Surge in U.S. Lift Europe, Latin Markets

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

U.S. stocks closed higher as stocks of banks and insurance sector rallied. Citigroup soared on the hopes that the profits at the bank are stabilizing. The rally in New York trading lifted markets in Europe at close and in South America.

[R]5:00PM New York – 11:00PM Frankfurt, 4:00AM Sydney – U.S. stocks closed higher as stocks of banks and insurance sector rallied. Citigroup soared on the hopes that the profits at the bank are stabilizing.[/R]

U.S. stocks surged on the hope that the banking system will stabilize soon. Citigroup in an internal communication estimated that the banking institution was profitable. The rally in New York trading lifted markets in Europe at close and in South America.

Lincoln National Corporation led gainers in the S&P 500 index with a rise of 26.9%. AeroVironment, Inc third quarter net down 25%. Casey’s General Stores, Inc third quarter sales fell 26.4%. The Kroger Co profits rise 8% in fourth quarter.

London, UK market averages closed higher and government report that showed industrial production fell in three months to January. Insurance and bank stocks closed higher as bargain hunters braved in the sector. HSBC surged 14% Friends Provident soared 21%.

Producer price index in China declined 4.5% in February and urban home prices fell 1.2% in the month. Hong Kong Air Cargo Terminals Limited said air cargo volume fell 22% in February and cumulative tonnage in the first two months of the year dipped 27%.

Australian stocks closed higher on a rise in crude oil prices. A private report indicated that job ads in metropolitan newspapers and on the Internet declined 40% from a year ago in February. Separately, New Zealand electronic charge card transactions declined in February.

American Markets Reviews

Dow Jones Industrial Average increased 379.44 or 5.8% to a close of 6,926.49, S&P 500 Index increased 43.07 or 6.37% to 719.60, and Nasdaq Composite Index increased 89.64 or 7.1% to a close of 1,358.28. In Toronto TSX Composite increased 313.47 or 4.2% to close at 7,880.41.

In Latin American trading, Mexico Bolsa Index increased 579.16 or 3.41% to 17,543.52 and Brazil Bovespa Stock Index decreased 363.74 or 0.98% to 36,741.35.

Argentina decreased 5.4%, Chile increased 2.71%, Peru edged higher 3.6% and Colombia increased 1.4%.

U.S. Stock Movers

Of the stocks in S&P 500 index, 487 increased, 13 declined and none were unchanged.

Brown Forman led the decliners in the S&P 500 index with a loss of 10% followed by losses in Johnson Controls of 7.3%, in Newmont Mining of 7.3%, in Exelon Corp of 2.9%, in AON Corp of 1%.

Office Depot Inc led gainers in the S&P 500 index with a rise of 56% followed by gains in Genworth Financial of 39.6%, in Citigroup Inc of 37.1%, in Lincoln National Corp of 27% and in Hartford Financial Services of 26.8%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 31.05 or 0.44% to 7,054.98, Hang Seng index in Hong Kong increased 349.47 or 3.08% closed to 11,694.05, CSI 300 index in China higher 38.26 or 1.74% closed to 2,240.78. ASX 200 index in Australia increased 30.00 or 0.95% closed to 3,184.50. The KL Composite index in Malaysia lower 2.97 or 0.35% closed to 855.25.

The Kospi Index in South Korea increased 20.47 or 1.91% to close at 1,092.20. SET index in Thailand closed higher 6.14 or 1.49% to 417.41 and JSE Index in Indonesia increased 13.52 or 1.05% closed to 1,300.22. The Markets of India were closed today.

Europe Markets Review

In London FTSE 100 Index closed higher 172.83 or 4.88% to 3,715.23, in Paris CAC 40 Index increased 144.39 or 5.73% to close at 2,663.68 and in Frankfurt DAX index higher 194.95 or 5.28% to close at 3,886.98. In Zurich trading SMI increased 204.88 or 4.76% to close at 4,512.55.

Commodities, Bonds and Currencies

Yields on 10-year bond increased to 3.00% and on 30-year bonds increased to 3.72%.

The U.S. dollar edged higher to $1.2672 to a euro and against the Japanese yen inched higher to 98.68 yen.

Immediate futures prices of Texas crude oil decreased $1.37 to $45.70 a barrel, for natural gas declined to $0.02 per mbtu and gasoline prices decreased 3.21 cents to 130.30 cents a gallon.

Futures of corn increased 10.00 cent to $3.755, soybean increased 12.00 cents to $8.77, sugar edged higher to 0.10 a pound to 12.59 and wheat increased 9.50 cents to $5.3275 a bushel.

In metals trading, copper prices increased 4.90 cents to $1.6885 a pound, gold decreased $19.90 to $898.10 per ounce and silver decreased 0.34 cent to $12.60.