Daily Newsletter - Aug 2 2010

Most US stocks rose, extending the biggest monthly gain in a year for the Standard & Poor’s 500 Index, as higher-than-estimated consumer confidence and business activity tempered concern the economic rebound is slowing. The NASDAQ and S&P 500 gained 0.20% and 0.01%, respectively, while Dow Jones fell 0.01% respectively. MetLife Inc. climbed 4.6% as the biggest US life insurer topped income projections. McAfee Inc. had the biggest gain in the S&P 500, rising 9.4%, after the maker of security software reported second-quarter profit that beat analysts’ estimates



UK stocks dropped for a third day, extending the benchmark FTSE 100 Index’s loss this week, after a report showed the US economy grew less than forecast in the second quarter. The FTSE 100 slipped 55.93 points or 1.05% at 5,258.02. Royal Dutch Shell Plc and HSBC Holdings Plc led shares on the FTSE 100 lower after the US government report showed growth in the world’s largest economy slowed to a 2.4% annual rate in the second quarter. Shire, the Dublin-based drugmaker, lost 2.4% as Sanford C. Bernstein & Co. cut its recommendation on the stock

Corporate News Headline
• ICICI Bank reported 16.8% jump in net profit at Rs. 10.26 bn for the first quarter ended June 30, 2010, over the same period last year, on the back of lower provisioning. The bank had recorded a profit of Rs. 8.78 bn in the year-ago period. (BS)
• Reliance Communications withdrew its petition before the tribunal TDSAT, challenging allocation of excess spectrum to GSM operators by the government beyond 6.2 MHz, presumably in view of Trai's latest report on spectrum. (BS)
• NTPC has sought assurance from the Power Ministry to pursue its case to the Oil Ministry for allocation of 30 million cubic metres of gas to fuel the expansion of its gas-based power stations. (BS)
Economic and Political Headline
• The government decided to release Rs. 48.68 bn to public sector lenders for providing concessional loans to farmers. The decision, taken at a Cabinet meeting, will help lenders provide farmers short-term crop loan at 7% interest. (BS)
• China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories. The Purchasing Managers’ Index fell to 51.2 from 52.1 in June, the Federation of Logistics and Purchasing said on its website. (Bloomberg)
• European inflation accelerated to the fastest pace in more than 1 1/2 years on rising energy costs and unemployment held at the highest in almost 12 years. Euro-area consumer prices rose 1.7% from a year earlier in July after increasing 1.4% in June, the European Union statistics office in Luxembourg said. (Bloomberg)