By Adria Cimino Jan. 29 (Bloomberg) -- European<http://mail.google.com/apps/quote?ticker=SXXP%3AIND> stocks declined for the first time in four days and U.S. index futures fell on concern the global economic slump is deepening. Asian shares gained.
Xstrata Plc dropped 11 percent and Cookson Group Plc<http://mail.google.com/apps/quote?ticker=CKSN%3ALN> tumbled 46 percent after the companies said they will raise capital. London Stock Exchange Group Plc sank 5.2 percent as Citigroup Inc. advised investors to sell the shares. U.S. reports today may show orders for durable goods decreased for the fourth time in five months and sales of new houses slid to a 26-year low, according to economists. The Dow Jones Stoxx 600 Index retreated 1.2 percent to 192.34 at 8:12 a.m. in London, bringing the monthly decline to 2.9 percent. Futures on the Standard & Poor's 500 Index expiring in March dropped 1 percent. "Sentiment is going to be instrumental in determining whether traders elect to start booking some profits off the relatively modest rally we've seen of late,"Matthew Buckland<http://search.bloomberg.com/search?q=Matthew+Buckland&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>, a dealer at CMC Markets in London, wrote in a note. Stocks worldwide climbed yesterday as President Barack Obama<http://search.bloomberg.com/search?q=Barack+Obama&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1> prepared to set up a so-called bad bank to absorb toxic investments and Yahoo! Inc. and SAP AG reported better-than- estimated earnings. The MSCI Asia Pacific Index rose 1.2 percent today, gaining for a third day. For the first time during the credit crisis, the Federal Open Market Committee's statement yesterday indicated concern about the worldwide economy weakening "significantly," with "some risk" that inflation would remain below ideal rates. The Fed signaled it's moving closer to buying long-term Treasuries and expanding its $600 billion program to buy home-finance debt. Annual Loss The Stoxx 600 slumped 46 percent last year as financial firms racked up more than $1 trillion in credit-related losses and writedowns and the U.S., Japan and Europe entered the first simultaneous recessions since World War II. European Central Bank President Jean-Claude Trichet<http://search.bloomberg.com/search?q=Jean-Claude+Trichet&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1> said in a Bloomberg Television interview in Davos, Switzerland that the bank's next "important" meeting will be in March, suggesting policy makers will avoid the interest-rate cut some investors expect next week. Xstrata dropped 11 percent to 552 pence. The mining company plans to raise 4.1 billion pounds ($5.8 billion) in a two-for-one rights offer to pay down debt and buy Colombian coal assets from Glencore International AG, its largest shareholder. Cookson plummeted 46 percent to 46 pence. The biggest maker of ceramic linings for metal smelters plans to raise about 240 million pounds in a share sale to reduce debt and remain within banking terms. Stock Exchanges European stock exchanges slipped after Citigroup cut its recommendations, citing a weak trading volume outlook for the start of the year. London Stock Exchange <http://mail.google.com/apps/quote?ticker=LSE%3ALN> dropped 5.2 percent to 483.5 pence. Europe's third-largest securities bourse was downgraded to "sell" from "hold," while Bolsas y Mercados Espanoles was lowered to "sell" from "buy." The operator of the Spanish stock exchange fell 2 percent to 17.75 euros. Essilor International SA slumped 6.1 percent to 28.55 euros after the world's largest maker of eyeglass lenses predicted 2009 sales will increase<http://mail.google.com/apps/quote?ticker=EF%3AFP> mainly as the result of acquisitions. Grupo Ferrovial SA lost 1.9 percent to 21.21 euros as the owner of airport operator BAA Ltd. was downgraded to "hold"<http://mail.google.com/apps/quote?ticker=FER%3ASM> from "buy" at ING Groep NV. Thomson SA tumbled 12 percent to 1.15 euros. The unprofitable French maker of television set-top boxes will sell assets<http://mail.google.com/apps/quote?ticker=TMS%3AUS> and plans discussions with creditors and potential investors as part of a reorganization to reduce its debt. http://www.bloomberg.com/apps/news?pid=20601087&sid=axtEosdSX4eI&refer=home -- Those who work at a thing heart and soul not only achieve success in it but through their absorption in that they also realize the supreme truth—Brahman. Those who work at a thing with their whole heart receive help from God. Swami Vivekananda --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
