U.S. Markets Breakout, World Markets Fall on Italian Uncertainties

Bikram Pandey
26 Feb, 2013
New York City

Stocks on Wall Street closed higher after housing market reports showed another month of improving data and consumer confidence gained. Markets in Europe fell sharply after Italian general elections failed to deliver a governing majority to a single party.

[R]5:15 PM New York – Stocks on Wall Street closed higher after housing market reports showed another month of improving data and consumer confidence gained. Markets in Europe fell sharply after Italian general elections failed to deliver a governing majority to a single party.[/R]

Stocks on Wall Street rebounded after latest data on housing market showed an improvement and consumer confidence also jumped to the level last seen in November.

Two separate reports on the housing market indicated a surge in new homes sales to the level last seen in 2008 and home prices in 20 largest cities gained at the fastest pace in more than six years.

The large increases in new home sales annual rate is not sustainable but offered another signal in the uneven and improving housing sector.

In addition, positive earnings results from Home Depot and Macy’s also contributed to positive sentiment.

In addition, American Tower fourth quarter net plunged 34% and AutoZone second quarter net climbed 6%. Macy’s fourth quarter net fell 2% and Saks net plunged 45%. Home Depot net surged 32% and Tenet Healthcare net swung to a $45 million profit.

European markets declined after fears of euro zone crisis resurfaced. Italian general election led to a hung parliament as voters reject austerity of 15 months under Prime Minister Mario Monti.

BASF fourth quarter net declined 13.4% and for the year net plunged 21%. Pandora plans to buy back 700 million kroner of shares this year. Vivendi earnings for the year tumbled 94%.

Blue Dart fourth quarter net jumped 101%. Kalindee Rail extends losses ahead of railway budget. Pantaloon net swung to a loss and Ranbaxy quarterly loss narrowed. Sanofi India net jumped 24%. Kingfisher relinquishes international flight rights.

Stocks in Tokyo dropped and the yen advanced against the euro and the dollar after Italy headed for a hung parliament. Japan Tobacco eased 0.7% after the government filed to lower its stake to raise as much as $10 billion.

Australian stocks closed higher but pared gains after the spot iron ore price declined 1.1% despite the port closures in Western Australia. QBE reported full-year net increased 8%. Flight Center reported record first half net with an increase of 13%. Ramsay Health Care net rose 10%.

Commodities, Bonds and Currencies

The yield on 10-year U.S. bond increased to 1.88% and 30-year bond advanced to 3.08%.

The U.S. dollar traded up 0.2% to $1.305 to one euro and edged up against the Japanese yen at 91.99.

Immediate delivery futures of Texas crude oil fell 40 cents to $92.69 a barrel and Brent crude declined $1.63 to $112.80.

Futures of natural gas fell 2 cents to $3.43 per mbtu and gasoline price decreased 7.1 cents to 299.66 cents a gallon in New York trading.

In metals trading, gold increased $26.80 to $1,613.40 per ounce and silver added 36 cents to $29.41.