U.S. Treasuries Decline; Dollar Rises

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

U.S. stocks traded sideways as Treasuries declined, the dollar advanced and commodities weakened. U.S. Treasury is scheduled to raise $21 billion in bond offering today. Google declined after the company said it may close down its operations in China and Baidu Inc surged.

[R]2:00 PM New York – U.S. stocks traded sideways as Treasuries declined, the dollar advanced and commodities weakened. U.S. Treasury is scheduled to raise $21 billion in bond offering today. Google declined after the company said it may close down its operations in China and Baidu Inc surged.[/R]

U.S. stocks seesawed after nearly four hours of trading as banks and financial services led the declined. Yields on Treasuries were on the rise as investors worry that rising government debt will weaken bonds in the coming years.

World markets were in retreat today and emerging market led the decline. Earlier than anticipated of stimulus withdrawal by China spooked several investors around the world and commodities markets edged lower.

German gross domestic product declined 5% in 2009 after increasing at 1.3% in 2008 according to the latest report released by the Federal Statistics Office.

One euro fetched $1.4501 and one pound traded at $1.6258.

U.S. Treasury is scheduled to complete its $21 billion offering today of the $84 billion of bond sales this week and the governments of Germany, Italy and Portugal sold 16.3 billion euros of debt today.

U.S. crude oil inventories at the end of last week increased 3.7 million barrels to 331.0 million barrels. Motor Gasoline inventories increased 3.8 million barrels and inventories of finished gasoline decreased and distillate inventories increased by 1.4 million barrels.

Crude oil declined 2% to $79 a barrel, gold fell $6.40 to $1,123 an ounce and natural gas fell 13 cents to $5.46 per mBtu.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 144.11 or 1.32% to 10,735.03, and Hang Seng index in Hong Kong decreased 578.04 or 2.59% to 21,748.60, and CSI 300 index in China lower 113.77 or 3.22% to 3,421.14. ASX 200 index in Australia decreased 31.40 or 0.64% to 4,868.10. The FTSE Bursa KL Composite index in Malaysia was lower 3.34 or 0.26% to 1,289.51.

The Kospi Index in South Korea decreased 27.23 or 1.60% to close at 1,671.41. SET index in Thailand closed higher 1.50 or 0.20% to 746.74. JSE Index in Indonesia decreased 26.68 or 1.00% to 2,632.87. The Sensex index in India increased 87.29 or 0.50% to 17,509.80.

Europe Markets Review

In London FTSE 100 Index traded lower 18.47 or 0.34% to 5,480.24, in Paris CAC 40 Index decreased 7.63 or 0.19% to 3,992.42 and in Frankfurt DAX index traded higher 11.11 or 0.19% to 5,954.11. In Zurich trading SMI increased 0.44 or 0.01% to 6,542.34.