U.S. Indexes Gain; Copper 5-month High

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

Markets in New York and Europe closed higher in a week when euphoria reigned after the G-20 summit. Unemployment surged to a 25-year high in March and job losses were widespread as the U.S. economy continues to shrink. Copper surged above $2 a pound for the first time in five months.

5:00PM New York, 11:00PM Frankfurt, 8:00AM Sydney[R]– Markets in New York and Europe closed higher on a week when euphoria reigned after the G-20 summit. Unemployment surged to 25-year high in March and job losses were widespread as economy continues to shrink at a rapid pace.[/R]

Global Markets

U.S. stocks gyrated in the morning after the release of unemployment data and worries about the economic stimulus and direction of dollar in international trading. However, stocks closed higher at close on better than expected earnings from Research in Motion and a rise in manufacturing index in China. The smooth Treasury auction in London also bolstered confidence in New York and European trading.

U.S. economy lost 663,000 jobs in March and unemployment rate jumped to 8.5% in the month, matching the rate reached in November 1983. Labor Department revised higher its estimate of job losses in January to 714,000 and February estimate was left unchanged at 651,000. Since the recession began in December 2007, 5.1 million jobs have been lost, with almost two-thirds or 3.3 million of the decrease occurring in the last 5 months. Job losses were widespread across major industry sectors.

In Tokyo trading, exporters, shipping lines and realty companies led gainers. Yen drifted lower and reached nearly 100 yen against a dollar. The G-20 commitment to finance and back international trade lifted stocks in Asia and in India. Japan pension investment fund projects net cash outflow.

In heavy volume, stocks in Hong Kong edged higher after surging for the four days in a row and adding 3% for the week. The banks, real estate developers and electric power utilities advanced. The rise in manufacturing index lifted sentiment in trading in China and in Hong Kong.

In Sydney, Australia, Arrow acquires Beach Petroleum’s 40% stake in Tipton West for as much as A$400 million. Work ombudsman probes BHP Billiton’s 1,800 job cut. Macquarie Bank Ltd. has offered the holders of subordinated bonds at a price as low as 50 cents and no more than 60 cents on the dollar plus the interests.

North American Markets

Dow Jones Industrial Average increased 39.51 or 0.50% to a close of 8,017.59, S&P 500 Index increased 8.12 or 0.7% to 842.50, and Nasdaq Composite Index increased 19.24 or 1.20% to close at 1,621.87.

Of the stocks in S&P 500 index, 352 increased, 143 declined and 5 was unchanged.

Akamai Technologies Inc led the decliners in the S&P 500 index with a loss of 6.9% followed by losses in Tenet Healthcare of 6.7%, in Humana Inc of 5.7%, in Bristol Myers Squibb of 5.4%, in Newmont Mining of 5.1%.

Kimco Realty led gainers in the S&P 500 index with a rise of 25.5% followed by gains in Principal Financial of 19.9%, in International Game Technology of 16.4% and Vornado Real Estate Trust of 13.3%.

South American Markets Indexes

Mexico Bolsa Index increased 371.19 or 1.8% to 20,933.78. Brazil Bovespa Stock Index added 654.53 or 1.50% to 44,390.98.

Argentina benchmark index increased 5.5%, Chile increased 0.6% and Peru increased 4%. Colombia decreased 0.3%.

Europe Markets Review

In London FTSE 100 Index closed lower 95.30 or 2.31% to 4,029.67, in Paris CAC 40 Index decreased 33.32 or 1.11% to close at 2,958.74 and in Frankfurt DAX index higher 3.07 or 0.07% to close at 4,384.99. In Zurich trading SMI decreased 135.54 or 2.62% to close at 5,042.99.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 30.06 or 0.34% to 8,749.84, Hang Seng index in Hong Kong increased 23.72 or 0.16% closed to 14,545.69, CSI 300 index in China lower 5.90 or 0.23% closed to 2,570.50. ASX 200 index in Australia increased 55.40 or 1.51% closed to 3,735.60. The KL Composite index in Malaysia higher 1.94 or 0.21% closed to 907.01.

The Kospi Index in South Korea increased 6.78 or 0.53% to close at 1,283.75. SET index in Thailand closed higher 3.08 or 0.70% to 446.04 and JSE Index in Indonesia increased 0.63 or 0.04% closed to 1,500.36. The Markets of India were closed today.

Commodities, Metals, and Currencies

Crude oil decreased $0.13 to close at $52.51 a barrel for a front month contract, natural gas increased 2 cents to $3.80 per mBtu and gasoline futures increased 2.26 cents to close at 149.24 cents per gallon.

Wheat futures closed up 13.00 cents in Chicago trading and closed at $5.6350 a bushel. Sugar decreased 51 cents in trading at 12.55 cents a pound. Soybean future closed up 18.50 cent to $9.95 a bushel.

Gold decreased $11.60 in New York trading to close at $897.30 per ounce, silver closed down $0.29 to $12.735 per ounce and copper for the front month delivery increased 11.05 cents to $2.0050 per pound.