Sustained Gains in Stocks, Gold in New York

Bikram Pandey
24 Sep, 2010
New York City

U.S. indexes soared more than 2% and gold and silver reached new high. For the week three popular indexes also registered nearly 2%. Stocks reacted to the surprise rise in durable goods orders in August. European markets closed higher after German business confidence.

[R]4:00 PM New York – U.S. indexes soared more than 2% and gold and silver reached new high. For the week three popular indexes also registered nearly 2%. Stocks reacted to the surprise rise in durable goods orders in August. European markets closed higher after German business confidence.[/R]

U.S. stock indexes soared nearly 2% after durable goods orders fell 1.3% in August and excluding transportation, orders increased 2%. Capital goods orders that also included computers and communications equipment soared 4.1% in the month, after a 5.3% decline in July. The orders have been volatile but the surprised increase bodes well overall economic growth.

Gold rallied for the seventh day in the last two weeks of trading and traded as high as $1301 in the intra-day trading. For the week gold gained 1.6% and silver increased 2.7%.

Petrobras raised $70 billion in public share offering. Nike reported higher earnings on China demand. CSG Systems agreed to buy UK-based Intec for $371 million.

AMD lowered its third quarter revenues outlook between 1% and 4%. KB Home third quarter net loss narrowed 98%. Nike, Inc first quarter revenues increased 8% and net rose 9%. Vail Resorts, Inc third quarter revenues increased 34.4%.

The European indexes advanced after German business confidence rose to record level in September. Euro-zone money market turnover fell in the second quarter. France GDP growth revised up 0.7% in the second quarter. The Swiss National Bank lifted current year Swiss growth forecast raised to 2.5%.

The UK indexes climbed after positive U.S. economic data. Irish trade surplus widened in July. KNOC affirmed 64% shareholders of Dana Petroleum accepted its offer. The FDA restricted sale of GSK''s diabetes drug Avandia and the EMA suspended it.

Stocks in Japan drop for the third day in a row on a stronger yen and a weakness in international markets. China questions four Japanese for alleged videotaping of military targets. China denies embargo on export of rare earth to Japan. Asahi Glass opened the world’s largest float glass plant in Russia.

India lifted foreign investor upper limit to invest in government and corporate debt on the rising demand for investment in infrastructure. The revised limits also sustained the gains in stocks and the index surged to a nearly three-year high. India completes the transition to cleaner petrol and diesel that are compliant with European standards.

Sydney index declined 0.7% on Friday and fell 0.8% for the week. BHP and Apache approve $1.5 billion Macedon gas field development. Rio Tinto plans to develop Dampier port for increased iron ore exports. Long running investigation of CabCharge led to A$15 million penalty.

Commodities, Currencies and Yields

Dollar edged lower against euro to $1.34 and fell against the Japanese yen to 84.05. One UK pound fetched $1.582.

Crude oil increased $1.27 to $76.45 a barrel for a front month contract, natural gas edged lower 0.13 cent to $3.88 per mBtu and gasoline increased 2.94 cents to 194.68 cents.

Gold increased $2.00 in New York trading to close at $1,298.10 per ounce, silver gained $0.25 to $21.46 per ounce and copper for the front month delivery increased 3.50 cents to $3.62 per pound.

Yields on 10-year U.S. bonds increased to 2.61% and on 30-year U.S. bonds yields edged up 3.79%.