Marks & Spencer Share News (MKS)

0626 GMT [Dow Jones] Situation in Europe is such dark cloud, says Rory Robertson at Macquarie; reckons Australian central bank may be on hold for quite a while. "Having paused in June and being about to pause again in July ahead of CPI, I think the RBA would love to remain on hold for the rest of the year, in part because the situation in Europe is so bleak," says Robertson. Noting central bank had hiked in 6 of last 8 meetings, interest rate strategist adds, "whether the RBA tightens a little or a lot over next three years, it won't be doing three in a row again in this cycle." 30-day interbank futures market has next rate hike priced in for March next year. Still, only 1 week ago the next hike wasn't priced in until August of next year. (geoffrey.rogow@dowjones.com) 0623 GMT [Dow Jones] September bunds are 0.18 higher at 127.58 although WestLB notes that the daily indicators offer little optimism except that the stochastic which is levelling off in oversold territory. Immediate resistance is at 127.73, following which resistance is at 127.93 and 128.12. Support is at 127.17, 127.03 and 126.40. (neelabh.chaturvedi@dowjones.com) 0621 GMT [Dow Jones] USD/CNY extends gains in afternoon session following fresh USD demand from large state-owned Chinese banks, traders say. "We are seeing several big names buying at around CNY6.8200 and it's continuing," says Guangzhou-based trader at foreign bank. Another Shanghai-based trader at local bank says large state-owned bank bid near CNY6.8150. In OTC trade, USD/CNY last at 6.8215 vs 6.8229 intraday high, 6.7976 last close; traders, economists say state-owned banks' USD demand suggests PBOC intends to support USD/CNY after sharp fall yesterday, temper expectations of stronger CNY. "we are still monitoring to see whether this dollar demand is part of the PBOC intervention," says Guangzhou based trader; USD/CNY may test 6.8300 resistance. (JSX) 0619 GMT [Dow Jones] (An item at 0600 GMT, misstated Yang Ming Marine's closing stock price. The correct version follows:) Taiwan shares end down 0.3% at 7612.68 in quiet trade, taking breather after ending at 5-week high yesterday. Hua Nan Securities Investment Assistant Vice President Henry Miao tips Taiex in tight 7550-7650 band tomorrow as investors waiting for signing of Taiwan-China trade pact. "As long as the pact isn't signed, the market won't treat it as a negative, but after it's signed, people will start trimming positions," he says. Nasdaq's decline overnight weighs on tech shares: TSMC (2330.TW) off 1.1% to NT$62.60, Hon Hai Precision (2317.TW) down 2.4% to NT$123.50, but China-oriented companies gain on China's move to allow greater CNY flexibility: President Chain (2912.TW) +1.5% to NT$97.70, Cheng Shin Rubber (2105.TW) +1.0% to NT$68.20; Clevo (2362.TW) +2.0% to NT$72.50; Yang Ming Marine (2609.TW) ends limit up 7.0% in heavy volume at NT$15.30, highest since September 2008, as investors revise up company's 2Q earnings forecasts on shipping demand from Europe, U.S. (alex.pevzner@dowjones.com) 0611 GMT [Dow Jones] PREVIEW: New Zealand's 1Q current account deficit expected to narrow, may record surplus as boosted by improvement in trade balance, according to economists. According to median forecast from Dow Jones poll of 9 economists, 1Q current account deficit at NZ$250 million vs NZ$3.57 billion in 4Q; deficit in 12 months to Mar. 31 expected at NZ$5.03 billion, 2.7% of GDP, vs NZ$5.47 billion in previous quarter. BNZ economist Craig Ebert says 1Q balance could be close to flat due to "seasonally high exports and seasonally low imports." ANZ Bank senior markets economist Khoon Goh says deficit likely to widen from now on "improving corporate profitability, rising borrowing costs and the strengthening in demand." (lucy.craymer@dowjones.com) 0659 GMT [Dow Jones] Great Portland Estates' (GPOR.LN) acquisition of 35 Portman Square is another useful deal, says Execution Noble. The deal will produce a net initial yield of 7.7% and a capital value per sq ft of GBP726, which is good value for core West End investment product. "In a tight investment market where dry assets are now arguably overpriced, it is reassuring to see Great Portland finding ways to deploy its capital in high-yielding investments." Execution adds that exposure to West End and City investment and rental markets positions the company defensively against the backdrop of choppier economic conditions. Buy rating. Shares closed Monday at 296p. (michele.maatouk@dowjones.com) 0658 GMT [Dow Jones] Whitbread's (WTB.LN) 1Q update is strong, says Shore Capital, with like-for-like sales ahead by 7.6% in the three months to June 3, 2010. Shore says the strong performance reflects excellent like-for-like growth of 10.5% at Premier Inn, 3.6% at Pub Restaurants and the continued strength at Costa [+8.5%]. There is scope for modest upgrades on the back of this statement, Shore says. It keeps a buy recommendation, saying the stock trades on a discount to both the UK pub sector and the International hotel sector. Shares closed Monday at 1478p. (peter.nurse@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 22, 2010 09:11 ET (13:11 GMT)