MARKETS / FINANCE

Stocks fell on Thursday as an unexpected rise in jobless claims and a bleak outlook from technology bellwether Cisco underscored concerns about sluggish economic growth.

General Motors posted its biggest quarterly profit in six years on Thursday, a day ahead of an expected IPO filing that will clear the way for the U.S. government to relinquish its majority stake in the top U.S. automaker.

The number of people filing new claims for unemployment insurance unexpectedly rose in the latest week to its highest level in close to six months, a fresh signal of a weak jobs market.

More Americans fell into foreclosure in July as a sour job market kept them from making payments, and banks took over homes at a near record pace.

Stocks fell at the open on Thursday after an unexpected rise in new claims for unemployment insurance added to concerns about a slowing economic recovery.

Stocks were set to fall about 1 percent at the open on Thursday as an unexpected rise in jobless claims heightened fears of a double-dip recession and a bleak outlook from Cisco weighed on the technology sector.

The number of U.S. workers filing new claims for unemployment insurance unexpectedly rose to its highest level in close to six months, a fresh signal of a weak jobs market.

Stock index futures fell on Thursday following a steep Wall Street sell-off that erased gains for the year.

Euro zone industrial production declined in June, with output in France and Germany falling sharply, but a strong showing over the second quarter as a whole suggests Friday's GDP data for the bloc will be robust.

The yen's surge to a 15-year peak against the dollar this week comes amid mounting worries that the U.S. economic recovery is losing steam and follows a broad, two-month slide in the dollar. A drop in U.S. Treasury yields, a perception among market players that the U.S. Federal Reserve may be more willing to conduct aggressive monetary easing than the Bank of Japan, and talk of seasonal fund repatriation by Japanese investors have all contributed recently to the yen's rise.

Oil slipped to around $77 a barrel on Thursday, heading for a third straight session of losses, on lingering doubts over the outlook for fuel demand in the world's biggest energy consumers. U.S. stockpile data on Wednesday showed a sharp rise in gasoline inventories, highlighting the weakness of demand in what is usually the peak summer driving season.

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Stock index futures dipped on Thursday after a steep sell-off in the previous session that erased gains for the year.

American International Group Inc has started talks with potential investors to sell stakes in its Asian life insurance business AIA ahead of AIA's planned IPO, sources with direct knowledge of the matter said.

The European Commission called Slovakia's decision not to participate in a euro zone bailout of Greece unusual on Thursday, but said it would not speculate on any repercussions for the country at this stage. Commission spokesman Amadeu Altafaj said there were no indications any other members of the euro zone would follow Slovakia's move, which will not have an impact on Greece receiving funds from the 110 billion euro aid fund.

Insurer Prudential said it had reduced the cost of its failed bid for AIG's Asian unit and confirmed it has no further appetite for M&A as it reported forecast-beating half-year profit.

Finally, India will have its first ever jewellery week, the India International Jewellery Week (IIJW), from August 15 to 19 in Mumbai. It is a fabulous platform for jewellery designers to come together and showcase their talent. This is the first time the jewellery industry will witness something like this.

The euro fell on Thursday after weak Greek data reinforced concerns about weaker euro zone economies, while the yen pared losses versus the dollar as fears eased of immediate intervention by the Bank of Japan. The single currency had risen in earlier trade on early signs that euro zone peripheral spreads were stabilizing after widening over the course of the week on concerns over Ireland's economy in particular

Israeli Antiquities Authority (IAA) have discovered a rare gold coin dating back to 2,200 years. It weighs almost an ounce while most gold coins weiged 4.5 gms, CNN reported. The coin was minted in Alexandria, Egypt, by Ptolemy V and dates to 191 BCE. It is only the second gold Ptolemaic coin ever found in Israel.

The euro bounced on Thursday, as heavy selling abated on early signs euro zone peripheral spreads were stabilizing, while speculation of intervention to weaken the yen drove down the Japanese currency. The dollar steadied versus a basket of currencies after posting its biggest one-day gain in two years the previous day when concerns about the U.S. and global economies triggered a wave of unwinding in short dollar positions.

The Bank of Japan checked exchange rates with banks in the foreign exchange market on Thursday as Prime Minister Naoto Kan and other policymakers stepped up their rhetoric over a steep rise in the yen.

U.S. stock index futures pointed to a mixed open on Wall Street on Thursday following Wednesday's sharp sell-off triggered by rising concerns over the outlook for the global economy.

The U.S. tactic of pouring money into ailing financial firms during the 2007-09 crisis helped many foreign banks whose governments should have shared some of the burden, a report from a congressional watchdog agency said on Thursday.

Britain's largest insurer Prudential Plc reported a better-than-expected 34 percent rise in first-half operating profit, helped by improving investment returns amid a broader market recovery.

General Motors Co has secured a $5 billion credit facility, two people briefed on the bank deal said on Wednesday, marking the return of the top U.S. automaker to the capital markets a year after it emerged from a landmark bankruptcy.

Gold edged up in early European trade on Thursday underpinned by it safe-haven appeal due to increasing uncertainty about the health of the global economy, but a stronger dollar was likely to cap gains.

Oil slid on Thursday for a third straight day on mounting fears that a slowdown in the global economic recovery would cut commodities demand. Japan's Nikkei average slid to a 13-month low on Thursday after U.S. stocks erased the year's gains in the broadest selloff in a month-and-a-half on Wednesday.

The dollar dipped on Thursday after scoring its biggest daily gain for nearly two years against most major currencies the previous day as concerns about the U.S. and global economies triggered a wave of unwinding in short dollar positions. But the greenback rose to the day's high of around 85.50 yen from a 15-year trough against the yen marked the day before, after market sources told Reuters the Bank of Japan checked exchange rates with banks earlier on Thursday.

Gold rebounded in thin Asian trade Thursday despite a strong dollar while palladium dropped nearly four percent. Gold for immediate delivery was seen trading at $ 1199.17 an ounce at 12.00 noon Singapore time while US gold futures for December delivery was at $1202.2 an ounce.