Commodities, Resource Stocks Rise; Crude Oil Up

Bikram Pandey
05 Nov, 2010
New York City

U.S. stocks closed mixed after private sector added jobs in the U.S. resource stocks and commodities closed higher after the dollar. France and China signed 16 billion euros agreements. Bank of Japan left its key rate unchanged and allocated stimulus.

[R]4:00 PM New York – U.S. stocks closed mixed after private sector added jobs in the U.S. resource stocks and commodities closed higher after the dollar. France and China signed 16 billion euros agreements. Bank of Japan left its key rate unchanged and allocated stimulus.[/R]

U.S. stocks traded nearly flat after the release of better than expected employment report. Private employers in construction and retail led the net new jobs additions. Commodities increased and the dollar gained.

European markets closed higher. France and China signed 16 billion euros agreement to sell uranium, aircrafts and energy projects. German factory orders declined 4% in September. Resource stocks closed higher.

UK stocks closed fractionally higher. HSBC said bank profit exceed last year but sounded cautious on China and India. Canada based two pension funds agreed to acquire high speed rail link operation rights for thirty years. Food prices surged in October.

Stocks in Japan soared after the Bank of Japan left its key rate on hold and expanded its asset purchase program to real estate and stocks. The move widely anticipated followed the monetary stimulus program in the U.S. Automakers advanced after Nissan lifted its annual net outlook. Resona plunged 16%.

Stocks in China region indexes gained tracking the increase in world markets. Resource stocks and commodities prices increased on the prospects of further decline in the U.S. dollar. Contractors and builders surged in Shanghai after Disney and China agreed to build a theme park.

Commodities, Bonds and Currencies

Yields on 10-year bond increased to 2.52% and on 30-year bonds rose to 4.12%.

The U.S. dollar decreased to $1.401 to a euro and rose against the Japanese yen to 81.36 yen.

Immediate futures prices of Texas crude oil increased $0.42 to $86.91 a barrel, for natural gas rose 0.07 cents to $3.92 per mbtu and gasoline prices increased 0.44 cents to 218.18 cents a gallon.

In metals trading, copper prices increased 4.25 cents to $3.95 per pound, gold increased $11.60 to $1,394.70 per ounce and silver rose 61 cents to $26.60.