Republicans Offer $2.2 Trillion Deal, Honda Leads November Auto Sales Advance

Bikram Pandey
03 Dec, 2012
New York City

U.S. indexes closed lower after manufacturing index fell unexpectedly. Republican proposed $1.4 trillion in spending cuts and $800 billion in tax revenues from limiting tax breaks. Auto sales in November were ahead of expectations and Honda led the industry with 39% surge.

[R]4:00 PM, New York – U.S. indexes closed lower after manufacturing index fell unexpectedly. Republican proposed $1.4 trillion in spending cuts and $800 billion in tax revenues from limiting tax breaks. Auto sales in November were ahead of expectations and Honda led the industry with 39% surge.[/R]

U.S. indexes opened higher and lost ground after the latest manufacturing survey showed an unexpected contraction in November.

The U.S. factory index tracked by Institute for Supply Management declined to 49.5 in November from 51.7 in previous month.

Separately, a private survey in China indicated manufacturing improved to a 7-month high and Greece proposed to buy back its bonds at a higher price as a part of the deal get the next tranche of aid and cut its total debt.

Auto sales in November increased to annual rate of 15 million and Honda led the industry with the surge of 39% from a year ago. Ford sales increased 6.4% and GM sales rose 3.4%. Chrysler sales increased 14% and Toyota sales rose 17%.

In corporate news, Saputo agreed to acquire Morningstar Foods for $1.45 billion. CSC agreed to sell credit services business to Equifax for $1 billion. UBS is said to near an agreement with American and British regulators to settle rate fixing charges for $450 million.

The European indexes edged traded higher after a private survey showed improving manufacturing in China. The downturn in the euro zone manufacturing sector eased in November. Greece announced €10 billion debt buyback program.

Cable & Wireless agreed to sell its Monaco and Islands businesses to Bahrain Telecommunications for $680 million. EADS confirmed plans for potential changes in the company shareholding structure and corporate governance.

Australian stocks extended gains for the second day in a row after a flood of economic data offered a mixed picture. Manufacturing sector shrank for the eighth month in a row and home prices were flat last month. Retail sales were flat after rising 0.5% in September.

Commodities, Bonds and Currencies

U.S. treasury yield on 10-year bond fell to 1.62% and on 30-year bond rose to 2.80%.

The U.S. dollar inched lower to $1.303 to a euro and increased against the Japanese yen to 82.26 yen.

Immediate delivery futures of Texas crude oil increased 3 cents to $88.91 a barrel and Brent crude fell 44 cents to $110.78, futures of natural gas increased 3 cents to $3.59 per mbtu and gasoline traded down 0.56 cents to 272.41 cents a gallon.

In metals trading, gold increased $8.40 to $1,721.10 per ounce and silver increased 43 cents to $33.71 and copper closed up 0.2 cents to $3.651 a pound.