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Wall Street finished mixed after the Federal Reserve announced that interest rates would remain unchanged. The market took a turn for the worse in late trade, led by the falling banking stocks.   

At the end of its two-day policy meeting the Fed said interest rates would likely remain at record low levels for an extended period, while saying economic activity would likely remain weak.

In employment news, ADP said employers in the private sector shed a slightly higher than anticipated 203,000 jobs in October after 227,000 were cut the previous month.

In a separate report, Challenger, Gray & Christmas said planned layoffs dropped 16% to 55,679 in October versus September. 

Meanwhile, an Institute for Supply Management's report revealed the services sector index unexpectedly fell from 50.9 in September to 50.6 in October. Forecasts were for a rise to 51.5.

The Dow Jones gained 30.23 points, or 0.31%, to 9,802.14, the S&P 500 added 1.09 points, or 0.10%, to 1046.50 and the NASDAQ dipped 1.80 points, or 0.09%, to 2,055.52. 

Wells Fargo shed 3.1%, while Citigroup and JPMorgan weakened 1.7% and 1.2%.

Timer Warner slipped 0.2% depite reporting quarterly earnings and sales that toppped estimates. The company also increased full-year forecasts.

Walt Disney put on 1.5%.

News Corp added 1.1% before releasing quarterly results after the close.

Tech majors Microsoft and Apple advanced 1.9% and 1.2%.

Kraft Foods dropped 3.2% as it reported lower quarterly earnings that beat estimates on revenue that fell short of estimates. The company increased its 2009 earnings forecast and cut its revenue outlook.

Pharmaceutical Merck & Co surged 6.4% to lead the Dow higher.

Energy heavyweights Exxon Mobil and Chevron defied a rise in the price of crude to be down 0.6% each. ConocoPhillips added 1%.

NYMEX light crude oil for December delivery rose US80c to settle at US$80.40 a barrel.

COMEX gold for December delivery climbed US$2.40 to settle at US$1,087.30 an ounce after hitting an intraday record high of US$1,098.50 an ounce.

Gold producers Newmont and Barrick Gold gained 1.9% and 2.8%.

European Markets

European stocks rallied on the back of positive earnings results within the financial and retail sectors. Automakers were boosted by Nissan’s forecast.

The UK benchmark FTSE 100 gained 70.68, or 1.40% to 5,107.89. The French CAC40 put on 86.08 points, or 2.40% to 3,670.33, while the German DAX advanced 90.88, or 1.70% to 5,444.23.

Société Generale jumped 4.6% after France’s second largest bank after reporting third quarter earnings that had more than doubled. The result was also ahead of analyst estimates.

The country’s largest bank BNP Paribas rose 3.5%, while in Germany Commerzbank and Deutsche Bank climbed 4.4% and 2.3%.

Barclays and Standard Chartered rallied 4.2% and 3.3%.

Insurer Aviva jumped 5.5% after announcing a positive outlook. Prudential put on 4%.

Marks & Spencer surged 6% as the UK’s largest clothing retailer beat earnings expectations.

Rival Next raised its short-term forecast, sending its shares 5.6% higher. Third quarter sales also beat estimates.

UK consumer confidence held at an 18 month high in October.

Renault led the automakers higher with a 4.1% gain after its 44% owned Nissan narrowed its full-year loss forecast.

Peugeot and Daimler advanced 2.1% and 3.1%.

Miners rallied as the price of gold reached record highs. There were modest gains among base metals prices.

Xstrata, Antofagasta and Anglo American climbed 5.9%, 5.4% and 3% respectively.

BHP Billiton and Rio Tinto added 3.3% and 2.8%.

Energy majors BG Group and Total added 2.5% and 1.7%. 

Japanese Markets

Resource stocks led the Nikkei higher following a rise in commodity prices. Several companies across the sectors posted better than expected earnings results.

The Nikkei 225 added 41.36, or 0.42% to 9,844.31.

Fast Retailing rallied 4.4% on the back of a jump in sales at its Uniqlo clothing stores.

Gold producers Sumitomo Metal Mining and Mitsubishi Materials added 2.6% and 3.8%.

Japan Steel Works spiked 10% after increasing its full-year profit forecast.

Nissan advanced 1.7% following a rise in US sales during October. Toyota and Honda rose 1.1% and 1.4%.

Shionogi & Co gained 3.4% after applying for approval for its influenza treatment.

Furukawa Electric surged 7.7% as the company reversed its first half forecast from a loss to a profit.

Chip related stocks fell following a broker downgrade on the semiconductor sector. Tokyo Electron and Advantest Corp lost 5.1% and 1.3%.

Exporters Sony and Canon dipped 0.8% and 0.6%.

Mitsubishi UFJ Financial weakened 1.8%.

Hong Kong Markets

The Hang Seng was spurred on by the Chinese mainland index, with the Shanghai stock exchange closing at three-month highs. Gold and the banks were the order of the day for investors, albeit in light trade.

The Hang Seng rallied 374.71 points, or 1.76% to 21,614.77.

Among the banks, Bank of China rallied 2.7%, while Bank of Communications added 1.8%.

HSBC and ICBC rose 0.2% and 2.6% respectively.

The gold miners benefited from record prices for the metal. Zijin Mining spiked 5.7%, and Realgold Mining was 3.3% higher.

Li & Fung advanced 2.8%, with Petrochina climbing 3.6%.

Offshore rival CNOOC added 3%. Reports indicated the Chinese giant was entering the US energy market, snapping up assets being sold by European oil firm Statoil.

Dongfeng Motor Group put on 12.3% after posting a larger than expected profit.

Gamers were also strong with Galaxy rising 6.6%. SJH Holdings climbed 6.5%.

Casino revenue climbed 42% at Macau from October 2009 in what will be good news for James Packer.

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Market Watch by egoli