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PARIS May 29 (Reuters) - European stocks ended higher on Tuesday, hitting a one-week closing high, boosted by talk of further steps by the European Central Bank to support the region's banks as well as by hopes of fresh measures from China to cushion a slowdown in growth.
The FTSEurofirst 300 index of top European shares unofficially closed 0.8 percent higher at 991.39 points, adding to a tentative recovery rally started last week.
Spain's IBEX index lost 2.3 percent but managed to end the session off a nine-year low hit during the day, helped by speculation that the ECB could soon unveil measures to help the euro zone's ailing banks.
"The rumour mill has been busy, with talk of an ECB press conference about bank recapitalisation, supporting the euro and giving euro zone stocks upside momentum. We do not believe in it, for the record," said Saxo Bank Chief Economist Steen Jakobsen, in Copenhagen.
"Spain is now the main focus, it's on the brink of collapse. Just look at 10-year bond yields...for now, I still think the stock market's low will come in July or August, with some 'hope rallies' in between."
Mining stocks were among the top gainers on Tuesday, with Rio Tinto up 2.4 percent and Xstrata up 2.3 percent. (Reporting by Blaise Robinson; editing by Simon Jessop)
STOCKS NEWS EUROPE-UBS sees value in stake sales by Spain's banks - Reuters UK
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Emerging Stocks Jump Most in Two Months as China Boosts Demand - Bloomberg
Emerging-market stocks rose the most in two months as speculation China may take more steps to boost economic growth increased demand for riskier assets.
The MSCI Emerging Markets Index (MXEF) added 1.5 percent to 923.31 as of 10:43 a.m. in New York, the biggest intraday gain since March 13. The gauge rose for a fourth day, bound for the longest winning streak this month, as Skyworth Digital Holdings Ltd. (751) surged 11 percent in Hong Kong. Russia’s Micex Index rose the most since February with OAO Lukoil gaining 3.3 percent. Brazil’s benchmark Bovespa gained for a third day.
China’s finance ministry said the promotion of energy efficient flat-panel televisions and energy-saving air conditioning is projected to stimulate consumption of more than 135 billion yuan ($21.3 billion), according to a statement from the ministry yesterday. Consumer confidence in the world’s biggest economy unexpectedly decreased in May to a four-month low while U.S. home prices in the 12 months through March fell at the slowest pace in more than a year.
“China’s stimulus is a supporting factor for commodity producers in the emerging markets,” Nick Chamie, head of global foreign-exchange strategy at Royal Bank of Canada, said in a telephone interview from Toronto today. “These announcements are getting the market excited.”
The MSCI gauge of 21 developing nations, up 0.7 percent this year, trades at 9.9 times estimated earnings, compared with 11.8 for the MSCI World Index of advanced nations, which has added 1.7 percent in 2012.
Greece Pressure
The S&P/Case-Shiller index of property values fell 2.6 percent from a year earlier after a 3.5 percent drop in February, data showed today in New York. The decline matched the median forecast of economists surveyed by Bloomberg News.
A confidence index among U.S. consumers decreased to 64.9 from a revised 68.7 in the prior month, figures from the New York-based Conference Board showed today.
As European leaders pressure Greece to meet bailout terms before elections next month, concern is growing that Spanish lenders will need more financial support to weather the crisis.
Brazil’s Bovespa added 0.2 percent in Sao Paulo as Gol Linhas Aereas Inteligentes SA advanced 3 percent, the most since May 7.
Russia’s benchmark gauge jumped 2.8 percent, the most in three months. OAO Lukoil, Russia’s second-biggest oil producer, added 3.6 percent, the most since Feb. 24, on plans to list more than $1 billion of its existing shares in Hong Kong.
Hong Kong Listing
The company may hire China International Capital Corp. and Renaissance Capital for a Hong Kong listing within a year, Deputy Chief Executive Officer Leonid Fedun told reporters in Hong Kong today. The oil producer may later gain access to the Shanghai Stock Exchange (510230), subject to permission from the Chinese government, he said.
Akbank TAS (AKBNK), Turkey’s second-largest listed lender, snapped six days of losses in Istanbul, advancing 3.4 percent after MSCI said it was increasing the company’s weighting in its Global Standard Indices to 0.45 from 0.3.
The WIG20 Index (WIG20) added 1.5 percent in Warsaw and the BUX Index (BUX) rose 0.5 percent in Hungary.
The rand appreciated 0.4 percent against the dollar and the ruble weakened by 0.2 percent. India’s rupee weakened 0.9 percent, depreciating for the first time in four days on speculation importers stepped up purchases of the dollar to pay month-end bills.
Chinese Stocks Surge
The Hang Seng China Enterprises Index (HSCEI) of Chinese companies listed in Hong Kong climbed 2.2 percent. Skyworth Digital Holdings, a maker of televisions, surged 11 percent.
Taiwan’s Taiex (TWSE) Index rose the most in five months after the official Central News Agency reported the ruling Kuomintang party is drafting rules which may allow investors to pay less tax on stock market gains.
The Taiex jumped 2.9 percent, the most among Asian benchmark indexes, and the biggest advance since Dec. 21. Hon Hai Precision Industry Co. (2317) climbed 4.8 percent.
The Philippine Stock Exchange Index (PCOMP) rose 1.4 percent to the highest close since May 14 after Moody’s Investors Service raised the nation’s sovereign rating outlook to positive from stable, citing the country’s improving debt levels. The nation’s long-term foreign-currency Ba2 rating is two levels below investment grade.
The extra yield investors demand to own emerging-market debt over U.S. Treasuries fell two basis points, or 0.02 percentage point, to 408, according to JPMorgan Chase & Co.’s EMBI Global Index.
To contact the reporters on this story: Christine Harvey in New York at charvey32@bloomberg.net; Jason Webb in London at jwebb25@bloomberg.net
To contact the editors responsible for this story: Gavin Serkin at gserkin@bloomberg.net; Tal Barak Harif at tbarak@bloomberg.net
US STOCKS-Wall St up as Greek pro-bailout parties gain support - Reuters
* Greek opinion polls lift mood on Wall St
* U.S. consumer confidence read below expectations
* Facebook shares hit new low
* Vertex Pharma plunges after data correction
* Indexes up: Dow 0.8 pct, S&P 0.7 pct, Nasdaq 0.7 pct
NEW YORK, May 29 (Reuters) - Wall Street advanced on Tuesday, with equities again taking their cue from overseas markets as Greek election polls pointed to support for pro-bailout parties, overshadowing a weak read on U.S. consumer confidence.
Facebook Inc shares continued to fall, contributing to weakness in the tech-heavy Nasdaq Composite Index. They hit a new low of $30.02, dropping about 6 percent on talk it was in discussions to buy Oslo-based Opera Software, while analysts said competition from Google Inc and others could push the price tag of any deal above $1 billion.
Weekend polls in Greece showed the conservative New Democracy party, which backs the country's international bailout, has a lead over the leftist SYRIZA party, which opposes it ahead of a June 17 election. Opposition to the bailout has raised the specter of Greece leaving the euro zone, a prospect that has weighed on stocks in recent weeks.
In Ireland, voters appear poised to reluctantly approve the EU fiscal treaty on Thursday.
"Any event that helps eliminate uncertainty in Europe is a good thing. The election (polling) suggests that Greece will toe the line" necessary for the bailout, said Jon Merriman, chief executive officer at investment firm Merriman Holdings Inc in San Francisco.
Investors were also looking to possible new stimulus from China. The Shanghai Securities News, citing unnamed sources, reported that China's biggest banks appeared to have accelerated lending toward the end of this month as Beijing starts to fast-track its approval of infrastructure investments in an effort to stem sagging growth.
The Dow Jones industrial average was up 100.47 points, or 0.81 percent, at 12,555.30. The Standard & Poor's 500 Index was up 9.80 points, or 0.74 percent, at 1,327.62. The Nasdaq Composite Index was up 21.05 points, or 0.74 percent, at 2,858.58.
Investors shrugged off a private sector report which showed U.S. consumer confidence unexpectedly cooled in May, falling to the lowest level in four months as Americans became more pessimistic about the job market and economic outlook. The report is one of the first in an abbreviated week heavy on economic data, culminating in Friday's payrolls report.
U.S. markets were closed on Monday for the Memorial Day holiday.
Concern about Spain's banking system continued to be monitored as yields on 10-year Spanish bonds remained just under 6.5 percent. Many investors view the 7-percent mark as unsustainable, which could trigger the need for a bailout.
The S&P/Case Shiller composite index of U.S. single-family home prices edged 0.1 percent higher in 20 metropolitan areas in March on a seasonally adjusted basis, falling short of economists' forecasts for a gain of 0.2 percent. However, it was the second consecutive month of gains which could indicate stabilization in the housing market.
Vertex Pharmaceuticals Inc plunged 15 percent to $55 as the biggest drag on the Nasdaq 100 index after the drugmaker released corrected data involving its cystic fibrosis treatments on Tuesday that lowered the number of patients who showed certain levels of improved lung function.
Defense equipment manufacturer Teledyne Technologies Inc said it would buy LeCroy Corp for $240.5 million in cash to add more products to its portfolio. LeCroy shares surged 55 percent to $14.18 while Teledyne advanced 0.7 percent to $60.23.
Asian Stocks, Oil Rise on China Stimulus; Bond Risk Gains - Businessweek
U.S. stocks rose, adding to last week’s rally, amid speculation Greece will stay in the euro after polls showed voters supporting politicians who back the nation’s bailout. Commodities erased earlier gains while Treasuries advanced.
The Standard & Poor’s 500 Index added 0.5 percent at 12:24 p.m. in New York, paring a rally of as much as 1.3 percent. The Stoxx Europe 600 Index (SXXP) climbed 0.8 percent. The MSCI Emerging Markets Index jumped 1.1 percent. The Dollar Index, a gauge of the currency against six major peers, added 0.2 percent as the euro weakened 0.6 percent to an almost two-year low of $1.2471. Ten-year Treasury yields fell three basis point to 1.71 percent. The S&P GSCI Index of commodities fell 0.6 percent.
U.S. equities gained after Greece’s New Democracy party placed first in all six opinion polls published on May 26 as campaigning continued for the general election on June 17. U.S. markets were closed yesterday for the Memorial Day holiday. Home values in 20 U.S. cities fell in the 12 months ended March at the slowest pace in more than a year, a report showed today, while the Conference Board’s gauge of consumer confidence unexpectedly dropped.
“There’s also a bit of relief that we won’t have any imminent kicking-out or defaulting of Greece,” Brad Sorensen, director of market and sector analysis at San Francisco-based Charles Schwab Corp., said in a phone interview. His firm has $1.83 trillion in client assets. “We’re definitely seeing signs of stabilization on the housing front. The economy is looking decent. Relatively speaking, the U.S. is a good place to be.”
Stocks also rose amid speculation China will do more to stimulate its economy. The nation has no plans to introduce measures on the scale deployed during the global financial crisis, the official Xinhua News Agency reported.
“The Chinese government’s intention is very clear: It will not roll out another massive stimulus plan to seek high economic growth,” Xinhua said today in the seventh paragraph of a Chinese-language article on economic policy, without attributing the information. “The current efforts for stabilizing growth will not repeat the old way of three years ago.”
The S&P 500 increased for the fifth time in six trading sessions. The index on May 25 capped its first weekly rally since April as investors were lured by the cheapest valuations since November.
Rebound After Slump
Equities rose after a three-week, 7.7 percent decline pushed the S&P 500’s price-to-earnings ratio to 13.1 on May 18, below the average of 16.4 since 1954, according to data compiled by Bloomberg. The benchmark gauge started today’s session down 5.7 percent in May, heading for its biggest monthly retreat since September, amid concern global economic growth is slowing and Greece may leave the euro area.
Indexes of commodity and technology companies led gains among all 10 of the main industries in the S&P 500 today, rising at least 0.8 percent. Caterpillar Inc., United Technologies Corp. and Bank of America Corp. rose at least 2 percent for the biggest gains in the Dow Jones Industrial Average.
Facebook Inc. shares fell to a new low, extending losses from the worst-performing large initial public offering during the past decade to more than 20 percent. The stock fell 7.4 percent to $29.55. Facebook options trading began today, with volume for puts exceeding calls by 1.3-to-1, data compiled by Bloomberg show. More than 87,000 puts giving the right to sell traded. June $30 puts were the most-active contracts, with volume at 14,998. They were followed by June $34 calls and June $32 calls.
The S&P/Case-Shiller index of property values fell 2.6 percent from a year earlier after a 3.5 percent drop in February, the group reported today in New York. The decline matched the median forecast of economists surveyed by Bloomberg News.
The Conference Board’s consumer confidence index decreased to 64.9 this month from 68.7. Economists forecast an increase to 69.6, according to the median estimate in a Bloomberg survey.
European Shares
Three stocks rose for every one that fell in the Stoxx 600. CGGVeritas, the world’s largest seismic surveyor of oilfields, and ArcelorMittal, the biggest steelmaker, rose more than 4 percent as analysts upgraded the shares. Greggs Plc, a U.K. baker, jumped 8.1 percent as Chancellor of the Exchequer George Osborne reversed a plan to add value-added tax to some snacks. Bankia SA led a decline in Spanish stocks, sliding 16 percent.
Volatility on Japanese bonds was the highest in developed markets today, according to measures of 10-year debt, the two- and 10-year yield spread and credit-default swaps. The yield on the 10-year security dropped 3 basis points to 0.85 percent.
The S&P GSCI gauge of 24 commodities decreased 0.6 percent, reversing a gain of as much as 0.9 percent. Crude in New York slipped 0.4 percent to $90.49 a barrel after climbing as much as 1.5 percent. Natural gas fell 2.2 percent, bringing its decline since May 23 to more than 8 percent, on forecasts for cooler weather that would curb demand for fuel at power plants.
Emerging-market stocks gained for a fourth day. The Hang Seng China Enterprises Index (HSCEI) of Chinese companies listed in Hong Kong climbed 2.2 percent. Taiwan’s Taiex jumped 2.9 percent and South Korea’s Kospi Index added 1.4 percent. Russia’s Micex Index advanced 2.2 percent.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Rita Nazareth in New York at rnazareth@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
Bank stocks tumble on JPMorgan's trading loss - Yahoo Finance
NEW YORK (AP) -- Shares of the major U.S. banks tumbled Friday on news that JPMorgan Chase, the country's largest bank, lost $2 billion in the past six weeks in a trading portfolio that was intended to reduce its financial risks.
Shortly after Friday's opening bell, JPMorgan Chase & Co. shares dropped more than 9 percent, making it the biggest loser among the 30 stocks in the Dow Jones industrial average.
While the losses were particular to JPMorgan, the news boosted fears of increased bank regulation and was enough to spook investors.
Shares of Citigroup Inc. and Goldman Sachs Group Inc. both fell about 4 percent in early trading, while Bank of America Corp. initially dropped about 3 percent before rebounding. Earlier in the day, shares of British banks fell when European markets opened.
But gains in technology, energy and other stocks offset the losses on the broader U.S. market. In midday trading, the Dow was up 34 points at 12,888.
Wall Street analysts said the hefty losses provide fodder for proponents of increased bank regulation including the so-called Volcker rule, which is still being written and is expected to ban certain types of trading by banks with their own money.
The Federal Reserve said last month that it would begin enforcing that rule in July 2014. Bank executives, including JPMorgan's CEO, have argued for weaker rules and broader exemptions.
Baird analyst David George said in a Friday note to investors that it's now less likely that the government will heed those requests. And once the political season gets going, the country's largest banks could also face calls from their critics for them to break up, he said.
But Citi analyst Keith Horowitz said that while JPMorgan's timing couldn't have been worse for the industry, he's still not convinced that the losses will result in stricter Volcker rule than previously expected, since that would severely affect the amount of money in the markets.
The trading loss was an embarrassment for JPMorgan, which came through the 2008 financial crisis in much better health than its peers. It kept clear of risky investments that hurt many other banks.
The loss came in a portfolio of complex financial instruments known as derivatives and in a division of JPMorgan designed to help control its exposure to risk in the financial markets and invest excess money in its corporate treasury.
Partly because of the $2 billion trading loss, JPMorgan said it expects a loss of $800 million this quarter for a segment of its business known as corporate and private equity. It had planned on a profit for the segment of $200 million. The loss is expected to hurt JPMorgan's overall earnings for the second quarter, which ends June 30.
In midday trading, JPMorgan shares dropped $3.01, or 7.4 percent, to $37.73; Citigroup lost $1.03, or 3.4 percent, to $29.62; and Goldman Sachs fell $3.08, or 2.9 percent, to $103.24. Bank of America shares initially fell 29 cents, or 3.8 percent, to $7.41, before climbing back to $7.72, up 3 cents per share.
For those with more money than taste... the £125,000 diamond encrusted gold coins on sale to celebrate Queen's jubilee - Daily Mail
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Forget commemorative mugs or tea towels, there's now a much more elaborate souvenir on sale to mark the Queen's diamond jubilee.
But with a price tag of 125,000, you'll need more money than taste in order to afford it.
The East India Company has released 60 minted gold coins, one for each year of Queen Elizabeth II's reign, encrusted with diamonds to celebrate the royal milestone.
Despite the hefty price tag, the company has revealed that it has had 'brisk and determined interest' from monarchist collectors and investors from across the globe.
Diamond Queen: The East India Company have released 60 of these gold coins encrusted with diamonds to mark the jubilee
The gold coins weigh a kilo and feature the head of the Queen wearing a diamond tiara, necklace and brooch with the words 'Elizabeth Regina, Diamond Jubilee 1952-2012' around the outside.
They have also released 60 silver coins of the same design and weight but at a 'cheaper' price of 25,000.
Each kilo struck by The Royal Mint represents over 1,000 hours of craftsmanship - and the company has received particularly high interest in the coins from international buyers.
As a result, the company is now scheduling private viewings in Monaco, Moscow, Geneva, Hong Kong, the Middle East and India.
The East India Company, which has a flagship store in Mayfair, has long-standing links to the British monarchy.
Expensive souvenir: Diamonds are encrusted in the tiara, necklace and brooch of the Queen's image raising the price of the one kilo gold coin to 125,000
Queen Elizabeth I founded the East India Company in 1600 by Royal Charter.
In the 19th century, the company set jewels in a tiara for Britain's other diamond Queen, Queen Victoria, when she was crowned Empress of India.
Sanjiv Mehta, CEO of East India Company said: 'The company was instrumental in building the British Empire with its legacy still visible today in what we know as the Commonwealth Nations.
'We chose to commission the Royal Mint, another quintessential British brand who first minted coins for us over 200 years ago, with this unique project to create a timeless tribute that reflects the grand achievement it celebrates.'
Commemorative: Sixty silver coins have also been made and are on sale for 25,000
Given the expensive nature of the purchase, buyers get more for their money than just the coin.
It is presented on royal purple velvet in a bespoke presentation case, designed by British company Linley.
A diamond-magnifying loupe is hidden in the base compartment of the presentation case, which enables owners to get a close-up view of the encrusted diamonds.
The purchase also includes a book which tells the story of the Queen Elizabeth II's 60-year reign.
Stocks open lower as Europe overshadows jobs data - Yahoo Finance
NEW YORK (AP) -- Stocks slipped in early trading Thursday as unease over Europe overshadowed an encouraging report on unemployment claims and good results from big retailers including Wal-Mart Stores.
The Dow Jones industrial average was down 48 points at 12,548 in the first half-hour of trading. The Standard & Poor's 500 index fell seven points to 1,317. The Nasdaq composite fell 19 points to 2,854.
The Labor Department reported that applications for unemployment benefits held steady last week, a sign that layoffs are not increasing.
Wal-Mart stock rose 5 percent after reporting a 10 percent jump in first-quarter income, beating Wall Street expectations. It was a big turnaround for the retailer, which had suffered during the economic downturn as low-income customers were hit hard by joblessness and home foreclosures.
Despite positive news from the U.S., investors continue to fret about developments in Europe and whether Greece might be forced to exit the euro bloc, something that investors fear would cause turmoil on global markets.
Greece's caretaker Cabinet was sworn in Thursday and will hold power at least until next month's election. In the recently-held elections Greeks didn't given any party a majority, but they did give strong support to politicians who rejected the tough austerity measures that came with the country's financial bailout.
Without that rescue package, Greece will likely default and be forced to leave the 17-country euro zone, which would destabilize other countries that use the euro. German, French and Spanish stock markets all fell more than 1 percent.
Collateral economic damage is already being felt by other members of the euro bloc.
Spain was forced to pay sharply higher interest rates to raise $3.18 billion in a debt auction Thursday. And shares of Bankia, which Spain nationalized last week, plunged 20 percent on a report from the newspaper El Mundo stating that depositors have withdrawn over $1 billion since last Wednesday.
Oil prices continued to trade lower, falling below $93 a barrel on Thursday, extending a sharp two-week sell-off, as traders worried about the potential impact on global growth from the European crisis. Crude oil has plummeted about 12 percent from $106 two weeks ago.
Energy companies traded lower. Chesapeake Energy fell 4 percent, while WPX Energy declined 6 percent.
Among other stocks making big moves:
— GameStop fell 9 percent after the world's largest video game retailer reported its first-quarter profit fell 9.8 percent, as fewer customers visited its stores and bought new games and systems.
— Sears Holdings rose 7 percent after the beleaguered retailer turned a profit in the first quarter, benefiting from a gain on the sale of some stores.
Could you go on a 125,000 shopping spree and hand this coin over as payment? Its like when they sell a 5 coin for 8 .... If I want a 5 coin I will pay 5 for it, thank you please. My other half used to collect coins, before i spent them on the bus - Claire, Bristol, 29/5/2012 16:51------What made you buy a bus?
- Tom, Chichester, 29/5/2012 17:57
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