Oil, Copper, U.S. Bonds Close Higher

123jump.com Staff
11 Jun, 2009
New York City

The bonds yields declined after better than expected interest from international investors during the 30-year $11 billion bond offering. Bank of America chief cited pressure from the U.S. as one of the reason to complete the Merrill Lynch deal.

[R]4:00 PM New York, 9:00 PM London, 6:00 AM Sydney – The bonds yields declined after better than expected interest from international investors during the 30-year $11 billion bond offering. Bank of America chief cited pressure from the U.S. as one of the reason to complete the Merrill Lynch deal.[/R]

U.S. stocks rallied after retail sales increased for the first time in three months. Unemployment claims declined to the lowest in six months.

The U.S. Treasury raised $11 billion by selling 30-year bonds that drew interest from foreign central banks. The bid-to-cover ratio was 2.68, better than the level of interest during the 10-year bond offering last month. The 30-year bond yields 4.72%.

Central banks around the world are looking for ways to replace their dollar holdings but are having difficult time finding alternative solutions.

Bank of America gained after Morgan Stanley revised its earnings and chief executive in a testimony suggested that regulators threatened management change if Merrill Lynch deal was not completed. United Health led the decliners in S&P 500 index. ATP Oil and Vulcan Materials plan public offerings.

UK stocks rebounded after talks of economic recovery lifted trading sentiment. Banks closed higher. After the release of earnings Chapelthorpe plunged 10% and Charles Stanley dropped 5%.

Japan first quarter GDP decline was revised to 14.2% from 15.2% on lower decline in capital spending. Stocks that are expected to benefit from the cyclical recovery in the economy closed higher. Steelmakers surged with Nippon Steel, Kobe Steel and JFE leading gainers.

Wholesale inflation in India at the end of May dropped to 0.13% and stocks closed lower after rallying for thirteen weeks. State controlled oil refining and marketing companies fell after crude oil prices increased and IEA revised its demand for global oil demand.

Australian stocks edged higher as resource and energy stocks closed up. Rio Tinto added 5.5% and Fortescue Metals increase 21.1%. OZ Minerals shareholders approved asset sale to China based Minmetals A$1.70 billion. GRD Limited surged 22% on a takeover offer from AMEC Plc.

North American Markets

Dow Jones Industrial Average increased 31.90 or 0.4% to a close of 8,770.92, S&P 500 Index increased 5.74 or 0.6% to 944.89, and Nasdaq Composite Index edged higher 9.29 or 0.5% to close at 1,862.37. Toronto TSX Composite Index closed up 97.68 or 0.9% to 10,862.37.

Of the stocks in S&P 500 index, 292 increased, 206 declined and 2 were unchanged.

UnitedHealth Group Incorporated led the decliners in the S&P 500 index with a loss of 6.4% followed by Centex Corp of 5.8%, in Pulte Homes of 5.6%, in Lennar Corp of 5.3% and in MBIA Inc of 5.2%.

Genworth Financial led gainers in the S&P 500 index with a rise of 9.6% followed by gains in Regions Financial 8.8%, in Bank of America of 8.2% and KeyCorp of 6.8%.

South American Markets Indexes

Mexico Bolsa Index increased 189.13 or 0.8% to 25,372.85. Brazil Bovespa Stock Index increased 253.80 or 0.5% to 53,410.93.

Argentina Merval Index increased 0.9%, Chile Stock Market Select index added 0.2% and Peru Lima General Index declined 1.1%. Colombia IGBC General Index edged higher 1.9% and Venezuela Stock Market Index was unchanged.

Europe Markets Review

In London FTSE 100 Index closed higher 25.12 or 0.57% to 4,461.87, in Paris CAC 40 Index increased 19.67 or 0.59% to close at 3,334.94 and in Frankfurt DAX index higher 56.08 or 1.11% to close at 5,107.26. In Zurich trading SMI increased 47.46 or 0.87% to close at 5,483.85.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 10.16 or 0.10% to 9,981.33, Hang Seng index in Hong Kong increased 5.37 or 0.03% closed to 18,791.03, CSI 300 index in China lower 27.97 or 0.94% closed to 2,961.63. ASX 200 index in Australia increased 22.80 or 0.57% closed to 4,047.20. The KL Composite index in Malaysia higher 5.99 or 0.55% closed to 1,088.96.

The Kospi Index in South Korea increased 4.51 or 0.32% to close at 1,419.39.SET index in Thailand closed higher 2.52 or 0.40% to 627.07 and JSE Index in Indonesia decreased 19.23 or 0.91% closed to 2,089.58. The Sensex index in India decreased 55.34 or 0.36% closed to 15,411.47.

Commodities, Metals, and Currencies

Crude oil increased $1.28 to close at $72.61 a barrel for a front month contract, natural gas increased 26 cent to $3.96 per mBtu and gasoline increased 4.70 cents to 206.23 cents.

Wheat futures closed down 1.25 cents in Chicago trading to $5.94 a bushel. Sugar increased 0.05 cent in trading at 16.47 cents a pound. Soybean future closed up 21 cents to $12.67 a bushel.

Gold increased $2.40 in New York trading to close at $957.10 per ounce, silver closed up $0.16 to $15.38 per ounce and copper for the front month delivery increased 7.85 cents to $2.445 per pound.

Dollar edged lower against euro to $1.4096 and closed down against the Japanese yen to 97.63.

Yields on 10-year U.S. bonds decreased to 3.86% and with 30-year maturities closed down at 4.69%.