World Markets Volatile, Record in Gold, Silver and Copper

Devan Biswas
11 Oct, 2010
New York City

U.S. stocks turned volatile in the final hour. Gold closed at a record high and the yields on U.S. Treasuries hovered near recent low. The U.S. dollar traded mostly lower against major currencies. Copper closed at a 2-year high, silver at 30-year high and gold closed at a new record.

[R]400 PM New York – U.S. stocks turned volatile in the final hour. Gold closed at a record high and the yields on U.S. Treasuries hovered near recent low. The U.S. dollar traded mostly lower against all major currencies a day after world leaders struggled to find a consensus. Copper closed at a 2-year high, silver at 30-year high and gold closed at a new record.[/R]

U.S. stocks traded mixed amidst hopes of fresh monetary easing from the U.S. Federal Reserve. Chesapeake agreed to sell stake in Eagle Ford project to CNOOC for $1.08 billion. Pension fund controlled by Ontario, Canada contemplates rival bid for Potash. Cognizant inked deal with 3M.

Gymboree surged after the company agreed to go private. Warned Chilcott soared more than 7% after the company received regulatory approval for its drug to treat osteoporosis. LDK Solar surged more than 10% after it lifted revenues outlook.

The European indexes rose on expectations that the U.S. Fed will increase asset purchases. French industry growth remained flat in August and Italian industrial production surged. Talisman and Statoil announced joint venture worth $1.3 billion in Eagle Ford Shale property.

The UK indexes and the pound gained after the world leaders meeting failed to settle the rising tensions in the currency markets. Irish manufacturing output declined in August. KNOC received acceptances of 89% Dana Petroleum shares. Weir Group confirmed completion of BDK acquisition.

Stocks in Japan fell after global financial leaders failed to resolve exchange rate spat. China releases the detained employee of Japanese company. Government controlled pension fund plans to expand investment in emerging markets.

Stocks in Shanghai rallied the most in four months led by resource and energy stocks. CNOOC agrees to buy 2.6 million tons of natural gas from a French company and a large stake in shale gas assets in the U.S. controlled by Chesapeake.

Stocks in Mumbai traded and the rupee closed lower after world leaders failed to build a consensus around the dollar. Rupee and other currencies advanced against the dollar. Engineering exports rise 16% in August on demand mainly from the U.S.

Australian shares closed higher to touch a new five-month high and the dollar firmed after the IMF meeting in Washington failed to produce a consensus. Home loan approvals rise in August. QR National IPO will be the largest offering after Telstra.

Commodities, Bonds and Currencies

Yields on 10-year bond decreased to 2.39% and on 30-year bonds declined to 3.75%.

The U.S. dollar decreased to $1.388 to a euro and fell against the Japanese yen to 82.11 yen.

Immediate futures prices of Texas crude oil decreased $0.78 to $81.88 a barrel, for natural gas decreased 0.05 cents to $3.61 per mbtu and gasoline prices increased 0.38 cents to 215.50 cents a gallon.

In metals trading, copper prices gained 1.5 cents to $3.78 per pound, gold increased $9.10 to $1,354.40 per ounce and silver advanced 14 cents to $23.25.