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Hitt og þetta 18. september 2006

DJ EUROPEAN MORNING BRIEFING: Reaction To G7 Muted So Far

US SUMMARY: Forthcoming Fed Meeting Keeps Markets On Edge

DJIA 11560.77 gain 33.38 up 0.3%
NASDAQ 2235.59 gain 6.86 up 0.3%
S&P 500 1319.87 gain 3.59 up 0.3%
Dow Future 11669.00 gain 9.00 up 0.1%
NASDAQ Future 1654.00 gain 2.00 up 0.1%
S&P Future 1332.75 gain 0.50 0.0%
Euro-USD 1.2662 gain 0.0018 up 0.1%
10-Yr US Treasury: 4.80% unchanged
(Futures values, Treasury, EUR/USD Data as of 0450 GMT)
Wall Street expects the Federal Reserve will leave interest rates untouched when it meets Wednesday. But stock markets are still anxious to learn how the central bank perceives the overall economy. Treasurys and the dollar may see narrow ranges until then. Lower oil of late encourages hopes for the Fed to hold pat.

STOCKS: Scott Fullman, director of investment strategy at Hapoalim Securities, contends that if the Fed meeting lacks any surprises, the markets could be poised to enter a strong period.

"We are optimistically cautious here going into the next five weeks or so," he said, "The markets are showing some real resilience. I'm looking for new highs with the Dow and the S&P before the end of the year."

On Tuesday, the Commerce Department's report on August housing starts is expected to provide the latest evidence that the housing sector is cooling.

Last Friday, investors sent stocks up to near their 2006 highs after benign inflation data and low oil prices boosted confidence that the Fed will keep interest rates unchanged at its meeting Wednesday.

FOREX: With the dollar higher against the yen as the Fed's session looms, investors can look forward to a potentially bumpy Monday while the G7 and IMF wind up their meetings.

Bank of Japan Governor Toshihiko Fukui said Sunday that U.S. Federal Reserve Board Chairman Ben Bernanke is confident about leading the U.S. economy to a soft landing, Kyodo news agency reported.

BONDS: The Fed's meeting Wednesday will put the Treasurys market on hold, but last Friday's tame inflation data offers hope for steady rates.

Overall consumer prices came in 0.2% higher in August, while the core index, excluding food and energy prices, also rose 0.2%. Both measures were in line with economists' expectations

Kansas City Fed President Thomas Hoenig's Hoenig said Friday, "Our projections are that we grow at, or slightly below, our long run potential," and "that gives us some room for inflation to moderate. As far as interest rates go, we'll just have to wait and see."

U.S. Treasury bond prices ended mostly lower as investors closed pre-weekend positions.

OIL: Prices Friday nudged up 11 cents to $63.33, but after falling in eight of the past nine trading sessions. That recent decline is expected to figure in the Fed's decision.

ASIAN SUMMARY: G7 Comments Lean Toward Stronger Yen

USD-Yen 117.86 gain 0.60 up 0.5%
AUD-USD 0.7524 gain 0.0003 up 0.04%
Nikkei 225 Closed
Hang Seng 17396.37 gain 158.70 up 0.9%
S&P/ASX 200 5018.90 gain 21.70 up 0.4%
Taiwan Index 6876.45 gain 195.30 up 2.9%
S.Korea Kospi 1376.72 gain 15.62 up 1.2%
JGB Yield Closed
(All values as of 0450 GMT)
STOCKS: With Japan closed, other markets gained after the G7's encouraging statements over the weekend.

Taiwan was higher as investors bid up technology shares amid signs that political tensions surrounding beleaguered President Chen Shui-bian were easing.

FOREX: The dollar and euro are higher against the yen, as traders test a push by Europe and Japan to talk up prospects for Japan's economy and the yen at the G7 meetings.

Japan's finance minister appeared to signal a shift in his view on the yen, indicating that the country is willing to accept a rise in its currency as the Japanese economy recovers.

Japan's economy should continue to grow and the Bank of Japan will ensure an "accommodative" monetary environment that allows for "sustainable growth under price stability", Bank of Japan Governor Toshihiko Fukui said.

European Central Bank President Jean-Claude Trichet said that the G7 believed the value of the yen would reflect more broadly based growth and higher interest rates in the Japanese economy.

G7 officials also renewed their call on China and other countries with large current account surpluses to allow greater flexibility in their currencies' exchange rates.

BONDS: Government debt of Asian area markets was little changed for the most part, with Japan closed.

METALS: Spot gold is up around $3.40 at around $582.15, but could run into selling pressure at around $583 and up, a dealer say. Slightly higher oil helps for now. Fears of more supply disruptions from labor strife and other causes boosted copper.

OIL: Prices rose 37 cents to $63.70 Monday, on the belief that oil cartel OPEC may slash output after forecasting reduced demand ahead of the Northern Hemisphere's peak winter months.

EUROPEAN OUTLOOK: Shares To Open Slightly Lower

Euro-USD 1.2662 gain 0.0018 up 0.1%
Stlg-USD 1.8806 gain 0.0018 up 0.1%
USD-Franc 1.2546 loss 0.0020 dn 0.2%
(All values as of 0450 GMT)
European shares are likely to edge lower with government bonds moving in the opposite direction. The euro is seen slightly higher against the dollar and yen.

STOCKS: European markets are likely to come under early selling pressure, although merger news may spark some buying in the vehicle and telecom sectors.

U.K. spreadbettor GFT Global Markets is calling the FTSE down 1 point at 5876, the DAX down 2 at 5935 and the CAC down 3 at 5141.

In M&A news, German truckmaker MAN Monday said it would reap at least EUR500 million a year in synergies within three years if it succeeded in taking over Swedish rival Scania. MAN said it bid EUR9.6 million for Scania, which would be accretive to MAN earnings in the first year.

Telecom Italia said it has agreed to buy AOL Germany's internet access business for EUR675 million.

On Friday, shares of DaimlerChrysler fell more than 5% after the maker of cars and trucks cut its 2006 outlook, while broader European markets ended flat-to-higher after U.S. core CPI data put a lid on rate-hike fears.

In German election news, local election results reflected disenchantment with Chancellor Angela Merkel's left-right coalition government at the federal level. In Sweden, a center-right opposition vowing to streamline the famed welfare state ousted the Social Democratic government in a close parliamentary election, ending 12 years of leftist rule.

FOREX: Bearish technicals and prospects for a euro-zone slowdown next year may keep the euro's gains restrained. Support comes at $1.2560, resistance at around $1.2750.

BONDS: Investors may focus Monday on prospects for an economic slowdown next year, and that could encourage some buying.

Italian Finance Minister Tommaso Padoa-Schioppa said G7 fears of a slowdown in the world economy came from concerns that the euro zone recovery would be insufficient to offset expected weakness in the U.S.

But European Central Bank board member Mario Draghi said Sunday that interest rates in the euro zone were still very low.

Dealers said the data focus this week will be on the German ZEW business expectations indicator and Belgian business confidence survey.

The forward-looking ZEW survey slumped into negative territory in August and is expected to slide even further in September as concerns over the hike in the value-added tax due in January continue to bite.

Belgian business confidence for September is closely watched because it is seen as a good indicator of euro-zone confidence. Due Friday, the index is likely to show a further decline

The market should absorb new bond supply from France because coupon and redemption payments amount to twice the EUR7 billion-EUR8 billion of scheduled issuance, analysts at Commerzbank said.

U.K. Chancellor of the Exchequer Gordon Brown said U.K. policymakers would remain vigilant to inflationary risks. He said inflationary pressures were building from higher commodity and services prices, and from less deflationary impact of cheap imported goods from Asia.

"We are going to be vigilant in all (these) areas,' Brown said. "That is why I supported the pro-active, forward-looking action taken by the Bank of England in August."

This week focus will be Bank of England policy minutes, with analysts looking for an 8-0 vote to keep interest rates unchanged at 4.75% earlier this month.

European government bond prices rose Friday on the release of supportive U.S. data.

CALENDAR: Monday, Sep 18: ECB Speakers; G7, IMF

GMT Expected Previous
0900 EU Jul Euro-Zone Indus Production +0.3%MM -0.1%MM
+4.2%YY +4.3%YY
1230 US 2Q Current Account -$214.5B -$208.7B
1300 US Jul Treasury Intl Capital Flows $75.1B
1500 EU ECB Member Tumpel-Gugerell speaks at
Swedbank economic outlook seminar in Stockholm
1700 US Sept NAHB Housing Index 32
N/A US Pres Bush attends meetings in New York
ahead of UN General Assembly

-By Dennis Baker; Dow Jones Newswires; dennis.baker@dowjones.com

(MORE TO FOLLOW) Dow Jones Newswires

September 18, 2006 01:45 ET (05:45 GMT)

Copyright (c) 2006 Dow Jones & Company, Inc.


18 Sep 2006 05:45 GMT =DJ EUROPEAN MORNING BRIEFING: Corporate Events

Collins Stewart Tullett (CSTL.LN): 1H Earnings
Note: Collins Stewart Tullett is expected to report a strong 1H rise in pretax profit from last year's GBP39.9M, helped by strong interdealer broking and a healthy flow of IPO activity, says analyst. Analysts also looking for additional information on plan to demerge stockbroking unit from interdealer brokerage this month, with GBP300M capital return to shareholders.


OTHER SCHEDULED EVENTS:

Affine (3610.FR): 1Y Earnings

Albemarle & Bond (ABM.LN): FY Earnings

BB Biotech (BIO.EB): AGM & EGM

BioMerieux (1009647.FR): 1H Earnings

Burren Energy (BUR.LN): 1H Earnings

City of London Investment (CTY.LN): FY Earnings

CS Communication & Systemes (7896.FR): 1H Earnings

Debenhams (DEB.LN): Trading Update

Dialight (DIA.LN): 1H Earnings

Hi-Media (7598.FR): 1H Earnings

JPMorgan Mid Cap Investment (JMF.LN): FY Earnings

Kaba (KABN.EB): FY Earnings

Oxonica (OXN.LN): FY Earnings

Petrofac (PFC.LN): 1H Earnings

Planet Group (PPTR.LN): 1H Earnings

Pure Wafer (PUR): FY Earnings

Real Good Food (RGF.LN): 1H Earnings

Ricardo (RCDO.LN): FY Earnings

Rightmove (RMV.LN): 1H Earnings

Speedy Hire (SDY.LN): Trading Update

Synairgen (SNG.LN): FY Earnings

Tex Holdings (TXH.LN): 1H Earnings

Wilmington Group (WIL.LN): FY Earnings


(MORE TO FOLLOW) Dow Jones Newswires

September 18, 2006 01:45 ET (05:45 GMT)

Copyright (c) 2006 Dow Jones & Company, Inc.


18 Sep 2006 05:45 GMT =DJ EUROPEAN MORNING BRIEFING: Div Payments & Ex Div Dates

AstraZeneca (AZN.LN): 1H 2006 Dividend Payment Date

Clas Ohlson (CLAS-B.SK):FY 2005 Dividend Payment Date

Richemont (CFR.VX): FY 2005 Ex-Dividend Date

Richemont (CFR.VX): FY 2005 Dividend Payment Date

Richemont (CFR.VX): Special Ex-dividend Date

Richemont (CFR.VX): Special Dividend Payment Date

Delcam (DLC.LN): 1H 2006 Dividend Payment Date

Electric & General Inv (ENG.LN): FY 2005 Dividend Payment Date

Frontline (FRO.LN): 3Q 2006 Dividend Payment Date

St James Place Capital (STJ.LN): 1H 2006 Dividend Payment Date


(END) Dow Jones Newswires

September 18, 2006 01:45 ET (05:45 GMT)

Copyright (c) 2006 Dow Jones & Company, Inc.

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