U.S. Indexes Fall; Bond Yields Near Lows

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

U.S. stocks turned lower amid mixed economic data and growing worries related to the euro-zone. Jobless claims declined at the end of last week and durable goods orders increased excluding volatile transportation orders. U.S. Treasury sold $108 billion of notes as yields hover near record lows.

[R]4:00 PM New York – U.S. stocks turned lower amid mixed economic data and growing worries related to the euro-zone. Jobless claims declined at the end of last week and durable goods orders increased excluding volatile transportation orders in May. Markets in Europe declined as Greece, Spain and Portugal debts were in focus again.[/R]

U.S. stocks trade lower as Greek credit default swap rose and investors worried that a removal of economic stimulus in the region may affect global revival. U.S. weekly jobless claims fall by 19,000 and durable goods orders decline 1.1% in May. Total SA and Amyris partner to develop biomass-based fuels and chemicals. Pioneer signs $1.15 billion joint venture deal with India based Reliance Industries.

European markets fluctuate after moderate U.S. economic data and on worries concerning the euro area sovereign debt crisis. Euro-zone industrial new orders rise 0.9% in April. French consumer spending grows 0.7% in May.

The UK indexes remain sluggish after renewed skepticism on global economic recovery. Ireland trade surplus remains flat in April. Resolution agrees to buy AXA UK Life business for £2.75 billion.

Stock indexes in Japan were nearly flat in a choppy trading. Export growth slows for the third month in May to 32%. Nissan Motor has faces another strike at its China parts unit. Toyota further localizes North American manufacturing leadership. Sony-Ericsson releases cut price model for Android phone.

Stocks in China and Hong Kong China closed lower in a volatile trading. Wuhan Iron signs a deal with Riversdale of Australia to develop a coking coal mine in Mozambique. China Merchants Bank prepared for 30% drop in home prices. Total SA and PetroChina may jointly develop Sulige Gasfield.

Stocks in Mumbai traded lower. Wholesale price index rises by 0.6% for the week. Vishal Retail rose after entering into a deal with TPG. NTPC disqualifies L&T tender bid. National Stock Exchange begins futures trading for copper and zinc.

Julia Gillard takes oath as the first woman Prime Minister of Australia after Kevin Rudd lost his party’s support. Prime Minister Gillard said she will have talks with the miners on the super profit tax. Australian shares turn negative at close.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 4.64 or 0.05% to 9,928.34, Hang Seng index in Hong Kong decreased 123.12 or 0.59% to 20,733.49 and CSI 300 index in China lower 1.00 or 0.04% to 2,757.50. ASX 200 index in Australia decreased 6.40 or 0.14% to 4,479.70. The FTSE Bursa KL Composite index in Malaysia closed lower 3.83 or 0.29% to 1,325.87.

The Kospi Index in South Korea increased 14.05 or 0.81% to close at 1,739.87. SET index in Thailand closed lower 13.33 or 1.65% to 793.19 and JSE Index in Indonesia decreased 10.70 or 0.37% to 2,914.10. The Sensex index in India decreased 25.70 or 0.14% to 17,730.24.

Europe Markets Review

In London FTSE 100 Index traded lower 85.73 or 1.66% to 5,092.79, in Paris CAC 40 Index traded decreased 96.42 or 2.65% to close at 3,545.37, in Frankfurt DAX Index traded lower 104.58 or 1.69% to close at 6,099.94. In Zurich trading SMI Index traded decreased 64.07 or 1.00% to close at 6,317.78.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.232 and fell against the Japanese yen to 89.51.

Crude oil increased $0.09 to $76.44 a barrel for a front month contract, natural gas edged lower $0.04 cent to $4.76 per mBtu and gasoline increased 0.89 cent to 209.12 cents.

Gold increased $11.00 in New York trading to close at $1,245.80 per ounce, silver closed higher $0.21 to $18.71 per ounce and copper for the front month delivery increased 6.35 cents to $3.01 per pound.

Yields on 10-year U.S. bonds increased to 3.11% and on 30-year U.S. bonds added to 4.08%.