MARKET VIEWEuropean shares are set to resume their upward move on
Friday and remain on track to post a third straight week of
gains, with strong results from Google seen helping technology
stocks, while miners are likely to track firmer metals prices.Spreadbetters see Britain’s FTSE 100 opening 0.3 percent
higher, Germany’s DAX up 0.5 percent and France’s CAC-40 0.6
percent higher.Google’s results trounced Wall Street expectations with the
help of strong advertising sales and deft cost controls, driving
its shares roughly 6 percent higher.Asian shares inched down on Friday, tracking New York and
European shares lower as weak Chinese trade data raised concerns
about the global economy, while the euro eased after another
sovereign debt ratings downgrade. Lingering concerns about
Europe’s debt woes and Spain’s downgrade underpinned the safety
of government bonds.Standard & Poor’s cut Spain’s credit rating on Friday,
sending the euro lower and underlining the challenges facing
Europe’s big powers as they prepare to meet G20 counterparts
over the euro-zone debt crisis. The rating agency, whose move
mirrored last week’s downgrade of Spain by Fitch, cited Spain’s
high unemployment, tightening credit and high private-sector
debt among reasons for cutting the nation’s long-term rating to
AA- from AA.China’s consumer price index rose 6.1 percent in September
from a year earlier, coming within expectations and lending
support to views the central bank will keep interest rates on
hold.MSCI’s broadest index of Asia Pacific shares outside Japan
eased 0.8 percent, but was set for a weekly gain of about 4.7
percent, which would be the largest weekly increase since late
March, when the index ended the week up 4.8 percent.As investors sought relative safety, prices of U.S. Treasury
debt added slight gains in Tokyo on Friday, with the benchmark
10-year note up 2/32 to yield 2.1745 percent, compared to 2.1798
percent late in New York on Thursday.The euro edged lower after S&P cut Spain’s ratings, but
still remained on track for the biggest weekly rally since
January after getting lifted by a flurry of short-covering. The
euro was last down 0.2 percent at $1.3754 following Spain’s
downgrade. Despite the pullback, the euro was still up 2.7
percent this week, a gain that if maintained through Friday
would mark the strongest weekly performance since mid-January.
Euro resistance is seen at this week’s one-month peak of $1.3834
on trading platform EBS, a level that roughly matches a 38.2
percent retracement of a fall from around $1.4940 in May to a
nine-month low of $1.3145 hit last week. The dollar held steady
against the yen at 76.90, having backed down from a one-month
high around 77.48 yen struck this week.Brent crude rose above $111 a barrel, heading for a
second-straight weekly increase, as investors looked to more
data from top oil consumers United States and China for cues on
economic health and fuel demand. November Brent crude edged up
14 cents to $111.25 by 0420 GMT, after gaining nearly 5 percent
this week, ahead of the contract expiry at the end of Friday.
U.S. crude rose 21 cents to $84.44.Gold traded flat but was headed for its biggest weekly gains
in more than a month, shrugging off Spain’s downgrade. Spot gold
was little changed at $1,665.59 an ounce by 0301 GMT, on course
for a rise of 1.7 percent from a week earlier, its biggest
weekly rise since early September in the run-up to a record
above $1,920. U.S. gold traded flat at $1,667.90 an ounce in
thin volume.MARKET SNAPSHOT AT 0515 GMTS&P 500 INDEX FUTURES 1,196.40 down 0.09% down 1.10DJIA FUTURES 11,387.00 down 0.13% down 15.00NIKKEI 8,749.34 down 0.84% down 73.91MSCI ASIA, EX-JP 465.98 down 0.78% down 3.64EURO/USD 1.3764 up 0.07% up 0.0009USD/JPY 76.93 down 0.07% down 0.05SPOT GOLD $1,664.59 down 0.10% down $1.61US CRUDE $84.37 up 0.17% up $0.1410-YR US TSY YLD 2.1816% up 0.002010-YR BUND YLD 2.0960% down 0.0120GLOBAL TOP STORIESStandard & Poor’s cut Spain’s credit rating on Friday,
sending the euro lower and underlining the challenges facing
Europe’s big powers as they prepare to meet G20 counterparts
over the euro-zone debt crisis.G20 finance chiefs and central bank heads from the world’s
biggest economies meet in Paris on Friday needing to find a
solution to a deepening euro zone debt crisis that has fanned
fears of a global recession.China’s consumer inflation dipped to 6.1 percent in
September, retreating further from three-year highs, although
stubborn food price pressures will deter the central bank from
loosening its policy reins anytime soon.Google’s results trounced Wall Street expectations with the
help of strong advertising sales and deft cost controls, driving
its shares roughly 6 percent higher.JPMorgan’s quarterly earnings fell 25 percent, excluding an
accounting gain, as European financial turmoil reduced demand
for securities underwriting and acquisition advice.EUROPEAN COMPANY NEWSReports that Sony could take control of Sony Ericsson are
likely to overshadow the handset maker’s third-quarter results
on Friday, when it is expected to show that a beefed-up
smartphone line helped it to make a small profit.Fitch Ratings downgraded UBS on Thursday and placed seven
other U.S. and European banks on credit watch negative, citing
challenges in the economy and financial markets, as well as the
impact of new regulations.Japan’s Suzuki Motor said on Friday it had served Volkswagen
with a notice of a breach of contract for not allowing it access
to technologies promised as part of their partnership agreement.Anglo-Dutch consumer products maker Unilever is close to
buying Russian cosmetics company Kalina for about $850 million,
the Wall Street Journal reported, citing people familiar with
the matter.Glencore, the world’s biggest commodities trader, is
expected to sign a deal within days for a $800-$900 million loan
to Indonesia’s Bakrie Group to help it refinance a $1.35 billion
facility that became unexpectedly due, sources said on Thursday.TODAY’S COMPANY ANNOUNCEMENTSGermany Codon Q3Luxembourg Luxonen Q3Norway IM Skaugen Q3Portugal Galp Energia Q3 TradeSweden Ortivus Q3Switzerland EMS Chemie Holding Q3Switzerland Sulzer Q3 SalesSwitzerland Syngenta Q3 TradeUnited Kingdom Asos TradingUnited Kingdom Computacenter TradingUnited Kingdom Filtrona TradingUnited Kingdom Record Q2 TradeTODAY’S TOP ECONOMIC EVENTS (all times GMT)G20 finance ministers meeting in Paris (to Oct 15).ECB Governing Council member Erkki Liikanen will give speech
at a hearing by Finnish parliament’s economic committee in
Helsinki, Finland.0900 - Euro zone trade balance for Aug mm. Forecasts are for
a deficit of 4.0 bln euros vs. a 4.3 bln surplus.0900 - Euro zone final inflation for Sept mm, seen at 0.8
pct vs. 0.2 pct. Inflation yy seen at 3.0 pct vs. 2.5 pct.0900 - Italy inflation for Sep mm, seen at 0.1 pct,
unchanged. CPI yy seen at 3.1 pct, unchanged.0945 - International Monetary Fund Executive Director Arrigo
Sadun gives speech in Bologna, Italy.1230 - United States retail sales for Sept. Seen up 0.7 pct
vs. an unchanged reading in Aug. Excluding automobiles, sales
are expected to rise 0.3 pct vs. 0.1 pct increase in Aug.1230 - United States import/export prices for Sept.
Forecasts are for a 0.3 pct drop in import prices and a 0.2 pct
increase in export prices. In Aug, import prices fell 0.4 pct
and