Bank of America buys into Countrywide

After an initial gain on enthusiasm about Bank of America’s (NYSE: BAC; TYO: 8648) purchase of $2 billon in preferred stock in mortgage lender Countrywide Financial (NYSE: CFC), Wall Street was lower in midday trade on Wednesday. The Dow Jones Industrial Average was down 0.28 percent to 13,199.47, while the Nasdaq Composite had dropped 0.71 percent to 2,534.56 and the S&P 500 was 0.44 percent lower to 1,457.61. The retail sector saw some declines on poor quarterly results and ahead of more reports in the sector due after the day’s close, while food processors saw advances despite poor results. Some banks and mortgage lenders saw advances after Bank of America’s announcement.

In Europe, most equities markets were higher, but in Madrid the IBEX dropped 0.46 percent to 14,292.5. The FTSE Eurofirst 300 added 0.38 percent to 1,511.08, while the CAC-40 was up a bare 0.09 percent to 5,523.33 and the Dax gained 0.15 percent t0 7,511.96 in Frankfurt. Builders and related groups saw gains, as did stock exchange operators and some in the financial services sector. Banks, however, saw some losses. The semiconductors sector and carmakers also saw declines.

London’s markets were higher, although the FTSE 100 only managed a gain of 0.01 percent to 6,196.9. The FTSE 250, meanwhile, added 0.32 percent to 10,945.7. Banks and others in the financial services sector were up on the session, as were some construction consultants. However, house builders and property developers were lower on the day.

Most equities markets in the Asia-Pacific region were up Thursday, benefiting from the Bank of America (NYSE: BAC; TYO: 8648) purchase of stock in Countrywide Financial (NYSE: CFC). The Shanghai Composite added 1. 05 percent to 5,032.49 to rise above the 5,000 level for the first time, while the Straits Times index gained 1.49 percent to 3,370.91 in Singapore. In South Korea, the Kospi index was up 2.29 percent to 1,799.72. The Sydney Ordinaries added 2.54 percent to 6,149.7 in Australia, while the S&P/ASX200 was 2.58 percent higher to 6,159.7. In Hong Kong, meanwhile, the Hang Seng was up 2.77 percent to 22,966.97, while Taiwan’s Taiex was 2.82 percent higher to 8,732.84. One of the few decliners on the day came in South Asia, where India’s Sensex fell 0.59 percent to 14,163.98.

In Tokyo, the markets were higher after the Bank of Japan voted 8 to 1 to hold interest rates at 0.5 percent, as expected. The Nikkei 225 gained 2.6 percent to 16,316.32, while the Taiex added 3 percent to 1,591.81 and the Mothers market jumped 5.18 percent to 740.02. The automobile manufacturing sector, tire makers, traders, and banks were all higher.

Story link: Bank of America buys into Countrywide