Global Markets Surge; Nasdaq, S&P 500 Rise

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

Global markets surged after manufacturing expanded in China, auto sales increased in France and India and construction spending edged higher in the U.S. Earnings in Europe lift indexes. Copper up 4% and natural gas surged 9%. Dollar declined. S&P 500 index above 1000 and Nasdaq cross 2000.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – Global markets surged after manufacturing expanded in China, auto sales increased in India and construction spending edged higher in the U.S. Earnings in the UK and Europe supported a rise in indexes. Copper gained 4% and natural gas surged 9%. Dollar declined.[/R]

Global markets surged after manufacturing expanded in China, auto sales increased in India and Europe, Barclays and HSBC reported better than expected profit and construction spending in the U.S. increased. The confluence of positive news bolstered investors around the world and copper gained 4% and natural gas surged 9%.

Ford Motor Company and other auto parts makers increased after the U.S. lawmakers extended the rebate program for old cars. Barnes Group Inc second quarter net falls to $10.4 million but Humana second quarter profit rises. Tyson Foods beats earnings estimate on rising volume.

Commodities and energy related stocks in Europe gained on the expectations of lower dollar and rising prices. Banks in Europe edged higher. Rhodia and Linde surged on earnings. French auto sales increase lifted Peugeot and Renault.

Stocks in London closed higher after Barclays and HSBC reported profit in the first half. Celsis receives 232.5 pence cash offer. Sport Media Group surges on higher earnings estimate and an increase in circulation. Ultra Electronics lifts sales and profit estimate.

Japan auto sales decreased 4.2% in July and Toyota sales fell 3%. Mitsubishi rise in earnings lifted banks and realty stocks. Itochu and Casio reported weak results. Suzuki earnings fell on weak sales.

Chinese stocks surged ahead on the release of two separate manufacturing reports. The reports indicated that manufacturing sector is expanding and export linked activities are recovering. China Vanke first half profit increased 22%. China Everbright filed to raise $1.6 billion.

The Sensex index gained 1.6% and closed at a record high in fourteen months. Bajaj Auto soars after it increased motorcycle production by 25%. Bharti Airtel and MTN extended merger talks. Maruti Suzuki jumped after July auto sales surged 33%. Exports from India drop 28%.

North American Markets

Dow Jones Industrial Average increased 114.95 or 1.25% to a close of 9,286.56, S&P 500 Index gained 15.15 or 1.5% to 1,002.63, and Nasdaq Composite Index edged higher 30.11 or 1.5% to close at 2,008.61. Toronto TSX Composite Index in Friday trading increased 110.43 or 1% to 10,787.15.

Of the stocks in S&P 500 index, 427 increased, 68 declined and 5 were unchanged.

The Republic Services led the decliners in the S&P 500 index with a loss of 4.7% followed by losses in the Clorox Company of 3.3%, in Federator Investors of 3%, in Genzyme Corp of 2.9% and in SLM Corp of 2.8%.

Gannett Company led gainers in the S&P 500 index with a rise of 13.6% followed by gains in KeyCorp 11.2%, in Eastman Kodak of 9.8% and Interpublic Group of 9%.

South American Markets Indexes

Mexico Bolsa Index increased 648.98 or 2.4% to 27,692.48. Brazil Bovespa Stock Index gained 1,232.09 or 2.3% to 55,997.81.

Argentina Merval Index surged 3.6%. Chile Stock Market Select index edged higher 1.4%, Peru Lima General Index soared 3.7% and Colombia IGBC General Index increased 0.7%.

Europe Markets Review

In London FTSE 100 Index closed higher 74.10 or 1.61% to 4,682.46, in Paris CAC 40 Index increased 51.53 or 1.50% to close at 3,477.80 and in Frankfurt DAX index higher 94.71 or 1.78% to close at 5,426.85. In Zurich trading SMI increased 16.74 or 0.28% to close at 5,967.43.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 4.36 or 0.04% to 10,352.47, Hang Seng index in Hong Kong increased 233.93 or 1.14% to 20,807.26 and CSI 300 index in China higher 52.41 or 1.40% to 3,787.03. ASX 200 index in Australia increased 19.40 or 0.46% to 4,263.40. The FTSE Bursa KL Composite index in Malaysia closed lower 3.59 or 0.31% to 1,171.31.

The Kospi Index in South Korea increased 7.69 or 0.49% to close at 1,564.98. SET index in Thailand closed higher 17.43 or 2.79% to 641.43 and JSE Index in Indonesia increased 15.56 or 0.67% to 2,338.80. The Sensex index in India increased 253.92 or 1.62% to 15,924.23.

Commodities, Metals, and Currencies

Crude oil increased $1.87 to close at $71.32 a barrel for a front month contract, natural gas increased 34 cents $3.99 per mBtu and gasoline added 5.14 cents to 206.40 cents.

Wheat futures closed up 21.00 cents in Chicago trading to $5.49 a bushel. Sugar increased 0.53 cent in trading at 19.14 cents a pound. Soybean future closed up 48.50 cent to $10.30 a bushel.

Gold increased $3.60 in New York trading to close at $959.40 per ounce, silver closed up $0.31 to $14.25 per ounce and copper for the front month delivery increased 11.40 cents to $2.74 per pound.

Dollar edged lower against euro to $1.44 and closed up against the Japanese yen to 95.29.

Yield on 10-year U.S. bond increased to 3.62% and with 30-year maturities increased to 4.40%.