A fairly rosy manufacturing survey in the U.S. helped shore up markets Monday following a volatile day when conflicting figures from around the world raised questions over the state of the global economic recovery.
At certain times of the day, the more optimistic investor found reasons to be hopeful _ while, at other times, the pessimist had the upper hand.
The conflicting signals were particularly evident in China. One manufacturing survey eased fears over the scale of the slowdown in the world’s second largest economy while another indicated that the downturn was getting worse.
An equivalent report about the state of the sector in Europe reinforced fears over a recession in the 17-country eurozone. Figures showing that unemployment in the 17 countries that use the euro rose to 10.8 percent in February, its highest level since the euro was launched in 1999, reinforced recession concerns.
However, a better-than-expected monthly Institute for Supply Management survey about the manufacturing sector in the U.S. helped lift markets into the Wall Street session. The institute’s main index for March rose to 53.4 in March, up from 52.4 in the previous month and just ahead of expectations for a more modest increase to 53.0.
“The ISM data largely fits with the global picture that is fairly flat, with some loss of any recovery momentum in the euro area,” said Alan Ruskin, an analyst at Deutsche Bank.
In Europe, the FTSE 100 index of leading British shares was up 1.85 percent at 5,874 while Germany’s DAX rose 1.5 percent to 7,056. The CAC-40 in France was 1.1 percent higher at 3,462. The euro though remained under pressure, trading 0.27 percent lower at $1.3325.
On Wall Street, the Dow Jones industrial average was up 0.5 percent at 13,279 while the broader Standard & Poor’s 500 index was 0.83 percent lower at 1,420.
In the first quarter of the year, stock markets around the world posted solid gains as Europe’s debt crisis seemingly eased following a big liquidity injection from the European Central Bank and a raft of forecast-busting U.S. economic figures.
However, Kathleen Brooks, research director at Forex.com, said stocks will face bigger headwinds in the second quarter as investors concentrate on growth and the future direction of central bank policy.
“While stocks won’t fall precipitously, expect some pretty big pullbacks especially in European markets,” said Brooks.
Economic indicators around the world will be the primary point of interest in the markets this week. The U.S. will increasingly attract attention in the run-up to Friday’s nonfarm payrolls figures for March.
Earlier in Asia, stocks generally edged higher.
Though markets in mainland China were closed for a public holiday, the main indexes elsewhere started the second quarter positively. Japan’s Nikkei 225 index gained 0.3 percent to close at 10,109.87 despite businesses remaining pessimistic in the central bank’s latest quarterly “tankan” survey. Hong Kong’s Hang Seng fell 0.2 percent to 20,522.26.
Oil prices started the day tracking European stocks lower, but the benchmark New York rate rose $1.43 later on in the day to $104.35 a barrel.
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Pamela Sampson in Bangkok contributed to this report.
Sales of previously owned U.S. houses held in February near an almost two-year high, adding to evidence the market that triggered the recession is firming.
Purchases dropped 0.9 percent to a 4.59 million annual rate from a revised 4.63 million pace in January that was faster than previously estimated and the highest since May 2010, a report from National Association of Realtors showed today in Washington. The median price increased over the past year for the first time since November 2010.
Bo Xilai
Employers in the U.S. boosted payrolls more than forecast in February, capping the best six- month streak of job growth since 2006 and sending stocks higher.
The 227,000 increase followed a revised 284,000 gain in January that was bigger than first estimated, Labor Department figures showed today in Washington. The median projection of economists in a Bloomberg News survey called for a 210,000 rise. The jobless rate held at 8.3 percent, even as 476,000 more workers sought employment.
More jobs are helping fuel the wage gains that drive consumer spending, which accounts for about 70 percent of the economy. The latest pickup in employment bolsters President Barack Obama
Former European Central Bank Executive Board member Lorenzo Bini Smaghi suggested Germany
Stocks are edging higher after their biggest loss this year as reassuring reports on productivity and hiring overshadow jitters about the Greek debt crisis.
The government said early Wednesday that U.S. workers were more efficient late last year, though productivity grew more slowly than in the summer. Slower productivity growth could boost hiring.
Payroll processor ADP said employers added 216,000 jobs last month, slightly more than economists had expected.
The Dow Jones industrial average dove 203 points on Tuesday, raising doubts about the momentum behind stocks’ strong rally this year. Investors fretted about the latest deadline in Greece’s debt crisis.
The Dow is up 21 points at 12,780 in the first ten minutes of trading. The S&P 500 is up 4 at 1,347. The Nasdaq is up 14 at 2,924.
Oil prices rose to a fresh nine-month high near $109 a barrel Friday in Asia amid signs the U.S. economy is improving against a backdrop of elevated tensions in the Middle East over Iran’s nuclear program.
Benchmark crude for April delivery was up 75 cents to $108.58 per barrel midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.55 to settle at $107.83 in New York on Thursday.
Brent crude was up 50 cents at $124.22 per barrel in London.
The government said Thursday that the number of people seeking unemployment benefits last week was unchanged and that the four-week average was the lowest in four years.
Traders brushed off evidence that crude demand in the U.S. remains weak. The Energy Department’s Energy Information Administration said Thursday crude inventories rose 1.6 million barrels last week and that oil demand has dropped 6.7 percent from a year ago.
“The ability of crude to post new highs in the face of what appeared to be a bearish EIA report attests to the underlying strength of this price advance,” energy trader and consultant Ritterbusch and Associates said in a report. “The oil market has evolved into somewhat of a self perpetuating cycle in which new highs beget new buying that forces new highs.”
Crude has jumped from $96 earlier this month amid growing tension over Iran’s nuclear program and fears global crude supplies could be disrupted. Some analysts expect economic sanctions by the U.S. and Europe and countermeasures by Iran will help keep crude prices elevated this year.
“There is a relatively high and growing probability to a scenario in which there is no resolution in 2012, in which oil prices grind higher along with a gradual escalation of tension,” Barclays Capital said in a report.
In other energy trading, heating oil rose 0.1 cent to $3.29 per gallon and gasoline futures added 0.8 cent to $3.30 per gallon. Natural gas fell 3.2 cents to $2.59 per 1,000 cubic feet.
Home sales in the U.S. probably climbed in January to the highest level since May 2010, adding to evidence the housing market is regaining its footing, economists said reports this week will show.
Combined purchases of new and existing houses rose to a 4.97 million annual rate from 4.92 million in December, according to the median forecast in a Bloomberg News survey. Claims for jobless benefits held near the lowest level since 2008, bolstering consumer confidence, other reports may show.
A strengthening job market, combined with record affordability driven by the drop in home prices and mortgage rates, will probably keep underpinning demand. Nonetheless, the Federal Reserve and Obama administration are striving to find ways to lend the industry additional assistance amid concern that mounting foreclosures will continue to hinder the recovery.
Greece’s finance minister says all pending issues in its international creditors’ requirements for the country’s second bailout will be completed ahead of a Wednesday evening conference call between eurozone finance ministers.
Evangelos Venizelos said that “very few” issues remained and would be wrapped up before the call at 6p.m. Greek time (1600GMT) Wednesday.
The call is being held instead of a meeting between the ministers, which was called off Tuesday because Athens had not met all the requirements, including plugging a euro325 million ($427.99 million) financing gap and providing written guarantees from the governing coalition’s party leaders.
Venizelos made the comments after a meeting with President Karolos Papoulias, who he said will give up his presidential salary to help in the crisis.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.
ATHENS, Greece (AP) _ The leaders of the two parties participating in Greece’s governing coalition have prepared written assurances committing to implement the terms of Greece’s new bailout _ a key requirement demanded by international creditors, officials said Wednesday.
Socialist leader George Papandreou signed the letter Tuesday night, and Conservative head Antonis Samaras prepared his letter Wednesday morning and was to send it within the day, the officials said.
A meeting of eurozone finance ministers that had been expected Wednesday on Greece’s second multibillion bailout was postponed. Jean-Claude Juncker, who chairs the ministers’ meetings, said Tuesday night that “further technical work” was needed from Athens. This included providing the written assurances and detailing how Greece will plug a euro325 million ($428 million) financing gap, he said.
Wednesday’s meeting had been expected to give the green light for a bond-swap deal with private creditors designed to slice some euro100 billion ($132 billion) off Greece’s debt.
The swap deal, which will take several weeks to implement, has to be finalized by March 20, when Greece faces a euro14.5 billion ($19.1 billion) bond redemption that it cannot pay.
Instead, the ministers will hold a conference call Wednesday evening, and will meet in person in Brussels next Monday.
In Athens, a government official said the issue of the euro325 million gap was expected to be resolved within the day. On Tuesday, government spokesman Pantelis Kapsis said the funds would come “from spending cuts from ministries, from areas including defense.”
The bond swap deal is an integral part of Greece’s second international bailout, worth euro130 billion ($171 billion) in loans, without which the country faces a default that could drag down other economically vulnerable eurozone countries and threaten Europe’s single currency itself.
The country has been surviving since May 2010 on funds from a first, euro110 billion ($145 billion) package of rescue loans. But harsh austerity measures demanded in return for the emergency loans have hammered Greece’s economy, leaving it in a fifth year of recession. Official figures Tuesday showed that the Greek economy shrank by 7 percent on the year in the fourth quarter of 2011.
The austerity measures, which have included repeated waves of tax hikes and cuts to salaries and pensions, have also led to an explosion of public anger, with strikes and demonstrations often turning violent.
On Sunday, rioters burned buildings in central Athens and clashed with riot police while lawmakers approved a new round of austerity, slashing the minimum wage and planning mass layoffs in the civil service as part of requirements for the second bailout.
Iraq has opened the taps at a new oil export terminal in the Persian Gulf in a vital step to bringing sorely needed cash for reconstruction after decades of war and international sanctions.
Oil Ministry spokesman Assem Jihad says oil exports through southern Iraq _ which currently stand at about 1.7 million barrels a day _ will be boosted by about 200,000 barrels per day beginning in March.
Jihad said the new single point mooring (SPM) was inaugurated Sunday by Prime Minister Nouri al-Maliki during a ceremony in the oil-rich province of Basra.
Iraq’s total daily oil exports averaged 2.145 million barrels in December. The government relies on oil exports for 95 percent of its revenue.
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