Stocks Climb on the Prospects of Republican Gains; Dollar Drops

Bikram Pandey
02 Nov, 2010
New York City

U.S. stocks rose on the prospect of a landslide win by the Republican Party. The dollar declined on the prospect of gridlock in Washington. Oracle agreed to acquire Art Technology for $1 billion. India and Australia raised interest rates.

[R]4:00 PM New York – U.S. stocks rose on the prospect of a landslide win by the Republican Party. The dollar declined on the prospect of gridlock in Washington. Oracle agreed to acquire Art Technology for $1 billion. India and Australia raised interest rates.[/R]

U.S. stocks traded higher ahead of the two-day Fed meeting and midterm elections. Google sued the U.S. Interior Department over messaging-service contract. GE Capital agreed to sell stake in Garanti Bank to BBVA for $3.78 billion.

Oracle Corp agreed to acquire e-commerce software Art Technology for $1 billion. The acquisitive database software added its ninth target for the year as it expands into Internet and telecom application software.

The European indexes gained after euro area manufacturing activity improved in October. Romania Central Bank retained key rate at 6.25%. German manufacturing sector expanded and machinery orders surged. French manufacturing PMI dipped in October.

The UK indexes rose on strong earnings. The UK construction activity fell to an 8-month low in October. Irish manufacturing sector expanded but consumer sentiment deteriorated to 17-month low in October. BP net plunged on $7.7 billion pre-tax charge related to the Gulf of Mexico oil spill.

Stocks in China region fell on the worries that government may be forced to raise rates and tighten home lending. Those fears were underscored today as local economists raise the prospect of faster inflation and India and Australia lifted rates today. Commodities prices edged lower.

Stocks traded sideways as the Reserve Bank of India lifted rates for the sixth time this year. The rate hikes have failed to tame elevated food prices and stubborn inflation and record property and asset prices.

Stock in Mumbai closed lower. Bajaj Auto Ltd. rose 1% after sales increased 32%. DLF Limited plunged 3.5% after RBI tightened home lending and raised rates. Emami Limited surged 5.4% after net profit gained 45.3%. GlaxoSmithKline rose 1% after net profit rose 31%. PVR Limited gained 3% net profit rose 39.3%.

Caribbean markets closed mixed on a slight rebound in trading volume. Pan Caribbean Financial Services and Scotia Group Jamaica led the most active stocks in Kingston trading. U.S. indexes wavered ahead of elections and rate decisions.

Commodities, Currencies and Yields

Dollar edged down against euro to $1.40 and rose against the Japanese yen to 80.71. One UK pound fetched $1.61.

Crude oil increased $0.93 to $83.88 a barrel for a front month contract, natural gas edged higher 4 cent to $3.88 per mBtu and gasoline increased 1.40 cents to 210.69 cents.

Gold decreased $6.70 in New York trading to close at $1,350.90 per ounce, silver increased $0.03 to $24.60 per ounce and copper for the front month delivery increased 4.00 cents to $3.77 per pound.

Yield on 10-year U.S. bond decreased to 2.59% and on 30-year U.S. bond yield decreased to 3.93%.