Stocks in New York Track World Markets Gains

Mukesh Buch
11 Dec, 2009
New York City

Markets in Asia closed higher and in Europe traded up at mid-day. Stocks in New York are expected to open higher after Chinese industrial production and retail sales surged more than expected. Commodities in New York and London trade higher on China demand.

[R]8:30 AM New York – Markets in Asia closed higher and in Europe traded up at mid-day. Stocks in New York are expected to open higher after Chinese industrial production and retail sales surged more than expected. Commodities in New York and London trade higher on China demand.[/R]

Commodities in London and markets in Asia and Europe edged higher after China recorded a surge in industrial activity and imports rose at a rapid pace.

Copper and other industrial metals advanced on the prospect of sustained demand from China and India. Copper in London trading increased 1.2% to 6,887.55 a ton and Crude oil January futures increased 0.5% to $71.78 a barrel. Gold also added 0.7% to 1,139.00 an ounce.

Markets in Asia and emerging markets sustained the advances as the domestic demand and local government stimulus play an increasing role.

The latest economic data released in China showed a surge in domestic demand and shrinking role of international trade in the Chinese economy. The government stimulus is providing much needed support to the economy and raises the prospect of China recording its first trade deficit in 2010.

India also recorded sustained industrial activity but lower than expected electricity generation hurt the industrial activity.

UK government bonds declined and 10-year German bonds gained slightly to 3.2% yield. UK wholesale inflation or producer prices index increased 2.9% annual rate in November, the sharpest increase in nine months.

Earnings Review

HMV Group plc, the retailer of music, DVD, games and books said first-half sales rose 5.6% to £797 million from £754.5 million a year ago. Net loss for the first-half was £17.8 million or 4.2 pence per diluted share compared to net loss of £19.8 million or 4.8 pence per share a year ago.

Club Mediterranee SA, a vacation club operator and travel organizer said full-year sales fell 8% to €1.36 billion from €1.48 billion a year ago. Net loss in the full-year was €53 million compared to net profit of €2 million a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 245.05 or 2.48% to 10,107.87, Hang Seng index in Hong Kong increased 202.07 or 0.93% to 21,902.11 and CSI 300 index in China lower 2.22 or 0.06% to 3,575.02. ASX 200 index in Australia increased 28.50 or 0.62% to 4,635.20. The FTSE Bursa KL Composite index in Malaysia closed higher 0.10 or 0.01% to 1,260.00.

The Kospi Index in South Korea increased 4.17 or 0.25% to close at 1,656.90. SET index in Thailand closed higher 8.93 or 1.29% to 703.64 and JSE Index in Indonesia increased 32.66 or 1.31% to 2,519.10. The Sensex index in India decreased 70.28 or 0.41% to 17,119.03.

Europe Markets Review

In London FTSE 100 Index traded higher 44.22 or 0.84% to 5,288.59, in Paris CAC 40 Index increased 22.33 or 0.59% to 3,820.71 and in Frankfurt DAX index traded higher 59.52 or 1.04% to 5,768.54. In Zurich trading SMI increased 28.20 or 0.44% to 6,438.84.