U.S. Retail Sales Offer Hope; Euro Adrift

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

Same store retail sales surged the most in March in eleven years. The stocks reversed earlier losses to close higher bucking the weakness in world markets. Euro traded volatile but firmed at close. U.S. Treasury completed a 30-year bond auction to raise $13 billion.

[R]5:15 PM New York – Same store retail sales surged the most in March in eleven years. The stocks reversed earlier losses to close higher bucking the weakness in world markets. Euro traded volatile but firmed at close. U.S. Treasury completed a 30-year bond auction to raise $13 billion.[/R]

U.S. stocks closed higher after weekly jobless claims increased, average same store retail sales increased 9% and central banks in Europe and UK left interest rates on hold.

U.S. Treasury completed its final bond auction today to raise $82 billion. Today’s auction of $13 billion drew yield of 4.77% on 30-year bonds. Yesterday, 10-year bond auction that raised $21 billion drew strong interest from investors

European Central Bank left its key rate at 1% and President Trichet stressed that Greece is not likely to default. Greek bond yields increased.

Same store sales in March at 31 retail chains increased average 9% according to the latest data released by the International Council of Shopping Centers. Gap Inc sales soared 11% and Target sales surged 10%. Abercrombie & Fitch sales increased 5%.

U.S. Airways soared 18% on the merger talks with UAL Ltd, the parent of United Airlines.

Ongoing Greek default worries occupied investors in European trading. European Central Bank left its key lending rate at 1% and President Trichet asserted that Greece is not likely to default. After the close Greece said first quarter deficit plunged 40%.

Bank of England left its key lending rate at 0.5% and also kept its asset purchase plan in place. UK production output in February fell by 0.1% from a year ago. Weak commodities dragged the market index lower at close. Marks & Spencer declined after company issued cautious outlook.

Japan’s machinery orders unexpectedly fall 0.4% in February. Current account surplus soars 29.6% in the month. Bankruptcy in 2009 declined 8.7%.

Stocks in Mumbai closed lower after inflation hovered near two-decade high for the second week in a row. Essar Energy is planning to raise $2.5 billion through a listing on London Stock Exchange. JK Paper plans to expand capacity.

Australia’s employment increased 0.2% in March and unemployment stayed at 5.3% and full-time employment advanced 30,100 to 7.691 million offset by a fall in part-time employment by 10,600 to 3.297 million.

North American Markets

Dow Jones Industrial Average increased 29.55 or 0.3% to close at 10,927.07, S&P 500 Index edged higher 3.99 or 0.3% to 1,186.44 and Nasdaq Composite Index added 5.65 or 0.2% to close at 2,436.81. Toronto TSX Composite Index increased 2.63 or 0.02% to 12,113.53.

Latin American Markets Indexes

Mexico Bolsa Index decreased 65.00 or 0.2% to 33,567.35 and Brazil Bovespa Stock Index added 991.84 or 1.4% to 71,784.78.

Europe Markets Review

In London FTSE 100 Index closed lower 51.33 or 0.89% to 5,710.73, in Paris CAC 40 Index decreased 48.78 or 1.21% to close at 3,978.19, in Frankfurt DAX index lower 53.12 or 0.85% to close at 6,169.29. In Zurich trading SMI decreased 47.19 or 0.69% to close at 6,796.30.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 124.63 or 1.10% to 11,168.20, and Hang Seng index in Hong Kong decreased 61.73 or 0.28% to 21,867.04, and CSI 300 index in China lower 40.20 or 1.19% to 3,346.74. ASX 200 index in Australia increased 23.00 or 0.46% to 4,937.90 and the FTSE Bursa KL Composite index in Malaysia was lower 12.16 or 0.90% to 1,332.93.

The Kospi Index in South Korea increased 7.18 or 0.42% to close at 1,733.78. SET index in Thailand closed lower 28.70 or 3.53% to 783.93. JSE Index in Indonesia decreased 47.75 or 1.65% to 2,850.83. The Sensex index in India decreased 255.62 or 1.42% to 17,714.40.

Commodities, Metals, and Currencies

Crude oil decreased $0.38 to $85.50 a barrel for a front month contract, natural gas edged down 8 cents to $3.94 per mBtu and gasoline decreased 1.42 cents to 230.05 cents.

Soybean future closed down 6.00 cent to $9.46 a bushel. Wheat futures decreased 6.25 cents in Chicago trading to $4.82 a bushel. Sugar closed down 0.24 cents at 15.92 cents per pound.

Gold decreased $1.90 in New York trading to close at $1,151.10 per ounce, silver closed down $0.11 to $18.09 per ounce and copper for the front month delivery decreased 1.30 cents to $3.58 per pound.

Dollar edged higher against euro to $1.336 and decreased against the Japanese yen to 93.41.

Yield on 10-year U.S. bonds closed higher at 3.89% and with 30-year maturities closed unchanged at 4.75%.