World markets - 23 September 2005
September 23, 2005
Pacific rim
Hong Kong - Asian stocks closed mostly lower yesterday, with sentiment hit by a fresh spike in oil prices and concern at the hard line taken by the US Federal Reserve on inflation when it hiked interest rates on Tuesday, dealers said.
Tokyo marked time with a modest loss of 0.28 percent ahead of a public holiday today. "Investors took profits on a weaker performance in New York and on rising oil prices, caused by Hurricane Rita. Some technical indicators also signalled investors would sell at current levels," said Koichi Ogawa, the chief fund manager at Daiwa SB Investments.
But Chinese shares fell 2.37 percent, adding to sharp losses on Wednesday on fresh concerns about ongoing state-owned stock sales programmes after reports of government divisions over what some see as giving away state assets free.
Seoul eked out a gain of 0.28 percent for another record finish, this time just short of the historic 1200 point level, which investors seem determined to cross. But Mumbai tumbled 3.13 percent, failing to recover the lost ground as investors opted for safety rather than push the market's record-breaking run.
Europe
London - European share indices pared intraday losses yesterday but still closed lower for the second day, with insurers such as Axa and Hannover Re hit by worries about Hurricane Rita.
Shares in the world's largest reinsurer, Munich Re, lost 1.4 percent, Axa fell 1.5 percent and Hannover Re shed 4.7 percent.
"There is uncertainty over claims from Katrina and now there is uncertainty over what claims may come out of Rita," said Frank Stoffel, an insurance analyst at West LB. Philips fell 2.4 percent as dealers cited reports of a bigger-than-expected glut of flat-panel monitors and LCD televisions, and after the announcement of the restructuring at Sony highlighted problems in consumer electronics.
Shares in Spanish oil firm Repsol rose 3.4 percent to a record 27 euro (R208) on market talk that rival BP would make a bid, possibly pitched at 30 euro a share. Both companies declined to comment, while dealers were sceptical that BP would consider a bid for Repsol.
US
New York - Stocks turned lower yesterday as Wall Street hunkered down and waited for Hurricane Rita to hit land.
Investors fear that Rita could compound the damage done in August by Hurricane Katrina, leading to higher oil prices and a dramatic drop in consumer spending.
"Everyone is just sitting back and watching their weather maps," said Paul McManus, a senior vice-president and director of research at Independence Investment.
The labour department reported that the number of Americans thrown out of work by Katrina rose by 103 000 last week, bringing the total seeking jobless benefits because of the storm to 214 000.
Meanwhile, the Conference Board said its index of leading economic indicators fell for the second straight month in August as consumer sentiment weakened. The data were collected before Katrina's devastation of the Gulf Coast.
Delta Air Lines, the third-largest US carrier, rose 2c to 79c (R5) after it said it would cut up to 9 000 jobs, reduce staff pay and change its network to focus more on international flying as it moved to restructure its costs in bankruptcy. - AFP- Reuters- Sapa-AP
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