Wheat Soars 8%; Indexes Fall in U.S., Europe

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

U.S. indexes fall after weekly jobless claims increase to three-month high. Wheat futures surged nearly 8% after Russia banned exports. The euro gained after the ECB President Trichet said that the economies in the Europe are recovering at a faster than estimate pace.

[R]4:00 PM New York – U.S. indexes fall after weekly jobless claims increase to three-month high to 479,000. Wheat futures surged nearly 8% after Russia banned exports as the nation struggles with worst drought in five decades. The euro gained after the ECB President Trichet said that the economies in the Europe are recovering at a faster than estimate pace.[/R]

U.S. stocks decline after weekly jobless claims rise 19,000 to 479,000. The Monster Employment Index falls in July. BP gets authorization for cementing procedure on leaking Gulf of Mexico well. Intel and FTC reach settlement on antitrust lawsuit.

Allstate Corp net dropped and the expense ratio in the quarter fell to 104%. Transocean receives $269 million in insurance recoveries. Pulte Home returns to quarterly profit in three years.

The European indexes declined after a rise in U.S. weekly jobless claims. The ECB holds key interest rate at 1%. Greece to receive €9 billon loan as economic recovery program is on track. German factory orders surge in June. Spanish industrial production eases in June.

The UK indexes slide after the BoE retained key rate at 0.5% and £200 billion bond purchase. The UK new car sales slump in July. Irish live register total rises in July. BP gets authorization to begin cementing procedure on MC252 well.

Stocks in Japan rallied to gain on faster-than-estimated growth in U.S. service industries. Office vacancy rate drops from a record high. Horiba plans to put up an emission testing plant in China.

Stocks in China declined after regulators asked banks to conduct stress test for a 60% decline in property prices. Auto sales continued to rise in July, though at a slower pace than in previous months. Cathay Pacific’s profit surges. Two plots of land sold in north Shanghai.

Stocks in Mumbai after trading higher through the day lost in the end to close lower. RIL agrees to buy its third shale-gas asset in the U.S. RCom hopes to roll out 3G facility by year end.

Stocks in Australia rallied ahead of results from Rio Tinto. Axa Asia Pacific stock halted as it still negotiates with ACC. Intoll gives Canada Pension Board one more week for due diligence. Victoria seeks private builders for its rail tunnel.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.318 and fell against the Japanese yen to 85.78.

Crude oil decreased $0.36 to $82.11 a barrel for a front month contract, natural gas edged lower 13 cent to $4.61 per mBtu and gasoline decreased 1.00 cent to 216.50 cents.

Gold increased $2.20 in New York trading to close at $1,198.10 per ounce, silver increased $0.07 to $18.35 per ounce and copper for the front month delivery decreased 5.50 cents to $3.34 per pound.

Yields on 10-year U.S. bonds decreased to 2.90% and on 30-year U.S. bonds declined to 4.05%.