Volatile Trading in NY, Unemployment Surges

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

U.S stocks traded volatile after employers cut jobs at a rate lower than previous months. Crude oil jumped and lifted stocks of energy companies. Banks and financial stocks remain under pressure in Europe and in the U.S.

[R]5:00PM New York – 11:00PM Frankfurt, 4:00AM Sydney – U.S stocks traded volatile after employers cut jobs at a rate lower than previous months. Crude oil jumped and lifted stocks of energy companies. Banks and financial stocks remain under pressure in Europe and in the U.S.[/R]

U.S. unemployment increased in February to 8.1% after 651,000 jobs were lost in the month. January unemployment was revised to 655,000 and December to 681,000. Job losses in construction, automobile manufacturing and retail trade are some of the largest contributors to the recent surge in unemployment.

As global economic recession widens, Japan is feeling export pressures. Preliminary exports declined 47% in February and imports fell 28%. Japan is likely to accelerate its direct corporate lending in less than a month as companies find it difficult to borrow money.

Stocks adjusted to lower level after China did not expand its large stimulus package. In Hong Kong trading banks and insurance companies fell. Manulife Financial Corp plunged 10.1% to HK$62.30 after its Toronto-listed parent company shares fell yesterday.

Stocks in Mumbai trading rebounded on the hopes that the economy will recover in the third quarter of this year. Stocks closed higher on low trading volume. Rupee edged higher but hover near the record low and foreign exchange reserve edged lower at the end of February.

Australian benchmark index fell 1.4% after Reserve Bank of Australia board member and chairman of Telstra warned that economic conditions in the country are deteriorating precipitously. Australian economy is expected to slip into recession during the second half of this year.

American Markets Reviews

Dow Jones Industrial Average increased 32.50 or 0.5% to a close of 6,626.94, S&P 500 Index gained 0.83 or 0.12% to 683.38, and Nasdaq Composite Index dropped 5.74 or 0.5% to a close of 1,293.85. In Toronto TSX Composite declined 37.70 or 0.49% to close at 7,591.47.

In Latin American trading, Mexico Bolsa Index decreased 321.58 or 1.85% to 17,043.44 and Brazil Bovespa Stock Index decreased 263.84 or 0.71% to 37,105.09.

Argentina increased 1.1%, Chile declined 0.96%, Peru edged higher 0.8% and Colombia increased 0.65%.

U.S. Stock Movers

Of the stocks in S&P 500 index, 214 increased, 282 declined and 4 were unchanged.

General Motors led the decliners in the S&P 500 index with a loss of 22% followed by losses in Hartford Financial Services of 12.4%, in Legg Mason Inc of 9.4%, in Teradyne Inc of 9.1%, in Jabil Circuit of 8.9%.

Rohm & Haas led gainers in the S&P 500 index with a rise of 18.2% followed by gains in MBIA Inc of 10.5%, in Dow Chemical of 9.9%, in United Health Group of 9.5% and in Schering-Plough of 8.1%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 260.39 or 3.50% to 7,173.10, Hang Seng index in Hong Kong decreased 289.72or 2.37% closed to 11,921.52, CSI 300 index in China lower 18.34 or 0.80% closed to 2,286.58. ASX 200 index in Australia decreased 43.00 or 1.35% closed to 3,145.50. The KL Composite index in Malaysia lower 11.02 or 1.27% closed to 858.22.

The Kospi Index in South Korea decreased 3.15 or 0.30% to close at 1,055.03. SET index in Thailand closed higher 2.40 or 0.58% to 419.51 and JSE Index in Indonesia decreased 1.38 or 0.11% closed to 1,286.69. The Sensex index in India increased 127.90 or 1.56% closed to 8,325.82.

Europe Markets Review

In London FTSE 100 Index closed higher 0.87 or 0.02% to 3,530.73, in Paris CAC 40 Index decreased 35.18 or 1.37% to close at 2,534.45 and in Frankfurt DAX index lower 29.08 or 0.79% to close at 3,666.41. In Zurich trading SMI decreased 78.57 or 1.79% to close at 4,311.61.

Commodities, Bonds and Currencies

Yields on 10-year bond increased to 2.87% and on 30-year bonds increased to 3.55%.

The U.S. dollar edged higher to $1.2652 to a euro and against the Japanese yen inched higher to 98.27 yen.

Immediate futures prices of Texas crude oil increased $2.10 to $45.71 a barrel, for natural gas decreased 15 cent to $3.92 per mbtu and gasoline prices increased 2.35 cents to 133.62 cents a gallon.

Futures of corn increased 3.00 cent to $3.61, soybean increased 15.00 cents to $8.67, sugar edged lower to 0.05 a pound to 12.78 and wheat increased 12 cents to $5.27 a bushel.

In metals trading, copper prices increased 3.50 cents to $1.6885 a pound, gold increased $11.80 to $939.60 per ounce and silver increased 0.25 cent to $13.365.