Insurers Lineup at U.S. Treasury

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

U.S. Treasury appears to be ready help insurance companies as government deepen its reach into corporate America. The life insurers have been clamoring for the aid but are quite on executive compensation conditions. UK GDP declined at a faster rate in the first quarter.

5:00PM New York, 11:00PM Frankfurt, 8:00AM Sydney[R]– U.S. Treasury appears to be ready help insurance companies as government deepen its reach into corporate America. The life insurers have been clamoring for the aid but are quite on executive compensation conditions.[/R]

Global Markets

U.S. stocks closed higher after U.S. Treasury appear to be prepared to help life insurance companies. The insurance companies requested help four months ago and are required to convert to bank or thrift and meet the executive compensation guidelines. Insurers are quiet about the condition to restrict executive compensation, dividend and management option plans.

Merger of two homebuilders to create the largest home builder also lifted sentiment in trading. Pulte Homes agreed to acquire Centex for $1.3 billion and assume debt of $1.8 billion. The merger of two home builders will create the largest home builder with substantial foot print in Texas, California, Florida and in Carolinas. Centex surges 22% after the deal news.

Bed Bath & Beyond and Family Dollar rallied on earnings. Ryder plunged on lowered earnings.

Auto stocks in Germany rebounded. Stocks in Germany and France edged higher but in weak trading. Pernord Ricard in Paris plans to raise 1 billion euros and sell liquor brand to raise 500 million euros. The liquor company has raised 575 million euros after selling other smaller brands in the recent months.

UK stocks fell as the first quarter GDP estimate showed a deeper decline than in the fourth quarter. UK GDP decline in first quarter was estimated at 1.6%. Banks in Ireland declined after a rating agency lowered its view.

Australian consumer sentiment index increased in April and home loan approvals rose for the fifth month in a row. The sharp reduction in interest rates since September and government stimulus plan to sustain the economic growth lifted the sentiment. Stocks fell in trading. Equinox Minerals plunged.

North American Markets

Dow Jones Industrial Average increased 47.55 or 0.61% to a close of 7,837.11, S&P 500 Index increased 9.61 or 1.2% to 825.16, and Nasdaq Composite Index gained 29.05 or 1.9% to close at 1,590.66.

Of the stocks in S&P 500 index, 395 increased, 101 declined and 4 were unchanged.

Ryder Systems led decliners in the S&P 500 index with a loss of 18.2% followed by losses in Manitowoc Company of 12.8%, in KeyCorp of 12.3%, in Comercia Inc of 9.4%, in SunTrust Banks of 8.9%.

Lincoln National Corp led gainers in the S&P 500 index with a surge of 33.50% followed by gains in Bed Bath & Beyond of 24%, in Principal Financial of 22.0% and in Centex Corp of 19.4%.

South American Markets Indexes

Mexico Bolsa Index decreased 92.79 or 0.45% to 20,530.63. Brazil Bovespa Stock Index gained 339.15 or 0.8% to 44,163.68.

Argentina benchmark index increased 1.2%, Chile added 0.24% and Peru increased 0.1%. Colombia decreased 0.2%. Venezuela Stock Market index fell 0.4%.

Europe Markets Review

In London FTSE 100 Index closed lower 5.00 or 0.13% to 3,925.52, in Paris CAC 40 Index increased 18.75 or 0.65% to close at 2,921.06 and in Frankfurt DAX index higher 35.42 or 0.82% to close at 4,357.92. In Zurich trading SMI increased 25.60 or 0.51% to close at 4,999.80.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 237.84 or 2.69% to 8,595.01, Hang Seng index in Hong Kong decreased 454.11 or 3.04% closed to 14,474.86, CSI 300 index in China lower 97.60 or 3.79% closed to 2,479.35. ASX 200 index in Australia decreased 86.80 or 2.34% closed to 3,619.50. The KL Composite index in Malaysia lower 11.97 or 1.30% closed to 907.87.

The Kospi Index in South Korea decreased 38.03 or 2.93% to close at 1,262.07. SET index in Thailand closed higher 1.01 or 0.23% to 443.57 and JSE Index in Indonesia decreased 25.11 or 1.68% closed to 1,465.75. The Sensex index in India increased 207.47 or 1.97% closed to 10,742.34.

Commodities, Metals, and Currencies

Crude oil increased $0.67 to close at $49.82 a barrel for a front month contract, natural gas increased 9 cents to $3.65 per mBtu and gasoline futures decreased 0.74 cents to close at 145.30 cents per gallon.

Wheat futures closed down 7.750 cents in Chicago trading and closed at $5.32 a bushel. Sugar increased 15 cent in trading at 12.38 cents a pound. Soybean future closed up 16.50 cent to $10.06 a bushel.

Gold decreased $0.90 in New York trading to close at $882.40 per ounce, silver closed up $0.06 to $12.27 per ounce and copper for the front month delivery decreased 0.35 cents to $1.9865 per pound.

Dollar edged higher against euro to $1.3262 and fell against yen to 99.67.

Yields on 10-year U.S. bonds decreased to 2.85% and with 30-year maturities closed down to 3.66%.