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Oct 4, 2013

NYT | Global Update October 4, 2013: Cancellation of Trip by Obama Plays to Doubts of Asia Allies

The New York Times International Herald Tribune
October 4, 2013
Compiled 20:45 GMT

Global Update


Cancellation of Trip by Obama Plays to Doubts of Asia Allies

President Obama's cancelled tour through Asia has undercut the United States' much-promoted "pivot" to the region and given China a new edge in the tug-of-war for influence.

With No New Plan, Boehner Makes Angry Plea on Shutdown

Four days into the crisis, Congress appeared no closer to a resolution, and Speaker John A. Boehner urged President Obama to negotiate over his health care law.

Italian Senate Panel Votes to Strip Berlusconi of His Seat

The expulsion vote against Silvio Berlusconi represents his second setback of the week, after his failed attempt to bring down the country's fragile coalition government.
Fashion & Style

Video: Paris Fashion Week Debrief

Cathy Horyn and Eric Wilson discuss the spring 2014 collections at Paris Fashion Week.

Op-Ed Contributor

Different Francis, Same Mission

Pope Francis has charged a new Council of Cardinals to find ways of renewing the Catholic Church.

Italy Suspends Search for Shipwreck Victims

Choppy waters around the island of Lampedusa hampered a search by Italian Coast Guard divers for the hundreds of migrants still missing.

As Desperation Mounts, More Migrants Cast Their Lot on a Troubled Sea

A growing number of migrants from Africa and the Middle East are crossing the ocean for Europe, and many never make it.
Common Sense

In Rural Iowa, Ambivalence About the Shutdown

Their representative is a leader of a single-minded move to kill the new health care law, even at the price of a debt default, but residents of Iowa's Fourth District say the political paralysis in Washington is a bigger concern.

Wall Street Seeks to Soothe, While Preparing for Trouble

Financial executives are making some early preparations on the possibility of a default on public debt should Congress fail to raise the debt ceiling.

Many Win in Offering, but Some Are Off List

Twitter's public filing listed some of its biggest winners, including investment firms and current and former executives, but two of its co-founders were missing.

Samsung Soars While HTC Reports First Quarterly Loss

Samsung Electronics probably benefited from memory chip sales, analysts said, while HTC said it would lose about $101 million after its flagship smartphone failed to catch on.

Twitter's I.P.O. Plan Has an International Focus

The social-networking service said in its stock filing that more than three-quarters of its recent users are outside the United States.

Twitter Filing Opens Books on Company

In making public its prospectus, Twitter sets the clock on one of the most anticipated stock sales of the year and shows how important mobile is to its business.

Summer Camp for the Winter Olympics

Athletes encountered wonder and terror in New Zealand, the stand-in for J. R. R. Tolkien's fictional universe, while preparing for a shot at the Winter Olympics.

In Formula One, a Grip Not Easily Loosened

Bernie Ecclestone, who has wielded unfettered control in Grand Prix racing for decades, is facing legal action and criticism from race teams and track owners.

Form, Function and the Making of Fast Cars

Formula One car design today is not just about designing a car, it's about redesigning a car all season long.

With Federal Wallet Closed, States Agonize Over Opening Their Own

Governors are struggling over when and whether to step in with state funds to keep an ever-growing list of shuttered parks and programs operating.

G.O.P. Elders See Liabilities in Shutdown

Senior Republican officials say the conservatives pushing the shutdown are undermining the party and its efforts to modernize, and helping President Obama just as his standing with the public has begun to slide.

Boehner Pledges to Avoid Default, Republicans Say

Speaker John A. Boehner has privately told Republican lawmakers anxious about fallout from the government shutdown that he would not allow a potentially more crippling federal default.
Op-Ed Contributor

Why Italians Love Francis

The new pope, a former bouncer, is shaking up Rome.

Silvio Berlusconi Undone

His attempt to bring down Italy's coalition government was one Machiavellian maneuver too many for his followers.
Op-Ed Columnist

Reform Turns Real

Even the bad news from the first few days of Obamacare going into effect is good news for the program's future.

Economic Confidence Plummets: NYT | ALERT FGC BOLSA - FGC FINANCIAL MARKETS OCTOBER 4, 2013:

The New York Times | MY ALERTS


Compiled: October 4, 2013 05:37:39 PM


Economic Confidence Plummets
A daily confidence barometer shows it fell to its lowest three-day moving average since December 2011.

ADVFN III Evening Euro Markets Bulletin October 4, 2013.

ADVFN III Evening Euro Markets Bulletin
Daily world financial news Friday, 04 October 2013

London Market Report
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Markets in 'wait-and-see' mode as shutdown continues
After fluctuating between gains and losses for most of the day, the FTSE 100 finished broadly flat on Friday as stocks struggled for direction.

In the absence of economic news and ongoing political uncertainty in the States, markets remain in "wait-and-see mode", according Senior Market Analyst Michael Hewson from CMC Markets.

The FTSE 100 finished just 4.84 points higher at 6,453.88, but finished down 58.78 points on the week a fall of 0.9%.

Since the partial shutdown of the US government has extended into its fourth day, governmental agencies and departments will not be releasing economic data as scheduled, while politicians continue to wrangle over the budget and the crucial debt ceiling limit.

Hewson said: "In the absence of today’s scheduled US employment report with little in the way of meaningful trading volumes going through, traders chose to start their weekends early."

Markets are hoping that Congress will agree to raise the $16.7tn debt limit by the October 17th deadline to prevent the US government defaulting on its obligations, something that the Treasury Department said could have a “catastrophic effect” on all aspects of the US economy. It said in a report on Thursday that a default could lead to “events of the magnitude of late 2008 or worse”.

Meanwhile, International Monetary Fund (IMF) Managing Director Christine Lagarde said failure to raise the debt ceiling would do damage to the global economy: “The government shutdown is bad enough, but failure to raise the debt ceiling would be far worse, and could very seriously damage not only the US economy, but the entire global economy."

Comments from House Speaker John Boehner continue to be in focus after he said he would not allow a default and would consider using a combination of Republican and Democratic votes to lift the debt ceiling if needed. Speaking today he called for both sides to "sit down" and negotiate, saying "this isn't some damn game".

"I don't believe we should default on our debt [...] If we are going to raise the amount of money we can borrow, we ought to do something about our spending problem and lack of economic growth."

FTSE 100: Standard Life gains on JPMorgan comments

Financials were performing relatively well today with insurance giant Standard Life leading the risers following comments from JP Morgan, which said that the group will benefit from "UK operational leverage, growth potential in Standard Life Investments and a secure dividend". Analyst Ashik Musaddi said he expected the firm's £300m special dividend - announced at the time of the full-year results in March - to be brought forward.

Prudential and Resolution were also edging higher, along with banking groups HSBC and RBS. Emerging market-focused Standard Chartered however was in the red after receiving a ratings downgrade from Numis last night.

Barclays also fell despite a ratings upgrade by Investec from 'add' to 'buy'. The copmany today announced it had received valid acceptances in respect of over 3bn of the new discounted shares offered to shareholders (around 95%) for its £5.8bn rights issue. Bookrunners who have underwritten the offer will sell the remaining 173m shares today.

Sweeteners and food ingredients group Tate & Lyle was in demand despite a mixed second- quarter update. The company said that adjusted operating profits in the second quarter were slightly below last year due to softness in the US beverage sector but it still maintained its guidance for "another year of profitable growth" in the 12 months to March 2014.

Shares in GlaxoSmithKline edged lower after US pharmaceuticals peer Eli Lilly warned on its 2014 revenue target due to "challenging" market conditions and foreign-exchange effects in Japan and the emerging markets. Panmure Gordon said Glaxo is the most exposed to Japan (among the companies its covers) which accounted for some 8.4% of its revenues in 2012.

Kingfisher, the DIY retailer which owns the B&Q and Screwfix brands in the UK, was out of favour and continues to be under heavy selling pressure since the release of its interim results on September 11th. The firm reported a 0.8% in like-for-like sales in the first half (at constant currency) and a 1.6% drop in adjusted pre-tax prifits. Since then, the stock was fallen by around 12%.

FTSE 250: Carpetright sinks on CEO exit, profit warning

Shares in carpet and curtains retailer Carpetright plunged this morning after announcing the departure of Chief Executive Darren Shapland as it warned falling sales meant full-year profits would be "significantly" below its previous expectations. Carpetright reported that underlying sales in the UK were down 2.5% in the 10 weeks ending September 29th and had fallen 7.6% in the rest of Europe in local currency terms.

Retail peers Dixons and Home Retail however were on the rise after UBS upgraded its ratings for both stocks from 'neutral' to 'buy' and hiked target prices. In a review of the UK retail sector, the bank said that it foresees a re-rating "as real wage pressure abates, employment recovers further and the big debt paydown subsides"

FTSE 100 - Risers
Standard Life (SL.) 354.10p +2.52%
GKN (GKN) 352.90p +2.44%
Royal Bank of Scotland Group (RBS) 373.20p +1.77%
ITV (ITV) 178.50p +1.71%
Mondi (MNDI) 1,061.00p +1.53%
Anglo American (AAL) 1,491.00p +1.26%
HSBC Holdings (HSBA) 677.30p +1.17%
CRH (CRH) 1,483.00p +1.16%
Reed Elsevier (REL) 835.00p +1.15%
Pearson (PSON) 1,239.00p +1.06%

FTSE 100 - Fallers
Kingfisher (KGF) 369.00p -2.89%
Aggreko (AGK) 1,442.00p -2.50%
Petrofac Ltd. (PFC) 1,380.00p -1.50%
Sage Group (SGE) 329.00p -1.47%
Standard Chartered (STAN) 1,445.00p -1.40%
William Hill (WMH) 407.80p -1.26%
Persimmon (PSN) 1,077.00p -1.10%
Marks & Spencer Group (MKS) 494.00p -1.04%
Wolseley (WOS) 3,164.00p -1.00%
Next (NXT) 5,090.00p -0.97%

FTSE 250 - Risers
Ocado Group (OCDO) 420.90p +4.44%
Bank of Georgia Holdings (BGEO) 1,998.00p +3.68%
Greggs (GRG) 428.00p +2.86%
Kenmare Resources (KMR) 29.00p +2.51%
Regus (RGU) 195.70p +2.35%
WH Smith (SMWH) 853.00p +2.22%
Paragon Group Of Companies (PAG) 326.00p +2.10%
Kier Group (KIE) 1,707.00p +2.03%
Home Retail Group (HOME) 171.00p +1.97%
Greencore Group (GNC) 153.80p +1.92%

FTSE 250 - Fallers
Carpetright (CPR) 616.50p -8.46%
Alent (ALNT) 325.00p -4.72%
Computacenter (CCC) 520.50p -3.34%
Daejan Holdings (DJAN) 3,896.00p -3.21%
Big Yellow Group (BYG) 435.90p -3.13%
PayPoint (PAY) 1,048.00p -2.69%
Soco International (SIA) 406.00p -2.64%
Balfour Beatty (BBY) 275.00p -2.34% Group (MONY) 147.50p -2.32%
Aveva Group (AVV) 2,551.00p -2.26%

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Stocks higher as Italy's Berlusconi faces explusion
FTSE 100: 0.08%
DAX: 0.29%
CAC 40: 0.88%
FTSE MIB: 1.59%
IBEX 35: 1,35%
Stoxx 600: 0.11%

European equities rose after a Senate panel in Italy voted to oust Silvio Berlusconi from the chamber and as US leaders resumed budget talks.

The Italian Senate panel recommended the expulsion of centre-right leader and former Prime Minister Berlusconi over his conviction for tax fraud. The proposal is now expected to go before the Senate within three weeks.

Earlier in the week he had threatened to topple the coalition government over the issue but backed down during a confidence vote on Wednesday.

Berlusconi was convicted of tax fraud in October 2012 over deals his media company Mediaset made to purchase TV rights to US films.

Moody's has warned that the political developments over the last few weeks have highlighted the fragility of the Italian government.

The credit rating agency said the political instability continues to be “credit negative” since it could delay fiscal and structural reform.

Lidnt, Deutsche Lufthansa

Lindt advanced after the premium chocolate maker said it will begin purchasing shares at the end of this month until the end of 2014 while at the same time maintaining its dividend.

Deutsche Lufthansa gained after the airline said operating losses at its Germanwings discount carrier will fall by €90m.

Nokian Renkaat declined after the Nordic tyre company said operating profit and net sales will fall this year from 2012.

Bookmaker William Hill slumped after warning there was no certainty it would make up the shortfall caused by a disappointing third quarter when operating profits slumped 31% despite a 10% increase in net revenues.

Other asset classes mixed

The euro fell 0.20% to the 1.3592 US dollar.

Brent crude futures rose $0.073 to $109.080 per barrel on the ICE.

US Market Report
The major U.S. index futures are pointing to a modestly higher opening on Friday, with sentiment reflecting an attempt by the markets to rebound following two straight sessions of losses. Although bargain hunting may generate some strength, the odds are heavily stacked up against a strong recovery, given persistent worries concerning the intransigence among lawmakers to arrive at a consensus regarding the budget. With the non-farm payrolls report being delayed, the markets may not have much directional cues, save a few Fed speeches scheduled for the day.

U.S. stocks declined for the second straight day on Thursday amid anxiety concerning the budgetary deadlock and U.S. debt ceiling. The major averages opened lower despite some positive overseas data and the domestic jobless claims report. The averages continued to decline until the mid-session. After trimming part of their losses in the afternoon, the averages moved roughly sideways before closing notably lower.

The Dow Industrials ended down 136.66 points or 0.90 percent at 14,997 and the S&P 500 Index closed 15.21 points or 0.90 percent lower at 1,679, while the Nasdaq Composite closed at 3,774, down 40.68 points or 1.07 percent.

All but one of the Dow components declined in the session, with Boeing , Chevron , DuPont and Visa (V) leading the slide.

Brokerage, housing, retail, gold, biotechnology, utility and transportation stocks were among the biggest decliners of the session.

On the economic front, the Labor Department reported that jobless claims edged up to 308,000 in the week ended September 28th from an upwardly revised reading of 307,000 for the previous week. The four-week average declined to 305,000 from 309,000, marking the lowest level since May 2007. Continuing claims calculated with a week's lag rose 104,000 to 2.925 million in the week ended September 21st.

The results of the Institute for Supply Management's non-manufacturing survey showed that the non-manufacturing index fell to 54.4 in September from 58.6 in August. The employment index also fell to a 4-month low of 52.7 from 57 in August. The business activity index slipped to 55.1 from 62.2 and the new orders index declined 1 point to 59.6. The order backlogs index was little changed.

The Dow Industrials extended its slide yesterday and is precariously positioned amid the engulfing political uncertainty. An extension of the downward move could keep the index on track to test supports around 14,896 and 14,761.

On the upside, the index has a series of resistance levels. The 15,060 and 15,121 levels, the index's key 100-day, 50-day and 21-day moving averages (currently around 15,232, 15,253 and 15,284) are likely to offer resistance to the index. Additionally, the index may also find resistance around the 15,321, 15,379 and 15,465 levels.s
Stocks in Focus
Comtech Telecom reported fourth quarter GAAP earnings of 28 cents per share compared to 38 cents per share in the year ago period. Net sales fell to $84.4 million from the year-ago quarter's $112.8 million. For 2014, the company expects GAAP earnings of $1.07 to $1.19 per share on sales of $320 million to $340 million. The results exceeded estimates and the guidance was in line.

Pfizer announced that the FDA has approved DUAVEE for the treatment of moderate to severe Vasomotor Symptoms associated with menopause and the prevention of menopausal osteoporosis. The company said it expects DUAVEE to be available in the U.S. in the first quarter of 2014.

Forest Oil announced a deal to sell its Templar Energy oil and gas assets in the Texas Panhandle Area for $1 billion. The deal is expected to close on or before November 25th, 2013. For the most recent 12-month period, the assets proposed to be divested produced 100 million metric cubic feet of oil equivalents and generated EBITDA of about $180 million.

Lexmark announced a deal to buy PACSGEAR, a provider of connectivity solutions for healthcare providers, for $54 million in cash.

Broker Tips
Aberdeen Asset Management: JP Morgan lowers target from 523p to 509p maintaining an overweight rating.

Admiral Group: Canaccord Genuity cuts target from 1200p to 1160p retaining its sell recommendation.

API Group: Numis downgrades to add with a target of 85p.

Arbuthnot Banking Group: Numis ups target from 1032p to 1070p upgrading to add.

Barclays: Investec upgrades to buy with a target of 300p.

Barratt Development: Panmure Gordon moves target from 340p to 352p and keeps a buy recommendation.

Bellzone Mining: Canaccord Genuity shifts target from 4.20p to 5p and leaves its hold recommendation unaltered.

BG Group: Credit Suisse cuts target from 1190p to 1170p and reiterates an underperform rating.

Centrica: Investec reduces target from 400p to 375p downgrading to add.

Diageo: Numis initiates with a target of 2200p and an add rating.

Direct Line: Canaccord Genuity cuts target from 260p to 240p, while its buy recommendation is kept.

Esure Group: Canaccord Genuity reduces target from 270p to 250p staying with its buy recommendation.

Faroe Petroleum: Westhouse Securities upgrades to buy with a target of 175p.

F&C Asset Management: JP Morgan shifts target from 113p to 118p and maintains a neutral rating.

First Group: JP Morgan moves target from 145p to 150p retaining an overweight rating.

Gemfields: JP Morgan shifts target from 23p to 24p and leaves its underweight rating unchanged.

Henderson Group: JP Morgan raises target from 174p to 198p and reiterates a neutral rating.

Home Retail Group: Nomura moves target from 200p to 215p and retains a buy recommendation.

Jupiter Fund Management: JP Morgan shifts target from 374p to 377p and stays with its overweight rating.

Kofax: Panmure Gordon ups target from 385p to 391p upgrading from hold to buy.

Man Group: JP Morgan lowers target from 108p to 100p and keeps a neutral rating.

Moneysupermarket: Westhouse Securities upgrades to buy with a target of 195p.

office2office: Panmure Gordon ceases its coverage and removes all forecasts.

Paragon Group of Companies: JP Morgan increases target from 361p to 396p keeping its overweight rating.

Record: JP Morgan shifts target from 43p to 40p, while its overweight rating remains unaltered.

Schroders: JP Morgan takes target from 2543p to 2624p and maintains an overweight rating.

SSE: Investec reduces target from 1520p to 1475p, while upgrading to add.

Standard Life: JP Morgan ups target from 419p to 430p retaining its overweight rating.

Tate & Lyle: Jefferies cuts target from 980p to 900p, while keeping its buy recommendation.

Tesco: Credit Suisse lowers target from 430p to 420p and maintains an outperform rating.

Tricorn Group: Westhouse Securities moves target from 44p to 50p stays with its buy recommendation.

William Hill: Canaccord Genuity lowers target from 438p to 425p retaining a hold recommendation.

Wolseley: JP Morgan raises target from 3350p to 3550p and reiterates an overweight rating.

DealBook P.M. Edition October 4, 2013: Fashion's New Runway: Wall Street

Friday, October 4, 2013
Fashion's New Runway: Wall Street
Fashion's New Runway: Wall Street With his red-carpet gowns, lush cashmere sweaters and jet-set shoulder totes, Michael Kors has influenced fellow designers across the globe. These days, though, Mr. Kors is inspiring the fashion world not only with his "affordable luxury" merchandise, but also with the extraordinary success of his initial public offering nearly two years ago. On Wednesday, Marc Jacobs announced his departure from Louis Vuitton to focus on an I.P.O. of his own brand. Last year, Diane von Furstenberg set off speculation about a stock offering when she hired a top-level fashion executive in a push to expand her business. And while Tory Burch has denied any near-term interest in an I.P.O, there are persistent whispers of a Wall Street debut. Call it the Michael Kors effect.
    Twitter's I.P.O. and the League Table Fight Twitter's offering will most likely provide a boost to its hired advisers in the league tables, rankings that banks profess to ignore but track obsessively nonetheless. And it would prove a big feather in the cap of either the New York Stock Exchange or the Nasdaq stock market.
    As Twitter Opens Up, Employees Do, Too
    As Twitter Opens Up, Employees Do, Too As prospective investors pored over Twitter's financial information, Twitter employees shared photographs and updates.
    Twitter's R.&D. Spending Hits the Right Spot Twitter's strategy of hiring engineers at a fast clip to build new features and services is the best way to ensure growth, contends Robert Cyran of Reuters Breakingviews.
    Sotheby's Adopts Shareholder Rights Plan to Fend Off Loeb
    Sotheby's Adopts Shareholder Rights Plan to Fend Off Loeb The activist investor Daniel S. Loeb, whose hedge fund holds a 9.3 percent stake in the auction house, threatens a proxy battle.
    Icahn Gives Up Fight Over Dell Appraisal Rights
    Icahn Gives Up Fight Over Dell Appraisal Rights Carl C. Icahn, the billionaire investor, disclosed that he is forgoing his right to have the Delaware Court of Chancery appraise the value of his shares in the computer company.
    Potbelly Doubles in Market Debut Amid Strong Investor Appetite
    Potbelly Doubles in Market Debut Amid Strong Investor Appetite Shares in the sandwich and salad chain opened at $28.66 each. That values the company, which has grown from a Chicago phenomenon to a national presence, at $802.5 million.
    Barclays Has Strong Demand for Rights Issue The British bank raised $9 billion by selling 94.6 percent of the rights issue, or three billion shares.

Wall Street at Close Report by MarketWatch October 4, 2013: U.S. Stocks Rise Friday; S&P, Dow Fall For Week.

By Victor Reklaitis, MarketWatch 
NEW YORK (MarketWatch) U.S. stocks ended higher Friday but closed mostly lower for the week, as investors stayed sensitive to news about the government shutdown. 

The main indexes erased some of their gains for the session after testy comments from House Speak John Boehner, but then recovered, hit fresh intraday highs and closed just below their session peaks.

Facebook, Potbelly are stocks to watch
Polya Lesova takes a look at which stocks traders will be watching during market action, including Facebook, Union Pacific Railroad, and Potbelly. Photo: AP. 

The S&P 500 index SPX +0.71%  closed up 11.84 points, or 0.7%, to 1,690.50. Materials and health care performed best among S&P 500 sectors, while consumer staples and utilities were laggards. For the week, the S&P 500 fell 0.1%. 

The Dow Jones Industrial Average DJIA +0.51% finished with a gain of 76.10 points, or 0.5%, to 15,072.58 on Friday. It was the blue-chip index’s best day in more than two weeks. Walt Disney Co. DIS -0.03% and Boeing Co. BA +1.70%   showed the largest gains among Dow components, rising 2% and 1.7%, respectively. For the week, however, the Dow fell 1.2%. 

This was the second straight week of losses for both the Dow and S&P 500. 

The Nasdaq Composite COMP +0.89%  closed up 33.41 points, or 0.9%, to 3,807.75. The tech-heavy index scored a weekly gain of 0.7%, helped by Microsoft MSFT -0.09%  advancing 1.8% for the week. It was the Nasdaq’s fifth straight up week, as it trades near levels last seen in September 2000.

At a news conference on Friday, Boehner called for Democrats to negotiate and criticized a Democratic aide who said that the party is “winning.” Later, President Barack Obama responded by saying that “no one is winning.” The latest news on the shutdown also includes senior Republicans shifting away from their drive to undercut the Affordable Care Act and instead focusing on a broader budget deal that would include raising the debt ceiling. 

Obama late Thursday canceled a weeklong trip to Asia given the financial uncertainty at home. Separately, media reports said that Boehner has indicated that he is willing to pass an increase in the debt limit. The debt ceiling is widely seen as more significant than the shutdown, but the two issues are also now viewed as blending together

The Treasury Department has said the debt ceiling must be raised by Oct. 17. Read more: Bill Gross, Larry Fink on U.S. default: Of course it won’t happen.

Equity strategists at Bank of America Merrill Lynch suggested Friday that the recent selling is temporary. “In our view, the year-end risk is to the upside, not the downside, and the current brief de-risk on Wall Street will likely be followed by a truce in Washington and renewed stock-market strength,” they wrote in a note. 

The strategists also said: “For asset allocators to now reduce equities in favor of bonds, D.C.’s dysfunction needs to be exacerbated by unambiguously weak economic data. We think that’s unlikely.” 

Doug Coté, chief market strategist at ING U.S. Investment Management, said he expects the Washington battles to remain unresolved until the Oct. 17 deadline, saying a last-minute deal has become normal procedure for politicians in recent years. But Coté remains bullish on stocks. 

“I think this is all temporary,” he told MarketWatch on Friday. He said fundamentals are “the ultimate driver of the markets,” and they’ve been improving not only in the U.S. but around the world. 

Stock-market bulls bent, but they did not break this week, according to a Friday note from Jonathan Krinsky, chief technical market analyst at Miller Tabak. 

Krinsky pointed out the S&P 500 on Thursday closed below its 50-day moving average, an important chart level, for the first time since Sept. 6. But he said the benchmark index is staying above a key rising trend line. On Friday, the S&P 500 finished above its 50-day moving average again.

Investors took in several Fed speeches during Friday’s session. Dallas Fed President Richard Fisher said central bankers were divided in September over whether to taper their bond-buying program, calling it a close call. Overall during the past week, Fed comments suggested that an October taper is unlikely

Due to the shutdown, the government’s monthly jobs report didn’t come out as usual on Friday, taking away a critical bit of economic data from traders and Fed policy makers seeking to make a data-dependent decision on when to taper their bond-buying program. Based on other recently released jobs-related reports, economists created estimates for the government’s nonfarm payrolls report, and they generally concluded that payrolls kept up a steady pace of growth in September.
In corporate news, Facebook FB +0.06% rose nearly 4% after announcing plans for ads on its Instagram service and as rival social network Twitter disclosed financial details related to its IPO.
In other IPO news, shares in sandwich chain Potbelly Corp. PBPB -0.20%   surged in their debut on the Nasdaq on Friday, more than doubling. 

The dollar rose Friday but was down slightly for the week against the euro and yen. Oil prices also climbed and were up for the week.

Gold prices declined, ending with a weekly loss of more than 2%.
Victor Reklaitis is a New York-based markets writer for MarketWatch. Follow him on Twitter @VicRek.

European Markets at Close Report by MarketWatch: European Stocks Rise on U.S. Shutdown Hopes.

By Sara Sjolin, MarketWatch 
LONDON (MarketWatch)European stock markets erased earlier losses and ended a volatile session in positive territory on Friday on hopes U.S. lawmakers could be getting closer to agree on a budget deal and end the four-day government shutdown. 

“We’re seeing a slight warming in the background between the two political sides in the U.S. and that certainly adds to the positive sentiment. It’s clearly a positive if we actually see them sitting down and talking to each other,” said Keith Bowman, equity analyst at Hargreaves Lansdown. 

“But I think the majority of investors aren’t likely to change their stance right now. They have broadly been expecting some kind of resolution and that’s why we haven’t seen a panic across the markets,” he added. 

Even with no major panic in the markets, the Stoxx Europe 600 index XX:SXXP +0.11%  still closed 0.7% lower on the week. On Friday, the benchmark gained 0.1% to 309.89, breaking a two-day losing streak. 

These are America’s disappearing jobs
The U.S. is still trying to recover the jobs lost during the financial crisis of five years ago. MarketWatch's Thomas Bemis discusses where job losses have been hardest felt over the past decade. (Photo: Associated Press)

Among notable movers in the benchmark, shares of Nokian Renkaat Oyj FI:NRE1V -7.59%  slumped 7.6% after the tire maker warned sales and operating profit in 2013 will be lower than previously estimated, due to a weaker Russian ruble exchange rate and softer Russian demand for tires.
Shares of Chocoladefabriken Lindt & Spruengli AG CH:LISN +3.58%  jumped 3.6% after the chocolate firm late Thursday announced plans to buy back shares worth about 450 million Swiss francs ($498 million). 

U.S. shutdown Day 4

The moves in Europe came as lawmakers in the U.S. scrambled to pass a budget for the new fiscal year, which started on Tuesday. President Barack Obama said late Thursday he has canceled plans for a weeklong trip to Asia amid the budget debacle. 

Investors worry that the impasse will have an impact on discussions about raising the country’s debt ceiling in mid-October, but House Speaker John Boehner indicated on Thursday he is willing to work with Democrats to pass an increase in the borrowing limit. The Treasury warned on Thursday that if Congress fails to raise the debt limit and the U.S. is forced to default on its obligations, this could have a “catastrophic” effect not just on financial markets, but on the economy. 

Late in Friday’s trade in Europe, Boehner called on Obama and Senate Majority Leader Harry Reid to negotiate and said the two sides need to have a simple discussion. He also said he doesn’t want the country to default

Due to the shutdown, the monthly nonfarm-payrolls report wasn’t released on Friday as scheduled.

Italy rallies after Berlusconi vote

Back in Europe, Italy’s FTSE MIB index XX:FTSEMIB +1.59%  jumped 1.6% to close at 18,304.22 and up 3.7% on the week, after a Senate committee recommended expelling former Prime Minister Silvio Berlusconi from the upper house after his conviction for tax fraud. The Senate will now have to hold a full vote on whether the People of Freedom (PDL) leader should lose his seat, with the vote likely to happen in two weeks’ time. 

The recommendation to oust Berlusconi comes two days after he abandoned an attempt to topple the coalition government of Italian Prime Minister Enrico Letta in a parliamentary vote of confidence, after a revolt within his party suggested he would lose the bid. 

The yield on 10-year Italian government bonds IT:10YR_ITA -0.08%  fell 8 basis points to 4.29%, according to electronic trading platform Tradeweb. 

Banks rallied in Milan, with shares of Banca Popolare dell’Emilia Romagna SCARL IT:BPE +7.27%  up 7.3%, Unione di Banche Italiane SCpA IT:UBI +6.34%  rising 6.3% and UniCredit SpA IT:UCG +3.36%  3.4% higher. 

Banks were also on the rise in other parts of Europe. Shares of Commerzbank AG DE:CBK +4.31%  gained 4% in Frankfurt, Credit Agricole SA FR:ACA +1.79%  climbed 1.8% in Paris and HSBC Holdings PLC UK:HSBA +1.17%   HBC +0.63%   HK:5 0.00%  added 1.2% in London. 

The gains helped lift the country-specific indexes. The U.K.’s FTSE 100 index UK:UKX +0.08%  rose 0.1% to 6,453.88, trimming its weekly loss to 0.9%
Germany’s DAX 30 index DX:DAX +0.29%  gained 0.3% to 8,622.97, but ended the week 0.4% lower. France’s CAC 40 index FR:PX1 +0.88%  moved 0.9% higher to 4,164.25 and closed out the week down 0.5%. 

Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.