Currencies

Friday May 16, 06:12 AM
Thomson Financial Europe AM at a glance share guide: Shares up, oil mixed

LONDON (Thomson Financial) - U.S. SUMMARY: Shares rise, dollar mixed.

Index Change Percent change

*DJIA 12992.66 +94.28 +0.73

*Nasdaq (NASDAQ: news) 2533.73 +37.03 +1.48

*S&P 500 1423.57 +14.91 +1.06

Nymex crude

for June $124.12 -10 cents

10 year U.S.

treasury 3.82 percent

* Thursday's close

STOCKS: The stock market notched its second straight daily advance Thursday, with investors assuaged by a pullback in oil prices and some better-than-expected economic data.

Wall Street has been worried about cash-strapped consumers paring back their spending, so it was pleased that the energy markets gave up early gains that briefly drove crude oil above $125 a barrel.

In other positive signs, the Philadelphia Federal Reserve said regional manufacturing activity is contracting in May at a much slower pace than in April, while major companies including General Electric Co. and CBS Corp (NYSE: RBV - news) . were making deals.

BONDS: Treasury prices rose Thursday after government reports indicated the economy remains under pressure, lowering chances that the Federal Reserve will be able to raise interest rates in the near-term.

The benchmark 10-year Treasury note rose 26/32 to 100 14/32 and yielded 3.82 percent, down from 3.92 percent late Wednesday.

FOREX: The dollar was higher against the euro, but fell against the other major currencies late Thursday, tamped by weak American manufacturing and industrial output data.

The 15-nation euro edged lower to $1.5454 from 1.5461 late Wednesday, even as Germany, the euro zone's largest economy, saw its economy grow by 1.5 percent in the first quarter from the last three months of 2007, its quickest pace in more than a decade.

The British pound rose to $1.9451 from $1.9441, while the dollar slipped to 105.26 Japanese yen from 106.38 yen the day before.

OIL: In energy futures, oil jumped near a record earlier Thursday before ending slightly lower, a drop analysts attributed to the expiration of options and to a sharp drop in natural gas prices.

Contributing to the volatility, the June crude contract expires next week. Oil prices sometimes trade erratically as investors square positions ahead of a contract expiration.

Light (LIGT3.SA - news) , sweet crude for June delivery fell 10 cents to settle at $124.12 a barrel on the Nymex after rising as high as $126.64 earlier in the session.

METALS: Gold prices shot up Thursday after crude oil surged early in the day, an inflationary move that fed buying of precious metals as safe, alternative investments.

Gold for June delivery jumped $13.50 to settle at $880 an ounce on the New York Mercantile Exchange, after earlier rising as high as $888.50.

Other precious metals also rose Thursday. July silver added 7.2 cents to settle at $16.685 an ounce on the Nymex, while July copper gained 5.75 cents to settle at $3.7385 a pound.

EVENTS:

April new residential construction

May Conference Board consumer sentiment index

Abercrombie & Fitch Co. Q1 results. EPS forecast $0.65 versus $0.62

ASIA SUMMARY: Stocks higher; U.S. dollar mixed

Index Change Percent change

Nikkei 225 (news) 14,277.43 +25.69 +0.18 (0425 GMT)

S&P/ASX 200 5,964.50 +73.80 +1.25 (0426 GMT)

Straits Times (news) 3,231.89 +23.42 +0.70 (0206 GMT)

Hang Seng (news) 25,678.92 +165.21 +0.65 (0426 GMT)

Seoul Composite 1,887.98 +2.27 +0.12 (0427 GMT)

BSE Sensex 17,493.14 +139.60 +0.80 (0426 GMT)

usd-yen 104.78 +0.03 +0.03 (Intra (Milan: PIN.MI - news) -day)

10-year JGBs 1.67 percent -- -- (Intra-day)

Brent North Sea $123.36 +0.73 +0.59 (Intra-day)

crude for July

STOCKS: Asian stocks extended their gains, with Tokyo investors cheering stronger-than-expected economic growth and the

Sydney market lifted by BHP Billiton (LSE: BLT.L - news) 's record-breaking rally following a report that Chinese interests and a major Australian investment fund were teaming up to buy a 9 percent stake in the world's largest miner.

BONDS: Japanese government bond prices ended the morning session narrowly mixed amid persistent fears of inflation and

recent signs of cooling appetite for low-risk instruments.

FOREX: The U.S. dollar was mixed against major currencies in midmorning Sydney trade, after making gains overnight against the euro on growing optimism that the U.S. economy will avoid recession.

OIL: World (WRGR.TA - news) oil prices were higher in Asian trade Friday, on tight global supplies and continued buying into the commodity which has yielded returns than bonds and equities.

METALS: Gold rose midafternoon Thursday, buoyed by a sharp rise in oil prices that fuelled buying of the precious metal as a hedge against inflation. Other precious metals were mixed. Base metals were higher midday on Thursday, in line with other commodities such as gold and oil, as the market took support from a weaker dollar.

EVENTS:

Japan revised May industrial output

Japan April consumer confidence survey

India's wholesale price index for week to May 3

Pacific Group AGM

Singapore April non-oil domestic exports

EUROPE SUMMARY: London shares close up; oil higher

Index Change Percent change

*FTSE 6251.82 +35.83 +0.57

*DAX (Xetra: news) 7081.05 -2.19 -0.03

*CAC 5057.51 +2.27 +0.04

pound-dollar 1.9436 +0.0013

euro-dollar 1.5497 +0.0057

Brent

crude(June) $122.77 +91 cents (1515 GMT)

*Thursday's close

STOCKS: Leading shares closed moderately higher, bolstered by a flurry of pleasing earnings reports, which helped to offset

declines in the banking sector following Barclays (LSE: BARC.L - news) ' update, while Wall Street struggled to get off the ground.

Meanwhile, British Airways Plc. should hit its earnings margin target when it announces full year results Friday, although it may disappoint investors by failing to pay a dividend.

FOREX: The euro remained steady, but just off earlier highs, against the U.S. dollar after inflation in the 15-nation single currency zone came in as expected and growth was in line with the more optimistic forecasts garnered by strong German economic news.

BONDS: European bonds came off lows, tracking the slightly better performance of their U.S. counterparts, following a raft of weak data from the world's largest economy.

In the United Kingdom, gilts almost entirely erased earlier losses to outperform their European counterparts, following a strong response to morning's gilt auction.

OIL: Oil was higher late afternoon amid U.S. dollar weakness, with a firm market for distillates such as diesel and heating oil

helping to lift crude prices.

METALS: Gold rose mid-afternoon, buoyed by a sharp rise in oil prices that fuelled buying of the precious metal as a hedge against inflation. At 1335 GMT, spot gold was trading at $880.85 per oz against $866.50.

Among other precious metals, platinum hit choppy waters, falling to below $2,000 per oz on profit taking before rallying in later trade in line with gold. The white metal rose to $2,069 per oz from $2,031, having earlier touched a low of $1,988, while sister metal palladium was trading at $431 per oz against $432.

Silver was higher, in line with gold, at $16.85 per ounce against $16.57.

EVENTS:

UNITED KINGDOM

INTERIMS

Holidaybreak (LSE: HBR.L - news)

FINALS

British Airways (LSE: BAY.L - news)

Freedom4 Communications

AGMs

Charter

Computacenter (LSE: CCC.L - news)

Foseco