US Markets - Wall Street pulled back Friday, retreating from record levels following disappointing results from longtime favorites Caterpillar Inc. and Google Inc. The Dow Jones industrials fell nearly 150 points.

The drop in stocks came a day after the Dow finished above 14,000 for the first time and the Standard & Poor's 500 index likewise logged a record close. While a retrenchment might not be surprising following weeks of somewhat volatile trading and the big gains Thursday, Caterpillar has been one of the best-performers among the 30 stocks that make up the Dow and a big contributor in the blue chips' march to 14,000. The heavy equipment maker unnerved investors when its results came in well below expectations.

Jitters over subprime lending also weighed on the stock market, and led investors to buy up safer Treasury bonds instead. As Treasury prices rose, the benchmark 10-year note's yield dropped below 5%.

Technology shares also took a hit after a strong run Thursday. Google turned in a second-quarter profit that fell short of Wall Street's high expectations, while Microsoft Corp.'s earnings report wasn't impressive enough to alleviate investors' concerns about the sector.

The Dow lost nearly 150 points Friday, a day after closing above 14,000 for the first time ever, as a spate of weak earnings news and continued housing fears rattled markets.

The Dow (down 149.33 to 13,851.08) sank over 1%, while the broader S&P 500 (down 18.98 to 1,534.10) and the tech-heavy Nasdaq (down 32.44 to 2,687.60) each fell about 1.2%.

Stocks rallied Thursday, pushing the Dow, a blue-chip barometer that tracks 30 large companies, to its highest finish ever. But a big miss from Dow component Caterpillar dashed hopes of another record- setting day Friday.

The heavy equipment maker said its net profit fell 21% and posted earnings of $1.24 a share, versus estimates for $1.49 a share. Caterpillar (down $3.78 to $83.20) shares slid over 4%, although they were down over 9% earlier in the session.

Lackluster earnings in the tech sector also weighed on stocks.

Google (down $28.47 to $520.12) reported earnings late Thursday that missed Wall Street's estimates even as its quarterly sales soared. The earnings miss - only the second since the Internet search firm went public in 2004 - rattled investors who have grown accustomed to solid results from the company. Google shares tumbled 5%.

Swedish firm Ericsson, the biggest maker of cell phone network equipment, also reported earnings that fell short of analysts' expectations early Friday. Ericsson (down $2.25 to $39.84) shares fell 5%.

Comments from Federal Reserve member William Poole that the subprime mortgage sector was large enough to affect the broader housing market also dampened the mood.

Defaults on mortgages in the subprime sector have risen sharply in the last few months, resulting in the implosion of several subprime mortgage lenders and funds that bought the repackaged debt.

Poole's comments follow those from Fed Chairman Ben Bernanke, who earlier this week told lawmakers that subprime losers could total $100 billion.

While so far limited, Bernanke said a housing slowdown had the potential to cut into consumer spending, hurting the broader economy. His comments helped stocks close lower Wednesday.

Prior to Friday, the Dow had set a record close in five out of the previous six sessions. Thursday investors said upbeat earnings from companies such as IBM (Charts, Fortune 500), Honeywell International Inc. (Charts, Fortune 500) and Bank of America (Charts, Fortune 500) helped lift the benchmark index.

But the stock market rally belies fears about the wider economy. In the first quarter of 2007 the economy grew by just 0.7%, well below normal.

And on Friday the Dollar hit a record low against the Euro and declined verses the Yen on fears weakness in the US housing sector could crimp consumer spending, further weakening economic growth.

Treasury prices rose as money poured out of stocks and into safer government debt. The yield on the benchmark 10-year note fell to 4.95% from 5.01% late Thursday. Bond prices and yields move in opposite directions.

Overseas, major Asian markets finished the session higher on Wall Street's record day Thursday. European stocks started the day higher but finished in the red as the earnings news rolled in.

Oil prices fell, with US light crude for August delivery down 35 cents to close at $75.57 a barrel on the New York mercantile Exchange. Oil is near its all-time trading high of $78.40 hit last July.

Market breadth was negative. Losers beat winners by more than 3 to 1 on volume of 1.99 billion shares on the New York Stock Exchange. On the Nasdaq, decliners topped advancers by nearly 3 to 1 on volume of 2.37 billion shares.

European Markets - European bourses ended the week in negative territory, dragged down by disappointing earnings in the technology sector and growing concerns over the ongoing deterioration of the US subprime mortgage sector.

The FTSE Eurofirst 300 index of top European shares slipped to 1,599.74, down 0.52% on the week. Germany's Xetra Dax ended 1.4% lower at 7,874.85, while the CAC 40 shed 1.5% to 5,957.16 in Paris.

Let's start in Frankfurt then this week where German shares closed lower as dealers said that continued jitters over the effect of subprime lending on top financial stocks helped put pressure on a market that was otherwise characterized by low volume on very little newsflow ahead of key earnings next week.

The DAX closed 116.36 points or 1.46% lower at 7,874.85 points after trading between 7,864.18 points and 8,006.23 points.

The MDAX was 108.82 points or 0.97% lower at 11,110.78 points, while the TecDAX closed down 22.80 points or 2.37% at 940.51 points.

DAX futures were down 135.00 or 1.68% at 7,904.00, while bund futures gained 0.91 or 0.82% to 111.93 points. Deutsche Bank, the country's largest bank, dropped 2.31 euros, or 2.2 percent, to 103.85 euros. Commerzbank, Germany's second-largest, fell 96 cents, or 2.8 percent, to 33.73 euros.

DaimlerChrysler, the world's fifth-largest carmaker, slid 1.65 euros, or 2.5 percent, to 65.11 euros. Siemens, Europe's largest engineering company, declined 2.69 euros, or 2.5 percent, to 105.97 euros.

Shares of GPC tumbled 7.93 euros, or 34 percent, to 15.19 euros after the German biotechnology company said a U.S. Food and Drug Administration panel will meet to discuss its satraplatin cancer drug next week.

Adva AG Optical Networking rallied 17 cents, or 2.3 percent, to 7.67 euros after shares of the maker of computer- network equipment were rated ``outperform'' in new coverage at Credit Suisse Group.

IKB Deutsche Industriebank AG climbed 46 cents, or 1.9 percent, to 24.71 euros. The bank that focuses on small and medium-sized companies said fiscal first-quarter operating profit rose 15 percent to 63 million euros ($87 million) as it attracted new business. The lender reiterated that it plans to increase operating profit to 280 million euros this fiscal year, from 263 million euros a year earlier.

SKW Stahl-Metallurgie AG gained 72 cents, or 1.9 percent, to 38.72 euros. Arques Industries AG, a German holding company with stakes in machinery makers, sold its 50.3 percent holding in the maker of chemicals used in the metal industry to institutional investors for 82 million euros.

The shares were sold for 37 euros apiece and the placement was oversubscribed, Starnberg-based Arques said today in a DGAP newswire statement. Arques shares advanced 48 cents, or 1.3 percent, to 36.34 euros.

Update Software AG jumped 27 cents, or 6.3 percent, to 4.57 euros. The Austrian software maker said second-quarter sales rose to 8.1 million euros from 5.7 million in the year- earlier period. Pretax profit soared 90 percent to 1.07 million euros, the company also said in a statement.

Vattenfall Europe AG advanced 45 cents, or 0.9 percent, to 48.65 euros. Germany's fourth-largest utility said its communication following incidents at two of its nuclear reactors accurately reflected information available to the company at the time.

Now across to France where Share prices ended sharply lower as morning profit-taking, fuelled by ongoing fears about the housing market, was exacerbated by a steep fall on Wall Street where investors reacted negatively to latest earnings reports, including those from technology giants Google and Microsoft.

The CAC-40 index finished down 108.34 points or 1.79% at 5,957.16.

Among CAC-40 stocks, 38 closed lower and 2 closed higher.

On the Matif, July CAC-40 futures were trading at 6,000 points.

On the broader indices, the SBF-80 index closed down 53.54 or 0.71% at 7,211.27 while the SBF-120 ended 72.61 or 1.64% lower at 4,349.02.

Friday's losses mean that the CAC-40 has retreated 160.80 points or 2.63% from last Friday's closing level of 6,117.96.

The latter part of the week was particularly volatile, with a decline of more than 1% on Wednesday followed by a similar sized rise on Thursday, before today's steep fall.

In their weekly markets round-up, Credit Agricole analysts pointed to 'a cerain dichotomy between the messages delivered by the credit markets and stock markets', with the latter focused on fears over subprime home loans whereas the latter remain confident thanks to broadly strong second-quarter earnings and healthy global economic growth.

In Paris, financial and construction stocks figured among the major fallers in view of continuing worries about a major crisis in the subprime mortgage market.

Among financials, BNP Paribas fell 2.60 Eur or 2.99% to 84.24, Societe Generale shed 3.18 or 2.29% to 135.54, while insurer Axa lost 0.64 or 2.00% to 31.34.

But Dexia fared better, falling just 0.16 or 0.67% to 23.66.

In an interview with Thomson Financial today, Dexia's chief executive Axel Miller tried to reassure investors, saying he was 'absolutely confident' Dexia has low exposure to the problems in the subprime mortgage market.

Construction stocks were similarly affected by the subprime situation, with Lafarge down 4.79 or 3.64% at 126.75, Bouygues 1.67 or 2.66% lower at 61.15, Vinci falling 1.42 or 2.48% to 55.77, and Saint-Gobain off 1.62 or 1.93% at 82.35.

The biggest bluechip faller was Vallourec, tumbling 11.11 or 4.89% to 216.18 as speculation of a bid from ArcelorMittal -- down 0.31 or 0.65% at 47.56.

The steel tube maker today announced it is selling two French units, precision Soudage and Vallourec Composants Automobiles Vitry, to ArcelorMittal for an undisclosed sum.

According to a local trader, 'up to now, ArcelorMittal has been considered a major predator. The fact that it has only bought two subsidiaries is reducing speculation.'

Like Vallourec, fellow oil services stock Technip also saw M&A talk fade. The company's shares were up at midday as rumours circulated of an offer by Italy's Saipem, before turning downwards to finish 1.11 or 1.81% lower at 60.27.

Capgemini also gave up some of its recent speculative gains, falling 1.16 or 2.03% to 55.95.

The shares added 3.95% yesterday on talk of a bid by India's Infosys, but reports emerged this morning that CEO Paul Hermelin circulated an internal memo yesterday firmly denying the rumours.

Among the few climbers of the day, Peugeot rose 0.86 or 1.36% to 63.96 after Merrill Lynch lifted its 2007 and 2008 earnings per share forecasts by 16.7% and 12.3% to 4.50 Eur and 6.52 Eur respectively, citing rising confidence in the recovery of its automobile operations.

Outside the CAC-40, Pierre & Vacances added 2.73 or 2.39% to 116.99. The group posted a smaller than expected 5% fall in third-quarter sales to 312.7  million Eur.

Bourbon ended up 0.94 or 2.00% at 47.99 after announcing plans to sell the harbour towage activity of its Les Abeilles unit to Spain's Grupo Boluda Corporacion Maritima.

In The Netherlands Shares in Amsterdam closed near lows on Wall Street's negative trading as investors prepare themselves for more earnings next week.

The AEX closed down 5.23 points or 0.93% at 555.02, after opening at 559.71 and reaching a high of 561.57.

There were few gainers on the AEX at the end of the day with Heineken the clear winner amongst those, rising 1.49% to 46.35, followed by Randstad, adding 0.66% at 62.31, ASML, 0.59% higher to 22.0, and DSM, up 0.27% to 37.77.

On the midcap, tech related Oce put on 1.28% to 18.23 and ASMI advanced 0.48% to 21.08.

Other gainers on the midcap included Boskalis Westminster, up 0.55% to 29.30, and Aalberts, 0.24% higher to 20.80.

TomTom led AEX decliners, falling 2.22% to 40.98 ahead of results expected Tuesday.

Hagemeyer lost 1.91% to 4.10 Eur, reversing earlier gains following news a hedge fund bought a stake in the company, fuelling M&A speculation.

Index heavyweight Unilever slid 1.84% to 23.53 and Royal Dutch Shell shed 1.59% to 29.73.

Akzo Nobel lost 1.47% to 63.02 Eur ahead of results expected Tuesday, with investors disregarding news Organon's sugammadex has been accepted for review by EMEA.

Among financials, ING was down 0.94% to 32.59, Aegon fell 0.57% to 13.94, and Fortis closed 0.07% lower to 30.01, with the positive effects from Dresdner Kleinwort initiating the stock with a 'buy' recommendation and a price target of 36 Eur, dissipating under the onslaught of a negative Wall Street.

ABN Amro closed 1.08% lower to 36.63 in high volume after the bank said in an internal memo that it expects the RBS consortium to officially launch its takeover bid on Monday.

Among smallcaps, Pharming was off 1.0% to 2.97, following the release of first half year results showing no update from management on the products pipeline.

In Belgium , Brussels' Shares closed lower following losses on Wall Street with healthcare group Omega Pharma leading the fallers.

At the close, the Bel 20 was 28.11 points or 0.61% lower at 4,579.36.

Omega Pharma dropped 2.69 Eur or 3.95% to 65.43 following its second quarter results yesterday which showed solid sales but missed analysts' expectations.

Sales for the second quarter totaled 291.9  million Eur, against 258.1  million for the second quarter of 2006, just falling short of analysts' expectations of 294.0-297.0  million Eur.

Over-the-counter (OTC) sales came in at 217.2  million Eur, compared to 190.7  million -- up 14% compared to the corresponding period last year. Analysts forecast sales at 222.5-224.0  million Eur.

Steel and wire cord manufacturer Bekaert fell 3.16 Eur or 2.79% to 110.24, while chemicals and pharmaceuticals group Solvay was down 1.36 Eur or 1.16% at 116.04.

Elsewhere, utility Suez was down 0.46 Eur or 1.11% at 40.87, after its Belgian subsidiary Electrabel bought energy consultancy Suez-Tractebel for 18.2  billion Eur.

Mobile telecoms group Mobistar was 0.56 Eur or 0.91% lower at 60.74.

Mobistar CEO Bernard Moscheni told Thomson Financial News that he sees the current raft of European and national telecoms regulations affecting the Belgian mobile network provider's sales until 2009, but remains confident that growth will come from mobile virtual network operator (MVNO) agreements throughout this period.

Among the heavyweight financials, KBC Group was off 0.48 Eur or 0.49% at 97.82, while peer Dexia inched down 0.16 Eur or 0.67% to 23.67.

Dexia's CEO Axel Miller said the group is 'well on its way' to achieving its 2009 growth targets and expects the current difficulties in the US sub-prime mortgage market to 'offer new opportunities'.

Fortis, meanwhile, edged down 0.03 Eur or 0.10% at 29.98. ABN Amro said the Royal Bank of Scotland-led consortium is expected to officially launch its takeover bid for ABN Amro this Monday, July 23. Fortis declined to comment, but an RBS spokesman confirmed the timing of the offer.

For the risers, real estate group Cofinimmo was up 0.67 Eur or 0.49% at 137.39, while supermarket group Delhaize was 0.28 Eur or 0.38% higher at 73.22.

Outside the Bel 20, copper manufacturer Cumerio inched up 0.04 Eur or 0.13% to 29.99.

Chief executive of Norddeutsche Affinerie Werner Marnette warned A-TEC Industries' principal shareholder Mirko Kovats not to 'interfere' with the German copper group's proposed merger with Cumerio.

Equity investment company GIMV inched down 0.10 Eur or 0.19% to 51.85. The European Commission said earlier today that it has cleared its inquiry into its subsidiary Halder and NPM Capital's proposed acquisition for joint control of Dutch news agency ANP.

Meanwhile, imagine technology group Barco was down 0.12 Eur or 0.17% at 71.68. Analysts welcomed, however, the 72  million Eur received by the imaging group following the sale of its textile unit BarcoVision to Italy's Itema.

Into Switzerland now where in Zurich Share prices closed down tracking sharp falls in early Wall Street trade and with losses in the banking sector weighing on the overall index.

At close the Swiss Market Index was 83.85 points down at 9,105.46, and the Swiss Performance Index was 61.14 points lower at 7,459.27.

The Euro dropped against the Swiss franc to 1.6603 SFr, while the Dollar eased to 1.2000 SFr.

UBS was down 1.50 SFr or 2.1% at 70.35, following news yesterday that Deutsche Bank has placed 35  million shares of the banking group, while peer Credit Suisse, dropped 1.80 or 2.1% to 84.90 SFr.

On the other side of the spectrum, shares of goods inspections group SGS were up 23 SFr or 1.6% at 1,480 after Merrill Lynch moved to upgrade the stock to 'buy'.

Among pharmaceuticals, Novartis gained 1.00 SFr or 1.5% at 66.20, after announcing a raft of positive product news, with the EU's Committee for Medicinal Products for Human Use recommending diabetes drug Galvus, and pagent syndrome treatment Aclasta and Alzheimer medication Excelon, in the form of a skin patch, for EU approval.

The body's recommendations are typically followed by the EU within two to three months.

News that Citigroup has cut the stock to 'hold' from 'buy' had therefore little impact. Although the broker remains positive in the long term about Novartis, in the short term there are few catalysts to drive the share price, it said.

Rival Roche eased 0.20 to 220.30 SFr, after a Merrill Lynch downgrade to 'hold' from 'buy' in the wake of yesterday's sharp gains after strong first half results.

Chemicals continued their recent good run, with Givaudan up 1.6% or 18 SFr at 1,159, and Syngenta increasing 0.50 SFr to 240.30 SFr, after the agribusiness company named John Ramsay as new CFO, replacing Domenico Scala.

Into Scandinavia now and starting this week in Sweden where Stockholm shares closed sharply lower, with Ericsson leading the index lower on disappointment at its worse-than-expected second quarter results, but with a positive outlook from Swedish Match overshadowing its weak results.

The OMX Stockholm index closed down 1.22% at 419.18 points, while the OMX Stockholm 30 closed down 1.52% at 1,283.17. Turnover amounted to 29.351  billion SKr.

Ericsson B closed down 5.18% at 26.36 SKr. A broker at a major Scandinavian brokerage said that while sales and gross margins were in line during the period, operating profit was 5% below the broker's forecasts.

Among the telecom operators, TeliaSonera closed down 0.93% at 53 in line with the market, while Tele2 B outperformed closed up 1.24% at 122.25.

Swedish Match closed up 5.96% at 137.50. In its outlook, Swedish Match said that for 2008 and onwards it expects its corporate tax rate to be around 20%.

Swedish Match was raised to 'Buy' from 'Neutral' at Merrill Lynch with a new target price of 150 SKr per share versus 128 previously following the company's tax announcement.

The banks all closed lower led down by Nordea which shed 1.08% to close at 110.20. Carnegie reiterating its 'Neutral' rating after yesterday's results, saying the positive deviation from consensus was mainly due to higher net gains/losses on items at fair value, and the existence of net loan loss recoveries.

SEB A closed down 0.63% at 238.00. Deutsche Bank upgraded it to 'buy' from 'hold' following first half results yesterday, as it said the group's pretax profit came in 6% above its own estimates.

Deutsche Bank also lifted its target price on SEB to 261 SKr from 249 SKr.

Among other shares heavily traded, Hennes & Mauritz B closed down 2.08% at 400.00, Atlas Copco A down 0.42% at 118.75, Volvo B down 2.85% at 145, Sandvik down 2.02% at 145.25, and Boliden down 0.63% at 156.50.

Neighbours Denmark saw Copenhagen Shares closed marginally lower in quiet trade, led down by Vestas Wind Systems.

The OMXC20 index was down 0.73 points at 512.07 and the OMXCB Benchmark index shed 1.16 points to 489.89. The OMXC All Share index closed down 0.38 points on turnover of 3.768  billion DKr.

Vestas Wind Systems was down 4.50 DKr at 379.50.

Jyske Bank added 3.50 DKr to 422.00 ahead of its half year report on Tuesday.

Carlsberg gained 2.00 DKr to 721.00. Bulgarian news agency Novinite said the group's beer sales in the country grew by 34% to 690,000 hectolitres in the first half of 2007.

Lundbeck added 0.75 DKr to 144.50. According to a new study, antidepressants such as Lundbeck's Lexapro diminish the risk of suicide, RB Boersen news agency said citing AFP.

Novo Nordisk was down 1.00 DKr at 595.00. Daily Jyllandsposten said the group's growth hormone Norditropin has been stolen and sold on the internet by criminals on various occasions.

Among other shares, Danske Bank shed 1.50 DKr to 237.00, Novozymes was down 6.00 DKr at 679.00 and Bang & Olufsen gained 9.00 DKr to 669.00.

In Norway , Oslo Share prices closed lower, led down by Petroleum Geo-Services on renewed concerns ahead of its results next week, and by Hafslund, after a weaker second quarter report.

The OSEBX Benchmark index closed 0.73% lower at 520.56 while the OSEAX All Share index fell 0.64% to 601.19. Total turnover amounted to 7.85  billion NKr.

PGS led the fallers, losing 2.88% to finish the day at 152.

The seismic firm is due to release its second quarter results next Thursday, and while the market is expecting the firm's 'best ever quarter', some analysts say they are concerned that revenues from PGS's contracted seismic unit will have fallen over the quarter, due to a shift towards multi-client data acquisition, the relocation of two crews, and a seasonal downturn.

Elsewhere in the offshore services sector, Seadrill lost 1.20% to finish at 124, Subsea 7 eased 0.67% to 147.50, and Fred Olsen Energy ended flat at 303.

Norwegian electricity-to-home security group Hafslund added to overall falls, finishing the day lower after having disappointed investors with a second quarter report that was hit by lower power prices and the payment of special dividends worth 3.46  billion NKr.

For the second quarter Hafslund posted operating profits of 6.91  billion NKr, down from 7.70  billion at the same point last year, as the firm was hit by a 40% year-on-year fall in average power sales prices.

Revenues, meanwhile, came in at 2.04  billion NKr, falling from 2.39  billion at the same point last year.

Hafslund's A-shares fell 1.89% to 155.50 on the results, while its B-shares lost 0.93% to finish at 160.50.

Renewable Energy Corporation, in which Haflsund has a 14.3% stake, closed down 2.20% having gained more than 5% this week on the news that it is to invest 1.35  billion NKr increasing its solar wafer capacity in Norway.

Fast Search & Transfer, the internet search group, fell 2.05% to 14.35.

The group announced it has won a deal with fund manager Fidelity International for the deployment of its Fast Enterprise Search Platform, worth an undisclosed sum.

Elsewhere, oil stocks were largely unchanged as oil prices steadied, underpinned by speculative buying amid continuing concerns over global supply and a positive demand outlook boosted by China's release Thursday of stronger-than-expected second-quarter GDP data.

And rounding our the Nordic arena this week we go to Finland where in Helsinki Shares closed lower, led by TietoEnator which slid more than 15% in heavy volume selling after a disappointing second-quarter in which a key business unit posted an unexpected loss.

The fall put the major indices under pressure, with the OMX Helsinki 25 index dipping 0.53% to 3,298.90 and the OMX Helsinki index ending down 0.78% at 11,551. The HEX Tech, of which TietoEnator is a component share, lost 3.95% to 1,250.44.

Total bourse volume was a little over 1.5  billion Eur.

TietoEnator ended the session at 20.08 Eur, 15.52% down on the day. Kaupthing cut its recommendation to 'reduce' from 'neutral' in the wake of its April-June report, and trimmed its target price to 18 Eur from 26 Eur.

There were also falls for other tech shares, with Nokia slipping 2.04% to 21.17 Eur and Elisa 1.05% to 20.78 Eur.

Relief came from the engineering sector, with Kone putting on 2.06% to end at a record closing high of 50.92 Eur. The lift and escalator manufacturer, whose shares had touched 51.82 Eur during trading today, reported second-quarter numbers comfortably ahead of market estimates. It also raised its full-year guidance profits and sales guidance, but not by more than the market had been expecting.

Cargotec added 1.80% to 21.86 Eur after yesterday's sharp fall, while Konecranes rose 1.47% to 31.72 Eur and Outotec advanced 3.94% to 44.90 Eur.

Elsewhere, M-real shed 2.94% to 4.96 Eur, Outokumpu rose 1.60% to 24.75 Eur and Sampo edged 0.33% lower to finish at 22.15 Eur.

Down into the Med' now and starting with Athens where Greek shares closed sharply lower and underperformed European peer bourses, weighed down by negative market sentiment and profit taking.

The ASE general index dropped 1.1% to 5,058.8 and blue chips fell 1.5% to 2,682.5. Mid caps closed flat at 6,859.9 and small caps were little changed at 1,219.9.

Decliners outnumbered advancers 159 to 110 while 44 were unchanged in very heavy trade of roughly 660  million Eur in a session characterized by block trades.

The Bank of Cyprus dropped 2.6% to 13.1 Eur on profit taking after recently outperforming. It said today from Nicosia today that it opened a branch in Romania as part of its plans to expand into the Balkans, Russia and Ukraine.

Electricity utility Public Power Corp (PPC) fell 2.6% to 13.1 Eur. Press reports said that Egyptian investor Sawiris is looking for a buyer for his 50% plus 1 share stake in PPC unit Tellas.

Titan Cement closed 1.1% lower at 41.4 Eur on profit taking after gaining yesterday. Thursday, its management said it was granted permission to build a 200  million usd cement plant in near Tirana, Albania.

EFG Eurobank shed 1.8% to 26.5 Eur. Its AGM, which was to decide on a 1.2  billion Eur capital increase, has been postponed until Aug 2 due to lack of quorum.

Bank of Piraeus ended down 2.5% 26.8 Eur on profit-taking and the National Bank of Greece (nyse: NBG - news - people ) closed 1.3% lower at 45.1 Eur shedding gains from early in the session.

Chemicals group Neochimiki closed flat at 21.22 Eur. It said today that it's the preferred bidder in the first round of competition for the privatization of the Serbian fertilizer producer IHP Prahovo.

Lottery operator OPAP closed just 0.2% lower at 26.24 Eur, outperforming the market. Newspaper Imerisia's reported that the Greek government is considering management changes for the organization after the recent failure of its IT tender.

Neighbours Italy saw Milan Share prices close lower, extending falls in the afternoon part of the session on Wall Street's weak performance, and led by Impregilo, giving up yesterday's sharp gain.

The Mibtel index lost 1.25% to 32,704 points and the S&P/Mib fell 1.48% to 41,496. Volume traded was an estimated 5.670  billion Eur.

Impregilo lost 4.42% to 6.12 Eur. The share is reacting positively to orders and prospects for Italian infrastructure projects, while a 750  million Eur sequestration threat remains a negative.

Among cement stocks, Buzzi Unicem ended this week's sharp fall, up 0.34% at 23.45. Brokers said there was no news on the company but the stock had strongly outperformed its peers.

Italcementi fell 1.30% to 21.28. Cementir was down 3.17% at 10.63.

Oils were on the downside, with Eni off 2.30% at 27.19 and services company Tenaris off 2.26% at 17.78. Saipem lost 0.88% to 27.15.

Among utilities, Enel lost 0.59% to 7.885 as investors switched into bonds. Smaller utilities remained supported on restructuring. Terna gained 0.90% to 2.585 and Snam RG was up 0.47% at 4.2075.

In the banking sector, BPM outperformed, up down 0.28% to 11.27, supported ahead of a board meeting next week to discuss the aftermath of its failed merger with BPER and revisions of its business plan.

Unicredito fell 2.08% to 6.39. The bank faces concerns that it is over-extending itself with its recent acquisition spree.

Banco Popolare fell 0.57% to 19.76 after a court cleared a settlement with Magiste, the company formerly owned by real estate tycoon Stefano Ricucci.

Unipol rose 1.12% to 2.61.

Alitalia rebounded, up 0.62% at 0.752, after recent negative news on the government's privatisation effort.

Telecom Italia lost 1.68% to 2.0725 after yesterday's gains. Morgan Stanley reiterated its 'underweight' on the stock.

And bringing Europe to a close this week we go to Madrid where Spain 's market closed lower as profit-taking hit leading blue chips, with ACS falling on placement news, while Zeltia surged after EMEA approved late yesterday its Yondelis drug.

The IBEX-35 index ended down 276.9 points at 14,930.4 after trading in a range of 14,925-15,249. Equities opened slightly lower, but pushed higher in early deals before resuming their downward trend.

Zeltia outperformed the broad market, surging 1.19 Eur or 14.51% to 9.39, after its PharmaMar unit's Yondelis received EMEA approval late yesterday for the treatment of soft tissue sarcoma.

The group's chairman told Thomson Financial News that PharmaMar plans to retail the drug in Germany and the UK this year, pending European Commission approval which is expected in September.

Main heavyweights were in the red, with Telefonica down 0.38 or 2.16% at 17.18, BBVA off 0.39 or 2.12% at 18.02 and Santander 0.36 or 2.51% lower at 13.98.

ACS dropped 2.38 or 4.95% to 45.71, after Morgan Stanley said it has placed 10.4  million shares or 2.95% on behalf of Mutua Madrilena and Aresa Seguros Generales at 46.5 Eur per share.

Other builders were also weak, with Sacyr off 1.54 or 3.95% at 37.45 and Acciona 6.35 or 3.10% lower at 198.35.

Enagas gained 0.46 or 2.61% to 18.07 after Spanish state holding company SEPI said it has agreed to acquire up to 5% of the gas transportation group, fuelling speculation of an eventual merger with REE, which gained 0.22 to 33.98.

UK Market - BAE Systems was a leading gainer on Friday as JPMorgan said the market had underestimated the potential benefits from the burgeoning market for blast-proof military vehicles.

The defence and aerospace company is a leading manufacturer of mine resistant ambush protected (MRAP) vehicles. The Pentagon has pledged to spend more than $1bn on thousands of MRAPs for use in Iraq.

BAE shares closed up 1.6% at 428p, although this is well short of the 466½p reached before the US Department of Justice launched a formal anti-corruption investigation into the company.

In the wider market, the FTSE was unsettled by a weak opening on Wall Street and stronger-than-expected economic growth in the UK, which did little to damp expectations of another interest rate rise next month. The FTSE 100 fell 55 points, or 0.8%, to 6,585.2 while the mid-cap FTSE 250 lost 60.8 points, or 0.5%, to 11,819.4. Over the week, the blue-chip index lost 2% while the mid-caps slipped 0.9%.

The day's main talking point was Friends Provident, which jumped 4.2% to 186.4p amid feverish take-over speculation. Talk was that Resolution, the closed life assurance group, was poised to bid for the life assurer. Friends Provident was recently linked with a bid from Axa, the French insurer, and JC Flowers, the private equity group. Although Axa is believed to have run the slide rule over Friends, it is not thought to have made an approach and no talks are believed to be taken place.

Dealers cautioned that with heavy volume of almost 60m shares supporting the rise, the speculation could not be dismissed. Resolution rose 0.2% to 629p.

Kingfisher rose 0.3% to 222¾p as Deutsche Bank lifted its stance on the owner of B&Q from “sell” to “hold”. Although the bank slashed its profit forecasts by 10% ahead of second-quarter sales figures next week, it said Kingfisher shares – down 22% from their peak earlier in the year – were trading at a level that made the company a viable takeover target. “The shares are now at a level where the value that potential acquirers might pay for the various parts of the group is becoming increasingly relevant, hence we now consider the SOTP [sum of the parts] more important. Our LBO [leverage buy-out] analysis suggests an acquirer would probably pay 250p [a share],” the bank wrote.

The mining sector rev­ersed early gains as China moved to cool its booming economy by raising interest rates. Lonmin fell 2.7% to £36.85 and Vedanta Resources slipped 1.6% to £17.75.

Takeover target Whitbread faded 1.8% to £18.55 as Alan Parker, chief executive, exercised options and sold just over 25,000 shares in the leisure company.

Johnson Matthey slipped 1% to £18.10 in spite of Citigroup raising its price target from £18 to £20 ahead of next week's annual meeting statement from the catalysts and precious metals group.

In the mid-caps, Galiform rose 4% to 130½p as Dresdner Bank said the Howdens Joinery owner was its top pick in the mid-cap index. “Worries over consumer and housing market exposure have seen the shares underperform by 20% over three months and give back nearly all of their one year outperformance. To us, this looks overdone given Howden's proven resilience, the quality of the model and the supply restructuring opportunities,” Dresdner wrote.

National Express gained 2.7% to £11.68 as Morgan Stanley said the bus operator was its “key pick” in the transport sector. “We like [the company] for the cash returns from continental auto, which we think the market is underestimating,” Morgan Stanley wrote.

Debenhams lost 4% to 133p as Baugur, the acquisitive Icelandic group, ruled out a bid.

Japan & Asia Pacific - Most Asian markets rose Friday, with Hong Kong, Sydney, Jakarta and Seoul hitting record highs. Tokyo also advanced, lifted by steel companies with strong earnings expectations.

In Japan The Nikkei inched up 0.23% on Friday with steel shares like Nippon Steel Corp. advancing following strong output data, but gains were limited as KDDI Corp and Softbank Corp fell on price war fears.

Hoya Corp., a Japanese high-tech glass maker set to seal its takeover of Pentax, ended down 3.3% after posting a 17% decline in quarterly profit. 

Investors sold Mitsubishi Estate Co. Ltd. and other property stocks with high valuations and bought steel, trading firms and machinery stocks that have lower valuations as well as profit prospects.

The benchmark Nikkei average added 41.36 points to 18,157.93. The broader TOPIX index added 0.46% to 1,776.17.

Trade was active with 2.6 billion shares changing hands, compared with last year's daily average of 1.93 billion. Turnover also stood at 3.3 trillion Yen. Declining shares beat advancers by 936 to 667

Into Hong Kong where Share prices closed at record highs as China Mobile and mainland financials posted strong gains following a rally on the Shanghai bourse, with investors also cheering a solid finish of the Dow Jones Industrial Average overnight.

Dealers said the market has put aside concerns over possible monetary tightening measures in China, with the focus shifting to upcoming corporate results announcements.

The Hang Seng Index closed up 275.7 points or 1.20% at 23,291.90, after moving in the range of 23,118.67 and a new all-time-high of 23,301.93. For the week, the index is up 192.61 points or 0.83%

The index's previous closing high was 23,099.29 on July 13, while its previous all-time intraday high was also on the same day at 23,239.92.

Turnover Friday was at 83.45  billion hkd.

The Hang Seng China Enterprises index closed up 268.22 points or 2.08% at 13,152.25. China Mobile was up 2.25 hkd or 2.47% at 93.2

To the Mainland now where in China Shanghai's stock index closed above 4,000 Friday, backed by strong growth in banks and real estate companies.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B chips, grew 3.73% to 4,058.85.

The Shenzhen Composite Index, which covers the smaller Chinese mainland market, inched up 3.89% to 1,124.58.

China Vanke, China's largest listed real estate developer, added 2.33 yuan, or 10%, to 25.64 yuan per share.

Poly Real Estate Group Co, China's third-largest developer by market value, advanced 4.56 yuan, or 8.39%, to 58.90 yuan.

Shanghai Pudong Development Bank Co led lenders higher after it said first-half profit climbed 50%. Its stock added 3.69 yuan, or 9.87%, to 41.07 yuan a share.

China Merchants Bank gained 1.63 yuan, or 5.96%, to 28.98 yuan.

Into South Korea now where in Seoul South Korean technology shares finished higher for the second straight session on Friday but the gains fell far short of the 2.4% jump in the main board's KOSPI.

Still, the technology-focused KOSDAQ index managed to recoup losses earlier in the week with the two-day rally, helped by positive quarterly earnings reports at South Korean and US companies.

The KOSDAQ index closed up 6.01 points or 0.7% at 825.33. The index slipped 0.07 point for the week.

The KOSTAR index advanced 9.25 points or 0.5% to 1,748.26.

Volume traded was a thin 540 million shares worth two trillion won.

Rises outnumbered falls 549 to 381, with 64 shares unchanged.

Foreign investors and institutions were net sellers of shares worth 23.8 billion won and 11.2 billion won, respectively, while retail investors were net buyers of 29.9 billion won in shares.

Megastudy jumped 8,200 won or 4.4% to 196,000, extending recent gains, after its online academic lectures attracted an increased number of students at the beginning of summer vacation.

Eugene Corp soared 1,300 won or 7.3% to 19,150 as its subsidiary Seoul Securities closed limit-up after the broker's top manager expressed interest in taking over financial companies.

Dongwha Holdings surged 3,500 won or 14.6% to 27,500. The company who supplies papers and wood-processed products said it was not aware of any reason behind the rally in its stock price.

Dental clinic equipment supplier Osstem Implant rose 2,100 won or 5.4% to 41,350 after reporting that its second-quarter operating profit jumped 20% year-on-year to 6.5 billion won.

Taiwan shares rose to a new seven-year high Friday, boosted by renewed demand for electronics issues.

The Weighted Price Index of the Taiwan Stock Exchange rose 112.59 points, or 1.2%, to close at 9,585.90 on heavy volume.

The electronics subindex was up 1.8% Friday, mostly supported by computer-related companies on hopes of strong demand later this year.

Asustek Computer rose 6.8% to close at NT$101.50.

Traders said the buying momentum is likely to continue next week.

Philippine share prices closed 0.9% higher Friday, with sentiment getting a boost from Wall Street's record finish overnight, dealers said.

The composite index rose 35.37 points to 3,738.28, off the day's high of 3,744.71.The all-share index rose 25.35 points to 2,421.92.

There were 78 gainers and 28 losers, with 63 stocks unchanged.

Volume was 2.6 billion shares worth 4.3 billion pesos.

Ayala Corp rose 15 pesos to 570 pesos.

Metropolitan Bank and Trust Co, the nation's biggest lender by assets, jumped 2.50 pesos to 69.50 pesos.

Bucking the trend, top-traded Philippine Long Distance Telephone was down 10 pesos at 2,690 pesos on profit-taking after hitting record highs recently.

San Miguel Corp. saw its A and B shares unchanged at 74 pesos and 82.50 pesos respectively.
 
Thai shares edged up 0.4% to 850.54 points in moderate trade, led by gains in major banks after the release of positive second-quarter earnings.

Indonesia shares rose 1.4% to a record high of 2,366.40. Foreign funds bought banks and mining blue chips.

Malaysia shares inched up 0.4% to 1,382.36 points in moderate volume.

Indian shares ended flat as gains in telecommunication companies were offset by losses in leading banks. The Bombay Stock Exchange's 30-share Sensex index rose 15 points, or 0.1%, to 15,565. On the broader National Stock Exchange, the 50-company S&P Nifty index inched up 0.09% to 4,566 points.

Singapore shares were lifted by big gains in some blue chips and Wall Street's strong performance overnight. The index gained 46.76 points, or 1.3%, to finish at 3,651.38.

In Australia the share market ended the week in record territory as the big miners cashed in on strong metal prices overnight.

The benchmark S&P/ASX200 index set a record up 37.6 points to 6421.8, compared to its previous best two weeks ago of 6400.6.

The All Ordinaries was also at a new high, up 37.7 points to 6456.7, ahead of its previous record of 6429.5 two weeks ago.

On the Sydney Futures Exchange, the September share price index contract was 41 points higher at 6425 on a volume of 14,267 contracts.

While the upswing was backed up by other sectors, including the financials, none had gained as consistently as the miners.

Overnight, three-month tin futures and lead futures hit record highs, while nickel futures rose to a two-week high.peThe world's largest miner, BHP Billiton, climbed 72 cents to $38.40 while rival Rio Tinto gained $2.45 to $99.90.

The big banks were mixed with the Commonwealth adding 55 cents to $56.90 and NAB firming 12 cents to $40.82.

But the ANZ gave up eight cents to $29.56 and Westpac retreated four cents to $26.70.

The gold miners followed suit, with Newmont Mining up 10 cents to $4.98, Lihir four cents stronger $3.17 and Newcrest two cents better at $24.59.

Energy stocks gained after US crude oil futures hit an 11-month high at $US76 a barrel.

Woodside Petroleum was 18 cents stronger $46.60, Santos added 36 cents to $14.80 and Oil Search closed just one cent up to $4.36.

In market news, ING Industrial Fund surged 10.83%, or 26 cents, to $2.66 after property firm Goodman Group has acquired 9.4% stake.

The takeover tussle for Consolidated Minerals intensified with Pallinghurst Resources raising its bid to a $752 million all-cash offer to counter a rival offer from Territory Resources.

Territory shares closed 12 cent heavier at $1.145 while ConsMin finished four cents lighter at $3.46.

Shares in QBE Insurance Group rose 12 cents to $30.84 after it reported its first step into India's general insurance market through a joint-venture agreement.

But the retailers reversed with supermarket leader Woolworths losing 15 cents to $27.80 and rival Coles Group down seven cents to $15.17.

Coles suitor Wesfarmers continued to lose ground, dropping 31 cents to $40.70.

The telcos lifted with Telstra gaining seven cents to $4.76, while its instalment receipts were six cents higher at $3.27.

The top-traded stock by volume was property fund ING Industrial Fund, with 82.18 million shares worth $223.93 million changing hands.

Market turnover was 1.85 billion shares worth $5.81 billion, with 739 stocks up, 526 down and 351 unchanged.

New Zealand share prices closed higher Friday following gains in overseas markets.

The benchmark NZX-50 index rose 26.01 points or 0.6% to 4,320.27, just short of the record finish of 4,333.24 set on May 24.

Turnover was 148.5 million New Zealand Dollars.

Rises led falls 64 to 57 among the 157 stocks traded.

Sentiment was boosted by news that dairy giant Fonterra's payout to farmers is likely to be higher than even the record level forecast six weeks ago.

The third largest local stock Contact Energy continued its strong run, climbing 10 cents to set a new high of 9.45 Dollars. Contact is seen as a good defensive stock if economic conditions worsen.

Another power company, Trustpower jumped 30 cents to 8.65 Dollars.

Fletcher Building rose 31 cents to 12.73 Dollars, with some analysts again re-rating the stock higher.

Market leader Telecom rose three cents to 4.87 Dollars.

MediaWorks rose 20 cents to 2.65 Dollars after Australian private equity company Ironbridge Capital secured full control of the owner of television channel TV3.

Commodities - Commodities markets were mostly up on the week, with strong price increases in the base-metals sector underpinned by ongoing supply concerns, robust demand and 'speculative' money flows.

US Dollar weakness also contributed to the price gains in base and precious metals. The gold price on Friday surged to a 10-week high on the fall of the US Dollar against the Euro, Yen and Sterling.

China's strong economic growth in the second quarter and comments by the International Monetary Fund that the global economy was “booming” provided additional upside sentiment.

In a signal of the strength of base-metals prices, the market saw further gains after China announced on Friday it would increase interest rates for the fifth time in 15 months in order to cool its economy.

Gold rose $18.30 on the week to $685.50 a troy ounce. The US Dollar hit a fresh 26-year low against the Sterling and sank to an all-time low against the Euro.

Lead on Friday rose to a fresh all-time high of $3,485 a tonne, up 110% since January. The heavy metal pocketed gains of 15.2% this week, the best performer on the base-metal market, after closing at $3,480 a tonne.

Traders said speculative money was pushing the lead market alongside a robust fundamental picture. Supplies had been cut from a major mine in Australia, while demand was booming thanks to healthy consumption in the battery industry.

Tin surged on Thursday to an all-time high of $15,700 a tonne and gained 8.5% on the week to close at $15,400 a tonne. The metal, was vulnerable to a correction, traders said. But supply disruptions in Indonesia, the world's largest tin exporter, could minimise any falls.

Nickel enjoyed a recovery, surging 6% on the week to trade at $34,700 a tonne. But the metal has lost about 32% since its all-time high of mid-May.

Copper rose 3.1% on the week to $8,131 a tonne thanks to declining stocks in London Metal Exchange warehouses and fears of supply disruptions after new strikes in Chile, the world's largest copper producer.

Aluminium rose 2.2% on the week, to settle at $2,854 a tonne. It is the highest price for the metal, a key material for the aerospace industry, since late May.

On the energy market, oil ended the week little-changed. In late London afternoon trade ICE September Brent was down 17 cents on the week to $77.40 a barrel. Oil prices ended the week close to recent peaks after reaching an 11-month high of $78.40 a barrel on Monday.

Nymex August West Texas Intermediate was trading up $1.65 on the week at $75.47 a barrel. The more active September WTI contract traded at $75.68 a barrel.

Agriculture commodities had a mixed week. Euronext Liffe September cocoa rose £24 to £1,100 a tonne on renewed supply concerns while September robusta coffee rose $73 to $1,877 a tonne.

Currencies - Sterling was the big winner among the major currencies this week as the prospect of further interest rate rises appeared to increase after stronger-than-expected inflation and growth data.

The two main data releases of the week came as something of a contrast to the minutes from the Bank of England's last monetary policy committee meeting. The minutes showed that the nine MPC members voted 6-3 in favour of this month's quarter-point rate increase to 5.75%, but that there was growing belief that the Bank should adopt a wait-and-see stance as recent rate rises fed into the economy.

Inflation, however, showed few signs of peaking. Sterling hit a 26-year high on Tuesday after consumer prices rose faster than expected. Strategists said that the surprisingly strong rise in the core consumer price index would have come as a greater shock to the MPC, as it rose to a 10-year high of 2%.

If core inflation continues to increase, headline inflation may remain above its target for much longer. The chances that the MPC might need to push interest rates above 6% to contain inflation pressures have increased accordingly.

Friday's second-quarter gross domestic product data would have done little to ease the concerns of the MPC. GDP was estimated to have risen by 0.8% in the second quarter, beating expectations of a 0.7% rise and bringing annual growth to 3%.

The Pound rallied 0.5% against the Dollar on Friday, hitting another 26-year high at $2.0587, a gain of 1.2% over the week. Against the Euro, Sterling rose 0.7% over the week to £0.6724 and was 0.4% higher against the Yen at Y249.31.

The Dollar continued to be undermined by the impact of the subprime mortgage crisis. US consumer prices failed to provide any surprises, and testimony before two congressional committees from Ben Bernanke, Federal Reserve chairman, was unable to lend the ailing Dollar support. Mr Bernanke said core inflation in the US had moderated in the past few months, while the pace of home sales was likely to remain sluggish for some time.

Over the week, the Dollar fell 0.4% against the Euro to $1.3835 and by 0.2% against the Yen to Y121.21. The Yen had some respite this week as the problems surrounding the Dollar, and a modest fall on global equity markets, prompted the unwinding of carry trade positions.

Although hunger for yield reasserted itself in the middle of the week, a hefty sell-off on equity markets on Friday ensured a late rally for the Yen. The Japanese currency halved its weekly losses against the high-yielding New Zealand Dollar to 0.7%, standing at Y96.60. The Euro, which on Friday came within a fraction of striking a record high at Y168.90, ended 0.3% lower at Y167.61.

The Turkish lira endured a volatile week in the run up to Sunday's general election. However, polls showing the chance of an outright win for the pro-business AK party prompted a strong rally on Thursday.

Up more than 11% this year, the lira fell 0.3% on Friday and analysts said further losses were likely as the prospects of central bank intervention increased.

South Africa's Rand softened against the Dollar on Friday as the previous day's market excitement over possible investor inflows into the country faded and emerging market nerves re-emerged. The Rand stood at 6.8845 versus the Dollar, about 0.36% weaker than Thursday's close of 6.86 in New York.

The Canadian Dollar fell hard versus the US currency on Friday as its inability to find a comfort zone above a key level triggered a freefall that was magnified by thin markets. The Canadian Dollar closed at C$1.0485 to the US Dollar, or 95.37 US cents, down from C$1.0437 to the US Dollar, or 95.81 US cents, at Thursday's close.

And rounding out currencies as always, here in China the RMB finished at 7.5740 to the Dollar on the over-the-counter (OTC) market, down from 7.5632 Thursday.

China - The People's Bank of China Friday raised the benchmark rates for the country for the third time since March.

The Chinese central bank raised the benchmark one-year deposit rates by 27 basis points to 3.33% from 3.06%, and the benchmark one-year lending rates to 6.84% from 6.57%. The People's Bank of China took this step after data on GDP growth released this week showed that economic growth in the second quarter had accelerated to 11.9%, from 11.1% in the first quarter. Consumer price inflation stood at 4.4% in June, a near three-year high.

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Bank of Nanjing and Bank of Ningbo soared 72% and 141%, respectively, on their trading debuts on the Shanghai and Shenzhen stock exchanges on Thursday, as investors grabbed their first opportunity to buy into China's smaller regional banks.

The first-day premiums were in line with other recent Chinese initial public offerings and are almost a tradition in the country's highly speculative and opaque capital markets.

So far this year, 47 companies have raised a combined Rmb141bn ($18.6bn) by means of IPOs with their shares increasing by an average of 137% on their first day of trading.

The two banks are the first city commercial banks to go public in China, following the path blazed by the country's largest lenders, including Industrial and Commercial Bank of China, Bank of China and China Construction Bank.

They are expected to be followed to the stock markets by at least 20 more city commercial banks in the next two years and, given that every important Chinese city has its own local bank, there could be more to come after that.

Both of the newly listed banks have introduced strategic foreign investors to help them reform their risk management and restructure to meet intensifying competition from foreign banks.

France's BNP Paribas owns about 13% of Bank of Nanjing and Singapore's Oversea-Chinese Banking Corp has a share in Bank of Ningbo.

By Thursday's close, Nanjing Bank's shares were trading at a price-to-earnings ratio of 47 times estimated 2007 earnings while Ningbo Bank's p/e ratio was 65 times forecast earnings.

IPOs in China are always priced cheaply in order to guarantee a successful debut and profits for early-stage institutional investors, many of which are state-owned enterprises.

In the history of the Chinese stock markets, there have been only five IPOs that fell on their first day of trading.

In August, 2004, three IPOs fell on debut, forcing their already struggling underwriters to pick up the slack and to buy their shares.

The government promptly suspended new share listings for nearly seven months because of concerns about the potential for widespread failures in the already bankrupt securities industry.