U.S. and World Stocks Higher; Dubai Bailout

Mukesh Buch
14 Dec, 2009
New York City

The U.S. benchmark indexes traded higher in the early morning led by a rise in tech stocks. Oracle offered a revised proposal to acquire Sun Microsystems. Exxon Mobil offered $31 billion for XTO Energy. Abu Dhabi offered $10 billion emergency funding to the troubled real estate conglomerate in Dubai.

[R]10:15 AM New York – The U.S. benchmark indexes traded higher in the early morning led by a rise in tech stocks. Oracle offered a revised proposal to acquire Sun Microsystems. Exxon Mobil offered $31 billion for XTO Energy. Abu Dhabi offered $10 billion emergency funding to the troubled real estate conglomerate in Dubai.[/R]

The jittery world markets were calmer after Abu Dhabi provided $10 billion in emergency financing and Greek Prime Minister plans to make announcement to cut budget deficit to meet targets set by the European Union.

The dollar edged higher against the euro and the yen. Gold increased and natural gas advanced but the crude oil edged lower.

Crude oil fell 39 cents to $69.48 a barrel, gold edged up $3.60 to $1,123 an ounce and natural gas increased 19 cents to $5.35 per mBTU.

XTO Energy Inc increased more than 20% after Exxon Mobil agreed to acquire the company for $31 billion. Exxon will assume $10 billion in debt.

Sun Microsystems surges as much as 10% after Oracle Corp offered a revised proposal to acquire the company that meets EU regulatory requirements.

EU Production and Employment Fall

October industrial producer price index fell from September 0.6% in the euro area of 16 nations and 0.7% in the EU27. The production dropped 11.1% in the euro area and 10.2% in the EU27 from a year ago month.

Third quarter 2009 number of persons employed in the euro zone of 16 nations declined 0.5% compared to previous quarter and fell by 2.1% in same quarter a year ago. Compared to third quarter of 2008, employment fell by 2.1% in the euro zone and 2% in EU27.

Dubai and Abu Dhabi Markets Surge

The Dubai Financial Market General Index surged 10.3% to 1,871.20 and Abu Dhabi General Index increased 7.9%. Abu Dhabi agreed to provide $10 billion in emergency financing to the Dubai World subsidiary Nakheel PJSC.

Nakheel Islamic bond increased $3.52 billion surged more than 100% to 109 cents after the Abu Dhabi bailout.

UK Earnings Review

Whitbread PLC, the hotel, pub and restaurant owner said third quarter sales rose 6.7% and like-for-like sales inched up 0.3%. Premier Inn sales rose 3.5% and like-for-like sales fell 3.1%. Pub restaurants sales rose 2.8% and like-for-like sales rose 2.3%. Costa sales rose 20.7% and like-for-like sales rose 6.7%. Whitbread hotels and restaurants sales rose 3.1% and like-for-like sales fell 1.0%.

Nine months sales rose 4.3% and like-for-like sales fell 1.7%. Premier Inn sales rose 1.4% and like-for-like sales fell 6.0%. Pub restaurants sales fell 1.3% and like-for-like sales rose 2.0%. Costa sales rose 21.4% and like-for-like sales rose 3.9%. Whitbread hotels and restaurants sales rose 0.3% and like-for-like sales fell 2.8%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 2.19 or 0.02% to 10,105.68, and Hang Seng index in Hong Kong increased 183.64 or 0.84% to 22,085.75, and CSI 300 index in China higher 37.73 or 1.06% to 3,612.75. ASX 200 index in Australia increased 18.80 or 0.41% to 4,654.00. The FTSE Bursa KL Composite index in Malaysia was higher 5.45 or 0.43% to 1,265.45.

The Kospi Index in South Korea increased 7.87 or 0.47% to close at 1,664.77. SET index in Thailand closed higher 6.10 or 0.87% to 709.74. JSE Index in Indonesia decreased 12.71 or 0.50% to 2,506.39. The Sensex index in India decreased 21.48 or 0.13% to 17,097.55.

Europe Markets Review

In London FTSE 100 Index traded higher 44.24 or 0.84% to 5,305.81, in Paris CAC 40 Index increased 20.33 or 0.53% to 3,824.05 and in Frankfurt DAX index traded higher 49.24 or 0.86% to 5,805.53. In Zurich trading SMI increased 14.76 or 0.23% to 6,426.34.