LONDON (Thomson Financial) - US SUMMARY: Stocks decline; oil prices fall



Index Change Pct change

*DJIA 13,167.20 -172.65 -1.29

*Nasdaq 2,574.46 -61.28 -2.32

*S&P 500 1,445.90 -22.05 -1.50

Nymex crude

for Jan 90.63 usd -0.64 usd -1.18

10 yr US

treasury 4.19 pct -0.05 -1.18

* yesterday's close



STOCKS: Wall Street extended last week's losses yesterday as investors remained concerned about flagging growth and rising prices, and were skeptical a special Federal Reserve credit auction will be a solution. The Dow Jones industrial average fell more than 170 points and all the major indices lost at least 1 pct.

Investors remained nervous even as the Fed offered 20 bln usd in 28-day credit through an auction Monday. The central bank will not release the results until Wednesday, but the aim of the auction is to encourage commercial banks to borrow from the Fed. That, in turn, is designed to boost banks' lending to businesses and consumers and keep the economy humming.

BONDS: Treasury prices rallied Monday, as investors sought the safest available assets to stabilize portfolios ahead of a year-end that is likely to be turbulent for financial markets. Late December is always a critical time for the credit markets. Banks need to straighten out their balance sheets and keep money flowing to consumers as they make their holiday purchases.

FOREX: The US dollar was mixed Monday as a Treasury Department report showed the trade deficit fell to its lowest level in two years during the third quarter. In late New York trading, the euro bought 1.4398 usd, down from 1.4425 usd on Friday.

The British pound edged up to 2.0213 usd from 2.0154 usd, and the dollar slipped to 113.02 Japanese yen from 113.42 yen.

The US dollar edged down after the monthly report was released Monday, but it reflected earlier events such as a decline in US appetite for foreign equities, according to Dan Katzive, foreign exchange strategist for Credit Suisse.

OIL: Prices fell Monday when an OPEC official said the cartel may boost output, calming concerns about tight supplies. Data released by oil tanker-tracker Petrologistics shows OPEC oil exports have already risen by about 400,000 barrels a day. As the oil supply picture is improving, concerns about weakening demand are rising.

METALS: Precious metals rose after earlier trading in negative territory on Monday. February gold edged up 60 cents to 798.60 usd an ounce, while March silver gained 0.02 cent to 13.985 usd an ounce. Industrial metals mostly traded lower on the London Metal Exchange, with copper and zinc showing the steepest declines. Nickel prices edged higher. Copper for March delivery fell 6.85 cents to 2.888 usd a pound on the Nymex.

EVENTS

Nov housing starts (1330 GMT)

Goldman Sachs Group Inc Q4 results. EPS forecast 6.72 usd vs 6.59 (before market opens)





ASIA SUMMARY: Shares mixed, gold recovers from 2-week low



Index Change Pct change

Nikkei 225 15265.22 +15.43 +0.10 (0417 GMT)

S&P/ASX 200 6225.30 -38.20 -0.61 (0417 GMT)

Straits Times 3353.64 +0.08 0.00 (0417 GMT)

Hang Seng 26723.39 +126.81 +0.48 (0417 GMT)

Seoul Composite 1853.12 +13.30 +0.72 (0417 GMT)

BSE Sensex 19234.91 -26.44 -0.14 (0430 GMT)

usd-yen 112.85 -0.13 (2325 GMT)

10-year JGBs 1.530 pct -0.020 (Intra-day trade)

Brent North Sea

crude (Feb) 91.58 usd +29 cents (Intra-day trade)





STOCKS: Asian shares bounced off their worst levels to trade mixed at midday Tuesday with Hong Kong, Singapore and South Korea shrugging off early losses as investors picked up bargains after recent selling.

Australia, Japan and Shanghai remained under pressure as investors continued to weigh concerns about the US economy and fears that high inflation will prevent the Federal Reserve from using rate cuts to revive growth.

BONDS: Japanese government bond prices ended Tuesday morning higher after US Treasurys rose on uncertainty about the US economy and as shares weakened, making investors seek the safety of bonds.

FOREX: The US dollar was weaker against major currencies in midmorning Sydney trade Tuesday, giving up some of its overnight gains after the US current account deficit narrowed in the third quarter to the lowest level in two years and capital inflows rebounded in October.

OIL: World oil prices gained only marginally in Asian trade Tuesday as the outlook for the US economy continued to weigh on the market. In morning trade, New York's main oil futures contract, light sweet crude for January delivery, was 28 US cents higher at 90.91 usd a barrel after closing down 64 cents at 90.63 usd in New York Monday.

METALS: Gold recovered from a two-week low, but remained down on the day as the dollar held onto earlier gains while oil prices turned lower. At 1417 GMT, spot gold was trading at 789.55 usd per ounce, down from 793.55 usd in late New York trade Friday, when the metal lost more than 4 usd.

Copper fell below 6,400 usd to hit a fresh 9-month low while as ongoing weakness in global equity markets underscored concerns demand for the metal might wane if the global economy weakens. At 1517 pm, LME copper for three-month delivery was down at 6,385 usd a tonne against 6,545 usd at close on Friday, having earlier hit 6,357 usd, its lowest since mid-March.

EVENTS:

Japan's Cabinet Office releases Dec economic assessment report

Japan's Nov department sales

Japan 20-year government bond auction (results)

Australia & New Zealand Banking Group Ltd AGM

Australia's Pharmaceutical Industries AGM

Australia's Reserve Bank of Australia releases minutes of Dec 4 policy meeting

Philippine's end-Oct unemployment rate

Jakarta's Berlian Tanker EGM

Jakarta's Holcim Indonesia EGM



EUROPE SUMMARY: London shares close off lows; oil heads down



Index Change Pct change

*FTSE 6277.82 -119.14 -1.86

*DAX 7825.44 -122.92 -1.54

*CAC 5514.88 -90.48 -1.61

UK10-year

Bond 94.67 +0.06

UK 30-year

Bond 96.24 +0.48

Forex

stg-usd 2.0155 -0.0064 (Intra-day)

eur-usd 1.4375 -0.0069 (Intra-day)

Brent Crude

ICE (Jan) 90.95 usd -74 cents (1615 GMT)

*Yesterday's close



STOCKS: Leading shares closed off lows with the retail and the mining sectors bearing the brunt of the FTSE falls.

Blue-chip retailer Next and second-liner Debenhams fell back after Seymour Pierce cut its ratings on both companies in a review of UK general retailers.

Elsewhere, the miners were hard hit on the back of weaker commodity prices. Vedanta Resources was down 110 at 1,999, Xstrata dropped 140 to 3,457, Kazakhmys was off 60 at 1,250, and BHP Billiton fell back 67 at 1,478.

BONDS: European government bonds were higher, supported by weaker stock markets. In the UK, gilts were supported by weak economic data, with more bleak housing market data.

Rightmove said in its monthly survey that UK house prices slumped 3.2 pct on the month in December, the largest fall since the data series began in 2002.

FOREX: The dollar continued its fine run in the penultimate week of the year. The US currency was strong against the euro, which slipped below the 1.44 usd mark for the first time since the end of October. Meanwhile, sterling headed down the 2.00 usd level for the first time in three months.

Attention this week will be on how last week's joint announcement by the world's leading Western central banks to provide liquidity to money markets impacts on equity investors' risk appetite.

In the euro zone, the focus will be on the closely-watched Ifo survey on German business confidence on Wednesday and ECB president Jean Claude Trichet's address to the EU Parliament on the same day.

In the UK, sterling markets will be gripped by a raft of economic news, not least Wednesday's publication of the minutes to the last meeting of the Bank of England's Monetary Policy Committee, when the key Bank rate was cut a quarter point to 5.50 pct.

OIL: Oil headed down towards 90 usd in light year-end trade as a rebounding dollar and continuing economic woes offset heightened geopolitical fears and heavy snow storms in the US.

METALS: Gold recovered from a two-week low, but remained down on the day as the dollar held onto earlier gains while oil prices turned lower. At 1417 GMT, spot gold was trading at 789.55 usd per ounce, down from 793.55 usd in late New York trade Friday.

Elsewhere, platinum was up at 1,482 usd per ounce from 1,472 usd Friday. Palladium dipped to 348 usd per ounce from 353.50 usd, while silver was trading at 13.70 usd per ounce against 13.85 usd.

EVENTS:

UNITED KINGDOM

INTERIMS

B Global



AGMs

Rubicon Software Group



TRADING STATEMENTS

Aggreko

Charter

Cookson Group

Drax Group

National Express

Petrofac

Regus Group



ECONOMICS

UK Nov CPI

BBA, BSA to appear before Treasury Select Committee

BoE money market auction of 11.35 bln stg

BoE's King, Gieve to appear before Treasury Select Committee



BENELUX

Dutch Sept-Nov unemployment



EASTERN EUROPE

Hungary Oct final construction

Hungary Nov detailed budget data; Dec give estimate

Polish central bank starts two-day policy meeting

Gazprom board of directors meets

OGK-1 9-mths IFRS results

Federal Tarriff Services meets to discuss 2008 electricity pricing



EUROPEAN UNION/EURO AREA

Euro zone Oct foreign trade (seasonally adjusted). Forecast +2.9 bln eur vs +3.9 bln

ECB main refi result

EU's Barroso at European Council followed by press conference

EUs Barroso, McCreevy at Kuwait Global Forum in Brussels

EUs Barroso at plenary at European Council

EUs McCreevy addresses European Parliament economics committee

EUs Reding meets Norddeutschen Rundfunk chief in Hamburg

EUs Piebalgs meets Dutch minister for economic affairs in the Hague

EU court rules on Swedish/Swtzerland tax case

EU presents white paper on mortgage credit markets



FRANCE

Zodiac Q1 sales

Kaufman et Broad FY results. Net profit forecast 92-100 mln eur vs 84 mln; sales 1.40-1.44 bln eur vs 1.28 bln

Wendel investor day



GERMANY

Arcandor FY results

Press conference by Hesse Ministry for Economy, Transport, State Development about decision on Fraport AG's application to expand Frankfurt Airport

ThyssenKrupp CEO Ekkehard Schulz to speak at ZEW economic institute event on 'Economic Policy First-Hand' in Mannheim, Germany



ITALY

Alitalia board meeting on partnership



SCANDINAVIA

Finnish Oct GDP

Finnish Nov labour force survey

FOEX Pulp & Paper price statistics



SPAIN

Altadis EGM to approve Imperial Tobacco bid



SWITZERLAND

Oct retail sales

SNB's Thomas Jordan speech on falling real estate prices in the US and rising prices in Switzerland

SNB's Philipp Hildebrand speech on the Challenge of Sovereign Wealth Funds



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