Stock Market

Wall Street retreats, with the Dow giving up the 10,000 level as the dollar firms and energy stocks fall. Strong results from Microsoft and Amazon boost those stocks.

US President Barack Obama's administration wants progress in next week's ministerial talks with China on issues as intellectual property rights and clean energy, officials said Wednesday. The first meeting of the US-China Joint Commission on Commerce and Trade (JCCT) under the Obama administration "provides an important opportunity to engage China on trade concerns impacting American companies," Commerce Secretary Gary Locke said.

Ireland's IMPACT trade union said on Wednesday that the 55,000 public workers it represents had voted to strike against any pay or job cuts imposed by the government as part of its fiscal reform steps. IMPACT's statement came as Finance Minister Brian Lenihan stepped up efforts to convince the public of the need to shave 4 billion euros off its 2010 budget mostly through wage and other spending cuts to avoid more tax rises.

Honda Motor Co will need to secure key export markets other than North America to sustain Japanese production levels if the dollar weakens further, Chief Executive Takanobu Ito said on Wednesday. North America is the biggest export market for most Japanese carmakers including Honda and rival Toyota Motor Corp, and yen strength against the dollar hurts the profits on cars exported from Japan.

Toyota Motor Corp on Wednesday recalled more than 82,000 units of its Vitz compact car in Japan, saying a defective window switch panel poses a fire risk. The recall affects some 82,226 units of the car made from January to August 2005 and covering four models - the DBA-KSP90, DBA-SCP90, DBA-NCP91 and CBA-NCP95 - the company said.

US stocks gained on Wednesday as results from banks, including Morgan Stanley, topped expectations, and on increased optimism about the technology sector's profit outlook. The energy sector also supported the market as the price of oil rose above $80 a barrel after data showed a smaller-than-expected rise in US crude stockpiles. Chevron gained 1.1 percent to $77.89.

US stocks retreated from 12-month highs on Tuesday as disappointing housing and inflation data prompted investors to book recent gains despite strong results from bellwethers including Apple and Caterpillar. New construction of US homes rose less than expected in September and US producer prices posted an unexpected decline, both pointing to an anemic economic recovery.

Britain's top share index closed 0.3 percent higher on Wednesday, lifted by forecast-beating results from US banks Morgan Stanley and Wells Fargo. The FTSE 100 closed 14.45 points firmer at 5,257.85, after falling as low as 5,174.48 earlier in the day. It ended 0.7 percent lower on Tuesday. "You have to turn round and say the Morgan Stanley figure was very helpful," said Stephen Pope, chief global market strategist at Cantor Fitzgerald.

Chinese shares closed down 0.45 percent on Wednesday on profit-taking, fuelled by losses on Wall Street and investor caution on the eve of the release of third quarter economic data, dealers said. The Shanghai Composite Index, which covers both A and B shares, was down 13.87 points to 3,070.59 on turnover of 155.2 billion yuan (22.7 billion dollars).

China said Wednesday that the Asian nation's economic recovery was solid, in a sign of confidence ahead of the release of key third-quarter economic data. "In the past three quarters... China's economic and social development situation has done better than forecast at the beginning of the year," the State Council, or cabinet, said in a statement released on its website.

The United Arab Emirates said on Wednesday the Arab world's second-largest economy would grow 1.3 percent in 2009 with anti-crisis measures boosting confidence, while Oman gave the highest growth outlook so far for this year. The UAE growth forecast would mark a significant slowdown from 2008 but is still welcome news given the warning last month from the country's central bank that the economy could contract this year.

Britain's government must keep borrowing until recovery is entrenched, and one set of good economic data will not be enough to show this, finance minister Alistair Darling told Reuters on Wednesday. Darling said it was better to continue tax and spending measures to boost the economy for too long, than cut them off prematurely and risk plunging Britain back into recession.

Japan's Nikkei average ended flat near a three-week high in thin trade on Wednesday, as chip-linked shares such as Advantest Corp fell on profit-taking but ocean freight firms climbed after a rise in key shipping index. Japan Airlines Corp extended this week's rebound after a newspaper said a government-appointed task force would seek to double a proposed capital boost for the struggling carrier, helping it to erase a drop of around 25 percent in value made last week.

Taiwan stocks closed 0.67 percent lower on Wednesday, snapping a five-session winning streak, as losses on Wall Street triggered selling in technology shares, including Mediatek Inc. The main TAIEX share index finished down 52.02 points at 7,701.50, posting its biggest single-day percentage fall in nearly two weeks. Turnover was about the same as Tuesday's T$125 billion ($3.9 billion).

Malaysian shares lost 0.45 percent on Wednesday as weakness on Wall Street triggered profit-taking on the local bourse, dealers said. The Kuala Lumpur Composite Index lost 5.68 points to 1,260.06. "The market was looking overbought after six straight days of gains.

Shares of American International Group Inc. jumped more than 20 percent Monday after the head of the House Committee on Oversight and Government Reform said that panel will examine a plan to reduce the company's massive bailout package.

The stock surge occurred despite a report from congressional investigators that cast doubt on whether efforts by AIG to restructure its operations and fully repay the government the billions it received will ever prove successful.

Rep. Edolphus Towns, chairman of the House committee, will have that panel study a plan by AIG's former CEO Maurice "Hank" Greenberg to reduce and restructure the company's bailout package, a committee spokeswoman said Monday.

Regions Bank has agreed to pay a $1 million penalty to settle a Securities and Exchange Commission complaint that it played a role in a long-term investment fraud that charged huge hidden fees and sales commissions to thousands of unwitting Latin American investors.

The Birmingham, Ala.-based bank and its predecessor, Union Planters Bank, acted as trustees for a pair of unregistered investment brokers -- U.S. Pension Trust Corp. and U.S. College Trust Corp. -- that have previously been charged as deceptive by the SEC. Regions allowed its name to be used in marketing materials, helped prepare a promotional video and met with prospective investors and some of the schemes' 2,000 unregistered sales agents.

The Asian Development Bank raised its growth forecasts for China and India on Tuesday and said the region is leading a global recovery but warned against ending stimulus efforts too quickly.

The bank increased its 2009 growth forecast for China from its 7 percent outlook in March to 8.2 percent, and India from 5 percent to 6 percent. The regionwide forecast was raised from 3.4 percent to 3.9 percent.

"The Asian region has proven more resilient than earlier thought," said ADB chief economist Jong-Wha Lee as the Manila-based bank issued a report on economies stretching from Pakistan to South Korea to Fiji.

The economies of Indonesia and Vietnam were expected to grow faster than originally forecast, while South Korea's contraction was likely to be less severe than predicted. However, the outlooks for Taiwan, Hong Kong, Thailand and Malaysia were lowered.

Facebook is shutting down its much-maligned Beacon marketing program, launched nearly two years ago amid fanfare only to generate a storm of privacy complaints over the tracking of user activities at partner Web sites.

Facebook agreed to end Beacon and create a foundation to promote online privacy, safety and security as part of a $9.5 million settlement in a lawsuit over the program. A federal judge in California still must approve the terms.

Meanwhile, Facebook is teaming up with the Nielsen Co. to help advertisers grab the attention of the hordes that are spending more of their time at the Internet hangout. Sheryl Sandberg, Facebook's chief operating officer, is expected to unveil the new marketing program, called "Nielsen BrandLift," at an advertising conference Tuesday in New York.

Most stocks lost ground Monday as a stronger dollar pushed down commodity prices and investors grew jittery about the market's six-month rally.

The stronger dollar set off a slide in commodities like oil and gold, which weighed on energy and material shares.

The Dow Jones industrial average ended with a loss of 41 points after being down 94 in morning trading. For weeks, investors looking to take part in the market's rally have been pouncing on any dips.