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NEW YORK (Reuters) – U.S. stocks tacked on further gains to push the S&P 500 to a two-year high on Monday, continuing a steady upward march investors believe will continue in 2011.

Volume was light, as is expected through the rest of 2010. Investors stayed with sectors that have led a sharp December rally, including financials, energy and materials stocks. The S&P 500 is up 5.7 percent for the month and 11.8 percent for the year.

"We have seen this year-end rally refuse to give up any ground," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

The combination of improving economic data, additional stimulus from the Federal Reserve and the extension of tax cuts was keeping equities in demand, Hellwig said.

The financial sector (.GSPF), which has lagged the broader market, was up 0.4 percent as some investors bet the sector could be among the leaders next year after a strong December.

However, American Express (AXP.N) tumbled 3.4 percent to $42.50 after Stifel Nicolaus downgraded the stock to "hold" from "buy."

Boeing Co (BA.N) also kept gains in check. The stock was down 2.7 percent to $63.27 after the Seattle Times newspaper said a delivery delay could be announced for the plane maker's 787 Dreamliner aircraft.

The Dow Jones industrial average (.DJI) dipped 13.78 points, or 0.12 percent, to 11,478.13. The Standard & Poor's 500 Index (.SPX) added 3.17 points, or 0.25 percent, to 1,247.08. The Nasdaq Composite Index (.IXIC) rose 6.59 points, or 0.25 percent, to 2,649.56.

U.S. markets will be closed on Friday to observe the Christmas Day holiday on Saturday.

Energy shares led the way up as the price of oil rose nearly 1 percent in choppy trading. Chevron (CVX.N) added 0.4 percent to $88.88.

Amazon.com (AMZN.O) helped boost the Nasdaq on optimism the company will benefit from improved holiday spending. According to research firm comScore, U.S. online sales are up 12 percent to $27.5 billion so far this season compared with a year ago.

Shares of Amazon gained 3.2 percent to $183.29, while the S&P consumer discretionary sector (.GSPD) was up 0.6 percent.

Amex shares are down 7.8 percent since last Thursday when the Federal Reserve proposed limiting debit interchange fees at 12 cents per transaction.

Stifel said the company is increasingly exposed as a cut in fees "will significantly increase pressure on higher-cost payments alternatives like Amex."

Nick Kalivas, senior equity index analyst at MF Global in Chicago, said some of the optimism over the financial sector was sapped by last week's proposal.

"There was the feeling there could be some opportunities in the banks and I think the interchange (proposal) cooled that," said Kalivas.

Food and beverage company Sara Lee Corp (SLE.N) has been in talks to sell itself to Brazilian meat producer JBS (JBSS3.SA), but the two companies are at odds over price, a source said. Sara Lee shares rose 2.5 percent to $17.69.

About 6.37 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, well below last year's estimated daily average of 9.65 billion.

Declining stocks slightly outnumbered advancing ones on the NYSE by 1,534 to 1,482, while on the Nasdaq, decliners beat advancers 1,383 to 1,273.

(Reporting by Leah Schnurr; Editing by Kenneth Barry)

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By MATTHEW CRAFT and DAVID K. RANDALL, AP Business Writers Matthew Craft And David K. Randall, Ap Business Writers – Thu?Dec?16, 5:40?pm?ET

NEW YORK – A small drop in unemployment claims and a higher profit forecast by FedEx Corp. helped push stocks to two-year highs Thursday.

The Labor Department said first-time claims for unemployment benefits fell last week to 420,000, the third drop in four weeks. The four-week average of claims also slid for the sixth straight week, reaching the lowest level since July 2008. That was before Lehman Brothers collapsed and markets seized up at the height of the financial crisis.

Separately, the Commerce Department said housing starts rose slightly last month, reversing a two-month decline.

Card companies fell sharply after the Federal Reserve proposed as 12-cent cap on the fees that merchants pay every time a customer uses a debit card. Merchants now pay a fee that ranges between 1 to 2 percent of each transaction.

The proposal could cut revenues for major banks and card networks like Visa Inc. and MasterCard Inc. Visa fell 12.7 percent to $67.19. MasterCard fell 10.3 percent to $223.49.

FedEx Corp. rose 1.9 percent to $94.22 after the company raised its earnings predictions for next year because businesses and consumers are shipping more packages. Traders took that as a sign the economy is improving.

The Dow Jones industrial average rose 41.78, or 0.4 percent, to 11,499.25. The broader Standard & Poor's 500 index rose 7.64, or 0.6 percent, to 1,242.87. The Nasdaq composite rose 20.09, or 0.8, to 2,637.31.

Gains came across the market. All 10 company groups in the Standard and Poor's 500 index rose.

Alcoa Inc. was the biggest gainer of the 30 stocks that make up the Dow index, rising 3.5 percent to $14.45. American Express Co. fell the most. The company lost 3.4 percent to $44.57.

Stocks have had a strong December. The Dow index has gained 4.5 over the last month. The S&P 500 has risen 5.3 percent.

A bill to extend Bush-era tax cuts along with unemployment benefits was postponed by the House of Representatives Thursday afternoon. The Senate passed the bill Wednesday. The tax package, a compromise between the White House and Senate Republicans, is expected to boost economic growth next year but also widen the budget deficit.

House Democratic leaders say they'll pass the bill, but only after first voting whether to raise the proposed rate for the estate tax.

The yield on the 10-year Treasury fell to 3.42 percent from 3.53 percent the day before. Investors have been selling Treasurys as their outlook on the economy improves, sending yields on the bonds higher. The 10-year yield traded as low as 2.49 percent as recently as Nov. 4.

The dollar fell 0.2 percent against an index of six heavily traded currencies. Gold fell 1.1 percent.

Two stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 4.4 billion shares.

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LONDON (Reuters) – World stocks edged higher on Friday as investors grew more confident about the prospect for economic recovery following robust U.S. and Chinese data while Treasuries stabilized after a sell-off earlier this week.

Friday's data showed China's imports and exports were much stronger than expected in November, robust numbers that served a reminder that Chinese demand was still growing apace and could pave the way for an interest rate rise as soon as this weekend.

Recent figures suggest the United States and stronger European economies are also picking up steam.

"The Chinese numbers and the performance of the U.S. overnight justify a higher start," Heino Ruland, strategist at Ruland Research in Frankfurt, said.

On Wall Street on Thursday, the benchmark S&P 500 index (.SPX) hit a two-year high with data showing first-time claims for jobless benefits fell more than expected last week.

MSCI world equity index (.MIWD00000PUS) rose 0.1 percent while the FTSEurofirst 300 index (.FTEU3) gained the same amount.

TREASURIES RECOVER

U.S. Treasuries edged up thanks to a strong auction of 30-year bonds that reflected investor appetite. Treasuries sold off heavily earlier in the week on U.S. President Barack Obama's plans to extend low tax rates. However, those plans hit some opposition ahead of a Senate vote next week.

Rising U.S. Treasury yields this week and growing inflation concerns in developing economies -- together with the prospect of tighter Chinese policy -- also encouraged investors to scale back their already overstretched bets on emerging markets.

Emerging stocks (.MSCIEF) lost 0.2 percent, partly on concerns about China's possible measures to tighten the economy.

"Data all suggest that further policy normalization is needed to keep China's economy on an even keel. So far, China has made only modest moves in this direction," RBC said in a note to clients.

"We expect to see more urgency from Beijing in the months ahead as tackling inflation becomes a greater priority, with both rate hikes and currency appreciation likely to be employed."

Ten-year Treasuries were up 8/32 in price to yield 3.185 percent, off a six-month high of 3.330 percent reached on Wednesday.

The sale of $13 billion of reopened 30-year U.S. bonds went through at a yield below the level trading on the open market, indicating investors bid aggressively for the debt, with strong demand particularly from foreign buyers.

The dollar (.DXY) was steady against a basket of major currencies, while the euro was also unchanged at $1.3236.

U.S. crude oil rose a quarter percent to $88.59 a barrel. The bund futures rose 0.2 percent.

(Reporting by Natsuko Waki, editing by Mike Peacock)

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By MATTHEW CRAFT and DAVID K. RANDALL, AP Business Writers Matthew Craft And David K. Randall, Ap Business Writers – Fri?Dec?10, 5:38?pm?ET

NEW YORK – An encouraging trade report and signs that a tax cut package would pass the Senate sent stocks to their highest levels in two years Friday. Bond prices fell for another day as investors expected the tax deal to lead to economic growth and higher budget deficits.

The Commerce Department reported that the U.S. trade deficit fell to its lowest level in nine months in October. Growing demand for American goods overseas pushed exports to their highest level in more than two years.

Separately, the Treasury Department said the federal government's budget shortfall hit $150.4 billion in November. Treasury prices dropped after the report was released, pushing their yields higher. The yield for the 10-year note rose to 3.33 percent, up from 3.21 percent late Thursday.

The Standard & Poor's 500 index rose 7.40, or 0.6 percent, to 1,240.40. It was the third straight day that the S&P index closed at a new high for the year. The index has gained 11.2 percent this year and is now trading at the same price it did the week before Lehman Brothers filed for bankruptcy in September 2008.

The Dow Jones industrial average rose 40.26, or 0.4 percent, to 11,410.32. General Electric Co. led the 30 stocks that make up the index with a 3.4 percent jump to $17.72. GE said it planned to raise its dividend by 17 percent.

The Nasdaq composite index rose 20.87, or 0.8 percent, to 2,637.54.

The Dow was the weakest of the three main stock average for the week, gaining just 0.3 percent. The S&P 500 added 1.3 percent and the Nasdaq rose 1.8 percent.

Investors were encouraged to see that prospects were improving that the Senate would approve legislation aimed at avoiding sweeping tax increases Jan. 1. Negotiators added a few sweeteners to promote ethanol and other forms of alternative energy. A test vote was set for Monday.

House Democrats have balked at the proposal to extend tax cuts, voting in a closed-door meeting Thursday not to allow the package to reach the floor for a vote without changes to scale back tax cuts for the rich.

Tom di Galoma, head of fixed income trading at Guggenheim Partners in New York, said traders see passage of the deal as nearly inevitable. "To stimulate the economy, it really has to be done," he said. "The last thing you want to do is raise taxes in the middle of a recession."

On the off chance it failed, di Galoma said, stocks would probably lose the gains made over the past two weeks. Treasurys would jump, causing their yields to plummet.

Movie rental company Netflix Inc. rose 1.9 percent to $194.63 after Standard and Poor's added it to the S&P 500 index. The company has gained 250 percent this year.

Cablevision Systems Co., F5 Networks Inc. and Newfield Exploration Co. were added to the S&P 500 as well. The index dropped The New York Times Co., Eastman Kodak Co. and Office Depot Inc.

Two stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume was 4.6 billion shares.

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NEW YORK – The compromise backed by President Barack Obama and Republican leaders on extending tax cuts crushed bonds Wednesday as traders expected the plan to lead to higher budget deficits and a pickup in economic growth. Stocks posted modest gains.

Congressional Democrats could still scuttle the tax agreement, but bond traders are acting like it's a done deal. Treasury prices dropped sharply, sending their yields higher for a second day. The yield on the 10-year Treasury note rose to 3.24 percent, the highest level since June 21 and a huge jump from the 2.93 percent it was trading at Monday before the tax deal was announced.

Part of the reason bonds are selling off is that investors now expect the tax package, which also includes an extension of unemployment benefits, to lead to better growth in the U.S. economy. That means less incentive to keep money parked in ultra-safe investments like Treasurys and also a greater likelihood of inflation, which would erode the value of the fixed payments from bonds.

Economists are already raising their estimates for economic growth as a result of the tax-cut package. Goldman Sachs economists released a rough estimate Wednesday saying that the tax relief could wind up adding between 0.5 and 1 percentage point to economic growth next year.

"There is no question that near term this tax deal will be a net positive for the economy because it will help growth," said Nariman Behravesh, chief economist at IHS Global Insight.

Another reason the tax package is pushing bond prices lower is that it will lead to a greater supply of Treasurys in the marketplace as the U.S. government issues more debt to finance its increasingly large budget deficits. Estimates of the total cost of the tax-cut package vary widely but go as high as $900 billion over the next few years.

Higher Treasury rates ripple through every corner of the economy, raising borrowing costs for the government, business and consumers. The Treasury Department auctioned another $21 billion in 10-year notes Wednesday at a rate of 3.34 percent, the highest since May. The Treasury will sell $13 billion in 30-year bonds Thursday. Selling long-dated bonds is often tricky: investors like the higher yields, but 30-year bonds would get hit the hardest if inflation picks up.

The Mortgage Bankers Association also reported that mortgage applications slipped last week as refinancing activity fell. The average rate for a 30-year fixed loan rose to 4.66 from 4.56 percent the previous week.

Stock indexes wobbled for most of the day before turning positive in the afternoon.

The Dow Jones industrial average edged up 13.32 points, or 0.1 percent, to 11,372.48.

The broader Standard & Poor's 500 index rose 4.53 or 0.4 percent, to a new yearly high of 1,228.28. The index last traded at this level in late September 2008. It is now up 10.1 percent for the year.

Four of the 10 company groups in the S&P index rose. Financials rose the most with a 1.8 percent gain. Bank of America Corp. rose 3.7 percent to lead the 30 stocks that make up the Dow.

The Nasdaq composite index rose 10.67, or 0.4, to 2,609.16.

The higher rates in the Treasury market helped push the dollar up against other currencies including the Japanese yen and the euro. The dollar rose 0.2 percent against an index of six other major currencies.

In corporate news, McDonald's Corp. fell 1.6 percent to $78.74, making it the biggest decliner among the 30 stocks that make up the Dow. The company reported November sales figures that fell short of analysts' expectations.

Fortune Brands Inc. rose 1 percent to $61.76 after the company announced plans to split into three parts. Fortune will keep its liquor business led by Jim Beam bourbon while shedding the units that make Titleist golf balls, Moen faucets and Master Locks.

Two stocks fell for every one that rose on the New York Stock Exchange. Consolidated trading volume came to 7.6 billion shares.

___

AP Economics Writer Martin Crutsinger contributed to this story.

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The response set out in "inflation letter" this month is the same as in earlier this year.

MPC maintains official bank at historically low 0 5pc - interest rates policy put in place at the head off the coast of the recession and deflation, more than 18 months ago.If nothing has changed in the UK economy as successive letters had been written, which would logique.Mais much has changed, stressing the need for a shift towards the high interest rate.

First of all, the global economy has rebounded strongly - with the IMF project almost 5MC global growth this year in their forecasts for 3pc, autour there an an.Asie and other emerging market economies have provided lots of momentum.

But Germany - our second - most large national export - market also recorded the strongest growth and low unemployment has close to two decades.

Secondly, the British economy is returning to the stronger than expected growth.UK GDP increased by 2 8pc last year — advance the pace of recovery in the early stages of the two previous recoveries.

Employment has increased by approximately 350,000 since the beginning of 2010.And manufacturing industry has recorded the highest growth since 1994, supported by strong world growth and a competitive exchange rate.

Thirdly, the inflation Outlook changed considérablement.Cette times last year, the PPC should less than target inflation in the second half of 2010 and remain under target until the end of 2012.

Inflation significantly exceeded the previous forecasts, even taking into account the tax changes announced in the budget this year.Forecast inflation of the Bank have consistently underestimated movement shorterterm impact of the global increase in energy prices and raw and consistently overestimated the pressure on inflation, declining capacity reserve in the British economy.If we learn these mistakes of the past, we are likely to repeat them.

Low wage growth is often cited as a pressure downward inflation which is expected to offset rising import .but, price pressures that increases in earnings in the private sector was mastered in the recession, they are now pick up yet - supported by recovery and high headline inflation.

Already inflation remains above target, the more worried that we should he will push wage increases and inflation more generally expectations.

There are clearly some uncertainty about economic growth and international economy and the gouvernement.Cependant deficit reduction program future inflation it would be not concerned about declining due to the crisis risks financière.Notre experience in recovery is now the growth and inflation were higher prévu.Et the pace of the increase in interest rates can be adjusted changing economic circumstances.

The official discount rate has now been kept unchanged during the longest since 1939 - 1951 .and it is maintained at an exceptionally low level.

If we continue this policy in the evidence to the contrary on growth and inflation, I see a growing risk of two results désagréables.Taux interest may need to increase much more pronounced in the future, creating a severe twitch with confidence and recovery.

Or a more disturbing, commitment to the Bank of England inflation target is seriously questioned by financial markets, businesses and the public and loses credibility.

The longest it has no reply CPC to relatively high inflation in an economy recovery, become more these risques.Il now is the time for monetary policy to the United Kingdom to return to the business and interest rates to rise gradually to more normal levels.

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LONDON – World stocks mostly rose Thursday following an upbeat finish on Wall Street before the Thanksgiving break in the U.S., but the euro failed to get much of a boost amid concerns that Europe's debt crisis could soon embroil Portugal or, more dangerously, Spain.

In Europe, the FTSE 100 index of leading British shares was up 20.46 points, or 0.4 percent, at 5,677.56 while Germany's DAX rose 17.92 points, or 0.3 percent, to 6,841.72. The CAC-40 in France was 4.22 points, or 0.1 percent, lower at 3,743.39.

After a torrid start to the week, when worries about Europe's debt crisis became more acute following Ireland's request for a massive financial bailout and amid mounting tensions on the Korean peninsula, stocks have recovered their poise. The boost came mostly from figures Wednesday showing a sharp drop in weekly U.S. jobless claims and encouraging consumer confidence figures ahead of the crucial Christmas shopping season.

The U.S. economic data confirmed that the economic recovery continues and may actually be picking up pace.

However, investors remain cautious about whether the improvement will do much to get the U.S. unemployment rate down from near 10 percent. That is a key priority for both the Obama administration and the Federal Reserve, which earlier this month announced that it was pumping up to $600 billion into the U.S. economy over the coming months to help get unemployment down and prevent a dangerous bout of deflation — that is, falling prices.

Investors also remain watchful of developments in Europe's debt crisis, which has already forced both Greece and Ireland to tap their partners in the eurozone and the International Monetary Fund for bailout money.

On Wednesday, the Irish government unveiled another euro15 billion worth of austerity measures in return for an estimated euro85 billion ($113 billion) financial lifeline.

It's done little to shore up confidence in the bond markets as investors continue to fret about the country's political instability — on Tuesday, Ireland's premier Brian Cowen bowed to the inevitable and confirmed that the country will be going to the polls early next year if the 2011 budget, scheduled for Dec. 7, is passed.

"Complicating matters further, the leading opposition party signaled that they will re-examine any IMF-EU deal if they come to power in an early 2011 general election," said Carl Campus, an analyst at BMO Capital Markets.

As a result the euro is finding it difficult to garner much lost ground despite the general rise in risk appetite since the U.S. jobless claims figures.

The improvement in risk appetite would normally give the euro a boost against the dollar — when investors have a greater interest in riskier investments, stocks usually get a boost, while the dollar loses some of its safe haven shine.

By mid afternoon London time, the euro was up 0.1 percent on the day at $1.3340.

On Wednesday, the euro slid to a two-month low of $1.3282, over five cents down since Monday's peak of $1.3786.

The real big concern in the markets, though, remains whether Portugal or Spain will be dragged into the mire.

The prevailing view in the markets is that Europe may be able to support Portugal but that a bailout of Spain would be one step too far and that the euro project itself could be in jeopardy. Spain accounts for around 10 percent of the eurozone economy, in contrast with the other three countries, which account for around 2 percent each.

Bond yields in the so-called periphery countries continued to edge up Thursday, in a further sign that the eurozone's debt crisis is a long way from being solved. The yield on Spain's 10-year bonds was up another 0.13 percentage point at 5.19 percent, while Portugal's was steady at 7 percent.

Investors are also keeping a close watch on developments in east Asia following Tuesdays' exchange of artillery between North Korea and South Korea.

"Whilst Seoul may have shown restraint over recent events, there's still the uncertainty of what Pyongyang could do next to bear in mind," said Ben Potter, research analyst at IG Markets.

Asian markets ended mostly higher earlier.

Japan's Nikkei 225 stock average rose 0.5 percent to 10,079.76, while Hong Kong's Hang Seng index added 0.1 percent to 23,054.68. South Korea's Kospi index gained 0.1 percent to 1,927.68. Australia's S&P/ASX was up 0.2 percent at 4,593.4.

Chinese shares closed higher on Thursday, tracking overseas gains, buoyed by property and oil refiners. The benchmark Shanghai Composite Index gained 1.3 percent to 2,898.26 while the Shenzhen Composite Index for China's smaller, second exchange edged 0.3 percent higher to 1,337.83.

Benchmark oil for January delivery was up 43 cents to $84.29 a barrel in electronic trading on the New York Mercantile Exchange.

____

Associated Press writer Pamela Sampson in Bangkok contributed to this report.

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NEW YORK – Stocks rose sharply in early trading Wednesday after a batch of economic reports offered some hope that the U.S. economy was improving.

Investors seized on encouraging readings on the labor market and Americans' incomes while shrugging off a steep fall in new home sales and manufacturing orders.

The upturn marked an abrupt reversal from Tuesday, when an exchange of artillery fire between North and South Korea led nervous investors to sell stocks and dash into gold, Treasurys and other assets often used as hiding spots.

The government said first-time claims for unemployment benefits fell 34,000 to 407,000 last week. That was much better than the 435,000 new claims economists had expected.

A separate report showed that Americans' incomes rose 0.5 percent last month, slightly better than expected. Their spending rose 0.4 percent, up slightly from September.

The Dow Jones industrial average rose 127, or 1.2 percent, to 11,163 in late morning trading.

The Standard & Poor's 500 index gained 14, or 1.2 percent, to 1,195. The Nasdaq composite index rose 45, or 1.8 percent, to 2,540.

Safety assets moved lower as investors became more willing to take on risk. The dollar and gold both fell, while Treasury prices edged lower, pushing their yields higher. The yield on the 10-year note inched up to 2.85 percent from 2.77 percent Tuesday.

Investors shrugged off slightly downbeat reports showing declines in sales of manufactured goods and new home sales. Orders for durable goods fell 3.3 percent, while new home sales and median home prices both fell last month. Sales of single-family houses slid 8.1 percent, the fourth time the rate has dropped in the past six months.

European stock markets rose. The Euro Stoxx 50, which tracks the shares of blue-chip companies in countries that use the euro, rose 0.6 percent.

In corporate news, the world's largest maker of farm equipment reported earnings that beat estimates. Deere & Co. posted a $457.2 million profit in the quarter ending Oct. 31, compared with a loss a year earlier. Tiffany & Co. also reported a rise in profit, fueled by strong sales of jewelry in the U.S. and overseas.

U.S. stock and bond markets will be closed Thursday for the Thanksgiving holiday. They will reopen for half-day sessions on Friday.

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NEW YORK (Reuters) – U.S. stocks added to gains on Thursday after a gauge of future U.S. economic activity and a survey of manufacturing activity in the Mid-Atlantic region both rose.

* The Dow Jones industrial average (.DJI) jumped 150.34 points, or 1.37 percent, to 11,158.22. The Standard & Poor's 500 Index (.SPX) added 16.40 points, or 1.39 percent, to 1,194.99. The Nasdaq Composite Index (.IXIC) climbed 36.11 points, or 1.46 percent, to 2,512.12.

(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

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WASHINGTON--Consumer prices increased moderately in October, but there is little sign of inflation as the cost of cars, clothes and hotels.

Index of prices for increased consumption of 0.2% last month, the Ministry of labour declared, mainly due to rising gas prices.

But to the exclusion of volatile energy and food categories, the index has remained unchanged for the month of the third line right. In the past year, basic prices increased by only 0.6%, the smallest increase annual since the beginning of the index in 1957.

Americans more ignoring money Life.: doubled the number of Americans who check their finances, montre.Votre career research: digging a hole of career Life.: you can not fire me! I left!Life Inc.: College Presidents paid more

Weak economy keeps a lid on prix.Consommateurs facing high unemployment and slow wage growth, retaining their spending.Retailers and other companies do not want to risk losing frugal shoppers by raising prices.

The report provides support for recent moves of the Federal Reserve to stimulate the economy .the Central Bank said earlier this month buy 600 billion in Treasury bonds to reduce interest rates and encourage more borrowing and spending.

This decision was subject of criticism.Many economists Republican leaders said earlier this week that shares risk the Fed triggering runaway inflation.

But many economists said Wednesday report shows that inflation concerns are lost.

"Fears of a potential outbreak of inflation, the Fed's recent movements are heavily exaggerated and are completely out of sync with the reality of highly competitive markets... products and services, says Brian Bethune, an economist at IHS Global Insight.

The US Federal Reserve would like to see prices increase more quickly that they are currently .Lorsqu ' announced binding purchase program, the Central Bank said that inflation is "a little low" at the levels it considers compatible with price stability.

While flat price may seem like a good thing for the buyers, the US Federal Reserve wants to prevent deflation, a widespread and debilitating lower prices and the salaires.Déflation also erodes the value of houses and other assets and makes it more difficult to pay off debts.The United States has not encountered with deflation since the great depression in the 1930s.

"For the moment, data continues to show that the price decreases, not increased, is the concern of the day," Dan Greenhaus, Chief economic strategist at Miller Tabak, said in a note to clients.

There are signs that the base price index can fresh stabiliser.Les housing, which represents more than 40% of the total index rose 0.1% month last .c ' is the first increase since July and only the second this fresh année.Les housing fell 0.2 percent last year.

Increase in last month's accommodation costs was offset by lower prices for cars, clothing and recreation, including cable TV and other video services, toys and sports equipment.

Food prices rose slightly in October, the Department déclaré.Le cost of fruit and vegetables and cereals and bakery products fell while meat products dairy and egg prices.

? 2010 The Associated rights Press.Tous réservés.Ce hardware cannot be published, broadcast, rewritten or redistributed.

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WASHINGTON--Consumer prices increased moderately in October, but there is little sign of inflation as the cost of cars, clothes and hotels.

Index of prices for increased consumption of 0.2% last month, the Ministry of labour declared, mainly due to rising gas prices.

But to the exclusion of volatile energy and food categories, the index has remained unchanged for the month of the third line right. In the past year, basic prices increased by only 0.6%, the smallest increase annual since the beginning of the index in 1957.

Americans more ignoring money Life.: doubled the number of Americans who check their finances, montre.Votre career research: digging a hole of career Life.: you can not fire me! I left!Life Inc.: College Presidents paid more

Weak economy keeps a lid on prix.Consommateurs facing high unemployment and slow wage growth, retaining their spending.Retailers and other companies do not want to risk losing frugal shoppers by raising prices.

The report provides support for recent moves of the Federal Reserve to stimulate the economy .the Central Bank said earlier this month buy 600 billion in Treasury bonds to reduce interest rates and encourage more borrowing and spending.

This decision was subject of criticism.Many economists Republican leaders said earlier this week that shares risk the Fed triggering runaway inflation.

But many economists said Wednesday report shows that inflation concerns are lost.

"Fears of a potential outbreak of inflation, the Fed's recent movements are heavily exaggerated and are completely out of sync with the reality of highly competitive markets... products and services, says Brian Bethune, an economist at IHS Global Insight.

The US Federal Reserve would like to see prices increase more quickly that they are currently .Lorsqu ' announced binding purchase program, the Central Bank said that inflation is "a little low" at the levels it considers compatible with price stability.

While flat price may seem like a good thing for the buyers, the US Federal Reserve wants to prevent deflation, a widespread and debilitating lower prices and the salaires.Déflation also erodes the value of houses and other assets and makes it more difficult to pay off debts.The United States has not encountered with deflation since the great depression in the 1930s.

"For the moment, data continues to show that the price decreases, not increased, is the concern of the day," Dan Greenhaus, Chief economic strategist at Miller Tabak, said in a note to clients.

There are signs that the base price index can fresh stabiliser.Les housing, which represents more than 40% of the total index rose 0.1% month last .c ' is the first increase since July and only the second this fresh année.Les housing fell 0.2 percent last year.

Increase in last month's accommodation costs was offset by lower prices for cars, clothing and recreation, including cable TV and other video services, toys and sports equipment.

Food prices rose slightly in October, the Department déclaré.Le cost of fruit and vegetables and cereals and bakery products fell while meat products dairy and egg prices.

? 2010 The Associated rights Press.Tous réservés.Ce hardware cannot be published, broadcast, rewritten or redistributed.

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LONDON (AFP) – London's main stock market inched higher at the start of trading on Monday compared with Friday's closing levels, as markets looked ahead to the latest G20 summit.

The benchmark FTSE 100 index rose 0.04 percent to 5,877.73 points.

Vice-finance ministers from the world's 20 biggest economies on Monday began negotiating the wording of a G20 summit declaration for later this week, amid reported sharp divisions on currency and trade issues.

They have convened in southern Seoul where the summit will be held on Thursday and Friday amid tight security.

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BANGKOK – Asian stock markets were mostly higher Wednesday as a stream of results from U.S. midterm elections showed the expected gains for Republicans and investors looked to the Fed's upcoming announcement on plans to stimulate the world's biggest economy.

Hong Kong's Hang Seng index climbed 1.8 percent to 24,097.84 while China's Shanghai Composite Index gained 0.1 percent to 3,049.65. Markets in Japan were closed for a public holiday.

South Korea's Kospi was ahead by 1.1 percent to 1,938.14 and Australia's S&P/ASX 200 climbed 0.6 percent to 4,731.60. Indexes in Singapore, Taiwan and Indonesia were also higher while Malaysia fell.

The attention of investors and businesses is mainly on U.S. midterm elections, which are expected to result in a Congress at least partially controlled by Republicans pitted against the Democratic administration of President Barack Obama.

Fights over taxes, deficits, health care and financial regulation could result in paralyzing uncertainty for the world's No. 1 economy though investors seem to have already factored that outcome into stock prices.

Stock market futures in the United States were little changed as election results began streaming in.

In a result widely expected by investors, Republicans gained at least 31 seats in the House of Representatives in early returns and are poised to gain control of that chamber of Congress. Democrat Joe Manchin IIIs victory in the close West Virginia Senate race makes it unlikely that Republicans will control both houses of Congress.

The loosely organized Tea Party, a Republican-leaning group that emphasizes libertarian fiscal policy, picked up at least two victories. Rand Paul of Kentucky and Mario Rubio in Florida defeated their Democratic challengers in Senate races in each state.

Investors are likely looking ahead to Wednesday afternoon, when the Federal Reserve is expected to announce the details of its plan to stimulate the economy by buying bonds. The plan, known as quantitative easing, makes stocks a more attractive investment by lowering bond yields.

Investors have been anticipating that the central bank's program will tally at least $500 billion. Any number significantly higher or lower than that figure could affect stock prices.

Broad stock market indexes have gained 12 percent since the Fed began hinting in late August that it would undertake the bond buying program by the end of the year. Over the last month, the Dow Jones industrial average is up 3.3 percent, and the broad Standard and Poors 500 Index is up 4.1 percent. The Nasdaq composite index has gained 6.8 percent over the same time frame. It closed at its high for the year on Tuesday.

Futures for the Standard and Poors 500 Index, the market index that most professional investors follow, was up less than a point to 1,193.40 shortly before midnight on the East Coast.

Benchmark crude for December delivery was up 33 cents at $84.23 a barrel in electronic trading on the New York Mercantile Exchange.

In currencies, the dollar inched up to 80.65 yen from 80.64 yen in New York late Tuesday. The euro fell to $1.4016 from $1.4030.

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AP Business Writer David K. Randall in New York contributed to this report.

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According to a public poll Citi and YouGov, expectations of inflation in the year to come currently stand at 3pc, compared to 2 9pc in September.

"Expectations of inflation for the year to come step are higher since September 2008," Citi economist Michael Saunders said .the ' inflation was then running at 5 2pc - a maximum of 16 years, compared with currently 3 1pc.

Policymakers are concerned that rising inflation expectations could become self-fulfilling work through price and wage settlements. Mervyn King, Governor of the Bank of England has already warned: "If this occurs, it would be expensive to bring down inflation.

Interest rates would increase, potentially crippling recovery based on a loose monetary policy offsetting expenditure cuts and tax increases.Most economists expect interest rates to remain low at least until the second half of next year, and many believe that the Bank will restart quantitative easing with an additional $ 50 billion ￡.

"The increase in [...] long-term inflation expectations."could well reflect actual inflation data, although UK inflation above target and well above forecasts [Bank]," said Mr. Saunders.

To date, however, it is little evidence that higher inflation expectations are becoming intégrées.La most pay transactions worth between 2pc, 3pc and these last months, lower than the rate of inflation, according to a study of income Data Services published today.

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Profits on a current cost of the basic supplies (CCS) was $3. 5bn (￡ 2 5.3), maximum of $3 a 2009, so below the. 4 $ 5bn made in the second quarter.

ConocoPhillips, the third largest oil company American said Wednesday that its quarterly profit more than doubled.

Shell and Conoco have helped increase 12pc gross price versus the third quarter of 2009, while prices of natural gas in the United States higher 29pc and British gas prices mean global refining doublé.Marges also increased.

Exxon Mobil industry leader is due to report its third quarter results later Thursday and analysts expected an increase in income net to $7 United 53pc.

Shell has also contributed to its rebound, with an increase of 5mC in the production of oil and gas during the quarter, compared to the same period in 2009, 3.1 million barrels oil equivalent per day (boepd), just prior forecast.

Earnings reflected also increased volumes of gas - liquid sales place 22pc 4.26 m tonnes for the same quarter a year, improved and higher dividends from LNG venture LNG prices realized.

However, the main outperformance relative to expectations was Shell refinery unit, where the underlying profits were about 50 percent higher than expected analysts.

Peter Voser, Chief Executive said Shell will continue to sell non-core assets, particularly in sales retail and refining and promised a "streamlining" Anglo-néerlandais active tight gas in the United States North American society.

Shell sharing 1. 1pc rose to ￡ 19.75 in the beginning the company jeudi.La trade held its dividend for the quarter to 42 cents per share, payable on December 17.

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Regulators yesterday approved, but has insisted on strict rules, many of them related to the treatment of water is done correctly.

The company wants to build his Curtis plant on the coast and also, a joint venture called Gladstone with Petronas Santos, Malaysia the Australia and two France.Tous total are near the great barrier reef environmentally sensitive.

BG plans to produce gas and transformed into liquid, prior to shipping to customers at Singapore, China, Japan and the Chili.Elle has already signed contracts worth billions of dollars.

Businesses are defined at the end of the year final investment decisions, with production expected to begin by 2014.

Two other major projects of the joint venture, energy source, ConocoPhillips, Royal Dutch Shell and PetroChina, have not yet applied for environmental approval.

Separately, BG Group reported that it found gas in a well off the coast of Tanzanie.Le share price rose from 0 8pc in London for ￡ 12.03.

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Detail Thursday issued a new fee billion pounds on the British banking system, but this is not likely to confirm what was announced earlier this year in the budget the Government emergency.

British Bankers' Association said the ad was "not unexpected" and expects to see documentation prior to any other comment.

George Osborne, said yesterday that the Government would seek to how much more he could obtain revenues from banks, but gave no further details of how these new taxes would take.

The Government is under pressure for the banking sector tax more strongly, and activists criticized lack of Mr. Osborne to announce new measures.

"George Osborne said today that it will impose the maximum possible tax on the banques.Mais words are not suffisantes.Comme ordinary workers families feel the pain of cuts, it must go beyond the Bank of. 5bn sorry ￡ 2 levy,", said David Hillman, a spokesman for the campaign of Robin Hood, tax pushing for an additional trends ￡ taxes for the banking sector.

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New US applications for unemployment benefits rose by 13,000 last week. Photo: AP

New applicants for 462,000 increase is only the second mounted weekly in two months, dampening hopes for a happier jobs U.S. perspective.

"Gain put an end to two straight and reinforced decreases that labour market recovery will not happen quickly," Andrew Gledhill Moody Analytics told AFP on Thursday.

Claims have declined significantly since the end of March, 2009, when first topped 650 000 claims, but have stagnated at around 450 000 since the beginning of the year .the last figure was higher than 445,000 forecast by economists.

This last benefit claims increase comes just weeks after the organisation of cooperation and development (OECD) has warned that in the long term unemployment may be a reality for many Americans.

The recession has left United States with a rate of unemployment in the long term - a measure of people unemployed for more than six months - 4 5pc, almost double its decline in the 1980s and 1990s.

The largest increases in claims weekly came from Pennsylvania, New Jersey, where claims grew by 2,869 and 2,132 respectively in Florida and California, dropped claims by more than 5000.

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