U.S. and World Markets Rally, Dollar Drops, Gold Rises

Bikram Pandey
04 Nov, 2010
New York City

U.S. and world markets rallied after the Fed stimulus and the U.S. elections. Central banks in Europe, UK and other smaller countries left rates on hold. Gold and silver surged as the dollar declined against all major currencies.

[R]4:00 PM New York – U.S. and world markets rallied after the Fed stimulus and the U.S. elections. Central banks in Europe, UK and other smaller countries left rates on hold. Gold and silver surged as the dollar declined against all major currencies.[/R]

U.S. stocks rallied after the Fed expanded its plan to purchase U.S. Treasuries, weekly jobless claims rose 20,000 and productivity increased in the third quarter. GM commenced IPO at $26 to $29 a share. Canada blocked BHP Billiton''s $40 billion bid for PotashCorp. SAP agreed to pay $120 million to Oracle.

Stocks in New York surged after the larger than expected Fed stimulus. Apollo Group declined nearly 8% after it confirmed an investigation. Big Lots dropped nearly flat same store sales. Telsa Motors surged after Panasonic acquired a stake. Whole Foods soared on higher than expected annual outlook.

The European indexes soared after the ECB held key rate at 1%. Euro-zone services PMI fell in October but PPI climbed in September. German services PMI rose but French services sector activity growth slackened in October. Adidas profit rose 25% and BNP earnings soared 46%.

The UK indexes surged after the BoE retained key rate at 0.5% and bond purchase program at £200 billion. The UK home prices rose more than expected but auto registrations fell in October. Irish service sector rebounded in the month. Unilever net soared 21% on improved performance in emerging markets.

Stocks in Japan scaled higher after U.S. Federal Reserve announced larger than expected monetary stimulus. Resources and export sensitive stocks increased and the yen hovered near its recent highs. Casio Computer swung to net profit. Fast Retailing soared after monthly sales declined abated.

Stocks in China region surged following a rally in Asia. U.S. Fed expanded its U.S. Treasury purchase program y $600 billion, effectively printing new money that may fuel inflation in the future. Resource stocks and commodities prices increased.

Stocks in Mumbai closed record high as foreign investors pour money on the successful public offering of Coal India. Rupee strengthened as the dollar declined on the back of higher than expected pump priming by the U.S. Fed.

Stock in Mumbai soared on the back of a rally in Asia. Coal India Limited surged 25% on the first day of its trading. MTNL declined 2.9%. Nitin Fire Protection plunged despite higher profit. Tata Sponge Iron decreased 2.2% after net profit declined 28.7%.

Commodities, Bonds and Currencies

Yields on 10-year bond decreased to 2.48% and on 30-year bonds increased to 4.04%.

The U.S. dollar decreased to $1.412 to a euro and rose against the Japanese yen to 80.66 yen.

Immediate futures prices of Texas crude oil increased $1.92 to $86.63 a barrel, for natural gas rose 0.03 cents to $3.86 per mbtu and gasoline prices increased 3.96 cents to 217.71 cents a gallon.

In metals trading, copper prices increased 11.40 cents to $3.89 per pound, gold increased $46.50 to $1,384.10 per ounce and silver rose $1.60 to $26.05.