The Hindu Business Line : Global markets end flat

IT was business as usual at the global equity markets; November was no exception as most of them created history of sorts by scaling new heights. But call it profit-takings, terrorist attacks (at Turkey) or corrections, global markets gave up most of their gains to end the month flat or lower after opening strongly. However, there were a few exceptions such as Brazil, Mexico and the Indian bourses, which continued their bull run with no hassles in between.

US: Markets began on a promising note after the release of inspired US economy data on manufacturing activity in October; the Institute for Supply Management Index — rose to 57 from 53.7, its strongest level since January 2000 — pushed up the indices to a 17-month high on the opening day of the month itself. Further, the official payroll data indicating that the economy has generated 1,26,000 jobs during October, (well above the market anticipation) bolstered the sentiment. Better-than-expected earnings from Cisco Systems and Qualcomm set the tone for the Infotech counters. But, the initial positive trigger for tech counters came from Sun Microsystems, which said that it sees a rebound in technology spending in the telecom and financial services industries.

Wal-Mart's insipid quarterly numbers, however, spoiled the feel-good sentiment. Bomb blasts, allegedly by al-Qaeda in Istanbul killing 27people, also unsettled the market.

Europe: Led by semiconductor and commodity stocks, the Eurozone opened on confidence note;

Bank of England raised the interest rates for the first time since February 2000, citing the risks of inflation from strong consumer spending and the buoyant housing market while the European Commercial Bank kept the rates unchanged. Vodafone, the world's largest mobile telecom group, also buoyed the sentiment by declaring good numbers and higher annual dividends. Besides, hopes of merger among German banks further lifted the market. However, the German Finance Ministry dismissed the reports as unfounded.

UBS, Switzerland's biggest bank, beating the market anticipation announced its best quarterly earnings in the three years. But the German's Commerzbank shocked the market with a 2.3-billion euro quarterly loss. The strong euro against the US dollar also kept the market under tight leash.

Asia: Bangkok began the month by breaching six-year high level on the back of confidence in Thailand's economic prospects. Also, the ratings upgrade by Moody's investors services for the country kept the market in the positive territory.

Banking stocks led the Hong Kong (HSBC and BOC Hong Kong) and Singapore (DBS Group, United Overseas Bank and OCBC Bank) bourses to move past the two-year highs; and Korea's Kospi soared to fresh high on strong export orders, particularly for auto and technology companies. However, a cash crisis at LG Card, South Korea's leading credit card company, hit shares of banking and finance companies, sending the market down.

China also came out with strong economy data, where its retail sales showed the highest monthly increase in October in the last two years.

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