Weak Dollar Lifts Gold; World Markets Up

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

Stocks in New York edged higher after the latest reading on consumer sentiment index rises in August. Gold gains as dollar declines. FedEx gained after first quarter earnings came in at 58 cents a share ahead of its guidance.

[R]11:00 AM New York – Stocks in New York edged higher after the latest reading on consumer sentiment index rises in August. Gold gains as dollar declines. FedEx gained after first quarter earnings came in at 58 cents a share ahead of its guidance.[/R]

U.S. stocks after ninety minutes of trading edged higher as dollar fell, gold increased and consumer sentiment index in September increased. FedEx surged after it reported better than expected earnings on higher international shipping.

Markets in Asia and Europe edged higher after a raft of economic data from China suggested that government economic stimulus driven expansion is intact. Markets in Asia gained as commodities prices increased on the expectations of sustained demand from China.

Sterlite Indutries India Limited listed on the New York Stock Exchange declined 3.3% after it increased its bid 3% to $2.56 billion in cash for the bankrupt US copper miner Asarco.

Of the most active stocks in early trading in New York, Delta Petroleum led gainers with a rise of 14.3% followed by gains in Cliffs Natural Resources of 12% and MGM Mirage of 7.6%.

Brady Corp led decliners with a loss of 7.7% and Advance Auto Parts fell 4.6%.

FedEx surged 7.2% to $77.79 after it reported fiscal first quarter profit of 58 cents a share earnings per share ahead of its guidance between 30 cents and 45 cents on better than expected international package shipping volume.

Earnings Review

Campbell Soup Company, the global manufacturer and marketer of food products reported fourth quarter revenues fell 11% to $1.53 billion from $1.72 billion a year ago. Net income for the quarter fell 22.5% to $69 million or 20 cents per diluted share compared to net income of $89 million or 24 cents per share a year ago.

Brady Corporation, the maker of labels, signs and safety devices reported fourth quarter revenues fell 27.6% to $287.2 million from $396.8 million a year ago. Net income for the quarter fell 45% to $19.2 million or 37 cents per diluted share compared to net income of $34.8 million or 64 cents per share a year ago.

Melco International Development Limited, the casino operator said first-half revenues rose 53% to HK$498.5 million from HK$325.4 million a year ago. Net loss in the first-half was HK$811.9 million or 66.14 cents per diluted share compared to net loss of HK$614.4 million or 50.10 cents per share, a year ago.

Chinese Stimulus Lift Economic Activities

Stocks in China surged after the release of data on industrial output, consumer prices and investment loans. The strong economic data lifted stocks in Shanghai, Hong Kong, Korea and Australia. Exports from China fell at a faster pace than expected but domestic stimulus package of 4 trillion yuan is compensating for the weakness in the exports.

Consumer prices in August fell 1.2% in August compared to a year ago after falling 1.8% in July. Seasonally adjusted retail sales increased 15.4% in August compared to a year ago.

Banks have been extending loans to businesses in construction and manufacturing as economic stimulus and accommodative monetary policy is supporting new projects. Banks loaned 410.4 billion yuan ($60 billion) in local currency in August, an increase from 355.9 billion in July.

Exports in August declined 23.4% compared to a year ago and increased 3.4% from July.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 69.34 or 0.66% to 10,444.33, Hang Seng index in Hong Kong increased 91.86 or 0.44% to 21,161.42 and CSI 300 index in China higher 75.22 or 2.38% to 3,238.13. ASX 200 index in Australia increased 25.30 or 0.55% to 4,596.10. The FTSE Bursa KL Composite index in Malaysia closed higher 7.00 or 0.58% to 1,208.28.

The Kospi Index in South Korea increased 7.02 or 0.43% to close at 1,651.70. SET index in Thailand closed higher 4.72 or 0.67% to 707.81 and JSE Index in Indonesia increased 4.08 or 0.17% to 2,415.95. The Sensex index in India increased 47.44 or 0.29% to 16,264.30.

Europe Markets Review

In London FTSE 100 Index traded higher 37.11 or 0.74% to 5,024.79, in Paris CAC 40 Index increased 31.92 or 0.86% to 3,737.79 and in Frankfurt DAX index traded higher 32.25 or 0.58% to 5,627.02. In Zurich trading SMI increased 21.17 or 0.34% to 6,229.60.