World Markets - August 24, 2006
August 24, 2006
US
New York - Wall Street stocks fell in morning trading yesterday after a report showed that US home sales slumped in July to their lowest since January 2004. The National Association of Realtors report also showed that the stock of unsold homes hit a 13-year high. Sales of homes fell 4.1 percent from June to an adjusted annual rate of 6.33 million units in July.
IBM said it was buying Internet Security Systems (ISS) for $1.3 billion (R9.4 billion) to expand its reach into secure online networks. IBM fell 0.62 percent and ISS shares jumped 6.19 percent.
Bausch and Lomb lost 7c to $46.32 after disease experts singled out a solution made by the contact-lens company as being responsible for at least 164 serious eye infections. - AFP
Europe
Frankfurt - European shares fell yesterday, hurt by mixed corporate earnings and remarks by Chicago Federal Reserve Bank president Michael Moskow about inflation, which stoked fears of higher US interest rates. However, buy-side strategists remained confident.
BHP Billiton fell 3.8 percent in London after the firm reported a second-half profit that just met expectations, while Nestlé gained 2.3 percent, bolstered by 11 percent higher first-half profit.
"Rate expectations in the US continue to incorporate some chance of Fed tightening in October, supported by … Moskow's remarks that inflation is outside the 'comfort zone'," Goldman Sachs said in a research note.
Volumes were thin, with many investors still on holiday. - Reuters
Pafic Rim
Hong Kong - Asian stocks closed flat, tending lower yesterday, with investors retreating to the sidelines amid renewed concerns over US interest rates and Iran's nuclear programme. Dealers said the markets were afflicted by a bout of nerves as US officials said they would study Tehran's offer aimed at ending a nuclear standoff.
As a result Tokyo, Shanghai, Manila and Sydney closed virtually flat. In Australia, investors were also sidelined. Modest losses were notched up in Singapore, Taipei and Seoul, while Bangkok fell 1.17 percent. Elsewhere, however, Kuala Lumpur posted a modest gain. - Sapa-AFP
|
|
