Thursday, 17 September 2009 10:59 PM
LONDON, KOMPAS.com — European stocks lost their earlier gains Thursday as Wall Street floundered on the open, pushing investors to take profits on this week’s rally, which has seen many indexes reach new highs for the year. Germany’s DAX was up 0.1 percent at 5,703.84, Britain’s FTSE 100 gained 0.4 percent to 5,142.83 and France’s CAC-40 was down 0.1 percent to 3,810.78. Asian markets made strong gains, but U.S. indexes were unable to maintain the previous day’s momentum. The Dow Jones industrial average was up 0.1 percent at 9,797.75 and the Standard & Poor’s 500 index traded 0.1 percent lower at 1,068.04. U.S. traders were hesitant to extend this week’s rally, which has been driven largely by strong economic data, on fears that the good news may be priced in by now. The figures have supported the claims by Federal Reserve Chairman Ben Bernanke that the recession is “very likely over,” although some analysts say markets need more proof of recovery to sustain gains. On Thursday, data showed housing starts rose 1.5 percent in August, about as expected, indicating the sector’s downturn has bottomed out, although experts believe a recovery will be slow because of high foreclosure rates and weak consumer spending. Other upbeat statistics this week included industrial production on Wednesday — a 0.8 percent rise in August, better than expected — and retail sales on Tuesday. After weeks of caution over the valuation of stocks — with investors worrying that gains since March were not justified and economic recovery would be slow — equities have risen steadily this week. Mitul Kotecha, analyst at Calyon, noted that while momentum is strong and stocks may rise further, “equity valuations are increasingly suggesting some caution.” The increased appetite for risk and rise in stocks has had the knock-on effects of weakening the dollar — which is typically bought as a safe haven — and boosting oil prices and commodities. In Ireland, the benchmark index jumped 2.8 percent after the government announced it would acquire euro77 billion ($113 billion) in defaulting property loans from the country’s struggling banks — and pay 30 percent less. The hope is that a “bad bank” would stabilize the financial sector and free up banks to lend normally once again. Shares in Allied Irish Banks soared 21.7 percent and Bank of Ireland rose 12.8 percent on the news. In Asia, indexes generally rose more sharply than their European or U.S. counterparts, driven in part by unprecedented liquidity from government stimulus spending and low interest rates set by central banks. “Asia is outperforming right now, but this is primarily liquidity driving the market up,” said Peter Lai, investment manager at DBS Vickers in Hong Kong. “I feel the upside opportunities are quite limited but the downsides risks are high, and many people may start looking for opportunities to take profits.” Japan’s Nikkei 225 stock average closed up 1.7 percent at 10,443.80 after the central bank raised its assessment of the world’s second-largest economy and kept interest rates at 0.1 percent to nurture a recovery. Hong Kong’s Hang Seng gained 1.7 percent, China’s Shanghai benchmark rose 2 percent and South Korea’s Kospi added 0.7 percent. Elsewhere, Australia’s market jumped 1.4 percent and India’s Sensex was up 0.5 percent. Among other countries whose main stock measures hit new highs for 2009 on Thursday were India, Thailand, Malaysia and Taiwan. Oil prices rose slightly, holding above $72 a barrel. Benchmark crude for October delivery was up 7 cents at $72.58 a barrel by afternoon European time in electronic trading on the New York Mercantile Exchange. The dollar rose to 91.33 yen from 90.88 yen late Wednesday in NewYork. The euro gained to $1.4740 from $1.4706.Sumber : AP
LONDON, KOMPAS.com — European stocks lost their earlier gains Thursday as Wall Street floundered on the open, pushing investors to take profits on this week’s rally, which has seen many indexes reach new highs for the year. Germany’s DAX was up 0.1 percent at 5,703.84, Britain’s FTSE 100 gained 0.4 percent to 5,142.83 and France’s CAC-40 was down 0.1 percent to 3,810.78. Asian markets made strong gains, but U.S. indexes were unable to maintain the previous day’s momentum. The Dow Jones industrial average was up 0.1 percent at 9,797.75 and the Standard & Poor’s 500 index traded 0.1 percent lower at 1,068.04. U.S. traders were hesitant to extend this week’s rally, which has been driven largely by strong economic data, on fears that the good news may be priced in by now. The figures have supported the claims by Federal Reserve Chairman Ben Bernanke that the recession is “very likely over,” although some analysts say markets need more proof of recovery to sustain gains. On Thursday, data showed housing starts rose 1.5 percent in August, about as expected, indicating the sector’s downturn has bottomed out, although experts believe a recovery will be slow because of high foreclosure rates and weak consumer spending. Other upbeat statistics this week included industrial production on Wednesday — a 0.8 percent rise in August, better than expected — and retail sales on Tuesday. After weeks of caution over the valuation of stocks — with investors worrying that gains since March were not justified and economic recovery would be slow — equities have risen steadily this week. Mitul Kotecha, analyst at Calyon, noted that while momentum is strong and stocks may rise further, “equity valuations are increasingly suggesting some caution.” The increased appetite for risk and rise in stocks has had the knock-on effects of weakening the dollar — which is typically bought as a safe haven — and boosting oil prices and commodities. In Ireland, the benchmark index jumped 2.8 percent after the government announced it would acquire euro77 billion ($113 billion) in defaulting property loans from the country’s struggling banks — and pay 30 percent less. The hope is that a “bad bank” would stabilize the financial sector and free up banks to lend normally once again. Shares in Allied Irish Banks soared 21.7 percent and Bank of Ireland rose 12.8 percent on the news. In Asia, indexes generally rose more sharply than their European or U.S. counterparts, driven in part by unprecedented liquidity from government stimulus spending and low interest rates set by central banks. “Asia is outperforming right now, but this is primarily liquidity driving the market up,” said Peter Lai, investment manager at DBS Vickers in Hong Kong. “I feel the upside opportunities are quite limited but the downsides risks are high, and many people may start looking for opportunities to take profits.” Japan’s Nikkei 225 stock average closed up 1.7 percent at 10,443.80 after the central bank raised its assessment of the world’s second-largest economy and kept interest rates at 0.1 percent to nurture a recovery. Hong Kong’s Hang Seng gained 1.7 percent, China’s Shanghai benchmark rose 2 percent and South Korea’s Kospi added 0.7 percent. Elsewhere, Australia’s market jumped 1.4 percent and India’s Sensex was up 0.5 percent. Among other countries whose main stock measures hit new highs for 2009 on Thursday were India, Thailand, Malaysia and Taiwan. Oil prices rose slightly, holding above $72 a barrel. Benchmark crude for October delivery was up 7 cents at $72.58 a barrel by afternoon European time in electronic trading on the New York Mercantile Exchange. The dollar rose to 91.33 yen from 90.88 yen late Wednesday in NewYork. The euro gained to $1.4740 from $1.4706.Sumber : AP
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