Sierra Trading Company

Aftermarket Movers: Starbucks Drips

NEW YORK (AP) - Starbucks Corp. saw its share price slip in extended trading Thursday on disappointing same-store sales. In the tech sector, revised guidance pushed down shares of semiconductor company PMC Sierra Inc. and software maker Business Objects SA.

The Seattle-based coffee chain reported higher revenue for the second quarter compared with the same period in 2005, but missed Wall Street estimates for same-store sales, or stores open for a year or more.

PMC Sierra CFO Krock to Depart

SANTA CLARA, Calif. — PMC Sierra Inc. said Thursday its chief financial officer and vice president Alan Krock will leave the company for personal reasons after a "reasonable transitional period."

The company also said it expects second-quarter sales at the midpoint of its prior guidance range of $108 million to $112 million, excluding revenue from its acquisition of Passave Inc. in May.

Forex - Dollar continues to suffer post-Fed fallout

The dollar continues to suffer from last week's relatively dovish policy statement from the US Federal Reserve and a recovery in risk assets, such as equities. Though the quarter point hike in the Fed funds rate to 5.25 pct was expected, the rate-setting Federal Open Market Committee cautioned about the outlook for growth. In response to the statement, the Fed funds futures now attach a 65 pct of another rate hike in August, down on 80 pct predicted before. 'Its accompanying statement, perceived as more dovish than expected, led to a decline in the dollar and a rally in equity markets,' said Ian Stannard, currency strategist at BNP Paribas. Though Stannard is 'dollar bearish', he said there is 'no reason yet to expect the dollar to fall out of bed', adding that this Friday's crucial US labour market report has the potential to help the US currency rebound.

(AFX UK Focus) 2006-07-06 10:01 GMT: FFastFill signs up unnamed new global bank client

LONDON (AFX) - Financial trading software servicing company Ffastfill PLC said it has won a contract with a global bank for its CME FX on the Reuters service, without naming the bank or giving financial details.

The service allows traders using Reuters Dealing 3000 service to also trade Chicago Mercantile Exchange's FX futures contracts.

This brings the number of major institutions using the service to eight, the company said. newsdesk@afxnews.com jc1/joy

COPYRIGHT

Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited

Forex - Dollar well-bid amid speculation of strong US labour ...

LONDON (AFX) - The dollar was well bid amid speculation that the crucial US labour market report due Friday will come in strong, in turn boosting expectations of an August rate hike. 'Expectations that a robust US employment report will ensure an August rate hike and renewed pressure on emerging market currencies and equities have created a more dollar supportive backdrop,' said Steve Pearson, chief currency strategist at HBOS. Yesterday the forecast from ADP Employer Services indicated that US companies added some 368,000 jobs in June. The robust ADP data pushed up expectations for the non-farm payrolls figure to above 200,000 from 160,000. In May only 75,000 jobs were created. 'Should this upbeat estimate be reflected in an equally strong print for tomorrow's labour payrolls release, then it is possible that any conclusions pertaining to the resumption of the dollar long-term downtrend may have to be temporarily postponed once more,' said Neil Mellor at the Bank of New York.

Dollar holds firm in thin US trade

The dollar held firm on Monday in spite of the US posting weak economic data while most other major trading blocs unveiled strong numbers.

The greenback did hit a three-week low of $1.2822 to the euro as it emerged that the US Institute of Supply Management's purchasing managers' index fell unexpectedly in June.

However, by mid-session New York trade the dollar was essentially unchanged on the day at $1.2793 to the euro, as well as firming 0.4 per cent to Y114.87 against the yen and 0.3 per cent to $1.8415 versus sterling.

Paul Mackel, senior currencies strategist at HSBC, attributed the dollar's resilience to the absence of many traders ahead of today's Independence Day holiday, meaning the reaction to the ISM data may be delayed until tomorrow.

Marc Chandler, head of global currency research at Brown Brothers Harriman, saw the dollar's uptick as "largely corrective" following a sell-off in the wake of last week's dovish Federal Reserve statement.