World Markets Shift Attention to Spain, 5-Year Anniversary in Index Records

Barry Randall
08 Oct, 2012
New York City

Financial markets in New York closed flat with a negative bias as the attention shifted to Spain and the euro zone. World Bank lowered growth estimates for developing nations in Asia. Stock market marked the five-year anniversary for the record highs in the Dow and the S&P 500.

[R]4:45 PM New York – Financial markets in New York closed flat with a negative bias as the attention shifted to Spain and the euro zone. World Bank lowered growth estimates for developing nations in Asia. Stock market marked the five-year anniversary for the record highs in the Dow and the S&P 500.[/R]

U.S. indexes traded lower and the bond was market was closed as investors shifted attention to the euro zone and Spain.

European finance ministers are gathering today to discuss how a tighter banking cooperation will overhaul the functioning of sovereign bond market and whether the member nations are ready to meet the demand from Spain if the struggling nation requests a bailout.

In merger news, UnitedHealth agreed to acquire Brazil–based Amil for $4.9 billion and Precision Castparts agreed to acquire Texas Honing. BP Plc agreed to sell its Texas City refinery to Marathon Petroleum for $2.5 billion.

Stock market today marked the five-year anniversary of the record high closes in the S&P 500 and the Dow indexes. The Dow is trailing about 4% from its record high and the S&P 500 is 7% below its peak.

Apple Inc ((AAPL)) retreated 2% again today and has been declining since it reached $700 price on September 18.

American Express and Wal-Mart Stores announced a reloadable prepaid card with no recurring fees. Navistar, truck and engine maker gained 8% after it agreed to appoint two board members representing activist investors’ interest and avoided a proxy battle.

The European indexes edged lower. Germany raised €2.42 billion in a debt auction at negative a yield.

In other economic news, the confidence improved in the euro zone in October and German exports rose unexpectedly in August. The French economy is estimated to decline 0.1% in the third quarter and Swiss jobless rate was unchanged in September.

Air France-KLM, Etihad Airways, and airberlin agreed to implement a code-share partnership to expand worldwide reach. BMW plans to increase production of its motorcycles in 2012 and 2013.

The World Bank said that larger decline in economic growth in China is possible and the bank also cut its growth outlook for developing countries in Asia.

Commodities, Bonds and Currencies

U.S. bond markets were closed for the Columbus Day and in Friday’s trading the yield on 10-year bond increased to 1.74% and on 30-year bond rose to 2.97%.

The U.S. dollar inched lower to $1.297 to a euro and decreased against the Japanese yen to 78.25 yen.

Immediate delivery futures of Texas crude oil fell 21 cents to $89.68 a barrel and Brent crude increased 12 cents to $112.17, futures of natural gas increased 0.009 cents to $3.41 per mbtu and gasoline price traded lower 4.95 cents to 290.30 cents a gallon.

In metals trading, copper decreased 5.20 cents to $3.72 per pound, gold decreased $3.90 to $1,776.90 per ounce and silver decreased 53 cents to $34.10.