Stocks Look for Direction in Commodities Markets

123jump.com Staff
11 Dec, 2009
New York City

U.S. stocks gained on better than expected retail sales. Resource stocks rallied on the steady demand from China. Import price index increased on the rise in fuel prices. Crude oil and gold futures declined but gold and other commodities increased.

[R]4:30 PM New York, 9:30 PM London, 8:30 AM Sydney – U.S. stocks gained on better than expected retail sales. Resource stocks rallied on the steady demand from China. Import price index increased on the rise in fuel prices. Crude oil and gold futures declined but gold and other commodities increased.[/R]

U.S. stocks closed higher but metals increased and energy prices declined. November retail sales increased 1.3% from the revised October sales of 1.1%. November import price index increased 1.7% driven by a surge of 7.3% in fuel prices.

Resource stocks gained after commodities prices increased on the hopes that Chinese industrial growth will sustain the world demand. Christopher & Banks surged after less than expected quarterly sales decline. NCR Corp increased on a broker upgrade. Retailers gained after government reported higher sales in November.

Procter & Gamble agreed to acquire Ambi Pur and toilet care products from Sara Lee Corp for €320 million. The business generates operating earnings of €24 million. Sara Lee has been refocusing its product portfolio.

European markets closed higher. Club Mediterranee posts fiscal-year loss. Thales SA plans to save €1.3 billion in the next five years. K+S AG completed its offering to raise $1 billion.

UK stocks wavered but closed higher. The producer price index increased 2.9% in November. Carillion gained 2% after it estimated sales increase of 10%. Resource stocks generally traded higher after China reported a surge in industrial activities.

The benchmark index in Tokyo surged 2.5% as the yen fell against the dollar. Automakers, electronics exporters and heavy machinery makers rallied. Banks declined. The consumer confidence index declined in November as respondents worry about job loss.

Chinese industrial production soared 19.2% in November, trade deficit shrank to the lowest level in the year and retail sales increased 15.8% in the month and consumer prices increased for the first time since January. Industrial production in India also surged.

Finance Minister Mukherjee said that government is likely to meet its tax revenue collection target for the current fiscal year on higher direct tax collection. The Lok Sabha approved additional $5.5 billion in spending. Industrial output jumped 10.3% in October.

The Australian benchmark index gained after China reported strong economic data driven by a rise in domestic demand. Commodities in the region gained. Australian dollar traded higher against major international currencies.

North American Markets

Dow Jones Industrial Average increased 68.78 or 0.7% to a close of 10,405.83, S&P 500 Index edged higher 6.40 or 0.6% to 1,102.35, and Nasdaq Composite Index increased 7.13 or 0.3% to close at 2,190.86. Toronto TSX Composite Index increased 85.35 or 0.8% to 11,464.57.

Latin American Markets Indexes

Mexico Bolsa Index increased 246.39 or 0.8% to 31,916.60 and Brazil Bovespa Stock Index increased 716.30 or 1.1% to 68,728.29.

Europe Markets Review

In London FTSE 100 Index closed higher 17.20 or 0.33% to 5,261.57, in Paris CAC 40 Index increased 5.34 or 0.14% to close at 3,803.72, in Frankfurt DAX index higher 47.27 or 0.83% to close at 5,756.29. In Zurich trading SMI increased 0.94 or 0.01% to close at 6,411.58.

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.

Commodities, Metals, and Currencies

Crude oil decreased $0.89 to $69.65 a barrel for a front month contract, natural gas edged down 15 cents to $5.15 per mBtu and gasoline increased 0.49 cents to 184.00 cents.

Soybean future closed up 8.00 cents to $10.35 a bushel. Wheat futures closed up 0.50 cents in Chicago trading to $5.375 a bushel. Sugar closed higher 0.74 cent 24 cents.

Gold decreased $10.90 in New York trading to close at $1,115.30 per ounce, silver closed up $0.027 to $17.22 per ounce and copper for the front month delivery increased 4.15 cent to $3.15 per pound.

Dollar closed higher against euro to $1.462 and edged higher against the Japanese yen to 89.06.

Yield on 10-year U.S. bonds increased to 3.54% and with 30-year maturities closed up at 4.50%.