By James Langton
(April 10 – 09:00 ET) – The economic schedule is light today, as it is all this week. Instead earnings will be the focus, at least in the U.S. where earnings season starts today.
U.S. Federal Reserve Board chairman Alan Greenspan speaks to the Electronic Payments Association in California. The event will have inflation watchers on edge. Greenspan will be speaking publicly almost everyday this week though.
The one shred of economic data out this morning is the March housing starts reported at 166,100 units, down slightly from 168,000 units for February.
In Europe stocks are mixed with telecoms, media and aerospace firms up and oil stocks declining. The U.K. is the only market on the downside, with the FTSE off 14 points to 6556. France is strongest, with France Telecom leading the way on expectations for its internet spin-off. The CAC 40 has added 103 points to 6411. Germany’s DAX is up 35 points to 7558.
Exxon Mobil Corp. and BP Amoco PLC are reportedly close to an agreement that will allow BP to go ahead with its US$32.7 billion deal for Atlantic Richfield Co. Despite optimism surrounding this deal stocks are down as crude oil has fallen to a five-month low on expectations of increased OPEC supply.
In the financial sector Chase Manhattan Corp. is said to be close to buying merchant banker Robert Fleming Holdings Ltd. for US$6 billion. Wells Fargo & Co. is buying First Security Bank for about US$3 billion. In Australia the National Australia Bank Ltd. is spending US$2.7 billion for MLC Ltd., the insurance and fund management arm of Lend Lease Corp.
In Asia stocks started the week mixed too. Japanese stocks were up strongly, with the Nikkei closing up 366 points to 20,619. In Hong Kong stocks finished lower on its techs and banks. The Hang Seng index closed down 91 points to 16,851.