U.S. Stocks Turn Negative, Silver Shines; Monday Global Deals of $25 Billion

Bikram Pandey
04 Apr, 2011
New York City

U.S. stocks struggled to arrest early morning gains after crude oil and commodities were in focus. Deals of $25 billion were announced on Monday. Silver surges to a 3-decade high. Markets in Asia gained and stocks in Japan struggled on supply chain worries.

[R]4:00 PM New York – U.S. stocks struggled to arrest early morning gains after crude oil and commodities were in focus. Deals of $25 billion were announced on Monday. Silver surges to a 3-decade high. Markets in Asia gained and stocks in Japan struggled on supply chain worries.[/R]

U.S. stocks traded higher as crude oil prices gained and commodities edged higher. The deal making was overshadowed by the sentiment in commodities trading. Crude oil futures rose as much as 1% in London and 0.4% in New York to trade at 30-month high.

Vodafone agreed to sell its stake in the second largest French mobile telecom operator for $11.3 billion and Pfizer agreed to sell its capsules making unit for $2.4 billion to the private equity group KKR. Epicor Software agreed to be acquired by private equity funds managed by Apax Partners. Belgium based Solvay launched an offer for France based Rhodia for 3.4 billion euros.

European markets were generally quiet with focus on banks in Ireland, Italy, Portugal and Germany. Italian banks are expected to raise as much as 10 billion euros in the next two months ahead of banks stress test.

UK stocks edged higher in a quiet trading as crude oil prices overshadowed the deal making. Crude oil in London jumped more than 1% to a 30-month high. UK financial industry survey indicated higher activities and construction industry survey showed a slower expansion.

Stocks in Japan struggled to advance after the government said it may take a month before the radiation leak is contained. Supply chain and earnings worries dampened market sentiment. Weaker yen lifted exporters. Automakers and electronics makers closed mixed.

Stocks in Mumbai closed higher after foreign funds flows picked up. The positive momentum in trading carried the Sensex index up 1.5% and extended gains in last ten days to above 9%. Reliance Communications and others deny government charges in telecom licenses scam.

Australian stocks traded higher ahead of the Reserve Bank of Australia rate decision tomorrow. China controlled Minmetals Resources launched $6.3 billion offer for Equinox Minerals. Cellestis, the diagnostic technology company agreed to a takeover of $341 million from the Frankfurt listed Qiagen.

Commodities, Bonds and Currencies

Yield on 10-year bond decreased to 3.41% and on 30-year bond fell to 4.47%.

The U.S. dollar decreased to $1.421 to a euro and rose against the Japanese yen to 84.006 yen.

Immediate delivery futures of Texas crude oil increased $0.30 to $108.24 a barrel, of natural gas decreased 0.07 cents to $4.28 per mbtu and gasoline prices increased 1.05 cents to 316.19 cents a gallon.

In metals trading, copper prices decreased 0.55 cents to $4.25 per pound, gold increased $5.50 to $1,434.40 per ounce and silver increased $0.77 to $38.50.