U.S. Stocks Struggle; Dollar Gains

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

U.S. stocks traded sideways as commodities remained near their multi-year highs. Same store retail sales at stores increased 2.3% in the week ending December 26. The dollar edged higher against the euro and the yen.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. stocks traded sideways as commodities remained near their multi-year highs. Same store retail sales at stores increased 2.3% in the week ending December 26. The dollar edged higher against the euro and the yen.[/R]

U.S. stocks closed lower after inching higher in the morning. Copper led the gainers in commodities trading as Chilean workers strike and Chinese economy expands at a faster pace than the targeted 8% rate. Sugar surged to twenty year high and copper jumped more than 2% in London trading and closed lower in New York.

Same store retail sales open at least one year increased 2.3% in the week ended December 26 according to the International Council of Shopping Centers and Goldman Sachs.

Banks and two mortgage agencies Fannie Mae and Freddie Mac led the most active stocks in New York. Imperial Sugar settles its property insurance claim for $345 million. Resource stocks gained after a rally in copper and sugar. Banks led the most active stocks in New York trading.

European markets edged higher with most markets are set to register at least 20% gains in 2009. The DAX index in Germany is up 25%, CAC 40 index is ahead 23% and FTSE 100 index has gained 22%. The broader indexes have gained the most in four years.

UK stocks gained for the fifth day in a row as it rebounds to pre-Lehman crisis level and recover 53% from its lows in March. The index is up 22% for the year. Vodafone Group acquired a Turkey based telecom operator. Natural resource stocks lead gainers as copper and metal prices gain.

Japan and India signed several agreements as Prime Minister Hatoyama concludes his 3-day trip to India. Japan expects to make several billion dollars of investment to develop Delhi- Mumbai investment corridor. Jindal Power Ltd files to raise $1.5 billion.

North American Markets

Dow Jones Industrial Average increased 1.51 or 0.01% to a close of 10,466.44, S&P 500 Index edged higher 2.57 or 0.2% to 1,120.59, and Nasdaq Composite Index increased 16.97 or 0.8% to close at 2,269.64. Toronto TSX Composite Index added 30.72 or 0.3% to 11,658.70.

Latin American Markets Indexes

Mexico Bolsa Index increased 209.91 or 0.7% to 32,450.23 and Brazil Bovespa Stock Index added 170.93 or 0.3% to 67,588.86.

Europe Markets Review

In London FTSE 100 Index closed higher 35.20 or 0.65% to 5,437.61, in Paris CAC 40 Index increased 12.83 or 0.33% to close at 3,959.98, in Frankfurt DAX index higher 8.63 or 0.14% to close at 6,011.55. In Zurich trading SMI increased 17.51 or 0.27% to close at 6,608.52.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 3.83 or 0.04% to 10,638.06, and Hang Seng index in Hong Kong increased 19.22 or 0.09% to 21,499.44, and CSI 300 index in China higher 22.30 or 0.64% to 3,500.74. ASX 200 index in Australia increased 54.20 or 1.13% to 4,845.10. The FTSE Bursa KL Composite index in Malaysia was higher 2.49 or 0.20% to 1,275.22.

The Kospi Index in South Korea decreased 13.11 or 0.78% to close at 1,672.48. SET index in Thailand closed higher 8.45 or 1.15% to 742.16. JSE Index in Indonesia increased 9.30 or 0.37% to 2,518.99. The Sensex index in India increased 40.95 or 0.24% to 17,401.56.

Commodities, Metals, and Currencies

Crude oil decreased $0.03 to $78.84 a barrel for a front month contract, natural gas edged down 1 cent to $5.83 per mBtu and gasoline increased 0.34 cents to 201.40 cents.

Soybean future closed down 5 cents to $10.42 a bushel. Wheat futures closed down 1.00 cent in Chicago trading to $5.40 a bushel. Sugar closed down 49 cents at 26.77 cents.

Gold decreased $4.60 in New York trading to close at $1,093.50 per ounce, silver closed down $0.05 to $17.06 per ounce and copper for the front month delivery decreased 0.70 cent to $3.29 per pound.

Dollar closed higher against euro to $1.434 and edged higher against the Japanese yen to 92.02.

Yield on 10-year U.S. bonds decreased to 3.81% and with 30-year maturities closed lower at 4.64%.