Mixed Trading in U.S., Europe; AIG Soars 11%

Bikram Pandey
09 Dec, 2010
New York City

U.S. and European closed mixed and U.S. bonds gained. AIG surged after the U.S. Treasury official asserted that the government is looking to sell its 92% stake as soon as practicable. AIG soared 11%. U.S. wholesale sales in October surged 13.4% and weekly jobless claims are trending lower.

[R]4:00 PM New York – U.S. and European closed mixed and U.S. bonds gained. AIG surged after the U.S. Treasury official asserted that the government is looking to sell its 92% stake as soon as practicable. AIG soared 11%. U.S. wholesale sales in October surged 13.4% and weekly jobless claims are trending lower.[/R]

U.S. indexes in a lackluster trading closed higher. American International Group surged after the U.S. Treasury noted said it is looking to sell its stake in the company “as quickly as practicable” and the company today filed a master transaction agreement to repay bailout.

U.S. Treasury bonds closed higher as the calm returned to the bonds market but markets are still not sure how lawmakers are likely to trim the deficit in the coming months. Investors turned positive after the weekly jobless claims fell 17,000 and the seasonally adjusted monthly average declined to a two-year low.

In addition, October wholesale sales surged 13.4% from a year ago month and 2.2% from September.

In stock trading, AIG, Airgas and DuPont were in focus. Airgas declined nearly 6% after the company lifted its hostile offer for Air Products and Chemicals to $70 a share as its final offer. DuPont fell 1.9% after the company forecasted annual earnings between $3.30 and $3.60 a share.

Diamond Foods first quarter net sales grew 40% to $252.5 million. Greif, fourth quarter net sales increased 31% to $993.9 million. Lululemon said third quarter net revenue rose 56% to $175.8 million. SAIC, third quarter revenue rose 3.8% to $2.87 billion.

The European indexes rose after German factory turnover surged. French payroll employment rose in the third quarter. Portugal GDP expanded but Greek economy contracted in the third quarter. ASML Holding soared on fourth quarter bookings forecast.

The UK indexes climbed after the Bank of England retained quantitative easing program at £200 billion and key rate at 0.5%. Fitch lowered Irish credit ratings with stable outlook. The UK home prices declined in November and trade deficit widened in October and Irish inflation eased in the month.

Commodities, Currencies and Yields

Dollar edged up against euro to $1.323 and fell against the Japanese yen to 83.66. One UK pound fetched $1.576.

Crude oil increased $0.11 to $88.39 a barrel for a front month contract, natural gas edged lower 17 cents to $4.43 per mBtu and gasoline increased 3.54 cents to 234.00 cents.

Gold increased $4.30 in New York trading to close at $1,387.50 per ounce, silver increased $0.43 to $28.68 per ounce and copper for the front month delivery decreased 3.05 cents to $4.07 per pound.

Yield on 10-year U.S. bond decreased to 3.22% and on 30-year U.S. bond yield decreased to 4.41%.