U.S., World Markets Ease; Gold, Dollar Advance

123jump.com Staff
11 May, 2010
New York City

U.S. indexes and world markets cooled after more doubts arise on the EU bailout plan. Greece already tapped the emergency fund by the EU to pay for the bonds next week. Stocks traded higher but sold off in the late afternoon as the dollar and gold gained. Gold surged $33.

[R]4:30 PM New York – U.S. indexes and world markets cooled after more doubts arise on the EU bailout plan. Greece already tapped the emergency fund by the EU to pay for the bonds next week. Stocks traded higher but sold off in the late afternoon as the dollar and gold gained. Gold surged $33.[/R]

U.S. and world market indexes declined amid doubts whether the plan proposed by the EU and the IMF will be sufficient to revive the European economies. The dollar gained against all major currencies and crude oil traded near $76 a barrel and gold surged $33.

GameStop Corp led the decliners in the S&P 500 index with a loss of 13.8%. McDermott profit and sales declined. LDK Solar swings to profit . Fluor profit dips on lower oil and gas business. MBIA swings to net loss in first quarter.

European stocks fell amid concerns the proposed $1 trillion rescue package may not offer a long-term solution to the region''s fiscal woes. The euro fell to a 4-day low. Germany’s wholesale price index in April rises 6%. Deutsche Post AG profit rises 85%.

U.K. stocks weaken as doubts persist over the implementation of the European Union''s bailout package. Commodity stocks declined as metal and oil prices fall in London trading. Prime Minister Gordon Brown resigned as David Cameron works to build an alliance with Liberal Democratic Party. The UK output rises 2.0% in March.

Stocks in Japan closed lower after Mizuho Financial plans to raise as much as $11 billion. Investors also worried that a rising inflation in China will crimp exports to the fastest growing economy in the world. Bank of Japan stops injecting funds into the market. Japan’s government debt rises to 883 trillion yen.

Stocks in China region declined after inflation accelerated in April. Producer and consumer prices gained and new lending remained elevated. Property prices in the month soared 12.8% in the month. Hong Kong land auction was completed at 33% discount to the assessed value.

Stocks in Mumbai traded lower after a surge tracking global markets rebound. The ongoing 3G spectrum auction prices reached a record $1.4 billion. Exports in March soared 54%, fifth monthly increase in a row but declined 4.7% in the fiscal year ending in the month.

Stocks in Australia declined on the prospects of higher tax on mining companies. Investors also focused on rising inflation in China and surmised that the latest $1 trillion bailout to EU member nations may not be enough. Asciano group expects A$1.1 billion write down.

North American Markets

Dow Jones Industrial Average dropped 36.88 or 0.4% to close at 10,748.26, S&P 500 Index fell 3.94 or 0.3% to 1,155.79 and Nasdaq Composite Index added 0.64 or 0.03% to close at 2,375.31. Toronto TSX Composite Index added 48.95 or 0.4% to 11,996.85.

Latin American Markets Indexes

Mexico IPC Index decreased 124.22 or 0.4% to 32,152.70 and Brazil Bovespa Stock Index fell 825.12 or 1.3% to 64,627.56.

Europe Markets Review

In London FTSE 100 Index closed lower 103.63 or 1.92% to 5,283.79, in Paris CAC 40 Index decreased 67.61 or 1.82% to close at 3,652.68, in Frankfurt DAX index lower 43.85 or 0.73% to close at 5,974.06. In Zurich trading SMI decreased 20.78 or 0.32% to close at 6,461.17.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 119.60 or 1.14% to 10,411.10, Hang Seng index in Hong Kong decreased 280.13 or 1.37% to 20,146.51 and CSI 300 index in China lower 57.42 or 2.01% to 2,800.82. ASX 200 index in Australia decreased 51.80 or 1.13% to 4,548.00. The FTSE Bursa KL Composite index in Malaysia closed higher 6.75 or 0.51% to 1,340.72.

The Kospi Index in South Korea decreased 7.39 or 0.44% to close at 1,670.24. SET index in Thailand closed lower 6.97 or 0.89% to 772.09 and JSE Index in Indonesia decreased 37.54 or 1.32% to 2,812.89. The Sensex Index in India decreased 189.02 or 1.09% to 17,141.53.

Commodities, Metals, and Currencies

Crude oil decreased $0.76 to $76.04 a barrel for a front month contract, natural gas edged down 2 cents to $4.15 per mBtu and gasoline increased 1.76 cents to 219.02 cents.

Soybean future closed up 5.00 cent to $9.66 a bushel. Wheat futures increased 0.50 cents in Chicago trading to $4.93 a bushel. Sugar closed down 0.27 cents at 13.91 cents a pound.

Gold increased $32.30 in New York trading to close at $1,233.10 an ounce, silver closed up $0.78 to $19.34 per ounce and copper for the front month delivery decreased 5.90 cent to $3.16 per pound.

Dollar edged higher against euro to $1.268 and dropped against the Japanese yen to 92.73.

Yield on 10-year U.S. bonds decreased to 3.53% and with 30-year maturities increased to 4.43%.