S&P Up 2.2%; World Markets Soar

123jump.com Staff
03 Aug, 2010
New York City

U.S. stocks surged after the latest report in manufacturing industry and construction spending and positive earnings. Market indexes traded as high as 2.1% and crude oil rallied. The dollar edged lower against the pound and the euro. Earnings from HSBC, BNP Paribas and Humana lifted sentiment.

[R]4:00 PM New York – U.S. stocks surged after the latest report in manufacturing industry and construction spending and positive earnings. Market indexes traded as high as 2.1% and crude oil rallied. The dollar edged lower against the pound and the euro. Earnings from HSBC, BNP Paribas and Humana lifted sentiment in U.S. and Europe.[/R]

U.S. stocks surged on better-than-estimated earnings and latest read on manufacturing industry. BP establishes $100 million fund and prepares to permanently seal oil well in the Gulf of Mexico. Geely completes the purchase of Volvo Car Corp. for $1.8 billion. The UAE joins Bahrain and India and may suspend BlackBerry messaging services from October.

U.S. stocks traded sharply higher after manufacturing expanded and positive earnings reports. S&P 500 index extended gains of 6.9% in July by another 1.6%. Banks traded higher in the U.S. and in Europe after HSBC reported pre-tax profit doubled.

The European markets surge after BNP Paribas and HSBC reported upbeat results. Euro-zone and German manufacturing indexes rise to a three-month high but the index for France drops to 10-month low in July. Swiss retail sales fall in June.

The UK indexes soar after HSBC first-half profit more than doubles. The UK manufacturing index dips in July. Irish manufacturing sector slows in July. BP establishes $100 million fund through Baton Rouge Foundation and is gearing to permanently seal ruptured oil well in the Gulf of Mexico.

Stocks in Japan gained on earnings outlook. Former central bank deputy governor said targeting inflation is not the correct way to end deflation. Monthly wages rises in June. Sales of cars, trucks and buses rise 15% in July from a year earlier led by Toyota Motor and Honda Motor Co.

Stocks in China region rose extending the best monthly gain in one year on policy outlook. China overtakes Japan as the world’s second-largest economy. Survey finds business conditions stable in July. Manufacturing activity grew at a slower pace in July. Steel mills are expected to lose on the rising materials costs in the second half.

Stocks in Mumbai gained the most in a month and a half led by the positive results of ICICI Bank. SEBI allows currency options on dollar-rupee exchange rate direction. Consumer Price Index for industrial workers rises in June. Berger Paints expands to double capacity.

Stocks in Australia traded higher on strong earnings outlook. Housing boom slows in June. Manufacturing activity picks momentum in July. Most exporters do not use hedging as a tool as they expect the Aussie dollar to trade high.

Commodities, Currencies and Yields

Dollar edged lower against euro to $1.317 and fell against the Japanese yen to 86.50.

Crude oil increased $2.48 to $81.43 a barrel for a front month contract, natural gas edged lower 0.21 cent to $4.72 per mBtu and gasoline increased 5.01 cent to 217.25 cents.

Gold increased $0.20 in New York trading to close at $1,184.10 per ounce, silver added $0.39 to $18.40 per ounce and copper for the front month delivery increased 7.50 cents to $3.38 per pound.

Yields on 10-year U.S. bonds increased to 2.96% and on 30-year U.S. bonds added to 4.06%.