World Markets Close Higher in Volatile Trading; Currency Talks

Bikram Pandey
08 Oct, 2010
New York City

U.S. stocks closed higher today and for the week closed up. The S&P 500 index increased 1.7% and the Nasdaq gained 1.3%. Gold surged 2% and the dollar declined against the most currencies ahead the world financial leaders talks this weekend.

[R]4:30 PM New York – U.S. stocks closed higher today and for the week closed up. The S&P 500 index increased 1.7% and the Nasdaq gained 1.3%. Gold surged 2% and the dollar declined against the most currencies. World financial leaders gather this weekend and the dollar is in focus.[/R]

U.S. stocks rebounded at close and employment fell by 95,000 jobs in September and consumer credit dropped more than estimated in August. Private sector added 64,000 and government employment fell by 159,000. Of the government job losses, 76,000 jobs were cut at local governments and 77,000 were terminated for the Census activities.

Alcoa quarterly earnings fell 21% to $61 million and Micron swung to a profit of $342 million.

Retailers edge up for the second day after the release of same store sales data. Agro-complex stocks declined after the release of weaker than expected corn and cotton crop outlook.

Alcoa Inc third quarter sales increased 15% and net income rose 21%. Micron Technology Inc. fourth quarter sales increased 92% and returned to net income. NaviSite, Inc. fourth quarter sales increased 7.5%.

The European indexes rose after German manufacturing turnover improved but trade surplus and exports declined in August. French budget deficit widened in August but industrial confidence gained in September.

The UK indexes slid after GDP growth slackened in the third quarter. The UK producer prices rose and home price inflation eased in September. Sempra and RBS agreed to sell its commodities trading venture to JPMorgan for $220 million.

Stocks in Shanghai rallied to a 4-month high after a long holiday period. The stocks were supported after manufacturing and services expanded at a faster pace in September. Shanghai introduces one house per family policy like in Beijing, to curb property speculations.

Stocks in Japan declined as the yen traded at elevated level. Cabinet approves higher stimulus plan. Total liabilities of failed companies, with at least 10 million yen of debt, surged 360% in September. Current account surplus shrinks in August for the first time in more than a year.

Indian stocks retreated for a second day and declined for the week after rising for the five weeks in a row. Vedanta offer gets overwhelming shareholder approval from Cairn India takeover at $8.5 billion. Total vehicles sales soar 21.6% in September.

The Sydney index traded for a second day in a row in a narrow range. The Australian dollar reached to a new intra-day high of 99.18 U.S. cents. QR National finalizes a $3 billion loan ahead of its float. Coal miner Northern Energy spurns a takeover offer from New Hope.

Commodities, Currencies and Yields

Dollar edged lower against euro to $1.392 and gained against the Japanese yen to 82.05. One UK pound fetched $1.59.

Crude oil increased $1.13 to $82.80 a barrel for a front month contract, natural gas edged higher 0.04 cent to $3.65 per mBtu and gasoline increased 3.40 cents to 215.20 cents.

Gold increased $12.10 in New York trading to close at $1,347.10 per ounce, silver added $0.63 to $23.22 per ounce and copper for the front month delivery increased 10.20 cents to $3.78 per pound.

Yield on 10-year U.S. bond was unchanged to 2.39% and on 30-year U.S. bond yield increased to 3.75%.