Stock market fixing:
Nikkei
-6.00 -0.04% 14,348.37
Topix +0.29 +0,02% 1,401.98
FTSE +67.30 +1.16% 5,861.90
DAX +66.28 +0.98% 6,796.16
CAC +28.59 +0.61% 4,686.33
Dow -108.78 -0.89%
12,160.30
NASDAQ -17.05 -0.69%
2,457.73
S&P -9.21
-0.68% 1,350.93
10yr Note -0.2000 -0.047%
4.225%
NYMEX Crude Oil -0.60
-0.45% 134.01
Gold +0.60 +0.07% 886.90
In Japan,
share markets were subdued. The yen strengthened, moving away from its weakest level in four months
of Y108.58 that was hit on Monday.
Steelmakers fell as two of the sector’s biggest
companies, Kobe Steel and JFE, were downgraded by Mizuho Securities. Kobe sank by 2.7% to Y327
and JFE fell by 1.0% to Y5,760.
Tokyo Electric, the country’s biggest power
producer, gained 1% as the cost of crude dropped, and the fall also helped
shipping lines. They were battered badly last week as the surge in crude raised
fears that demand for sea transport, especially of bulk goods, would fall.
Mitsui OSK rose by 2.5%, Kawasaki Kisen Kaisha gained 1.3% and Nippon Yusen KK
was up 0.9%.
European stocks rose to a one-week high after oil retreated, Goldman Sachs Group
Inc.'s profit topped analysts' estimates and investors increased bets the
Federal Reserve will keep borrowing costs on hold next week.
Ryanair Holdings Plc advanced as
crude fell for a third day. BNP Paribas SA rose to the highest in almost two
weeks after Goldman said gains in commodities, prime brokerage and asset management
offset fixed-income losses. Daimler AG climbed the most in three months after
the carmaker said it would buy back $9.3 billion of its shares.
BNP Paribas, France's
biggest bank by assets, added 2.7%. Societe Generale SA jumped 3.2%.
Goldman reported second-quarter
profit of $4.58 a share, more than the $3.42 estimate by analysts in a survey.
Royal Bank of Scotland Group Plc
rose after Dresdner Kleinwort upgraded shares of Britain's second biggest lender and
the Bank of England damped speculation it will increase rates. The stock
climbed 2.7%.
Dresdner Kleinwort raised its
recommendation on the stock to ``add,'' saying the company has ``dealt with''
its weakened capital base and is capable of withstanding a U.K. economic decline.
Stocks on Wall Street were volatile
Tuesday as investors welcomed Goldman Sachs' better-than-expected
earnings report, but remained wary amid mixed readings on the economy,
including a rise in a measure of wholesale inflation.
Goldman Sachs beats expectations.
The investment bank reported sales and earnings that fell from a year ago, but
topped estimates, showing that it continues to avoid the worst of the credit
market fallout. Goldman Sachs shares gained 1%.
However, other financial shares
weakened. American Express declined after brokerage Friedman Billings
reiterated its "underperform" rating, saying that it expects the
company to see more losses going forward due to the strapped consumer.
Best Buy tops forecasts. The
electronics retailer reported a lower quarterly profit that nonetheless topped
estimates. The company also reiterated its full-year sales and earnings
forecasts. Investors seemed to take a sell-the-news approach and sent Best Buy
stock more than 3% lower.
Wholesale prices rise. The May Producer Price Index (PPI), a measure of wholesale inflation,
rose 1.4% versus forecasts for a rise of 1%, reflecting the spike in food and
energy costs. PPI rose 0.2% in April. The so-called core PPI, which strips out
volatile food and energy prices, climbed 0.2%, as expected, after increasing
0.4% in the previous month.
Housing market continues to weaken. Housing starts and building permits both fell
in May, with starts missing forecasts and permits, a measure of builder
confidence, topping estimates. The number of single-family home starts fell to
a 17-year low.
Manufacturing activity weakens. Industrial production fell 0.2% in May,
according to a Federal Reserve report Tuesday morning that was worse than
expected. Capacity utilization also dipped modestly, to 79.4% from 79.6% in the
previous month.