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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Mosko who wrote (30387)	10/5/1998 11:29:00 PM
From: Moominoid	Read Replies (3) \| Respond to of 94695

I can't get any info on HK today. Is it closed? David

To: Mosko who wrote (30387)	10/6/1998 3:00:00 AM
From: flickerful	Respond to of 94695

European Stocks Expected to Fall, Led by Exporters, on Growth Prospects Tue, 6 Oct 1998, 2:55am EDT Brussels, Oct. 6 (Bloomberg) -- European stocks are expected to fall, led by exporters including Accor SA, as the dollar slipped and concern persisted over slow economic growth. ''I suspect European markets will continue to fall as long as people are convinced the economic outlook will deteriorate,'' said Steve Cordell, a European fund manager as HSBC Asset Management, which has about $3.38 billion of European equities. The Bloomberg 500 Europe Index yesterday fell 4.23 points, or 2.7 percent, to 153.20. Declines outnumbered gainers by about five to two. All benchmark European indexes fell, with those of Sweden and Italy dropping more than 4 percent. Companies which earn revenue in dollars, such as Accor SA, the French hotel operator which operates the Motel 6 low budget chain in the U.S., could be among leading decliners. That's as the dollar fell to 1.6283 deutsche marks, near a 20-month low, from 1.6328 late yesterday in Europe. Accor is expect to report first half earnings rose 49 percent after the close of trading today. A lower dollar crimps profits of exporters because it cuts the value of dollar sales when converted into local currencies. It also make European exporters less competitive than their U.S. counterparts. Nokia Oyj and Ericsson AB could declines. The world's second and third biggest mobile telephone makers not only sell phones in the U.S., they compete with Motorola Inc., the U.S.- based No. 1 mobile phone maker. Deutsche Bank AG could fall after Chief Executive Rolf Breuer said in the U.S. yesterday that third-quarter earnings were ''significantly lower'' than forecast because of bad loans and the slump in emerging markets. Declines could be offset by hopes that Japan may take more steps to increase public spending to accelerate recovery. The Japanese benchmark Nikkei 225 index rose 101.62 points, or 0.78 percent, to 13,049.7 following reports a supplementary budget to be implemented early next year may total as much as 30 trillion yen ($224 billion), including 10 trillion yen in new spending. ''Recovery is going to take some sort of co-ordinated effort, involving Japan primarily and a reassurance the contagion isn't going to impact disastrously on the U.S.,'' said Cordell. Companies considered immune to slowing international economic growth, such as utilities whose earnings tend to depend less on the economic cycle because they provide essential services, could gain. ''I've been buying a lot of U.K. utilities in the last two months,'' said Laurent Imbert, who helps manage $500 million of European equities at Ofivalmo in Paris. ''They are very good value. There's little doubt the U.K. will join the euro zone before long.'' Imbert also likes financial services companies, partly because recent declines have left them inexpensive. ''More cautiously, I'm buying banks like Deutsche Bank AG, Credit Suisse Group, Paribas SA and ING Groep NV,'' Imbert said. ''They're now priced at hardly above their asset value. Now that shares have fallen so much, there's sure to be a wave of takeovers in banking. We're looking at a 15 to 20 percent rise in banking share values in the shorter term.''