World Markets Gyrate; Positive Earnings

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

Stocks in New York traded sideways and the dollar gained as investors worry of the rising risks of sovereign debt default in Europe. Positive earnings from Apple, Morgan Stanley were overshadowed by a weakness in earnings at drug companies.

[R]4:15 PM New York – Stocks in New York traded sideways and the dollar gained as investors worry of the rising risks of sovereign debt default in Europe. Positive earnings from Apple, Morgan Stanley were overshadowed by a weakness in earnings at drug companies.[/R]

Stocks in New York looked for a direction after gyrating all day. Positive earnings from Morgan Stanley and Apple Inc lifted stocks in financial services and technology sector.

KeyCorp, Huntington Bancshares Inc and other banks reported higher earnings. Wells Fargo profit falls on integration and credit costs. Abbott reports lower first quarter net and blamed the recent health care reform for future lower profits.

Boeing quarterly profit falls 15%. AT&T profit drops 21%, but wireless division report strong results. Quest Diagnostics net off 3% on flat revenue. Morgan Stanley quarterly profit triples as fixed income trading revenues surges.

European markets closed lower as Greece negotiated terms of emergency loans with the EU and the IMF. Market indexes in Greece, Portugal and Spain fell sharply after the IMF voiced its concern about the rising sovereign debts. Accor sales beat estimates on revival of hotel demand. Volkswagen profit climbs 95%.

Air travel in northern Europe picked up after London and other airports reopened.

Stocks in U.K. traded lower with jittery investors withdrawing on commodity prices. The gross domestic product for U.K. estimated to rise 1.3% in 2010, according to the International Monetary Fund. Autonomy Corp. plc posts record revenue and profit. The Game Group CEO steps down as profits slump.

Deutsche Bahn AG is close to acquiring Arriva Plc for 1.6 billion pounds or $2.5 billion according to several media reports in Germany and UK. The formal announcement is expected to be made as early as tomorrow.

The benchmark indexes in Tokyo closed higher on the rising expectations of earnings and positive assessment of the regional economies. Ahead of the busy earnings season from next week, the indexes closed at six week high. Elpida Memory posts first profit in three years.

The market indexes in China region closed mixed ahead of earnings season. Chinalco swung to net profit in the latest quarter and Huaneng Power first quarter net profits soared 41%.

Stocks in Mumbai gyrated ahead of weather forecast this week and the government auction of $2.7 billion debt. Reserve Bank of India governor Subbarao left the door open for interest rate change ahead of the next scheduled meeting in two months.

The benchmark index in Australia closed higher tracking gains in the international markets. Resource stocks closed higher with the rise in commodities prices. The Australian dollar edged up and gained 0.9% in two days. The index of leading indicators estimated expanding economy.

North American Markets

Dow Jones Industrial Average gained 7.86 or 0.07% to close at 11,124.92, S&P 500 Index edged lower 1.23 or 0.1% to 1,205.94 and Nasdaq Composite Index added 4.30 or 0.2% to close at 2,504.61. Toronto TSX Composite Index rose 4.65 or 0.04% to 12,118.18.

Latin American Markets Indexes

Mexico Bolsa Index fell 282.13 or 0.8% to 33,531.03 and Brazil Bovespa Stock Index gained 220.86 or 0.3% to 69,318.44.

Europe Markets Review

In London FTSE 100 Index closed lower 42.24 or 0.73% to 5,741.45, in Paris CAC 40 Index decreased 22.86 or 0.57% to close at 4,003.79, in Frankfurt DAX index lower 9.75 or 0.16% to close at 6,254.48. In Zurich trading SMI decreased 21.31 or 0.31% to close at 6,820.60.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 189.37 or 1.74% to 11,090.05, Hang Seng index in Hong Kong decreased 112.45 or 0.52% to 21,510.93 and CSI 300 index in China higher 63.30 or 1.99% to 3,236.68. ASX 200 index in Australia increased 28.50 or 0.58% to 4,954.30. The FTSE Bursa KL Composite index in Malaysia closed lower 2.26 or 0.17% to 1,333.64.

The Kospi Index in South Korea increased 29.55 or 1.72% to close at 1,747.58. SET index in Thailand closed lower 7.91 or 1.03% to 757.85 and JSE Index in Indonesia increased 21.56 or 0.75% to 2,912.83. The Sensex index in India increased 11.98 or 0.07% to 17,472.56.

Commodities, Metals, and Currencies

Crude oil decreased $0.17 to $83.68 a barrel for a front month contract, natural gas edged down 1 cent to $3.97 per mBtu and gasoline increased 0.49 cents to 228.58 cents.

Soybean future closed up 12.00 cent to $10.06 a bushel. Wheat futures increased 1.25 cents in Chicago trading to $4.99 a bushel. Sugar closed up 0.09 cents at 16.69 cents per pound.

Gold increased $8.40 in New York trading to close at $1,147.60 per ounce, silver closed up $0.27 to $18.09 per ounce and copper for the front month delivery increased 0.95 cents to $3.54 per pound.

Dollar edged higher against euro to $1.339 and increased against the Japanese yen to 93.17.

Yield on 10-year U.S. bonds declined to 3.74% and with 30-year maturities fell to 4.61%.