Wall Street, London market rally on economic data, falling oil prices

Wall Street rallies on economic data, falling oil

www.chinaview.cn 2008-08-06 07:13:42

NEW YORK, Aug. 5 (Xinhua) --

The Wall Street rallied Tuesday morning as latest data showed the U.S. services sector contracted less last month and the oil prices continued to drop.

The U.S. Institute for Supply Management (ISM) reported that its services sector index rose to 49.5 from 48.2 in June. Analysts had predicted it would rise to 49.0. Any reading below 50 signals contraction.

The report is based on a survey of the institute's members and covers such indicators as new orders, employment, inventories, prices and exports and imports.

Meanwhile, ISM's gauge for prices paid by non-manufacturers fell to 80.8 from June's 84.5, signaling an easing of inflation.

Crude oil continued to fall Tuesday and the price hit 118 dollars a barrel, trading down 3.41 dollars, on the New York Mercantile Exchange. Oil's retreat helped to ease investors' concerns about consumer spending.

The market is waiting for the U.S. Federal Reserve's decision on interest rates which will be announced this afternoon. Most investors expected the Fed to keep the benchmark federal funds rate steady at 2 percent.

In corporate news, Procter & Gamble Co. reported a jump of 33 percent in its fiscal fourth-quarter profit, boosted by price increases, overseas sales and tax benefits. Shares rose nearly 3 percent.

General Motors Corp., U.S. Airways Group Inc. and Carnival Corp. gained most among companies hurt by high energy prices as the oil fell.

American International Group Inc. advanced as it was back by UBS AG's buying recommendation.

The Dow Jones Industrial average rose 190.92 or 1.69 percent, to 11,475.07.

Broader indexes also advanced. The Standard & Poor's 500 index added 19.22, or 1.54 percent, to 1,268.23; and the Nasdaq composite index rose 33.68, or 1.47 percent, to 2,319.24.

Editor: Gao

London market closes higher amid falling oil prices

www.chinaview.cn 2008-08-06 07:11:03

LONDON, Aug. 5 (Xinhua) --

The London stock market closed higher on Tuesday amid falling oil prices.

The benchmark FTSE 100 index ended the day's trading 134.30 points, or 2.52 percent higher at 5454.50.

Travel companies were among the gainers with Wolseley jumping 14.79 percent to be followed by Thomas Cook, which rose 12 percent and TUI Travel, up 10 percent.

Shares of banks also saw boost, with Barclays adding 8.8 percent and HBOS, 12 percent.

Oil firms suffered after crude price fell below 120 dollars. John Wood Group lost 5 percent while Tullow Oil shed 4 percent.

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