Total Investor

US Equities held onto gains as the IMF announced its intention to raise US$500 billion to insulate the world economy from Europe’s debt crisis. Europe dominated the news as Germany cut its 2012 growth forecast and Britain’s unemployment rate rose to 8.4%, the highest since 1995. Greek creditors became more confident of reaching a deal.

European Equities closed little changed. Financials – BNP Paribas ( 32.06, -1.32%), Deutsche Bank ( 29.95, +0.27%), Unicredit ( 2.98, – 1.20%) – fluctuated around the market. Societe Generale ( 4.58, +6.02%) and Credit Agricole ( 4.38, +4.03%) were top movers after reports the French regulator would tell banks to raise write downs on Greek debt to 70% to 75%.

Treasuries came down as thirty-year yields rose the most in two days as Greece returned to talks with creditors, after talks broke down last week over the interest rate offered on new bonds. Germany sold twoyear notes at a record-low yield while Portuguese yields fell on the country’s biggest debt sale since its bailout last year.

Banks were winners with JPMorgan Chase ($36.54, +4.67%) and Bank of America ($6.80, +4.94%) both up. Goldman Sachs ($104.31, +6.79%) was another performer after it posted quarterly earnings that beat expectations, nonetheless revenue fell by 58% as investment banking revenue declined. US Bancorp ($29.08, +1.08%), edged up after the company said its net income increased 40% mainly from its core business. Other Commercial Banks – Citi ($29.03, +2.89%), Wells Fargo ($30.24, +1.39%) – mostly went with the market.

Yahoo rallied ($15.92, +3.18%) after cofounder and former CEO, Jerry Yang, left the company, as part of a reported broader boardroom shake-up. Ebay ($30.34, -0.62%) was down and will post earnings after the market closes. TransCanada ($41.41, -0.79%) fell on news that the US government would reject the Keystone XL oil pipeline.

US Equities climbed up after positive GDP results from China, forecast beating consumer sentiment in Germany, and successful bond auctions in Europe. A New York manufacturing survey also exceeded expectations, adding to the optimism that gripped Australia the day before.

European Equities closed higher, the pack predictably led by carmakers and miners, who had the most to gain from increases in demand. Financials – BNP Paribas ( 32.49, +0.57%), Deutsche Bank ( 29.87, +2.22%), Unicredit ( 3.01, +2.80%) – all performed well. Royal Bank of Scotland (2,485p, +1.76%) was up after it said it would sell its aircraft leasing business to Sumitomo Mitsui Financial Group.

Treasuries rose pushing yields down as the US began four consecutive days of purchasing debt without any new issuance for the first time since June. The push also came on the back of rising Italian and Spanish bonds as successful auctions from the prior two, Greece, and Belgium, eased sovereign default concerns. German bunds also dropped after the ZEW consumer confidence survey beat expectations.

Banks lagged the market as Citigroup ($28.25, -8.10%) slid after its quarterly earnings fell by 11% and missed expectations. Wells Fargo ($29.81, +0.68%) rose after it reported a 20% increase in fourth quarter profit, beating expectations by a mere penny. Kraft Foods ($38.13, +0.95%) said it plans to cut 1,600 positions as it works toward splitting into two separate North-American grocery and worldwide snack businesses.

Materials fluctuated as Major Miners – Alcoa ($9.76, -0.41%), Peabody ($35.30, -1.07%), United States Steel ($27.33, -0.36%) – all took hits. Newmont (60.94, -3.86%) declined on its guidance of lower copper production and higher costs in 2012. Freeport ($43.05, +2,50%) tracked the market thanks to Dr Copper. Energy and health care were the standouts of the day.

US Equities dipped, ending a four-session advance after speculation circled the market that Standard & Poor’s would downgrade European government credit ratings, offsetting more improved data on the health of the economy. After the closing bell, the rating agency France lost its AAA rating, while eight other states were also downgraded. Hence, the Euro fell within reach of making a new 16-month low against the  Dollar, sending February Gold modestly lower to $1630/oz. Volume improved, but was still below average. Participants will begin returning this week.

European Equities mostly fell given the speculation that S&P would cut regional credit ratings as several press reports suggested France would loose its AAA rating. Hence, French Bonds dipped sharply, with 10-Year Yields climbing as much as 13 basis points from session lows. Financials – Barclays (201.20p, +4.0%), BNP Paribas ( 31.79, +2.5%), Deutsche Bank (28.95, +1.5%), Unicredit ( 2.92, +0.5%) – were still bid as the EURIBOR OIS spread narrowed 2 basis points to a 3-month low. BHP Billiton (2045p, -0.5%) & Rio Tinto (3561p, +0.4%) fluctuated.

Treasuries pushed into positive territory in Europe as Italian auctions failed to live up to the strength of Thursday’s Spanish sale. Another push higher came after the trade deficit worsened, although the real bullish impetus came when rumours began circulating that Eurozone downgrades were imminent. The 10-30 Year sectors led the advance.

JPMorgan Chase ($35.92, -2.5%) declined after its quarterly earnings fell by 23 percent on lower investment-banking fess and revenue from trading stocks and bonds. Jamie Dimon said the investment-banking business is ‘naturally volatile’ and would eventually bounce back. For the year, the company’s net income rose to a record $19 billion. Fellow Commercial Banks – Bank of America ($6.61, -2.7%), Citi ($30.74, – 2.7%), Wells Fargo ($29.61, unch) – mostly fell ahead of their results.

Materials turned south as Metals & Miners – Alcoa ($9.80, -1.3%), Cliffs Resources ($70.25, -1.6%), Freeport ($42.00, -1.1%), Newmont ($63.39, -1.0%) – tracked commodity prices lower. Patriot Coal ($7.87, -12.7%) tipped as the coal miner said it will idle production on reduced demand. Chevron ($106.09, +1.1%) and Exxon 84.88, +0.2%) climbed.

US stocks dropped after three days of sharp gains as Warren Buffett’s $5 billion investment in Bank of America failed to stoke investors’ appetite for risk ahead of Federal Reserve Chairman Ben Bernanke’s speech on Friday.

The Dow Jones Industrial Average dropped 170.89 points, or 1.51%, to 11149.82, in a broad decline. All but two of the Dow components dropped. Bank of America bucked the trend, rising 66 cents, or 9.4%, to $7.65 after Buffett’s disclosure, although at one point it gained as much as 26%.

The Standard & Poor’s 500-stock index lost 18.33 points, or 1.56%, to 1159.27. All 10 of the S&P 500′s sectors finished in the red, led lower by energy and consumer discretionary stocks.

The Nasdaq Composite fell 48.06 points, or 1.95%, to 2419.63, as the resignation of Apple Chief Executive Steve Jobs weighed on the technology sector.

Shares of Apple fell $2.46, or 0.7%, to $373.72 after Jobs said he was resigning as CEO. The stock dropped as much as 3% before paring losses.

Stocks opened higher, with the Dow rising as much as 86 points. But the market quickly lost its early gains and turned sharply lower following big declines in European equities.

Investors also worried about the condition of Harrisburg, Pa. The financially strapped state capital will likely miss a bond payment next month if a deal to secure a US$7.5 million loan falls through, a spokesman for the mayor said.

Copper closed above $9,000 a metric tonne for the first time in almost three weeks on the London Metal Exchange as the complex moved higher amid tentative economic confidence and thin trading conditions.

Gold snapped its two-day sell-off, rising as traders viewed the market’s steep declines as an opportunity to buy and as falling equities markets renewed investor demand for refuge assets.

Oil prices settled modestly higher, pulled up by gasoline futures, which soared 3.1% on fears that Hurricane Irene could disrupt supplies along the East Coast.

Australian Stock Prices Overnight

In New York, News Corp fell by US$0.30 to US$16.71, equivalent to A$16.03, A$0.21 below its last close on the ASX.

ResMed fell by US$0.70 to US$29.00, equivalent to A$2.78, A$0.02 below its last close on the ASX.

In London, Rio Tinto fell 5.5 pence to £35.00, A$0.09 lower in Australian currency terms.

BHP-Billiton rose 11.5 pence to £19.44, A$0.18 higher in Australian currency terms.

Henderson Group Plc rose 1.9 pence to £1.27, A$0.03 higher in Australian currency terms.

US stocks notched a third straight day of gains as an upbeat durable goods report set a positive tone while investors await Federal Reserve Chairman Ben Bernanke’s highly anticipated speech later this week.

The Dow Jones Industrial Average gained 143.95 points, or 1.29%, to 11320.71. All but one of the Dow’s 30 components closed higher. The index has surged nearly 5% this week and has risen in seven of the past 10 trading days.

Bank of America led blue-chip gains, surging 69 cents, or 11%, to $6.99. The stock had been battered in recent weeks amid worries over mortgage-litigation woes and the possibility of more capital raises. But analysts say the bank is much sounder now than it was before the financial crisis. Shares are still down 28% this month.

The Standard & Poor’s 500-stock index gained 15.25 points, or 1.31%, to 1177.60. Financial and utility stocks registered the biggest gains in a broad rally. All 10 of the S&P 500′s sectors rose. The technology-heavy Nasdaq Composite rose 21.63 points, or 0.88%, to 2467.69.

The recent gains come as investors hope Bernanke’s much-awaited speech will offer clues on how the central bank prepares to combat the slowing economy. That optimism may be fleeting, however, as the Fed hasn’t given signs that it is ready to enact additional stimulative measures.

Stocks got a jolt early as demand for long-lasting manufactured goods bounced back in July, giving the fragile economy a much-needed boost.

Orders for factory goods rose 4.0% from the prior month to $201.45 billion, according to the Commerce Department. However, orders for non-defence capital goods excluding aircraft, which economists use to gauge business spending on new equipment, dropped by 1.5%.

Base metals closed largely flat on the London Metal Exchange, supported by encouraging US durable goods data yet still seemingly inextricably tied to the gyrations of the global stock markets.

Oil spent most of the day in positive territory after the government said US oil stockpiles fell last week as refiners ratcheted up operations. But prices suddenly turned lower during the last 15 minutes of open outcry trading, and the selling intensified toward the close.

Gold plunged below $1,800, a dramatic reversal from a record-setting run.

Australian Stock Prices Overnight

In New York, News Corp rose by US$0.49 to US$17.01, equivalent to A$16.25, A$0.65 above its last close on the ASX.

ResMed rose by US$0.41 to US$29.70, equivalent to A$2.84, A$0.05 above its last close on the ASX.

In London, Rio Tinto rose 79.5 pence to £35.06, A$1.24 higher in Australian currency terms.

BHP-Billiton rose 42.5 pence to £19.33, A$0.66 higher in Australian currency terms.

Henderson Group Plc was unchanged at £1.26.

US stocks surged as another dose of bleak economic data raised hopes that the Federal Reserve will take additional measures to stimulate the economy.

The Dow Jones Industrial Average rose 322.11 points, or 2.97%, to 11,176.76. The steep gains were disturbed momentarily by a magnitude 5.8 earthquake centred in Virginia. Tremors were felt on the East Coast, through Washington, D.C., and up to New York City. But the earthquake failed to rattle investors, as stocks climbed in the final trading hour.

The Standard & Poor’s 500-stock index rose 38.53 points, or 3.43%, to 1162.35, as energy, technology and consumer discretionary stocks registered the strongest gains. All 10 of the S&P 500′s sectors finished in positive territory. The technology-oriented Nasdaq Composite rallied 100.68 points, or 4.29%, to 2446.06.

Another round of dismal economic reports prompted hopes that Federal Reserve Chairman Ben Bernanke will employ more accommodative measures to boost the economy.

New-home sales fell more than expected in July to an adjusted rate of 298,000, the lowest level in five months, as housing continued to struggle amid a sluggish economy. Sales in June were also revised lower. July sales were expected to fall to 310,000.

US employers in July took 1,579 mass-layoff actions, an increase of 3% or 47 layoff “events” from the previous month on a seasonally-adjusted basis, the Labor Department said.

Economic activity among manufacturers in the central Atlantic region also fell sharply in August, as the Richmond Federal Reserve Bank’s manufacturing general-business index tumbled to -10 in August from -1 in July.

The downbeat reports have put more of an emphasis on Bernanke’s scheduled speech in Jackson Hole, Wyoming on Friday. Investors hope Bernanke will be more open to new easing measures, but at the same time are unclear as to what the central bank may have in store.

Many analysts say the Fed doesn’t have as much political support to announce a third full-fledged bond-buying program, commonly known as quantitative easing, or QE3.

Base metals closed mostly higher on the London Metal Exchange as the US dollar continued to flounder and firmer equity markets boosted risk sentiment, a further sign of the metals’ recent reliance on exogenous factors for direction.

Oil rebounded on the back of stronger equities, but the latest fighting in Libya kept a lid on the rally as rebels made strides toward securing the capital.

Gold fell, snapping a rally that took prices to a record just shy of $1,900 an ounce as profit-taking ensued and as global equity markets posted gains.

Australian Stock Prices Overnight

In New York, News Corp rose by US$0.84 to US$16.52, equivalent to A$15.71, A$0.29 above its last close on the ASX.

ResMed rose by US$1.08 to US$29.29, equivalent to A$2.78, A$0.03 above its last close on the ASX.

In London, Rio Tinto rose 5.0 pence to £34.26, A$0.08 higher in Australian currency terms.

BHP-Billiton rose 11.5 pence to £18.90, A$0.18 higher in Australian currency terms.

Henderson Group Plc rose 1.0 pence to £1.26, A$0.02 higher in Australian currency terms.