nice little 7mill trade...up tick!!!, page-14

equities advance as bonds retreat (WS) Early World Summary: EQUITIES ADVANCE AS BONDS RETREAT
RWE News
7:46:020 16/03/2006
Sydney - Thursday 16 (RWE Aust Business News) Wall Street
investors traded more confidently as trading progressed overnight after
Treasuries fell in the wake of a better than expected Empire State
report.
Equities traders were initially subdued and cautious after
worries about continuing rising interest rates again hung over financial
markets.
However, buying support increased in the last hour of business.
Wall Street's Dow is 49 points ahead, the S&P 500 up 4, the Nasdaq
composite 13 in front and the 100 index 9 higher.
In addition a Treasury Department report showed that net capital
inflows into the US in January failed to cover that month's record trade
deficit.
The $66 billion net inflow was very close to the $65 billion
forecast but was second month in a row that net inflows into US assets
failed to cover the country's trade gap.
However, it falied to offset the latest much better New York
state manufacturing activity.
It unexpectedly accelerated in March as orders rose and costs
declined.
The Fed Bank of New York's general economic index rose to 31.2,
the highest since July 2004.
Economists expected a reading of 18.9.
The news sent the 10 year cash paper yield up 5 points to 4.75
per cent while the 30 year bond rose a similar figure to 5.76 per cent.
The inflation concern was tempered by a Labor Department report
that showed prices of goods imported to the US fell 0.5 percent in
February after economists expected a drop of 0.6 percent.
On the energy front, the price of April crude fell 93c to $62.17
barrel during the session on the New York Mercantile Exchange.
Gold continued to improve, adding $1.40 to $553.10 oz on the
COMEX spot month.
The weaker US currency held the Aussie dollar in check at US
73.85c compared with last night's local close of US73.90c.
In other news DuPont Co. and railroad Union Pacific Corp climbed on
higher profit forecasts.
The Federal Attorney Spitzer has accused H&R Block of fraud for
marketing an IRA product with hidden fees that hurt savings.
H&R Block rejected the allegations. The company's shares slid.
Lehman Brothers said strong investment banking and stock-trading
operations lifted profit by 24% to a record $1.08 billion for its fiscal
first quarter.
A KKR group has submitted a nonbinding bid of $12.5 billion to
$13 billion to buy a majority stake in GM financing arm GMAC.
The proposal gives GM a possible alternative to a Cerberus-led
offer.
And Ports World said it plans to sell all its US port operations
within six months to an unrelated American buyer, further defusing the
national-security controversy.




WALL STREET ... The Dow Jones industrial average index is
currently 48.91 higher at 11,200.48 while the S&P 500 gained 4.1 points
to 1301.58. The Nasdaq composite is ahead 12.54 to 2308.44 and the 100
index rose 8.96 points to 1690.14. Treasuries weaker on latest data. The
10-year cash paper fell 12/32 ticks to 98 3/32, lifting the yield 5 point
to 4.75 per cent. The 30 year bond yield also rose 5 points to 4.76 per
cent.


US DOLLAR ... has been weaker against major most currencies. It
is trading at 117.39 yen from around 117.54 yen previously. The Euro was
$US1.2050 against 1.2019 previously while sterling was $US1.7456 compared
with 1.7460 previously. The US dollar is lower on the Swiss franc at
1.2991 against 1.3027 previously.


AUSTRALIAN DOLLAR ... lost a tad against the greenback in New
York while crosses mixed. The Aussie is presently changing hands at
US73.85c. This compared with last night's local close of US73.90c. High
has been US74.10c and low US73.71c On the crosses the Aussie is worth
86.65 yen (pre 86.62), 0.6125 euros (pre 0.6133 and 42.27 pence on
sterling (pre 42.21).


EUROPEAN SHAREMARKETS ... posted modest gains overnight led by
resources and European technologies with a good rise in Wall Street
yesterday as background . Key markets saw London up 15, still near a 5
year high, Paris up 11, Frankfurt 28 while Zurich fell 22. The Dow Jones
Stoxx 600 Index rose 0.2% to 334, while the Dow Jones Euro Stoxx Index
added 0.4% to 359.83 at mid session.
In London BHP Billiton, Rio Tinto and oil giant BP advanced after
metals turned positive.
Technology stocks such as STMicroelectronics, Infineon
Technologies and ASML all gained ground during the day.
German luxury auto maker BMW gained after it said it is targeting
4 billion euros in pretax profit in 2006. The company earned 3.29 billion
euros before tax in 2005. Solid earnings from French outdoor-advertising
agency JC Decaux and Belgium's Delhaize also boosted sentiment.
Supermarket operator Delhaize advanced after it said that its
fourth-quarter net profit rose 75%.
In Zurich, reinsurance company Converium Holdings gained nearly
7% after its fourth-quarter net profit more than tripled to 34.2 million
euros from 10.9 million euros a year ago.
At the close London's FTSE 100 gained 14.5 points to 5965.10. the
Paris CAC-40 edged up 10.77 to 5127.93, Frankfurt improved 27.6 to
5896.48 while Zurich again retreated, losing 21.65 to8012.57.On other
markets Amsterdam rose 2 but Brussels fell 8. Milan firmed 90, Madrid
Generalup edged up 1 and Oslo put on 2


METALS ...were firmer with gold supported by a weaker tone to the
dollar after some disappointing US capital flows data. The March gold
COMEX spot month finished $1.40 higher at $553.10 oz while the April
contract also gained $1.40 to $554.40 oz. March silver improved 10.5c to
$10.287 oz and April platinum regained $6.40 to $1029 oz. March copper
lost 80 points to 225.20c lb in New York. Closing LME three-month bid
prices were copper at $4920 tonne, tin $7850, lead $1175, zinc $2320,
aluminium $2447 and nickel $14,725
tonne.

On the three months official bid prices, copper rose $64.50 $4935
tonne but tin dipped $75 to $7850 while lead edged up $17 to $1185. Zinc
rose $66 to $2332 while aluminium improved $433 to $2466 and nickel ended
$100 higher at $14,840 tonne.

OIL ... is currently 93c lower at $62.17 barrel for April crude
traded on the New York Mercantile Exchange while the high has been $63.20
and low $62.00 barrel. The May contract fell 79c to $64.30 barrel with
the high of $65.10 and low $63.95 barrel. The Brent ICE futures market
for April crude futures in London lost 62c to $63.36 barrel with a high
of $64.10 and low $63.03 barrel.

The CRB index fell 1.43 points to 325.54.
ENDS
!END