DAILY

PSI20: +0.63% DAX30: +1.16% FTSE100:+1.62% S&P500: +0.63%

28th May 2013

NIKKEI225: +1.20%

Bank of Portugal says that companies are still with high levels of debt. Commercial banks must keep up their provisions in order to avoid underestimating bad credit and to keep their ratings. Lisbon rose for the third time in a row aligned with other European countries. Energy and banking sector as well as Sonae were the main drivers of this performance. Main rules for the requalification of the State increase unemployment. Workers who are considered irrelevant will enter in a requalification program that ultimately will lead to their dismissal.

European stocks fell, after the Stoxx Europe 600 Index rallied the most in a month, on concern that the Fed will reduce debt purchases as the economy strengthens. German unemployment rose more than four times as much as economists estimated in May as the euro areas sovereign debt crisis and a long winter took their toll on Europes largest economy. The EU Commission must deliver its verdict on Slovenias plan to avoid being the euro areas sixth bailout victim with a $1.2 billion bank recapitalization program and a record state-asset sale plan.

Stocks shaved their gains but still ended in positive territory across the board, sustained by supportive comments from central banks around the world and a pair of upbeat economic data. U.S. consumer confidence strengthened in May to the highest level in more than five years, suggesting Americans' attitudes were resilient in the face of belt-tightening in Washington. Home prices rose in the 12 months through March by the most in seven years as the recovery in residential real estate gained momentum.

The Japanese index accelerated its pace of gains in the afternoon after the nation's economy minister Akira Amari dismissed recent market volatility as merely an adjustment phase. China's loose monetary policy and repressed housing demand will drive up home prices in 2013, but government cooling measures (taxing property owners) will keep the market from running away. Chinese Premier Li Keqiang told German business leaders his country is confronted by huge challenges as it seeks 7% annual growth this decade, down from more than 10% in the previous 10 years.

OIL (WTI 94.91 $/bbl; +1.14% / Brent 104.39 $/bbl; +1.81%): Oil climbed after U.S. consumer confidence rose to the highest level in more than five years while home prices advanced. GOLD (1379.95 $/oz t; -1.15%): Gold fell, erasing gains after topping 1,400 an ounce, on signs that Fed may curb U.S. monetary stimulus, eroding demand for the metal as a store of value. CORN (665.88 $/bu; +1.49%): Corn rose to the highest in more than three weeks before a government report today that may show wet weather slowed planting in the Midwest.

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