Global Stocks Up in Weak Quarter

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

U.S. stocks closed higher today but for the quarter declined sharply. The Dow and S&P 500 index declined more than 13% and 12% respectively and tech heavy Nasdaq Composite lost only 3%. European market indexes closed higher on a rise in banks. Unemployment in Japan and Germany rose.

5:00PM New York, 11:00PM Frankfurt, 8:00AM Sydney[R]– U.S. stocks closed higher today but for the quarter declined sharply. The Dow and S&P 500 index declined more than 13% and 12% respectively and tech heavy Nasdaq Composite lost only 3%. European market indexes closed higher on a rise in banks.[/R]

Global Markets

The U.S. market indexes closed higher on a day when banks and financial services led the gainers. For the quarter Dow Jones lost 13.3%, S&P 500 index lost 12% and the Nasdaq Composite Index declined 3.1%.

The sentiment for bank earnings, end of the quarter window dressing by money managers and expectations of the effectiveness of the economic stimulus all played a role in today’s gain. The U.S. government and Fed have now committed or agreed to support a total of $12 trillion of debt of which $5.3 trillion is the result of direct bailout from the various program.

Federal Labor Agency in Germany reported March unemployment rose 69,000 to 3.4 million and adjusted jobless rate rose 8.1% from 8% in the previous month.

Banks in Europe rallied in trading. Commerzbank AG surged 8%, Deutsche Bank added 4.5% and Deutsche Boerse AG soared 9.4% after two UK based hedge fund managers terminated their agreement to work in tandem to demand management changes at the company. Atticus Capital LP and the Children’s Investment Fund Management LLP had taken activist role to replace management and demand higher shareholder return.

In UK, Barclays Plc and CVC Capital Partners Ltd. are in exclusive talks to hammer out a deal for the iShares ETF unit. The media speculation has suggested that the price may be between $4 billion and $5 billion. Barclays will provide up to 66% of financing for the purchase and will retain 20% stake in the company. Barclays will also not sell its securities lending operation.

Marks & Spencer same store sales declined 4.2% in the fourth quarter. The stock surged 12% on the less than expected decline.

Unemployment in Japan in February rose to 4.4% from 4.1% in January according to the latest data released by the statistics bureau in Tokyo. The ratio of available jobs to each candidate declined to 0.59 from 0.67. Wages in the month declined 2.7% and household spending fell 3.5% in the period.

North American Markets

Dow Jones Industrial Average increased 86.90 or 1.2% to a close of 7,608.92, S&P 500 Index increased 10.34 or 1.3% to 797.87, and Nasdaq Composite Index increased 26.79 or 1.8% to close at 1,528.59.

Of the stocks in S&P 500 index, 373 increased, 123 declined and 4 were unchanged.

General Motors led decliners in the S&P 500 index with a loss of 28% followed by losses in Lennar Corp of 13.8%, in JDS Uniphase of 10.5%, in RadioShack Corp of 4.8%, in International Paper Corp of 4.7% and in Ford Motor Company of 8.5%.

Prologis led gainers in the S&P 500 index with a rise of 23.6% followed by gains in Fifth Third Bancorp of 17.7%, in Huntington Bancorp of 15.3%, in SLM Corp of 13.9% and in Bank of America 13.1%.

South American Markets Indexes

Mexico Bolsa Index increased 96.60 or 0.5% to 19,626.75. Brazil Bovespa Stock Index added 272.74 or 0.67% to 40,925.87.

Argentina benchmark index increased 0.3%, Chile decreased 0.61% and Peru increased 4%. Colombia increased 1.2%.

Europe Markets Review

In London FTSE 100 Index closed higher 163.23 or 4.34% to 3,926.14, in Paris CAC 40 Index increased 88.00 or 3.24% to close at 2,807.34 and in Frankfurt DAX index higher 95.53 or 2.39% to close at 4,084.76. In Zurich trading SMI increased 181.67 or 3.83% to close at 4,927.43.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 126.55 or 1.54% to 8,109.53, Hang Seng index in Hong Kong increased 119.69 or 0.89% closed to 13,576.02, CSI 300 index in China higher 23.30 or 0.94% closed to 2,507.79. ASX 200 index in Australia decreased 22.30 or 0.62% closed to 3,582.10. The KL Composite index in Malaysia higher 3.21 or 0.37% closed to 872.55.

The Kospi Index in South Korea increased 8.80 or 0.73% to close at 1,206.26. SET index in Thailand closed higher 1.90 or 0.44% to 431.50 and JSE Index in Indonesia increased 14.98 or 1.06% closed to 1,434.07. The Sensex index in India increased 140.36 or 1.47% closed to 9,708.50.

Commodities, Metals, and Currencies

Crude oil decreased $0.58 to close at $48.99 a barrel for a front month contract, natural gas decreased 4 cents to $3.74 per mBtu and gasoline futures increased 72 cents to close at 140.10 cents per gallon.

Wheat futures closed up 20.250 cents in Chicago trading and closed at $5.3275 a bushel. Sugar increased 19 cents in trading at 12.67 cents a pound. Soybean future closed up 47.50 cent to $9.52 a bushel.

Gold increased $3.40 in New York trading to close at $921.10 per ounce, silver closed down $0.09 to $12.95 per ounce and copper for the front month delivery increased 7.70 cents to $1.8443 per pound.

Dollar edged lower against euro to $1.3251 and gained against yen to 99.007.

Yields on 10-year U.S. bonds decreased to 2.66% and with 30-year maturities declined to 3.53%.