U.S. Treasury Auction; World Markets Up

123jump.com Staff
06 Apr, 2010
New York City

Fed minutes of meeting noted economic recovery may be hampered by high unemployment and tight lending conditions. The dollar, metals and commodities closed higher. Investors bid up U.S. Treasury $40 billion bond auction with the yield spreads tightening.

[R]5:30 PM New York – Fed minutes of meeting noted economic recovery may be hampered by high unemployment and tight lending conditions. The dollar, metals and commodities closed higher. Investors bid up U.S. Treasury $40 billion bond auction with the yield spreads tightening.[/R]

U.S. stocks edged lower and the euro declined. U.S. Treasury completed the sale of $40 billion of 3-year bonds today. Copper traded lower after rising to 20-month high but crude oil hovered near 17-month high.

Fed in its latest minutes of meeting said noted that while there are signs of economic recovery, high unemployment and tight lending conditions are likely to keep household spending constrained. Members of the committee sided to keep the rate unrevised and estimated that credit tightening at this time will has a higher risk than at a later date.

Massey Energy Company led the decliners in the S&P 500 index with a loss of 9.2%. Teekay Tankers Ltd announces public offering. CA Inc plans to cut 1,000 jobs. El Paso Corp receives FERC approval for Ruby Pipeline.

European markets closed higher but Greek benchmark index decreased 2%. Greek bond yields surged to 11-year high on the unfounded rumors that the nation is looking to change bailout terms with the EU and the IMF. SeaDrill Ltd of Norway surged on a new order. Renault SA and Daimler AG are in advanced talks to form a partnership and cross investments.

The UK benchmark index closed at a 21-month high and the pound declined 1%. UK Prime Minister Gordon Brown scheduled national election on May 6. Virgin Money attracts £100 million commitment from Wilbur Ross controlled fund.

Rising yen dragged shippers, electronics and automakers after rising for three days in a row. Index of economic conditions improved in February. U.S. regulators proposed to fine Toyota Motor of $16.4 million.

Resource stocks closed higher in Shanghai trading after international metals prices increased. Poly Real Estate Group Co acquires land parcel for $100 million. China Construction Bank Corp plans to raise as much as $11 billion.

Stocks in Mumbai closed flat as the rupee hovered near a 19-month high. International investors continue to add exposure to India stocks. NTPC Ltd, the largest power generator plan to invest $5 billion to quadruple capacity.

Reserve Bank of Australia raised its key lending rate by 25 basis points to 4.25%. Australian job ads rise 1.8% in March. Peabody revised its offer of Macarthur Coal to A$3.6 billion.

North American Markets

Dow Jones Industrial Average decreased 3.56 or 0.03% to close at 10,969.99, S&P 500 Index edged higher 2.00 or 0.2% to 1,189.44 and Nasdaq Composite Index added 7.28 or 0.30% to close at 2,436.81. Toronto TSX Composite Index decreased 29.64 or 0.2% to 12,156.71.

Latin American Markets Indexes

Mexico Bolsa Index increased 152.32 or 0.5% to 33,801.21 and Brazil Bovespa Stock Index decreased 194.04 or 0.27% to 71,095.65.

Europe Markets Review

In London FTSE 100 Index closed higher 35.46 or 0.62% to 5,780.35, in Paris CAC 40 Index increased 19.71 or 0.49% to close at 4,053.94, in Frankfurt DAX index higher 16.65 or 0.27% to close at 6,252.21. In Zurich trading SMI decreased 2.71 or 0.04% to close at 6,886.21.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 56.98 or 0.50% to 11,282.32, and CSI 300 index in China lower 2.20 or 0.06% to 3,405.14. ASX 200 index in Australia increased 46.00 or 0.94% to 4,953.70 and the FTSE Bursa KL Composite index in Malaysia was higher 2.62 or 0.20% to 1,344.37. Markets in Hong Kong were closed today.

The Kospi Index in South Korea increased 1.10 or 0.06% to close at 1,726.09. JSE Index in Indonesia decreased 6.28 or 0.22% to 2,880.97. The Sensex index in India increased 5.89 or 0.03% to 17,941.37. Markets in Thailand were closed today.

Commodities, Metals, and Currencies

Crude oil increased $0.16 to $86.78 a barrel for a front month contract, natural gas edged down 15 cents to $4.13 per mBtu and gasoline increased 0.08 cents to 235.10 cents.

Soybean future closed up 8.50 cent to $9.44 a bushel. Wheat futures increased 10.00 cents in Chicago trading to $4.77 a bushel. Sugar closed down 0.50 cents at 15.89 cents per pound.

Gold increased $1.70 in New York trading to close at $1,135.50 per ounce, silver closed down $0.14 to $17.97 per ounce and copper for the front month delivery decreased 0.60 cents to $3.62 per pound.

Dollar edged higher against euro to $1.339 and decreased against the Japanese yen to 93.73.

Yield on 10-year U.S. bonds closed higher at 3.95% and with 30-year maturities decreased at 4.83%.