U.S. Indexes Rebound 1.3%; Euro Struggles to Advance

Bikram Pandey
14 Sep, 2011
New York City

U.S. indexes rebounded more than 1.3% and the euro gained. U.S. retail sales and producer prices remained flat in August. French banks rebounded and the central bank rejected the needs to nationalize three largest banks.

[R]4:30 PM New York – U.S. indexes rebounded more than 1.3% and the euro gained. U.S. retail sales and producer prices remained flat in August. French banks rebounded and the central bank rejected the needs to nationalize three largest banks.[/R]

U.S. indexes traded higher and three indexes gained between 1.3% and 1.6% after mortgage and refinancing activity improved but retail sales and producer prices remained flat in August.

Oaktree offered to acquire Jakks Pacific for $670 million. Cisco lowered its annual sales growth between 5% and 7% annually for next three years. ConAgra reiterated its $94 a share all-cash proposal to acquire Ralcorp. Solutia lowered earnings per share outlook for 2011.

The European indexes rose after euro area production bounced back in July. Ratings agency downgraded the long term debt ratings of French banks Credit Agricole and Societe Generale. Gerry Weber first nine months of the year net rose boosted by strong growth in sales.

After the market close, German and French leaders expressed confidence in the euro monetary union and said Greece is a viable member in the group.

Euro area industrial production rebounded in July on strong German factory output. Finnish annual inflation slowed but Swiss producer and import price index fell in August. Dutch trade surplus rose in July.

The UK indexes gained after jobless claims rose less than estimated but unemployed soared to 7.9%. The European Central Bank offered to lend $575 million to two euro-zone banks. BP surged 4.6% after it acquired full control of Brazilian bio-fuel company Tropical BioEnergia.

Stocks in Japan edged lower and banks led the decline on the worries of the exposure to the euro zone. Sony plans to release its next version of PlayStation hand held game device late in the year in Japan but will not discount the price. Resource linked stocks, banks and shipping companies closed lower.

The benchmark index in Australia declined 1.6% following the indexes in Asia lower. Australian banks declined as French banks faced trimmed access to short term funding in the U.S. money markets. Cochlear dropped 14% as the competitor won the U.S. regulatory approval.

Commodities, Bonds and Currencies

The 10-year U.S. bond yield increased to 2.01% and 30-year U.S. bond fell to 3.30%.

The U.S. dollar decreased at $1.3768 to one euro and closed lower against the Japanese yen to 76.65 yen.

Immediate delivery futures of Texas crude oil decreased $1.39 to $88.82 a barrel and futures of natural gas increased 0.06 cents to $4.07 per mbtu and gasoline price fell 1.59 cents to 272.65 cents a gallon.

In metals trading, copper decreased 5.35 cents to $3.916 per pound, gold fell $12.30 to $1,817.80 per ounce and silver fell $0.55 to $40.63.