World Markets Close Lower; Gold Shines

Mukesh Buch
20 Nov, 2009
New York City

U.S. stocks struggled as the world markets edged lower and commodities priced hovered near their recent highs. Gold trade above $1,150 an ounce. Michigan led the U.S. with unemployment rate of 15.1% and Florida and California registered record rate in October.

[R]4:30 PM New York, 9:30 PM London, 8:30 AM Sydney – U.S. stocks struggled as the world markets edged lower and commodities priced hovered near their recent highs. Gold trade above $1,150 an ounce. Michigan led the U.S. with unemployment rate of 15.1% and Florida and California registered record rate in October.[/R]

U.S. stocks closed lower in the footsteps of global markets, crude oil weakened but gold hovered near its 26-year high. California, Florida and Delaware reported record unemployment rate in October. The unemployment rate in Michigan led the nation with 15.1% rate and Nevada with 13% rate.

European markets closed lower. The ECB President Trichet comments suggest a gradual unwinding of economic stimulus. JC Decaux renews its exclusive advertising contacts in Shanghai. Technip awarded gas facilities contract in Abu Dhabi. Solon SE nine-month loss shrinks.

UK stocks struggled. Nationwide Building Society estimated tougher home market outlook in 2010. Home builder stocks declined. The pound decreased against the yen and the dollar on the rising deficit. Gartmore Group Ltd prepares public offering to raise £250 million.

Dell plunged nearly 9% after it missed quarterly revenues and earnings estimates. The Dress Barn, Inc quarterly net rises. The Gap, Inc third quarter net up 25%. Intuit Inc quarterly loss increases. D.R. Horton, Inc fourth quarter loss narrows.

Bank of Japan keeps rate at 0.1%. Deputy Prime Minister declares Japan has slipped into deflation. Semiconductor related stocks declined after Dell reported third quarter profit decline of 54%.

Stocks in Mumbai traded higher. Rupee edged lower but traded below 46.75 to a dollar. The IPO of a tour operator Cox & Kings India Ltd is 6.2 times oversubscribed. Bhusan Steel sells 5% stake to strategic investors. Scripps Networks agreed to acquire majority stake in NDTV unit for $55 million.

North American Markets

Dow Jones Industrial Average decreased 14.28 or 0.1% to a close of 10,318.16, S&P 500 Index edged lower 3.82 or 1.5% to 1,109.30, and Nasdaq Composite Index decreased 10.78 or 0.5% to close at 2,146.04. Toronto TSX Composite Index decreased 20.97 or 0.2% to 11,579.33.

Of the stocks in S&P 500 index, 172 increased, 320 declined and 8 were unchanged.

DR Horton Inc led the decliners in the S&P 500 index with a loss of 15.4% followed by losses in Dell Inc of 10%, in Nabor Industries Ltd of 5.6%, in Gannett Company of 4.7% and in News Corp of 3.7%.

MetroPCS Communications led gainers in the S&P 500 index with a rise of 6.5% followed by gains in The J. M. Smucker Company of 5.4%, in GameStop Corp 4.1%, in Merck & Company of 3.2% and in First Horizon of 2.9%.

South American Markets Indexes

Mexico Bolsa Index decreased 151.16 or 0.5% to 30,666.51 and Brazil Bovespa Stock Index decreased 188.38 or 0.3% to 66,327.28.

Argentina Merval Index decreased 0.4% and Chile Stock Market Select index increased 0.8% and Colombia IGBC General Index increased 0.1% and in Peru Lima General Index decreased 0.1%.

Europe Markets Review

In London FTSE 100 Index closed lower 13.61 or 0.26% to 5,254.09, in Paris CAC 40 Index decreased 22.66 or 0.60% to close at 3,737.56, in Frankfurt DAX index lower 33.17 or 0.58% to close at 5,669.01. In Zurich trading SMI decreased 10.73 or 0.17% to close at 6,276.08.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 51.79 or 0.54% to 9,497.68, and Hang Seng index in Hong Kong decreased 187.32 or 0.83% to 22,455.84, and CSI 300 index in China lower 11.42 or 0.31% to 3,631.01. ASX 200 index in Australia decreased 63.40 or 1.33% to 4,685.80. The FTSE Bursa KL Composite index in Malaysia was lower 2.29 or 0.18% to 1,274.36.

The Kospi Index in South Korea increased 0.06 or 0.00% to close at 1,620.60. SET index in Thailand closed lower 5.17 or 0.74% to 695.25. JSE Index in Indonesia increased 18.58 or 0.75% to 2,487.36. The Sensex index in India increased 236.20 or 1.41% to 17,021.85.

Commodities, Metals, and Currencies

Crude oil decreased $0.33 to $77.72 a barrel for a front month contract, natural gas edged up 9 cents to $4.54 per mBtu and gasoline increased 1.65 cents to 198.60 cents.

Soybean future closed up 7.00 cents to $10.46 a bushel. Wheat futures closed down 3.25 cents in Chicago trading to $5.80 a bushel. Sugar closed lower 0.26 cent 22.47 cents.

Gold increased $8.90 in New York trading to close at $1,150.80 per ounce, silver closed up $0.55 to $18.51 per ounce and copper for the front month delivery increased 4.40 cent to $3.15 per pound.

Dollar edged higher against euro to $1.486 and edged higher against the Japanese yen to 88.95.

Yield on 10-year U.S. bonds increased to 3.36% and with 30-year maturities closed up at 4.29%.