U.S. Indexes Extend Record Gains, China Links HK and Shanghai Trading

Nichole Harper
10 Nov, 2014
New York City

Market indexes on Wall Street extended 3-week gains and the dollar firmed in international markets. Commodities prices edged lower and copper and gold traded at multi-year lows.

[R]12:15 PM New York – Market indexes on Wall Street extended 3-week gains and the dollar firmed in international markets. Commodities prices edged lower and copper and gold traded at multi-year lows.[/R]

Stocks on Wall Street edged higher and investors digested the 3-week run and indexes traded at new highs.

Tollbooth Index increased 0.4% or 37.76 to 9,791.

S&P 500 index increased 6.47 or 0.3% to 2,038.33 and the Nasdaq Composite Index added 16.51 or 0.4% to 4,648.95.

For the year, S&P 500 index has advanced 10% and the Tollbooth Index has gained just under 9%.

People’s Bank of China strengthened its currency following a surge in trade surplus announced on Saturday.

China raised its morning rate for Renminbi by 0.37% to 6.1377 to one dollar, the largest one-day increase since June 22, 2010 when the currency gained 0.43% after the government eliminated an informal peg to the dollar placed at the time of global financial crisis.

Separately regulators in Hong Kong and Shanghai announced that both exchanges would start securities trading link next Monday and permit foreign investors to trade on both exchanges.

On Saturday, China also announced near record trade surplus in October of $45.4 billion.

U.S. Movers

Berkshire Hathaway Inc gained $1,419 to $216,389 after the insurance and railroad conglomerate reported revenues in the third-quarter ending in September climbed 10% to $51.2 billion from a year ago period.

Net earnings in the quarter declined 10% to $2.81 billion compared to $3.07 billion from a same quarter last year.

European Markets

In London trading, FTSE 100 index increased 0.5% or 30.75 to 6,597.99 and in Frankfurt the DAX index rose 0.1% or 7.80 to 9,299.63.

In Paris, CAC 40 index gained 0.2% or 7.21 to 4,197.10.

AVEVA net plummeted 46% to £10.7 million on 21% decline in revenues.

Carlsberg profit dropped 5% to 2.10 billion kronor, Kabel Deutschland net swung to profit to €67 million and Telefonica Deutschland net swung to a loss.

Serco announced fourth full-year profit warning.

Asian Markets

Market indexes in Japan closed lower after advancing for three weeks in a row and the yen strengthened. The yen extended two-day gains to 1.2% after falling sharply in the last two weeks.

Investors stayed on the side line after market indexes surged for three weeks in a row and the yen rebounded from the losses in the last four weeks.

The Nikkei 225 Stock Average slipped 99.85 or 0.6% to 16,780.53 and the broader Topix index slid 3.56 to 1,360.11.

The yen rebounded to close at 114.10 against one dollar.

Takata plunged 17% after U.S. lawmakers demanded criminal investigation of air-bag recall crisis.

In Mumbai trading, the Sensex Index edged up 6.10 to close at 27,874.73. The CNX Nifty rose 7.25 to 8,344.25.

Adani Power Ltd dropped 2.4% to Rs 46.50 after the power producer said net loss in the second-quarter narrowed to Rs 799 crore compared to Rs 1,072 crore a year ago period and total revenue soared 36% to Rs 4,148 crore.