Gold Up 31%, Oil Surge 60%, Copper Rises 6%

123jump.com Staff
31 Dec, 2007
New York City

U.S. market index closed lower on the last day of trading in 2007, but for the year managed to rise. Nasdaq led the U.S. market averages with a rise of 9.8% followed by 6.4% rise in Dow and 3.5% in S&P 500. Brazil led the South American markets with a rise of 43%. China led the world indexes with a rise of 120% followed by 52% rise in Indonesia and 47% gain in India. Hong Kong surged 39%, its best year since 1999. Oil gained 60% and gold rose 31% in 2007.

[R]4:30PM New York, 10:30PM Frankfurt, 8:30AM Sydney[/R]


North American Markets indexes

Dow Jones Industrial Average closed down 101.05 or 0.76% to a close of 13,264.82, S&P 500 edged lower 10.13 or 0.69% to 1,468.36, and Nasdaq Composite Index traded down 22.18 or 0.83% to a close of 2,652.28. In Toronto TSX Composite gained 11.72 or 0.08% to close at 13,833.06.

In 2007, Nasdaq led the gainers with a rise of 9.8% followed by increases in Dow Jones of 6.4%, and in S&P 500 of 3.5%. TSX Index rose 7.3%, a rise for the fifth year in a row.

Of the 30 stocks in Dow Jones Industrial Average, 6 closed higher, 24 closed lower, and none was unchanged.

Verizon led the decliners in the index with a loss of 2.1% followed by losses in AT&T of 2.01%, in IBM of 1.8%, in Hewlett Packard of 1.7%, and in General Motors of 1.6%.

American Express led the gainers in the index with a rise of 2.3% followed by increases in Home Depot of 0.97%, in JP Morgan Chase of 0.9%, and in AIG of 0.6%.

Of the stocks in S&P 500, 156 closed higher, 342 fell, and 2 were unchanged.

Only one stock, Unisys, fell more than 3% and four rose more than 3%.

Fannie Mae led the gainers in the index with a rise of 4.3% followed by increases in Washington Mutual of 4.1%, in Sovereign Bancorp of 4.01%, in Freddie Mac of 4%, in CIT Group of 2.8%, and in Legg Mason of 2.7%.


Unisys led the decliners in the index with a loss of 5.4% followed by losses in Brunswick of 2.85%, in cognizant of 2.8%, in Nucor of 1.6%, in Air Products of 2.7%, and in XTO Energy of 1.4%.

South American Markets Indexes

In Latin Markets Mexico closed 0.6% lower, the only market that was open for trading on Monday.

Bovespa Index led the region in 2007 with a rise of 43% followed by 36% gain in Peru, and 13% rise in Colombia.

The Brazil currency rose 20% in 2007 against dollar, Colombian peso advanced 11%, Chilean peso increased 7.1%, and Peruvian sol 6.6%. Mexican peso declined 0.9% against dollar after losing 1.6% in 2006.

European Markets Indexes

In London FTSE 100 Index closed lower 20.00 or 0.31% to 6,456.90, in Paris CAC 40 Index decreased 13.17 or 0.23% to close at 5,614.08, and in Frankfurt DAX index also increased 28.72 or 0.36% to close at 8,067.32 in Friday’s trading. In Zurich trading SMI lower 33.73 or 0.40% to close at 8,484.46 on Friday, in the last day of trading in 2007.

Russia’s Micex index declined 1% to 1,888.86 in Friday but managed to gain 12% for the year. RTS Index dropped 0.1% to 2,290.51 and for the year rose 27.3%.

For the year Germany led the gainers in the region with a rise of 12% followed by 7% increase in Spain, 3.8% in the UK, in 1.3% in France, and 26% decline in Ireland. Russia rose 27% in its dollar denominated index.

Asian Markets

In Hong Kong trading Hang Seng index jumped 1.62% or 442.05 to 27,812.65, up 39% for the year, while the China Enterprises index of H shares rose 0.83% to 16,124.72.

Sensex in India rose 80.04 or 0.4% to close at 20,286.99 and for the year rose 47%.

China led the region with a rise of 120% followed by 52% rise in Indonesia, 47% increase in India, 39% gain in Hong Kong, 14% increase in Singapore, and 11.8% advance in Australia.

Bond Yields decreased on 10-year U.S. bonds to 4.02% and 30-year bonds to 4.45%.

[R]Commodities, Metals, and Currencies[/R]

Crude oil rose 13 cents to close at $96.13 per barrel for a front month contract, natural gas increased 11 cents to $7.502 per mBtu, and gasoline futures decreased 1.88 cents to close at 249.70 cents per gallon.

Crude oil for the year rose 60% in 2007.

Gold edged lower $4.70 in New York trading to close at $838.00 per ounce, silver closed up 2.50 cents to $14.92 per ounce, and copper for front month delivery declined 3.10 cents to 304.10 per pound and in London copper futures rose $79.50 to $6,859.50 in Friday’s trading.

Gold for the year in 2007 rose 31%, its best annual rise in twenty eight years.

Dollar edged higher against euro to $1.4594 and lower to 111.6850 yen. For the year dollar lost 11.8% against euro in 2007.




[R]4:00PM New York, 10:00PM Frankfurt - Europe stocks eased on the last day of trading in 2007.[/R]

Key European markets were closed on Monday and will be closed on Tuesday for New Year''s holiday.

The U.K. FTSE 100 dropped 0.3% in short trading session. The U.K. stocks had rallied during the last two trading weeks lifted by gains in oil stocks after the assassination of Pakistan opposition leader Benazir Bhutto and a sharp drop in U.S. oil inventories. FTSE 100 index added 11% in 2006.
Retailers traded mixed, with shares of home-improvement outlet Kingfisher sliding 2.6% while Marks & Spencer traded flat as investors mulled data about shopping patterns over Christmas as well as a slowing in U.K. mortgage lending.

In Paris, the France''s CAC 40 lost 0.2% or 13.2% to 5,614.08 led by Gaz de France SA after the company announced that it will earn $132 million less during the first quarter. The company attributed this to a lower-than-planned increase in gas rates. Shares of the company dropped 1.6%.

During the year, the French benchmark surged 1.3%, the consecutive fifth rise in a row.

Among the stocks that led the decliners in the CAC 40 index, Veolia lost 1.3% to 62.45 euros, Danone lost 1.2%, Suez edged lower 1.2%, Accor SA retreated 0.1%, but Air France-KLM Group rose 0.8%.

Exchanges in Germany and Italy were closed for trading today.

Although no trading was conducted, Germany''s DAX Index outperformed other European markets during the year. Germany led the Western European markets with a rise of 22%, Spain added 7% after rising 32% in 2006, in Paris CAC 40 rose 1.3% after adding 17.5% in 2006.

In Asia Japan closed down 11% in 2007, Hong Kong rose 39%, India surged 47%, Indonesia soared 52%, Singapore gained 14.6%, and Australia gained 11.8%.

[R]3:00PM New York, 7:00PM London - UK stock fell on Monday, recorded 3.8% rise in 2007. The British pound plunged against euro in December.[/R]

In London trading, FTSE 100 declined 0.3% or 20 at 6,456.9 led by Old Mutual in short trading session.

Loses were visible in oil stocks on Monday. BP and Royal Dutch shares fell 0.7% and 0.8% respectively. Resource shares also slipped in the red with BHP Billiton and Rio Tinto sliding 1% each while global mining giant Anglo American lost 0.6%.

Financial share declined. HSBC fell 0.3%, Lloyds TSB shed 0.7% and Barclays fell 0.5%.

Retailers traded mixed, with shares of home-improvement chain Kingfisher sliding 2.6% while Marks & Spencer traded flat as investors mulled data about shopping patterns over Christmas as well as rapid decline in the U.K. mortgage market.

Among the FTSE 100 index stocks, 44 stocks gained, 54 stock declined while the remainder remained unchanged.

The pound declined 9% in 2007 against the euro after its three year rise on the speculation that the Bank of England may have to lower the interest rates while the European Central Bank may keep interest on hold.

The London Bank three weeks ago cut its benchmark rate to 5.5% from a six-year high of 5.75%. The ECB kept its key rate at 4% on Dec. 6 citing upside risk to inflation.

The pound dropped 3.1% against euro the largest decline in four years. The pound fell to a record low of 73.89 pence this month.

Of the FTSE 100 index stocks, Friends Provident led the gainers with a rise of 2.8% followed by increases in British Energy of 2.6%, in Whitbread of 1.9%, in Hammerson of 1.6%, and in Royal and Sun Alliance of 1.5%.

Of the FTSE 100 index stocks Old Mutual led the decliners with a loss of 2.6% followed by losses in Severn Trent of 2.3%, in Taylor Wimpey of 2%, in Antofagasta of 1.9%, and in Scottish and Smith of 1.7%.

Elsewhere in Europe, the France''s CAC 40 lost 0.2% or 13.2 to 5,614.08. In 2007 the French benchmark rose for the fifth year in a row and managed to eke out a small gain of 1.3%.

Stock markets in Germany and Italy were closed but Germany''s DAX Index outperformed other European markets during this year. DAX index in Germany led the region with a gain of 22%. Russia led the wider region with a rise of 27%. ISEQ Index in Ireland fell 26% in the year.


[R]11:00AM New York – U.S. stocks decline on the last day of trading in 2007.[/R]

Dow Jones Industrial Average fell 36.75 to 13,329.12, Nasdaq declined 22.15 to 2,651.86, and S&P 500 lost 9.96 to 1,468.53.

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 0.4% to a seasonally adjusted annual rate of 5.00 million units in November from an upwardly revised pace of 4.98 million in October, but are 20% below the 6.25 million-unit level in November 2006.

The national median existing-home prices for all housing types was $210,200 in November, down 3.3% from November 2006 when the median was $217,300, but there remains a downward drag on the national median as the mix of closed sales has shifted away from expensive markets.

Home builders stocks were mixed after the report. Beazer Homes rose 19 cents to $7.30, D R Horton fell 14 cents to $12.96, Toll Brothers fell 33 cents to $19.73, and Lennar fell 8 cents to $17.42.

Delta Petroleum Corp ((DPTR)) soared $3.00 to $18.51 after the company received an investment from Tacinda Corporation. The private investment corporation controlled by billionaire Kirk Kerkorian will invest $684 million to acquire 36 million common stocks in the company at $19 per share at a 23% premium to the closing price on Dec 28 and a 26% premium to 30-day moving average of Delta stock price.

The company press released said the investment will permit Delta to accelerate its drilling activities in Piceance and Paradox Basins. Delta has significant drilling activities in the Gulf Coast and Rocky Mountain regions.

Baidu.com ((BIDU)) fell $5.21 to $393.90 after the company said that its chief finance officer died in an accident during holiday period.

Semiconductor Industry Association reported that November sales increased 0.7% from October or 2.3% rise from a year ago to $22.5 billion.

Merrill Lynch sold insurance unit to Aegon for $1.25 billion. Sources in Abu Dhabi and Dubai told 123jump.com that Merrill Lynch and Citigroup are in advanced talks with various government controlled entities in Abu Dhabi and Qatar for another round of capital investment. The range of proposals includes investment between $2 billion and $4.3 billion.


[R]6:00AM New York, 6:00PM Hong Kong - Hang Seng Index soars 39% in 2007./R]

Hong Kong stock averages rose driving the Hang Seng index to its best performance since 1999 on speculation the U.S. Federal Reserve will cut the key interest rate by a quarter percentage point to 4% on January 30. The index for the year surged 39%.

In Hong Kong trading Hang Seng index jumped 1.62% or 442.05 to 27,812.65, up 39% for the year, while the China Enterprises index of H shares rose 0.83% to 16,124.72.

Stock turnover reached HK$43.4billion in trading session.

Markets in Japan, China, South Korea, Philippines, Indonesia and Vietnam are closed today.

The State Council over the weekend that the new Income Tax Law and Implementation rules, through which domestic and foreign firms will be levied the same corporate tax rate at 25%, will take effect today. Online publication Standard reported the news.

Foreign-invested enterprises registered before March 16 will either receive a five-year grace period where there will be subject to a gradually increasing interest rate, or will be entitled to complete the period of tax exemption that they will be promised.

However high technology industries will be given preferential treatment if they are supported by the state and located in special economic zones or the Pudong district of Shanghai.

According to the State Council Website, companies owning intellectual property registered after January 1 will be exempted from any corporate tax for the first two years, while 12.5% will be levied in the third through the fifth year.

Governor of the People’s Bank of China, Zhou Xiaochuan said on the bank’s website in a New Year message that the central bank will maintain a tight monetary policy in 2008 using balanced monetary policy tools to manage the economy.

Property stocks in Hong Kong rose on increased speculation that the U.S. will cut its benchmark interest rate on January 30 after November sales of new homes plunged 9% to a 12-year low to an annual rate of 647,000.

Cheung Kong climbed 4.8% to HK$144.20, Sun Hung Kai Properties rose 4.15% and Hang Lung Properties edged up nearly 6%.

Energy stocks also rose as crude oil futures remained above $96 per barrel. China''s top offshore oil and gas producer Cnooc Limited rose 3% and PetroChina jumped 2%.

Oil refiner Sinopec Corp rose 0.68% to HK$11.78 after it unveiled plans to buy interests in three oil refineries and 63 petrol stations from its parent for 3.66 billion yuan.

Airliners AirChina climbed 7% and China Eastern gained 6% after Reuters reported Friday that Air China’s chairman Li Jiaxiang had been appointed chief of China’s civil aviation regulator as part of a government plan to boost the nation’s airline industry.

China Power International Development Limited announced to the Hong Kong Stock Exchange yesterday that it has agreed to buy a 25% stake of Guangzhou Power Enterprise Group Limited for 749.5 million yuan inorder to capitalize on growth in industrial production in Southern China. The agreement is subject to approval by the state controlled Assets Supervision and Administration Commission.

Bloomberg news reported today Intime Department Store, partly owned by U.S. private equity investor Warburg Pincus LLC, bought stakes in two property companies in Hangzhou, China for 1.05 billion yuan.


[R]5:00AM New York, 9:00PM Sydney- ASX 200 index rose 12% in local dollar and 25% in the U.S. dollar in 2007.[/R]

ASX 200 index lost 0.1 to close at 6,339.80.

The Preliminary market turnover was 700.152 million shares worth $1.848 billion with 617 stocks higher, 425 lower and 377 unchanged. The top traded stock was Flinders Diamonds with 138.469 million shares changing hands worth $17.386 million.

Newcrest mining was up 2.8% and Lihir added 2.3%.

Allco Finance Group today announced the launch of the first globally diversified transport and infrastructure fund ahead of schedule after receiving a commitment from a large Australian institutional investor to invest A$200 million into the fund to be known as Allco Global Transport and Infrastructure Fund.

Allco GTI will operate as an unlisted, wholesale fund that will invest in aviation, shipping, rail and targeted infrastructure assets that will seek to provide predictable absolute returns. Allco is targeting total capital commitments between $350 and $450 million from few investors.

The company said the Allco GTI team will be led by Tze Masters, as Chief Investment Officer. The Fund''s seed assets include a share of five European wind farms, direct investments in three aircraft, and a share in a portfolio of 27 ships. These assets were originally on Allco''s balance sheet.

Allco''s experience in transportation origination, financing and asset management has been built over almost 30 years. In transportation financing, Allco has financed over $60 billion of deals in transport and infrastructure assets since the company was founded in 1979.

Fortescue Metals Group Ltd''s stock lost 11% today following remarks that recent gain in the stock appear to be speculative.

Fortescue stock gained more than fivefold this year leading all stocks in the ASX 200 Index after shareholders approved a 10-for-one share split this month, which was aimed at improving liquidity and affordability.

The company is building a $2.7 billion port, iron ore mine, and rail project in Western Australia with the first shipment in May 2008.

BHP Billiton Ltd., Woodside Petroleum Ltd., and Santos Ltd scaled down oil production by half after the first tropical cyclone of the season hit the northwest coast.

BHP''s spokeswoman, Emma Meade told reporters by phone today that the mining giant had stopped oil and natural gas output at its Stybarrow and Griffin fields yesterday and was reported by Bloomberg.

Woodside''s spokeswoman Kirsten Stoney said they had stopped production at Enfield and Cossack-Pioneer and Santos''s spokesman Matthew Doman said they had shut down Mutineer Exeter field on December 29.

The officials said the shut down equates to more than 260,000 barrels a day of crude and condensate output are mostly set to end today or tomorrow.

A forecaster with the Bureau of Meteorology in Perth said the category two storm on the five-tier ranking system with winds as strong as 120 kilometers an hour is weakening and will be downgraded later today. Most cyclones are prone in the northwest Australian coastline between Broome and Exmouth. Averages of five cyclones strike the region between November and April each year.

Santos gained 0.5%, BHP fell 0.5% and Woodside was down 0.1%.

Australian leading mining companies Rio Tinto and BHP Billiton will be crowned the top performers of the year on the London Stock Exchange when trading closes for 2007.

Rio Tinto and BHP are two leading gainers in the FTSE 100 share index. Rio closed up a whopping 90% and BHP gained 69% for the year.

The dollar closed stronger on the last trading day of 2007, breaking through $0.8800 on strong private sector credit data and weak US new home sales in November. At the close the dollar was at $0.8818 up from Friday''s close of $0.8726.

Of the ASX 200 index shares, Allco Finance led the gainers with a rise of 7.6% followed by increases in Lynas Corp Limited of 6%, in Bunnings Warehouse of 4.9%, in Sino Gold Mining of 4.7%, and in Babcock & Brown of 4.6%.

Of the ASX 200 index stocks Fortescue Metals led the decliners with a fall of 11.5% followed by losses in Centro Retail Group of 6.4%, in Australand Properties of 4.1%, in James Hardie of 3.3%, and in PMP Limited of 4.3%.

In other stocks the banking sector was mixed, with Westpac gaining 0.1%, Commonwealth Bank of Australia up 0.4% and Australia and New Zealand shed 0.2%. The retailers were mixed, with David Jones adding 0.5%, Harvey Norman up 1.3% and Wesfarmers shed 0.6%.

The media sector was also mixed, with Fairfax was up 1.1%, News Corp lost 0.8% and Consolidated Media Holdings declined 1.8%.

Shares in Lincoln Minerals fell 5.26% on news it had concluded a joint venture agreement with India''s Mineral Enterprises.