Investment of Mine

Digest of the stock market December 10th, 2008:

Nikkei  +264.37 +3.20%  8,660.24
Topix   +16.61  +2,00%  834.55
FTSE    -13.98    -0.32%    4,367.28
DAX    +25.77    +0.54%    4,804.88
CAC 40     +22.51  +0.68%  3,320.31
Dow    +70.09    +0.81%    8,761.42
NASDAQ    +18.14    +1.17%    1,565.48
S&P    +10.57    +1.19%    899.24
10yr Note    +0.1500    +0.056%    2.684%
NYMEX Crude Oil    +1.45    +3.45%    43.52
Gold    +34.60    +4.47%    808.80

Japanese stock markets keep on growing. The investors were optimistic about unofficial announcements that the White House and the representatives of the Democratic Party had reached an agreement as for providing $15 bln of financial help to the car makers of the USA. The growth leaders still remain the companies of the real estate sector and cargo carriers.
After the announcement that the government of the country can provide Japanese developers suffering financial difficulties with credits, the rates of the country’s fourth largest builder Tokyo Land Corp. rose by 16%, those of the Japanese second largest developer Mitsubishi Estate Co. – by 7.6%. The trades were also successful for the Japanese cargo carriers. After the freight stochastics Baltic Dry Index grew by 1.2%, the stocks of the Japanese second largest sea carrier Mitsui O.S.K. Lines Ltd. increased by 10.4%, those of the Nippon Yusen KK – by 6.5%.
The trading session for such Japanese car makers as Honda Motor Corp. (+10.3%), Toyota Motor Co. (+6.6%) finished on the positive territory as well. According to the trades results of December 10th the Nikkei index grew by 264.37 points (+3.15%) – to 8660.24 points.

Institute of Economy and Social Research released the report saying that the decrease of the country’s economy from September to November exceeded expectations and made up 1%.
The growth of metal prices and the situation around the Rio Tinto supported the stocks of the mining companies. Rio Tinto announced that they planned to discharge 14 thousand of employees and cut expenses by $2.5 bln to cope with the financial crisis. Following this announcement the securities of the Rio Tinto rose by 20%, those of the BHPBilliton Ltd. – by 6.7%, those of Xstrata Plc. – by 6.6%.
Expectations of voting for the salvation plan of car makers in the US Congress to support the stocks of the European auto industry. Thus, the rates of the stocks of the German BMW grew by 2.3%, those of the French Peugeot Citroen – by 6.9%.
The securities of the French media group Vivendi SA (-3%) and British store chain selling the video games Game Group (-6.8%) negatively finished the session against the background of the news from the USA. Investors on the European stock markets were not optimistic about the announcement of the world’s second largest producer of the video games – the American Electronic Arts Inc. – as for the forecast reduction of the net profit and gain in 2009.

The stock indices on Wall Street finished the changeable trades of Wednesday’s session by the rates growth. The indices were supported by the announcement that the US government is ready to allocate the term credit in the amount of $15 bln to the concerns General Motors and Chrysler. Apart from allocating the credit, it is suggested to make the US government the largest owner of the stocks of the General Motors and Chrysler. In the nearest future the voting of the Congress for this issue is expected. It is worth mentioning that the Ford did not announce about the necessity of the urgent financial support. Nevertheless, they still asked the government for the $9 bln credit in case of the worsening of the financial rates of the company.
According to the session results, 8 out of 10 major economic sectors consolidated. The materials sector (+2.7%) and the power generating sector (+4.7 %) were at the top of the increase due to growth of the commodity prices.
The financial sector demonstrated the worst results (-0.8 %) among the sectors. The stocks of the American Express (-7.5%) appeared to be under the flow of suggestions after the reduction of their rating by the Citigroup Bank of America.
The consolidation of indices was supported by the weak corporative news. The world’s largest producer of the video games the Electronic Arts Company announced about the revision of its profit forecast in the direction of reduction. The Company’s stocks decreased by 13.8%. It is said in the Company that the preliminary data of the sales analysis demonstrated the reduction of demand for video games even despite the New Year sales and traditional boom of demand for new electronic products.
The office equipment retailer Office Depot announced about its plans to close 12 points of purchase in North America.
British-Australian mining company Rio Tinto (+18%) announced about its plans in the nearest future to cut 14 thousand working places. Besides, the Company is going to take its money out of some of the assets and cut the volume of quarter expenses in 2009 from $9 planned before to $4 bln.
The oil prices consolidated according to the results of today’s trades. Data about the crude oil stores turned out to be mixed: the oil stores grew less than the market analysts have expected while he petrol stores turned out to be higher than it has been expected. “Black gold” increased by 4.3% to $43.89 per barrel.

This entry was posted on Thursday, December 11th, 2008 at 8:02 am and is filed under Finance Review. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.