U.S. Stocks, Dollar Rise; European Indexes Weak

123jump.com Staff
15 Sep, 2010
New York City

U.S. stocks recovered from the early losses after mixed economic reports and Japan intervened in the currency markets. U.S. dollar rose against the yen more than 3% after $16 billion intervention. European markets fell after inflation slowed in the month and employment static in the quarter to June.

[R]4:00 PM New York – U.S. stocks recovered from the early losses after mixed economic reports and Japan intervened in the currency markets. U.S. dollar rose against the yen more than 3% after $16 billion intervention. European markets fell after inflation slowed in the month and employment static in the quarter to June.[/R]

U.S. stocks traded sideways but closed higher after import prices rose 0.6% in August and mortgages applications fell for a second week in a row. Prices rose 4.1% from a year ago and gained at the slowest annual pace since November 2009.

Industrial production in the month increased 0.2% from the downward revised increase of 0.6% gain July. However, production surged 6.2% from a year ago.

ACE agreed to acquire Rain and Hail for $1.1 billion. HealthSouth reaffirmed its annual earnings outlook.

AK Steel plunged more than 5% after the company revised third quarter operating loss. Beazer Homes declined after it lowered home sales and lot improvement spending outlook. Cisco plans to initiate dividend. Genpact Ltd surged on the buyout rumors.

The European indexes declined after euro-zone inflation slowed in August and employment remained static in the second quarter. The OECD urged Turkey for withdrawal of monetary stimulus. The IMF noted Greek fiscal consolidation program on track.

The UK indexes weakened after jobless claims rose in August. The BoE Governor Mervyn King reiterated that government’s commitment to lower budget deficit is necessary to sustain confidence. Next plc first-half revenue rose 5% to £1.59 billion. India formalized discontinuance of British aid from next April.

Stocks in Japan surged more than 2% after the government intervened in the foreign exchange market. Prime Minister Kan plans to reshuffle the cabinet and change the DPJ executives later this week. Convenience store operator Lawson plans to open 130 stores in China.

Stocks in China fell but in Hong Kong gained marginally. Foreign direct investment in China surged 18% to $66 billion. Exchange of new car for old program lifted auto sales in the first eight months.

Stocks in India continued to rally for the seventh day in a row. Cairn India seeks approval from shareholders for Vedanta deal in its AGM. Indirect tax collections surge 45% in the first five months of this fiscal.

Stocks in Australia rallied to a four-month high following Japanese intervention to stem the surging yen. Consumer confidence index declined in September. June quarter saw the largest jump of new dwellings in more than six years. Queensland plans to link to hydroelectric energy from Papua New Guinea.

Commodities, Currencies and Yields

Dollar edged lower against euro to $1.30 and fell against the Japanese yen to 85.65.

Crude oil decreased $1.07 to $75.73 a barrel for a front month contract, natural gas edged higher 0.02 cent to $3.98 per mBtu and gasoline decreased 1.17 cents to 195.73 cents.

Gold fell $2.80 in New York trading to close at $1,268.90 per ounce, silver added $0.32 to $20.47 per ounce and copper for the front month delivery fell 0.15 cents to $3.467 per pound.

Yields on 10-year U.S. bonds increased to 2.69% and on 30-year U.S. bonds yields edged up 3.84%.