ARTICLES MODERN

World stock markets hit new year trading Friday as brightly indices in Europe and Asia have increased, although trading volumes remained light with many traders do not return to their offices until next week.
The FTSE 100 index of leading British shares was up 39.70 points, or 0.9 percent, to 4473.87, while Germany DAX was 68.80, or 1.4 percent, higher at 4878.00. France the CAC-40 rose 41.90 points, or 1.3 percent, to 3259.87.
Previously, Hong Kong’s Hang Seng Index led Asian markets that were open higher, vaulting 655.33 points, or 4.6 percent, to 15042.81. More than half of Asian markets, including Japan’s Nikkei, remained.
Investors remained skeptical that Friday’s Rally augurs well, if anything, about the prospects for 2009 after last year’s hefty rout.
Multe”va fail to start the first trading session of 2009 with a bang but any direction would be significantly hard to come by,’’said Jimmy Yates, a dealer at CMC Markets.

Lively tone at the top in Europe and Asia was largely expected to carry through in the U.S. opening session of the year. Futures markets were estimating that the Dow Jones industrial average would open 87 points, or 1.0 percent, higher at 8727, but that broader Standard & Poor’s 500 index would dip 5.4 points to 894.70.

Despite a pretty good year, which ends in several actions on the world markets, many investors remain pessimistic about the world economy as a whole. After one of the best years ever for action at the global level, many expect volatility to remain the game for some time to come, especially early in the new year will likely be dominated by mounting economic gloom and massive loss of jobs.

What was difficult Friday stressed state of the world economy.

In Asia, Singapore said Friday the economy shrank by an annualized rate of 12.5 percent in the fourth quarter of 2008, while China has the production sector, which represents 43 percent of the economy contracted for a the fifth straight month of December. Meanwhile South Korea, Asia-fourth largest economy, has suffered a trade deficit in 2008 - its first in a decade.

And in Europe, manufacturing activity contracted for the seventh month running in December for the euro area countries, which fall under sharpest rate for at least 11 years, according to the monthly index of purchasing managers for the euro area.

And in Britain, house prices fell in 2008 at the fastest rate of at least 25 years, the biggest  HBOS said. Elsewhere, the Chartered Institute of Purchasing and Supply reported that the UK manufacturing sector, which represents about 15 percent of the total economy, has suffered its second month of 1992, the worst in December .

”It is regrettable that today’s headlines serve as a sad reminder of synchronous downturn underway in the global economy,’’said Neil Melle, analyst at Bank of New York Mellon.

Elsewhere in Asia, South Korea Kospi added 2.9 percent to 1157.40, Singapore reference rose 3.9 percent, and the Mumbai Sensex traded 0.6 percent higher. Australia was slightly lower.

Markets in Japan, China, Taiwan, Indonesia, Philippines, Thailand and New Zealand were closed.

Oil prices eased further, with light, sweet crude for February delivery down $ 2.82 to $ 41.78. The contract rocketed on New Year’s resolve to $ 5.57 higher at $ 44.60.

In currencies, the dollar strengthened 0.4 percent to 91.14 yen while the euro was 0.4 percent lower at 1.3931 dollars.