Global equities were mixed this afternoon, with European equities paring morning gains while Wall Street traded higher on hopes that US inflationary data might have opened the door for more action from the Federal Reserve.
By 4pm (London time) the FTSE 100 was 0.1% higher at 5406.5, while the broader FTSE 250 erased all of the morning’s gains and was 0.14% lower at 9813.25.
On Wall Street, the Dow Jones jumped 0.74% and the S+P 500 surged 1.07% to 1228.74.
US inflation cools
US inflationary data released this afternoon revealed that consumer prices in the world’s largest economy were flat in November as consumers paid less for cars and gasoline.
The data provided a further sign that inflation is easing, potentially giving the Federal Reserve more room to help a still weak economy.
The consumer price index was unchanged last month while economists had expected an increase of 0.1%, compared to the previous month of a 0.1% drop.
Prices rose 3.4% in the year through to November, off from the three-year high of 3.9% hit in September.
Dragging down the overall index was gasoline, which fell 2.4%, and prices for new vehicles were down 0.3%. However outside food, energy and vehicle, prices climbed 0.2%.
Economists and investors see inflation slowing over the coming months, which could help convince the Federal Reserve to do more to bring down the country's 8.6% unemployment rate.
Earlier in the week, the Fed warned that turmoil in Europe presents a big risk to the US economy, leaving open the door for further steps to boost growth.
RIM shares tumble
Research in Motion (RIM) shares fall to their lowest level in almost eight years today after the company announced that the new generation of BlackBerry devices, designed to fuel a comeback, will not be released until the latter part of 2012.
The smartphone maker, which has lost market share to Apple’s iPhone, had originally planned to release the new devices in the first quarter of next year. RIM announced that its sales and profit forecast had missed analysts’ estimates.
RIM also reported that third-quarter net income plunged 71% to $265 million, from $911 million a year earlier, while sales fell about 6% to $5.17 billion.
RIM commented by saying that performance was weak and that they were not satisfied, particularly with the weak performance in the US. RIM shares fell as much as 13% to $13.12, its lowest since January 2004.
The week ahead
This week markets have listened to European politicians debating about who should get downgraded first, but hopefully next week will be different.
With Christmas approaching, leaders may reveal more details about the new EU treaty.
Investors will see a range of economic data released, which should provide a brief distraction from the monotonous Eurozone debt crisis.
On Monday, the UK releases the Rightmove housing index, while the EU sees current account and construction figures.
The following day Germany comes into the spotlight with the business and current sentiment index. UK public sector net borrowing figures and housing data from the US is due midweek, before UK and US GDP data for the third quarter on Thursday.
The UK is expected to see mild growth of 0.5%, while the US is hoping to have grown 2% in the third quarter.
Anything falling short of expectations could see investors’ appetite for risk take a sharp turn in the other direction. Ending the week, the US releases personal consumption expenditure data and new home sales figures.
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'US Stock Markets: Research in Motion Shares Slip on Delay to BlackBerry', Article by IG Index, last update: 16-Dec-11
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