American equity markets have surrendered the earlier gains that had pushed key indexes to new record highs.
More merger activity had given the markets initial impetus.
The Swedish telecommunications equipment maker, Ericsson, has put in a $2.1 billion bid for the Nasdaq-listed Redback Networks.
A weaker US dollar has created interest in companies like 3M and
General Electric, which will benefit when offshore profits are
repatriated.
However investors have been disappointed by the latest earnings forecast from parcel delivery leader, FedEx. ...
n foreign exchange markets, the euro has reached
a record high against the Japanese yen and gained ground against the US
dollar, on comments from the head of the European Central Bank (ECB).
ECB president Jean-Claude Trichet has warned of rising inflation next
year, which has sparked speculation about higher interest rates in
Europe.
The Australian dollar moved up against its US counterpart overnight.
