World Markets Search Direction, Modest Gains in U.S. Indexes

Bikram Pandey
28 Mar, 2011
New York City

U.S. stocks edged up after commodities fell and markets in Europe closed mixed. Asian markets traded higher on positive economic momentum and earnings expectations. eBay agreed to acquire e-commerce services provider GSI Commerce and Rural Metro agreed to go private in a leveraged buyout.

[R]4:15 PM New York – U.S. stocks edged up after commodities declined and markets in Europe closed mixed. Asian markets generally traded higher on positive economic momentum and earnings expectations. eBay agreed to acquire e-commerce services provider GSI Commerce and Rural Metro agreed to go private in a leveraged buyout.[/R]

U.S. stocks traded lower at close and personal income and disposable personal income increased 0.3% in February, more than expected. Markets in Europe traded lackluster and German ruling coalition lost two regional elections.

eBay Inc. agreed to acquire GSI Commerce ((GSIC)) a provider of ecommerce and marketing services for $29.25 per share or approximately $2.4 billion. The acquisition will be financed in cash and debt and is expected to close in the third quarter of 2011.

American Express released its online payment gateway. Rural-Metro agreed to take company private for $438 million. Wabtec Corporation soared as much s 10% after it forecast higher first quarter earnings per share. Eastman Kodak soared on a patent ruling case.

European indexes traded sideways after German ruling coalition lost in two key regional elections. Crude oil declined after Libyan rebels advanced with the help of military support from U.S. and European nations. Porsche declined after it plans to sell shares. Continental AG fell after its key investor lowered its holding.

Stocks in Tokyo resumed their slide for the third week in a row as Tokyo Electric Power struggled to contain radiation leak. Tokyo Gas soared 4% after it lifted earnings estimate for the current year. Automakers and D-RAM makers were in focus on the supply chain worries.

The Sensex in Mumbai traded higher after the crude oil eased and investors focused on earnings season. Reliance Industries announced a joint venture with U.S. based D.E. Shaw Group to expand in financial services. India attracted 74 bids for 33 oil blocks in its nine round of auction.

Australian dollar gained to a new post-float high as foreign investment pours in. The Australian dollar traded as high as $1.03 before settling at $1.029. Sigma Pharmaceuticals said its full-year net loss halved.

Commodities, Bonds and Currencies

Yield on 10-year bond increased to 3.45% and on 30-year bond fell to 4.49%.

The U.S. dollar increased to $1.409 to a euro and fell against the Japanese yen to 81.69 yen.

Immediate delivery futures of Texas crude oil decreased $1.69 to $103.71 a barrel, of natural gas increased 0.06 cents to $4.31 per mbtu and gasoline prices decreased 2.16 cents to 302.29 cents a gallon.

In metals trading, copper prices decreased 6.65 cents to $4.35 per pound, gold decreased $7.70 to $1,419.90 per ounce and silver increased $0.07 to $37.12.