Markets in U.S., Europe Closed Lower; AIG Up 9%

Bikram Pandey
27 Dec, 2010
New York City

U.S. indexes closed lower as snowstorm on the East Coast keep shoppers away. AIG surged after the insurer arranged $4.3 billion in credit line with banks to replace government funding. Asian markets closed lower after China lifted rates. European markets edged lower on weaker outlook for the euro.

[R]4:00 PM New York – U.S. indexes closed lower as snowstorm on the East Coast keep shoppers away. AIG surged after the troubled insurer arranged $4.3 billion credit line with banks to replace government funding. Asian markets closed lower after China lifted rates. European markets edged lower on weaker outlook for the euro.[/R]

U.S. stocks trade lower tracking lower Asian and European markets. Airlines decline after blizzard conditions prevail in several Northeastern states. China lifted rates by 25 basis points on Saturday.

The European indexes declined tracking weak world markets. The Swiss National Bank forecasted slow growth in 2011. The UK home prices fell in December. Rating agencies lowered views on Portugal debt and reaffirmed French debt rating.

Stocks in Mumbai edged lower as Asian markets closed mixed and markets in China declined. Rupee edged lower. Indian government retained its borrowing target. ONGC starts building a road from Agartala in North East to Bangladesh.

Tokyo’s key benchmark index climbs 0.75% in a rudderless market. Japan’s Cabinet approved a record 92.41 trillion yen budget for fiscal 2011 that relies on record bond offering. Shipments of home appliances and housing starts rise in November. Corporate services price index drops in November.

Stocks in Shanghai plunged nearly 2% after China lifted rates over the weekend. The second rate increase in as many months is expected to do little to ward off the rising food and property prices. Tibet registered a sharpest rise in foreign trade in first eleven months to November.

Dishman Pharmaceuticals is in a deal to sell pharma products of $50 million to European multinational. GMR buy 51% stake in Kakinada SEZ for undisclosed amount. KEC International secured new orders aggregating $250 million. NMDC may increase iron ore price by 3%.

Commodities, Currencies and Yields

Dollar edged up against euro to $1.31 and fell against the Japanese yen to 82.81. One UK pound fetched $1.54.

Crude oil decreased $0.71 to $90.80 a barrel for a front month contract, natural gas edged higher 1.6 cents to $4.09 per mBtu and gasoline decreased 2.7 cents to 241.53 cents.

Gold increased $3.30 in New York trading to close at $1,383.80 per ounce, silver decreased $0.01 to $29.31 per ounce and copper for the front month delivery increased 2.80 cents to $4.28 per pound.

Soybeans and corn rose to near 28-month high after inclement weather in Argentina.

Yield on 10-year U.S. bond decreased to 3.34% and on 30-year U.S. bond yield declined to 4.41%.