August 2010 European Penny Stock Market

In corporate news, U.K. banking giant Barclays (BCS)unemployment benefits unexpectedly showed a
reported that its first-half pre-tax profits rose to 3.4moderate increase in the week ended July 31st.
billion pounds, helped by lower impairment chargesInitial jobless claims rose to 479,000 from the
and gains on its own debt. U.K. insurer Aviva said itsprevious week's revised figured of 460,000. The
first-half operating profit came in at 1.27 billion poundsincrease came as a surprise to economists, who had
compared to 1.05 billion pounds last year.expected jobless claims to edge down to 455,000
Unilever (UL) reported a second quarter profit of 1.06from the 457,000 originally reported for the previous
billion euros compared to 758 million euros last year,week.
as sales rose 12.4% to 11.75 billion euros. Mining giantCurrency, Commodity Markets
Rio Tinto (RTP) said its underlying earnings for theCrude oil futures are falling $0.53 to $81.94 a barrel
first-half period rose about 125% to $5.77 billion.after edging down $0.08 to $82.47 a barrel on
Two central bank decisions from the region cameWednesday. The modest retreat in the previous
along the expected lines. At the end of two-day ratesession came amid the release of the EIA's inventory
setting meeting, the Bank of England's Monetaryreport, which showed that crude oil inventories fell by
Policy Committee decided to retain the interest rate2.8 million barrels to 358 million barrels in the week
at 0.5%. The current rate is the lowest since theended July 30th. Inventories of crude oil remained
central bank was established in 1694. The decisionabove the upper limit of the average range.
was in line with economists' expectations. PolicyAt the same time, gasoline inventories edged up by
makers also voted to maintain the stock of asset0.7 million barrels and were above the upper limit of
purchases financed by the issuance of central bankthe average range. Distillate stockpiles rose by 2.2
reserves at GBP 200 billion. The minutes of themillion barrels, remaining above the upper boundary of
meeting will be released on August 18.the average range. Refinery capacity utilization
The European Central Bank left its key interest rateaveraged 91.2% over the four-weeks ended July
unchanged at a record low of 1% for the fifteenth30th compared to 90.6% in the previous week.
straight month. The decision was in line withGold futures are edging up $2.60 to $1,198.50 an
economists' expectations. The last change in the keyounce. In the previous session, the precious metal
interest rate was in May 2009, when the bank cutrose $8.40 to $1,195.90 an ounce.
the rate by 25 basis points to the current level ofAmong currencies, the U.S. dollar is trading at 86.18
1%. The bank has lowered the key interest rate byyen compared to the 86.2705 yen it fetched at the
a total of three and a quarter percentage pointsclose of New York trading on Wednesday. Against
since early October 2008.the euro, the dollar is valued at $1.3184 compared to
U.S. Economic Newsyesterday's $1.3162.
The Labor Department said that first-time claims for