
including the advanced Q2 GDP report and the July employment report.
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Asian Market Rebound On Wall Street Advance, Weaker Crude Oil

30 Jul 2008 | 16:06




Asian Market Rebound On Wall Street Advance, Weaker Crude Oil


Asian
markets rebounded, with exporters and banks advanced on the back of
Wall Street gains overnight, while airline and automobile stocks across
the region climbed after a pullback in crude-oil prices.

Wall
Street's bounced back overnight on the back of upbeat U.S. consumer
confidence data and a drop in crude oil prices encouraged investors to
buy banking stocks, which were hit by credit concerns over the previous
few sessions. On Wall Street, the Dow Jones Industrial Average soared
2.4% to 11,397.56 and the Nasdaq Composite jumped 2.5% to 2,319.62,
while the S&P 500 index gained 2.3% to 1,263.19

A fall in
crude oil prices also contributed to the positive sentiment in the
market. Oil prices tumbled overnight to its lowest level in seven weeks
on stronger dollar and demand worries. Light, sweet crude for September
delivery fell $2.54 to settle at $122.19 a barrel on the New York
Mercantile Exchange. In late Asian session, oil is currently up 21
cents at $122.40 a barrel.

In the currency market, the dollar
traded in the upper 107-yen levels in late Tokyo deals, slightly weaker
compared to lower 108-yen levels in early trade, but firmer compared to
mid 107-yen levels late Tuesday. The dollar moved upward as U.S.
economic fears eased following Conference Board's upbeat consumer
confidence report for July. The U.S. dollar closed at 1,013.5 won, up
from Tuesday's close of 1,008.8 won. The Aussie was quoted at
US$0.9471-0.9473 in late local session, down 1.1% from Tuesday's late
quotes of US$0.99575-0.9577. The local unit hit a six-week low of
US$0.9466 during the session. The kiwi finished the local session at
US$0.7345-0.7355, down from Tuesday's late quotes of US$0.7551.

Coming
back in Asian equity market the Japanese stock market closed higher on
Wednesday, following positive earnings reported by local companies and
a weaker yen. The market started off higher as investor sentiment was
boosted by Wall Street's rally overnight on the back of a drop in crude
oil prices and an upbeat U.S. consumer confidence report.

The
benchmark Nikkei 225 index closed up 1.58% at 13,367 after plunging
1.5% on yesterday. The broader Topix index advanced 1.67% to finish at
1,281.64.

On the economic front, government data showed that
Japanese industrial output fell 2.0% on month in June, marking the
first drop in two months. Industrial output rose 2.8% on month in May
following a 0.2% slide in April, the Ministry of Economy, Trade and
Industry said. Additionally, manufacturers polled expect that their
output will fall 0.2% on month in July, and decrease 0.6% in August.

Meanwhile,
the Japan Automobile Manufacturers Association said that Japanese auto
production increased 4.5% in June from the previous year. In May,
vehicle production posted an annual growth of 6.8%. Automobile
production in June totaled 1.03 million units compared to 990,114 units
in the prior year. Meanwhile, domestic sales dropped 3.3% to 446,990
vehicles. During the first half of 2008, auto production showed 6%
growth on an annual basis. Production rose to 6.05 million units from
5.71 million units produced in the first half of 2007.

The
Chinese market closed lower, extending losses for a second day. Coal
producers lost ground on speculation that a decline in the price of
crude oil will reduce demand for the alternative fuel. The benchmark
Shanghai composite index closed down 0.48% at 2,836.66 after losing
1.8% on Tuesday.

In Hong Kong, the Hang Seng Index rose 1.9% to 22,690.60 and the Hang Seng China Enterprises Index jumped 2.6% to 12,469.10.

The
Australian stock market closed sharply higher, snapping a three-day
losing streak. The benchmark S&P/ASX 200 index closed up 1.8% at
4,936.70and the broader All Ordinaries index gained 1.7% to finish at
5,008.7.

On the economic front, new home approvals unexpectedly
fell in June on high interest rates and rising building costs. The
seasonally adjusted estimate for total dwelling units approved fell
0.7% in the previous month to 12,237 units, the Australian Bureau of
Statistics said, following a revised fall of 7.2% in May and was worse
than the expectations for a 1.0% increase. On an annual basis, building
permits were down 7.8% after a revised fall of 0.4% in May.

The
Australian dollar fell to a six-week low, hurt by speculation that
domestic interest rates could be cut as early as this year and by
softer commodity prices. Worse-than-expected home-building approvals
data also took the shine off the local currency.

The New
Zealand stock market closed higher, recouping yesterday's losses. The
benchmark NZX 50 Index closed up 1.62% at 3,287.76, while the NZX All
Capital Index rose 48.76 points or 1.46% to finish at 3,330.83.

On
the economic front, the Reserve Bank of New Zealand announced that M3,
the broadest measure of monetary aggregate, increased 7.4% year-on-year
in June, faster than the 5% rise reported in May. However, money supply
grew less than the 10.9% recorded in the corresponding period of prior
year. The money supply amounted to NZ$205.17 billion compared with
May's NZ$201.35 billion. Further, the central bank said that M3,
excluding funds from non-residents climbed 9.8%. At the same time, M3
excluding repurchase agreements moved up 7.8%, following a 5.7% rise in
the prior month.

In the currency market, The New Zealand dollar
fell to 10-month lows on the central bank governor's comments, at a
speech to a business group in Auckland, that there was plenty of room
for further interest rate cuts in the slowing economy. The kiwi
finished the local session at US$0.7345-0.7355, down from Tuesday's
late quotes of US$0.7551.

The South Korean market closed higher
on Wednesday, reversing Tuesday's steep losses. The market started off
on a firm note, tracking Wall Street's gains overnight following a drop
in crude oil prices and an upbeat consumer confidence report, but gave
up some ground during the afternoon session. The benchmark Kospi index
closed up 0.67% at 1,577.7 after hitting a high of 1,595.84 in opening
trade and a low of 1,572.17 in late trade.

On the economic
front, a government report showed that South Korea's software exports
jumped 23.5% to $1.66 billion in 2007 from $1.34 billion a year
earlier, bolstered by increased overseas sales of package software and
information technology services.

Elsewhere Singapore's Straits Times Index rose 1.35% to 2,925.50 while Taiwan Taiex gained 0.8% to 7,070.35.

In
India the markets opened in positive territory and continued to track
the recovery in other global markets. After opening with a positive gap
of 216 points, the BSE Sensex closed on firm note of 14,287.21 on
screen i.e. 3.6% up from yesterday closing.

In the other part
of the world, the European stocks traded higher as a flurry of earnings
from companies including the world's top steel maker, ArcelorMittal,
and engineering giant Siemens received a thumbs-up.

In the
opening trade the German DAX 30 rose 1.1% to 6,467.92, the French CAC
40 added 1.2% to 4,373.91 and the U.K. FTSE 100 rose 1.4% to 5,393.50.

On
the economic front, the European Commission said its euro zone economic
sentiment indicator for July sank to its lowest level since March 2003,
dropping 5.3 points to 89.5 from 94.8 in June, the largest
month-on-month decline since October 2001. The June sentiment indicator
was revised down from a provisional reading of 94.9.

Confidence
fell in all sectors, although the decline was particularly pronounced
in services and also worsened among consumers, the commission said. The
services confidence indicator fell to +1 from +9 in June, while the
consumer confidence indicator declined to -20 from -17. The industrial
confidence indicator fell to -8 in July from -5 a month earlier, retail
trade dropped to -9 from -4 in June and construction was down at -14
from -11.

In another data release, the Bloomberg retail PMI for
Euro zone for the month of July increased to 46 from the initial
reading of 44 while the reading from Germany showed an increase to 46.4
from 44.9 of June.

Meanwhile, in Italy the producer prices rose 0.8% in June from May and increased 8.2 percent year-on-year.

Looking
ahead the market will have its focus on Weekly Crude oil inventory data
released by the EIA of US, which will be preceded by ADP employment
change statistics and also by MBA mortgage application statistics. In
the late evening we have Gfk consumer confidence for UK for the month
of June.
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US Market rallies for second straight day

31 Jul 2008 | 09:17




US Market rallies for second straight day

US stocks rallied at Wall Street for the second consecutive day today,
Wednesday, 30 July, as investors focused on data that showed an
unexpected gain in nonfarm private payrolls. Also, a word that the Fed
is extending its liquidity measures to Wall Street helped in revoking
buying interest. Crude prices shooting up played no foul in today?s
rally. Nine of the ten sectors ended in the green today led by energy
sector. Healthcare sector was the sole exception.

The market
had opened sharply higher before slumping as the price of oil bounced
back following data that showed national inventories of gasoline fell
last week. The battered financial sector rallied back from earlier
weakness helping indices post good gains for the day. The Dow Jones
industrial Average ended the day with a gain of 186.13 points at
11,583.69. The Nasdaq Composite Index, finished higher by 10.10 points
at 2,329.27. S&P 500 finished higher by 21.06 points at 1,284.26.

Twenty six out of thirty Dow components ended in the green led by Chevron, Exxon Mobil, Alcoa and Walt Disney.

Broad-based buying was largely influenced today by the latest ADP
employment report that showed an unexpected 9,000 increase in July
private nonfarm jobs as against market?s expectation of a 60,000
decrease in jobs.

The stock market got an added boost today on
news that the Fed is extending the length of its Term Securities
Lending Facility program through 30 Jan 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. The Fed's latest move was spurred by continued fragile markets.

Earnings reports were mixed in nature today. While Corning, Garmin and
MetLife disappointed traders, ArcelorMittal and Comcast met
expectations.

Surprisingly, barring VSNl and MTNL, all the
Indian ADRs ended in the red today. Tata Motors and Patni Computers
were the largest losers shedding 4.9% and 4.7% respectively.

Crude prices registered sharp rise in prices today. Prices rose after
Energy Department?s weekly inventory report showed that last week
registered first drop in gasoline inventories in almost five weeks and
also showed a second weekly decline in the crude inventories. Crude-oil
futures for light sweet crude for September delivery closed at
$126.77/barrel (higher by 4.54/barrel or 3.6%) on the New York
Mercantile Exchange. Crude prices had registered drop in the past two
days and yesterday it fell by almost $3. Last week, prices coughed up
$6.5 (4.8%).

At the currency markets on Wednesday, the dollar
rose earlier in the day in foreign-exchange trading after data based on
a sampling of ADP payrolls indicated that July's private-sector
employment rose by 9,000. Including some 20,000 government workers
typically hired in a given month, the ADP index suggests U.S. nonfarm
payrolls rose by about 30,000. But the dollar index which tracks the
performance of the greenback against a basket of other currencies
pulled back a bit as oil prices gained more ground. The index was
settled at 73.29, compared with 73.285 in the previous day.

For tomorrow, along with bunch of earning reports, the spotlight will
focus on the advanced second quarter GDP report and the weekly jobless
claims data.
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Asian Markets Continues Upward Movement

31 Jul 2008 | 15:48




Asian Markets Continues Upward Movement


Asian
markets continued to register broad based upward movement as Wall
Street extended gains overnight on the back of positive private sector
employment data which encouraged the local buyers to look for bargain
buys. Meanwhile the crude oil showed an unexpected turn around as it
surged by about US$4.5 ending its two-week slide.

Yesterday on
Wall Street the Dow Jones Industrial Average jumped 186.13 points or
1.63% to finish at 11,583.69 and the broader S&P 500 index added
21.07 points or 1.67% to close at 1,284.26. The tech-heavy Nasdaq
composite advanced 10.10 points or 0.44% to end at 2,329.72.

Oil
prices shot up yesterday, ending a two-week slide, after a U.S.
government report showed a surprise drop in gasoline supplies. Light,
sweet crude for September delivery soared US$4.53 to US$126.72 a barrel
on the New York Mercantile Exchange. In today?s Asian session, oil was
down 7 cents at $126.70 a barrel.

In currency market, the U.S.
dollar held steady in the lower 108-yen range. In late Tokyo deals, the
dollar was quoted at 108.02-108.03 yen, up from Wednesday's close of
107.94-107.95 yen in Tokyo. The New Zealand dollar traded near 10-month
lows against the greenback on speculation that interest rates will be
cut further. The kiwi ended the session at US$0.7315 compared to
US$0.7345 late Wednesday.

The U.S. dollar closed at 1,012.1
won, down from 1,013.5 won late Wednesday. The South Korean currency
rose slightly on suspected intervention by as foreign exchange
authorities to the tune of $1 billion to prop up the local currency.
The Australian dollar fell to a six-week low after a government report
showed that retail sales dropped the most in six years in June. The
Aussie was at US$0.9453 in late local trade, after hitting a low of
US$0.9412, down from US$0.9471 late Wednesday.

Coming back in
equity markets, the Japanese stock market closed marginally higher,
extending gains for the second straight session. Though the market
started off higher, buoyed by gains on Wall Street overnight, it turned
choppy in the afternoon session and finished slightly above the flat
line. Investors turned cautious ahead of U.S. GDP numbers.

The
benchmark Nikkei 225 index closed up 9.02 points or 0.1% at 13,376.81,
while the broader Topix index of all the Tokyo Stock Exchange First
Section issues rose 0.63 point or 0.1% to end at 1,303.62.

On
the economic front, manufacturing activity in Japan recovered modestly
in July, but remained in a state of contraction. The Nomura/JMMA Japan
Purchasing Managers Index increased by 0.5 points to a seasonally
adjusted reading of 47.0 from the June level of 46.5. The June reading
was the lowest since February 2002. The survey found that manufacturing
activity continued to be negatively impacted by a slowing economy and
rising energy costs. The report's output index, which reflects
industrial production, fell to 44.2 from 44.4 in June.

Among
other data released today, Japanese housing starts declined 16.7% in
June from the previous year, after falling 6.5% in May and 8.7% in
April, according to the Ministry of Land, Infrastructure and Transport.
Economists had forecast a sharp fall of 17.8% for June. Construction
orders received by big 50 contractors dropped 11.7% versus May's 25.2%
decline. Meanwhile, Labor cash earnings unexpectedly fell by 0.6% on
year in June, according to the Ministry of Health, Labor and Welfare.
Analysts expected a 0.6% on year increase following a revised 0.8%
annual gain in May.

The Chinese market closed lower, extending
losses for a third day. The benchmark Shanghai composite index closed
down 2.15% at 2,775.72 after losing 0.5% on Wednesday.

On the
economic arena, China's retail sales hit 864.2 billion yuan (126.7
billion U.S. dollars) in June, showing a 10-year-high growth rate of 23
percent year-on-year, the National Bureau of Statistics said on
Wednesday. The growth rate was 7.0 percentage points higher than a year
earlier and 1.4 percentage points higher than in May. Adjusted for
inflation, the June growth rate was 14.8 percent, the bureau said.

Mr.
Zhuang Jian, senior economist with the Asian Development Bank PRC
Resident Mission, attributed the faster growth rate to several factors.
These included workers' expectations of rising incomes, more allowances
for low-income earners as a result of the new labor contract law and
efforts by local governments to raise welfare payments to the needy.
Retail sales stood at 5.1 trillion yuan nationwide during the first
half, up 21.4 percent, or 12.9 percent in real terms.

In Hong Kong, the Hang Seng Index rose 0.18% to 22,731.10 and the Hang Seng China Enterprises Index gained 0.3% to 12,506.74.

The
New Zealand market closed higher for the second straight session on
Thursday. Wall Street's extended gains overnight on the back of
positive private sector employment data encouraged local investors to
look for bargain buys. The benchmark NZX 50 index closed up 48.52
points or 1.48% at 3,336.28 and the broader NZX All Capital Index rose
48.68 points or 1.44% to finish at 3,379.50.

On the economic
front, the National Bank of New Zealand said that business confidence
in New Zealand fell to a reading of -43.2 in July, easing from -38.7 in
June.

The Australian stock market closed higher today, extending
gains for a second straight session. Wall Street's gains overnight on
positive private sector employment data encouraged local investors to
buy stocks. The resources stocks gained on higher prices overnight for
copper, nickel and oil. The benchmark S&P/ASX 200 index closed up
40.7 points or 0.8% at 4,977.4 and the broader All Ordinaries index
advanced 43.9 points or 0.9% to finish at 5,052.6.

On the
economic front, a report released by the Australian Bureau of
Statistics showed that Australia's balance of trade in goods and
services moved to a surplus in June. Trade surplus was A$411 million in
June compared to a deficit of A$253 million in May. Most economists
predicted a June deficit of A$100 million. Exports fell 0.6% from May
while imports were lower by 1.0%.

Meanwhile, retail sales in
Australia dropped 1.0% in June, compared to the previous month, to a
seasonally adjusted A$20.04 billion. For the second quarter, retail
sales were down 0.6% from the previous quarter against the forecasts
had called for a 0.1% decline.

The Reserve Bank of Australia
said in a report that credit extended to the private sector in
Australia increased by a seasonally adjusted 0.4% in June from the
month before. On year-over-year basis, private sector credit increased
11.7%.

The South Korean market closed higher Thursday, extending
gains for a second day, as Wall Street's gains overnight lifted
investor sentiment. However, oil's rebound following a surprise drop in
gasoline supplies in the U.S. and a slower growth in industrial output
limited the gains. The benchmark Korea Composite Stock Price Index
closed up 16.97 points 1.08% at 1,894.67 after rising as much as 1.23%
in the first few minutes of trading.

On the economic front,
South Korea's central bank said that manufacturing confidence for
August fell to an over three-year low as companies expected Asia's
fourth-largest economy to further lose steam in the second half. The
business survey index for manufacturers' expectations declined to 74
for August, compared to 77 a month earlier. The business outlook index
has fallen to its lowest level since February 2005.

Meanwhile,
National Statistical Office said that South Korea's industrial output
grew at a slower pace of 6.7% on year in June amid lingering concerns
over surging oil prices, sluggish domestic demand and a global slowdown.

Meanwhile
the Indian market was trading in a negative territory after opening
higher in the morning. The market opened higher but pared gains
immediately amid a lack of buying interest in index heavyweights. The
bounce back seen in the price of oil in New York trading on Wednesday
is keeping investor sentiment subdued. Trading remained volatile ahead
of the expiry of July derivative contracts today. The market mood is
cautious as traders await the wholesale inflation data, which is
scheduled after the close of the market today.

After trading in
a range of 14,360-14,166, the Sensex has recouped some of its losses
ending the session at 14,355, up 68 points or 0.48% over the previous
day's close.

In the other part of the world, Europe stocks
struggled to build on gains after some disappointing earnings from BT
Group and Unilever, though oil explorers rose as crude recovered to
$126 a barrel and as Royal Dutch Shell produced the highest-ever
quarterly earnings for a European oil producer.

In the opening
trade, the German DAX 30 rose slightly to 6,4562.54, the U.K. FTSE 100
fell 0.2% to 5,407.90 and the French CAC 40 fell slightly to 4,394.54.

On
the economic front the housing prices in U.K. were down 8.1% from
year-ago levels in July as the number of housing transactions dropped
to an all-time low amid tight credit conditions and economic worries.

According
to the survey conducted by mortgage lender Nationwide the house prices
in July fell 1.7% from the previous month, marking the ninth
consecutive monthly decline. The pace of the decline accelerated from a
0.8% monthly drop in June, which left prices 6.3% below year-ago
levels.

The average price stood at 169,316 pounds ($335,120) in
July, down from 172,415 pounds in June. The average price is down by
around 15,000 pounds since July 2007, falling to its lowest level since
August 2006. House prices remain around 11,000 pounds higher than three
years ago.

The drop in transactions echoes official data from
the Bank of England that showed mortgage approvals fell to just 36,000
in June.

In another release the Consumer inflation in the euro
zone accelerated at a record annual pace of 4.1% in July ? outstripping
central bank target. Annual inflation hit 4% in June, more than twice
the European Central Bank's annual target of near but just below 2%.

In
Germany, the wholesale sales in June were down 1.5% in real terms
compared with May, but rose 2.6% year-on-year, according to preliminary
figures from the Federal Statistics Office. In May, wholesale sales
fell 0.6 percent from April and rose 0.5 percent year-on-year.

Looking
ahead the market will shift its focus on some of the key economic of
the week scheduled to be released today. The key economic event for the
day is performance of US economy in second quarter analysed by the
Gross Domestic product. It will be accompanied by the data on jobless
claims. From euro zone we are left with unemployment figure for the
region. In the evening we have personal consumption expenditure for the
second quarter followed by the Chicago?s purchasing managers index for
July.
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