World Stocks Rise on China Exports, Auto Sales

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

Heineken NV agreed to acquire beer division of Femsa SAB of Mexico for 5.3 billion euros. Commodities prices and Asian stocks traded higher after China reported 18% rise in December exports. China surpassed Germany to be the largest exporter and the U.S. to be the largest automaker.

[R]9:40 AM New York – Heineken NV agreed to acquire beer division of Femsa SAB of Mexico for 5.3 billion euros. Commodities prices and Asian stocks traded higher after China reported 18% rise in December exports. China surpassed Germany to be the largest exporter and the U.S. to be the largest automaker.[/R]

World markets traded higher after China reported nearly 18% increase in exports in December. Sale of trucks and passenger cars in China rose to 13.6%, largest in the world and surpassed 10.4 million sales in the U.S.

The latest survey of UK financial services executives indicated that the largest groups of firms are pessimist since the beginning of 2009. Nearly 13% more firms anticipated decline in business more than anticipating an increase.

Heineken NV based in the Netherlands agreed to acquire beer division of Mexico based Fomento Economico Mexico SAB for 5.3 billion euros in exchange of shares.

China surpassed Germany as world’s largest exporter but is likely to shrink its trade deficit dramatically in 2010.

Commodities prices increased on the back of China’s exports data. Copper, gold and aluminum traded higher in London.

The dollar declines after the euro edged above $1.45 as commodities prices gain.

China’s Exports Rise, Surplus Fall

People’s Daily Online reported that China Customs Office said yesterday the country’s exports rose 17.7% year-on-year to $1.2 trillion in 2009, overtaking Germany as the world’s largest exporter.

Germany foreign trade organisation forecasts the exports of $1.17 trillion for 2009.

However, imports advanced 55.9% led by record purchase of soybeans, crude oil and other items. And, crude oil imports edged up 13.9% to 203.4 million tons.

Overall trade surplus shrank 4% in December from a month earlier, but the trade surplus dropped 34.2% to $196 billion in 2009.

Asian Markets Review

Hang Seng index in Hong Kong increased 114.77 or 0.51% to 22,411.52, and CSI 300 index in China higher 1.92 or 0.06% to 3,482.05. ASX 200 index in Australia increased 38.60 or 0.79% to 4,950.70. The FTSE Bursa KL Composite index in Malaysia was higher 1.53 or 0.12% to 1,294.51. Markets in Japan were closed today.

The Kospi Index in South Korea decreased 1.14 or 0.07% to close at 1,694.12. SET index in Thailand closed higher 7.99 or 1.08% to 746.95. JSE Index in Indonesia increased 17.83 or 0.68% to 2,632.20. The Sensex index in India decreased 13.58 or 0.08% to 17,526.71.

Europe Markets Review

In London FTSE 100 Index traded higher 44.04 or 0.80% to 5,578.28, in Paris CAC 40 Index increased 37.20 or 0.92% to 4,082.34 and in Frankfurt DAX index traded higher 44.33 or 0.73% to 6,081.94. In Zurich trading SMI increased 33.07 or 0.50% to 6,650.95.