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Overnight Briefing: American Timezone

Oil rebounded

Fri, May 16 2008, 06:00 GMT
by Jyske Bank Team

Jyske Bank

• U.S. stock rose

• Japan 1st quarter GDP grew 0.8 %

• Dollar steadied against the yen

Today’s main events:

• EUR Euro-Zone Trade Balance

• USD Housing Starts & Building Permits

• USD University of Michigan Confidence

American Time Zone:

U.S. Stocks rose

U.S. stocks climbed, sending the Standard & Poor's 500 Index to a four-month high, as analysts predicted rallies for chipmakers and oil producers and Tiffany & Co.'s better-thanestimated profit boosted retailers.

Intel Corp. and Nvidia Corp. led semiconductor shares to their highest level of the year on a Friedman Billings Ramsey & Co. report that said the companies will benefit from rising global demand for computers. Exxon Mobil Corp. helped push the S&P 500 Energy Index to a record after UBS AG said the oil industry is “notably inexpensive”. Tiffany, the secondlargest luxury-jewellery retailer, advanced to the highest level since November after boosting its dividend by 13 percent.

Foreign exchange in New York

The yen rose across the board on Thursday as investors reduced demand for riskier assets such as stocks after a series of weak U.S. economic data added to anxiety over the country's growth picture.

Analysts said that while market indicators pointed to the Federal Reserve being close to the end of its interest rate cutting cycle, there were nagging doubts on whether the economy would be able to cope without further policy easing.

The dollar slumped to a session low of 104.44 yen and was last trading at 104.64 yen, down 0.4 % on the day. The euro fell 0.5 % to 161.72 yen, while sterling dropped 0.4 % to 203.68 yen.

The low-yielding yen tends to attract flows during periods of uncertainty as the low interest rates reflect Japan's capital surplus. Factory activity in the U.S. mid-Atlantic region shrank for a sixth straight month in May, while manufacturing in New York State also declined, according to reports by regional Federal Reserve banks.

U.S. interest rate futures continued to signal the expectation the Fed would raise the benchmark federal funds rate by a quarter percentage point by the end of the year to 2.25 %. They were pricing in a 92 % perceived chance that the central bank would leave rates steady in June.

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Published on  Fri, May 16 2008, 06:00 GMT

Archive

• Oil rebounded
  Published On Fri, May 16 2008, 06:00 GMT
• U.S. Stocks rose
  Published On Thu, May 15 2008, 05:55 GMT
• U.S. Stocks Decline
  Published On Wed, May 14 2008, 05:55 GMT
• U.S. Equities
  Published On Tue, May 13 2008, 05:42 GMT
• U.S. stocks Rose
  Published On Fri, May 9 2008, 05:44 GMT

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http://www.jyskebank.com | jyskebank@jyskebank.dk