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Market Update : 
Weak Bank Earnings and Oil Weigh on Markets
Author: 123jump.com Staff
123jump.com
Last Update: 4:58 PM EST January 16 2008


Economic assessment from twelve regions reported in the so called Beige Report suggested that economy continued to grow at a slower pace. Holiday sales in general were disappointing and demand for automobiles was weak. Nonfinancial sectors reported robust demand. Market averages rallied after the report but at close three popular averages fell. Ambac, the bond insurer, plunged 34% after it cut its dividend and revealed a plan to raise $1 billion.

 
[R]10:00PM Frankfurt, 4:00PM New York, 8:00AM next day Sydney[/R]

European Markets

In London FTSE 100 Index closed lower 82.70 or 1.37% to 5,942.90, in Paris CAC 40 Index decreased 25.43 or 0.48% to close at 5,225.39 and in Frankfurt DAX index declined 94.81 or 1.25% to close at 7,471.57. In Zurich trading SMI fell 126.40 or 1.59% to close at 7,847.52.

North American Markets indexes

Dow Jones Industrial Average lost 34.95 or 0.28% to a close of 12,501.11, S&P 500 closed down 7.75 or 0.56% to 1,373.20, and Nasdaq Composite Index traded down 23.00 or 0.95% to a close of 2,394.59.

In Toronto TSX Composite closed down 220.14 or 1.65% to close at 13,096.64.

Of the 30 stocks in Dow Jones Industrial Average, 17 closed higher, 13 closed lower, and none was unchanged.

Intel led the decliners in the index with a fall of 12% followed by losses in Microsoft of 3%, in Exxon Mobil of 1.9%, and in Citigroup of 1.4%.

JP Morgan Chase led the gainers in the index with a rise of 8.4% followed by increases in Home Depot of 5.5%, in American Express of 3.6%, in General Motors of 3.6%, and in Boeing of 3.54%.

Of the stocks in S&P 500, 333 closed higher, 163 fell, and 4 were unchanged.

One hundred thirty five stocks fell more than 3% and thirty stocks rose more than 3%.

Ambac Financial led the decliners in the index with a plunge of 34% followed by losses in MBIA of 13.3%, in Nvidia of 11%, in Intercontinental Exchange of 7.4%, and in Allegheny Tech of 7.2%.

CIT Group led the gainers in the index with a rise of 9.05% followed by gains in AMD of 9%, in Mattel of 8.9%, and in Pulte Homes of 8.8%.


South American Markets Indexes

In Latin Markets Peru led the decliners in the region with a loss of 5.36% followed by decreases in Colombia of 2.22%, in Mexico of 2.06%, in Venezuela of 2.01%, in Brazil of 1.9%, and in Chile of 2.62%.

Asian Markets


In Tokyo Nikkei 225 Index closed lower 468.12 or 3.35% to 13,504.51, in Hong Kong Hang Seng index decreased 1386.93 or 5.37% closed to 24,450.85, in Australia ASX 200 index lower 150.30 or 2.52% to close 5,809.70.

In South Korea Kospi Index decreased 41.98 or 2.40% to close at 1,704.97, in Thailand SET index closed lower 5.99 or 0.77% to 773.80, and Indonesia JSE Index edged decreased 137.72 or 5.04% to 2,592.31. Sensex index in India decreased 382.98 or 1.89% to 19,868.11.
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