Global Markets Rise on U.S. Home Sales

123jump.com Staff
23 Nov, 2009
New York City

The U.S. market indexes closed higher after October home sales increased 10.1%. The data also lifted indexes in Canada, Mexico, South America and Europe. U.S. Treasury raised $44 billion through the sale of 2-year at the record low yields.

[R]4:30 PM New York, 9:30 PM London, 8:30 AM Sydney – The U.S. market indexes closed higher after October home sales increased 10.1%. The data also lifted indexes in Canada, Mexico, South America and Europe. U.S. Treasury raised $44 billion through the sale of 2-year at the record low yields.[/R]

U.S. stocks closed higher after the release of better than expected existing home sales in October. European markets gained momentum after the home statistics and closed up more than 2.2%. IMF chief warned that banks have declared only half the losses but does not see a “high probability” of a double dip recession.

The U.S. government sold $44 billion of 2-year notes today and is scheduled to sell $42 billion of 5-year notes and $32 billion 7-year bonds on Wednesday.

Zions Bancorporation led gainers in the S&P 500 index with a rise of 12.0%. Ciena Corp dropped 9% after it acquired optical network from Nortel. AnnTaylor Stores gained on an analyst upgrade. Mercado Libre surged 8%.

Fitch Ratings downgraded Mexico’s foreign currency rating to BBB from BBB+ and said that the current economic recession has weakened the government’s finances.

European benchmark indexes closed higher after commodities rallied and energy prices gained. The composite index of services and industries showed an expansion across 16-nations in the euro zone. Alstom SA was awarded €100 million contract in South Africa.

The UK benchmark index rose 2.2% after a rise in commodities and energy prices. Lloyds Banking Group plans to issue £7.5 billion of new convertible securities in exchange of junior notes that may be counted towards core capital. Experian Plc plans to open credit bureau in India.

Stocks in Hong Kong and Shanghai traded mixed as UBS warned of rising speculative attacks on the currency. Sands China Ltd completed its $2.5 billion public offering. The largest wind power generator China Longyuan Power plans to raise at least $2 billion in an initial public offering.

Stocks in Mumbai traded higher after Reliance Industries Ltd inches closer to acquire bankrupt LyondellBasell for at least $10 billion in cash. The debt laden company is operating under bankruptcy. Royal Dutch Shell is likely to take 10% stake in Essar Oil as a part of payment for refinery sale.

Stocks in Australia gained after commodities prices and gold edged higher. James Hardie Industries swung to a quarterly loss but projected higher than expected annual profit. Qantas plans to spend A$4.4 billion on new aircraft.

North American Markets

Dow Jones Industrial Average increased 132.79 or 1.3% to a close of 10,450.95, S&P 500 Index edged higher 14.86 or 1.5% to 1,106.24, and Nasdaq Composite Index added 29.97 or 1.4% to close at 2,176.01. Toronto TSX Composite Index increased 44.69 or 0.4% to 11,624.02.

Of the stocks in S&P 500 index, 442 increased, 57 declined and 1 was unchanged.

Ciena Corp led the decliners in the S&P 500 index with a loss of 8.8% followed by losses in Cephalon Inc of 8.6%, in People’s United of 2.7%, in Dynegy Inc of 2.6% and in Macy’s Inc of 2.2%.

Zions Bancorporation led gainers in the S&P 500 index with a rise of 12.5% followed by gains in Cigna Corporation 7.5%, in SunTrust Banks of 5.1% and in WellPoint, Inc of 4.6%.

South American Markets Indexes

Mexico Bolsa Index increased 459.66 or 1.5% to 31,126.17 and Brazil Bovespa Stock Index added 482.12 or 0.7% to 66,809.40.

Argentina Merval Index increased 0.9% and Chile Stock Market Select index increased 0.6% and Colombia IGBC General Index increased 0.2% and in Peru Lima General Index increased 0.04%.

Europe Markets Review

In London FTSE 100 Index closed higher 104.09 or 1.98% to 5,355.50, in Paris CAC 40 Index increased 83.81 or 2.25% to close at 3,813.17, in Frankfurt DAX index higher 138.33 or 2.44% to close at 5,801.48. In Zurich trading SMI increased 1432.78 or 2.12% to close at 6,410.24.


Asian Markets Review

Hang Seng index in Hong Kong increased 315.55 or 1.41% to 22,771.39, and CSI 300 index in China higher 34.50 or 0.95% to 3,665.51. ASX 200 index in Australia increased 31.20 or 0.67% to 4,717.00. The FTSE Bursa KL Composite index in Malaysia was lower 3.48 or 0.27% to 1,270.88. The markets in Japan were closed today.

The Kospi Index in South Korea decreased 1.55 or 0.10% to close at 1,619.05. SET index in Thailand closed lower 4.84 or 0.70% to 690.41. JSE Index in Indonesia decreased 5.95 or 0.24% to 2,481.42. The Sensex index in India increased 158.33 or 0.93% to 17,180.18.

Commodities, Metals, and Currencies

Crude oil decreased $0.07 to $77.49 a barrel for a front month contract, natural gas edged up 1 cent to $4.47 per mBtu and gasoline increased 0.03 cents to 197.97 cents.

Soybean future closed down 4.00 cents to $10.42 a bushel. Wheat futures closed down 2.25 cents in Chicago trading to $5.78 a bushel. Sugar closed lower 0.33 cent 22.14 cents.

Gold decreased $0.10 in New York trading to close at $1,164.60 per ounce, silver closed up $0.03 to $18.68 per ounce and copper for the front month delivery decreased 0.50 cent to $3.15 per pound.

Dollar edged lower against euro to $1.496 and edged lower against the Japanese yen to 88.02.

Yield on 10-year U.S. bonds decreased to 3.35% and with 30-year maturities closed down at 4.28%.