Bernanke Comments Cool Stocks, Gold, Oil

Mukesh Buch
07 Dec, 2009
New York City

U.S. socks wavered after Fed Chairman Bernanke comments suggested uneven and slow economic recovery. Gold and crude oil futures declined. FedEx lifted its latest quarter results to $1.10 a share from the previous estimate between 65 cents and 95 cents a share.

[R]4:30 PM New York, 9:30 PM London, 8:30 AM Sydney – U.S. socks wavered after Fed Chairman Bernanke comments suggested uneven and slow economic recovery. Gold and crude oil futures declined. FedEx lifted its latest quarter results to $1.10 a share from the previous estimate between 65 cents and 95 cents a share.[/R]

U.S. stocks declined and the dollar increased as the rate increase speculation swirl the market. Citigroup trades lower after the Kuwait Investment Authority sells its entire stake and earns $1.1 billion profit. Markets in the Middle East declined with Dubai leading the emerging markets with a loss of 5.8%.

Fed Chairman Bernanke in a speech to the Economic Club of Washington said that the economic recovery will be slow and uneven. The constrained lending and weak job markets are expected to hamper the economic revival.

UK stocks wavered as the commodities declined and the dollar was on the rise in European trading. Shanks Group surges after Carlyle Group makes an unsolicited offer. Banks retreated after Chancellor of Exchequer Darling said that he will tax excessive bonuses at banks.

German orders in October fell 2.1% from September and declined 8.5% from a year ago month. Greece led the decliners in region after S&P placed its debt on a watch list. Thales and Safran negotiate to reorganize and swap assets. The retailer, Arcandor AG surges on the improved business outlook.

Japan bank lending declined 0.9% to 422.2 trillion yen in November. Tokyo office vacancy jumps to 6.4% in November. Japan foreign currency reserve assets soar to $1.1 trillion in November. Japan Airlines is likely to get a loan guarantee of as much as $7.8 billion.

Stocks in Mumbai traded lower after rupee weakened and gold prices edged lower. Edserv Softsystems Ltd plans to raise $25 million. GVK Power acquires 17% stake in Bangalore airport project from Larsen Toubro. Dr Reddy's Lab falls.

North American Markets

Dow Jones Industrial Average increased 1.21 or 0.01% to a close of 10,390.11, S&P 500 Index edged lower 2.73 or 0.3% to 1,103.25, and Nasdaq Composite Index decreased 4.74 or 0.2% to close at 2,189.61. Toronto TSX Composite Index decreased 21.71 or 0.2% to 11,489.63.

Of the stocks in S&P 500 index, 225 increased, 265 declined and 10 were unchanged.

Masco Corp led the decliners in the S&P 500 index with a loss of 4.7% followed by losses in KeyCorp of 4.4% and in Host Hotels & REIT of 4.2%, in Kimco Realty of 3.8% and in Avon Products of 3.6%.

Sprint Nextel Co led gainers in the S&P 500 index with a rise of 13.3% followed by gains in Nvidia Corp of 12.8%, in Advanced Micro Devices, Inc 8.4%, in Gannett Co., Inc of 7.18% and in Comcast Corp of 7.1%.

South American Markets Indexes

Mexico Bolsa Index decreased 20.22 or 0.06% to 32,085.17 and Brazil Bovespa Stock Index increased 908.66 or 1.3% to 68,512.19.

Argentina Merval Index increased 0.07% and Chile Stock Market Select index fell 0.6% and Colombia IGBC General Index increased 0.01% and in Peru Lima General Index decreased 0.6%.

Europe Markets Review

In London FTSE 100 Index closed lower 11.70 or 0.22% to 5,310.66, in Paris CAC 40 Index decreased 6.57 or 0.17% to close at 3,840.05, in Frankfurt DAX index lower 32.90 or 0.57% to close at 5,784.75. In Zurich trading SMI decreased 30.55 or 0.47% to close at 6,470.61.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 145.01 or 1.45% to 10,167.60, and Hang Seng index in Hong Kong decreased 173.19 or 0.77% to 22,324.96, and CSI 300 index in China higher 25.34 or 0.70% to 3,668.83. ASX 200 index in Australia decreased 25.70 or 0.55% to 4,676.50 The FTSE Bursa KL Composite index in Malaysia was lower 4.84 or 0.38% to 1,265.36.

The Kospi Index in South Korea increased 7.89 or 0.49% to close at 1,632.65. JSE Index in Indonesia decreased 27.79 or 1.11% to 2,483.76. The Sensex index in India decreased 118.40 or 0.69% to 16,983.14. Markets in Thailand were closed today.

Commodities, Metals, and Currencies

Crude oil decreased $1.39 to $74.08 a barrel for a front month contract, natural gas edged increased 38 cents to $4.97 per mBtu and gasoline decreased 2.58 cents to 194.92 cents.

Soybean future closed up 10.00 cents to $10.53 a bushel. Wheat futures closed down 10.00 cents in Chicago trading to $5.48 a bushel. Sugar closed lower 0.07 cent 22.45 cents.

Gold decreased $10.70 in New York trading to close at $1,158.00 per ounce, silver closed down $0.30 to $18.22 per ounce and copper for the front month delivery decreased 3.05 cent to $3.20 per pound.

Dollar closed higher against euro to $1.4827 and edged lower against the Japanese yen to 89.41.

Yield on 10-year U.S. bonds decreased to 3.43% and with 30-year maturities closed down at 4.38%.