World Markets Gain on Bernanke Comments

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

U.S. stocks closed higher after the release of better than expected retail sales data and comments from the Fed Chairman Bernanke. The chairman suggested that deepest recession in nearly eight decades has likely ended but job market recovery will be slow.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – U.S. stocks closed higher after the release of better than expected retail sales data and comments from the Fed Chairman Bernanke. The chairman suggested that deepest recession in nearly eight decades has likely ended but job market recovery will be slow.[/R]

World markets edge ahead after the release of U.S. retail sales and producer prices index. Brazil and U.S. report rising retail sales and German investor confidence in September grows. Japan Airlines is planning to cut 6,800 jobs. Yahoo lowers its stake in the online marketplace operator Alibaba.com.

U.S. Treasury is looking to sell its stake in Citigroup at a profit to taxpayers. The government’s stake of 7.692 billion shares or 33.6% stake in the troubled bank is sitting on a paper profit of $7.7 billion.

Best Buy second quarter earnings dropped 22% on 12% decline in revenues. The Kroger declined after latest quarter net fell 8%. eBay and Yahoo gained on ratings revision. Cracker Barrel Old Country Store quarterly net rises 8.6%.

UK stocks edged higher and the pound declined after comments from the Bank of England Governor King. The central bank may lower the rates paid to banks on the deposits. BAE Systems will eliminate 1,116 jobs in the UK and close a plant in the northern UK.

The August read of German investor confidence index increased. PSA Peugeot increased after it revised its loss estimate lower. Michelin & Cie increased after its chief executive offered positive earnings outlook on lower raw materials costs.

North American Markets

Dow Jones Industrial Average increased 56.61 or 0.6% to a close of 9,683.41, S&P 500 Index increased 3.29 or 0.3% to 1,052.63, and Nasdaq Composite Index increased 10.86 or 0.5% to close at 2,102.64. Toronto TSX Composite Index increased 163.79 or 1.5% to 11,495.83.

Of the stocks in S&P 500 index, 303 increased, 192 declined and 5 were unchanged.

Citigroup led the decliners in the S&P 500 index with a loss of 8.8% followed by losses in The Kroger Co of 7.5%, in Coventry Health of 7.1%, in AIG of 5.6% and in Best Buy Co of 5.2%.

Teradyne, Inc led gainers in the S&P 500 index with a rise of 11.5% followed by gains in Zions Bancorp 10.7%, in Regions Financial of 9.8% and in Interpublic Group of 9%.

South American Markets Indexes

Mexico Bolsa Index increased 241.83 or 0.8% to 29,625.02 Brazil Bovespa Stock Index increased 396.31 or 0.7% to 59,263.86.

Argentina Merval Index closed up 10.6% and Chile Stock Market Select index edged lower 0.4%, Peru Lima General Index edged down 0.6% and Colombia IGBC General Index increased 2.7%.

Europe Markets Review

In London FTSE 100 Index closed higher 23.28 or 0.46% to 5,042.13, in Paris CAC 40 Index increased 21.60 or 0.58% to close at 3,752.21, in Frankfurt DAX index higher 8.74 or 0.16% to close at 5,628.98. In Zurich trading SMI decreased 12.45 or 0.20% to close at 6,213.19.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 15.56 or 0.15% to 10,217.62, Hang Seng index in Hong Kong decreased 68.83 or 0.31% to 20,866.37 and CSI 300 index in China higher 9.25 or 0.28% to 3,302.64. ASX 200 index in Australia increased 9.20 or 0.20% to 4,540.30. The FTSE Bursa KL Composite index in Malaysia closed higher 4.11 or 0.34% to 1,207.47.

The Kospi Index in South Korea increased 18.49 or 1.13% to close at 1,653.40. SET index in Thailand closed higher 8.84 or 1.27% to 703.16 and JSE Index in Indonesia increased 37.41 or 1.57% to 2,420.11. The Sensex index in India increased 240.26 or 1.48% to 16,454.45.

Commodities, Metals, and Currencies

Crude oil decreased $0.49 to $70.44 a barrel for a front month contract, natural gas edged up 4 cents to $3.36 per mBtu and gasoline decreased 1.42 cents to 177.50 cents.

Wheat futures closed up 16.50 cents in Chicago trading to $4.70 a bushel. Sugar edged up to 0.01 cents a pound to 23.32 cents. Soybean future closed up 51 cent to $9.60 a bushel.

Gold increased $3.90 in New York trading to close at $1,010.20 per ounce, silver closed up $0.07 to $17.07 per ounce and copper for the front month delivery increased 0.90 cent to $2.854 per pound.

Dollar edged lower against euro to $1.467 and closed higher against the Japanese yen to 91.91.

Yield on 10-year U.S. bonds increased to 3.45% and with 30-year maturities edged higher to 4.26%.