Global Markets Rest; Weak Dollar

Mukesh Buch
17 Nov, 2009
New York City

U.S. stocks traded sideways and the markets in Europe closed lower. Markets in Asia struggled after a four week rally in the region following better than expected earnings. Dollar hovered near its yearly low and gold raced to a new high.

[R]4:30 PM New York, 9:30 PM London, 8:30 AM Sydney – U.S. stocks traded sideways and the markets in Europe closed lower. Markets in Asia struggled after a four week rally in the region following better than expected earnings. Dollar hovered near its yearly low and gold raced to a new high.[/R]

U.S. stocks traded sideways but edged higher at close. Berkshire Hathaway disclosed stakes of $95 million in Exxon Mobil and $2 billion in Wal-Mart according to a regulatory filing. Federal Reserve began its early process of unwinding liquidity measures and cut the maximum maturity of loans available at the discount window to 28 days from 90 days.

European stocks traded lower and Asian markets closed lower after Fed Chairman Bernanke gave a cautious outlook. U.S. commercial real estate loans of $500 billion annually are due for the next few years. Wholesale prices in October increased 0.3%. Euro-zone September surplus was 3.7 billion euros.

UK stocks edged lower after metals and energy prices edged lower. Big Yellow Group reported larger first-half profits. Burberry Group raises first-half dividend as profit meets estimates. The British Land Co sees improving trends. EasyJet plc full-year profit drops 14.4%.

Stocks in Mumbai traded higher. Amtek Auto jumps 14% after it repurchased bonds. Jaiprakash Associates plans to sell 60 million shares in its subsidiary. Tata Steel plans to increase iron ore output.

The index of business confidence in Australia gains in September. Reserve Bank of Australia noted uncertain outlook for the interest rate increase. Stocks declined. China approves Baosteel’s investment in Aquila.

North American Markets

Dow Jones Industrial Average increased 136.49 or 1.3% to a close of 10,406.96, S&P 500 Index edged higher 15.82 or 1.5% to 1,109.30, and Nasdaq Composite Index increased 29.97 or 1.4% to close at 2,197.85. Toronto TSX Composite Index increased 104.58 or 0.9% to 11,512.26.

Of the stocks in S&P 500 index, 459 increased, 39 declined and 2 were unchanged.

Jacobs Engineering Group Inc led the decliners in the S&P 500 index with a loss of 12.1% followed by losses in Smith International, Inc of 9.8%, in Wynn Resorts, Limited of 4.9%, in Comcast Corporation of 2.4% and in The Home Depot, Inc of 2.1%.

MBIA Inc led gainers in the S&P 500 index with a rise of 8.2% followed by gains in Sprint Nextel Corporation 4.5%, in Ciena Corporation of 3.4% and in State Street Corporation of 2.9%.

South American Markets Indexes

In Friday’s trading Mexico Bolsa Index increased 242.24 or 0.8% to 31,002.09 and Brazil Bovespa Stock Index increased 1,301.47 or 2% to 66,627.10.

Argentina Merval Index increased 2.7% and Chile Stock Market Select index decreased 0.4% and Colombia IGBC General Index increased 0.2% in Friday’s trading and Peru Lima General Index added 0.8%.

Europe Markets Review

In London FTSE 100 Index closed lower 36.74 or 0.68% to 5,345.93, in Paris CAC 40 Index decreased 34.10 or 0.88% to close at 3,829.06, in Frankfurt DAX index lower 26.39 or 0.45% to close at 5,778.43. In Zurich trading SMI decreased 46.41 or 0.72% to close at 6,376.40.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 61.25 or 0.63% to 9,729.93, and Hang Seng index in Hong Kong decreased 29.83 or 0.13% to 22,914.15, and CSI 300 index in China higher 2.56 or 0.07% to 3,628.35. ASX 200 index in Australia decreased 25.80 or 0.54% to 4,729.40. The FTSE Bursa KL Composite index in Malaysia was higher 1.64 or 0.13% to 1,279.95.

The Kospi Index in South Korea decreased 6.49 or 0.41% to close at 1,585.98. SET index in Thailand closed lower 0.20 or 0.03% to 706.55. JSE Index in Indonesia increased 5.11 or 0.21% to 2,473.79. The Sensex index in India increased 18.14 or 0.11% to 17,050.65.

Commodities, Metals, and Currencies

Crude oil increased $0.55 to $79.45 a barrel for a front month contract, natural gas edged down 8 cents to $4.54 per mBtu and gasoline increased 2.62 cents to 201.60 cents.

Soybean future closed up 19.50 cents to $10.29 a bushel. Wheat futures closed up 12.75 cents in Chicago trading to $5.96 a bushel. Sugar closed lower 0.13 cent 23.10 cents.

Gold increased $2.20 in New York trading to close at $1,141.40 per ounce, silver closed up $0.02 to $18.42 per ounce and copper for the front month delivery increased 1.15 cent to $3.14 per pound.

Dollar edged higher against euro to $1.487 and edged higher against the Japanese yen to 89.32.

Yield on 10-year U.S. bonds increased to 3.32% and with 30-year maturities closed down at 4.26%.