World Indexes Flirt With Lows

Bikram Pandey
25 Aug, 2010
New York City

U.S. stocks traded sideways after new homes sales plunged and durable goods rose less than estimated. U.S. indexes are down 13% from the highs in April and index in Japan is down more than 22%. European indexes decline as economic recovery prospects abate. The dollar and oil close higher.

[R]4:00 PM New York – U.S. stocks traded sideways after new homes sales plunged and durable goods rose less than estimated. U.S. indexes are down 13% from the highs in April and index in Japan is down more than 22%. European indexes decline as economic recovery prospects abate. The dollar edged higher and crude oil closed up.[/R]

U.S. stocks and indexes traded sideways after new home sales plunged and durable goods orders rose 0.3% in July. Mortgage refinancing activities index rose to a 15-year high.

AMR Corp, the parent of American Airlines dropped 5% after mechanics union decide to strike. Toll Brothers gained after it reported unexpected profit. VeriFone Systems Inc surged 8% after it lifted annual outlook.

Adani Enterprises announced a $1.65 billion deal with the Indonesian government and PT Bukit Asam for setting up a rail and port infrastructure for sourcing coal to India.

American Eagle Outfitters net plunged 65%. Barnes & Noble, Inc first quarter sales increased 21% swung to net loss. BHP Billiton fiscal year net doubled. Toll Brothers swung to a quarterly net profit.

The European indexes dropped after weak economic data in the U.S. German building industry orders climbed in June and business confidence rose in August. Spain’s producer prices increased 3.2% in July.

The UK indexes traded lower after the rating agency downgraded Ireland’s sovereign debt rating. Irish factory gate prices slackened in July. SpiriTel secured £5 million contract from Punch Taverns. Tullow Oil first half sales increased 11%.

Stocks continue to slide deeper in bear territory in Tokyo as the yen advanced. Exports growth in July slowed but trade surplus soared as much as 120%. Mitsubishi joins shale gas development project in Canada.

Stocks in China dropped following weak international sentiment. China now accounts for 59% broadband connections in Asia Pacific. Chalco reported a loss in first quarter and plans to expand into other mineral areas. Cosco Pacific first half net surged 82%.

Stocks in Mumbai traded down tracking losses in Asia and world markets. Reliance Insurance said its asset under management crossed $3 billion. Orissa government may give alternate bauxite mines for Vedanta refinery. Adani agrees to build a rail line in Sumatra for $1.6 billion.

Stocks in Australia fell as neither party won a clear majority in the election also weak home sales in the U.S. dragged international markets lower. BHP Billiton profit nearly doubled. Total construction work done rose in the quarter to June.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.265 and gained against the Japanese yen to 84.80.

Crude oil increased $0.95 to $72.58 a barrel for a front month contract, natural gas edged lower 16 cents to $3.88 per mBtu and gasoline increased 1.80 cents to 186.74 cents.

Gold increased $7.40 in New York trading to close at $1,240.80 per ounce, silver increased $0.54 to $18.97 per ounce and copper for the front month delivery decreased 1.20 cents to $3.25 per pound.

Yields on 10-year U.S. bonds increased to 2.54% and on 30-year U.S. bonds yields gained 3.54%.