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Argentine stocks rise on safe-haven buying

Reuters: [2008-05-09 23:07:00]

BUENOS AIRES, May 9 (Reuters) - Argentine stocks bucked the downward regional trend on Friday because of safe-haven buying triggered by a prolonged farming conflict and a further weakening of the peso, traders said.

The MerVal index <.MERV> of leading stocks closed up 0.59 percent to 2,114.44 points, accumulating a gain of 0.32 percent over the course of the week despite jitters over renewed anti-government protests.

"The MerVal steered away from the global losses because a variety of rumors drove investors to look for refuge in stocks," said Ruben Pascuali, a trader at the Mayoral Bursatil brokerage.

Volume on the broad market swelled to a moderate $32 million and of active issues, 47 advanced, 24 declined and 11 were unchanged.

"Against the backdrop of uncertainty, investors found the best refuge in Petrobras Energia Participaciones <PCH.BA>," Pascuali said.

Stock in the energy firm, the Argentine arm of Brazilian state oil company Petrobras, closed up 3.83 percent to 4.33 pesos per share after it reported a higher first-quarter net profit.

Farmers lined highways for a second day on Thursday in fresh protests against a sliding-scale of grains export taxes that triggered a three-week farm strike in March.

Jitters over the dispute fueled dollar purchases, sending the Argentine peso lower for a fourth straight session. In informal trade between foreign exchange houses, as measured by Reuters, it depreciated by 0.46 percent to 3.265/3.27 per dollar <ARSB=.

However, in formal interbank trade -- where the central bank intervenes in the market to keep the currency stable -- the peso firmed by 0.08 percent to 3.175/3.1775 per dollar <ARS=RASL>.

Fresh farming protests continued to feed the cautious mood in the debt market, with locally traded bonds <AR/BONOS> falling by 0.2 percent on average due to profit-taking of gains racked up earlier in the session.

Peso-denominated Discount bonds fell 0.4 percent in over-the-counter trade while the same bond in dollars rose by the same margin.

Expectation over the release of the April inflation figure -- 0.8 percent -- also caused caution. More than 40 percent of Argentina's debt load is indexed to inflation. (Reporting by Walter Bianchi; Writing by Helen Popper; Editing by Diane Craft) ((helen.popper@thomsonreuters.com; +54-11-4318-0655; Reuters Messaging: helen.popper.reuters.com@reuters.net))

Keywords: MARKETS ARGENTINA/

Mexico bonds slide to 4-month low, stocks fall

Reuters: [2008-05-09 22:50:00]

(Recasts; adds quote, details)

MEXICO CITY, May 9 (Reuters) - Mexican bonds fell on Friday for a third straight day after inflation hit a three-year high, while stocks slipped, dragged down by losses in shares of miners as global metals prices fell.

The government's benchmark 10-year peso bond <MX10YT=RR> fell 0.462 of a point in price to bid 98.12, pushing its yield up 7 basis points to 8.03 percent, a four-month high.

The benchmark IPC stock index <.MXX> lost 0.25 percent to 30,674.36 points while the peso <MXN=> <MEX01> weakened slightly, down 0.04 percent to 10.5755 per dollar at the official central bank close.

Consumer prices rose 4.55 percent in the 12 months through April, well above the level the central bank says it can tolerate, and reinforced expectations this week that borrowing costs will not be coming down anytime soon.

"This is making people nervous that the central bank could raise its reference rate," said Miguel Gaytan, a fixed-income analyst at consultancy Bursametrica Management.

Mexico's central bank has held interest rates at 7.5 percent for six months since last hiking in October 2007.

In stock trading, miner Grupo Mexico <GMEXICOB.MX>, one of the world's biggest copper producers, lost 2.13 percent to 78.16 pesos as copper futures fell as inventories in London and Shanghai surged.

Miner Penoles <PENOLES.MX>, whose subsidiary Fresnillo Ltd is the world's biggest producer of refined silver, lost 3.36 percent to 299.76 pesos.

Penoles floated Frenillio on the London exchange on Friday, raising 905 million pounds ($1.77 billion), as part of a strategy to separate its precious metals from its base metals units.

Mexican airport operator GAP <GAPB.MX> plunged 8.18 percent to 39.07 pesos, the biggest drop the stock has seen since it was listed in April 2006, after it reported on Thursday that its April passenger traffic fell 5.3 percent.

Losses in the IPC index were offset by gains at top retailer Wal-Mart de Mexico <WALMEXV.MX>, which added 1.34 to 43.81 pesos.

Shares of petrochemical producer Mexichem <MEXCHEM.MX> jumped 5.68 percent 78.36 pesos, its biggest single day gain in four months, after Citigroup raised its one-year target price for the stock to 127 pesos from 80 pesos on the possibility of a joint venture in its fluorine business. (Reporting by Michael O'Boyle and Lizbeth Salazar) ((michael.oboyle@reuters.com; +5255-5282-7160; Reuters Messaging: jason.lange.reuters.com@reuters.net)) Keywords: MARKETS MEXICO/

US STOCKS-AIG's loss and record oil sour mood on Wall St

Reuters: [2008-05-09 22:27:00]

(Updates to close)

By Kristina Cooke

NEW YORK, May 9 (Reuters) - U.S. stocks fell on Friday as the price of oil set another record and concerns about the financial sector flared up again after American International Group Inc <AIG.N> reported a massive loss.

AIG's dismal results raised doubts that the end of the credit crisis was near. The world's largest insurer wrote down assets linked to subprime mortgages and said it would need to raise $12.5 billion to boost its balance sheet. Its shares fell almost 9 percent.

Oil rose above $126 a barrel, spurring concerns about inflation and that consumers will pare back their spending as higher prices at the pump cut into their discretionary income.

Pharmaceutical companies added to the gloomy picture. Mylan Inc <MYL.N> posted a wider loss, while Bristol Myers Squibb Co <BMY.N> fell on the threat of generic competition in Europe for its top-selling blood thinner.

"There doesn't seem to be any stopping the price of oil, it hits a record every day, and investors are starting to realize there's not going to be a quick fix to this problem," said Bucky Hellwig, senior vice president at Morgan Asset Management, in Birmingham, Alabama.

"Also, we're seeing the spiral playing out of declining home prices making financials' underlying collateral worth less. At best, financials will have to keep issuing new capital, which dilutes existing shares, so down the shares go."

The Dow Jones industrial average <.DJI> fell 120.90 points, or 0.94 percent, to close at 12,745.88. The Standard & Poor's 500 Index <.SPX> shed 9.40 points, or 0.67 percent, to end at 1,388.28, while the Nasdaq Composite Index <.IXIC> slipped 5.72 points, or 0.23 percent, to 2,445.52.

For the week, all three indexes ended lower: The Dow lost 2.4 percent, the S&P 500 slid 1.8 percent and the Nasdaq tumbled 1.3 percent.

Another big financial company, Citigroup Inc <C.N>, said it intends to shed roughly $400 billion of non-core assets in a bid to become more competitive. [ID:nN08433220].

Citi's shares fell 2.8 percent to $23.63, while AIG shares slid 8.8 percent to $40.28. AIG was the heaviest weight on both the Dow and the S&P 500.

The Nasdaq fell less than the other indexes. Its losses were kept in check by a stronger-than-expected profit from video game maker Activision Inc <ATVI.O> and upbeat broker comments on graphics company Nvidia Corp <NVDA.O>. Activision shares jumped 14.2 percent to $31.64, while Nvidia's stock gained 2.6 percent to $22.53.

Despite the rise in oil, Exxon Mobil <XOM.N> was among the top drags on the S&P 500 and the Dow. Analysts said investors may be locking in profits after strong gains in recent weeks. Others noted that when the price of oil reaches a certain level, it becomes more difficult for energy companies to pass on their higher input costs to consumers.

U.S. crude oil futures hit a record $126.25 a barrel in post-settlement trading, before pulling back somewhat to $126.17. On the New York Mercantile Exchange, June crude settled at $125.96 a barrel, up $2.27.

Shares of Exxon Mobil <XOM.N> fell 0.8 percent to $88.82 on the NYSE. EOG Resources <EOG.N> shed 0.9 percent to $138.50.

Mylan stock sank 8.4 percent to $11.42, while Bristol Myers stock declined 4.7 percent to $21.71.

A record drop in U.S. imports because of slowing domestic demand took a big bite out of the U.S. trade deficit in March despite record high oil prices.

The trade gap shrank 5.7 percent in March to $58.2 billion, the Commerce Department reported; that figure was much smaller than expected.

Volume was light on the New York Stock Exchange, where about 1.10 billion shares changed hands, below last year's estimated daily average. On the Nasdaq, about 1.71 billion shares traded, below last year's daily average of 2.17 billion.

Decliners outnumbered advancers on the NYSE by a ratio of about 8 to 7, while on the Nasdaq, about seven stocks fell for every six that rose. (Editing by Jan Paschal) ((kristina.cooke@thomsonreuters.com; +1 646 223 6154; Reuters Messaging:rm://kristina.cooke.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS

 
============================================================== 
 To access running updates on what's moving U.S. stocks double 
click on [STXNEWS/US] 
============================================================== 
 For other U.S. market data and news, click on codes in 
brackets: 
 U.S. Equities speed guide........................<US/EQUITY> 
 S&P 500 index ........................................<.SPX> 
 Dow Jones industrial average..........................<.DJI> 
 Nasdaq Composite index...............................<.IXIC> 
 Nasdaq 100............................................<.NDX> 
 Russell 2000 small cap................................<.RUT> 
 S&P major sectors..............................<0#.GSPMAJOR> 
 NYSE most active.....................................<.AV.N> 
 Nasdaq most active...................................<.AV.O> 
 Top NYSE pct gainers.................................<.PG.N> 
 Top NYSE pct losers..................................<.PL.N> 
 Top Nasdaq pct gainers...............................<.PG.O> 
 Top Nasdaq pct losers................................<.PL.O> 
 52 week highs: 
    NYSE...............<t.YH.N>  Nasdaq..............<t.YH.O> 
 52 week lows: 
    NYSE...............<t.YL.N>  Nasdaq..............<t.YL.O> 
 
    Main global stock indexes and market reports: 
 FTSE Eurotop 300 .....<.FTEU3>  European report .......[.EU] 
 Nikkei 225.............<.N225>  Tokyo report............[.T] 
 FTSE 100...............<.FTSE>  London report...........[.L] 
 Xetra DAX.............<.GDAXI>  Frankfurt market stories[.F] 
 CAC-40.................<.FCHI>  Paris market stories...[.PA] 
 World Indices.....................................<0#.INDEX> 
 Reuters survey of world bourse outlook.........<EQUITYPOLL1> 
 U.S. IPO diary........................................[IPO/] 
 U.S. Asset Allocation Table.......................[US/ASSET] 
 
 More Reuters News on equities at a glance: 
 Equities ............[E]   US company news.........[TOP/EQU] 
 
    Key non-equities market reports: 
 Foreign exchange......................................[FRX/] 
 Oil....................................................[O/R] 
 US Treasuries.........................................[US/N] 
 International bonds...................................[EUB/] 
 Gold.......................................[GOL/X] or [GOL/] 
 CRB index of commodity futures........................[CRB/] 

US business loans fell $700 mln in latest week-Fed

Reuters: [2008-05-09 22:15:00]

    WASHINGTON, May 9 (Reuters) - Commercial and industrial 
loans on the books at U.S. commercial banks fell in the latest 
week, the Federal Reserve said on Friday. 
 
 WEEK ENDED April 30 (Seasonally adjusted, billions of 
dollars) 
 Business loans..........1,490.4 down..........0.7 
 Govt, agency securities.1,109.9 up............4.6 
 Large time deposits.....2,072.0 down.........31.8 
    
 ((To access stories on Fed policy click on [FED/AHEAD])) 
 (Reporting by Glenn Somerville) 
 ((glenn.somerville@thomsonreuters.com; +1-202-898-8377; 
Reuters Messaging: glenn.somerville.reuters.com@reuters.net)) 
Keywords: USA LOANS/  
    

US STOCKS-AIG's loss and record oil sour Wall St mood

Reuters: [2008-05-09 22:08:00]

(Updates to 4 p.m.)

NEW YORK, May 9 (Reuters) - U.S. stocks fell on Friday as the price of oil set another record and concerns about the financial sector flared up again after American International Group Inc <AIG.N> reported a massive loss.

The Dow Jones industrial average <.DJI> fell 120.90 points, or 0.94 percent, to end unofficially at 12,745.88 and the Standard & Poor's 500 Index <.SPX> dropped 9.39 points, or 0.67 percent, to finish unofficially at 1,388.29. The Nasdaq Composite Index <.IXIC> slipped 5.72 points, or 0.23 percent, to close unofficially at at 2,445.52.

For the week, the Dow fell 2.4 percent, the S&P 500 dropped 1.8 percent and the Nasdaq slipped 1.3 percent. (Reporting by Chris Sanders; Editing by Jan Paschal) ((chris.sanders@thomsonreuters.com; +1 646 223 6343; Reuters Messaging:rm://chris.sanders.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS

 
============================================================== 
 To access running updates on what's moving U.S. stocks double 
click on [STXNEWS/US] 
============================================================== 
 For other U.S. market data and news, click on codes in 
brackets: 
 U.S. Equities speed guide........................<US/EQUITY> 
 S&P 500 index ........................................<.SPX> 
 Dow Jones industrial average..........................<.DJI> 
 Nasdaq Composite index...............................<.IXIC> 
 Nasdaq 100............................................<.NDX> 
 Russell 2000 small cap................................<.RUT> 
 S&P major sectors..............................<0#.GSPMAJOR> 
 NYSE most active.....................................<.AV.N> 
 Nasdaq most active...................................<.AV.O> 
 Top NYSE pct gainers.................................<.PG.N> 
 Top NYSE pct losers..................................<.PL.N> 
 Top Nasdaq pct gainers...............................<.PG.O> 
 Top Nasdaq pct losers................................<.PL.O> 
 52 week highs: 
    NYSE...............<t.YH.N>  Nasdaq..............<t.YH.O> 
 52 week lows: 
    NYSE...............<t.YL.N>  Nasdaq..............<t.YL.O> 
 
    Main global stock indexes and market reports: 
 FTSE Eurotop 300 .....<.FTEU3>  European report .......[.EU] 
 Nikkei 225.............<.N225>  Tokyo report............[.T] 
 FTSE 100...............<.FTSE>  London report...........[.L] 
 Xetra DAX.............<.GDAXI>  Frankfurt market stories[.F] 
 CAC-40.................<.FCHI>  Paris market stories...[.PA] 
 World Indices.....................................<0#.INDEX> 
 Reuters survey of world bourse outlook.........<EQUITYPOLL1> 
 U.S. IPO diary........................................[IPO/] 
 U.S. Asset Allocation Table.......................[US/ASSET] 
 
 More Reuters News on equities at a glance: 
 Equities ............[E]   US company news.........[TOP/EQU] 
 
    Key non-equities market reports: 
 Foreign exchange......................................[FRX/] 
 Oil....................................................[O/R] 
 US Treasuries.........................................[US/N] 
 International bonds...................................[EUB/] 
 Gold.......................................[GOL/X] or [GOL/] 
 CRB index of commodity futures........................[CRB/] 

Next: Nasdaq short interest steady in late April