Oil, Profit Taking and Bond Yield

123jump.com Staff
30 Nov, -0001
New York City

after a week of stock and metal markets gains, sotkcs are on the defensive in the opening hours. Oil traders find every reason to push the prices higher and took oil in the morning trading to $60. CarMax profit is up 13% but misses the estimates of 36 cents bt 2 cents and lowers the guidance for the 2005 and 2006. Precious metals market is unchanged.

Heinz has agreed to buy HP Foods and Lea and Perrins sauce divisions from French company Groupe Danone for $852 million.

Chinese government plans to sell stake in 42 companies and raise $200 billion in the near future. However, recently listed four companies have not found investors favor. Chinese government is trying to spark the stock market by listing companies and widening investors’ base. While more than 200 companies have been listed in the Shanghai market but Chinese Government retains controlling interest through non-tradable shares.

At mid-day trading oil and gas was the only gaining sector with BG Group up 1.6%, and Shell Trading &Transport also up1.1%. Oil-sensitive stocks lost ground with British Airways going down 2.3% and Air France retreating 2.1%. Automakers Peugeot and BMW slipped 0.6% and 0.7% respectively.

Indian stock market hit all-time high of 7,000.27 before settling to 6,984 on the news that the largest private sector company Reliance Industries controlled by two Ambani brothers will be split to resolve seven-month-long family dispute. Shares of Reliance group of companies which accounts of 12% of the Mumbai stock index rose sharply.

Oil prices reached intra-day high to $60 a barrel in Europe and in New York on the traders nervousness on kidnapped oil workers in Nigeria over the week end. The traders are also concerned that U.S. refineries will not meet the rising demand for gasoline in the coming weeks. The Crude oil prices have jumped 40% since the beginning of the year and yet U.S. demand is up 3% for the year.

Asian-Pacific markets closed mixed on rising oil prices. The Japanese shares declined 0.3% after a six-session winning streak. Some oil companies made gains but others were hurt by concerns over record crude-oil prices which reached $59.02 a barrel. South Korea’s Kospi closed down 0.9% while Hong Kong’s Hang Seng rose 0.2% and the Shanghai Composite index went up 2.8%.