America
On the US:
U.S. Stocks Decline on Concern China May Reduce European Bond Investments U.S. stocks fell, with the Dow Jones Industrial Average closing below 10,000 for the first time since February, as reports that China may review investments in European government bonds spurred concern the credit crisis will worsen and wiped out an early rally.
Treasury Sells 20% of Citigroup Holdings for $6.2 Billion, Still Owns 21% The U.S. Treasury Department sold 20 percent of its shares in Citigroup Inc. at a profit during the past month and authorized adviser Morgan Stanley to keep selling under a pre-arranged plan.
U.S. Durable Goods Orders Beat Forecast The positive signs on the manufacturing front were accompanied by another large gain in sales of new homes in April.
Barton Biggs Says U.S. Stock Markets Oversold, Set for `Big Pop’ in Days U.S. stock markets are oversold and may rally strongly over the next few days, said investor Barton Biggs, who runs New York-based hedge fund Traxis Partners LP.
Lehman Sues JPMorgan to Recover Collateral Demanded Before Its ’08 Failure Lehman Brothers Holdings Inc. sued JPMorgan Chase & Co. to recover tens of billions of dollars in “lost value,” accusing the bank of precipitating its downfall and preventing it from winding down in an orderly fashion.
2 Charged With Selling Insider Data From Disney Two are accused of offering to sell confidential earnings information to more than 30 hedge funds in the United States and Europe.
S.E.C. Proposes a Uniform Audit Trail to Track Trading Regulators said the changes would make it easier to investigate disruptions like the so-called “flash crash” on May 6.
On LatAm:
Bovespa Stock Index Rallies, Halting Two-Day Drop, on U.S. Economic Growth Brazil’s Bovespa stock index rose, halting a two-day retreat, as gains in U.S. durable-goods orders and home sales added to evidence the economic recovery is strengthening.
Templeton’s Mobius Buys BRIC Stocks, Calls Drop a Bull Market `Correction’ Templeton Asset Management Ltd.’s Mark Mobius said he’s been buying stocks in Brazil, Russia, India and China in the past month and called the slump in emerging-economy shares a “correction” in a bull market.
Brazil’s Interest-Rate Futures Yields Rise From One-Month Low on Growth Yields on Brazil’s interest-rate futures contracts rose from a one-month low on speculation the European debt crisis has failed to slow growth in Latin America’s biggest economy.
Asia
Asian Stocks See a Small Dip Stock markets continued their roller-coaster performance in Asia on Thursday, with much of the region seeing a slight decline that echoed the one on Wall Street.
China reviews eurozone bond holdings Any move by Safe would mark a significant change in direction, as Beijing has been trying to diversify away from the US dollar in recent years by buying a greater proportion of assets denominated in other currencies
Japanese Exports Increase for Fifth Month as Asian Recovery Boosts Demand Japan’s exports grew for a fifth month in April, the first sign that the nation’s export-led expansion may have extended into the second quarter.
China Needs Real-Estate Crash to Return to Bull Market in Stocks, Xie Says China needs a property crash for stocks to return to a bull market because that would jolt investors into switching money to equities, former Morgan Stanley economist Andy Xie said.
Philippine Economic Expansion Accelerated to Fastest Pace in Three Years Philippine economic growth accelerated in the first quarter to the fastest pace in almost three years, putting pressure on the central bank to raise interest rates even amid concern the global recovery will falter.
India’s National Stock Exchange Plans Short Sales in Weeks to Boost Trades National Stock Exchange of India Ltd., the nation’s largest bourse, plans to offer short sales within the next few weeks aimed at luring investors to the local market after expanding in the U.S. and Singapore.
Korea Reported Current-Account Surplus for Third Straight Month in April South Korea reported a current- account surplus in April for a third month as a recovering global economy spurred demand for cars and semiconductors.
Mobius Says South Korean Policies May Accelerate Change in Communist North South Korean President Lee Myung Bak’s measures against North Korea may accelerate change and help in opening up the communist country “in the long run,” according to Mark Mobius.
GIC considers listing its property portfolio Singapore’s main sovereign wealth fund is considering listing part of its huge portfolio of property assets in an initial public offering that could raise up to $1bn.
Europe
Zapatero Bets Future on Spanish Austerity as Support Wavers Before Vote Spain’s deepest budget cuts in 30 years may be just the start of a U-turn by Prime Minister Jose Luis Rodriguez Zapatero that’s already sent his popularity plunging and prompted calls for a general strike.
Kraft Criticized by U.K. Merger Regulator Over Conduct During Cadbury Deal The U.K.’s merger regulator issued its first public reprimand in three years, saying Kraft Foods Inc. misstated plans to keep a plant open as part of its acquisition of Cadbury Plc.
Markets Want Action on European Debt Crisis, Geithner Says In London to visit his British counterpart, the Treasury secretary backed a $1 trillion plan to aid euro zone governments.
E.U. Proposes Bank Levy to Pay for Future Crises Although the idea of such a fund is popular in Europe, the proposal faces political hurdles before it can be submitted to the Group of 20 summit next month.
George Osborne attacks structure of EU’s proposed levy on banks Michel Barnier, the single market commissioner said that the levy should be harmonised across all EU member states.
O.E.C.D. Sees Risks to Recovery From Europe and Asia The threat of overheating in parts of Asia and Europe’s budget deficit woes are raising warning signs, the OECD said Wednesday.
Graduates fearful about job prospects Only a third of final-year students expected to find graduate employment, survey reveals.
German debt auction comes close to failure German government’s issue of €7bn in bonds could have failed if Bundesbank had not retained 22% of debt issue.
BP’s new plan to stop Gulf oil spill ‘Top kill’ process pumps mud mixture into well forcing oil back down – but could make leak worse if it goes wrong.
Zimbabwe grows for first time in 11 years Zimbabwe has recorded its first year of economic growth for more than a decade, a report from the International Monetary Fund said.
Op-Ed: Eurozone panic could hurt US Until last year the US had not experienced deflation since 1955. Now, as the crisis in Europe feeds through to lower oil prices, markets predict falling prices again within a year.
Forex Market
Kiwi, Won Advance Against Yen on Trade Data as Global Stock Sell-Off Eases The New Zealand dollar and South Korean won rose against the yen after the two nations posted trade surpluses and as markets stabilized from a plunge that has depressed Asia’s benchmark stock index by 13 percent this month.
Yen Weakens as Signs Asia-Pacific Economies Recovering Curb Safety Demand The yen fell against the euro, ending a three-day rally, as signs Asia-Pacific economies are gathering momentum damped demand for safer assets.
Dollar Index May Fall to 3-Month Low After Double Top: Technical Analysis The Dollar Index may fall to a three- week low as it forms a “double top” after failing to exceed the May 19 high, a technical chart from Citigroup Inc. shows.
Ex-Bundesbank President Says Euro `Not In Danger,’ Slide May Be Contained Former Bundesbank President Helmut Schlesinger said the euro’s slide hasn’t left it at an unnaturally low level and the breakup of Europe’s 16-nation currency union is out of the question.
Nobel Winner Mundell Says Debt Restructuring `Inevitable’ for Some in Euro Nobel Prize winning economist Robert Mundell said debt restructuring may be “inevitable” in parts of the euro area and Steve Hanke, the architect of currency regimes from Argentina to Estonia, warned a Greek default may become unavoidable.
Traders move to price in renminbi fall Traders wipe out the prospect of a near-term appreciation in the Chinese currency as the eurozone sovereign debt crisis continues to dominate direction on the world’s financial markets.
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