02.07.2009 11:35

STOCKS: Wednesday’s review

Majors close
Nikkei -18.51 (-0.19%) 9939.93
FTSE +91.50 (+2.15%) 4340.71
DAX +96.80 (+2.01%) 4905.44
CAC +76.56 (+2.44%) 3217.00
Dow +57.06 (+0.68%) 8504.06
NASDAQ +10.68 (+0.58%) 1845.72
S&P +4.01 (+0.44%) 923.33
NYMEX Crude Oil -0.58 (-0.83%) $69.20

Japanese equities dropped after news of share issues by All Nippon Airways and Orix.

ANA, Japan’s second-biggest airline, said it planned to raise Y182.6bn ($1.9bn) to buy new aircraft. News of the issue sent the stock down as much as 7.4 before shares closed 5.9%.
Orix shares dropped as much as 7.1% before finishing down 4.8% on expectations that it was also preparing to tap the market through an equity offering.
The Bank of Japan Tankan survey showed that manufacturers’ sentiment in June improved less than economists had estimated.
Exporters declined after the report, in spite of the continued weakening of the yen. Toyota lost 1.1% while Sony fell 1.2%. Canon shed 1%.
Shinsei and Aozora announced merger terms, including setting a date for October 2010 and a 1:1 merger ratio. The deal is structured as a merger of equals with Shinsei becoming the surviving bank. Shinsei shares gained 1.3% while Aozora also gained 1.3%.

European stocks rose, extending the Dow Jones Stoxx 600 Index’s biggest quarterly gain this decade, after reports on manufacturing in China, Europe and the U.S. added to optimism the worst of the recession is over.

Carrefour SA increased 5.7% on speculation Chief Executive Officer Lars Olofsson’s plan to revamp stores and cut costs will reignite growth.
Commerzbank AG soared 19% after Morgan Stanley said an agreement by German politicians on a revised “bad bank” plan may boost the shares.
Vedanta Resources Plc led mining companies higher as copper extended its first-half gain.
Marks & Spencer Plc added 3.8% after the U.K.’s largest clothing retailer reported its smallest quarterly sales decline in almost two years as promotions and warmer weather boosted sales of summer fashions and food.
Metro AG, the biggest retailer in Germany, gained 6.2% after retail sales in Europe’s largest economy unexpectedly climbed for a third month in May.

Stocks on Wall Street climbed Wednesday, with investors starting off the third quarter on a positive note, after reports on manufacturing and housing added to bets that the pace of the recession is slowing.

Stocks ended an otherwise strong second quarter with losses Tuesday on a weaker-than-expected consumer confidence report and falling oil prices. But investors moved back into stocks Wednesday after manufacturing and housing reports showed the pace of the contraction in those sectors is easing.
Gains were broad based, with 24 of 30 Dow stocks rising, led by IBM, Coca-Cola, 3M and oil components Chevron and Exxon Mobil.
A variety of tech shares rallied, including Dow components Intel, Microsoft and Cisco Systems.
Economy: Manufacturing showed a small improvement in June. The Institute for Supply Management's manufacturing index improved to 44.8 from 42.8 in the previous month. Economists thought it would improve to 44.9.
Labor market: Employers in the private sector cut 473,000 jobs from their payrolls in June, according to a morning report from payroll services firm ADP. Economists thought 394,000 jobs would be cut.