U.S. Stocks Struggle, Bond Yields Rise; World Markets Higher

Bikram Pandey
15 Nov, 2010
New York City

U.S. stocks struggled to hold gains after retail sales increased more than expected in October. The dollar advanced and gold and silver closed lower. Japan reported stronger economic expansion. European officials meet to discuss various options to quell rising debt distress in peripheral nations.

[R]4:05 PM New York – U.S. stocks struggled to hold gains after retail sales increased more than expected in October. The dollar advanced and gold and silver closed lower. Japan reported stronger economic expansion. European officials meet to discuss various options to quell rising debt distress in peripheral nations.[/R]

U.S. stocks struggled to hold gains of the day and the dollar edged higher after two large deals totaling $10 billion were announced. October retail sales increased more than anticipated.

GM, Harrah’s, Booze Hamilton and Aeroflex are four of the ten companies expected to raise as much as $12.5 billion in public offering this week. General Motors, the third largest public offering is expected to raise $10.5 billion and use proceeds to repay the U.S. Treasury bail out of $50 billion.

Caterpillar agreed to acquire Bucyrus International, Inc. for $8.6 billion and EMC Corp agreed to purchase Isilon Systems Inc for $2.25 billion.

European markets closed higher but not before oscillating in the day as Ireland and EU discuss emergency loan measures. Indexes in the European region gained between 0.4% and 1.3%. Euro zone deficit with the rest of the world increased to €2.9 billion and the estimate of Greek deficit were revised higher.

Ireland and peripheral nation in the EU remained in focus ahead of the EU officials meeting in Brussels tomorrow. Ireland is expected to receive as much as 100 billion in loans and guarantees as early as this week in a plan coordinated by the EU and the IMF. Eurostat revised deficit estimates of Greece.

UK stocks closed higher as commodities recovered. However, traders looked to the meeting of EU ministers tomorrow that is expected to discuss Ireland banking and debt crisis. Irish bonds have declined for thirteen days in a row.

Stocks in China region closed higher but in Hong Kong declined. Russia based OAO EuroSibEnergo is expected to complete its public offering in Hong Kong before the end of the year. The one-month yuan futures weakened but the currency is expected to gain against the dollar in the next three months.

Stocks in Tokyo trading increased after Japan reported faster than expected economic expansion and the yen weakened. The economic growth in the fiscal second quarter increased to annual rate of 3.9% from the revised 1.8% rate in the first. Banks and exporters gained in trading.

Stocks in Mumbai increased after Finance minister Pranab Mukherjee said that in the short term economy will expand at 9%. The rupee edged lower and the latest data on the inflation showed a declined. Tata Steel swung to net profit.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.357 and rose against the Japanese yen to 83.18. One UK pound fetched $1.605.

Crude oil decreased $0.31 to $84.57 a barrel for a front month contract, natural gas edged lower 12.1 cent to $3.83 per mBtu and gasoline decreased 1.40 cents to 219.59 cents.

Gold decreased $5.00 in New York trading to close at $1,360.50 per ounce, silver decreased $0.39 to $25.50 per ounce and copper for the front month delivery increased 0.50 cents to $3.903 per pound.

Yield on 10-year U.S. bond increased to 2.92% and on 30-year U.S. bond yield rose to 4.32%.