US markets

The Dow Jones Industrial Average struggled towards a fifth gain in six sessions, as investors moved cautiously following a strong run up and a fresh wave of uncertainty in Egypt. The blue chip Dow index slipped in and out of positive territory, edging up three points to 12043 in mid-day trading. The Dow punched through the 12000 mark Tuesday after encouraging economic data, reversing last week's steep drop on Egypt related concerns. Investors were again closely watching developments there on Wednesday, as violent clashes erupted on the streets of Cairo between supporters and opponents of President Hosni Mubarak.

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Crude oil edged above $91 a barrel, while the Market Vectors Egypt Index, an exchange traded fund of Egypt related stocks, reversed a steep morning decline to trade lower by 0.7% on heavier than usual volumes. The Standard & Poor's 500-stock index was off 0.2% at 1305 and the Nasdaq Composite Index was fractionally higher at 2752. The S&P 500's decline was shallow but broad-based, with all but two of its 10 sectors trading lower. Weighing most heavily on the index were the financial and consumer staple sectors. Genworth Financial was the biggest decliner on the S&P 500, tumbling 9.2% after reporting a surprise fourth-quarter loss and saying the insurer wouldn't split in two until results improve. Electronic Arts rose 15% after the videogame publisher said late Tuesday that its fiscal third quarter loss widened as sales fell, but it announced a better than expected forecast for the current quarter and a plan to spend $600 million buying back its stock.

European markets

European stocks closed higher Wednesday, having given back most of their earlier gains as traders locked in some recent profits, with car makers falling and miners among the strongest performers. The Stoxx Europe 600 index closed up 0.1% at 284.59, having risen as much as 0.6% earlier in the session. France's CAC 40 fell 0.2% to 4,066.53 and Germany's DAX 30 index ended the day virtually flat at 7,183.67. Both indexes posted 52-week highs Tuesday. In London, the FTSE 100 posted solid gains, rising 0.7% to 6,000.07. The top gainer in the FTSE was Imperial Tobacco Group, whose shares closed up 5.9%. The tobacco giant said underlying tobacco net revenue rose 5% in the three months to the end of December. Mining stocks also rose in London. Lonmin PLC gained 4.1% and Eurasian NaturalResources Corp. closed up 3.8%. In France, shares of Schneider Electric SA slumped nearly 3.3%. Rival Emerson Electric Co. Tuesday reported a rise in quarterly profit but said the improvement in its operating-profit margin was partially offset by higher material costs. Car shares posted losses, with Renault SA falling 2.8% and PSA Peugeot Citroen SA down 2.7%.

Asian markets

Asian stock markets ended higher Wednesday on solid Wall Street gains and as investors looked beyond the ongoing unrest in Egypt. Japan stocks were buoyed by advances in exporters and resource-sector shares, although a rise in Sydney was capped by a drop in insurance and transport companies as a severe cyclone approached Queensland state. Several markets were closed for the start of the Lunar New Year holidays.

The Nikkei Stock Average climbed 1.8% in Tokyo for its best percentage gain since early December, and Hong Kong's Hang Seng index finished its half-day session up 1.8%. The rally came as regional sentiment got a fillip after the Dow Jones Industrial Average closed above the 12,000 mark for the first time in two-and-a-half years Tuesday, buoyed by encouraging earnings and manufacturing data. Receding worries about the unrest in Egypt also helped underpin demand for riskier assets. However, investors continued to watch the unfolding situation there. Japan shares followed the upbeat trend set by U.S. markets, with auto makers underpinning broad based gains. Toyota Motor Corp. rose 3.3% and Nissan Motor Co. jumped 3.1% after the companies reported solid U.S. auto sales for January. Casio Computer Co. soared 6.6% after saying Tuesday it had swung to a group net profit in the April-December period, as margins improved due to cost cuts and on a restructuring in its mobile phone handset business.

Base metals

Base metals closed mixed on the London Metal Exchange Wednesday after a quieter day of trading, in which a slip in the euro and some mild profit-taking by participants capped prices. LME three month copper closed unchanged at $9,945 a metric ton. It had, in early European trade, hit a new high of $9,988.25/ton. The euro, which fell from a near three-month high against the dollar amid increasing unrest in Egypt, helped damp demand. Crude futures held on to gains Wednesday as traders looked past rising U.S. fuel supplies to growing violence in Egypt, where unrest could threaten vital oil supply routes. Light, sweet crude for March delivery settled 9 cents higher at $90.86 a barrel on the New York Mercantile Exchange. Protests calling for the resignation of Egyptian President Hosni Mubarak turned increasingly violent Wednesday as Mubarak supporters clashed with anti-government demonstrators. Key oil shipments through the Suez Canal and Sumed pipeline haven't been interrupted amid a week of protests in Cairo and other Egyptian cities, keeping oil prices relatively restrained. A gain in U.S. private-sector jobs further sapped demand for gold even as the dollar gained as a refuge amid continued Egyptian unrest. The most actively traded gold contract, for April delivery, fell $8.20, or 0.6%, to settle at $1,332.10 a troy ounce on the Comex division of the New York Mercantile Exchange.
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