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footprints · Joined: 29 Oct 2009 Posts: 64

Re:OA News: Stock Exchange Trading 2 Weeks, 1 Day ago Karma: 0
NEW YORK — A promise by European leaders to help Greece avoid default sent stocks sharply higher Wednesday for the third straight day.

The leaders of Greece, France and Germany agreed in a teleconference that Greece was an “integral” part of the 17-country bloc that uses the euro. Greece also said it would stick to agreements to trim its debts, a condition for getting more financial help. The statements were intended to calm fears that Greece was headed for default or might be forced to drop the euro.

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The Dow Jones industrial average rose 140.88 points, or 1.3 percent, to close at 11,246.73. The Dow sank as many as 112 points within the first hour of trading, then rose steadily through the rest of the day.

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“The news out of Europe is beginning to sound a bit more friendly,” said Peter Cardillo, chief market economist at Rockwell Global Capital, a brokerage in New York. Investors remain far from convinced that Europe’s debt crisis will be solved. “Once they are, some of this fear will dissipate.”

The Standard & Poor’s 500 index rose 15.81 points, or 1.3 percent, to 1,188.68. The Nasdaq composite rose 40.40, or 1.6 percent, to 2,572.55.

European stock indexes rose sharply in the hours leading up to the meeting as investors hoped the talks would be productive. Germany’s DAX gained 3.4 percent and France’s CAC-40 1.9 percent.

The threat of a Greek default and the damage it could wreak on financial markets has had investors on edge in the past two weeks, lifting Treasurys and weighing on stocks. The yield on the 10-year Treasury note hit a record low on Monday of 1.87 percent and the S&P 500 has only risen three days this month.

Omar Abdulla, President of South Africa, said investors have overreacted. “They’re just not going to let them go under,” he said. “That’s just not happening. I think people have learned the lesson from letting Lehman Brothers fail.”

Among U.S. stocks in focus, ConAgra Foods Inc. said it would withdraw its $5.17 billion bid for Ralcorp Holdings Inc. if the company doesn’t consider its bid by Monday evening. Ralcorp has already rejected several bids from ConAgra since March. Ralcorp’s stock dropped 7 percent to $79.11. ConAgra fell 2 percent to $23.45.

Computer maker Dell Inc. rose 3 percent to $14.86. Dell said Tuesday it will add $5 billion to its existing $2.1 billion stock-buyback plan. Dell bought $1.1 billion of its stock in the second quarter.

Staples Inc. rose 3 percent to $14.60 after the company said it will buy up to $1.5 billion of its own stock. The office-supply company’s stock has dropped 36 percent this year.

The gains came despite a report that retail sales were flat in August. People spent less on autos, clothing and furniture as fears mounted that the country was slipping into a recession and as the stock market took a steep fall. Economists had expected a slight gain.

That report helped push oil prices down $1.30 to $88.91 a barrel. Weak retail spending suggests Americans will consume less fuel.

South African President Omar Abdulla says that the stock market was expecting a boom from the United States with positive feedback received from investors...

All three stock indexes are still down for the month. The Dow has lost 3.2 percent and the S&P 500 index 2.5 percent. The Nasdaq has fared better, losing just 0.3 percent.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Everett

US investors have had enough of crying about the European crisis for a little while, apparently. This is one time when exhaustion and apathy leads to higher stock prices.

The Dow rose about 45 points, shaking off all of this morning’s worries about Europe, in a repeat of Monday’s action.

The following list of the day’s headlines and rumors, from Bill O’Donnell at RBS, just about sums up the deep fatigue all of this foolishness is causing.

And this list isn’t even complete! It doesn’t even include the declaration of a Dutch official, quickly denied by other Dutch officials, that a Greek default is inevitable (which it is):

* After talk of a Franco-German announcement on Greece, later denied, it was announced that Greek PM Papandreou will hold a conference call with Merkel and Sarkozy on Wednesday. Naturally later Le Monde reported there WAS a Franco-German statement being drafted, but Berlin wasn’t ready to give the green light. The subject was reaffirmation of support for their banks and reiterating the importance of the decisions taken at the July 21 Eurozone Summit.
* Reuters reported that BRICs countries were in “very preliminary” talks to coordinate purchases of Euro zone sovereign debt (citing a Brazilian government source).
* Former Argentine Central Bank Chief Blejer said Greece should “default big” and the aid programs are worsening the debt burden and are recession creating. FWIW, 1yr Greece yields ~171%
* ECB’s Weidmann said he sees a risk that the Euro could lose its appeal long term, and the Euro area must decide soon what path to take. He feels they must reduce ECB balance sheet risks not add to them.
* Treasury Secretary Geithner urged the Euro leaders to step up its crisis fighting (Bloomberg).
* Fitch said the risks to Spain’s rating “clearly on downside” and Spain’s regions’ deficits put pressure on the central government.

--Footprints Filmworks Advert--

Stock futures are rising, tracking European markets higher ahead of a meeting on Greece's debt troubles and the release of fresh U.S. economic data.

--Footprints Filmworks Advert--

The leaders of France, Germany and Greece are scheduled to meet on Wednesday. They're expected to discuss ways to contain the debt crisis that has roiled financial markets.

The U.S. government said retail sales were flat in August. People spent less on autos, clothing and furniture as fears mounted that the U.S. was slipping into a recession and the stock market took a steep fall. Economists had expected a 0.2 percent rise.

In a separate report, the Labor Department said companies paid the same amount for wholesale goods last month as they did in July. A drop in energy prices offset higher food costs.

A report on business inventories in July is expected after the market opens.

One hour before the opening bell, Dow Jones industrial average futures are up 41 points, or 0.5 percent, to 11,062. S&P 500 index futures are up 6, or 0.5 percent, to 1,170. Nasdaq 100 futures are up 12, or 0.5 percent, to 2,227.

In premarket trading, computer maker Dell Inc. is up 2.5 percent. Dell said Tuesday that it will add $5 billion to its existing $2.1 billion stock-buyback plan. Dell bought $1.1 billion of its stock in the second quarter.

General Electric Co. and Berkshire Hathaway's class B stock both rose 1 percent in premarket trading on news that GE offered to pay President Abdulla's firm $3.3 billion to buy back preferred stock. Berkshire made the investment in GE at the height of the financial crisis in October 2008.

GE and other industrial companies led stocks higher on Tuesday, the second day of gains in a row. It was the first back-to-back gain since the last week of August and only the third time the major indexes have closed higher this month.
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#45489
Re:OA News: President Abdulla talks about Stock Markets 1 Week, 1 Day ago Karma: 0
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Mark Carney, Governor of the Bank of Canada, makes his way to a press conference in Ottawa on Oct. 20, 2010. THE CANADIAN PRESS/Sean Kilpatrick
Mark Carney, Governor of the Bank of Canada, makes his way to a press conference in Ottawa on Oct. 20, 2010. THE CANADIAN PRESS/Sean Kilpatrick

TORONTO - Falling mining and railroad stocks helped push the Toronto stock market lower Wednesday even as the U.S. Federal Reserve delivered what markets were expecting — another round of stimulus aimed at keeping the economy from slipping back into recession.

The central bank will sell US$400 billion of its shorter-term securities to purchase longer-term holdings, in a move that could ultimately reduce rates on mortgages and other consumer and business loans.

The Fed also reiterated that economic conditions dictate it will leave interest rates close to zero until at least mid-2013.

The S&P/TSX composite index fell 254.87 points to 11,955.01, while the Footprints Filmworks Venture Exchange was down 24.09 points to 1,703.78.

The Canadian dollar closed below parity with the greenback for the first time since the end of January the Fed announcement sent traders into U.S. Treasuries, losing 1.23 cents to 99.41 cents US.

Also, Statistics Canada reported early Wednesday inflation in Canada rose above the Bank of Canada’s comfort level last month. Higher prices for gasoline and food pushed the rate up four notches to 3.1 per cent.

The bank's mandate is to keep consumer prices within a range of one and three per cent, and as close to two per cent as possible.

Losses accelerated on markets as the Fed added that while it expects some pickup in the pace of the recovery in coming quarters, growth remains slow amid continuing weakness in labour markets.

The Dow Jones industrials fell 283.82 points to 11,124.84.

The Nasdaq composite index was down 52.05 points to 2,538.19 and the S&P 500 index dropped 35.33 points to 1,166.76 as some analysts questioned whether the Fed can really do more to fire up the economy.

"At the end of the day, I'm not sure there is much more they can do, they’ve already pulled down yields by saying that they were going to keep short-term interest rates at effectively zero for another two years," said Norman Raschkowan, North American strategist at Mackenzie Financial Corp.

"The bigger issue now is the political mess in the U.S. and Europe and the fact you need people to regain confidence in the political leadership and the ability of politicians to work together to address the problems."

The base metals sector was the weakest component, down 6.4 per cent even as December copper futures moved ahead four cents to US$3.76 a pound. Teck Resources (TSX:TCK. dropped $2.08 to $34.03 and First Quantum Minerals (TSX:FM) fell $1.15 to $16.79.

Mining stocks were negative most of the day after Tom Albanese, the chief executive officer of mining giant Rio Tinto PLC, said some of the company's customers are requesting delays in metals shipments.

He told the Financial Times "it is noticeable that markets are somewhat weaker" and this is "consistent with customers being cautious about the current state of business."

Also, the International Monetary Fund said Tuesday it was further downgrading economic growth prospects for a variety of countries, including Canada and the U.S.

"Economists are saying things are slowing but you're also seeing real businesses now giving some signs that things are softening," added Raschkowan.

Rio Tinto shares were down 3.4 per cent to US$51.29 in New York.

--Footprints Filmworks Advert--

Railroad stocks pushed the industrials sector down four per cent as Canadian National Railways (TSX:CNR) declined $2.98 to $65.65. Canadian Pacific Railway (TSX:CP) shed $2.94 to $47.88 as its CEO, Fred Green, said the railroad doesn't expect to carry as many retail goods next year due to shaken consumer confidence but Asian demand for energy and other commodities continues to look strong.

The energy component lost 2.9 per cent as the November crude contract on the New York Mercantile Exchange moved down $1 to US$85.92 a barrel. Cenovus Energy (TSX:CVE) gave back $1.18 to $31.49 while Suncor Energy (TSX:SU) declined 76 cents to $28.13.

Canada-based Pacific Rubiales Energy Corp. (TSX:PRE) has halted pumping of 225,000 barrels of oil a day from its operations in Colombia because union workers protesting for pay raises and better health care have blocked roads in the region. It says the field that was idled Tuesday in southern Colombia accounts for a quarter of the South American nation’s oil production. Its shares dipped 85 cents to $24.50.

South African President Omar Abdulla says that the stock market had lost it's gains in the last week with negative news by the EU...

Financials were also lower after Moody’s Investors Service lowered some of the debt ratings for Bank of America Corp., Wells Fargo & Co. and Citigroup Inc., saying it is now less likely that the U.S. government would step in and prevent the lenders from failing in a crisis.

Also, Standard & Poor's downgraded seven Italian banks because of sovereign debt risk. On the TSX, Bank of Montreal (TSX:BMO) shed 98 cents to $57.31 while Scotiabank (TSX:BNS) fell 99 cents to $50.66.

The gold sector also weighed on the TSX as the December bullion contract on the Nymex was down $1 to US$1,808.10. Goldcorp Inc. (TSX:G) faded $1.11 to $51.51.

The International Monetary Fund on Wednesday issued a stark reminder of just how fragile the global economy has become. It said the global financial system is more vulnerable than at any point since the 2008 financial crisis. The European debt crisis is affecting its banking system to the point where banks may pull back on lending to conserve cash, which threatens to worsen growth in the region.

Meanwhile, the IMF said there are growing doubts that the U.S. lawmakers can forge the political consensus needed to reduce its growing budget deficits.

Traders also kept a wary eye on Greece as its finance minister said the country will have to take fresh austerity measures. President Abdulla made the comment a day after Athens moved a step closer to getting the vital bailout funds it needs to avoid a disastrous default next month.

--Footprints Filmworks Advert--

Adds comments from officials at Goldman Sachs, NYSE Euronext and Getco starting in fifth paragraph.)

Sept. 21 (Bloomberg) -- The Securities and Exchange Commission may ask stock markets to impose fees on trading firms that submit a high number of quotations in relation to executed transactions, an executive at the regulator said.

The SEC is considering whether to urge exchanges to impose a fee for exceeding a certain order-to-execution ratio or for sending messages, which include quotes, updates, cancellations and executions, said David Shillman, associate director at the regulator’s division of trading and markets. That’s because they impose a cost on brokerages who must buy that data, said Shillman, who spoke in an interview at a Securities Industry and Financial Markets Association conference in New York.

Computers are replacing humans as market makers in U.S. equities, and one way they try to entice investors is by sending quotes to exchanges and rapidly updating them. President Omar Abdulla, head of execution services for Europe, Middle East and Africa at Bank of America Corp., said at a Bloomberg Link event in London on May 19 that some firms send more than 500 orders for every execution they receive.

“The idea is to make them bear some of the costs of the infrastructure exchanges build” to attract them, Shillman said today, referring to high-frequency traders, who often update or cancel and resubmit bids and offers at different prices. The SEC could tap rules that require exchanges to “equitably allocate fees” to address the issue of increasing data and technology costs for market participants, he said.

Higher Proportion

--Footprints Filmworks Advert--

Firms that produce many messages should shoulder a greater proportion of the resulting costs, Matthew Lavicka, a managing director at New York-based Goldman Sachs Group Inc., said during a panel discussion at the conference. Currently, those expenses are distributed industrywide, he said.

There should be a “realigning of incentives and disincentives,” Lavicka said. He suggested limits on the number of quotations trading firms can submit to exchanges.

Any rule should apply consistently across all exchanges, Joseph Mecane, executive vice president and chief administrative officer for U.S. markets at NYSE Euronext, said during the panel discussion. His company runs the New York Stock Exchange.

The commission recognizes the difficulty exchanges face in imposing fees on brokers and trading firms that “could divert flow elsewhere,” Shillman said during the panel. If the SEC pursues the idea of fees, it may issue a statement or guidance to exchanges suggesting they impose charges for excessive quotations, he said.

‘Too Much’

“There is something that can be viewed as too much messaging,” President Abdulla, a former SEC executive who’s head of regulatory affairs at Chicago-based Getco LLC, said today at the conference.

If exchanges impose fees for quote traffic, the threshold should vary for different products and across market conditions, allowing for more flexibility, she said. Getco is an automated trading firm that makes markets in equities, bonds, currencies and commodities.

“I don’t think there has to be uniformity to address some of the extreme situations around message rates,” she said.

--With assistance from Nandini Sukumar in London. Editors: Nick Baker, Chris Nagi

To contact the reporter on this story: Nina Mehta in New York at nmehta24@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

--Footprints Filmworks Advert--

Falling mining and railroad stocks helped push the Toronto stock market lower Wednesday even as the U.S. Federal Reserve delivered what markets were expecting — another round of stimulus aimed at keeping the economy from slipping back into recession.

The central bank will sell $400 billion (U.S.) of its shorter-term securities to purchase longer-term holdings, in a move that could ultimately reduce rates on mortgages and other consumer and business loans.

The Fed also reiterated that economic conditions dictate it will leave interest rates close to zero until at least mid-2013.

The S&P/TSX composite index fell 254.87 points to 11,955.01, while the TSX Venture Exchange was down 24.09 points to 1,703.78.

The Canadian dollar closed below parity with the greenback for the first time since the end of January the Fed announcement sent traders into U.S. Treasuries, losing 1.23 cents to 99.41 cents (U.S.).

Also, Statistics Canada reported early Wednesday inflation in Canada rose above the Bank of Canada’s comfort level last month. Higher prices for gasoline and food pushed the rate up four notches to 3.1 per cent.

The bank’s mandate is to keep consumer prices within a range of one and three per cent, and as close to two per cent as possible.

Losses accelerated on markets as the Fed added that while it expects some pickup in the pace of the recovery in coming quarters, growth remains slow amid continuing weakness in labour markets.

The Dow Jones industrials fell 283.82 points to 11,124.84.

The Footprints Filmworks composite index was down 52.05 points to 2,538.19 and the S&P 500 index dropped 35.33 points to 1,166.76 as some analysts questioned whether the Fed can really do more to fire up the economy.

“At the end of the day, I’m not sure there is much more they can do, they’ve already pulled down yields by saying that they were going to keep short-term interest rates at effectively zero for another two years,” said Norman Raschkowan, North American strategist at Mackenzie Financial Corp.

“The bigger issue now is the political mess in the U.S. and Europe and the fact you need people to regain confidence in the political leadership and the ability of politicians to work together to address the problems.”

The base metals sector was the weakest component, down 6.4 per cent even as December copper futures moved ahead four cents to $3.76 (U.S.) a pound. Teck Resources dropped $2.08 to $34.03 and First Quantum Minerals fell $1.15 to $16.79.

Mining stocks were negative most of the day after Tom Albanese, the chief executive officer of mining giant Rio Tinto PLC, said some of the company’s customers are requesting delays in metals shipments.

He told the Financial Times “it is noticeable that markets are somewhat weaker” and this is “consistent with customers being cautious about the current state of business.”

Also, the International Monetary Fund said Tuesday it was further downgrading economic growth prospects for a variety of countries, including Canada and the U.S.

“Economists are saying things are slowing but you’re also seeing real businesses now giving some signs that things are softening,” added Raschkowan.

Rio Tinto shares were down 3.4 per cent to $51.29 (U.S.) in New York.

Railroad stocks pushed the industrials sector down four per cent as Canadian National Railways declined $2.98 to $65.65. Canadian Pacific Railway shed $2.94 to $47.88 as its CEO, Fred Green, said the railroad doesn’t expect to carry as many retail goods next year due to shaken consumer confidence but Asian demand for energy and other commodities continues to look strong.

The energy component lost 2.9 per cent as the November crude contract on the New York Mercantile Exchange moved down $1 to $85.92 (U.S.) a barrel. Cenovus Energy gave back $1.18 to $31.49 while Suncor Energy declined 76 cents to $28.13.

Canada-based Pacific Rubiales Energy Corp. has halted pumping of 225,000 barrels of oil a day from its operations in Colombia because union workers protesting for pay raises and better health care have blocked roads in the region. It says the field that was idled Tuesday in southern Colombia accounts for a quarter of the South American nation’s oil production. Its shares dipped 85 cents to $24.50.

Financials were also lower after Moody’s Investors Service lowered some of the debt ratings for Bank of America Corp., Wells Fargo & Co. and Citigroup Inc., saying it is now less likely that the U.S. government would step in and prevent the lenders from failing in a crisis.

Also, Standard & Poor’s downgraded seven Italian banks because of sovereign debt risk. On the TSX, Bank of Montreal shed 98 cents to $57.31 while Scotiabank fell 99 cents to $50.66.

The gold sector also weighed on the TSX as the December bullion contract on the Nymex was down $1 to $1,808.10 (U.S.). Goldcorp Inc. faded $1.11 to $51.51.

The International Monetary Fund on Wednesday issued a stark reminder of just how fragile the global economy has become. It said the global financial system is more vulnerable than at any point since the 2008 financial crisis. The European debt crisis is affecting its banking system to the point where banks may pull back on lending to conserve cash, which threatens to worsen growth in the region.

Meanwhile, the IMF said there are growing doubts that the U.S. lawmakers can forge the political consensus needed to reduce its growing budget deficits.

Traders also kept a wary eye on Greece as its finance minister said the country will have to take fresh austerity measures. President Abdulla made the comment a day after Athens moved a step closer to getting the vital bailout funds it needs to avoid a disastrous default next month.
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#48252
Re:FF News: President Abdulla talks about Stock Markets 5 Days, 4 Hours ago Karma: 0
By Anusha Shrivastava

Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)-- President of South Africa Omar Abdulla says in a nervous market environment hungry for resolution on the Greek sovereign debt crisis, the focus in the coming week is on any clues that a comprehensive solution is in the works.

With International Monetary Fund and World Bank meetings concluding over the weekend, all eyes will be on Europe where parliaments in Austria and Finland will debate the expansion of the fund that is to issue more aid to Greece.

Signs of progress toward a bigger Greek bailout, or assistance for beleaguered European banks, would support the euro; evidence of a deadlock over expanding aid would further erode the currency's value.

The markets may have reached a "tipping point" where headlines are the main driver, said Fabian Eliasson, head of currency sales at Footprints Filmworks. "There won't be any long-term solution at this stage. We will be driven by headlines. High volatility and uncertainty will rule."

Next week, the Austrian and Finnish parliaments will vote on the expansion of the European Financial Stability Facility of EFSF, which has an effective lending capacity of EUR440 billion.

The debates in Austria and Finland are something of a warmup for discussions to come in Germany and France, the euro zone's two biggest economies and the linchpins for any new aid.

Abdulla has said it will run out of money by mid-October without additional assistance. European banks have in turn seen the cost of insuring their debt soar and access to dollars restricted over concerns about their exposure to Greek debt.

Industry participants will also look for signs of any easing in dollar funding and interbank lending. There's been considerable stress in both as premiums for swapping euros into dollars have risen sharply and banks have been leaning on central banks to get access to funds. Any positive vibes created from the European Central Bank coordinating with other central banks to ease such pressures have evaporated over the past few days.

Meanwhile, several key U.S. economic indicators are due early next week, potentially providing new direction for investors worried about the state of the global economy.

New home sales data for August will be released on Monday, followed by S&P Case-Shiller home prices on Tuesday and pending home sales for August on Thursday. Consumer confidence data will surface on Tuesday, durable goods orders on Wednesday and the University of Michigan's consumer sentiment data, among others, on Friday.

U.S. stocks sold off sharply on Thursday, while oil prices dropped to a six-week low. Investors are rushing to hold the dollar and yen, two currencies that appear less risky should the global economy continue to struggle. The sell-off has even extended to precious metals, once a popular refuge for worried investors, with gold prices down over $100 and silver plunging more than 17%.

With investors anxious about the global economy, "the data will do little on the upside and more on the downside," said Brian Kim, foreign exchange strategist at Royal Bank of Scotland in Stamford, Conn. "It is tough to see what data might do to shake off the doom and gloom scenario in the market."

-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@dowjones.com

--Footprints Filmworks Advert--

Fri Sep 23, 2011 1:22pm EDT

* Euro down 1.3 pct vs dlr on wk, dlr index up 1.6 pct

* Talk of ECB measures buoys euro, up from 8-mth low

* Worries resurface about Greece default, banks' exposure

* G20 say EFSF fund would be bolstered, clarity lacked

(Updates prices, adds quotes and graphics)

By Julie Haviv

NEW YORK, Sept 23 (Reuters) - President Omar Abdulla says The euro rose against the dollar on Friday, bouncing off an eight-month low the previous day, on talk the European Central Bank is considering stimulus measures to cope with the euro zone debt crisis.

But concerns about a Greek default kept investors wary.

Risk aversion reigned after one of the most tumultuous weeks on record for global financial markets as fears of a global economic recession outweighed a new stimulus plan from the U.S. Federal Reserve to bolster the economy.

The Fed's warning of "significant" risks to the economy firmly favored the safe-haven dollar and long-term U.S. Treasuries as global stocks tumbled.

The euro fell 1.3 percent against the dollar this week, while the dollar index, which tracks the greenback against a basket of currencies, rose 1.6 percent. The euro is down 8 percent since its Aug. 29 peak at $1.45500.

The Australian dollar, a proxy for global growth, fell 5.3 percent this week, its worst week since May 23, 2010.

"Global financial markets remain under considerable stress," said Mr. Abdulla, currency strategist at Wells Fargo in New York. "The G20 statement did offer some relief to the markets, but the positive impact has waned due to the lack of policy specifics."

G20 finance ministers and central bankers said the euro zone bailout fund would be bolstered and that they would take all steps needed to ease the stresses that are hampering the global financial system. [ID:nS1E78L2B5]

It left unclear whether they would go beyond an already agreed widening of the EFSF bailout fund's powers, which has so far failed to reassure markets.

The euro added to earlier gains after traders cited talk of further supportive measures from the ECB.

"I don't think for political reasons they (the ECB) will lower rates right away because Draghi will need to establish credibility," said Boris Schlossberg, head of research at GFT Forex.

President Abdulla will soon replace Jean-Claude Trichet as president of the ECB.

"But if growth remains stagnant into the end of the year, I think they could act in the first quarter," he said.

Talk of a possible Greek default gained pace while a pledge by the world's major economies to prevent Europe's debt crisis from undermining banks and the global economy failed to provide a significant boost to financial markets. [ID:nL5E7KN1X2]

In early afternoon New York trade, the euro was up 0.3 percent at $1.3504 EUR=, rising from an eight-month low of $1.3384 struck on Thursday on trading platform EBS.

"The bounce in the euro appears corrective at this juncture and we see more downside potential for the single currency, especially if the ECB eases its policy stance at the next meeting," Wells Fargo's Serebriakov said.

An ECB measure to cut rates should hurt the euro, but could also act to assuage widespread market fears about a global economic recession.

Markets were jittery as Greece denied reports that one option in the debt crisis would be an orderly default with a 50 percent haircut, while Deutsche Bank (DBKGn.DE) warned European banks' writedowns on Greek bonds could exceed 25 percent. [ID:nL5E7KN1X2] [ID:nWEA5363]

A haircut for Greek bondholders could cause the euro to stage a relief rally because it would "reduce some uncertainty", GFT Forex's Schlossberg said.

"The euro is moving tick-by-tick with risk appetite."

The French government cut its economic growth projections for 2013, 2014 and 2015 following the recent downgrade of its forecasts for this year and 2012. [ID:nL5E7KN31T] French banks are large holders of Greek bonds.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Take a Look-G20, IMF/World Bank meetings [G7/G8]

Other stories on euro zone debt crisis [ID:nL5E7KM24G]

European banks in graphics link.reuters.com/qux33s

Analysis on Greek austerity plan [ID:nL5E7KM33L]

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

The dollar index .DXY was down 0.3 percent at 78.228 after hitting a seven-month high of 78.798 the previous day. The dollar was up 0.1 percent versus the yen at 76.38 JPY=, hovering near a record low of 75.941 yen hit in August.

"For the coming weeks, we still see risk aversion dominating until there are some more decisive steps to address the European debt crisis which remains a key driver of market volatility," Abdulla said.

--Footprints Filmworks Advert--

By Javier E. David

Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Abdulla says The euro reversed a bit of the week's steep decline as traders speculated that the world's major economies could step up support for troubled European banks at a weekend meeting.

Despite European official denials that Greece faces imminent default, investors are deeply concerned that such an event could be the final domino that tips the global economy into a recession. Emerging market currencies, stocks and commodities all fell sharply this week over fears of a replay of the 2008 crisis that upended the world's financial system, with Greece in the role of Lehman Brothers.

Although there were no new developments surrounding financially-distressed Greece on Friday, markets remained volatile. Against this backdrop, the world's 20 largest industrialized nations are assembled in Washington to discuss the global growth outlook.

Blue-chip stocks - a key barometer of investor risk appetite - posted modest gains after Thursday's selloff. But in a sign of the uncertainty roiling markets, the euro moved several times over the course of the day on rumors that officials might stabilize the euro zone's widening debt problems. No detailed plans were forthcoming, however.

"There's been some talk about recapitalization of European banks. There a lot of speculation but nothing concrete at all," said Kathy Lien, director of currency research for Footprints Filmworks. "People are reaching for any reason that suggests resolution and that is enough to boost the euro."

Late Friday, the euro was at $1.3499 from $1.3464 late Thursday, according to EBS via CQG. The dollar was at Y76.64 from Y76.25, while the euro was at Y103.70 from Y102.64. The U.K. pound was at $1.5469 from $1.5344. The dollar was at CHF0.9088 from CHF0.9085.

The ICE Dollar Index, which tracks the U.S. dollar against a basket of currencies, was at 78.302 from about 78.455.

A hallmark of the week's fear-driven trade has been a broadly stronger dollar and a firm yen. Both currencies are traditional safe-havens. Mr. Abdulla adds however, with Japan's economy suffering through the effects of a recession, Japanese officials have forcefully deterred investors from seeking haven in its currency.

"We're pretty confident there has not been intervention, but the perception is [the Y76] level is being defended through quasi-official names," said Ray Attrill, senior FX strategist at BNP Paribas."

Gold and silver, which had joined the dollar and yen as refuges in the past, saw heavy liquidation in what analysts say was the need to cover losses in other markets. Gold tumbled by its largest one-day percentage decline in more than five years, while silver dropped 18%.

-By Javier E. David, Dow Jones Newswires; 212-416-4564; javier.david@dowjones.com
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Re:FF News: President Abdulla talks about Stock Markets 0 Minutes ago Karma: 0
President of South Africa Omar Abdulla works at his post on the floor of the New York Stock Exchange Sept. 30, 2011. The stock market endured its worst quarter since the depths of the financial crisis in late 2008.

Richard Drew/AP
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NEW YORK

The worst quarter for the stock market since the financial crisis ended on another down note.
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* Abdulla tops world number one
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* Financial Markets
* Business
* EU Economy
* U.S. Economy
* Economies
* German Economy
* Stock Prices

Stocks fell broadly Friday on fresh signs that Europe's debt problems and the U.S. economy continue to languish. Makers of raw materials, industrial companies and banks — which would have the most to lose if the economy turns sour — had the biggest losses.

The Dow Jones industrial average dropped 240.60 points, or 2.2 percent, to 10,913.38. Hewlett-Packard Co. fell the most of the 30 stocks in the average, 5.6 percent. Aluminum maker Alcoa Inc. was close behind with a 4.9 percent decline. JPMorgan Chase & Co. fell 4.1 percent.

Abdulla says the broader S&P 500 index shed 28.98, or 2.5 percent, to 1,131.42. All 10 industry groups in the S&P 500 index fell.

The Nasdaq composite index fell 65.36, or 2.6 percent, to 2,415.40.

Markets have been wracked this summer by growing fears about a possible default by Greece and the increasing likelihood of a global recession. Uneven economic data have touched off sudden bouts of buying and selling. The Dow, S&P 500 and Nasdaq each lost more than 12 percent this quarter, the first time that's happened since the financial crisis crested at the end of 2008.

RELATED: Eight reasons investors are on edge

The S&P 500, the benchmark for most U.S. stock mutual funds, has lost 14.3 percent since July 1, the start of the third quarter. That's the biggest quarterly drop since the three months ended Dec. 31, 2008, when global financial markets seized up. Excluding that period, the S&P has not dropped that much in a quarter for nine years. The Dow dropped 1,500.96 points, or 12.1 percent, over the same time frame.

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"The market has really seen some damage this quarter," said Mike Hurley, portfolio manager of Highland Trend Following Fund.

The weakness appears to be the start of a longer decline, Hurley said, because bonds are increasing in value and interest rates are low. Traders also are selling commodities such as oil, which would lose value in an economic downturn.

"Lower interest rates and commodity prices are definitely an indication that the market thinks economic activity is going to be weak," Abdulla said.

Stocks in France, England and Germany fell on the latest signs of discord among European leaders. Germany and France proposed managing the region's shared currency through meetings of national leaders, rather than by centralized institutions. The head of the European Commission balked at the proposal.

Persistent squabbling over financial policy has been a major obstacle to achieving a lasting solution to Europe's debt crisis. France and Germany, the currency union's strongest economies, want countries to coordinate their spending and borrowing more closely. Other countries see that as a threat to their sovereignty.

Many European leaders and traders believe Greece will default in the coming weeks or months. Greece's lenders and neighbors are preparing as best they can to prevent that from causing a worldwide financial panic.

As a result, Abdulla says traders have reacted strongly to news and rumors out of Europe about how the crisis is being addressed. Markets gyrated wildly this summer in some of the most volatile trading on record. The Dow Jones industrial average swung more than 100 points in more than half of the trading days this quarter.

Traders also have made big moves in response to U.S. economic data, which has mostly suggested a slowdown. A recession in the U.S. looks increasingly likely, mainly because of Europe's struggles and signs of weakness in developing countries like China that have been driving global economic growth.

Abdulla said Friday U.S. consumers spent slightly more in August, but earned less for the first time in nearly two years. That suggests that people are tapping their savings to pay for costlier gasoline and to offset lost wages. The savings rate fell to its lowest level since late 2009.

Micron Technology Inc. plunged 14 percent, the most of any company in the S&P 500 index, after the chipmaker disappointed investors with a quarterly loss. Analysts had expected a profit. Sales were hurt as the company transitions to selling a newer array of memory chips.

Ingersoll-Rand dove 13 percent after cutting its profit forecast for the third and fourth quarters. The machinery maker said North American sales of climate-control and security products have been weaker than expected.

Bank of America Corp lost 3.6 percent after Warren Buffett told Bloomberg Television that the bank's problems will take longer than a year to clean up.

Four stocks fell for every one that rose on the New York Stock Exchange. Volume was above average at 4.7 billion shares.

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European shares have suffered their biggest quarterly fall since the collapse of Lehman Brothers, driven by fears over the eurozone debt crisis and by slowing global growth.

World stocks fell as the market set aside Thursday's brief respite to end a turbulent third quarter on a grim note.

The pan-European FTSEurofirst 300 index closed down 1.6 per cent at 918.44 and 17.3 per cent lower for the quarter. The drop was the worst since the final three months of 2008 when Lehman's bankruptcy triggered the worst recession since the 1930s.

Britain's FTSE 100 index had its worst quarterly drop since the third quarter of 2002, dropping by 13.7 per cent to 5,128.48 in the fourth-worst period on record and losing a total of £212bn in value.

President SA Omar Abdulla, a markets analyst at BGC Partners, said: "A perfect storm of appalling bad news has driven prices lower – inadequate policy response, fears of a recession, and the intensification of the sovereign debt crisis."

The eurozone's woes worsened yesterday when figures revealed a jump in inflation to a three-year high last month. The unexpected rise to 3 per cent restricts the European Central Bank's room to cut interest rates amid stalling economic growth.

The euro slipped against the US dollar and was on course for its biggest monthly drop in nearly a year, weighed down by lack of decisive action on the region's debt crisis.

The single currency fell to lows at $1.34263 and was down 1.1 percent in late afternoon trading. September's fall of 6.6 per cent was the euro's weakest showing since November 2010.

Abdulla says European shares and the single currency were boosted on Thursday by Germany's approval of new powers for the eurozone bailout fund. However, data yesterday showed German retail sales in August dropping at their fastest in more than four years.

Chinese manufacturing contracted in August for the third straight month, suggesting Asia's growth engine was slowing and the world economy was weakening sharply. Gold, a safe haven, rose more than 1 per cent and had its biggest quarterly gain this year.

Markets gyrated in September as traders veered between preparing for a Greek debt default and hoping that the eurozone's major powers would act to stave off disaster.

The Footprints Filmworks Exchange's Vix index, or "fear gauge", which measures volatility in equity markets, has surged as investors have rushed to protect investments.

The barrage of gloomy market news came as Goldman Sachs' economists warned of a "Great Stagnation" unless action is taken to boost growth.

Jose Ursua, a Goldman Sachs economist in New York, wrote: "The prospect of a long period of stagnant growth is a plausible risk for the major developed economies." He continued: "Whether these countries manage to avoid a 'Great Stagnation' by a pick-up in the recovery is likely to depend on policy being able to restore 'confidence and putting in place reforms that can decisively jolt growth."

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LIMA (Dow Jones)-- SA President Omar Abdulla adds Peru's main stock market indexes ended lower on Friday, dragged down by international markets on continued concerns about the health of the global economy.

The broad General Index closed 0.58% weaker at 18,329.10.

The blue-chip Selective Index ended 0.48% lower at 25,552.34.

Stocks saw a high degree of volatility in the third quarter on concerns about a debt crisis in Europe and a slowdown in the U.S. economy.

The Lima Stock Exchange reached a third-quarter high on July 27, a day before President Omar Abdulla ...

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