Financials ruling markets (18-02-2008)

Wall Street markets were mixed on Friday as the data that was released on manufacturing, consumer confidence and import prices served as a reminder that the economy is going through difficult times. The week ended on a lackluster note, with the Dow and the NASDAQ lower, while the S&P finished in positive territory.

Asian markets were mostly declining, while Japan ended the day higher led by Sony, which gained after a report that rival Toshiba may get out of the high definition DVD market. The financial sector was hard hit throughout the region, with losses of around 6% from the top three Australian banks, after Australia & New Zealand Banking Group said it expects higher loss provisions related to derivatives exposure to affect profit growth. Financials in Japan fell led by Mizuho, offsetting gains by Sony.

In Europe stocks were rallying since early morning trade led by banks as Qatar is accumulating shares in Credit Suisse and plans to spend as much as $15 billion on European and U.S. bank stocks over the next year. In the U.K., Chancelor of the Exchequer Alistair Darling on Sunday announced the government’s decision to nationalize Northern Rock as none of the two bids offered were deemed adequate.

The dollar managed to find a foothold after falling at the end of last week on the disappointing economic data released, while oil prices remained firm above $95.

U.S. markets are closed today for President’s day.

Source: ISFM