AMERICAN MARKETS OUTLOOK: U.S. stock futures rose Thursday after
Germany's Bundestag overwhelmingly passed reforms to expand the
European Financial Stability Facility.
Futures on the Dow Jones Industrial Average rose 107 points to
11074, while those on the Standard & Poor's 500 index added 10
points to 1158.75. Nasdaq 100 futures rose 25 points to
2243.50.
Among the companies whose shares are expected to actively trade
in Thursday's session are Advanced Micro Devices, Texas Industries
and BioDelivery Sciences International.
EUROPEAN MARKETS: Euro Stoxx 50 extended gains and is 1% higher
at 2198.71 led by banking stocks, with Commerzbank up 6.6% and
Deutsche Bank 3.5% higher. BNP Paribas gained 6.4% and Societe
Generale added nearly 5%. The Stoxx Europe 600 for the banking
sector was up 1.8% at 136.71.
Supporting the Stoxx 600, shares of heavyweight component Hennes
& Mauritz rose 5%. The clothing retailer said third-quarter net
profit fell 15%, but the company also said it will open more stores
than originally planned in fiscal year 2010-2011. The German DAX 30
index rose 0.5% to 5,606.46, and the French CAC 40 index rose
nearly 1% to 3,022.12.
London's FTSE 100 was down 0.5% at 5191.69, pressured by weak
mining shares amid lower metal prices. Xstrata and Antofagasta were
both down 2.3%. However, the passage of the EFSF vote in Germany
has seen bank stocks rise in London, with Royal Bank of Scotland up
1.9% and Lloyds Banking Group increasing 1.3%. Elsewhere, Tate
& Lyle jumped 3.4% after it pleases the market with its trading
update.
At 1025 GMT, December bunds were up 0.01 at 135.67, and December
gilts were 0.27 higher at 129.39.
At 1025 GMT, the dollar was up at Y76.68, the euro had climbed
to $1.3637, and the pound was also higher at $1.5650.
===========================
TOP STORIES:
GERMAN PARLIAMENT PASSES EFSF REFORM BY A WIDE MARGIN: Germany's
parliament approved by a wide margin legislation to boost the scope
and volume of the euro zone's current rescue fund.
EURO-ZONE CONFIDENCE EVAPORATES: Business and consumers across
the 17 countries that share the euro have become much more downbeat
about their prospects during September as the currency area's
fiscal crisis intensified.
NOKIA TO CUT JOBS IN MAJOR ADJUSTMENT: Nokia, the world's
largest mobile phone maker by volume, said it will shed up to 3,500
jobs globally as it realigns its business, scales down and
refocuses its manufacturing operations.
GERMAN LABOR MARKET REMAINS ROBUST: Germany's seasonally
adjusted jobless figures fell sharply in September, showing that
the country's labor market remains robust even against the backdrop
of financial market turmoil.
FOUR COUNTRIES REVIEW SHORT SELLING BAN: The four European
countries that banned short-selling positions last month are
reviewing the ban and will lift it as soon as markets return to
normal, ESMA Chairman Steven Maijoor said.
============================
INSIGHT & ANALYSIS FROM DOW JONES NEWSWIRES:
THE WALL STREET JOURNAL: As Angela Merkel raced to convince
Germans that their prosperity rests on preserving the euro, she
encounters strong resistance even from those in her own party who
have been among the country's most pro-Europe politicians.
THE WALL STREET JOURNAL EUROPE: These are some pretty big cracks
appearing in proposals to turbo-charge the EFSF, and it looks as
though the currency markets are ignoring them, hoping that a grand
plan for Europe is just around the corner.
===========================
STILL TO COME
ET/GMT COUNTRY/PERIOD
0830 1230 CAN Aug Industrial product & raw materials price indexes
0830 1230 CAN Jul Payroll employment, earnings & hours
0830 1230 US 2Q 3rd estimate GDP
0830 1230 US Sep 24 Unemployment Insurance Claims Report - Initial Claims
0830 1230 US Philadelphia Fed President Plosser speech at Business Leaders Forum
0945 1345 US Sep 25 Bloomberg Consumer Comfort Index
1000 1400 US Sep 17 DJ-BTMU U.S. Business Barometer
1000 1400 US Aug Pending Home Sales Index
1030 1430 US Sep 23 EIA Natural Gas Storage Report
1100 1500 US Sep Federal Reserve Bank of Kansas City Survey of Tenth
1630 2030 US Sep 19 Money Stock Measures
1630 2030 US Sep 28 Foreign Central Bank Holdings
1630 2030 US Sep 28 Federal Discount Window Borrowings
1901 2301 UK Sep Consumer Confidence Survey
1915 2315 JPN Sep Manufacturing PMI
1930 2330 JPN Aug Labor Force Survey
1930 2330 JPN Aug Household Spending
1900 2330 JPN Sep CPI (Tokyo), CPI ex-Food (Tokyo)
1930 2330 JPN Aug CPI (Nation), CPI ex-food (Nation)
1950 2350 JPN Aug Preliminary Industrial Production
===========================
OTHER NEWS:
HENNES & MAURITZ 3Q NET PROFIT DOWN: Hennes & Mauritz,
the world's second-largest fashion retailer, said its net profit
fell 15% in the third quarter and said it will open more stores in
fiscal 2010-2011, suggesting the European retail sector may be on
the road to recovery.
SPAIN POSTPONES IPO OF LOTTERY COMPANY: Citing unfavorable
market conditions, the Spanish government decided to postpone the
initial public offering of its national lottery operator. The 30%
stake sale was expected to value the company at EUR25 billion.
NORTH STREET CAPITAL TO BUY SPYKER CARS: U.S. private equity
firm North Street Capital agreed to buy Dutch carmaker Spyker Cars,
the Financial Times reported, citing a draft announcement of the
deal.
SPAIN'S IBERIA PLANS LOW-COST AIRLINE: The board of Spanish
airline Iberia is planning to approve the launch of a low-cost air
carrier for short and medium-haul flights, El Pais reported
ORACLE LASHES OUT AT AUTONOMY CEO OVER DEAL: Oracle fired back
at Autonomy, saying the British business-analytics company's chief
didn't tell the truth about an April meeting purportedly held to
shop the business around.
S&P SAYS REGULATION TO HIT EUROPE CORPORATES: The
introduction of new European regulation could keep banks and
insurers from lending to companies even if those companies are
willing to pay higher borrowing costs, Standard & Poor's
said.
POTENTIAL LME SALE DRAWS STRONG INTEREST: At least 10 interested
parties have approached the London Metal Exchange about a potential
buyout, but bidders will have to overcome LME shareholder fears
about possible changes to exchange operations.
-By James Leigh, Dow Jones Newswires; 4420-7842-9482;
james.leigh@dowjones.com