In New York Thursday, a sharp fall in oil prices and an economic report, which showed that annual GDP growth in the first quarter, was better than expected, boosted stocks.
The Dow Jones Industrial Average rose by 52.19 points, or 0.4%, at 12646.22. The S&P 500 advanced 7.42 points, or 0.5%, to 1398.26 and the tech-dominant Nasdaq Composite Index rose 21.62 points, or 0.9%, to 2508.32.
Crude oil for July delivery closed at $126.62 a barrel, lower by $4.41. It was the biggest single-day dollar fall for oil since March 19, which is still up 32% so far this year and almost double its level of a year ago.
The US Energy Information Administration weekly inventory report showed that gasoline demand in the four weeks ending May 23 fell 0.4% from the same period last year.
US GDP grew at annual 0.9% rate in the first quarter revised up from 0.6%
The number of US workers filing new claims for unemployment benefits rose slightly last week indicating continued labour market weakness, after four-straight declines in monthly employment to start the year.
Continuing claims lasting more than one week stayed above three million for a fifth-straight week and hit a fresh four-year high, suggesting it is taking even longer for the unemployed to find new work.
Initial claims for jobless benefits rose 4,000 to 372,000 after seasonal adjustments in the week ended May 24, the Labor Department said Thursday.
In Asia-Pacific, the MSCI Asia Pacific Index gained 1% Friday and Japan's Nikkei 225 Stock Average jumped 1.5%. Most other benchmark indexes rose including Indian stocks rose after a report, which showed that the economy grew 8.8% in the first quarter, faster than the 8.1% rate expected by analysts.
Asia-Pacific - Benchmarks.
In Europe Friday, the Dow Jones 600 is up 0.36% and most markets are trading up.
Rossa White, economist at Davy, commented today that UK confidence drops to 18-year low, reflecting tighter credit, housing problems
UK consumer confidence dropped this month to a level not seen since the end of Margaret Thatcher's reign. Yesterday's house price data re-confirms one of the main reasons for the slippage. High inflation and a turn in the labour market are other factors. But perhaps the key one is the problem in the UK banking sector: credit is very hard to come by.
UK house prices fell at a faster pace than the market expected in May. According to the Nationwide, prices slid 2.5%, bringing the fall since the peak last October to 7%. Lack of mortgage availability is having a telling effect. In the short term, the Bank of England is not going to help out as much as we had thought previously. In fact, banks have not fully passed on the rate cuts already seen.
So far, the dramatic consumer confidence fall has not passed through to final spending. Retail sales have held up pretty well. But that will probably change in the second half, as consumers become unable to tap into equity release and job losses in financial and business services increase.
In Dublin, the ISEQ Index is up 0.69%.
National benchmarks- Europe
Irish Share Prices
Euribor Rates
AIB Daily Report
Bank of Ireland Daily Report (new format)
Currencies
The euro is trading at $1.5484 and at £0.7838.
For live currency updates, check the right-hand column of the Finfacts home page.
The dollar had fallen to $1.6019 per euro on April 22nd - an-all time record.
Commodities
| Stocks (Million Barrels) |
 |
| Stocks |
Change From Last |
| 05/23/08 |
Week |
Year |
| Crude Oil |
311.6 |
 -8.8 |
-30.6 |
| Gasoline |
206.2 |
-3.2 |
 8.2 |
| Distillate |
109.4 |
1.6 |
-11.0 |
| Propane |
35.655 |
1.627 |
0.576 |
Crude oil for July delivery is currently trading on the New York Mercantile Exchange (Nymex) at $125.25 per barrel down $1.37 from Thursday's close. In London, Brent for July delivery is trading on the International Commodities Exchange at $125.06 down $1.83.
Gold spot price
Gold is trading at $872.70 in New York, down $4.30 from Thursday's close.
Mark O'Byrne of Gold Investments Ireland and UK comments:
In recent days we have noted the surge in demand for gold in China and in the Middle East through Dubai. Further news of surging demand for gold as an inflation hedge in emerging markets came from Vietnam yesterday. Vietnam's retail investment in gold in the first quarter this year amounted to 31.5 tons, making the country the biggest gold consumer in the world, the World Gold Council says in its most updated quarterly survey Gold Demand Trends.
Vietnam's arrival into pole position in the retail investment sector ousts India from the top slot with 31 tons, a decline by half from the first quarter in 2007 as Indian purchasers withdrew from the market and waited for lower prices. The report says the surge in Vietnam's demand was partly a response to soaring inflation, which hit 11.6% in 2007 and prompted a rush to buy gold, reflecting its perceived qualities as a hedge against inflation.
Demand was also spurred by the performance of gold relative to other investments such as equities and real estate, which have declined in value over recent months while gold has strengthened.
Furthermore, gold investments have been increasingly marketed by Vietnamese banks. High interest rates enable local banks to offer an interest rate on gold deposits since they can profitably sell the gold for dong, lend the dong out at high interest rates and hedge their gold position by entering into a forward buying agreement with an international bank. Many Vietnamese prefer to hold gold rather than dong and the fact that this gold can earn interest from commercial banks makes it still more appealing as an investment option, says the report.
