Business :: The St. Kitts-Nevis Observer

The euro has powered higher for the last several days versus the U.S. dollar, as investors were initially worried that local banks would have to borrow heavily from the European Central Bank (ECB) to meet their financing needs. However, less was borrowed than anticipated. Spain’s successful raising of 3.5 billion euros in five-year bonds also helped the euro-zone currency.

The euro is trading at $1.2500 versus the dollar, a full seven cents from a 4-year low of $1.1805 set a month ago.

The U.K. pound hit a two-month high against the dollar in early trading as the U.S. currency struggled on speculation that a weak reading of American employment later in the day would highlight weakness in the economy.

The pound climbed as high as $1.5199 in Asian trade, its strongest since early May.

The Canadian dollar appreciated to reach a 2-day high against the U.S. dollar on disappointing reported U.S. economic figures.

The loonie opened at $9430, up 0.37 of a cent.

Stock Market Wrap-up - Thursday, July1, 2010

U.S. major stock indexes ended lower for the sixth consecutive session as jobs and housing reports came in below expectations, ahead of Friday's key payroll report. Data showed U.S. pending-home sales plunged 30% in May, the initial month after the homebuyer tax credit expired, and weekly jobless claims unexpectedly rose.

- The Dow Jones Industrial Average closed down 41.49 points (0.4%).
- The Nasdaq Composite fell 7.88 (0.37%).
- The Standard & Poor's 500 index slipped 3.34 (0.32%).

European stocks started the third quarter down, as well.

- France's CAC-40 index lost 3%.
- Germany's DAX fell 1.8%.
- The U.K.'s FTSE 100 index slid 2.3%.

US Dollar vs Euro, Pound, Canadian Dollar - Thursday, July 1, 2010

The euro is down slightly against the U.S. dollar in early trading, slipping back from a rally the previous day, when the European Central Bank announced it was lending an amount to member banks that was smaller than expected.

The euro was trading at $1.2205 in morning European markets, down slightly from $1.2209 in late New York trading.

The U.K pound slumped in overnight trade versus the dollar, as the Asian markets dropped, thus boosting the safe-haven dollar against more risky currencies.

The pound is down to $1.4922, from $1.5081 in New York.

The Canadian dollar fell to a 3-week low against the U.S. dollar, as crude oil prices slumped amid fears of a slowdown in global economic growth curbing demand.

In early trading, the loonie was at $.0.9398.

Stock Market Wrap-up - Wednesday, June 30, 2010

The major U.S. stock indexes were all down, completing a quarter that saw the Dow Jones lose 10 percent, while the S&P 500 index, rated by many investors as the best measure of the market's health, lost 11.9 percent. It was the worst financial performance in a quarter since the collapse of Lehman Brother late in 2008. Both indexes reached their low points for the year.

Among the reasons for the day’s fall was a disappointing jobs data report from Automatic Data Processing (ADP), which fell well below market expectations.

- The Dow Jones industrial average fell 96.28 (1 percent).
- The Standard & Poor's 500 index fell 10.53 (1 percent).
- The Nasdaq composite index fell 25.94 (1.2 percent).

Major European markets recovered from Tuesday's sell-off, with Germany's DAX closing up 0.23 percent, and France's CAC 40 gaining 0.29 percent. Asian stocks were generally lower, with Hong Kong's Hang Seng losing 0.59 percent.

US Dollar vs Euro, Pound, Canadian Dollar - Wednesday, June 30, 2010

The euro extended its upward trend against the U.S. dollar in the European session, on the back of a rise in domestic European stocks, and a drop in German unemployment.

The euro rose to a 2-day high of $1.2305 in early trading.

The U.K. pound dropped slightly against the dollar after worse-than-expected data on British house prices.

GBP/USD hit $1.5028 during European early trading.

The Canadian dollar was little changed after a report showed gross domestic product unexpectedly stalled in April.

The loonie is trading at $.9472.

Stock Market Wrap-up - Tuesday, June 29, 2010

Major U.S. stock indexes were hit hard in a widespread drubbing that reawakened fears that the stock market correction is alive and well. All 30 stocks in the Dow fell, as did all but one stock in the S&P 500, showing just how widespread the downturn was.

The S&P 500 closed at its lowest level of the year. From a high point in April, the index has now slid a total of 14.5 percent, taking it to its lowest level since November 2009.

The stock value slippage was largely related to ongoing concerns about the health of the global economy, including a key economic indicator for China that was downgraded, raising concerns about the country’s growth.

- The Dow Jones industrial average closed down 268.22 points (2.7 percent).
- The S&P 500 lost 33.33 points (3.1 percent).
- The Nasdaq Composite sank 85.47 (3.85 percent).

CMMB Market Watch week ended 25th. June, 2010

EASTERN CARIBBEAN
On the ECSE, the shares of three companies traded. The Bank of Nevis led the way with 4,500 units holding firm at $6.00 per share. Also 100 ECFH shares traded at $15.00 closing up $2.51 or 20% for the week. Grenada Electricity Services also gained 1 cent ending the week at $10.98.

On the Regional Government Securities Market, the Government of Saint Lucia’s $16 million 91-day T-bill issue was oversubscribed, while the Nevis Island Administration’s $20 million 365-day T-bill issue was fully subscribed resulting in a 6.75% discount rate.

In other news the Eastern Caribbean Home Mortgage Bank issued a maximum of EC$50 million of 3-year 6.0% secured fixed rate tax-free bonds on the 29th and 30th of June 2010. And the next auction of the Government of Saint Lucia’s 6% $11 million 91-day T-bills, took place on July 1st 2010.

TRINIDAD
Over in Trinidad, all three market indices declined, following sharp reductions in both market volume and value of shares traded last week. Of the 16 shares traded, 2 advanced, 7 declined while another 7 held firm. National Flour Mills led the way with over 27% of the shares traded, closing down 3 cents to end the week at 97 cents per share.

JAMAICA
In Jamaica, the trend of declining regional markets indices continued, as JSE indices fell from last week. The advance decline ratio was 12 to 17 as over 10 million units of stock traded valued at nearly J$186 million. NCB Jamaica emerged volume leader with 37% while Caribbean Cement Company Limited was the lead advancer gaining 7.10%, ending the week at $4.98.

BARBADOS
On the Barbados Securities Exchange, the Local and Composite Indices declined marginally as the Regular Market traded a total volume topping 61,000 shares. Four company shares traded, led by Sagicor Financial Corporation with 83% of the weekly total, also losing 5 cents to round off the week at $3.00 flat.

INTERNATIONAL
Internationally, stocks posted mixed results as banks rallied after Congress finally settled on a financial-reform bill. Overall, stocks lost 2.9% for the week, led by energy shares. The Dow Jones Industrial Average closed down, while the S&P 500 and Nasdaq both closed up for the week.