Reviews of stock markets

Wednesday: day's results on the stock market...

Reviews of stock markets:
Nikkei 225 - 194.33 -1.5% 13,159.45
Topix -19.15 -1.5% 1,281.64
DAX 30 -85.56    -1.33%    6,351.15
САС 40 -3.96  -0.09%  4,320.49    
FTSE 100 -40.00    -0.75%    5,312.60
Dow +266.48    +2.39%    11,397.56
Nasdaq +55.40    +2.45%    2,319.62
S&P +28.83    +2.34%    1,263.20
10YR+0.2600    +0.065%    4.044%
NYMEX Crude Oil  -2.54    -2.04%    122.19
Gold   -11.40    -1.22%    926.40

The Japanese major indices lowered and reached its week’ s minimal level. The main reason for indices fall was oil prices growth that may cause corporative expenditures growth for fuel and utilities  and bring down their profits. Also anxiety of market participants in regard of financial institutions further growth of losses due to non-return of borrowings contributed to the indices fall.
The shares of Japan Toyota Motor Corp., the world biggest car manufacturer, lost 2, 7% after the company lowered selling forecast for the year 2008 till 9, 5 million cars from 9, 85 million cars referring to sales decrease in the Northern America.   2007 company sales comprised 9, 37 million cars. The shares of AisinSeiki, transmissions manufacturer for Dodge vehicles, also lost their value. Fall of company shares amounted to 7, 3% as a result minimum since January, 28 was reached.
Against the background of negative reports from Merrill Lynch & Co on assets writing off the shares of its Japanese  rival - Nomura Holdings Inc. - lost 2,9%. Shares of Mizuho Financial Group Inc, second by capitalization bank of Japan, lost 4,8%.
Shares of Mitsui O.S.K., the largest Japan shipping line, went down by 3, 9%. Rival Nippon Yusen KK also lost 3,7%. Decrease of shipping lines shares was caused by decrease of their activities. Shares of   sea shipping companies showed maximum fall among of 33 group of Topix index.
Japan economic statistics, describing growth of rate of unemployment in June as maximum since 2 years (4, 1%) and decrease of households’ expenditures, also pressurized the indices.  Issued data became additional signs that the longest after war recovery can be over.  


The main European indices completed Tuesday session in a mixed way: in line with decrease of French САС 40, British FTSE and German DAX showed a small growth.
National indices grew up at 9 from 18 West European markets.
The USA statistics assisted to the European indices, exactly an unexpected growth of buyers’ confidence. The present report caused growth of companies’ shares who aim at the North America market as their main sales area.
Shares of food company Nestle SA, which 30% of sales account for   the USA market, and the world largest cosmetics producer L'Oreal SA, which supplies 25% of its products to the USA, grew up by 2% and 1, 9% accordingly.  
Airlines stocks benefited from oil prices decrease. The largest European airline Air France-KLM Group went up by 2,7% and discount airline Ryanair Holdings Plc by 3,2%.
British Airways Plc shares grew up to 6%. The company disclosed information about negotiations with  Iberia Lineas Aereas de Espana SA regarding their merger. Shares of Iberia Lineas  pop up by 21%.
Press release of American U.S. Steel Corp on their profit during the second quarter of the year, which sufficiently exceeded analysts’ forecasts, supported its European rivals. Shares of Arcelor Mittal, the world largest steel manufacturer raised their value by 4, 8% and German ThyssenKrupp AG by 2, 9%.
Merrill Lynch report on assets writing off caused downfall of shares UBS AG by 3, 6%; this European bank suffered the biggest losses from the USA credit market crisis.  British bank Barclays Plc lost 4, 1%.


The Wall Street main indices showed substantial growth on Tuesday and completed trading close to session maximum.

Growth of indices followed fall of oil prices and an unexpected growth of buyers’ confidence in July.
There is an advance in 9 from total 10 economical sectors, and maximum growth appeared to be in financial sector (+7, 5%).
Merrill Lynch report on assets sale in the amount of $11, 1 bln and assets writing off in the amount of $5, 7 bln supported the sector   (+1, 99). The bank disclosed also its plans in regard of attraction of paid-in capital in excess of par   in the amount of    $8,5 bln through shares emission. The measures aim at consolidation of company financial situation.  
Oil prices went down by 2, 3% and reached a level of 121, 85 per barrel. Fall of oil prices caused decrease of shares for power-generating sector (-0, 8%).
Companies’ financial reports in general appeared to be better than forecasts. Profit reports in the second quarter of the year, surpassing analysts anticipations, were issued by Amgen (+1.74), Colgate-Palmolive (+5.67), U.S. Steel (+20.09), Valero Energy (+1.49) and Waste Management (+0.85).
Exposed statistics revealed growth of buyers’ confidence in July till the level of 51, 9 against revised June value of 51, 0. It is the first index growth since last December. Fall of oil prices facilitated growth of confidence.
Growth of main indices put down request for treasury bonds, which lost their value, that brought about raise of profitability of 10 year bond certificates up to the level of 4, 04%.