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Hitt og þetta 21. september 2006

DJ EUROPEAN MORNING BRIEFING: Slowdown Fears Hamper Stocks


US SUMMARY: Stocks Rally As Fed Holds Rates Steady

DJIA 11613.19 gain 72.28 up 0.6%
NASDAQ 2252.89 gain 30.52 up 1.4%
S&P 500 1325.18 gain 6.87 up 0.5%
Dow Future 11701.00 gain 4.00 0.0%
NASDAQ Future 1663.25 loss 0.50 0.0%
S&P Future 1336.25 loss 0.25 0.0%
Euro-USD 1.2721 gain 0.0033 up 0.2%
10-Yr US Treasury: 4.74% up 0.01
(Futures values, Treasury, EUR/USD Data as of 0450 GMT)
Wall Street closed higher Wednesday, holding on to its gains after the Federal Reserve kept short-term interest rates steady, as expected, but left the door open to additional rate hikes. The dollar, Treasurys and oil fell.

STOCKS: The Fed said it is seeing a continuing moderation in economic growth, partly reflecting the cooling of the housing market. It added that inflation pressures seem likely to moderate over time, but said some inflation risks remain.

"The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information," the Fed said in its policy statement.

The Fed's move "sets a great stage for better market performance going into the end of the year, although the market may need to take a breather for the next day or two," said Steve Neimeth, senior portfolio manager for AIG SunAmerica Asset Management.

FOREX: The dollar continues lower, after a lackluster but largely expected response to the Fed's decision Wednesday to keep U.S. interest rates on hold.

With few changes to the central bank's August 8 statement, the Fed signaled little new to the currency market, analysts said, resulting in the relatively muted dollar response.

The central bank shifted its focus slightly more towards the slowing U.S. housing market, altering the language in its statement from "a gradual cooling," to "cooling."

The Fed also trimmed its references to the lagged negative impact of higher energy prices and interest rates on economic growth.

"The tacit message is therefore that the Committee is increasingly acknowledging that the slowdown is proving more severe than they assumed a few months ago," Naomi Fink, currency strategist at BNP Paribas in New York said, and "that the downside risks to growth that the (Federal Open Market Committee) has acknowledged all year have begun to crystallize to a greater extent."

The Fed also acknowledged softening energy prices as a positive influence on inflation pressures, yet it maintained its position that "some inflation risks remain," as most in the market had expected.

BONDS: Shorter-dated U.S. Treasury bond prices ended lower Wednesday after a second straight pause in interest rate hikes by the Federal Reserve and a Fed statement that was virtually unchanged from August.

John Spinello, Treasurys strategist at Jefferies & Co., said investors were looking for an even more dramatic assessment of the decline in the housing market, and a more dovish interpretation of the overall economic situation.

OIL: Futures fell on a government report of increased supplies of crude and distillates, including heating oil. A barrel of light crude settled at $60.46, down $1.20, on the New York Mercantile Exchange.

ASIAN SUMMARY: Stocks Higher; Exporters Lead Gainers

USD-Yen 117.08 loss 0.40 dn 0.3%
AUD-USD 0.7561 gain 0.0040 up 0.5%
Nikkei 225 15773.55 gain 54.88 up 0.4%
Hang Seng 17583.46 gain 70.50 up 0.4%
S&P/ASX 200 4959.70 loss 2.80 dn 0.1%
Taiwan Index 6893.91 gain 16.14 up 0.2%
S.Korea Kospi 1368.18 gain 1.74 up 0.1%
JGB Yield 1.7000% up 0.0300
(All values as of 0450 GMT)
STOCKS: Japanese stocks were higher Thursday as scattered profit-taking lessened the positive impact of an overnight rise on Wall Street and fall in oil prices.

Export-oriented stocks such as technology and automaker issues led gainers, while banks paced decliners. Markets see-sawed most of the session, as investors remained nervous about oil prices and global economic growth.

FOREX: The yen was little changed against the dollar, which is in a narrow Y116.50-117.50 range.

The Chinese yuan hit a new post-revaluation high against the dollar Thursday on the over-the counter market, in what currency traders said may be a development sanctioned by the authorities as a goodwill gesture during the ongoing visit of U.S. Treasury Secretary Henry Paulson.

In another apparent conciliatory move, China's central bank governor reiterated that China will gradually push forward with yuan convertibility under the nation's capital account.

In Korea, a senior official at the Bank of Korea strongly suggested that the government may intervene in the foreign exchange market Thursday to fend off any speculative actions boosting the local currency.

BONDS: Prices of Japan's government bonds fell on hedge-selling on a bet that demand for the 20-year auction later Thursday would be limited.

METALS: Spot gold was trading slightly lower at $579.10, in bouncing back from earlier lows. Copper futures were a touch lower. Dealers cautioned that major players were using any market strength to sell.

OIL: Prices rebounded 45 cents to $60.91 Thursday as buyers took advantage of a drop in prices the day before sparked by a surge in U.S. distillate supplies

EUROPEAN OUTLOOK: Stocks Face Negative Start

Euro-USD 1.2721 gain 0.0033 up 0.2%
Stlg-USD 1.8914 gain 0.0036 up 0.2%
USD-Franc 1.2479 loss 0.0030 dn 0.3%
(All values as of 0450 GMT)
Worry about a global economic slowdown next year may prompt some profit-taking in European stocks, with government debt mixed and the euro higher.

STOCKS: Investors are likely to focus on the Fed's cautionary tone, leaving European markets slightly lower at the open.

U.K. spreadbettor CMC Markets is calling the FTSE down 5 points at 5861, the DAX down 9 at 5945, and the CAC down 13 at 5180.

Software company SAP and supermarkets Ahold and Delhaize gave European investors reasons to buy shares Wednesday, with markets making accross-the-board gains.

FOREX: The euro opens higher against the dollar but lower against the yen.

"What everyone is going to be focusing on now is the interest rate play, specifically with the euro-yen and the cross-carry," said Tim O'Sullivan, chief trader at Gain Capital. "Europeans are not happy with the levels and the Japanese said it was at 'rough level."'

Things could be gearing up for a "pretty violent move in that pair," he noted.

BONDS: Prices of European government bonds may start mixed, after the Fed kept rates and its cautious stance unchanged. But with tough talk from European Central Bank officials, investors will be on guard for euro-zone tightening, if slowing growth fails to quell inflationary pressure.

Analysts said Wednesday's Bank of England minutes put to rest concerns the central bank could tighten rates again in October, with MPC member David Blanchflower even "minded to seek a reversal of the (August) rate rise in due course."

But although the minutes showed a unanimous 8-0 vote to keep policy unchanged, they still point to a November rate hike, said ING economist James Knightley.

The Bank of England believes recent data have been "very close to those incorporated in the August Inflation Report projections" while inflation is already above target and there will be "further upward influences" from food, utility bills and tuition fees.

"Consequently, we continue to look for a November rate hike," said Knightley.

However, with consumer finances under pressure and downside risks from a slowing housing market, ING expects little need for any additional tightening thereafter.

The U.K. repo rate is currently at 4.75%.

European government bonds ended slightly higher ahead of the Fed's decision.

CALENDAR: Thursday, Sep 21: Euro Accounts; Philly Fed

GMT Expected Previous
0600 GER Sep Fin Ministry's monthly bulletin
0730 ITA Sep Consumer Confidence 108.0 108.0
0800 EU Jul Euro Zone Current Account +4.0B
0900 UK Sep CBI Indus Trends +9.5 +11
1230 US Sep 16 Jobless Claims +2K -5K
1400 US Aug Chicago Fed Natl Activity Index -0.12
1400 US Sep 9 DJ-BTMU Business Barometer +0.3%
1400 US Aug Conference Board Leading Econ -0.2% -0.1%
Indicators
1430 US Sep 15 US Energy Dept Natural Gas Stocks (in +108
billion cubic feet)
1600 US Sep Philadelphia Fed Business Index 15.0 18.5
2030 US Sep 15 Money Supply

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

(MORE TO FOLLOW) Dow Jones Newswires

September 21, 2006 01:45 ET (05:45 GMT)

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


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

Aegon (AEG): 1H 2006 Dividend Payment Date

Anglo American (AAL.LN): 1H 2006 Dividend Payment Date

Anglo American (AAL.LN): Special dividend Payment Date

Elekta (EKTA-B.SK): FY 2005 Ex-Dividend Date

Gartmore Irish Growth (DMU.DB): FY 2005 Dividend Payment Date

Robert Wiseman Dairies (RWD.LN): FY 2005 Dividend Payment Date


(END) Dow Jones Newswires

September 21, 2006 01:45 ET (05:45 GMT)

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


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

Gondola Holdings (GND.LN): FY Earnings
Average pretax profit before items (DJ, 5 analysts): GBP50.1M (GBP7M loss)
Note: The results will be overshadowed by the ongoing bid interest from Cinven (CVN.YY), though analysts are keen to see if sales have accelerated since July, when warm weather and the world cup kept customers away. Any news on operating margin and cost pressures is also sought.


Pernod Ricard (12069.FR): FY Earnings
Average net profit (DJ, 7 analysts): EUR686M (EUR475M pro-forma from Pernod)
Average operating profit: EUR1.3B (EUR748M)
Note: Hefty restructuring charges are expected to have weighed on the bottom line, analysts say. Few surprises expected, with Pernod likely to give guidance for 2006-2007 only at its next shareholders' meeting, slated for November. After recent run-up, analysts warn lack of guidance could trigger mild sell-off after the earnings release.


William Morrison Supermarkets (MRW.LN): 1H Earnings
Average pretax profit before one-off items (Co, 21 analysts): GBP121M
(GBP36.7M)
Note: Profit seen rising thanks to benefits from its Optimization Plan. Last month, William Morrison said it was "pleased with the progress being made towards the delivery of our Optimization Plan targets; in particular our goal to improve gross margin by 90 basis points over three years, which is being delivered ahead of plan." Analysts forecast a FY profit before tax and one off-items of GBP251M, up four fold from GBP61.5M a year ago, according to the survey.


OTHER SCHEDULED EVENTS

AddVise Inredning Skyddsvent (ADDV.SK): 1Q Earnings

Biocompatibles International (BII.LN): 1H Earnings

Boiron (6112.FR): 1H Earnings

Business Post Group (BPG.LN): Trading Update

Client Center Alliance (7833.FR): 1H Earnings

CMT Medical (22023.FR): 1H Earnings

Daily Mail & General Trust (DMGT.LN): Trading Update

Eni (E): Board Meeting

Groupe Silicomp (6379.FR): 1H Earnings

Havas (12188.FR): 1H Earnings

Henry Boot (BHY.LN): 1H Earnings

Highland Gold Mining (HGM.LN): 1H Earnings

IB Group (405153.FR): AGM

IC Companys (IC.KO): FY Earnings

Incisive Media (INM.LN): 1H Earnings

InnoConcepts (36114.AE): 1H Earnings

INVU (NVU.LN): 1H Earnings

Luminar (LMR.LN): Trading Update

Norbert Dentressangle (5287.LN): 1H Earnings

Northamber (NAR.LN): FY Earnings

Osiatis (404433.FR): 1H Earnings

Peter Hambro Mining (POG.LN): 1H Earnings

Premier Oil (PMO.LN): 1H Earnings

Prima Industrie (PRI.MI): 1H Earnings

Primary Health Properties (PHP.LN): FY Earnings

Rallye (6061.FR): 1H Earnings

Ryanair Holdings (RYA.DB): AGM

Sabaf (SAB.MI): 1H Earnings

SII (7415.FR): AGM

Solitaire (522152.BY): 1H Earnings

Stylo (STLY.LN): 1H Earnings

Sunstar (SSTE.EB): AGM

Svolder (SVOL.B.SK): FY Earnings

UCM Group (UCM.LN): 1H Earnings

Wendel Investissement (12120.FR): 1H Earnings


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September 21, 2006 01:45 ET (05:45 GMT)

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

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