U.S. Indexes Up; Optimism in World Markets

123jump.com Staff
27 Jul, 2010
New York City

U.S. stocks struggled to advance after consumer confidence declined. Treasury auction drew higher than expected interest, however short and long term yields rose. BP Plc estimated $32 billion in costs related to the Gulf of Mexico oil spill and announced $30 billion in asset sale.

[R]4:00 PM New York – U.S. stocks struggled to advance after consumer confidence declined. Treasury auction drew higher than expected interest, however short and long term yields rose. BP Plc estimated $32 billion in costs related to the Gulf of Mexico oil spill and announced $30 billion in asset sale.[/R]

U.S. stocks struggled to reach higher ground after consumer confidence index declined and larger European banks reported better-than-expected earnings. A controversial index of metropolitan index of home prices also increased 4.6% in May from a year ago month.

Latest Treasury auction received more than expected bids even though long term yields increased.

BP Plc appointed Robert Dudley as its chief executive replacing Tony Hayward and declared $30 billion worth of assets sale. The Basel Committee finalized capital and liquidity reform only after watering down stringent proposals.

Advanced Semiconductor Engineering, Inc. led gainers in the S&P 500 index with a surge of 20.7%. Arch Capital quarterly net income jumps. Fluor posts lower profit and lifts outlook. Legg Mason quarterly net income slips 4%. CIT profit up 46% and debt reduced. Office Depot second quarter loss narrows. U.S. Steel declined as much as 7% after it reported quarterly loss on the account of loan loss to European operation.

European stocks surged after upbeat earnings from UBS and Deutsche Bank and watered down agreement at Basel Committee. German consumer confidence index gained. SAP AG reported quarterly net surged 15%. Euro-zone private sector credit growth improves and M3 money supply rises in June. Swedish PPI increases in June.

The UK indexes climb after European banks report positive earnings. BP Plc appointed Robert Dudley as its chief executive officer but posts $17 billion loss in the second quarter and plans to sell $30 billion of assets. Onex and Canada Pension Plan agreed to buy Tomkins Plc for $4.5 billion.

Stocks in Japan closed marginally lower and banks gained and yen traded at elevated level. Yahoo Japan and Google are in talks to partner for Internet search and ad business. Japan gives a $149 million loan to Kenya to build rice farms.

Stocks in China fell for the first time in seven days on report that banks may suffer losses in infrastructure loans. Zijing trading remains suspended for the second day. Everbright Bank gets approval for IPO. Weekly sales of homes in Shanghai surges 44%.

Reserve Bank of India lifted rates and said it will provide economic assessment every six weeks. Stocks in Mumbai traded higher. MakeMyTrip.com plans to raise $100 million through a listing in the U.S. Hospital operator, Fortis decided to sell its minority stake in Singapore based Parkway ending two-month takeover battle.

Rupee in Mumbai trading gained after the central bank reassured economic growth target and lifted interest rates.

Stocks in Australia gained helped by banks. Macarthur terminates venture agreement with China’s Citic. Chevron hopes to get environmental clearance for its Wheatstone project in 2011. Gas leak at Caltex refinery in Kurnell has not halted production.

Commodities, Currencies and Yields

Dollar edged lower against euro to $1.299 and fell against the Japanese yen to 87.90.

Crude oil decreased $1.39 to $77.59 a barrel for a front month contract, natural gas edged higher 7 cent to $4.68 per mBtu and gasoline decreased 4.08 cent to 206.50 cents.

Gold decreased $24.00 in New York trading to close at $1,163.00 per ounce, silver fell $0.56 to $17.63 per ounce and copper for the front month delivery decreased 1.80 cents to $3.20 per pound.

Yields on 10-year U.S. bonds closed increased to 3.05% and on 30-year U.S. bonds added to 4.08%.