Wednesday's midday trade: market edges lower

US stocks slipped on Wednesday as a five-month rally that pushed the market to a new 2 1/2-year high started to shows signs of fatigue. Federal Reserve Chairman Ben Bernanke told a congressional committee that the labour market remains sluggish and he continues to believe that inflation will remain subdued. Wall Street's reaction to Bernanke's comments was muted.

McDonald's lifts Dow for seventh day; volume light

The Dow notched a seventh straight day of gains on Tuesday, but light volume suggested that investors don't believe the more than five-month rally has the legs to keep going. Surprisingly strong sales by McDonald's boosted optimism on consumer spending and drove the Dow's gains on what turned out to be the quietest day of trading so far in 2011, with total volume about 17 percent below last year's daily average.

Nikkei average declines

Japan's Nikkei stock average edged lower to come off a nine-month high on Wednesday, as profit-taking in bank shares erased earlier gains made on upbeat earnings guidance from Toyota Motor Corp. Weakness in Shanghai shares after a rate hike from China, its second move in six weeks to rein in surging inflation, helped dampen sentiment while investors also grew cautious before the settlement of Nikkei 225 February options on Thursday.

UK's top share index slides

Britain's top share index closed down on Wednesday, hurt by heavyweight stocks trading ex-dividend and miners following metals prices lower. The FTSE 100 closed down 39.04 points, or 0.6 percent, at 6,052.29, having closed up 0.7 percent on Tuesday at its best level since May 2008.

European shares fall

European shares fell on Wednesday, retreating further from 29-month highs hit earlier this week, weighed down by miners on concerns over demand from China, though positive corporate results offered some support. Several heavyweight UK stocks, including BP, Shell and GlaxoSmithKline, traded ex-dividend, partly leading the UK FTSE 100 to fall 0.6 percent and underperform German DAX and French CAC 40.

Republicans grill Bernanke over inflation threat

Members of Congress sharply questioned Federal Reserve Chairman Ben Bernanke Wednesday over whether the Fed's policies are raising the risk of rising inflation in the months ahead. House Budget Committee Chairman Paul Ryan, a Republican, said he is concerned that the Fed won't be able to detect inflation until "the cow is out of the barn" and inflation is already spreading dangerously through the US economy.

US job growth, inflation still too low, says Bernanke

US unemployment remains too high for policymakers' comfort despite signs of strength in the economic recovery, Federal Reserve Chairman Ben Bernanke said on Wednesday. In testimony to the US House of Representatives' Budget Committee that largely echoed a speech he delivered last week, Bernanke also warned about the dangers of unsustainable budget deficits.

Cooperation in Congress will aid economy: Geithner

US Treasury Secretary Timothy Geithner on Wednesday strongly pitched increased bipartisan co-operation among lawmakers as vital for building business and market confidence in the economy's growth. Days ahead of a new budget that the Obama administration hopes will mollify some Republican anger over spending, Geithner told a forum sponsored by The Atlantic magazine that Congress needs to pull together to build confidence.

UK goods trade deficit hits record high

Britain's goods trade deficit unexpectedly hit a record high in December, underscoring doubts about UK competitiveness, though the figures were worsened by bad weather and a tax-related jump in aircraft imports. The data chime with a sharp fall in UK GDP at the end of 2010 and deal a further blow to hopes that exporters will be able to drive growth in 2011 when both the government and consumers are tightening their belts.

US job openings dip

US job openings slipped in December, a government report showed on Tuesday, but a decline in layoffs supported views of a gradual labour market recovery. Job openings, a measure of labour demand, eased 139,000 to a seasonally adjusted 3.1 million, the Labour Department said in its monthly Job Openings and Labour Turnover Survey.

Coca-Cola sales beat estimates

Coca-Cola Co reported higher-than-expected quarterly sales, as it gained market share and also saw growth in each of its major markets for the first time in years. Shares of the world's largest soft-drink maker rose 1.5 percent. The results on Wednesday are Coke's first to include its North American bottling operations, and improvement in the company's home region was a sign of success for that acquisition.

McDonald's rebounds in Europe

McDonald's Corp posted stronger-than-expected global sales at established restaurants as demand in Europe rebounded, coming in far above Wall Street estimates. The results sent McDonald's shares up more than 3 percent in morning trading. "Europe was the concern, and Europe blew it through," Oppenheimer analyst Matt DiFrisco said. "That will give people a little bit of increased confidence."

Wall Street Weekahead: A bout of profit taking likely

A bout of profit taking seems likely early next year after the S&P 500 ended its best December in almost two decades, but stocks may have further to run at the start of 2011. Technical indicators are pointing to a strained market, though recently stocks have been maintaining the momentum of late 2011.

London investors set to catch their breath ahead of 2011

Investors on the London stock market are set to catch their breath after the market gained more than nine percent in 2010 and with 2011 shaping up to be a difficult year. The FTSE 100 index dropped 1.81 percent over the week to end the week at 5,899.94 points. Nevertheless it still managed a gain of 9.2 percent over the year.

Global Markets Weekahead: three risks to start 2011

Financial markets enter 2011 with many investors persuaded that the world economy is on the mend and that riskier assets such as stocks are set to do well.

Dubai's global bourse hopes end but options remain

Dubai's ambition to become an international equity hub may have been put on ice by its need to repay debts, but the Gulf Arab state could still become a magnet for global equity funds if the UAE consolidates its bourses and earns MSCI emerging market status.

Middle East markets: Dubai attracts new money, Egypt retreats

Dubai's index advanced to a three-week high on Sunday, led by property-linked stocks, as investors built new positions on the first trading day of 2011. Other regional bourses also rose, with the exception of Egypt, whose benchmarkdropped after surging to a seven-month high on Thursday.

Commodities stocks to get fresh boost in 2011

Robust demand from emerging markets and a loose US monetary policy should boost commodity shares in 2011, though base metals could face a short-term hit as China acts to cap inflation, a senior equity trader said. Daniel Harris, head of dealing at London-based H2O Markets, said precious metals miners looked likely to benefit from further metal price gains in 2011, after a 28 percent rise in gold and an 82 percent rise in silver in 2010.

Saudi bourse regulator fines Banque Saudi Fransi

Saudi Arabia's financial regulator has slapped a $13,000 fine on major lender Banque Saudi Fransi for violating stock market disclosure rules, the watchdog said on Sunday. Fransi, in which France's Calyon holds a minority stake, was fined 50,000 riyals ($13,330) for failing to swiftly disclose changes in its board, the Capital Market Authority (CMA) said in a statement on the bourse website.

Nasdaq looking at new foray into Japan

US-based Nasdaq OMX Group is looking at having a second stab at setting up a market in Japan with the Osaka Securities Exchange, hoping to attract investors from emerging Asian economies, domestic media reported.