Stocks: Monday’s review
04.12.2012, 07:44

Stocks: Monday’s review

 

 

Asian stocks swung between gains and losses as Chinese manufacturing data added to signs of recovery while U.S. lawmakers continue to debate over a budget compromise to avert a so-called fiscal cliff.

Nikkei 225 9,458.18 +12.17 +0.13%
S&P/ASX 200 4,531.51 +25.47 +0.57%
Shanghai Composite 1,959.77 -20.35 -1.03%
Metallurgical Corp. of China, an engineering contractor and equipment manufacturer, climbed 4.4 percent in Hong Kong.
Shimizu Corp., a construction company, advanced 4 percent in Tokyo on speculation a deadly highway-tunnel collapse will reduce opposition to more public works spending.
Li & Fung Ltd., a supplier of toys and clothing to retailers including Wal-Mart Stores Inc., slipped 3 percent.

European stocks pared their advance as a report showed U.S. manufacturing unexpectedly contracted, offsetting two measures of Chinese factory output that rose.
Cable & Wireless Communications Plc (CWC) jumped 4.2 percent after agreeing to sell its Monaco and Islands unit to Bahrain Telecommunications Co. for $680 million. Colruyt SA (COLR) slid 2 percent after first-half earnings before interest and taxes missed analysts’ estimates.
The Stoxx Europe 600 Index advanced 0.1 percent to 276.07 at 4:13 p.m. in London. The gauge earlier climbed as much as 0.8 percent after Greece offered to spend 10 billion euros ($13 billion) buying back bonds.
Chancellor Angela Merkel opened the possibility that Germany will ultimately accept a write-off of Greek debt.
Merkel told Bild newspaper yesterday that euro-area leaders might consider writing off debt once the country has a budget surplus. The chancellor had ruled out such a scenario as violating European (SXXP) Union treaties.
European equities will rally in 2013 with the Euro Stoxx 50 Index reaching 3,000, according to Bank of America Corp. The price-to-earnings ratio for the gauge of the 50 biggest stocks in the euro area will climb to 11.8 by the end of next year, strategist John Bilton wrote in a note. The companies were valued at 11.1 times estimated earnings on Nov. 30, according to data compiled by Bloomberg.
National benchmark indexes gained in 11 of the 18 western- European markets.
Greece’s ASE jumped 1.3 percent, as Piraeus Bank SA (TPEIR) soared 11 percent to 38.9 euro cents and National Bank of Greece SA (ETE), the country’s biggest lender, rose 3.8 percent to 1.37 euros.

Major U.S. stock indexes, despite the positive start, finished today's session in negative territory
The session indices grew by positive reports from China, where the index of business activity in the manufacturing sector from HSBC in the first in the last 12 months rose above $ 50, and in Europe, where the lower house of the German parliament overwhelmingly approved on Friday a program of financial aid to Greece and the latter announced plans to exchange their debt securities for bills EFSF.
However, the domestic news is not allowed to develop indices upward movement, or even to maintain their gains.
The manufacturing index of the Institute for Supply Management in November fell again below 50 points, which is the boundary between growth and decline of activity in the sector. In the last reporting month, the figure had fallen to the level of 49.5 points vs. 51.5 points and values ​​for October at 51.7 points. Thus the value of the index in November was the lowest since July 2009.
Pressure on the indices and lack of progress in negotiations to address the "fiscal cliff." Now there is not progress, but regression: before the representatives of the two parties for the constructive and hopes to reach a compromise, the Republicans now claim that "proposals Democrats can not be taken seriously."
DOW index components exhibit predominantly negative dynamics. More than the others fell in the share price E. I. du Pont de Nemours and Company (DD, -1.69%). The leaders are currently stocks Cisco Systems (CSCO, +0.95%).
At the same time, all but one sector of the S & P is in the red. More than other sectors of manufactured goods decreased (-0.7%). Growth shows only the health sector (+0.1%)
At the close:
Dow -59.44 12,966.14 -0.46%
Nasdaq -8.04 3,002.20 -0.27%
S & P -6.71 1,409.47 -0.47%

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