American Markets Up in Global Rally; Gold Record

Mukesh Buch
11 Nov, 2009
New York City

U.S. and other American markets closed higher after a rally in commodities and resource stocks. Global markets rally was sparked after economic data in Japan and China indicated robust industrial activities. Gold reached a new high.

[R]4:30 PM New York, 9:30 PM London, 8:30 AM Sydney – U.S. and other American markets closed higher after a rally in commodities and resource stocks. Global markets rally was sparked after economic data in Japan and China indicated robust industrial activities. Gold reached a new high.[/R]

U.S. stocks closed higher on a rally in global markets. China reported better than expected industrial production data and machinery orders in Japan advanced. Japan also forecasted first quarterly increase in orders in two years. Stocks in New York edged higher as investors showed higher appetite for risk.

Clearwire Corp plunged 13% after the company prepares to raise $1.5 billion in rights offering. Macy’s declined after the quarterly sell declined. Maidenform Brands, Inc profits jump in third quarter. Toll Brothers surged on quarterly results and lower than expected cancellation rate.

European banks advanced after better than expected earnings from Credit Agricole SA, ING Groep NV, Intesa Sanpaolo SpA and UniCredit SpA. Switzerland based Holcim Ltd reported better than expected earnings on cost cutting. Sainsbury net in the first half rises 48%. HK Stock Exchange net surges.

UK stocks closed higher on a rise in commodities prices. J Sainsbury first-half profits beat expectations. Reed CEO departs as recession bites. October jobless claims increased at the slowest pace in eighteen months. The unemployment rate increased to 7.8% in the quarter ending in September.

EU extended deadline for fiscal deficit target requirement for France and Spain to 2013 and for the UK and Ireland to 2014. Nine countries were added on the deficit watch list. Banks in Europe closed higher after Credit Agricole reported better than expected earnings.

China retail sales and industrial production increased surged in October. Japan machinery orders rose in September and are expected to show its first quarterly gain in two years.

Stocks in India continued their ascent after the release of exports and tax collection data. Exports in October fell 11.4% and in the seven months declined 26.5%. Indirect tax collection fell 21.6% in the period. Shree Renuka Sugars Ltd acquired Brazil based sugar plantation.

North American Markets

Dow Jones Industrial Average increased 44.29 or 0.4% to a close of 10,291.26, S&P 500 Index edged higher 5.50 or 0.5% to 1,098.51, and Nasdaq Composite Index increased 15.82 or 0.7% to close at 2,166.90. Toronto TSX Composite Index increased 12.23 or 0.1% to 11,438.97.

Of the stocks in S&P 500 index, 329 increased, 162 declined and 9 were unchanged.

Macy''s, Inc led the decliners in the S&P 500 index with a loss of 8.2% followed by losses in J.C. Penney Company of 4.1%, in Priceline.com of 3.6%, in Kohls Corp of 3.1% and in GameStop Corp of 3%.

Pulte Homes Inc led gainers in the S&P 500 index with a rise of 8% followed by gains in MBIA Inc of 6.8%, in KB Home of 6.7%, in DR Horton Inc of 5.8% and in Lennar Corp of 5.8%.

South American Markets Indexes

Mexico Bolsa Index increased 309.44 or 1% to 31,097.64 and Brazil Bovespa Stock Index increased 127.75 or 0.2% to 66,431.24.

Argentina Merval Index decreased 1.2% and Chile Stock Market Select index decreased 0.5% and Colombia IGBC General Index decreased 0.01% and Peru Lima General Index fell 0.07%.

Europe Markets Review

In London FTSE 100 Index closed higher 39.30 or 0.75% to 5,269.85, in Paris CAC 40 Index increased 23.43 or 0.62% to close at 3,809.02, in Frankfurt DAX index higher 32.90 or 0.59% to close at 5,646.10. In Zurich trading SMI decreased 12.09 or 0.19% to close at 6,357.01.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 0.95 or 0.01% to 9,871.68, and Hang Seng index in Hong Kong increased 359.05 or 1.61% to 22,627.21, and CSI 300 index in China lower 8.10 or 0.23% to 3,495.67. ASX 200 index in Australia increased 23.40 or 0.49% to 4,757.00. The FTSE Bursa KL Composite index in Malaysia was lower 3.93 or 0.31% to 1,270.15.

The Kospi Index in South Korea increased 12.52 or 0.79% to close at 1,594.82. SET index in Thailand closed higher 9.70 or 1.37% to 717.90. JSE Index in Indonesia increased 21.92 or 0.92% to 2,403.88. The Sensex index in India increased 409.04 or 2.49% to 16,849.60.

Commodities, Metals, and Currencies

Crude oil increased $0.20 to $79.25 a barrel for a front month contract, natural gas edged up 3 cents to $4.50 per mBtu and gasoline increased 1.76 cents to 199.50 cents.

Soybean future closed up 4.00 cents to $9.72 a bushel. Wheat futures closed up 8.75 cents in Chicago trading to $5.13 a bushel. Sugar closed higher 0.76 cent 22.67 cents.

Gold increased $12.10 in New York trading to close at $1,114.60 per ounce, silver closed up $0.31 to $17.53 per ounce and copper for the front month delivery increased 0.45 cent to $2.966 per pound.

Dollar edged higher against euro to $1.4981 and edged lower against the Japanese yen to 89.81.

Yield on 10-year U.S. bonds increased to 3.48% and with 30-year maturities closed unchanged at 4.41%.