| CME bid spurs fears of merger monster
THE commodities boom is intensifying the merger mania among the world's financial exchanges. But the $US11 billion ($12.4 billion) bid by CME Group to acquire Nymex Holdings may fuel worries that consolidation is leaving the survivors with too much power. A purchase of the 135-year-old New York Mercantile Exchange's owner by CME, parent of the Chicago Mercantile Exchange, would create the largest exchange in the world, with a stock market value of about $US45 billion. And acquiring Nymex's crude oil futures, one of the largest commodity contracts in the world, would fill the last major hole in the 110-year-old Chicago exchange's product line-up, while squeezing remaining rivals in the energy market. The deal also highlights some unsettling consequences of the global scramble for alliances and market share in trading financial securities.
Dow industrials up triple digits, reversing earlier triple-digit loss
NEW YORK, Feb. 20, 2008 (Thomson Financial delivered by Newstex) -- The Dow industrials rallied triple digits in afternoon trading Wednesday, reversing triple-digit losses seen earlier, as oil's surge to record highs above the $100 mark could no longer dampen enthusiasm over a slight improvement in housing starts and Hewlett-Packard Co.'s (NYSE:HPQ) strong quarterly results and outlook. The Dow industrials was up 108 points at 12,445, with 22 of 30 components trading higher. Earlier in the session, the Dow was down as much as 109.50 points. On Tuesday, the blue chip barometer blew a 157-point intraday gain to close down 11 points as March crude oil futures closed settled above the $100 mark for the first time on the New York Mercantile Exchange. March crude was last up 73 cents at $100.74, paring gains to an earlier high of $101.32.
Shares End Low on Continued Credit Worries; Autos Slide
European shares closed lower on Friday for the second straight session, with financials under pressure amid continued worries about credit market exposure and as evidence of earnings damage emerged at Belgium lender Dexia. With crude oil futures rallying and dollar weakness continuing, auto producers including Porsche, Fiat and Renault also skidded lower. Porsche lost 5.5%, Fiat declined 3.2% and Renault slipped 2.6%. Overall, the pan-European Dow Jones Stoxx 600 index lost 0.9% at 362.72. The index has spent two-thirds of November's twelve trading sessions in the red, with Friday bringing the number of down days to eight because of the ... .
Oil nudges higher after $2 fall, eyes dollar
SINGAPORE: Oil rose marginally in thin trade on Friday after falling sharply a day ago on concerns about the US economy, the strengthening dollar and the market's failure to break above a key resistance level.
US light sweet crude futures for January delivery rose 36 cents to $92.61 a barrel after falling by $2.14 a day ago, halving gains from Wednesday when the market was buoyed by a US oil stock draw and a global central bank cash injection.
London Brent crude rose 41 cents to $92.53. Oil prices touched a two-week high of $94.85 a barrel on Wednesday and Thursday, which may have triggered the reversal.
"We have been feeling that there seems to be quite heavy resistance at $95 at the moment, we failed to break above it for two days, which is why people may have taken profits," said Tetsu Emori, a fund manager at Astmax Futures Co Ltd in Tokyo.
Oil price hits record $US100 a barrel
THE price of oil in New York has spiked to a record $US100.10 a barrel in the wake of supply concerns. The price for a barrel of light, sweet crude, eclipsed the record set in January of $US100.09 a barrel. The market rallied amid speculation that OPEC, which supplies about 40 per cent of the world's oil, would cut output at its March 5 meeting in Vienna, analysts said. Another factor was the ongoing row between Venezuela and ExxonMobil over nationalised assets of the US giant. "Oil futures surged higher amid technical buying underpinned by the ongoing saga between Venezuela and Exxon and on speculation surrounding OPEC's next move when they meet in March," said Sucden analyst Nimit Khamar. "There is clear evidence that speculators are coming back in to the oil market." Iran has declined to rule out that OPEC would cut production next month.
Oil price hits new record of $US101.32 a barrel
WORLD oil prices hit a new record of $US101.32 ($110.48) a barrel in Asian trading today on renewed concerns over global crude oil supplies. New York's main oil futures contract, light sweet crude for delivery in March, closed overnight up 73 cents at an all-time high of $US100.74. The latest price spike burst Tuesday's record price of $US100.10 and record close at $US100.01. In London, Brent North Sea crude for April delivery settled 14 cents lower at $US98.42, after striking a record $US98.70 Tuesday. Prices have soared amid growing speculation OPEC, which supplies about 40 per cent of the world's oil, may cut output at its March 5 meeting in Vienna, anticipating a fall in demand at the end of the northern hemisphere winter and a US economic slowdown, analysts said. "Supply worries and comments by some OPEC members that the group might not raise output at their March meeting provided the catalyst for the sharp rally," said Barclays Capital analyst Kevin Norrish.
Gold hits new high over $900
Gold hit a record high above $900 an ounce this morning as turmoil in financial markets and expectations of aggressive US rate cuts helped raise the metal's appeal. Comex gold futures touched $908.90 an ounce, surpassing Friday's record high of $900.10. The most active February contract was later quoted at $907.0, up $9.3 an ounce. Platinum hit a lifetime high, while silver touched a 27-year peak, buoyed by gold's rise. Spot gold hit an all-time high of $906.70 an ounce, higher than $895.70/896.50 in New York on Friday. Fears of further subprime mortgage-related write-downs in the US financial sector and inflation fears driven by record-high crude oil also attracted buying from investors and speculators. .
Oil price strikes record $US90
CRUDE oil prices struck a record $US90 a barrel in after-hours trading in New York overnight, amid increased tensions between Turkey's government and Kurdish rebels in northern Iraq. Traders said a weak US dollar and supply jitters had also stoked the price surge. The price gains came after New York's main oil futures contract, light sweet crude for delivery in November, had jumped $US2.07 to a record close of $US89.47 a barrel. London prices also pushed higher in after-hours trading, as Brent North Sea crude for December delivery soared to $US84.88 after the contract had earlier settled $US1.47 higher at $US84.60. Oil prices have pushed higher this week amid geopolitical angst related to the Turkey-Iraq border and a weakening dollar, which makes dollar-priced commodities such as oil cheaper for buyers with stronger currencies and therefore lifts crude demand.
Thomson Financial Europe AM at a glance share guide: Shares mixed, oil ...
Oil futures ended an erratic session higher Tuesday as investors focused on expectations that the Federal Reserve will cut interest rates and OPEC will hold production steady, and shrugged off estimates that domestic crude inventories rose last week. METALS: Gold prices fell as the dollar was mixed against major European currencies. EVENTS: FOMC meeting (interest rate decision due 1915 GMT) US weekly API, Department of Energy oil inventory data (0330 GMT) Jan ADP national employment report (1315 GMT) Q4 GDP (advance) (1330 GMT) Kraft Foods Inc Q4 results. EPS forecast 44 cents vs 51 (before market opens) Merck & Co Inc Q4 results. EPS forecast 73 cents vs 50 (before market opens) Allergan Inc Q4 results. EPS forecast 58 cents vs 51 (1700 GMT) Amazon Com Inc Q4 results. EPS forecast 48 cents vs 23 (1700 GMT) Boeing Co Q4 results.
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