World Markets Struggle, Record U.S. Home Seizures; Gold Rises

123jump.com Staff
14 Oct, 2010
New York City

U.S. stocks traded sideways after mixed U.S. economic data and trade deficit widened by 8.8%. Banks declined on the worries that a new round of investigation may emerge after the recent foreclosure halts in several states. Home seizures by banks increased 4% in September to more than 100,000.

[R]4:00 PM New York – U.S. stocks traded sideways after mixed U.S. economic data and trade deficit widened by 8.8%. Banks declined on the worries that a new round of investigation may emerge after the recent foreclosure halts in several states. Home seizures by banks increased 4% in September to more than 100,000.[/R]

U.S. stocks traded sideways after weekly jobless claims rose 13,000 to 462,000 and PPI edged higher and trade deficit widened more than anticipated in September.

Home seizures increased 4% in September to 102,134 according to the latest data released by RealtyTrac Inc. Foreclosures filings in the month increased 3% to 347,420 and five states accounted more than one third of all filings. California led the filings with 191,016 followed by Florida with 157,026, by Arizona with 49,103, by Illinois with 47,802 and by Michigan with 46,100.

AOL and private equity firms are contemplating a bid for Yahoo. Educational services providers plunged after Apollo Group withdrew its 2011 outlook. The news dragged lower Corinthian Colleges, Washington Post Co., Strayer Education and ITT Educational Services.

The European indexes traded mixed and several institutes raised German growth outlook. The ECB noted euro area economic growth is estimated to slow in the second-half. Hungary industrial output grew in August. Dutch retail sales growth declined in August.

Apollo Group fourth quarter net fell 55% and revenues increased 17.4%. Fairchild Semiconductor International third quarter sales increased 25% and net soared more than ten-fold. Syngenta AG said third quarter sales increased 10%.

Stocks in Japan surged for the first time in four days tracking a rally in overseas markets and the yen continued to rise. Tobacco shipments soar in September ahead of effective tax increase on November 1.

Hong Kong index soared 1.7% tracking gains in international markets. Shanghai introduces new curbs for property loans. Business Confidence Index and Business Climate Index rose in September. Hong Kong economy in the first expanded at 7.2%.

The benchmark index in Mumbai declined 0.9% and gave back nearly half the gains of yesterday. The rupee held firm and outsourcing companies rose ahead of earnings from Infosys Technology. LIC Housing Finance surged after it reported 36% increase in earnings.

Australian shares gained more than 1.7% led by banks and miners as the Australian dollar neared parity. Business demand for credit dropped in the quarter to September. HSBC’s Australian unit completed its first cross-border yuan trade settlement.

Commodities, Bonds and Currencies

Yields on 10-year bond increased to 2.50% and on 30-year bonds rose to 3.90%.

The U.S. dollar decreased to $1.40 to a euro and fell against the Japanese yen to 81.45 yen.

Immediate futures prices of Texas crude oil decreased $0.45 to $82.56 a barrel, for natural gas fell 0.04 cents to $3.65 per mbtu and gasoline prices decreased 3.23 cents to 213.33 cents a gallon.

In metals trading, copper prices fell 0.50 cents to $3.81 per pound, gold increased $8.50 to $1,379.00 per ounce and silver advanced 55 cents to $24.48.