U.S., Global Stocks, Gold Rise

Mayank Mehta, Chandrasekhar Atreya and Sanjay Barot
18 Jun, 2010
New York City

U.S. stocks traded sideways as global markets remain flat. BP Plc management faced penetrating questions about its safety record in the Gulf of Mexico as U.S. lawmakers increase pressure on the oil giant. Commodities traded mixed and gold raced to record high.

[R]4:00 PM New York – U.S. stocks traded sideways as global markets remain flat. BP Plc management faced penetrating questions about its safety record in the Gulf of Mexico as U.S. lawmakers increase pressure on the oil giant. Commodities traded mixed and gold raced to record high.[/R]

U.S. stocks trade sideways as global markets retain positive bias. Private equity fund controlled by KKR agrees to buy Japanese recruitment firm Intelligence for $356 million.

European markets continue to rise after eight sessions of straight gains. German producer prices rise 0.3% in May. Spanish bank Banco Santander’s UK affiliate bids for about 300 RBS branches.

The UK indexes rose on optimistic economic data. The broadest measure of money supply decreased by £15.1 billion and public sector net borrowing declined to £16 billion in May. UK gross mortgage lending increased 7% in May.

BP Plc faces harsh criticism from U.S. lawmakers at a hearing and may lose as much as one third of drilling, refining and distribution assets in the Gulf of Mexico.

Stocks in Japan fell after stricter loan rules came into effect from today. The ruling party of Japan releases its election manifesto. Minutes of the meeting held by Bank of Japan on May 20 noted European markets instability.

Hong Kong stocks continued its rally to the eighth day after a Spanish bond sale ease concerns about Euro-zone debt crisis. World Bank releases its quarterly report on China. Strike extends to a parts plant of Toyota in China. China Vanke says no change in development plans.

Stocks in Mumbai fluctuated and traded marginally lower. Cognizant acquires Galileo Performance. Ahluwalia Contracts India receives 11 new projects worth $110 million. Brigade Enterprises surges on fund raising plan.

Stocks in Australia rallied after a bond sale by Spain eased concerns about Europe’s debt crisis. Cockatoo Coal expects funding approval for export terminal at Gladstone port in the second half of the year. Montara oil spill report is received by Resources Minister. PanAust discovers high grade gold at Tharkhek prospect in Laos.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 4.38 or 0.04% to 9,995.02, Hang Seng index in Hong Kong increased 148.31 or 0.74% to 20,286.71 and CSI 300 index in China lower 46.57 or 1.70% to 2,696.17. ASX 200 index in Australia increased 24.60 or 0.54% to 4,551.90. The FTSE Bursa KL Composite index in Malaysia closed higher 13.22 or 1.01% to 1,317.69.

The Kospi Index in South Korea increased 4.03 or 0.24% to close at 1,711.95. SET index in Thailand closed higher 2.51 or 0.32% to 791.85 and JSE Index in Indonesia increased 38.49 or 1.33% to 2,929.59. The Sensex index in India decreased 45.87 or 0.26% to 17,570.82.

Europe Markets Review

In London FTSE 100 Index traded higher 13.58 or 0.26% to 5,267.47, in Paris CAC 40 Index traded increased 12.07 or 0.33% to close at 3,695.15, in Frankfurt DAX Index traded higher 16.68 or 0.27% to close at 6,240.22. In Zurich trading SMI Index traded decreased 10.60 or 0.16% to close at 6,464.65.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.2360 and decreased against the Japanese yen to 90.72.

Crude oil increased $0.39 to $77.18 a barrel for a front month contract, natural gas edged lower $0.15 cent to $5.01 per mBtu and gasoline decreased 1.42 cents to 214.98 cents.

Gold increased $10.10 in New York trading to close at $1,258.80 per ounce, silver closed lower $0.006 to $18.77 per ounce and copper for the front month delivery decreased 1.8 cents to $2.906 per pound.

Yields on 10-year U.S. bonds increased to 3.22% and on 30-year U.S. bonds increased to 4.15%.