Global Markets and U.S. Indexes Extend Rally to Second Quarter

Bikram Pandey
02 Apr, 2012
New York City

U.S. stocks extended gains on the first day of the second quarter as the rally as the rally advances to the seventh month. Commodities advanced after manufacturing index gained but construction spending fell. European markets trimmed gains and stocks gained in new financial year in Japan and India.

[R]5:15 PM New York – U.S. stocks extended gains on the first day of the second quarter as the rally as the rally advances to the seventh month. Commodities advanced after manufacturing index gained but construction spending fell. European markets trimmed gains and stocks gained in new financial year in Japan and India.[/R]

U.S. indexes rebounded after manufacturing sector activity rose in March. The market strength was evident in most sectors today and resource producers, banks, industrials, techs and consumer durables led the gainers. U.S. construction spending fell 1.1% in February.

The Dow Jones Industrial Average rose to its highest level since December 2007, though the index lost its shine as a benchmark in the last ten years. Most professionals increasingly follow other indexes to manage assets.

Avon Products soared 17% after it rejected $10 billion cash offer from a privately held Coty. The perfume seller said it does not want to proceed if Avon rejects its friendly overtures but pressured the company to open its books that may lead to a higher offer.

In other corporate news, Glaxo raised its stake in Theravance. Global Payments third quarter net soared 21% and lifted full year revenue guidance. Groupon revised fourth quarter guidance. Express Scripts completed acquisition of Medco Health for $29.1 billion.

The European indexes lost early momentum after unemployment rose in February. Jobless rate in the euro area climbed, Danish retail sales fell and Swiss retail turnover growth eased in February. Manufacturing output contracted across the euro-zone in March.

The UK indexes soared after manufacturing activity and business sentiment rose in March and housing equity injections remained unchanged in the fourth quarter. GlaxoSmithKline increased its stake in U.S.-based Theravance.

Stocks on the first day of a new financial year in Japan gained after investors shifted focus to opportunities linked to domestic reconstruction. The latest survey of big manufacturers showed no change in sentiment in the first quarter but automakers said sentiment improved for the third month in a row.

Australian stocks edged lower after residential building approvals declined 7.8% in February from January but home prices inched higher in large cities.

Commodities, Bonds and Currencies

The yields on 10-year U.S. bond increased to 2.18% and 30-year U.S. bond edged higher to 3.32%.

The U.S. dollar edged down to $1.332 to one euro and eased against the Japanese yen to 82.07 yen in New York trading.

Immediate delivery futures of Texas crude oil increased $2.06 to $105.08 a barrel and Brent crude futures rose $2.53 to $125.41. Futures of natural gas increased 0.02 cents to $2.14 per mbtu and gasoline price rose 7.49 cents to 338.32 cents a gallon.

In metals trading, copper rose 8.9 cents to $3.91 per pound, gold added $8.20 to $1,680.10 per ounce and silver gained 49 cents to $33.54.