Printable Page Headline News   Return to Menu - Page 1 2 3 5 6 7 8 13
World Stocks Drift Friday              10/21 05:48

   World stock markets drifted Friday as investors increasingly factored in a 
Fed rate hike soon, based on the brightening U.S. corporate and economic 

   HONG KONG (AP) --- World stock markets drifted Friday as investors 
increasingly factored in a Fed rate hike soon, based on the brightening U.S. 
corporate and economic outlook.

   KEEPING SCORE: European shares were slightly higher in early trading, with 
France's CAC 40 edging up less than 0.1 percent to 4,541.82 and Germany's DAX 
creeping 0.1 percent higher to 10,708.34. Britain's FTSE 100 also ticked 0.1 
percent higher to 7,030.78. U.S. stocks were poised to open lower, with Dow 
futures slipping 0.2 percent to 18,069.00 and broader S&P 500 futures dipping 
0.2 percent to 2,132.10.

   FED OUTLOOK: Investors are starting to factor in a higher chance of the Fed 
raising interest rates from the ultralow levels that have fueled a multiyear 
stock boom, given the latest corporate and economic data. Most U.S. companies 
have posted quarterly earnings that have beaten analysts' expectations. 
Meanwhile, weekly applications for jobless benefits remained near a 43-year low 
while home sales rose at their strongest pace since June, reports said Thursday.

   ANALYST INSIGHT: "While expectations for a December Fed rate hike are 
continuing to build, investment markets seem to be taking it a bit better than 
was the case in the run up to last December's eventual rate hike," Shane 
Oliver, head of investment strategy at AMP Capital, said in a report. He cited 
three differences from a year ago: a more positive global and U.S. growth 
outlook; U.S. earnings bottoming out rather than getting worse; and lower 
uncertainty over capital outflows from China and its yuan currency.

   ECB STIMULUS: At a news conference on Thursday, the head of the European 
Central Bank kept alive the possibility that it could extend its stimulus 
program beyond March, the earliest possible end date. Mario Draghi said a 
decision on the 1.7 trillion euro ($1.9 trillion) bond-buying program would not 
come until December, which was widely expected. But he added it's unlikely 
there would be an "abrupt end" to the program. That sent the euro lower.

   ASIA'S DAY: Japan's benchmark Nikkei 225 index lost 0.3 percent to end at 
17,184.59 and South Korea's Kospi lost 0.4 percent to 2,033.00. The Shanghai 
Composite Index in mainland China edged up 0.2 percent to 3,090.94 while 
Australia's S&P/ASX 200 lost 0.2 percent to 5,430.30. Benchmarks in Southeast 
Asia were mixed. Hong Kong's stock market was closed due to a typhoon.

   CURRENCIES: The dollar slipped to 103.82 yen from 104.08 on Thursday. The 
euro weakened to $1.0888 from $1.0927. The official exchange rate for the 
Chinese currency yuan fell to a six-year low against the dollar of 6.7558 yuan, 
as investors bet that an eventual interest rate hike in the U.S. will boost the 

   ENERGY: Oil prices stabilized. Benchmark U.S. crude gained 8 cents to $50.72 
a barrel in electronic trading on the New York Mercantile Exchange. The 
contract fell $1.17, or 2.3 percent, to close at $50.43 a barrel on Thursday. 
Brent crude, used to price international oils, gained 10 cents to $51.48 a 
barrel in London.


Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN