World, U.S. Stocks Mixed on Rising Yields in New York, Germany

Bikram Pandey
08 Dec, 2010
New York City

U.S. stocks searched for direction as investors digested the latest tax deal between President Obama and Republicans. The dollar rose and the U.S. Treasury bonds yields rose. Deal was making was active on both sides of the Atlantic. Gold and silver declined.

[R]4:00 PM New York – U.S. stocks searched for direction as investors digested the latest tax deal between President Obama and Republicans. The dollar rose and the U.S. Treasury bonds yields rose. Deal was making was active on both sides of the Atlantic. Gold and silver declined.[/R]

U.S. stocks trade sideways after U.S. Treasury completed the sale of $21 billion 10-year bonds sale but the yields rose and Germany completed the sale of 4 billion euros bonds but investors were less enthusiastic.

Deal making was in high gear on both sides of Atlantic. Johnson & Johnson launched €24.75 a share offer to acquire Crucell. Salesforce.com agreed to buy Heroku for $212 million. Apax Partners LLP is in direct talks with ISS Holding A/S for as much as 6.4 billion euros. ABB Ltd. said that its subsidiary, Brock Acquisition Corp. commenced the previously announced cash tender offer for Baldor Electric Co.

The European indexes declined after German exports fell in October. EU finance ministers urged for stringent bank stress tests. French business sentiment improved in November. Iceland lowered key rate to 4.5%. ABB commenced tender offer to acquire Baldor Electric.

The UK indexes traded sideways after shop price inflation dropped and job placements rose at the fastest pace in November. The Irish Finance Minister Brian Lenihan unveiled a tough austerity budget. Smith & Nephew soared 6.5% on takeover speculations.

Tokyo benchmark index reached a seven month intra-day high on the improved outlook for exports. Japan and Bolivia are set to expand rare earth minerals exploration. Current account surplus reaches 1.43 trillion yen in October. Sumitomo Metal acquires a nickel mining concession in Solomon Islands.

China indexes lose nearly 1% as investors brace for tighter lending and property tax trials. Asian Development Bank expects GDP to expand at 10.1% in 2010 after revising its September estimate. Auto sales in November surge to a record 1.28 million vehicles.

Stocks in Mumbai dropped more than 1% on steady selling by speculators. Finance Minister Mukherjee lifted GDP growth estimate to 9% in the current mid-year review. Passenger car sales up 21% and motorcycle sales surge 16%. Direct tax collections to November in the fiscal year soar 17.9%.

Stocks in Mumbai trading declined and local oil refiners plan to raise retail price of gasoline. Karuturi agreed to buy a 54% stake in Mumbai-based floral chain Florista. Ruchi Soya tumbled 27% on the prospect o insider trading investigation. Wipro won a telecom line operation contract from Vodafone Essar.

Sydney stocks ended lower, led by banks, after Federal Treasurer pledged to release banking competition measures by the next week. Home loan approvals rise in October. Coal stockpiles deplete at ports on heavy rains. Mineral exploration spending rises 4% in third quarter.

Commodities, Currencies and Yields

Dollar edged up against euro to $1.32 and rose against the Japanese yen to 84.05. One UK pound fetched $1.5795.

Crude oil decreased $0.31 to $88.38 a barrel for a front month contract, natural gas edged higher 19 cents to $4.59 per mBtu and gasoline decreased 1.47 cents to 230.83 cents.

Gold decreased $25.80 in New York trading to close at $1,383.20 per ounce, silver decreased $1.54 to $28.23 per ounce and copper for the front month delivery increased 5.20 cents to $4.10 per pound.

Yield on 10-year U.S. bond increased to 3.23% and on 30-year U.S. bond yield increased to 4.43%.