Holding steady before GM’s results (12-02-2008)

Wall Street gained on Monday although the session displayed a lot of volatility. Retailers and homebuilders gained as market players invested in the possibility of further rate cuts, while banks and insurers continued to decline as concern persists regarding the effects of the subprime mortgage market.

Asian markets mostly advanced during Tuesday’s session, as here mining issues raised hopes that gains in metals prices will assist commodities producers in surviving global growth. In Japan, insurers led the Topix index down, after faulty accounting of securities was found by auditors, raising concern of additional write-down's by financial companies. Shipping on the other hand advanced after a gauge of freight costs jumped amid speculation China will increase imports. The Baltic Dry Index gained 6.3 as China has begun hiring vessels for emergency coal and iron-ore shipments after the worst snowstorms in 50 years clogged transport links and disrupted production at local mines.

European markets opened in positive territory on energy and mining shares and traded higher in late morning after faltering due to the Credit Suisse announcement of fourth quarter 72% decrease in profit. Helping shares advance was the unexpected improvement of the German investor sentiment. It rose -39.5 ion February from -41.6 in January, where it had been expected to drop to -45.0.

Before the U.S. markets opened futures were mixed as a slew of financial results were expected among which automaker GM's are awaited with much interest, while a new plan to help struggling home owners was due to be unveiled.

Source: ISFM