Records in Gold, Silver and Oil; World Stocks Rest

Bikram Pandey
08 Apr, 2011
New York City

U.S. stocks wavered as lawmakers struggle to balance the budget and raise debt limit. Commodities were in focus after crude oil jumped to 3-year high and gold and silver reached a new 31-year high. Google agreed to conditions laid by the Justice Department for the purchase of ITA Software Inc.

[R]4:00 PM New York – U.S. stocks wavered as lawmakers struggle to balance the budget and raise debt limit. Commodities were in focus after crude oil jumped to 3-year high and gold and silver reached a new 31-year high. Google agreed to conditions laid by the Justice Department for the purchase of ITA Software Inc.[/R]

U.S. stocks wavered after a rally of four days as government shutdown looms midnight. Crude oil soared 2% to $113 a barrel and at 30-month high and gold gained 1% to $1,475 and silver crossed $40 an ounce for the first time in thirty one years.

U.S. lawmakers remain divided over 2011 budgetary cuts as Republicans fight to keep military budget and corporate welfare and Democrats look to preserve welfare and healthcare spending.

The U.S. Justice Department approved the purchase of ITA Software Inc for $700 million by Google Inc after the search giant agreed to license the air travel information to rivals and establish firewalls protecting users’ data. The search engine also agreed to set up a resolution process for travel search and other information by providers.

European markets inched higher after Portugal sought European Union help. Miners and banks led gainers in the regional trading. The euro firmed against the dollar.

UK stocks advanced following a steady rise in commodities Resource linked stocks led the gainers after gold and silver reached a new high in three decades and crude oil gained to 30-month record above $125. Producer price increased more than estimated in March.

The benchmark index in Tokyo soared 1.9% after opening lower. Retailers and automakers led the rally. Toyota, Honda and Nissan gained after a report suggested that exports resumed from Sendai port. Tokyo Electric Power soared 24% in a volatile trading.

Stocks in Mumbai declined for the fourth day in a row as crude oil soared and worries of inflation kept investors on the sidelines. Maruti Suzuki and Mahindra and Mahindra increased auto price as much as 2%. Hindustan Zinc production increase 29% and Tata Steel’s India production rose 4.4%.

Australian stocks gained for the seventh session in nine days and Australian dollar reached a new high in three decades. Banks and miners led the gainers.

Commodities, Bonds and Currencies

The 10-year bond yield increased to 3.57% and 30-year bond gained to 4.64%.

The U.S. dollar decreased to $1.444 to a euro and rose against the Japanese yen to 84.89 yen.

Immediate delivery futures of Texas crude oil increased $2.60 to $112.90 a barrel, of natural gas decreased 0.02 cents to $4.04 per mbtu and gasoline prices increased 7.8 cents to 326.52 cents a gallon.

In metals trading, copper prices increased 8.5 cents to $4.50 per pound, gold increased $15.60 to $1,474.90 per ounce and silver increased $1.19 to $40.74.