Good news, maybe? (12-05-2008)

Wall Street indices that ended down on Friday because of renewed credit market fears brought about by AIG’s results, should be feeling a bit better today after HSBC said it has made a profit from last year, in spite of bad debt bets. That and a dip in oil prices together with a dollar that is a little stronger today could bring a breath of relief. 

In Asia, markets were mixed, with Japan recovering from early woes to end higher boosted by exporters, while banks in Australia gave support to the sector after it was announced that Australia's Westpac bank approached St. George bank with US$ 14 billion bid. Mainland China stocks were an exception as investors were expecting more credit tightening measures after consumer prices rose 8.5 percent in April from a year earlier and sure enough, China has ordered banks to deposit a record 16.5 percent of deposits with the central bank, up from 16 percent. 

In Europe shares were higher as here too the news from HSBC was received with a warm welcome by investors while commodities also helped indices in the region rise. 

Futures in the U.S. were inched up as the dollar found some strength and the news from HSBC injected a note of optimism.

  Source ISFM