DOW solid bounce to closed off -  Dow  +284.54 pt to 10,258.99 pt by +2.85%

                                                            FTSE 100  +157.09 pt to   5,195.17 pt by +3.12%   

Today / current trading Nikkei 225

165.74

9,805.46

Hang Seng

397.45

19,828.82

      SGX / STI is closed for public holiday (no trading) Wishes all a Happy Vesak day

Dow ends below 10,000

The Dow Jones industrial average (INDU) lost nearly 70 points, or 0.7%, ending at the lowest point since Feb. 8. The S&P 500 (SPX) index lost 6 points, or 0.6%, and the Nasdaq (COMP) lost 15 points, or 0.7%.

A global market rally and a strong housing market report gave stocks a boost in the morning, but trading was choppy through the rest of the session as the euro weakened. Stocks slipped in the last hour of trading.

Stocks have tumbled in May, with the three major indexes all losing more than 10% each, falling into "correction" mode as investors have worried that Europe's growing debt crisis is going to cut into U.S. and global economic growth.

A $1 trillion aid package announced by European leaders helped temper, but not eliminate, worries about the threat of so-called contagion stemming from problems with debt-plagued nations.

Greece got the ball rolling, but concerns remain about the other so-called PIIGS -- Portugal, Italy, Ireland and most recently, Spain. News that Spain's central bank had to take over one of the nation's oldest savings banks over the weekend ushered in the latest wave of European-crisis driven worries. Reports of heightened tensions between North and South Korea added to jitters Tuesday.

On Wednesday, the euro fell 1.4% versus the dollar but remained above that four-year low. The dollar lost 0.3% against the yen.

Volatility: The CBOE Volatility index, or the VIX (VIX), Wall Street's fear factor, ended modestly higher after having fallen through most of the session. The VIX had dropped as much as 13% as the market initially rallied, but turned higher when stocks fell.

World markets: Stocks around the world rebounded. Markets in Europe gained in late trading. Britain's FTSE 100 rose 2%, Germany's DAX gained 1.6% and France's CAC 40 climbed 2.3%.

Asian markets also bounced back following a steep sell-off Tuesday on increased tension between North and South Korea. Japan's Nikkei gained 0.7% and Hong Kong's Hang Seng rose 1.1%. China's Shanghai Composite ended just above unchanged.

Commodities: U.S. light crude oil for July delivery rose $2.76 to settle at $71.51 a barrel on the New York Mercantile Exchange, a gain of over 4%.

COMEX gold for June delivery rose $15.40 to settle at $1,213.40 an ounce.

Bonds: Treasury prices tumbled, raising the yield on the 10-year note to 3.24% from 3.16% late Tuesday. Treasury prices and yields move in opposite directions.

Trading volume: Market breadth was positive. On the New York Stock Exchange, winners beat losers three to two on volume of 1.94 billion shares. On the Nasdaq, advancers topped decliners seven to six on volume of 3.08 billion shares. 

S'pore manufacturing output surges 51% on year in April
Posted: 26 May 2010 1305 hrs

	Photos 1 of 1

SINGAPORE : Singapore's manufacturing output rose for a fifth straight month, surging 51 per cent on year in April.

Excluding biomedical manufacturing, output expanded 31 per cent.

The headline number beat market expectations of about 19 per cent growth.

The Economic Development Board (EDB) says output expanded across all sectors except for the transport engineering cluster.

Output in the biomedical manufacturing cluster nearly doubled, up 95.8 per cent, on year in April, driven by a 102 per cent jump in the pharmaceuticals segment.

EDB says this was due to a different production mix in the active pharmaceutical ingredients.

The electronics cluster grew 60 per cent on year last month, led by semiconductors, as global demand for electronics remained strong.

In the precision engineering cluster, output expanded 56 per cent, spurred by strong demand for semiconductor related equipment worldwide.

Output in the chemicals cluster rose about 25 per cent due in part to new capacity coming online, as well as low base of production last year amidst the global economic downturn.

The general manufacturing cluster grew 17 per cent on year in April.

Bucking the trend, output in the transport engineering cluster fell 23 per cent in April, as a result of fewer ship repair and conversion jobs for the offshore and marine segment.

On a seasonally adjusted month-on-month basis, Singapore's manufacturing output increased 24 per cent in April.

Stocks recover from plunge

The Dow Jones industrial average (INDU) dropped 22 points, or 0.2%, recovering from larger losses earlier in the day. In the first hour of trading the Dow fell as much as 292 points to 9,774.48, the lowest level since Nov. 4.

The S&P 500 (SPX) was little changed and the Nasdaq (COMP) lost 2 points, or about 0.1%.

Stocks had been hit hard through the early afternoon, but began to recover late in the session, with investors nibbling at bank and select technology and consumer issues.

Bank stocks bounced after comments from Barney Frank that one of the more intensely disliked components of the Wall Street reform proposal could end up being cut from the final bill.

The House Financial Services Committee Chairman said that a provision of the Senate's version of the bill that requires banks to spin off their derivatives businesses goes too far. However, he said another provision that stops banks from wagering with their own money is likely to go through. The House and Senate are in the process of reconciling different versions of the bill.

Stocks have been sliding for most of the month on worries about how the European debt crisis will impact global growth. Meanwhile, the euro has been plunging. On Tuesday, the shared European currency briefly fell to levels just above a four-year low it hit earlier in the month. However, the euro cut its losses as U.S. stocks recovered.

"There's been very little news to cause investors to think the market is going to rally against the backdrop of global uncertainty," said Len Blum, managing director at Westwood Capital.

Greece's debt crisis sparked the initial worries about Europe that now encompass the other so-called PIIGS - Portugal, Italy, Ireland and Spain. Spain has been in the news most recently after the country's central bank had to take over a long-established savings bank last weekend.

"We're one international economy right now, and it would be hard for the U.S. to have meaningful growth if Europe is having a slowdown," Blum said.

But another analyst said that Europe's impact on the broad U.S. economy could be more limited than market participants seem to think.

"There's an element of herding and panic in the markets right now," said George Feiger, CEO at Contango Capital Advisors.

"But I don't think what's happening in Europe is as dramatic a problem for the U.S. economy as the stock market is suggesting," he said.

Feiger said that U.S. exports will be constricted as European growth slows and multinational companies will feel the impact of the weaker euro. However, he said that what happens in China and other emerging markets is more directly tied to U.S. growth than what happens in Europe.

The Chinese government has taken steps to slow growth to tamp down inflationary pressure, but demand for all kinds of products and natural resources from emerging markets is expected to stay strong over the next few years.

Volatility: The CBOE Volatility index, or the VIX (VIX), Wall Street's fear gauge, turned lower in the afternoon as stock selling eased and investors dipped back into select issues. The VIX fell nearly 10% to 34.61 after rising earlier in the afternoon.

But even the earlier advance was modest compared to a week ago when the stock selloff was more intense. Last Thursday the VIX jumped 30% to settle at a 14-month high of 45.48.

Correction: Stocks are also vulnerable in the aftermath of a big rally that propelled the Dow 71% between the March 2009 lows and highs hit in late April. In that same time period, the S&P 500 gained 80% and the Nasdaq gained 99%.

Since those rally highs, the Dow lost 10.2%, the S&P 500 slipped 11.8% and the Nasdaq dropped 12.5% through Monday's close.

A decline of more than 10% off the highs means the market has met the technical definition of a correction. The selling has also raised worries about whether stocks are heading into a bear market, technically a decline of 20% to 30% off the highs.

Europe: Markets in Europe tumbled on growing concerns about the debt crisis and how it might impact the global economy. Britain's FTSE 100 fell 2.5%, Germany's DAX lost 2.3% and France's CAC 40 slid 2.9%.

Euro/dollar: The euro lost 0.7% versus the dollar, falling to $1.2285. Earlier, the euro had dropped to within fractions of the four-year low of $1.2146 it hit earlier this month.

The dollar dropped 0.4% against the yen.

Asia: Asian markets were rattled by increased tension between North and South Korea, after reports said North Korean leader Kim Jong Il reportedly ordered the military to prepare for combat.

Japan's Nikkei fell 3.1% and Hong Kong's Hang Seng fell 3.5%. China's Shanghai Composite fell 1.9%.

Economy: Home prices fell in the first part of 2010, although they are up from a year ago, according to the Case-Shiller 20-city home price index. The index fell 3.2% in the first quarter from the fourth quarter of last year, although it gained 2% versus a year ago.

The index dipped 0.5% in March from February's levels, but rose 2.4% from a year ago.

The housing outlook has been mixed lately, with a report on Monday showing a spike in existing home sales in April on the back of a tax incentive that expired last month.

Consumer confidence rose in May, with a Conference Board index climbing to 63.3 from an downwardly revised 57.7 in April. Economists thought the index would climb to 58.3.

Commodities: U.S. light crude oil for July delivery fell $1.46 to settle at $68.75 a barrel on the New York Mercantile Exchange.

Washington focused on the BP (BP) oil spill in the Gulf with both the Senate and House of Representatives holding hearings. Lawmakers in the Senate argued about whether a cap on BP's liability for damages needs to be changed.

COMEX gold for June delivery rose $4 to $1,198 an ounce.

Bonds: Treasury prices rallied, lowering the yield on the 10-year note to 3.16% from 3.23% where it stood late Monday. Treasury prices and yields move in opposite directions.

Trading volume: Market breadth was negative. On the New York Stock Exchange, losers beat winners three to two on volume of 1.89 billion shares. On the Nasdaq, decliners topped advancers two to one on volume of 2.9 billion shares. 

Stocks tumble as euro slumps

Stocks recover after euro rebounds

Stocks gain as European fears fade