U.S. Stocks Positive; Records in Gold, Silver

Bikram Pandey
06 Apr, 2011
New York City

U.S. stocks seesawed as gold and silver traded at 31-year highs. European markets rebounded after banks announced $18 billion of capital raising and on strong industrial orders in Germany. Mining stocks around the world rallied for the third day in a row as Japan struggles with Production delays.

[R]4:00 PM New York – U.S. stocks seesawed as gold and silver traded at 31-year highs. European markets rebounded after banks announced $18 billion of capital raising and on strong industrial orders in Germany. Mining stocks around the world rallied for the third day in a row as Japan struggles with supply chain worries.[/R]

U.S. stocks traded higher in the morning on economic optimism and robust merger activities but declined in the afternoon. Resources linked stocks led the gainers after precious metals and crude oil advanced and the dollar weakened against the euro and the pound.

Cephalon rejects unsolicited offer from Valeant Pharmaceuticals. DISH Network won auction for Blockbuster, Inc. valued $320 million. Genpact agreed to acquire Headstrong Corp for cash of $550 million. Monsanto second quarter net income surged 25% to $1.0 billion.

European markets traded higher on the eve of rate decision tomorrow. Portugal completed the sale of 1 billion euros bonds at a yield of 5.9%. Switzerland inflation accelerated and German factory orders increased at a faster pace in February.

UK stocks advanced tracking the gains in commodities and mining sector stocks. UK industrial production increased 1.2% in February but manufacturing was flat on a monthly basis. Marks & Spencer rose after it reported lower than expected same store sales decline.

Stocks in Tokyo declined for the second day this week as investors focused on the mounting production losses. Manufacturers are not able to take advantage of the lower yen. Automakers and trading companies were among the most actively traded stocks.

Trading sentiment in Mumbai turned sour after stocks gained nine of last twelve trading sessions. Inflation worries stoked the speculation of another rate hike on a rate decision meeting on May 3. Talwalkars plans to open 100 health clubs in the current year at a cost of $20 million. NTPC fourth quarter net increased 24%.

Australian stocks edged higher as resource stocks gained. Xstrata confirmed the thermal coal contract with a Japanese utility at 8% higher price. Bras N Things, the lingerie retailer postponed its public offering.

Commodities, Bonds and Currencies

The 10-year bond yield increased to 3.54% and 30-year bond gained to 4.59%.

The U.S. dollar increased to $1.433 to a euro and rose against the Japanese yen to 85.37 yen.

Immediate delivery futures of Texas crude oil increased $0.27 to $108.61 a barrel, of natural gas decreased 0.08 cents to $4.16 per mbtu and gasoline prices decreased 1.8 cents to 318.55 cents a gallon.

In metals trading, copper prices increased 11.1 cents to $4.37 per pound, gold increased $8.60 to $1,461.10 per ounce and silver increased $0.37 to $39.55.