World Market Review and Indian Stock Market Analysis By Nirmal Bang

World Market Review and Indian Stock Market Analysis By Nirmal BangU. S. stocks declined as technology shares retreated from a one? year high and energy producers dropped as a stronger dollar dragged down oil, overshadowing the biggest gain in home prices in four years. Technology shares in the S&P 500 fell 0.7 percent after closing yesterday at the highest level since September 2008. The group is still the best? performing industry in 2009, having surged 45 percent. The S&P 500 Energy Index slumped 0.6 percent as the U. S. currency gained. Exxon, the biggest U. S. oil producer, lost 0.8 percent to $69.07.

The dollar advanced to a two? week high versus the euro after an unexpected drop in U. S. consumer confidence this month discouraged demand for higher? yielding assets funded by borrowing in the greenback. But today morning the dollar fell against the yen, paring earlier gains, on speculation the Federal Reserve will keep record? low interest rates unchanged for an extended period.

Chinese manufacturing expanded for a sixth month in September on government stimulus spending and record bank lending in the first half of the year, a purchasing managers' index released by HSBC Holdings Plc showed. The index dropped to a seasonally adjusted 55 from 55.1 in August, HSBC said in an e? mailed statement today. A reading above 50 indicates an expansion. A government? backed purchasing managers' index will be released by the Federation of Logistics and Purchasing at 9 a. m. local time tomorrow. The index may have risen to 55 in September from 54 in August, according to the median estimate of 13 economists surveyed by Bloomberg News.

The Bank of Japan may decide as soon as next month to let its emergency corporate? debt buying programs expire as businesses regain access to private funding, people with direct knowledge of the discussions said. The central bank found no lenders offering to sell it commercial paper on Sept. 18; as of the end of August, it had 100 billion yen ($1.1 billion) of the securities on its balance sheet Japanese manufacturers increased production for a sixth month in August, capping the longest stretch of gains in 12 years. Factory output rose 1.8 percent last month after climbing 2.1 percent in July Japanese stocks fluctuated as property developers fell after ratings cuts by UBS AG, while NGK Insulators Ltd. and Foster Electric Co. climbed after saying their first? half profits probably exceeded forecasts.

Indian equity markets are expected to open positive and remain rang bound with marginal up & down movements.