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European and North American Market Review - September 23rd 2010

|Includes: Advanced Micro Devices, Inc. (AMD), GSK
European PMI coming from Eurozone, Germany, and France showed disappointing results, dragging the European shares down. German DAX index ended at 6,184.71 or down 23.62 points and FTSE 100 ended at 5,547.08 or down 0.09%. Elsewhere, mixed US data sent the Dow Jones Index down by 76.89 points or 0.72% to 10,662.42. Nasdaq Composite was also down 0.32% or 7.47 points to 2,327.08 while S&P 500 index slipped 9.45 points to end at 1,124.83.
 
US claims for the week ending September 18th rose from 453K to 465K, above the expected 450K. Existing home sales rebounded in August by 7.6% following a plunge of 27% in July. US leading indicator also edged higher by 0.3% from 0.1% in July.
 
German PMI for manufacturing declined from 58.2 to 55.3 in September; the services PMI also fell from 57.2 to 54.6. For France, PMI for manufacturing and services in September were mixed. Manufacturing PMI inched higher from 55.1 to 55.4 while the services PMI dropped from 60.4 to 58.8. In the Eurozone, PMI for manufacturing fell to 53.6 in September from August reading of 55.1, services PMI also fell from 55.9 to 53.6, while the composite index came out falling from 56.2 to 53.8.
 
Siemens AG acquired Republic Intelligent Transportation Services Inc. The details of the deal for the US-based company were not disclosed. Siemens declined 0.9% to €76.45.
 
Steelmaker ThyssenKrupp declined to €23.22 or down 2.2% after a research note from Bank of America Merrill Lynch Global Research reported that the price of European Hot Rolled Coil steel has declined.
 
GlaxoSmithKline will withdraw its diabetes drug Avandia from European market and will limit the sales of the drug in US. Avandia was GSK’s best-selling diabetes drug before it was discovered that it has increased risk of heart attacks. GSK was down 1.02% to 1,259 pence.
 
Vodafone was downgraded from OUTPERFORM to NEUTRAL by Macquarie. The shares was closed down 0.31% to 161.80 pence.
 
AMD retreated from intraday high of $6.59 to end at $6.40 as the microprocessor producer lowered its sales forecast for 3Q. A drop of 1% to 4% from 2Q is expected in 3Q as demand for notebook computers in Europe and North America is expected to weaken. In 2Q the company booked $1.65 billion. Consensus forecast lies around $1.71 billion on average. 

Disclosure: No positions