Overnight Developments

• European stocks are lower with the European DJ Stoxx 50 down -0.62% and Sep S&Ps down -6.10 points. The dollar and Treasuries rallied while the euro and most commodities weakened on concern Europe’s debt crisis may worsen. Banks led stocks lower on concern they might require more capital after Germany’s banking association said yesterday that its lenders need to raise $135 billion and Pacific Management Co. said Greece still faces "substantial" default risk. Greek bonds plunged and pushed the yield on 10-year Greek bonds up 28 bp relative to 10-year German bunds to 941 bp, the most since the European Union and the IMF crafted a bailout package in May. Also undercutting European stocks was the unexpected -2.2% m/m decline in July German factory orders, their biggest monthly decrease in 17 months and a sign that momentum in Europe’s largest economy is losing momentum. Irish banks also fell with Allied Irish Bank Plc and Bank of Ireland Plc down over 2% after they had their ratings cut to "neutral" from "outperform" at Davy, which cited concerns over whether the Irish government bank guarantee will be extended. On the positive side, Nokia rallied 3.5% after the largest maker of mobile phones was raised to "overweight" from "underweight" at Morgan Stanley.
• The Asian markets today closed mixed with Japan down -0.81%, Hong Kong +0.22%, China +0.27%, Taiwan -0.08%, Australia -0.05%, Singapore +0.05%, South Korea -0.14%, India +0.46%. A decline in Japanese automakers led the Nikkei 225 Stock Index lower as the yen strengthened to near a 15-year high against the dollar. Asian steel companies rallied which helped China’s Shanghai Index close slightly higher after US President Obama proposed a $50 billion spending plan on infrastructure to fix US roads, railways and runways. Japan’s and Australia’s central banks signaled that the outlook for US growth is deteriorating and making it harder for them to set monetary policy. The RBA extended a pause in raising interest rates "for the time being" even after the nation’s GDP rose the most since 2007, while the BOJ said it’s prepared to add more monetary stimulus. Both central banks singled out the US, with the RBA saying growth there looked "weaker" in the seco nd half, and the BOJ citing "uncertainty about the future, especially for the US."

Overnight U.S. Stock News

• Sep S&Ps this morning are down -6.10 points on fresh European debt concerns. The stock market last Friday moved higher and finished with solid gains (Dow +0.49%, S&P 500 +0.91%, Nasdaq Composite +1.06%). The S&P 500 and the Nsadaq rallied to 3-week highs and the Dow climbed to a 2-week high. Bullish factors included (1) the better-than-expected Aug nonfarm payrolls and the upward revision to Jul (Aug -54,000 versus expectations of -100,000 and Jul -54,000 versus the previously reported -131,000), (2) the larger-than-expected increase in Aug private payrolls and the upward revision to July (Aug +67,000 versus expectations of +42,000 and July +107,000 versus the previously reported +71,000), (3) the better-than-expected increase in Aug avg hourly earnings for all employees which may benefit consumer spending (+0.3% m/m and +1.7% y/y versus expectations of +0.1% m/m and +1.6% y/y), and (4) comments from Atlanta Fed President Lockhart who said some economi sts and business people have been "too gloomy" about the prospects for the US and that the recovery remains on a "gradual recovery track."
• Bearish factors included (1) the unexpected decline in Aug US manufacturing payrolls (-27,000 versus expectations of +10,000), (2) the larger-than-expected decline in the Aug ISM non-manufacturing index which fell to a 7-month low (-2.8 to 51.5 versus expectations of -1.1 to 53.2), and (3) comments from former Fed Governor Kroszner who said that the better-than-forecast Aug US payrolls report reduces the chances of the Fed providing additional stimulus to the economy.
• Bank of America (BAC) lost 1.7% and Citigroup (C) fell 1.2% in pre-market trading on carry-over weakness from a fall in European bank stocks after the WSJ reported that European stress tests published in July may have understated some financial institutions’ sovereign debt holdings of potentially risky governemnt debt, along with a seperate report from the Association of German banks that its top 10 lenders might need about 105 billion euros ($134 billion) in fresh capital.

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Overnight Developments

• Global stocks are higher with the European Euro Stoxx 50 Index up +0.30% and Sep S&Ps up +6.00 points. The dollar and Treasuries are weaker and commodities strengthened, with copper at a 2-1/4 month high and crude oil at a 3-1/2 week high. The euro rose against the dollar after German business confidence unexpectedly surged in July as exports climbed and economic growth accelerated. The Jul German IFO business climate index surged +4.4 points to a 3-year high of 106.2. Further boosting European stocks was the larger-than-expected expansion of the UK economy in the second quarter as Q2 UK GDP grew +1.1% q/q, nearly twice more than expected and the fastest rate of expansion in 4 years, with a rebound in services, manufacturing and construction igniting the recovery. On the negative side, Jun French consumer spending unexpectedly declined -1.4% m/m and -1.9% y/y and Moody’s Investors Service said it would review Hungary’s debt rating for possible downgrade. Ericsson AB, the world’s largest maker of wireless phone networks, slumped over 4% after it reported Q2 net income of 1.88 billion kroner ($260 million), well below analysts’ estimates of 3.12 billion kroner as phone companies spent less on telecommunications infrastructure. The markets will be eagerly awaiting the results from the European Union’s stress tests on banks that will be released later today. According to a document from the Committee of European Banking Supervisors, regulators are scrutinizing banks to assess if they have enough capital, defined as a Tier 1 ratio of at least 6%, to withstand a recession and sovereign-debt crisis.
• The Asian markets today closed higher with Japan up +2.28%, Hong Kong +1.10%, China +0.42%, Taiwan +1.24%, Ausrtalia +1.91%, Singapore +0.60%, South Korea +1.45%, India +0.10%. Asian technology stocks gained after Microsoft reported its biggest sales gain in 2-1/2 years, while mining companies and raw material producers closed higher after copper rallied to a 2-1/4 month high. The yen weakened against the dollar, which boosted most Japanese exporters, after policy makers signaled for the third straight day that a stronger yen poses a danger to growth. Cabinet Office official Tsumura said the yen, which had risen 9% since May, has been "a bit too high," while Macquarie Research said Japanese authorities are "close" to intervening in the currency market, and that the BOJ may pump additional funds into the financial system.

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Overnight Developments

• Global stocks are mostly higher with the European Euro Stoxx 50 Index up +1.55% and Sep S&Ps up +12.80 points. The dollar and Treasuries are weaker and copper rose to a 1-3/4 month high as growth unexpectedly accelerated in the European manufacturing and service industries in July. The July Euro-Zone PMI composite rose +0.7 to 56.7 when the market was expecting a decline to 55.5. Also boosting European stocks was the stronger than expected UK retail sales for Jun, the unexpected increase in the July French business indicator which rose +2 points to a 2-year high of 98 and the unexpected increase in May Euro-Zone industrial new orders that climbed +3.8% m/m. Limiting gains in European stocks was the 2.7% drop in Credit Suisse AG after Switzerland’s second-largest bank reported a drop in profit at its investment banking unit in Q2 as trading revenue slumped amid Europe’s sovereign debt crisis, while SSAB Svenskt Staal AB, the largest supplier of high-tensile steel, slid 6.9% after it reported Q2 income of 369 million kroner ($49.9 million), below analysts’ estimates of 482 million kroner.
• The Asian markets today closed mixed with Japan down -0.62%, Hong Kong +0.50%, China +1.24%, Taiwan -0.45%, Australia -0.86%, Singapore +1.01%, South Korea -0.72%, India +0.76%. Japanese stocks closed lower for the fifth straight day as the Nikkei 225 Stock Index fell to a 2-week low after Fed Chairman Bernanke said the US economic outlook remains "unusually uncertain." Most Japanese exporters declined as the yen approached a 7-month high against the dollar, while Nintendo, the world’s biggest portable video-game maker that gets 80% of its revenue overseas, slipped 1.3% after Citigroup cut its rating on the stock to "hold" from "buy." Citigroup also cut its outlook for China’s 2010 economic expansion to 9.5% from 10.5% after China’s economy showed signs of slowing at the end of Q2. Citigroup also cut its 2011 growth estimate for China to 8.8%, lower than last month’s forecast of 9.3%.

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Overnight Developments

• Global stocks are mixed with the European Euro Stoxx 50 Index up +1.47% and Sep S&Ps up +5.80 points. Better than expected earnings from Alcoa boosted US and European stocks to 2-week highs despite weakness in the euro after the action by Moody’s Investors Service to cut Portugal’s credit rating two notches to A1 because of a growing debt burden and "weak" economic growth prospects. The euro remained under pressure after the July German ZEW economic sentiment fell a more than expected -7.5 to a 15-month low of 21.2 as Europe’s debt crisis threatens to cripple economic growth and banks undergo stress tests to prove their durability. Helping to keep European stocks in positive territory was the action by Greece to sell 1.625 billion euros ($2.1 billion) of 26-week T-bills at 4.65%, below the 5.00% rate charged by the European Union for its bailout package, easing concern about its budget deficit and reviving confidence in the Greek government’s austeri ty measures. BMW jumped 6.6% and led automakers higher after it forecast 2010 sales volume will rise by about 10% to more than 1,4 million units, with a full-year profit margin of more than 5% expected for the automobilies segment.
• The Asian markets today closed mostly lower with Japan down -0.11%, Hong Kong -0.18%, China -1.56%, Taiwan -0.55%, Australia -0.67%, Singapore +0.12%, South Korea +0.12%, India +0.27%. Chinese stocks fell and led other Asian stock markets lower after the government quashed speculation that it will ease real estate curbs that drove property prices lower for the first time in 16 months. Chinese banks and property developers led declines after the government said it will "strictly" enforce housing policies to prevent speculative real estate investment. Also pressuring Asian stocks was the 3.6% fall in Infosys after India’s second-largest software services provider reported Q2 net income of 14.9 billion rupees ($318.5 million), below analysts’ estimates of 15.6 billion rupees.

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Overnight Developments

• Global stocks are mostly higher with the European Euro Stoxx 50 Index up +0.45% and Sep S&Ps up +1.20 points. The dollar index is little changed, Treasuries are weaker and most commodities are higher. Rio Tinto rose 3.5% and led mining companies higher as copper rallied after LME copper inventories declined to a 7-1/4 month low. Antofagasta gained 3.4% after Citigroup raised its recommendation for the copper producer to "buy" from "hold." Also helping European stocks was the larger-than-expected +1.7% m/m increase in May French industrial production which was boosted by improving global trade and a pickup in output at car plants, while ECB President Trichet said that while the fiscal crisis isn’t over, the economic signs are "encouraging."
• The Asian markets today closed higher with Japan up +0.52%, Hong Kong +1.64%, China +2.76%, Taiwan +0.50%, Australia +0.91%, Singapore +0.69%, South Korea +1.66%, India +1.03%. Asian stocks were helped higher by Citigroup’s prediction that emerging-market stocks will rally as much as 25% by the end of the year as the global economy avoids a "double dip" recession and attractive valuations lure investors. The South Korean won strengthened over 1% against the dollar after the Bank of Korea unexpectedly raised its 7-day repurchase rate to 2.25% from a record low 2.00%, citing a pre-emptive strike against inflation. South Korea joins India, Malaysia and Taiwan in lifting interest rates in recent weeks, signaling that Asia’s expansion will remain resilient to Europe’s debt crisis.

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Overnight Developments

• Global stocks are weaker with the European Euro Stoxx 50 Index down -1.87% and Sep S&Ps down -12.40 points. Commodities sank and the dollar and Treasuries gained on concern that growth in China, the main engine of the world’s economic recovery, is slowing. The Conference Board’s Apr leading economic index for China was revised down to show a 0.3% gain, far less than the 1.7% increase reported Jun 15. Mining companies took a hit on demand concerns with Rio Tinto down 4.7% and BHP Billiton losing 3.1%. A 2% drop in Vodaphone added to the negative price action in European stocks after Credit Suisse cut its recommendation on the world’s largest mobile-phone company to "neutral" from "outperform." On the positive side, the Jun Euro-Zone economic confidence unexpectedly rose +0.3 to 98.7 as the drop in the euro bolstered the prospects for exports and optimism in Europe’s recovery. Three people familiar with the results said that Deutsche Bank AG, Commerzbank AG and Bayerische Landesbank passed a stress test that evaluated how about 25 European lenders would handle an economic downturn. The results are based on data from April that were passed on to the Committee of European Banking Supervisors. The European Union pledged on Jun 17 to disclose the results of the tests by the end of July.
• The Asian markets today closed lower with Japan down -1.27%, Hong Kong -2.31%, China -4.59%, Taiwan -1.03%, Australia -0.88%, Singapore -1.38%, South Korea -1.33%, India -1.35%. China’s Shanghai Stock Index plunged to a 14-month low after the Conference Board revised down its April gauge for China’s economic outlook to its smallest gain in 5 months, signaling a weaker expansion. Citigroup said in a report that China’s exports face "strong headwinds" in the second half of the year from policy tightening measures and the European debt crisis, reducing prospects of a rebound in the stock market. Concerns over the prospect for growth sent commodities tumbling which undercut most Asian commodity producers, while Chinese banks fell after Moody’s Investors Service said that China’s banks will face a rise in bad loans caused by the real estate industry and local-government financing vehicles. Stocks in Japan also closed lower on concern that its economic recovery i s stalling. The May Japan jobless rate unexpectedly rose +0.1 to 5.2% for its third straight monthly increase while the job-to-applicant ratio for May rose to 0.50, its highest level in more than a year, meaning there are 50 positions for every 100 candidates. May Japan household spending unexpectedly declined -0.7% y/y and May Japan industrial production also unexpectedly fell -0.1% m/m for its first decline since Feb. Japanese exporters were also undercut after the yen climbed to a 1-1/2 month high against the dollar.

Overnight U.S. Stock News

• Sep S&Ps this morning are trading down -12.40 points. The US stock market yesterday lacked direction the entire day and finished a volatile session slightly lower (Dow Jones -0.05%, S&P 500 -0.20%, Nasdaq Composite -0.13%). Bearish factors included (1) weakness in energy producers after crude oil tumbled, (2) the warning from the Bank for International Settlements (BIS) that European banks may struggle to refinance their debt if investor sentiment remains negative, which could start another banking crisis, and (3) the prediction from Columbia University finance professor Calomiris that the recently passed US financial services overhaul legislation will result in a "hidden tax" to consumers as banks levy an estimated $19 billion in additional fees to pay for the cost of the overhaul.
• Bullish factors included (1) comments from G-20 leaders after this past weekend’s summit in Toronto that they will focus on spurring economic growth and reducing deficits, (2) optimism that the US recovery is strengthening after the slightly larger-than-expected increase in May personal spending (+0.2% versus expectations of +0.1%), (3) the rally in phone service and wireless infrastructure companies after President Obama proposed doubling the airwaves available for smartphones, laptop connections to the Internet and new wireless devices, (4) the recommendation by Nomura Securities to buy stocks because equities "will be supported by valuations, monetary policy and earnings upgrades," and (5) the drop in the yield on the 10-year T-note to a 14-month low of 3.03%.
• Alcoa (AA) fell 1.7% in European trading on concern that metals demand from China may weaken.

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Overnight Developments

• Global stocks are mixed with the European Euro Stoxx 50 Index up +0.73% and Sep S&Ps up +2.90 points. The dollar is little changed and Treasuries and stock indexes are higher after the Group of 20 leaders meeting over the weekend in Toronto said they would focus on nurturing economic growth and cutting deficits. Group leaders also agreed to pursue higher capital requirements for banks once their economic recoveries gain momentum. The G-20 leaders endorsed targets to cut their deficits at least by half by 2013 and stabilize their debt-to-output ratios by 2016. Stock gains in Europe were led higher by strength in automakers when PSA Peugeot Citroen climbed 2.7% after La Lettre de L’Expansion reported that France’s biggest carmaker lifted its sales target for the DS3 model to 70,000 from 45,000 and Porsche SE rose 2.3% after Bankhaus Metzler upgraded the carmaker to "buy" from "sell."
• The Asian markets today closed mixed with Japan down -0.45%, Hong Kong +0.17%, China -0.71%, Taiwan +0.35%, Australia -0.65%, Singapore +0.64%, South Korea -0.04%, India +1.14%. Asian stocks were undercut after the weekend meeting of Group of 20 leaders failed to reassure investors about the strength of the global economic recovery. Speaking at the G-20 Summit in Toronto, a Chinese Ministry of Commerce director general said that his country’s pledge for a more flexible yuan will slow its exports this year and add to difficulties that include the European debt crisis and rising costs. China, the world’s largest exporter, is aiming to raise domestic consumption and reduce its reliance on exports for economic growth. Chinese coal companies closed lower after China’s National Development and Reform Commission ordered China’s coal companies to keep prices agreed to in annual supply contracts stable as the government seeks ways to manage inflation. Japanese stocks closed lower after Japan’s May retail sales climbed a slower-than-expected 2.8% y/y, the slowest pace since Jan, and a sign that government incentives to purchase cars and household appliances are fading. Japan’s May retail sales slumped a seasonally adjusted -2.0% m/m, the biggest drop in 5 years as automobile sales in May fell -5.9% m/m and household machinery, which includes appliances such as flat-screen TVs, tumbled -7.9% m/m in May.

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Overnight Developments

• Global stocks are mostly higher with the European Euro Stoxx 50 Index up +0.35% and Sep S&Ps up +7.30 points. Treasuries are weaker, the dollar is little changed and commodities are mixed. A rally in media stocks is boosting European equities, led by a 20% surge in BSkyB, the UK’s biggest pay-TV provider, after News Corp. raised its bid for the shares of the company that it doesn’t already own. European stocks are higher and the euro is little changed despite the plunge in German investor confidence in June. The June German ZEW economic sentiment dropped a larger-than-expected -17.1 to a 14-month low of 28.7 as concerns mount that the European sovereign debt crisis will undermine exports and crimp growth in Germany, Europe’s largest economy. Greek bond yields surged 82 bp today to 8.89% after Moody’s Investors Service yesterday cut the country’s government bond rating 4 levels to junk. The downgrade prompted Citigroup to remove Greek government debt from it s World Government Bond Index.
• The Asian markets today closed mostly higher with Japan up +0.08%, Hong Kong +0.05%, China closed for holiday, Taiwan +0.90%, Australia -0.01%, Singapore unchanged, South Korea -0.04%, India +0.43%. The yen was little changed after the BOJ kept its benchmark interest rate at 0.10% as expected following the conclusion of its 2-day policy meeting. The BOJ did say however, that it would offer as much as 3 trillion yen ($33 billion) for a new program aimed at expanding credit available to companies. Financial stocks prompted a mild rally in Japanese equities led by a 2.8% rise in Nomura, a 4.1% gain in Mizuho Securities and a 2.8% gain in Daiwa after Credit Suisse boosted its ratings on the stocks to "outperform" from "neutral," saying their valuations have fallen to "attractive" levels. The Australian dollar weakened after the release of the Reserve Bank of Australia’s (RBA) minutes of its Jun 1 meeting. The minutes said "the situatio n in Europe had deteriorated significantly over the previous month" and that previous rate increases had given them "flexibility," fueling speculation that it will keep interest rates unchanged until at least Q4.

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Overnight Developments

• Global stocks are higher with the European Euro Stoxx 50 Index up +0.60% at a 3-week high and Sep S&Ps up +8.30 points at a 1-week high. Treasuries are weaker and the dollar index fell to a 1-week low, while commodities are stronger with copper at a 1-week high. European stocks rallied after April Euro-Zone industrial production rose a more-than-expected +0.8% m/m and its +9.5% y/y increase is the biggest year-over-year gain since the data series began in 1991. Mining companies gained after copper rose to a 1-week high and Salzgitter AG, Germany’s second-biggest steelmaker, advanced 3.2% after UBS AG raised its recommendation on the stock to "neutral" from "sell." The euro jumped to a 1-week high against the dollar after Greek Finance Minister Papaconstantinou told the Real News that the receipt of 110 billion euros ($134 billion) in emergency loans is enough to cover most of Greece’s borrowing needs in the coming years and that his nation isn’t considering restructuring its debt. Treasuries were pressured after equities rallied and after St. Louis Fed President Bullard, who was speaking at a press briefing in Tokyo, said that Europe’s sovereign-debt crisis shouldn’t postpone the Fed from raising interest rates.
• The Asian markets today closed higher with Japan up +1.80%, Hong Kong +0.90%, China closed for holiday, Taiwan +1.20%, Australia closed for holiday, Singapore +0.78%, South Korea +1.01%, India +1.60%. Japan’s large manufacturers said business conditions improved in Q2 from Q1 as the Q2 BSI large manufacturing rose to 10 from 4.3 in Q1, signaling that Japan’s export-led recovery is gaining traction. Japanese companies said they plan to increase spending on plants and equipment by 9.7% this fiscal year, compared with the -5.5% in cutbacks projected 3 months ago. The Q2 BSI data suggests that the Q2 Japan Tankan survey, due to be released July 1, may also be on the strong side. Japanese exporters gained as the yen slumped to a 1-week low against the dollar, easing concern that a stronger currency will erode exporters’ earnings. May India wholesale prices accelerated 10.16% y/y, more than market expectations of a 9.6% y/y gain, and increases pressure on India’s central bank to raise interest rates. The RBI has raised the benchmark reverse repurchase rate by 25 bp twice since Mar to the current 3.75% level and the central bank said it will tighten monetary policy at a "moderate" pace given the risks to economic expansion from Europe’s debt crisis. India and China, Asia’s fastest-growing major economies, are battling to contain inflation as the region shows little signs of being affected by Europe’s debt woes.

Overnight U.S. Stock News

• Sep S&Ps this morning are trading up +8.30 points. The US stock market opened lower last Friday but recovered its losses and zigzagged higher into the close to finish with modest gains (Dow Jones +0.38%, S&P 500 +0.44%, Nasdaq Composite +1.12%). Bullish factors included (1) the larger-than-expected increase in the Jun US University of Michigan consumer confidence which jumped to a 2-1/3 year high (+1.9 to 75.5 versus expectations of +0.9 to 74.5), (2) comments from Philadelphia Fed President Plosser who said that he doesn’t expect a "big impact from Europe’s fiscal crisis on the US economy," and (3) the report from the Fed that said net worth for US households and non-profit groups rose by $1.6 trillion in Q1, the fourth consecutive quarterly increase, to $54.6 trillion, which may keep consumer attitudes positive about the economy.
• Bearish factors included (1) weakness in consumer companies after the unexpected decline in May US retail sales which had its biggest decline in 8 months (-1.2% and -1.1% less autos versus expectations of +0.2% and +0.1% less autos), (2) the warning from billionaire investor George Soros who said the fiscal crisis that prompted European governments to curb their budget deficits may push the global economy back into recession, and (3) comments from Minneapolis Fed President Kocherlakota who said that he’s concerned about "weakness in the labor market."
• Alcoa (AA) rose 2% and Freeport-McMoRan Copper & Gold (FCX) gained 1.6% in premarket trading after copper prices climbed to a 1-week high.
• SanDisk (SNDK) advanced 1.6% in European trading after an article in Barron’s said the memory chip supplier may rise as much as 17% as flash memory sales for Apple’s iPad and other mobile devices expand.

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Overnight Developments

• Global stocks are higher with the European Euro Stoxx 50 Index up +1.01% and Sep S&Ps up +1.30 points. The dollar is little changed, Treasuries are stronger and commodities are mixed. European bank stocks gained, led by a 8% surge in Banco Santander SA, after Spain’s biggest lender said its outlook is “brilliant” and that is can benefit from rivals’ “weakness” in mature markets. Novartis gained 3.4% after winning a US regulatory advisory panel’s backing to introduce the first pill to treat multiple sclerosis with its drug Gilenia. Continental AG rose 3.8% after Europe’s second-biggest tire maker was raised to “buy” from “hold” at Deutsche Bank AG, while BP gained 8.7% as it snapped 4 days of declines that saw its stock tumble to a 13 year low, after the WSJ reported the company is considering cutting or deferring its Q2 dividend payment. Also boosting European stocks today was the action by the Bundesbank to raise its g rowth forecasts for Germany, as it now predicts GDP growth of 1.9% this year and 1.4% in 2011, higher than a Dec prediction of 1.6% growth in 2010 and 1.2% for 2011 as the economy profits from a pick-up in global demand. 
• The Asian markets today closed higher with Japan up +1.70%, Hong Kong +1.22%, China +0.32%, Taiwan +1.64%, Australia +1.58%, Singapore +0.60%, South Korea +1.62%, India +0.84%. Asian stock markets rallied after several economic reports from China showed its economy continues to strengthen. May China retail sales surged +18.7% y/y and May industrial production climbed 16.5% y/y as the Chinese economy proves resilient so far to the European debt crisis. Computer-related companies closed higher after Acer, the world’s largest vendor of laptop computers, rallied over 3% higher when it reported a 45% jump in May sales and Taiwan Semiconductor Manufacturing, the biggest maker of custom chips, said that it’s optimistic about the chip industry and the global economy for the second half of 2010. This adds to bullishness in the technology sector after the Semiconductor Industry Association said that global sales of microchips will rise 28% to $290.5 billion this year, boosted by demand in China and India, compared with a Nov forecast of 10% growth.

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