Al Ittihad claims top spot in Saudi Pro League after victory over Al Fateh    Saudi delegation participates in the 7th U20 Deans Summit in Brazil    Al-Jubeir discusses with EU officials enhancing bilateral cooperation    GASTAT: Non-oil exports up 22.8% in September 2024    Saudi Arabia to host 28th Annual World Investment Conference in Riyadh    Saudi Arabia allows licensed flour milling companies to export flour    Saudi Arabia joins international partnership initiative to boost hydrogen economy    Israeli drones kill two paramedics, injure four in southern Lebanon    Trump's new attorney general nominee sparks concerns over DOJ independence    Australia drops proposed laws to regulate social media misinformation    Six Palestinians killed in Israeli airstrikes on central Gaza    Riyadh Emir inaugurates International Conference on Conjoined Twins in Riyadh    Al Khaleej stuns Al Hilal with 3-2 victory, ending 57-match unbeaten run    SFDA move to impose travel ban on workers of food outlets in the event of food poisoning    Al Okhdood halts Al Shabab's winning streak with a 1-1 draw in Saudi Pro League    Saudi musical marvels takes center stage in Tokyo's iconic opera hall    Al Khaleej qualifies for Asian Men's Club League Handball Championship final    Katy Perry v Katie Perry: Singer wins right to use name in Australia    Sitting too much linked to heart disease –– even if you work out    Denmark's Victoria Kjær Theilvig wins Miss Universe 2024    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



World markets mixed on weak economy
Published in The Saudi Gazette on 31 - 01 - 2009

European markets were mixed Friday, after sharp losses in Japan, amid more dismal economic numbers and quarterly reports from leading companies like Sony and Honda showing plunging profits.
In Europe, banking and mining stocks were stronger, but trading was subdued by news euro-zone unemployment edged up to 8 percent in December and by expectations US GDP figures for the fourth quarter due later in the day will show the biggest drop in more than 25 years.
By noon in mainland Europe, Britain's FTSE 100 was up 0.21 percent. But Germany's DAX fell 0.39 percent and France's CAC 40 was down a similar 0.31 percent.
In London, mining giant Rio Tinto's shares rose 4.3 percent after it said it had struck a deal to sell an iron ore mine and other projects in South America to rival Vale for $1.6 billion.
Shares in banks Lloyds Banking Group, Royal Bank of Scotland and Barclays were up 7.1 percent, 6.2 percent and 5.4 percent. In Frankfurt, Commerzbank was up 5.8 percent and Deutsche Bank 1.4 percent.
“The banks for the time being are continuing to be supported by further banking initiatives by western governments and the U.S. bailout package which is slowly working its way through the legal system,” said Keith Bowman, an analyst at Hargreaves Lansdown Stockbrokers in London. The US plan involves “buying some of the toxic assets and ringfencing them in bad banks,” he added.
Later Friday, the US Commerce Department is set to release a report which analysts expect will show the economy shrank at an annualized pace of 5.4 percent in the October-December period, a much faster descent than the 0.5 percent decline logged in the prior quarter. If economists' forecasts are correct, it would mark the weakest quarterly showing since an annualized drop of 6.4 percent in the first quarter of 1982, when the country was suffering through a severe recession.
Investors also digested news from the European Union that an additional 230,000 people in the euro zone lost their jobs in December, reflecting a worsening economic situation across the 16-nation single currency area.
In Asia, Japan's Nikkei 225 stock average fell 257.19, or 3.1 percent, to 7,994.05 as investors reeled from a mounting pile of bad earnings reports and the latest economic data.
Industrial output at Japan's manufacturers plunged 9.6 percent from the previous month in December, the largest drop since Tokyo began measuring such data in 1953. The unemployment rate in the world's second-biggest economy jumped to 4.4 percent in December from 3.9 percent in November.
Honda Motor Corp. dived 9.2 percent ahead of quarterly results. The automaker's October-December profit, released after the market closed, tumbled 90 percent, hit by rising costs, a stronger yen and falling sales in key markets.
Megabank Mizuho Financial Group Inc., which had a quarterly loss of 50.55 billion yen ($559 million), slid 7.4 percent. Electronics giant Sony Corp., which Thursday reported a 95 plunge in October-December profit, sank 6.8 percent.
Toshiba Corp. tumbled 17.4 percent after forecasting a full year loss due to plummeting demand for its flash memory chips, used to store data in consumer gadgets like music players and digital cameras.
“Investors are looking for a magic bullet but there isn't one. There isn't one solution that by itself can solve all the complex problems that the world economy faces,” said Arjuna Mahendran, head of Asian investment strategy at HSBC Private Bank in Singapore.
“In typical myopic fashion, markets are alternating between despair and hope,” he said.
“The problem is that there is no real visibility about earnings and the economic situation and there may not be until the second half of this year or very late in the year.”
Hong Kong's key index clawed back early losses to rise 0.9 percent to 13,278.21 on speculation about an interest rate cut in mainland China or other stimulus measures. “There are hopes for more stimulus measures because the authorities in China have said they are determined to stabilize the economy,” said Castor Pang, an analyst at Sun Hung Kai Financial in Hong Kong. – APSNAPSHOT
• Record Japan industrial output fall, inflation almost zero • US awaiting Q4 GDP, growth seen at weakest in 26 years
• Honda cuts forecasts, Toyota losses seen ballooning
• Obama, Congress seek deal on economic stimulus
• US to unveil options to stabilise banking, source says
• Euro zone Dec unemployment rose to 8 pct, above forecast
• France's December jobless data will be bad - minister
Spain plans cars industry support package - report
• Thai exports and industrial output tumbles; rate cuts seen
South Korea expected to cut interest rates to record low
New Zealand cbank ready to cut interest rates further
• Analysts expect ECB to keep rates at 2 pct next week
Markets
• World stocks shed 0.6 pct; Nikkei hit; Wall St seen up
• Yen, dollar rise on flight to safety
• Oil stays below $42 a barrel
• Key economic barometer copper extends fall __


Clic here to read the story from its source.