Associated Press Stocks falter as investors battle uncertainty

NEW YORK (AP) -- Investors fixated on the faltering economy brushed off the type of merger news that normally starts rallies.Wall Street fell more than 1 percent Monday as uneasiness about the economy eclipsed a bounce in troubled financial stocks and news of a big drug company merger. Stocks rose in the early going but turned lower in a now familiar pattern where short-lived bursts of optimism give way to concerns about the country's economic woes.

Financial stocks rose on a news report that Bank of America Corp. could raise capital in the private sector. Shares of major banks have been pummeled to multiyear lows amid growing concern that they don't have enough cash to cover future losses despite multiple government rescues.

"Any bank right now that can raise money in the private sector, that is a major positive for the market," said Quincy Krosby, chief investment strategist at The Hartford. "It's another way to raise capital rather than the government infusing capital into the banks." more...

Associated Press Asian stock markets sink as concerns about global economy persist; HSBC tumbles 12 pct

HONG KONG (AP) -- Asian stock markets sank Monday, with Japan's benchmark tumbling to a 26-year closing low, amid deepening anxiety that economies in the U.S. and elsewhere will take far longer to emerge from recession.

Investors continued to shun banks on worries they still haven't raised enough capital to make up for their colossal losses. Heavyweight bank HSBC, Europe's biggest, tumbled over 12 percent Hong Kong trade.

Japanese shares, already among Asia's worst performing this year, crumbled to a 26-year low after the world's second-largest economy posted a record current account deficit in January. Oil prices, meanwhile, were higher ahead of an anticipated production cut from OPEC.

Recent losses in Asian markets, while somewhat tame compared to those in the West, have still been severe as investors ratchet down their expectation for global growth in the face of abysmal economic data and signs of ongoing struggles at banks and major firms like General Motors.

"Sentiment is terrible," said Ben Pedley, managing director of LGT Investment Management Ltd. in Hong Kong. "We're going to be in a funk, not only in Asia, but in the rest of the world for the next year or two." more...

CNBC Gasoline Prices Continue Steady Rise: Survey

U.S. average retail gasoline prices edged up in the past two weeks as oil prices rose and demand increased after motorists' lengthy aversion to sky-rocketing pump prices, according to the latest nationwide Lundberg survey on Sunday.

The average national price for self-serve regular unleaded gasoline was $1.9625 a gallon on March 6, up 1.82 cents per gallon in the past two weeks, according to the survey of gas stations.

The average price has risen about 30 cents from a recent bottom on Dec. 19, but is still $2.15 below the all-time high of $4.1124 a gallon set last July 11. The current gasoline price is also down $1.23 from the same period last year. more...

CNBC China GDP Q1 to grow 6.5 pct y/y - think tank

SHANGHAI, March 9 (Reuters) - China's economy in the first quarter is forecast to expand 6.5 percent from a year earlier, and consumer prices will likely contract 1 percent, a government think tank said. Chinese exports may fall 9 percent in the first quarter from a year earlier to $278.4 billion, while imports are likely to drop 25 percent to $198.4 billion, the State Information Center predicted in a report carried in the China Securities Journal. As a result, China's trade surplus may jump 93.2 percent to $80 billion, it said. China has taken a series of measures, including a 4 trillion yuan ($586 million) stimulus plan, tax cuts, and looser monetary policies, to prevent a sharp slowdown in its economy. (Reporting by Samuel Shen, Editing by Jacqueline Wong; Reuters Messaging: jacqueline.wong.reuters.com@reuters.net; +86 21 6104 1791)) Keywords: CHINA ECONOMY/FORECAST COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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CNBC Oil Gains Over 2% to Near $47 on OPEC, Weak Dollar

Oil rose over 2 percent to near $47 a barrel on Monday, extending the previous session's gains of over 4 percent, thanks to a weaker U.S. dollar and optimism that OPEC would cut output again at this month's meeting.U.S. crude [US@CL.1 46.26 0.74 (+1.63%)] for April delivery rose $1.21 to $46.73 a barrel in the Asian, adding to Friday's gains of $1.91. London Brent crude [GB@IB.1 45.13 0.28 (+0.62%)] rose 58 cents $45.43 a barrel. It was the first time since Dec. 11, 2008 that NYMEX crude has gained a premium over Brent at the settlement.

"The U.S. dollar has moved lower a little bit this morning and we are getting closer to the OPEC meeting on March 15, so I guess those factors are offering support," said David Moore, an analyst at the Commonwealth Bank of Australia.

The dollar slid lower versus the euro on Monday, adding to the last session's decline, as investors locked in gains and pared back safe-haven trades on the greenback.

Further encouraging oil's gains were comments from OPEC's secretary general, who said on Friday that low oil prices could provide economic stimulus in the short term, but at the cost of a supply shortfall in future due to low investment. OPEC member Venezuela also said it would propose another output cut if needed as the cartel prepares to meet on March 15, echoing comments from some other members. more...