U.S. Stocks Rebound on Bill Expectations

123jump.com Staff
30 Sep, 2008
New York City

The benchmark indexes surged 5% in the U.S. and 2% in Europe on the hopes that the historic U.S. intervention of $700 billion will be approved before the end of the week. Crude oil gained but in the third quarter dropped nearly 30%. The dollar fell but rebounded and closed higher on a late surge.

4:30PM New York, 10:30AM Frankfurt, 6:30AM Sydney[R]– U.S. stocks rebounded on the hopes that legislators will pass a revised bailout plan. U.S. indexes jumped more than 3%. European markets gained as well.[/R]

Global Markets

U.S. Stocks closed sharply higher on the hopes that the Congress will pass a revised bailout plan. European markets closed higher. Banks and brokerage companies stocks rebounded on a speculation that amended bailout plan will be approved soon. Second Belgian bank in as many days sought and received government bailout. Dexia SA, the Belgian bank will receive an emergency financing of 6.6 billion euros after Fortis needed 11.2 billion from the government.

Stocks in Japan and Asia fell after U.S. benchmarks suffered one of the sharpest declines in the recent decades. The Japan stock benchmark dropped 4% as financials fell. Mitsubishi UFJ invests $9 billion in Morgan Stanley. The investment of $3 billion in common stock is down 20% from the purchase.

Stocks in India recovered from earlier loss as investors focus on domestic economy. Sensex gain leads the regional markets trading. India current account deficit rose to nearly $11 billion as crude oil import bill surges. ICICI Bank rebounded in a volatile trading.

UK stocks rebounded after a record one-day loss in trading on Monday in recent times. The financial stocks rebounded on the hopes that the U.S. will act soon on the troubled bailout plan. Tesco reported 13% rise in sales in the first half and 11% increase in earnings.

China markets recovered from earlier losses in the day and managed to close higher. The HKMA added liquidity to the system and issued revised guidelines for collateral requirements from Monday. Banks closed higher in trading. Shipping companies fell as freight index declined.

Australian stocks closed sharply lower after historic losses in the U.S. market indexes. Australia added liquidity in the system in coordination with the central banks in Europe and the U.S. Of the stocks in ASX index, 158 declined. Australian dollar fell against the U.S. dollar and crude oil dropped 10%.

North American Markets

Dow Jones Industrial Average recovered 485.21 or 4.7% to a close of 10,850.66, S&P 500 Index closed up 58.32 or 5.27% to 1,164.74, and Nasdaq Composite Index added 98.60 or 4.97% to close at 2,082.33. In Toronto TSX Composite closed up 467.83 or 4.15% to 11,752.90.

Of the 30 stocks in Dow Jones Industrial Average 29 closed higher and 1 closed lower.

Bank of America led gainers in the index with a rise of 15.7% followed by gains in Citigroup of 15.6%, in JP Morgan Chase of 14%, in General Motors of 11%, in General Electric of 10.4% and in American Express of 8.9%.

Caterpillar was the lone decliner in the index with a loss of 0.5%.

Of the stocks in S&P 500 index, 454 increased, 43 declined and 2 were unchanged. Of the index stocks, none rose more than 3% and 460 fell more than 3%. And 163 stocks plunged more than 10%.

Wachovia Corp led gainers in the S&P 500 index with a rise of 90.2% followed by gains in Genworth Financial of 72.2%, in Sovereign Bancorp of 69%, in AIG of 33.2%, in Fifth Third Bancorp of 30.6%, in State Street Corp of 29.3%, in First Horizon of 29.1% and in National City Corp of 29%.

Hartford Financial Services led the decliners in the S&P 500 index with a loss of 18% followed by losses in Google Inc of 10.4%, in Family Dollar Stores of 5.7%, in Intuitive Surgical of 4%, in Supervalu Inc of 4%, in Whirlpool Corp of 3.97%, in Embarq Corp of 3% and I Big Lots Inc 2.96%.

South American Markets Indexes

Brazil led gainers in the region with a rise of 7.6% followed by increase in Chile of 5.6%, in Mexico of 3.9%, in Argentina of 3.4% and in Peru and Colombia of 1.2%.

Venezuela traded down 0.4%.

Europe Markets Review

In London FTSE 100 Index closed higher 83.70 or 1.74% to 4,902.50, in Paris CAC 40 Index increased 78.62 or 1.99% to close at 4,032.10 and in Frankfurt DAX index higher 23.94 or 0.41% to close at 5,831.02. In Zurich trading SMI increased 154.76 or 2.38% to close at 6,654.89.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 483.75 or 4.12% to 11,259.86, Hang Seng index in Hong Kong increased 135.53 or 0.76% closed to 18,016.21. ASX 200 index in Australia decreased 206.90 or 4.30% to close 4,600.50. The KL Composite index in Malaysia lower 1.04 or 0.10% closed to 1,018.68. Market of China was closed today.

The Kospi Index in South Korea decreased 8.30 or 0.57% to close at 1,448.06, SET index in Thailand closed lower 4.75 or 0.79% to 596.54 and JSE Index in Indonesia decreased 13.58 or 0.74% to 1,832.51. The Sensex index in India increased 264.68 or 2.10% closed to 12,860.43.


Commodities, Metals, and Currencies

Crude oil increased $4.97 to close at $101.34 a barrel for a front month contract, natural gas increased 26 cent to $7.48 per mBtu and gasoline futures increased 4.75 cents to close at 247.36 cents per gallon.

Wheat futures closed up 12.00 cents in Chicago trading and closed at $6.80 a bushel. Sugar decreased 0.23 cent to 13.66 cents a pound. Soybean future closed down 49 cents to $10.45 a bushel.

Gold decreased $25.80 in New York trading to close at $868.60 per ounce, silver closed down $1.025 cents to $12.00 per ounce and copper for the front month delivery decreased 0.075 cent to $2.89 per pound.

Dollar edged higher against euro to $1.4072 and gained against yen to 106.32.

Yields on 10-year U.S. bonds increased to 3.83% and increased to 4.32% with 30-year of maturities.