Friday, August 7, 2009

Trader's Highlight

DJI-NEW YORK, Aug 6 (Reuters) - Caution crept back into U.S. stock markets on Thursday a day ahead of the July unemployment report and as a cautious outlook from technology bellwether Cisco Systems cast a chill, but European shares rose on soothing earnings results.

A surprise move by the Bank of England to expand its bond buying program by 50 billion pounds, a measure known as quantitative easing, also supported European stocks, driving up financial shares.

The BoE's move, however, along with its decision to hold interest rates at a record low 0.50 percent pushed down sterling against the dollar by more than 1 percent.

The dollar also rose off multi-month lows against the euro after the European Central Bank left its record-low benchmark interest rate unchanged at 1.0 percent. The stronger dollar contributed to losses in U.S. crude oil after it topped $72 a barrel, a one-month high.

The Dow Jones industrial average <.DJI> fell 24.71 points, or 0.27 percent, to 9,256.26. The Standard & Poor's 500 Index <.SPX> lost 5.64 points, 0.56 percent, to 997.08. The Nasdaq Composite Index <.IXIC> dropped 19.89 points, or 1 percent, to 1,973.16.

NYMEX-NEW YORK, Aug 6 (Reuters) - U.S. crude oil futures ended lower in choppy late trading on Thursday, pressured by a
further decline on Wall Street and as the dollar strengthened on risk aversion.

On the New York Mercantile Exchange, September crude settled down 3 cents, or 0.04 percent, at $71.94 a barrel, trading from $71.18 to $72.42.

The June 30 and 2009 peak of $73.38 was the highest front-month price since crude hit $75.69 on Oct. 21.

CBOT-SOYBEANS
- August down 4-1/2 cents to $11.70-1/2 a bushel; November down 15 to $10.30.

Firmer dollar spurred profit-taking setback. Outlooks for record large U.S. soy crop and warmer weather this week to boost crop growth also weigh. Strong export demand underpins.

CBOT-SOYOIL - August down 0.69 cent to 36.83 cents per lb. Firm dollar and falling soybeans pressure.

FCPO-KUALA LUMPUR, Aug 6 (Reuters) - Malaysian palm oil futures edged lower on Thursday as weaker crude oil and equity markets stalled a rally driven by supply fears in the Southeast Asian country.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange settled down 10 ringgit to 2,325 ringgit ($666.6).

REGIONAL EQUITIES-BANGKOK, Aug 6 (Reuters) - Stock markets in Indonesia and Thailand rose more than 1 percent on Thursday, pushed up by demand for shares in coal miners, but Singapore inched down in late trade, weighed down by banking shares.

Singapore's index <.FTSTI> ended down 0.2 percent, erasing its early gain of almost 1 percent. Malaysia's index <.KLSE> was up 0.38 percent and Vietnam's <.VNI> edged up 0.03 percent, led by a 5 percent rise in electrical components maker REE .

In Kuala Lumpur, banking shares rose, with Malayan Banking up 1.5 percent and Bumiputra Commerce up 1.3 percent. Fitch Ratings said that, judging by simulated stress tests, Malaysian banks appeared to be sound, despite extremely difficult economic conditions.