On Tuesday in New York, the Dow Jones Industrial Average closed up 9.44 points, or 0.1%. Dow component Coca-Cola rose 3.9% after an analyst upgrade and top financial stocks also rose with a 3.4% rise for Citigroup, a 2.1% advance for J.P. Morgan Chase, and a 2.4% gain for American International Group (AIG).
China's stocks fell for a sixth day and the CSI 300 Index fell fell 2.1% to 3,140.30, the lowest close since April 2007. It plunged 8.1% yesterday and is down 41% this year.
The MSCI Asia Pacific Index gained 0.3% after losing 4.6% in the previous two days.
Most Asian benchmarks rose led by Japan's Nikkei 225 Stock Average which advanced 1.2%.
Asia-Pacific- benchmarks.
European stocks are up Wednesday but in Dublin, the ISEQ Index has fallen by 0.69%.
On Tuesday, stocks of house building firms McInerney and Abbey were hit after a report from the UK's Royal Institute of Chartered Surveyors, which showed that the number of homes sold had fallen to lows not seen in three decades. Both Irish companies generate most of their earnings in the UK.
McInerney Holdings is down 20% and Abbey has fallen 4.42%.
Rossa White, economist at Davy Stockbrokers, in a Market Comment today on the increase by 3.8% in May of Irish unemployment claimants said:
The labour market is weakening outside of housebuilding, based on the latest unemployment claimant numbers for Ireland. Female claimants accounted for almost half of the monthly jump in May. That extends the trend we have seen since February. The initial deterioration was caused by housebuilders losing jobs; that process is not yet exhausted either. The estimated unemployment rate is now 5.4%.
Irish unemployment claimants have risen at a similar pace this year. In May, claimants increased 7,600 or 3.8%. If we take March and April together — because of the early Easter — claimants have jumped at an average rate of 7,000 per month. The Live Register total is up 30% year-on-year.
Fortunately, the Irish labour market seems to have its own 'automatic stabiliser' — a term usually associated with the government finances. Net migration is slowing as job prospects deteriorate. That limits the rise in the labour force and, hence, unemployment. As a result, the unemployment rate is unlikely to get out of control. We forecast a rate of 6.1% by year-end and 7% by end-2009.
National benchmarks- Europe
Irish Share Prices
Euribor Rates
AIB Daily Report
Bank of Ireland Daily Report (new format)
Currencies
The euro is trading at $1.5477 and at £0.7936.
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
Crude oil for July delivery is currently trading on the New York Mercantile Exchange (Nymex) at $132.95 per barrel up $1.64 from Tuesday's close. In London, Brent for July delivery is trading on the International Commodities Exchange at $132.68 up $1.66.
The US Agriculture Department on Tuesday reduced its one-month-old forecast of the US corn harvest by 3.2% because of a rain-delayed planting season in parts of the Midwest.
"This is another inflationary development," Michael Swanson, an agricultural economist at banking giant Wells Fargo & Co told the Wall Street Journal. "I wouldn't be surprised if corn heads towards $8 a bushel -- not that anybody can afford to pay that."
The USDA said that it expects US farmers to harvest 11.7 billion bushels of corn this year, based on early June conditions.
Since May, when the department predicted a 12.1-billion-bushel crop, heavy rain across Iowa, Illinois, Missouri and Indiana has prevented many farmers from getting all of their crops into the ground. Most
Corn prices, which have tripled over the past two years to reach record-high levels, on Tuesday, rose at the Chicago Board of Trade, with the corn futures contract for July delivery rising 6 cents a bushel to settle at $6.7325 a bushel. Futures contracts for delivery between December 2008 and July 2009 were trading above $7 a bushel.
Gold spot price
Gold is trading at $874.30 in New York, up $7.70 from Tuesday's close.
