Manufacturing Expands; World Stocks, Oil Rise

123jump.com Staff
04 Jan, 2010
New York City

U.S. indexes closed up more than 1.5% after a rally in energy and metals. Manufacturing indexes in the U.S., China and India showed expansion. Emerging markets rallied with resource linked economies leading. The benchmark index in Brazil closed above 70,000.

[R]5:30 PM New York, 10:30 PM London, 9:30 AM Sydney – U.S. indexes rebounded more than 1.5% after a rally in energy and metals. Manufacturing indexes in the U.S., China and India showed expansion. Emerging markets rallied with resource linked economies leading. The benchmark index in Brazil closed above 70,000.[/R]

U.S. stocks followed the gains in Europe and Asia. Manufacturing index in the U.S. showed a stronger than expected expansion and two separate reports in China suggest a robust manufacturing expansion and India reported gains in manufacturing and exports. Crude oil and natural gas gained after record low temperatures in the U.S. and record snowfalls in China and Korea.

Novartis agreed to acquire Alcon Inc for additional $39.3 billion. The Swiss pharmaceutical giant will pay $28.1 billion to gain 52% stake from Nestle and $11.2 billion to minority share holders.

Energy related stocks gained after a rally in natural gas and crude oil. Total SA investment in Chesapeake Energy controlled energy field also helped the sector. Deutsche Bank’s positive comments lifted oil refiners.

European indexes traded near fifteen month high as resource stocks lead the gainers. Energy prices rose after record low temperatures in the U.S., China and Korea. European investors’ confidence registered an increase.

UK stocks edged higher as metals added to the gains of the last week. Manufacturing index increased in December and mortgage approvals expanded. Gilts held firm ahead of rate and bond program decision this Wednesday.

Stocks in India gained on the expectations of faster economic growth in the current fiscal year and expanding manufacturing sector. Reliance Industries raised $575 million to purchase LyondellBasell Industries in a second sale of treasury stocks. Exports increased 18% in November.

North American Markets

Dow Jones Industrial Average increased 155.91 or 1.50% to a close of 10,583.96, S&P 500 Index edged higher 17.89 or 1.6% to 1,132.99, and Nasdaq Composite Index increased 39.27 or 1.7% to close at 2,308.42. Toronto TSX Composite Index added 120.79 or 1.03% to 11,866.90.

Latin American Markets Indexes

Mexico Bolsa Index increased 638.06 or 2% to 32,758.53 and Brazil Bovespa Stock Index added 1,456.67 or 2.1% to 70,045.08.

Europe Markets Review

In London FTSE 100 Index closed higher 87.46 or 1.62% to 5,500.34, in Paris CAC 40 Index increased 77.64 or 2% to close at 4,013.97, in Frankfurt DAX index higher 90.87 or 1.5% to close at 6,048.30. In Zurich trading SMI increased 85.53 or 1.31% to close at 6,631.44.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 108.35 or 1.03% to 10,654.79, and Hang Seng index in Hong Kong decreased 49.22 or 0.23% to 21,823.28, and CSI 300 index in China lower 16.27 or 0.46% to 3,559.41. ASX 200 index in Australia increased 5.70 or 0.12% to 4,876.30. The FTSE Bursa KL Composite index in Malaysia was higher 2.97 or 0.23% to 1,275.75.

The Kospi Index in South Korea increased 13.37 or 0.79% to close at 1,696.14. SET index in Thailand closed lower 2.26 or 0.31% to 732.28. JSE Index in Indonesia increased 41.06 or 1.62% to 2,575.41. The Sensex index in India increased 93.92 or 0.54% to 17,558.73.

Commodities, Metals, and Currencies

Crude oil increased $2.30 to $81.66 a barrel for a front month contract, natural gas edged up 27 cents to $5.84 per mBtu and gasoline increased 6.13 cents to 211.42 cents.

Soybean future closed up 9.50 cents to $10.58 a bushel. Wheat futures closed up 16.25 cents in Chicago trading to $5.57 a bushel. Sugar closed up 0.67 cents at 27.62 cents.

Gold increased $25.60 in New York trading to close at $1,121.80 per ounce, silver closed up $0.74 to $17.58 per ounce and copper for the front month delivery increased 6.85 cent to $3.4150 per pound.

Dollar closed lower against euro to $1.4419 and edged higher against the Japanese yen to 92.51.

Yield on 10-year U.S. bonds increased to 3.82% and with 30-year maturities closed higher at 4.64%.