Mid-Day Market Action
- US: Dow: 12035.50 (-0.56%), S&P 500: 1234.67 (-0.53%), NASDAQ: 2553.52 (-1.94%)
- Europe: CAC: 3030.47 (-0.82%), DAX: 5791.53 (-0.96%), FTSE: 5389.74 (-0.55%).
- Asia:Australia: 4139.50 (2.13%),China: 2191.15 (-1.13%),Hong Kong: 18416.45 (1.83%),India: 4693.15 (3.28%), Japan: 8459.98 (1.46%),Korea: 1848.41 (2.99%),Singapore: 2673.32 (2.20%),
- Metals: Gold: 1613.50 (-0.25%), Silver: 29.32 (-0.60%), Copper: 3.39 (0.77%)
- Energy: Crude Oil: 98.65 (1.45%), Natural Gas: 3.19 (1.89%)
- Agriculture: Corn: 6.14 (1.15%), Soya Bean: 11.52 (0.68%), Wheat: 6.14 (1.03%).
- Currency: EUR/USD: 1.3064 (-0.139%), GBP/USD: 1.5687 (0.149%), USD/JPY: 77.9985 (0.143%)
- 10 year US Treasury: 1.960% (0.036)
Market News Update
US markets extend losses: Stocks extended losses today as doubts rose about the effectiveness of the European Central Bank’s massive funding operation to tackle the region’s debt crisis. The NASDAQ also was dragged lower by Oracle Corp (ORCL.O) which fell more than 13 percent.
US foreclosures surge: The number of newU.S. home foreclosures jumped by more than 21 percent in the third quarter from the previous quarter as banks moved more aggressively after a pause that began late last year, according to a report released by a bank regulator, today.
Gold surrenders gains: Gold surrendered gains on Wednesday in line with the euro after a tender for cheap European Central Bank loans failed to convince investors it would easeEurope’s deep-seated debt problems, despite attracting greater-than-expected interest.
Oil prices rise: Oil rose above $107 a barrel today asU.S. crude inventories dropped to their lowest level in nearly three years, overshadowing worries about the euro zone debt crisis.
Company News Update
- Software giant Oracle (ORCL) dragged technology stocks down today, after revenue from new software licenses, rose a paltry 3% last quarter, compared to the 11% that Wall Street analysts had expected.
- Bank of America (BAC) has been the hardest hit of the large U.S. banks by new rules aimed at reducing fees banks charge consumers, according to a research report published by Credit Suisse.
- Research in Motion (RIMM) has turned down takeover overtures from Amazon.com (AMZN) and other potential buyers because the BlackBerry maker prefers to fix its problems on its own, according to reports.
- HTC Corp has begun testing new phone models that work around technology cited in a patent lawsuit won by arch-rival Apple Inc (AAPL). HTC’s chief executive voiced optimism over the company’s ability to meet challenging market conditions.
- Honda Motor Co. plans to shift a major chunk of its manufacturing to North America over the next two years, bulking up production capacity in the region by as much as 40% to combat a strengthening yen that has made Japanese cars too expensive to export around the world.
- British oil major, BP, has decided to shut down its 40 year old solar business, once regarded as one of its flagship alternative energy divisions.
Hedge Fund News Update
- Former Fannie Mae CEO Daniel Mudd announced he would take a leave of absence from the hedge fund he runs, Fortress Investment Group, on Wednesday, less than a week after being charged in connection with the 2008 financial crisis
- A handful of hedge fund companies, which include affiliates of Citigroup, Anchorage Capital, Mudrick Capital and others, and specialize in buying up the distressed debt of bankrupt businesses are suing Delphi Automotive PLC and some of its biggest backers, claiming the newly public auto-parts supplier is shortchanging them on a potential recovery of up to $300 million.
- Financial Risk Management (FRM), a fund of hedge funds (FoHF) manager, is launching the first onshore Brazilian fund. The vehicle will invest solely in offshore hedge funds with the aim of tapping the Brazilian pension funds industry.
- Swiss banking group Syz & Co is launching a fund of hedge funds (FoHF), combining commodity trading advisers (CTAs) with tail risk hedging strategies.
Martin Coward, the co-founder and former chairman of the secretive computerized hedge fund Ikos, run by his estranged wife, Elena Ambrosiadou, is pursuing a claim in the UK High Court for ownership of the firm’s lucrative trading algorithms.