U.S. Stocks Rise on Global Recovery Optimism

Bikram Pandey
29 Dec, 2010
New York City

U.S. indexes closed higher after the dollar edged lower. Crude oil price declined by hovered near 28-month high. Gold and silver traded at 3-decade high. Copper touched intra-day high. Treasury auction of 7-year bonds attracted a strong interest.

[R]4:00 PM New York – U.S. indexes closed higher after the dollar edged lower. Crude oil price declined by hovered near 28-month high. Gold and silver traded at 3-decade high. Copper touched intra-day high. Treasury auction of 7-year bonds attracted a strong interest.[/R]

U.S. stock indexes traded higher as markets in Europe trade near two-year high and Asian markets retained momentum. China cuts rare earth minerals export quota by 35%. Air travel disruption continued on the third day after East Coast snowstorm.

Groupon Inc, Chicago based online coupon seller through social networking sites amended its company registration in Delaware to raise $950 million through the sale of 30 million shares at a price of $31.59 each. The news was first reported by a website VCExperts. Groupon amendment fuel a speculation that the company is getting ready to go public as early as next year.

Resources linked companies edged lower but metals prices held their grounds. Pulse Electronics Corp soared 18% after Bel Fuse Inc expressed an interest in combining two companies. BJ’s Wholesale Club Inc soared more than 6% after it was the subject of a speculation.

The European indexes rose to two-year highs after euro-zone money supply improved in November. German consumer price index climbed 1.7% in December. Spanish retail sales fell and Swedish trade surplus improved in November. Skanska agreed to sell its 50% share in PPP Highway Autopista Central.

The UK indexes fell and housing equity injections increased in the third quarter. Anglo American plc agreed to invest as much as $700 million in an iron ore project in Brazil. Smith & Nephew declined 2% after U.S. regulatory inquiry.

Stocks in Tokyo gained on earnings outlook. Holdings of Japanese government bonds by overseas investors surged 6% to 57.5 trillion yen in the September quarter. Purchase of television sets surges 255% in November ahead of expiry of government incentives.

Hong Kong’s benchmark index surged more than 1.5% while indexes in China rose less than 0.7%. Home prices in Shanghai continue to rise in December. China increases sales tax on smaller cars as the economy avoids the global markets crisis.

Stocks in Mumbai surged more than 1% on higher traded volumes ahead of the derivatives contracts expiry on Thursday. Punjab and Sind Bank fixed its public offering stock price. Record grain harvesting is expected in the current fiscal year is expected surpass the previous record in 2009.

Australian stock index closed flat as miners fell despite a rise in precious metals prices. Tower Australia recommended $1.76 billion takeover offer from Dai-ichi Life. Rains bring down coal production in Australia and Darlymple Bay Coal terminal suspends operations.

Commodities, Currencies and Yields

Dollar declined against euro to $1.312 and fell against the Japanese yen to 81.62. One UK pound fetched $1.55.

Crude oil decreased $0.43 to $91.06 a barrel for a front month contract, natural gas edged lower 0.6 cents to $4.28 per mBtu and gasoline decreased 1.4 cents to 239.50 cents.

Gold increased $5.50 in New York trading to close at $1,411.10 per ounce, silver increased $0.27 to $30.59 per ounce and copper for the front month delivery decreased 1.45 cents to $4.31 per pound.

Yield on 10-year U.S. bond decreased to 3.33% and on 30-year U.S. bond yield declined to 4.41%.