U.S. and World Markets Rally on Bernanke Comments

Nichole Harper
11 Jul, 2013
New York City

U.S. stocks traded higher after Fed Chairman Bernanke comments. Stocks, bonds, metals and energy prices gained after a rally in world markets. Fewer homes entered foreclosure process in June. SEC lifted an 80-year ban on advertising restrictions on hedge funds seeking private investments.

[R]1:45 PM New York – U.S. stocks traded higher after Fed Chairman Bernanke comments. Stocks, bonds, metals and energy prices gained after a rally in world markets. Fewer homes entered foreclosure process in June. SEC lifted an 80-year ban on advertising restrictions on hedge funds seeking private investments.[/R]

Stocks, bonds, metals and energy futures rallied after a reassurance from Fed Chairman Bernanke lifted world markets sentiment.

The S&P 500 index jumped 1% and traded near its record high and the Nasdaq Composite Index gained 1.2%.

U.S. Treasuries gained and 10-year bond yield declined 3 basis points to 2.60% and gold jumped 2% and emerging markets advanced.

U.S. weekly jobless claims increased to a 2-month high of 360,000 at the end of last week, Labor Department said today in Washington.

The weekly claims are volatile and need adjusting because of several plant closures in the Midwest and in Western states.

The latest minutes of Fed meeting showed about half of policy committee participants prefer the end the monetary easing by the end of the year. However, other participants preferred to see a marked improvement in the jobs market before any taper begins.

Fewer homes entered in the foreclosure process, according to the data released by Realty Trac Inc.

Lenders initiated foreclosure process on 57,286 homes last month, the smallest number of homes in more than seven years. In the year to December, 800,000 homes are expected to enter foreclosure process.

The number of homes entering in foreclosure in June declined 21% from May and about 45% lower from a year ago month.

European Markets

European markets traded higher after Fed Chairman Bernanke reassurance that monetary policy will stay in place for a while.

In London, FTSE 100 index increased 0.6%, in Frankfurt DAX index gained 1.1% and CAC 40 index added 0.7%.

Banks in Portugal dropped more than 5% after President Anibal Cavaco Silva recommended the end of austerity program in June 2014 coinciding with the start of the election process.

Asian Markets

Markets in Asia traded higher and Nikkei index in Tokyo soared at opening but closed up 0.4% and indexes in Mumbai and in Hong Kong gained 2% and 2.5% respectively.

Rupee edged lower and dropped below 60 against a dollar after the central bank took steps to curb speculation in the derivatives market.