Tuesday, July 27, 2010

20100727 0908 Global Market News.

Asian stocks rise on US data, euro inches up
HONG KONG, July 27 (Reuters) - Asian stocks rose to their highest in two and a half months, boosted by solid U.S. housing data, while the euro inched up towards two-month peaks on relief over stress tests on European banks.
"The environment is gradually improving, after U.S. new home sales data and European banks' stress tests, but investors are still not entirely convinced that the recovery is solid," said Soichiro Monji, chief strategist at Daiwa SB Investments.

NEW YORK, July 26 (Reuters) - Global stocks rose on Monday after U.S. data showed a pick-up in new home sales, reviving hopes for improvement in a tepid economic recovery, while the euro firmed against the dollar on increased risk tolerance.
"There was a big revision down in the prior month, but then obviously a rebound this month. We're still at these trough levels, which we've been bouncing along. It's a good sign that we did see an increase after the tax credit expired," said Michael O'Rourke, chief market strategist at BTIG LLC, in New York.

US trims 2010 deficit forecast, economy faces headwinds
WASHINGTON, July 23 (Reuters) - The Obama administration warned on Friday the U.S. economy had encountered "strong headwinds" and the country's fiscal challenge remained grave, but it lowered an estimate for the budget deficit this year.
In broad terms, no major changes were made in the updated outlook for the country's fiscal path over the next decade for the country's deficits and debts, which the White House readily admit remain too high.

US manufacturers continue streak of profit beats
BOSTON/NEW YORK, July 23 (Reuters) - Honeywell International Inc  and Ingersoll-Rand Plc  raised their 2010 profit forecasts and General Electric Co  boosted its dividend in moves that underlined U.S. manufacturers' growing confidence in the economic recovery.
Honeywell boosted its profit forecast for the rest of 2010, saying it expected to see organic sales -- excluding the effect of acquisitions and currency fluctuations -- to accelerate through the second half.

Seven banks fail Europe test, credibility questioned
LONDON/MADRID, July 23 (Reuters) - Just seven European banks failed a health check and were ordered to raise their capital by 3.5 billion euros ($4.5 billion), much less than expected, confirming fears the continent's long-awaited stress test was too soft.
Results of the test of how 91 banks in 20 countries would cope with another recession was released on Friday in a bid to restore investor confidence after the Greek debt crisis spooked markets earlier this year. But it fell on deaf ears.

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