Miners Rebound, Weak Banking Stocks

123jump.com Staff
03 Mar, 2009
New York City

U.S. stocks edged higher but stocks in Europe traded lower as banks drag market indexes. Markets in South America and Canada rose on a rise in metal prices.

[R]5:00PM New York – 11:00PM Frankfurt, 4:00AM Sydney – U.S. stocks edged higher but stocks in Europe traded lower as banks drag market indexes. Markets in South America and Canada rose on a rise in metal prices.[/R]

U.S. stocks edged lower for the fifth day in a row as banking system remains weak. Fed Chairman Bernanke urged U.S. Congress to release more funds to stabilize banking system and toughen the regulatory oversight. Miners gained on a rise in copper price on the speculation that China will resume purchasing copper in the international markets.

U.K. construction activity falls in February. Northern Rock residential mortgages portfolio declines 27% to £66.7 billion in 2008. In London the benchmark index FTSE 100 index fell 3% after dropping 5% in the previous session. Insurance and banking stocks led decliners.

Japan stock indexes fell after automaker Toyota Motor Corp. asked for an emergency bailout package from the Japan Bank for International Cooperation as slowing global demand continue to affect production and squeeze margins. Toyota asks for $2 billion loan.

Hong Kong property sales fall 12.4% to February. HSBC fell 18.8% or $17 billion in market capitalization after it reported a sharp drop in earnings and offered to raise nearly $18 billion at 51% discount from the stock price.

Stock prices declined after foreign investors sold stocks and repatriated capital to home market. The benchmark index declined more than 2% for the second day in a row. The foreign fund outflow is expected to rise as emerging markets remain depressed.

Australia keeps interest rates unchanged at 3.25%. Australia retail sales increase 0.2% to A$19.2 billion in January. Current account deficit falls 32% to A$6.5 billion in December quarter.

American Markets Reviews

Dow Jones Industrial Average decreased 37.3 or 0.6% to a close of 6,726.02, S&P 500 Index declined 4.49 or 0.6% to 696.33, and Nasdaq Composite Index edged lower 1.84 or 0.1% to a close of 1,321.01. In Toronto TSX Composite declined 55.89 or 0.7% to close at 7,631.62.

In Latin American trading, Mexico Bolsa Index increased 163.45 or 0.97% to 17,093.25 and Brazil Bovespa Stock Index increased 0.6% or 232.87 to 36,467.56.

Argentina dropped 1.4%, Chile decreased 0.4%, Peru increased 1.4% and Colombia added 0.5%.

U.S. Stock Movers

Of the stocks in S&P 500 index, 197 increased, 299 declined and four were unchanged.

American Capital led the decliners in the S&P 500 index with a loss of 37% followed by losses in Gannett Company of 24%, in Manitowoc Company of 23%, in Developers Diversified of 17%, in MetLife of 17%.

Verisign Inc led gainers in the S&P 500 index with a rise of 8% followed by gains in Dell Inc of 8.5%, in AK Steel Holdings of 8%, in Cabot Oil & Gas of 7.9% and in Autozone Inc of 7.8%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 50.43 or 0.69% to 7,229.72, Hang Seng index in Hong Kong decreased 283.58 or 2.30% closed to 12,033.88, CSI 300 index in China lower 22.51 or 1.04% closed to 2,142.15. ASX 200 index in Australia decreased 30.90 or 0.95% closed to 3,219.20. The KL Composite index in Malaysia lower 7.82 or 0.89% closed to 868.74.

The Kospi Index in South Korea increased 6.76 or 0.66% to close at 1,025.57. SET index in Thailand closed lower 3.43 or 0.82% to 413.09 and JSE Index in Indonesia increased 8.71 or 0.69% closed to 1,264.82. The Sensex index in India decreased 179.79 or 2.09% closed to 8,427.29.

Europe Markets Review

In London FTSE 100 Index closed lower 113.74 or 3.14% to 3,512.09, in Paris CAC 40 Index decreased 26.91 or 1.04% to close at 2,554.55 and in Frankfurt DAX index lower 19.35 or 0.52% to close at 3,690.72. In Zurich trading SMI decreased 80.27 or 1.81% to close at 4,358.00.

Commodities, Bonds and Currencies

Yields on 10-year bond increased to 2.90% and on 30-year bonds increased to 3.62%.

The U.S. dollar edged higher to $1.2562 to a euro and against the Japanese yen inched higher to 98.18 yen.

Immediate futures prices of Texas crude oil increased $1.28 to $41.43 a barrel, for natural gas increased $0.14 cent to $4.29 per mbtu and gasoline prices decreased 2.65 cents to 131.25 cents a gallon.

Futures of corn increased 0.25 cent to $3.505, soybean increased 9.50 cents to $8.53, sugar edged lower to 0.06 a pound to 12.69 and wheat decreased 4.25 cents to $5.45 a bushel.

In metals trading, copper prices increased 9.40 cents to $1.61 a pound, gold decreased $23.40 to $916.60 per ounce and silver decreased 0.28 cent to $12.795.