Latest Stock Market News

London shares outlook - Easier after NY falls; bank earnings, interest rates key

LONDON (Thomson Financial) - UK blue chips are expected to open lower Monday following pre-weekend falls on Wall Street, with further earnings reports from UK banks, kicking off today with HSBC, and global interest rate decisions to be the main focus of attention this week.

Spread bettors IG Index expect the FTSE 100 index to open around 8 points lower at 5,346, after closing 57.2 points lower Friday at 5,354.7.

Pre-weekend on Wall Street, the DJIA closed 51.70 points weaker at 11,326.32, while the broader S&P 500 index fell 7.07 points to 1,260.31, and the Nasdaq Composite lost 14.59 points at 2,310.96.

Wall Street retreated after readings on U.S. jobs and manufacturing -- the first reports for the third quarter -- indicated that businesses and workers still face a tough economy.

Asian markets were lower today, with Japan's Nikkei 225 index down 133.53 points at 12,961.063 at midday, while Hong Kong's Hang Seng ended the morning 202.97 points weaker at 22,659.63.

World Stock Markets Rally

LONDON — Asian stocks surged, Europe extended its gains and Wall Street was poised to rally once more Wednesday amid a growing belief that the worst of the credit crisis is over.

In Europe, share prices rose for banks such as UBS, which announced it was issuing new shares to help bolster its balance sheet after another massive write-down linked to bad U.S. mortgages. But automakers lagged on weak U.S. sales data for March, as well as a broker downgrade for Daimler.

In the U.K., the FTSE 100 rose 0.22 percent at 5,865.30, while Germany's DAX gained 0.65 percent at 6,763.77. France's CAC 40 climbed 0.68 percent to 4899.16.

Shares of UBS rose 3.27 percent, while Barclays PLC jumped 3.39 percent and Royal Bank of Scotland added 2.84 percent.

In Tokyo the Nikkei 225 index rose 4.2 percent to 13,189.4. Hong Kong's Hang Seng Index climbed 3.2 percent to 23,872.4.