Market Updates

World Market Indexes Reach Yearly Highs

Mukesh Buch
16 Sep, 2009
New York City

    U.S. stocks showed lot of vigor after the release of inflation and industrial production data. Gold closed to a new high as dollar edged lower to a new low for the year. Market indexes that track world and emerging markets reached to highs of the year.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – U.S. stocks showed lot of vigor after the release of inflation and industrial production data. Gold closed to a new high as dollar edged lower to a new low for the year. Market indexes that track world and emerging markets reached to highs of the year.[/R]

U.S. stocks gained after latest measured inflation data suggested that price increases are contained. Investors returned with a higher appetite for risk. Economy sensitive cyclical stocks led the charge. Gold closed to a new high for the year as dollar fell to a new low. Home builders gained after Berkshire Hathaway Chairman Warren Buffett said that the residential housing market has stabilized and newspaper and other media companies advanced after TNS Media said advertising market has improved.

Industrial output increased 0.8% in August after July data was revised higher to 1% increase. Manufacturing production expanded 0.6% in the month after the revised expansion 1.4% in July. The output at mines increased 0.5% and at utilities increased 1.9%.

Seasonally adjusted consumer price index increased 0.4% in August and unadjusted index decreased 1.5% from a year ago. The inflation index excluding food and energy increased 0.1%. The entire increase in the index was driven by 9.1% rise in gasoline index.

Adobe agreed to acquire the Internet traffic analysis software and services provider Omniture to diversify its product offering and increase forestall sagging sales. The offer is 45% premium to the average price of last thirty trading days.

Healthcare insurers increased after US lawmakers proposed healthcare bill without the public option. Anadarko Petroleum increased after it made a discovery of natural gas field off the coast of Sierra Leone.

UK unemployment rate for the three months to July increase 0.7% from the previous quarter to 7.9% and 2.3% over a year. The number of unemployed people increased 210,000 in the quarter and 743,000 during the one year ending in July to 2.47 million.

Chinese companies are expected to expand overseas investment in mining and energy companies.

Mumbai stocks gained as markets in Asia rallied on the back of gains in the US and Europe. Commodities and infrastructure related companies led the gainers. Banks also increased on the expectations of higher earnings. Pipavav Shipyard IPO was oversubscribed in the first hour of subscription period.

North American Markets

Dow Jones Industrial Average increased 108.30 or 1.1% to a close of 9,791.71, S&P 500 Index increased 16.13 or 1.5% to 1,068.76, and Nasdaq Composite Index increased 30.51 or 1.5% to close at 2,133.15. Toronto TSX Composite Index advanced 59.77 or 0.5% to 11,555.60.

Of the stocks in S&P 500 index, 421 increased, 75 declined and 4 were unchanged.

Adobe Systems Incorporated led the decliners in the S&P 500 index with a loss of 6.3% followed by losses in Wynn Resorts Ltd of 4.9%, in Coventry Healthcare of 4.7%, in Laboratory Corp of 4.6% and in Advanced Micro Devices of 3.2%.

New York Times led gainers in the S&P 500 index with a rise of 11.9% followed by gains in Hartford Financial Services 10.7%, in Gannett Company of 10.3% and in Anadarko Petroleum Corporation of 9.6%.

South American Markets Indexes

Mexico Bolsa Index increased 241.83 or 0.8% to 29,625.02 in yesterday’s trading and Brazil Bovespa Stock Index increased 1,146.80 or 1.9% to 60,410.66.

Argentina Merval Index closed up 2.4% and Chile Stock Market Select index edged higher 1.2%, Peru Lima General Index edged up 2.4% and Colombia IGBC General Index increased 0.3%.

Europe Markets Review

In London FTSE 100 Index closed higher 82.34 or 1.6% to 5,124.47, in Paris CAC 40 Index decreased 17.84 or 0.51% to close at 3,458.53 and in Frankfurt DAX index lower 64.01 or 1.18% to close at 5,353.01. In Zurich trading SMI decreased 27.87 or 0.47% to close at 5,911.91.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 53.15 or 0.52% to 10,270.77, Hang Seng index in Hong Kong increased 536.55or 2.57% to 21402.92 and CSI 300 index in China lawer 44.41or 1.34% to 3,258.24 ASX 200 index in Australia increased 110.10 or 2.42% to 4,650.40. The FTSE Bursa KL Composite index in Malaysia closed higher 5.51 or 0.46% to 1,212.98.

The Kospi Index in South Korea increased 29.93 or 1.81% to close at 1,683.33. SET index in Thailand closed higher 7.09 or 1.01% to 710.25 and JSE Index in Indonesia increased 19.25 or 0.80% to 2,439.36. The Sensex index in India increased 222.59 or 1.35% to 16,677.04.

Commodities, Metals, and Currencies

Crude oil increased $1.43 to $72.36 a barrel for a front month contract, natural gas edged up 44 cents to $3.76 per mBtu and gasoline decreased 5.72 cents to 184.64 cents.

Wheat futures closed down 3.25 cents in Chicago trading to $4.67 a bushel. Sugar edged up to 0.68 cents a pound to 24.00 cents. Soybean future closed down 4 cent to $9.50 a bushel.

Gold increased $12.20 in New York trading to close at $1,018.50 per ounce, silver closed up $0.43 to $17.43 per ounce and copper for the front month delivery increased 10.50 cent to $2.95 per pound.

Dollar edged lower against euro to $1.471 and closed lower against the Japanese yen to 90.94.

Yield on 10-year U.S. bonds increased to 3.47% and with 30-year maturities was unchanged to 4.26%.

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