2-Day Rally Extends U.S. Gains to 1.8%; Greece Participation Rate at 80%

Bikram Pandey
08 Mar, 2012
New York City

U.S. indexes advanced following the gains in the European markets after Greek debt swap participation rate increased to 80% ahead of the this evening deadline. Commodities rebounded. U.S. indexes extended gains to 1.8% in the last two days.

[R]4:10 PM New York – U.S. indexes advanced following the gains in the European markets after Greek debt swap participation rate increased to 80% ahead of the this evening deadline. Commodities rebounded. U.S. indexes extended gains to 1.8% in the last two days.[/R]

The U.S. and European indexes rose in anticipation of Greek debt deal with private investors. Local media reports in Athens suggest that at least 80% of investors have agreed to the debt swap.

Indexes in New York gained 1% and in Europe advanced more than 1.5% as the participation rate in the Greek debt swap increased from 60% on the final day of the offer from the government.

In the world economic news, new jobless claims in the U.S. rose to 362,000 and German industrial output rebounded in January but Greek unemployment surged to a record 21%. Japan said current account swung to a deficit on the rising imports of fuel and French employment rate increased 0.1% in the fourth quarter. Swiss National Bank swung to profit in fiscal year 2011.

Dutch inflation remained flat in February and Australian unemployment increased to 5.2% in the month after corporation cut 15,400 jobs and strong Australian dollar hurt exporters and retailers.

In corporate news, H&R Block third quarter net loss narrowed to $3.35 million. McDonald’s February comparable sales increased 7.5%. Navistar first quarter net loss widened to $153 million. Williams-Sonoma fourth quarter net increased to $122.6 million.

Simon Property Group agreed to acquire stake in Klépierre from BNP Paribas for €1.5 billion.

The UK indexes rose ahead of Greek debt swap deadline this evening. The Bank of England retained interest rate at record low and maintained quantitative easing program. Aviva operating profit rose in fiscal year 2011.

Tokyo stocks advanced and the yen eased after current account swung to a deficit in January on rising fuel import bill. The economic growth in the quarter to December was revised to 0.7% contraction from 2.3% shrink.

Australian stocks rebounded after easing for three days in a row and dropping nearly 3% in the week.

Commodities, Bonds and Currencies

The yield on 10-year U.S. bond edged up to 2.02% and 30-year bond edged higher to 3.18%.

The U.S. dollar traded down 0.9% to $1.325 to one euro and edged up against the Japanese yen at 81.58.

Immediate delivery futures of Texas crude oil increased 62 cents to $106.78 a barrel and Brent crude rose $1.32 to $125.44.

Futures of natural gas fell 0.1 to $2.301 per mbtu and gasoline price increased 3.3 cents to 331.87 cents a gallon in New York trading.

In metals trading, copper increased 3.150 cents to $3.79 per pound, gold increased $17.80 to $1,701.70 per ounce and silver increased 28 cents to $33.87.