U.S. Stocks Higher on Gold Above $1,000

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

A surge in commodities prices and merger activities are expected to lift stocks higher at the opening. World stocks gained for the fourth day in a row after gold traded at six months high and silver at 13-month high. Kraft $16 billion bid for Cadbury is expected to attract more interest.

[R]8:55 AM New York – A surge in commodities prices and merger activities are expected to lift stocks higher at the opening. World stocks gained for the fourth day in a row after gold traded at six months high and silver at 13-month high. Kraft $16 billion bid for Cadbury is expected to attract more interest.[/R]

Stocks in New York are expected to open higher after Kraft bid for Cadbury Plc, Abu Dhabi based investment fund agreed to acquire Chartered Semiconductor for $1.8 billion and UK mobile operations of Deutsche Telekom and France Telecom merge.

Commodities were active as sentiment for dollar falls and gold and silver rise.

Base and precious metal prices traded higher in Asia as dollar weakens against the yen, euro and pound.

Gold traded at $1,006.85 per ounce in early trading in New York reaching the high of $1,032.70 in March 2008. Copper increased 2.2% to $6,468 a metric ton and silver traded at 13-month high at $16.66 an ounce.

Oil traded near $69 a barrel ahead of OPEC meeting in Vienna, Austria tomorrow.

IPO activity in India has perked up after several companies are jostling to raise $5 billion before the end of the current year.

Sugar prices edged lower after late monsoon rains in India helped farmers to plant sugarcane crop. Rain deficit in India has declined to 21% at the end of August from the 50% shortfall in June.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 72.29 or 0.70% to 10,393.23, Hang Seng index in Hong Kong increased 440.50 or 2.14% to 21,069.81 and CSI 300 index in China higher 66.76 or 2.15% to 3,170.97. ASX 200 index in Australia increased 69.40 or 1.56% to 4,523.80. The FTSE Bursa KL Composite index in Malaysia closed higher 11.68 or 0.98% to 1,202.07.

The Kospi Index in South Korea increased 11.12 or 0.69% to close at 1,619.69. SET index in Thailand closed higher 9.16 or 1.34% to 691.73 and JSE Index in Indonesia increased 30.91 or 1.32% to 2,371.30. The Sensex index in India increased 107.35 or 0.67% to 16,123.67.

Europe Markets Review

In London FTSE 100 Index traded higher 25.84 or 0.52% to 4,959.02, in Paris CAC 40 Index increased 12.42 or 0.34% to 3,665.25 and in Frankfurt DAX index traded higher 23.55 or 0.43% to 5,487.06. In Zurich trading SMI increased 7.96 or 0.13% to 6,189.93.