Stocks on Wall Street Advance, Standard Chartered Faces Laundering Charges

Bikram Pandey
06 Aug, 2012
New York City

Market indexes in New York closed higher after earnings exceeded expectations and energy and metals prices rose. Standard Chartered Bank is the second UK based bank to face money laundering charges in New York.

[R]4:30 PM New York – Market indexes in New York closed higher after earnings exceeded expectations and energy and metals prices rose. Standard Chartered Bank is the second UK based bank to face money laundering charges in New York.[/R]

Stocks on Wall Street traded higher and the advances in technology and energy sectors led the gainers.

Banks were under pressure after a New York regulator alleged UK based Standard Chartered Plc compromised U.S. financial system and laundered money for Iranian banks and central bank between 2001 and 2007 that were worth $250 billion. The regulator has asked the New York based unit to appoint an independent onsite monitor to oversee its operation in the state.

Investors are scheduled to review the international trade, wholesale trade inflation and 30-year bond auction and a barrage of earnings from retailers.

Best Buy founder offered to take the company private. Cognizant Technology soared 11% after it revised higher its adjusted profit outlook and HCA Holdings net soared 71%. The AES second quarter net dropped 19.5%.

The European indexes traded higher and Greek negotiations enter the next phase. Italy is set to approve additional spending cuts and investors speculated on the Spanish bailout. The UK home prices fell, German construction sector and the EU productivity declined.

Stocks in Tokyo surged following the market advance last week in Europe and New York. Taiwan based Hon Hai Precision said it does not have to carry out investment in Sharp after the latest price volatility. Nippon Sheet Glass Co Ltd extended losses for the second day.

Australian markets traded higher following a surge in Friday’s trading in New York and in Europe. Commodities gained in Asian trading and the dollar held firm against the U.S. dollar. Harvey Norman estimated a 40% decline in annual net. Fortescue Metals arranged short term $1.5 billion loan.

Commodities, Bonds and Currencies

The yield on 10-year bond traded lower to 1.56% and on 30-year bond edged lower to 2.65%.

The U.S. dollar inched lower to $1.241 to a euro and increased against the Japanese yen to 78.2 yen.

Immediate delivery futures of Texas crude oil increased 76 cents to $92.13 a barrel and Brent crude added 74 cents to $109.68, futures of natural gas increased 3 cents to $2.91 per mbtu and gasoline price decreased 0.33 cents to 292.77 cents a gallon.

In metals trading, copper increased 2.2 cents to $3.39 per pound, gold rose $6.30 to $1,615.60 per ounce and silver added 11 cents to $27.92.