Weak Dollar, Stocks; Gold Rebounds

123jump.com Staff
25 Mar, 2008
New York City

U.S. stocks closed mixed at close after a rally of four days in a row. February consumer confidence declined to a five-year low after a persistent rise in food and energy cost and falling home prices. Separately, home prices in the metropolitan areas declined, for the thirteen months in a row. European makrets closed higher and Asian markets surged in the overnight trading. Argentina, Brazil and Mexico surged.

[R]10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – U.S. stocks in nervous trading closed mixed on a decline in consumer confidence and metropolitan home prices.[/R]

Global Markets Update

February consumer confidence index fell to a five-year low as rising fuel and energy prices and falling home values affected consumers. The outlook for the next six months according to index appears to be gloomy. Home prices in February declined 10.7% from January. The two measures left U.S. market averages traded lower in the morning trading hours. European markets jumped more than 2.5% and Asian markets rallied. In the overnight rally, India and Hong Kong surged above 6%.

Stock in Mumbai trading surged after a rally in Asia stocks lifted market averages across the region. Hong Kong and India led the region with a sharp rebound of more than 6%. Realty, banks and technology stocks led the gainers in Mumbai trading. Sensex gained 6.1% or 928.09. At close, the BSE 30 share closed at 16,217.49. Nifty gained 5.1% or 267.65 to close at 4,877.50 levels.

Tokyo stocks rallied on the back of higher closing in the U.S. in Monday trading. Banks and brokerage stocks led the advancing issues. In Tokyo trading, Nikkei 225 rose 2.12% or 265.13 at 12,745.22, and the broader Topix Index increased 1.5% or 18.83 to 1,242.98. Nippon Glass forecasted 20% rise in sales and 50% surge in operating profit on higher demand in the next fiscal year.

Stocks in Hong Kong surged after a revised bid for Bear Stearns and better than expected home sales in February lifted U.S. stocks. Hong Kong and Indian stock market averages led the rise in Asian markets. Hang Seng Index rose 6.43% or 1,356.30 to 22,464.52. After the close, ICBC reported a sharp rise in profit. Airline stocks gained on the speculation that newly elected government in Taiwan will open direct flight routes between the country and China.

Australian stocks surged as markets in Asia rallied. ASX 200 gained 3.7% or 190.0 to 5,318.40. The sharp rise in stocks in the U.S. on better than expected home sales in February and revised bid for JP Morgan lifted the sentiment in the region. NAB increased its home loan rate by 0.09% to 9.36%. Santos chief executive resigned. Leighton surged 9% after it won a $795 million contract to build pipeline for ONGC near Mumbai, India.

North American Markets indexes

Dow Jones Industrial Average declined 16.04 or 0.13% to a close of 12,532.60, S&P 500 closed up 3.11 or 0.23% to 1,352.99, and Nasdaq Composite Index increased 14.30 or 0.61% to a close at 2,341.05. In Toronto TSX Composite closed up 301.90 or 2.32% to 13,321.62.

Of the 30 stocks in Dow Jones Industrial Average, 15 closed higher, 15 closed lower, and none were unchanged.

Alcoa led the gainers in the index with a rise of 2.3% followed by gains in DuPont of 1.3%, in McDonalds of 1.09%, in Citigroup of 1.07%, and in Merck of 0.86%. Bank of America led the decliners in the index with a loss of 3.5% followed by losses in Home Depot of 1.9%, in JP Morgan of 1.14%, in Wal-Mart of 0.99%.

Of the stocks in S&P 500 index, 285 stocks increased, 211 declined, and 4 were unchanged. Of the stocks in the index, 19 stocks fell more than 3% and 28 gained more than 3%.

MGIC Investment led the decliners in the index with a loss of 7.6% followed by losses in Sunoco of 4.97%, in Clear Channel of 4.7%, in Valero of 4.65%, and in Public Storage of 4.63%. Monsanto led the gainers in the index with a rise of 9.07% followed by gains in General Growth Properties of 7.87%, in BJ Services 7.16%, and in US Steel of 5.05%. Weatherford Industries, Consol Energy, and Nabors added more than 4%.

South American Markets Indexes

In Latin Markets Argentina led the gainers in the region with a rise of 2.9% followed by increases in Brazil of 2.18%, in Mexico of 1.64%, and in Chile of 0.15%. Venezuela declined 0.4% and Peru fell 0.04%.

Asian Markets

In Tokyo Nikkei 225 Index closed higher 265.13 or 2.12% to 12,745.22, in Hong Kong Hang Seng index increased 1356.30 or 6.43% closed to 22,464.52. Australia ASX 200 index increased 190.90 or 3.72% to close 5,318.40. In Malaysia KL Composite index increased 28.93 or 2.41% closed to 1,229.95.

In South Korea Kospi Index increased 19.63 or 1.19% to close at 1,674.93, in Thailand SET index closed higher 13.03 or 1.61% to 820.31 and Indonesia JSE Index edged increased 80.32 or 3.43% to 2,419.62. Sensex index in India increased 928.09 or 6.07% to 16,217.49.

Commodities, Metals, and Currencies

Crude oil increased $0.64 to close at $101.50 a barrel for a front month contract, natural gas increased 10 cent to $9.43 per mBtu, and gasoline futures increased 3.93 cents to close at 268.05 cents per gallon.

Gold increased $16.30 in New York trading to close at $935.00 per ounce, silver closed up $0.69 cents to $17.80 per ounce, and copper for front month delivery increased 5.00 cents to 367.85 per pound.

Wheat futures increased 47.50 cents in Chicago trading and closed at $10.67 per bushel. Sugar increased 36.00 cent to 12.28 cents per pound. Soybean future closed up 50.00 cents to $13.07 a bushel.

Dollar edged lower and traded near a record low against euro to $1.5609 and edged higher against yen to 100.15.

Bond Yields decreased for 10-year U.S. bonds and closed at 3.51% and on 30-year bonds declined to close at 4.31%.