INTERNATIONAL MARKET NEWS

S&P 500 hits 5-1/2-year high

S&P 500(Standard and Poor) closed at a five-and-a-half-year high, as investors hoped that the slowdown in the economy and pullback in energy prices would ensure that the Federal Reserve would not lift interest rates again any time soon.

The S&P 500 (up 11.59 to 1,326.37) index added 0.9 percent and knocked out its 2006 high from May, closing at its best point since Feb. 2001.

Ref: www.cnnmoney.com/25.Sep

More tough sledding ahead

A surprisingly strong end-of-summer rally set the Dow industrials within 110 points of an all-time high and investors were feeling good. The rally was nurtured by falling oil prices, bets that the Federal Reserve Board won’t lift interest rates again anytime soon and a sense that growth is neither too hot, nor too cold, but just right.
The Philadelphia Federal Reserve Bank’s survey on Sep.21 has forecasted that the economy economy is cooling off and hence the economy is still at risk of heading into a recession, rather than just a slowdown. It also reminded investors that the economy’s problems are not just focused around the much-discussed cooling in the housing market.
Ref: www.cnnmoney.com/24.Sep
Budget carrier expands at airport
Low-fare airline bmibaby is to increase the capacity of its operations at Birmingham International Airport by 60% next year. It will add three more aircraft to the current five and create at least five new destinations from the city on top of the existing network of 13 routes. The firm expects to become the largest carrier at the airport next year. But it is closing its base at Durham Tees Valley airport, redeploying two aircraft to four other UK bases. The company, which opened its Birmingham operation in January 2005, will add one aircraft there in January and two at the end of March.
Ref: www.bbc.com/24.Sep
Biofuels ‘answer’ to trade talks
US tycoon Ted Turner has said a focus on biofuels could break the current deadlock stalling world trade talks.
Speaking at a World Trade Organization forum, Mr. Turner said huge demand for plant-based fuels could help farmers and reduce their need for state aid.
He said subsidies and tariffs should be replaced by support for biofuels.
The current five-year long Doha round of trade talks is suspended because of a failure to reach an agreement over agricultural subsidies and tariffs.
Ref: www.bbc.com/25.Sep