Strongest Weekly Rally in World Markets Since 2009

Bikram Pandey
02 Dec, 2011
New York City

U.S. stocks closed nearly unchanged in a week when broader indexes gained 7.4%. The unemployment rate declined to 8.6% after retailers and temporary staffing services added staff. World markets are increasingly factoring weakness in the euro zone for the next two quarters.

[R]5:15 PM New York – U.S. stocks closed nearly unchanged in a week when broader indexes gained 7.4%. The unemployment rate declined to 8.6% after retailers and temporary staffing services added staff. World markets are increasingly factoring weakness in the euro zone for the next two quarters.[/R]

U.S. indexes traded higher after retailers reported better than expected comparable-store sales and jobless rate dropped to 8.6% in November. Rising retail sales and auto sales were yet another confirmation that consumers are ready to spend more.

In the earnings news, Big Lots third quarter net slipped to $4.2 million. Lululemon third quarter net increased to $38.8 million. Royal Bank of Canada fourth quarter net increased to $1.6 billion. Bank of Nova Scotia fourth quarter net increased to $1.24 billion.

European indexes soared after German Chancellor Angela Merkel urges for tighter fiscal union. The French economy is estimated to grow 1% in 2012. Spanish jobless rate continues to rise in November. RBS agreed to sell its pub business to Heineken for £422 million.

Producer price inflation in the euro area eased and retail sales in Switzerland remained unchanged in October. Spanish unemployment rose for the fourth month in a row. Hungarian trade surplus was revised lower in September.

The UK indexes climbed more than 1% and extended nearly 9% in the last six days. The UK construction activity eased in November. SABMiller plans to acquire all of the shares in Foster''s Group.

Stocks in Tokyo trading extended gains in the week and the Nikkei index in the week added 5.9%. Shipping companies struggled for the third week in a row. Japanese government plans fourth additional budget in the current year.

Australian stocks gained for the fifth day in a row as commodities markets trade higher. Investors ignore the latest downgrade of the four largest banks in Australia. Rio Tinto plans to spend $3.3 billion to modernize its aluminum plant in British Columbia.

Commodities, Bonds and Currencies

U.S. bonds yield on 10-year U.S. bond closed down at 2.04% and 30-year bond decreased to 3.03%.

The U.S. dollar fell 0.4% at $1.341 to one euro and closed lower against the Japanese yen to 78.01.

Immediate delivery futures of Texas crude oil increased $0.89 to $101.09 a barrel and futures of natural gas decreased 5 cents to $3.59 per mbtu and gasoline prices increased 7.5 cents to 263.36 cents a gallon.

In metals trading, copper increased 5.95 cents to $3.59 per pound, gold added $10.70 to $1,750.50 per ounce and silver fell $0.05 to $32.70.