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Overnight Briefing

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U.S. equity up

Mon, Sep 29 2008, 05:59 GMT
by Jyske Bank Team

Jyske Bank

• U.S. rescue package

• Japan retail sales

• Fortis Bank nationalisation

Today’s main events:

• USD personal consumption

• USD personal income

• EUR consumer sentiment

American Time Zone:

U.S Equity up

U.S. stocks ended mostly higher on Friday as big bank shares staged a late rally on hopes lawmakers would hammer out an agreement on a USD 700 billion financial-sector rescue plan this weekend.
Friday's market gains were in sharp contrast to the rest of the week, which was the worst for the benchmark S&P 500 since May.
Trading volume was light, with most traders glued to the increasingly acrimonious debate in Washington over Treasury's plan to mop up bad mortgage debt from bank balance sheets to get them lending again.
Shares of JPMorgan Chase, up 11% and Bank of America, up nearly 7% ranked among the top gainers in both the Dow and the S&P 500.
The Dow Jones industrial average was up 121.07 points, or 1.10% at 11,143.13. The Standard & Poor's 500 Index was up 4.09 points, or 0.34% at 1,213.27. But the Nasdaq Composite Index was down 3.23 points, or 0.15% at 2,183.34.
The fate of the rescue plan pushed nearly everything else to the background on Friday, including U.S. bank regulators' move to close Washington Mutual late on Thursday, the largest U.S. bank failure in history.

JPY rose as market await US rescue package

The yen rose against the dollar and headed for its biggest weekly gain since May as U.S. lawmakers disagreed over a financial rescue and Washington Mutual Inc. became the nation's biggest bank to collapse.
Japan's currency also strengthened against the euro and the Brazilian real after a group of Republicans opposed to the Treasury's USD 700 billion asset-purchase plan submitted an alternative proposal, prompting investors to reduce holdings of higher-yielding assets funded in Japan.

Oil lower

Crude oil fell, leading energy futures lower, after negotiations over the USD 700 billion financial bailout plan stalled, adding to concern that U.S. economic growth in the world's biggest energy-consuming country will falter.

Far East Time Zone:

Congressional leaders agreed on Sunday to the underpinnings of a deal that will allow the Treasury Dept to buy up to USD 700 billion in troubled securities to soothe global credit markets. The proposal will be sent to Congress later on Monday.
President George W. Bush said in a statement the plan being finalized by Congress provides the tools and funding to protect the U.S. economy from a "system-wide breakdown," and expressed confidence it would be passed quickly. Treasury Secretary Henry Paulson said he was confident the program will be enough to free up jammed financial markets and keep credit flowing.
The dollar rose against the yen and the euro, and US Treasury bond futures slipped on the news.

Japan August Retail Sales

Japanese retail sales rose 0.7 % in August from a year earlier, government data showed on Monday, compared with economists' median forecast for a 0.2 % rise.

Fortis Bank nationalisation

Fortis received a EUR 11.2 billion rescue from Belgium, the Netherlands and Luxembourg after investor confidence in the bank evaporated last week. Fortis dropped 35% last week in Brussels trading on concern the company would struggle to replenish capital depleted by the takeover of ABN Amro Holding NV units and credit writedowns.

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Published on  Mon, Sep 29 2008, 06:04 GMT