Monday, 8 October 2012
FKLI Related News
U.S. stocks erased gains, after an early rally among benchmark indexes, as optimism about an unexpected drop in the American unemployment rate faded and Apple Inc. shares slumped. The index rose 1.4 percent this week. The Dow Jones Industrial Average added 34.79 points, or 0.3 percent, to 13,610.15, the highest level since December 2007.
The unemployment rate unexpectedly fell to 7.8 percent in September, the lowest since President Barack Obama took office in January 2009, as employers took on more part-time workers. The economy added 114,000 workers, in-line with economists’ estimates, and August’s growth was revised higher by 46,000 jobs to 142,000. Today’s employment report is the penultimate before the November elections as Obama and challenger Mitt Romney debate whose policies would best spur job growth.
“The report is a step in the right direction, ” said John De Clue, the Minneapolis-based global investment strategist at U.S. Bank Wealth Management, which oversees $113 billion, in a telephone interview. However, he added that most market participants are probably looking at this in the context of the presidential election rather than in the context of any fundamental change in the economy. “ we’re still at an unemployment rate that’s not making the Fed happy.”
In Europe, Prime Minister Mariano Rajoy said Spain hasn’t taken a decision on whether to seek a bailout and any decision will be based on Spaniards’ best interests. Spain needs to consider all the conditions, Rajoy said at a meeting with other leaders in Malta today, reiterating the government’s position.
The S&P 500 has rallied 16 percent this year as central banks from the U.S. to China took steps to stimulate economic growth. The benchmark index reached the highest level since 2007 last month as the Fed announced a third round of quantitative easing, saying it will purchase mortgage-backed securities at a pace of $40 billion per month until labor markets “improve substantially.”
Oil Futures settled at their lowest in a week after a boost from the U.S. jobs report was short-lived without overt geopolitical worries to support prices.
Malaysia's KLCI is down 0.2% at 1657.47 at the midday break, tracking declines in Asian stock markets amid concerns over Europe's debt troubles; MIDF Research says market volatility is currently at "a healthy level and should support" the market's momentum; the house notes the KLCI gained an average 3.4% in the month of October over the last 10 years and the KLCI may edge close to the 1700 level based on historical benchmarks. MIDF tips a 1670 year-end target for the KLCI. (Dow Jones Newswire)