[NEW YORK] US stocks ended higher on Friday, lifting the S& P 500 to a fresh closing high, after a weaker-than-expected jobs report was taken as a sign that the Federal Reserve will not begin raising interest rates anytime soon.

Stocks had traded lower after the government reported fewer US jobs were created in August than expected.

By early afternoon, however, major indexes turned positive, led by utilities. Fed officials have made it clear that they see the labor market as still struggling, which partially justifies keeping rates at rock-bottom levels. " The nonfarm payroll numbers fell well short of expectations, but the market reaction suggests a stronger-than-consensus number might have been met with a downward bias in equities," said Jim Russell, senior equity strategist at US Bank Wealth Management in Cincinnati. " What we saw today called off the dogs to some degree and took the heat down a notch or two from investors' concern about rate hikes." Utilities gained 1.2 per cent as investors turned to the group for their income appeal with bond yields falling in response to the payrolls data. Utility shares often benefit as bond yields fall because the companies pay relatively rich dividends.

Power generator NRG Energy Inc rose 1.9 per cent to US$30.89, and XCEL Energy Inc advanced 1.9 per cent to US$32.48.

 

The Securities and Exchange Surveillance Commission (SESC) said it recommended a 330,000 yen (US$3,133) fine against the unidentified trader. It would be the first fine against an investor for manipulation in JGB futures.

The SESC said it suspected the trader of using a technique called layering, in which an investor displays orders, which are later withdrawn, to deceive the market into sensing a move in the market and thus creating an opportunity to profit. - Reuters

...............Haha, Like that also  can get caught  !

[FRANKFURT] THE European Central Bank (ECB) cut interest rates to a fresh record low on Thursday and launched a new scheme to push money into the flagging euro zone economy.

In a series of measures underscoring growing concern about the currency bloc' s health, the ECB cut its main refinancing rate to 0.05 per cent from 0.15 per cent previously and drove the overnight deposit rate deeper into negative territory, now charging banks 0.20 per cent to park funds with it.

The euro zone flatlined in the second quarter of the year and the Ukraine crisis is now weighing heavily on business confidence. " The Governing Council sees the risks surrounding the economic outlook for the euro area on the downside," ECB President Mario Draghi told a news conference. " In particular, the loss in economic momentum may dampen private investment, and heightened geopolitical risks could have a further negative impact on business and consumer confidence."

New ECB economic forecasts predicted slower growth this year, of just 0.9 per cent, picking up to 1.6 per cent in 2015.

 

WEDNESDAY' s burst of interest in the Straits Times Index that drove it 20 points higher proved short- lived when the index fell back by 2.43 points to close at 3,346.34 on Thursday. The broad market was weak with 172 rises versus 262 falls excluding warrants, though volume remained elevated at 1.8 billion units worth S$1.1 billion.

Also affecting trading here was a soft session in Hong Kong, where the Hang Seng Index failed to follow through on its 2 per cent Wednesday jump, instead closing marginally weaker.

The push on Wednesday came about after release of encouraging China economic numbers, Europe-wide hopes of an interest rate cut by the European Central Bank, and hopes that the conflict in Ukraine might be resolved soon.

However, once it transpired that there has been no real improvement to the Ukrainian conflict - the hopes had been more speculative than concrete - and following release of strong US factory orders and auto sales figures which suggest interest rates may be raised sooner rather than later, Wall Street' s major indices on Wednesday closed mainly mixed-to-weak.

 

EUROPEAN markets opened with average gains of above one per cent on Wednesday, helping to lift the Straits Times Index by 20.47 points to 3,348.77. Stocks in the continent were boosted by hopes that the European Central Bank will cut interest rates at its Thursday meeting to lift a sagging eurozone economy and that it will embark on its own rounds of " quantitative easing" .

Adding to the push was a 2.3 per cent jump in Hong Kong' s Hang Seng Index, reportedly because of upbeat China manufacturing data.

Despite gains in the index, the advance-decline score here was 234-201 excluding warrants, suggesting a much more mixed session. Turnover, however, improved to 1.5 billion units worth S$1.1 billion from Tuesday' s S$892 million.

Among the features of interest was a two-cent rise in SingPost shares to S$1.745 on volume of 15.5 million after it was announced that postal rates are to be raised. OCBC Investment Research said in response that it thinks the postage-rate increase is overdue, especially if more wage increments are to be awarded to well-deserving employees in the future.

 

[NEW YORK] US stocks ended mostly lower on Tuesday, retreating from records set the previous month, as falling crude oil prices dragged energy shares down and offset strong manufacturing data.

The S& P energy index fell 1.3 per cent as the prospect of slowing demand for oil in China and Europe and concerns about an oversupply of oil brought Brent crude oil futures to their lowest price since May 31, 2013.

Peabody Energy Corp was the biggest loser among the S& P energy names, falling 3.7 per cent to US$15.29.

The strengthening dollar, which rose to its highest this year against the yen, was also seen as weighing on oil prices. " This isn' t a cause of alarm for the market. We' re just seeing energy pulling back a bit after a very big market rally and taking a bit of time to digest those gains," said Adam Sarhan, chief executive of Sarhan Capital in New York.

 

[SINGAPORE] Contrary to earlier expectations, a sustainable recovery in manufacturing is not underway yet.

Dropping below the key 50-point mark for the first time this year, Singapore' s Purchasing Managers' Index (PMI) fell 1.8 points to 49.7 in August, dragged down by lower levels in new orders, inventory, and stockholdings of finished goods.

After seven consecutive months of expansion, August' s swing to contraction mode marked the largest retreat since March 2011 and the lowest reading since last December.

Surprised and disappointed by the data, economists told The Business Times that " significant headwinds" still confront the manufacturing sector in the second half of 2014, even in the run-up to the seasonal peak Christmas period.

Said OCBC economist Selena Ling: " If you look across Asia, the only country with manufacturing PMI also sliding back into contraction territory in August is Indonesia. So this is a real knock to market confidence for Singapore' s manufacturing outlook for the next 3-6 months."

Added Bank of America Merrill Lynch economist Chua Hak Bin: " These are ugly figures and they do not square with the view of a modest recovery in external demand. The plunge in the PMI to below 50 suggests a deeper manufacturing slump is a clear risk."

In contrast, the PMIs of Taiwan, India, Japan, South Korea and China were still in expansion territory, even as some of them dipped from July.

In Singapore, the 1.8-point drop in overall PMI - which Ms Ling described as " precipitous" - was more than the market had forecast. Private sector economists polled by Bloomberg had earlier projected a reading of 51 - down from July' s surprise expansion of 51.5, which marked a one-year high.

" The readings recorded a first-time contraction in new export orders (down 1.9 points to 49.8) and production output (down 2.6 points to 49.6)," said the Singapore Institute of Purchasing & Materials Management (SIPMM). " Overall imports and employment reverted to contraction (49.2 and 48.6 respectively), while input prices (49.7) continued to contract for the third consecutive month."

SIPMM polls more than 150 industrial companies to compile the index each month. A reading above 50 denotes growth, while one under 50 points to a contraction in the manufacturing sector.

While the electronics PMI also fell in August, it continued to expand for the 19th consecutive month, dropping 1.7 points to 50.7.

The easing was due to slower growth in new orders from both domestic and overseas markets (which were down 2.1 points and 2.2 points to 51.4 and 50.5 respectively), and a drop in electronics production output (down 2.7 points to 50.9).

UOB economist Francis Tan joins Ms Ling and Dr Chua in thinking that " there may be more headwinds in store for the manufacturing sector" , although he qualified that the up-and-down nature of the PMI makes it hard to tell whether August' s contraction will last.

Still, not all economists viewed August' s PMI readings with a heavy sense of foreboding. CIMB' s Song Seng Wun thinks that things should pick up with year-end festive demand around the corner, while DBS' s Irvin Seah believes a sustained contraction is unlikely.

Said Mr Seah: " Of course, I was surprised that the PMI actually dipped into contraction mode. But the (downward) direction was in line with what I was expecting. And if you average out August and July' s readings, it would be around the 50.6 mark - that' s still above 50 and range-bound.

" I think the volatility (seen in the last two months) reflects short-term industry cycles. If you cast these aside, what you get is a flattish trajectory in manufacturing," added Mr Seah, who expects the sector to run sideways in the months ahead, with the PMI staying just slightly above 50.

GAINS in the banks, SingTel and some Jardine stocks helped the Straits Times Index bounce 14.17 points to 3,328.30 on Tuesday, though the almost even advance-decline score of 222 to 220 and the weak volume done of 1.6 billion units worth S$892 million probably gave a better indication of how trading actually was - listless and uninspiring.

Among notable stocks, STATS ChipPAC has been in focus for the past few weeks after it said it was in takeover talks and so it was again yesterday, the semiconductor firm' s shares tumbling 7.5 cents cents or 10.8 per cent to 62 cents on volume of 62.4 million.

The company on Monday said one of its suitors from China has withdrawn interest, while another has said there is only a " low likelihood" of a deal being reached within the next three months.

Over in Hong Kong, the Hang Seng Index drifted to a marginally weak close ahead of the resumption of trading on Tuesday of Wall Street, following the latter' s closure on Monday for Labor Day.

 

Newfield Exploration Co. slid 2.1 percent as energy companies dropped 1.3 percent as a group. Delta Air Lines Inc. and Southwest Airlines Co. rallied at least 2.8 percent to lead carriers higher. Home Depot Inc. dropped 2 percent after saying it was investigating a possible data breach. Staples Inc. jumped 8.1 percent after Credit Suisse Group AG raised its rating on the stock.

The S& P 500 lost 0.1 percent to 2,002.28 at 4 p.m. in New York, trimming earlier losses of 0.4 percent in afternoon trading. The Dow Jones Industrial Average slipped 30.89 points, or 0.2 percent, to 17,067.56. The Nasdaq Composite Index rose 0.4 percent, extending its highest level since March 2000. More than 5.7 billion shares changed hands on U.S. exchanges today, snapping an nine-day streak of volume below 5 billion shares.

&ldquo The 2,000 area is still in play, and we&rsquo ve yet to move past it convincingly as it remains a speed bump in the short-term,&rdquo Joe Bell, senior equity analyst at Cincinnati-based Schaeffer&rsquo s Investment Research Inc., said by phone. &ldquo The manufacturing index was better than expected, but after that strong rally we had through much of August, the market is taking a bit of a breather.&rdquo

The Institute for Supply Management&rsquo s manufacturing index unexpectedly climbed to 59, the highest level since March 2011, from July&rsquo s 57.1, the Tempe, Arizona-based group reported today. Readings greater than 50 indicate growth. The median forecast in a Bloomberg survey of economists was 57.

Global Data

The news on manufacturing was less positive overseas as U.K. factory growth slowed more than forecast last month and Italian manufacturing shrank as Europe suffered the fallout from weakening demand and mounting geopolitical risks. Output growth in China also slowed.

The S& P 500 jumped 3.8 percent in August, climbing above 2,000 for the first time, amid improving economic data and speculation the Federal Reserve will keep interest rates low even as the economy shows signs of strengthening. The gauge has advanced 8.1 percent in 2014.

The economy expanded more than previously forecast in the second quarter, propelled by the biggest gain in business investment in more than two years, the Commerce Department reported last month. A Labor Department report on Sept. 5 will show payrolls rose by more than 200,000 in August for a seventh-straight month, a Bloomberg survey of economists showed.

Accelerating Economy

&ldquo Overall, data supports the idea that the economy is accelerating going into the second half of the year, which certainly helps the equity markets,&rdquo Kevin Caron, who helps oversee $170 billion at Stifel Nicolaus & Co. in Florham Park, New Jersey, said in a phone interview. &ldquo You&rsquo ve had investors who have been increasingly encouraged by the direction of the data in the economy. They&rsquo ve been discouraged from holding assets in low-yielding, safer assets.&rdquo

The S& P 500&rsquo s rally isn&rsquo t over and the gauge could jump 50 percent more by 2020 as the U.S. economic recovery heads for a record winning streak, according to Morgan Stanley.

A slower though sustained period of growth could help the equity benchmark gauge peak near 3,000, according to a report today. The world&rsquo s largest economy, which began recovering in July 2009, may continue growing for five years or more, making it the longest period of expansion, Morgan Stanley said.

Ukraine Conflict

In Ukraine, the government warned of an escalating conflict in its easternmost regions, even as U.S. President Barack Obama headed to eastern Europe to reassure NATO members. Ukraine and its allies in the U.S. and Europe accuse Russia of dispatching troops and backing separatist militias to open a new front in the conflict. Russia has repeatedly denied involvement in the unrest.

&ldquo U.S. investors will try to focus on the economic agenda of the day, while geopolitical issues remain in the background,&rdquo Stephane Ekolo, chief European strategist at Market Securities in London, wrote in an e-mail.

The Chicago Board Options Exchange Volatility Index, the gauge of S& P options prices known as the VIX (VIX), rose 2.3 percent to 12.25. The gauge lost 29 percent in August, the biggest monthly drop in almost three years.

Energy Slump

Five of the 10 main S& P 500 groups retreated, with energy stocks falling 1.3 percent to pace declines. Newfield Exploration and Noble Corp. slid at least 2.1 percent as the price of West Texas Intermediate crude slumped. Chevron Corp. lost 1.5 percent.

Home Depot sank 2 percent to $91.15, halting a five-day rally. The largest home-improvement chain said it was working with banks and law enforcement to investigate the possible breach.

The Nasdaq 100 Index rose 0.3 percent to a 14-year high as Regeneron Pharmaceuticals Inc., Staples and Tesla Motors Inc. rallied.

Regeneron gained 2.6 percent to $359.50, an all-time high. The cholesterol drug that the company is developing with Sanofi cut levels of heart disease-causing fat in four studies, according to results released over the weekend.

Dollar Stores

Staples climbed 8.1 percent to $12.63, the highest since May. The world&rsquo s largest office-supply chain was raised to outperform from neutral at Credit Suisse.

Tesla rose 5.4 percent to $284.12, an all-time high. A Stifel Nicolaus & Co. report cited the electric-car maker&rsquo s increasing production and said it may be worth $400 a share even before it starts making a lower-priced model.

Dollar General Corp. added 0.6 percent to $64.36. The retailer said today that it raised its offer for smaller rival Family Dollar Stores Inc. to $80 a share in cash, compared with an initial $78.50 bid. Family Dollar Stores rose 0.5 percent to $80.22.

Norwegian Cruise Line Holdings Ltd. surged 11 percent to $36.99 after agreeing to acquire Prestige Cruises International Inc. for about $3.03 billion. Prestige is owned by private equity firm Apollo Global Management LLC (APO), which also holds a 20 percent stake in Norwegian.

Compuware Corp. shares climbed 13 percent to $10.59. The company will be acquired by private equity firm Thoma Bravo LLC in a deal valued at $2.5 billion.

Exelixis Inc. slumped 55 percent to $1.85. A trial for its cabozantinib treatment for prostate cancer failed to meet its aim of showing an increase in survival rates compared with another drug. The company said it will reduce its workforce by about 70 percent to focus its financial resources on other clinical trials for cabozantinib.