U.S. Follows World Markets Advances; Copper Up

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

U.S. stocks trade higher after holiday spending estimate suggested solid retail spending during the holiday season. European and Asian markets advance on the optimism that economies are recovering and the current quarter earnings are better than expected. The dollar held firm but the real edged up.

[R]9:45 AM New York – U.S. stocks trade higher after holiday spending estimate suggested solid retail spending during the holiday season. European and Asian markets advance on the optimism that economies are recovering and the current quarter earnings are better than expected. The dollar held firm but the real in Brazil gained.[/R]

U.S. stocks traded higher in the early morning as holiday retail sales were better than expected. Japan reported improving factory production and China said economic growth is ahead of the target.

MasterCard reported in its Spending Pulse report that holiday retail sales for the period between November 1 and December 24 increased 3.6% compared to a decline of 2.3% a year ago.

The customer traffic at several malls in Miami, Los Angeles, San Francisco and New York were above the recent years according to an informal survey conducted by 123jump.com of stores.

Industrial production in Japan increased 2.6% in November and the survey conducted by the government agency indicated manufacturing to rise 3.4% in December and 1.3% in January. The improved production data were led by a recovery in exports but domestic market remains weak.

Chinese government officials indicated that current year economic expansion is ahead of 8% target without giving any indication of the rate. Separately, Chinese Premier Wen Jiabao said that the government will hold firm to keep yuan stable and look for ways to cool the current property market boom.

United Arab Emirates awarded $20 billion nuclear power contract to South Korea consortium led by Korea Electric Power.

The dollar edged higher against the yen but held firm against the euro. Copper and platinum gained more than 1.5% in New York trading.

Markets in London, Sydney and Mumbai are closed today.

Earnings Review

Cal-Maine Foods, Inc., an egg producer reported second quarter sales fell 4% to $229.2 million from $238.3 million a year ago. Net income in the quarter fell 41% to $16.1 million or 67 cents per diluted share compared to net income of $27.2 million or $1.14 per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 139.52 or 1.33% to 10,634.23, and Hang Seng index in Hong Kong decreased 36.78 or 0.17% to 21,480.22, and CSI 300 index in China higher 53.65 or 1.57% to 3,478.43. The FTSE Bursa KL Composite index in Malaysia was higher 8.79 or 0.70% to 1,272.73. Markets in Australia were closed today.

The Kospi Index in South Korea increased 3.25 or 0.19% to close at 1,685.59. SET index in Thailand closed higher 3.30 or 0.45% to 733.71. JSE Index in Indonesia increased 34.81 or 1.41% to 2,509.69. Markets in India were closed today.

Europe Markets Review

In Paris CAC 40 Index increased 29.06 or 0.74% to 3,941.79 and in Frankfurt DAX index traded higher 44.12 or 0.74% to 6,001.56. In Zurich trading SMI increased 13.19 or 0.20% to 6,593.17.