Gold and Oil Record High

123jump.com Staff
02 Jan, 2008
New York City

Gold jumped $22 in New York trading to the close of $860 per ounce inching close to a record high of $873. Silver, copper and other metals edged higher too. Wheat and soubeans jumped more than 3% on the rising inflation and falling dollar. Gold jumped 31% and silver rose 22% in 2007.

[R]5:00PM New York, 11:00PM Frankfurt, 9:00AM Sydney[/R]

North American Markets indexes

Dow Jones Industrial Average closed down 220.86 or 1.67% to a close of 13,043.96, S&P 500 edged lower 21.20 or 1.44% to 1,447.16, and Nasdaq Composite Index traded down 42.18 or 1.61% to a close of 2,609.63. In Toronto TSX Composite gained 93.70 or 0.68% to close at 13,926.76.

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, 1 closed higher, 29 closed lower, and none was unchanged.

Intel led the decliners in the index with a loss of 5% followed by losses in AIG of 3.4%, in JP Morgan of 3.4%, in IBM of 3.2%, and in Home Depot of 3.1%.

Pfizer was the lone the gainers in the index with a rise of 0.8%.

Of the stocks in S&P 500, 68 closed higher, 429 fell, and 3 were unchanged.

One hundred and sixteen stocks fell more than 3% and eight rose more than 3%.

LSI Corp led the decliners in the index with a loss of 8.1% followed by losses in Supervalu of 7.9%, in Fannie Mae and Textron of 6.3%, in U.S. Steel of 6%, in Starbucks of 5.7%, in Robert Half of 5.5%, in National Semiconductor of 5.4%, and in Parker Hannifin of 5.35%.

Newmont Mining led the gainers in the index with a rise of 7.3% followed by gains in Amzon.com of 3.9%, in Becton Dickinson of 3.8%, in Dynegy of 3.8%, and in Humana of 3.7%.

South American Markets Indexes

In Latin Markets Mexico led the decliners in the region with a loss of 2.9% followed by losses in Chile of 1.8%, in Brazil of 1.7%, in Peru of 1.2%, and in Colombia of 0.4%.

Venezuela and Argentina closed nearly unchanged.


European Markets

In London FTSE 100 Index closed lower 40.00 or 0.62% to 6,416.70, in Paris CAC 40 Index decreased 63.72 or 1.14% to close at 5,550.36, and in Frankfurt DAX index also increased 118.21 or 1.47% to close at 7,949.11. 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.

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 Hang Seng index closed lower 252.13 or 0.91% to 27,560.52, in Australia ASX 200 closed increased 13.10 or 0.20% to close 6,353.10. Financial markets in Tokyo were closed today.

In South Korea Kospi Index close at decreased 43.68 or 2.30% to close at 1,853.45, in Thailand SET index closed lower 13.83 or 2.19% to 616.90, and Indonesia JSE Index decreased 14.32 or 0.52% to 2,731.51. Sensex index in India closed higher 164.59 or 0.81% to 20,465.30.

China led the region in 2007 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 3.90% and 30-year bonds to 4.35%.

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

Crude oil rose $3.320 to close at $99.30 per barrel for a front month contract, natural gas increased 37 cents to $7.859 per mBtu, and gasoline futures increased 7.22 cents to close at 256.30 cents per gallon.

Crude oil for the year rose 60% in 2007.

Gold surged higher $22.00 in New York trading to close at $860.00 per ounce, silver closed up 37.00 cents to $15.29 per ounce, and copper for front month delivery increased 2.30 cents to 306.40 per pound and in London copper futures fell $159.50 to $6,650.50.

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

Dollar edged lower against euro to $1.4715 and lower to 109.7120 yen. For the 2007 dollar lost 11.8% against euro.



[R]11:00AM New York – U.S. stocks lost its earlier gains after the manufacturing report and rise in oil and commodities prices.[/R]

Dow Jones Industrial Average fell 117.05 to 13,151.86, Nasdaq declined 14.18 to 2,638.10, and S&P 500 lost 8.98 to 1,459.38.

The manufacturing index published by the Institute of Supply Management fell to 47.7 in December from 50.8 in November. The index level below 50 suggests a decline in manufacturing activity. The index of prices paid by manufacturers rose to 68 from 67.5.

Market averages quickly changed its course and lost their gains in the first 30 minutes of trading to losses.

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during November 2007 was estimated at a seasonally adjusted annual rate of $1,165.1 billion, 0.1% above the revised October estimate of $1,163.6 billion. The November figure is 0.1% below the November 2006 estimate of $1,166.3 billion. During the first 11 months of this year, construction spending amounted to $1,076.2 billion, 2.5% below the $1,103.9 billion for the same period in 2006.

Amazon.com ((AMZN)) gained $3.62 to $96.26 after an analyst at Citigroup revised rating on the company to ‘buy’ from ‘hold’.

Oil jumped $2.00 to $97.98 a barrel, gold surged $12.60 to $850.60, corn front month futures rose 2.6%, and wheat front month futures increased 3.4%.

Restaurant stocks declined in the morning trading after investors worried that rising oil prices will hurt consumer spending. Cheesecake Factory ((CAKE)) fell $1.61 to $22.08, Darden Restaurants Inc declined 74 cents to $26.97, and P F Chang’s China Bistro fell $1.02 to $21.82.


[R]10:00AM New York, 7:30PM Mumbai - Sensex stocks opened the year with a rise of 0.80%.[/R]

The 30-share BSE Sensex index closed up 0.8% to 164.59 at 20,465.30. During the day, the index traded in a range of 450 points.

The broader CNX S&P Nifty was up 0.8% or 35.05 at 6179.40. Banking stocks rebounded from earlier loses while software shares were subdued.

Of the stocks traded on the BSE, 1,974 shares advanced on the Bombay Stock Exchange 934 shares fell, and 13 remained unchanged. Turnover on BSE amounted to 10,984 crore rupees while turnover on the National Stock Exchange was at 22,655 crore rupees.

Of the Sensex shares, 16 advanced while the rest declined.

Market regulator SEBI is reviewing the 10% limit on stake held by directors or key management personnel in a company, proposed to be brought under the insider trading regulation.

The SEBI also proposed that company insiders should surrender profits made in any equity-based securities transactions of the company that is sold within six months of purchase.

Reliance Energy rose 4.09% to 2,372.10 rupees. It led the advancers in the Sensex index on news reports that Reliance Power is planning to raise $3 billion through the initial public offering of 26 crore shares at a price between 405 rupees to 450 rupees per share. Reliance Energy will lower its holding in Reliance Power to 50% from the current 100%.

Housing Development Finance Company gained 3.8% to 3,030 rupees. HDFC recently agreed to sell 7.15% stake in its life insurance joint venture - HDFC Standard Life Insurance Company a Mauritius based company, to Standard Life for 201 crore rupees.

State Bank of India advanced 1.2% to 2,413.20 rupees, ICICI Bank surged 3.4% to 1,273 rupees.


[R]6:00AM New York, 6:00PM - Hong Kong stocks declined on the first day of trading in 2008.[/R]

Stocks in Hong Kong declined as investors were wary pressures will mount on the U.S. dollar on speculation the U.S. Federal Reserve will cut interest rates on January 30.

In Hong Kong trading Hang Seng Index declined 1.24% or 346.13 to 27,466.52.

Turnover on the main board crossed HK$43.88 billion by mid-day, compared to HK$43.4 billion recorded during Monday''s half-day session.

The Hong Kong dollar is pegged at HK$7.80 to one U.S. dollar.

China Railway and China Communications Construction both rose 5% on expectations that infrastructure activities in China will increase in the coming years.

Property companies fell on expectations that a rate cut by the U.S. Federal Reserve might put pressures on the U.S. dollar. Hang Lung Properties declined 3.4%, Sun Hung Kai Properties tumbled 0.12 % and Cheung Kong plummeted 0.83 %.

Commodity stocks tumbled on falling metal prices. Datang Power, Chalco and Yanzhou Coal plunged as a result. However coal-mining company Hidili Industry International Development rose 1.84 % after the company said it will buy mining rights of three coal mines in Guizhou province for Rmb355 million.

MTR Corp climbed down from a record HK$30.75 before closing the morning up 5.75% at HK$30.35 as a result of its merger with Kowloon-Canton Railway Corp December.

China National Aviation Corporation, the parent company of Air China, announced in a statement last night that China Eastern and Singapore Airlines Limited should renew talks. CNAC also suggested that the current offer from Singapore Airlines at HK3.80 per share is below the fair value of the company.

CNAC also rejected the anti-dilution rights and non-competitive clause proposed by Singapore Air. Singapore Airlines in early September had agreed to buy a 24% stake worth HK$7.16 billion in China Eastern. China Eastern edged up 2.2% after the comments.

The Standard, an online edition, reported today that Emperor Capital Group managing director Daisy Yeung said today the company has entered into a strategic business tie-up with Jakarta-listed brokerage Hortus Danavest to tap into the Indonesian firm’s 20,000 clients.

Yeung said the company will provide online trading services, while Emperor’s clients will be able to trade Indonesian stocks through Hortus, which has a daily turnover of HK$10 million.

Separately, Emperor Capital Group recorded revenues increase of 33.7% from the previous year to HK$80.9 million for the six months ended September.

Henderson Land Development director John Yip Ying-chee said the company is expected to accelerate earnings beginning 2012 and its current land bank in the mainland China now stands at 120 million square feet.

In other Asian markets, ASX 200 in Australia increased 13.10 or 0.20% to close at 6,434.10. Financial markets in Tokyo were closed today.

In South Korea Kospi Index close at decreased 43.68 or 2.30% to close at 1,853.45, in Thailand SET index closed lower 13.83 or 2.19% to 616.90, and Indonesia JSE Index decreased 14.32 or 0.52% to 2,731.51. Sensex index in India increased 164.59 or 0.81% to close at 20,465.30.

[R]5:00AM New York, 9:00PM Sydney - ASX 200 index rose 0.2% after gains in resource stocks.[/R]

ASX 200 index gained 0.2 to close at 6,353.20.

The Preliminary market turnover was 468 million, worth $902.9 million with 464 stocks moving up, 381 moving down, and 316 unchanged.

The most actively traded stock was Flinders Diamonds with 89.7 million shares changing hands worth $12.45 million.

BHP Billiton added 0.4% and Rio Tinto was up 0.04%.

Centro Properties Group''s share rose 3% today after the group said that several groups are interested in its assets. Chairman Brian Healey said that the group was widening the scope to invite other parties into discussions. He said expressions would be sought for a `whole of group review'' including recapitalization, equity issuance or sale of Centro.

Centro last month indicated that it is willing to sell all its assets including its 700 malls in the United State as it struggles to raise money to refinance its A$3.9 billion ($3.4 billion) of debt. It has up to February 15 to refinance the debt. The Group also invited bids for stakes in his Australian and U.S. wholesale funds, which Centro values at a combined $3.7 billion.

Lion Nathan today announced that it has received clearance from the Australian Foreign Investment Review Board (FIRB) for its A$325 million ($286 million) purchase of Tasmanian brewer J. Boag & Son Pty Limited (Boag) from Philippines based San Miguel Corporation.

Lion Nathan also announced that Foster''s Group Limited has agreed to complete the sales of Boag mainland Australia distribution from June 2008 to January 2008.

Boag will pay Foster''s $6.4 million for the early termination of the distribution agreement and Lion Nathan will assume control of Boag mainland distribution in mid-January.

Felix Resources Ltd today indicated that South Korea''s biggest power producer, Korea Electric Power Corporation and partners have agreed to pay $90 million (US$79 million) for 10% of its coal project in Australia.

According to a letter from Felix Resources Ltd to its shareholders, the South Korean investors will also pay for 10% of the development costs for the Moolarben project in New South Wales State.

In addition the Korean investors also agreed to negotiate to buy at least 2.8 million metric tons of coal a year for the life of the mine, which has approval to produce as much as 10 million tons annually.

Apart from the Korea Resources Corporation, the other members of the group include four of Korea Electric''s units. South Korea is boosting investments overseas as competition with China, Japan and India for raw materials intensifies. The Asian country imports almost all its energy and minerals needs,

Xstrata Plc today announced that the proposed $2 billion copper and gold mine was attacked by communist rebels yesterday. Xstrata''s spokesman Roy Antonio said New People''s Army, the military arm of the Communist Party of the Philippines, attacked an army detachment outside the mine at 4 a.m. local time before entering the property and burning some buildings. No one was injured in the attack.

The Xastra controlled mine is the largest mining project underway in the Philippines and its attack could hurt the government''s attempt to lure more investors. Xstrata with 62.5% and Australia''s Indophil Resources Ltd with 34.1% jointly own the project. Indophil fell 3.6%.
The Australian dollar closed at $0.8797/00, down from Monday''s close of $0.8816/20. During the day, the domestic currency traded between a low of $0.8758 and a high of $0.8807.

Of the ASX 200 index shares, Fortescue Metals led the gainers with a rise of 8% followed by increases in APN News & Media of 5.7%, in Centro Retail Group of 5.3%, in AED Oil Limited of 4.5%, and in Seek Limited of 3.5%.

Of the ASX 200 index stocks Macquarie DDR led the decliners with a fall of 3.9% followed by losses in Flight Centre of 2.9%, in Bradken of 2.7%, in Bunnings Warehouse of 2.6 and in Sino Gold mining of 2.5%.

In other stocks the banking sector was mixed, with ANZ gained 0.4%, Westpac rose 0.5% following the opening a branch in Shanghai after Chinese regulators granted it a financial license, Commonwealth Bank of Australia declined 0.5%, and the National Australia Bank lost 0.8%.

The energy sector was also mixed, with Woodside gaining 1.1% and Santos adding 1.4%.

In the gold sector Newcrest Mining was up 2.1%.

Retailers stocks were mixed, with Woolworths rising 0.03%, Wesfarmers gaining 0.6%, Harvey Norman losing 1.8%, and David Jones declining 0.4%.

In the media sector Consolidated Media Holdings added 1.9%, News Corporation 0.9% and its non-voting shares dropping 15 cents to $23.23 and Fairfax declined 0.6%.