Industrials, Financials Surge

123jump.com Staff
02 Apr, 2009
New York City

Global markets surged on the hopes that G-20 commitment of $1.1 billion will be followed with domestic spending and restraint on excessive risks at banks. Industrials and financial led gainers in New York, Europe and South America.

5:00PM New York, 11:00PM Frankfurt, 8:00AM Sydney[R]– Global markets surged on the hopes that G-20 commitment of $1.1 billion will be followed with domestic spending and restraint on excessive risks at banks. Industrials and financial led gainers in New York, Europe and South America.[/R]

Global Markets

Global markets rallied for the third day in a row as investors around the world put their faiths in Group of 20 summit. The heads of nations agreed to commit more than $1 trillion to bail out banks and provide liquidity to financial systems of which $250 billion will be for international trade development. The summit also committed more resourced for IMF but no additional conditions how that money will be used.

Industrials and financials gained on a rally in New York, Europe, Toronto and South American markets.

In New York Trading Caterpillar, John Deere and DuPont closed more than 7%. Wells Fargo, Goldman Sachs and Citigroup closed up sharply too.

Mexico sought $47 billion of credit lines from the IMF, the first request for assistance since 1995.

In Europe, Barclays, Deutsche Bank, Societe Generale and Credit Suisse and UBS jumped.

In London, the UK Debt Management Office sold 2.25 billion pounds of 30-year bonds with a cover of 1.59. The 30-year treasuries yielded 4.3%.

In Tokyo trading the benchmark index Nikkei 225 Average closed up 4.4%, nearly 3-month high. The auto and industrial machinery makers gained. The auto makers gained after the U.S. reported 37% decline in auto sales in March. The decline was less than expected for the Japanese automakers selling in the U.S.

In Hong Kong stocks surged on the hopes that the U.S. markets are stabilizing and media reports suggesting Shanghai property sales are rising. Banks led gainers in the trading. Bank of Communications Company, surged 8% and HSBC Holdings Plc soared 15%.

Stocks in Mumbai trading surged after markets in Asia gained. Reliance Industries, the largest petrochemical company in India also plans to spend nearly $4.7 billion in expanding its natural gas basin off the coast of Gujarat. The gas field may cut India’s import bill by 10% in the next three years.

North American Markets

Dow Jones Industrial Average increased 216.48 or 2.8% to a close of 7,978.08, S&P 500 Index increased 23.30 or 2.9% to 834.38, and Nasdaq Composite Index increased 51.03 or 3.3% to close at 1,602.63.

Of the stocks in S&P 500 index, 455 increased, 44 declined and 1 was unchanged.

Lincoln National Corp led decliners in the S&P 500 index with a loss of 8% followed by losses in Northern Trust of 5.4%, in Autozone Inc of 5.2%, in Qwest Communication of 4%, in Bristol-Myer SQB of 2.9% and in Abbott Lbs of 2.8%.

Wynn Resorts Ltd led gainers in the S&P 500 index with a rise of 26.9% followed by gains in Office Depot Inc of 21.5%, in CBS Corp of 20.6%, in Wyndham Worldwide of 19.6% and in CB Richard Ellis 16.8%.

South American Markets Indexes

Mexico Bolsa Index increased 682.22 or 3.4% to 20,562.59. Brazil Bovespa Stock Index added 1,760.12 or 4.19% to 43,736.45.

Argentina benchmark index increased 0.8%, Chile increased 0.7% and Peru increased 4%. Colombia increased 1.6%.

Europe Markets Review

In London FTSE 100 Index closed higher 169.36 or 4.28% to 4,124.97, in Paris CAC 40 Index increased 152.45 or 5.37% to close at 2,992.06 and in Frankfurt DAX index higher 250.85 or 6.07% to close at 4,381.92. In Zurich trading SMI increased 163.63 or 3.26% to close at 5,178.53.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 367.87 or 4.40% to 8,719.78, Hang Seng index in Hong Kong increased 1,002.43 or 7.41% closed to 14,521.97, CSI 300 index in China higher 28.18 or 1.11% closed to 2,576.40. ASX 200 index in Australia increased 100.50 or 2.81% closed to 3,680.20. The KL Composite index in Malaysia higher 20.89 or 2.36% closed to 905.07.

The Kospi Index in South Korea increased 43.61 or 3.54% to close at 1,276.97. SET index in Thailand closed higher 12.87 or 2.99% to 442.96 and JSE Index in Indonesia increased 37.98 or 2.60% closed to 1,499.73. The Sensex index in India increased 446.84 or 4.51% closed to 10,348.83.

Commodities, Metals, and Currencies

Crude oil increased $4.02 to close at $52.41 a barrel for a front month contract, natural gas increased 6 cents to $3.75 per mBtu and gasoline futures increased 8.7 cents to close at 145.83 cents per gallon.

Wheat futures closed up 25.00 cents in Chicago trading and closed at $5.5050 a bushel. Sugar increased 33 cents in trading at 13.07 cents a pound. Soybean future closed up 25.50 cent to $9.77 a bushel.

Gold decreased $22.70 in New York trading to close at $905.00 per ounce, silver closed down $0.065 to $12.91 per ounce and copper for the front month delivery increased 4.65 cents to $1.89550 per pound.

Dollar edged lower against euro to $1.3464 and gained against yen to 99.4560.

Yields on 10-year U.S. bonds increased to 2.75% and with 30-year maturities closed up to 3.57%.