U.S. Stocks Edge Higher; Emerging Markets Up

Mukesh Buch
02 Dec, 2009
New York City

Financial markets around the world traded higher for the third day in a row as investors expect a regional bailout of Dubai. Dubai is expected to delay payment on Islamic bonds of $3.4 billion and restructure $26 billion of bank debts. Gold surges to a new record.

[R]10:10 AM New York – Financial markets around the world traded higher for the third day in a row as investors expect a regional bailout of Dubai. Dubai is expected to delay payment on Islamic bonds of $3.4 billion and restructure $26 billion of bank debts. Gold surges to a new record.[/R]

U.S. stocks edged higher in the morning after the release of private survey of unemployment data. Three popular indexes edged higher by a fraction.

ADP Employer Services survey showed that private sector employers cut 169,000 jobs in November. The Labor Department report scheduled on Friday is expected to show a loss of at 120,000 jobs.

The latest data from ADP estimated that small companies cut 68,000 and large companies with more than 400 employees eliminated 44,000. Medium companies with payroll between 50 and 499 cut 57,000 jobs.

Emerging markets regain its footing and markets in Europe edge higher. Investors fears of wider contagion emanating from Dubai are ebbing and commodities prices scale higher.

Qatar benchmark index surged 5.3% as investors hope that a regional bailout will prevent Dubai default. Dubai World has initiated talks to restructure $26 billion of $59 billion of loans with more than 70 banks.

Commodities and metals prices increased in the early trading in New York. Crude oil increased 50 cents to $77.87 and gold jumped $13 to a new record of $1,213 an ounce. Copper and silver also edged up.

October industrial producer price index up 0.2% from September in both the euro area (EA16) and in the EU27, prices dropped 0.4% in both the euro area and EU27.

Earnings Review

Shanda Interactive Entertainment Limited, an interactive entertainment media company reported third quarter revenues rose 47.6% to Rmb 1.38 billion from Rmb 936.5 million a year ago. Net profit in the quarter rose 29% to Rmb 435.3 million or Rmb 6.18 per ADS compared to net profit of Rmb 337.1 million or Rmb 4.62 per ADS a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 36.74 or 0.38% to 9,608.94, and Hang Seng index in Hong Kong increased 176.42 or 0.80% to 22,289.57, and CSI 300 index in China higher 36.50 or 1.02% to 3,597.33. ASX 200 index in Australia increased 43.40 or 0.92% to 4,762.40 The FTSE Bursa KL Composite index in Malaysia was higher 4.44 or 0.35% to 1,271.15.

The Kospi Index in South Korea increased 21.91 or 1.40% to close at 1,591.63. SET index in Thailand closed lower 16.50 or 2.32% to 693.51. JSE Index in Indonesia increased 19.06 or 0.78% to 2,471.56. The Sensex index in India decreased 28.36 or 0.16% to 17,169.91.

Europe Markets Review

In London FTSE 100 Index traded lower 22.08 or 0.42% to 5,290.09, in Paris CAC 40 Index decreased 5.96 or 0.16% to 3,769.78 and in Frankfurt DAX index traded lower 16.89 or 0.29% to 5,759.72. In Zurich trading SMI decreased 1.33 or 0.02% to 6,370.75.