U.S. Markets Higher; Emerging Markets Fall

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

U.S., Germany, Italy and Portugal raised nearly $45 billion though bonds sale today. Treasuries yields in the U.S. and Europe inched up after the sale. Emerging markets declined on the worries after China increased bank reserve requirements.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S., Germany, Italy and Portugal raised nearly $45 billion though bonds sale today. Treasuries yields in the U.S. and Europe inched up after the sale. Emerging markets declined on the worries after China increased bank reserve requirements.[/R]

U.S. stocks traded sideways as Treasuries declined, the dollar advanced and commodities weakened. U.S. Treasury raised $21 billion in bond offering today. The Fed report suggested that the U.S. economy is improving in 10 of the 12 districts in December. The report cited modest improvements in conditions except in the Richmond and Philadelphia Fed districts.

Wyndham Worldwide surged after positive comments from Deutsche Bank. Petroleum refiners Tesoro and Valero declined on the worries that elevated crude oil prices will crimp margins. China based search engine surged after Google said it may close its operations in China. Res-Care Inc plunged 17% on lowered outlook.

European markets closed mixed and commodities prices declined. Portugal, Germany and Italy raised €16.3 billion in government bond sale. German gross domestic product declined 5% in 2009 after increasing 1.3% in the previous year. Economy appears to have stagnated in the last quarter.

UK stocks closed lower tracking a decline in commodities prices. UK November factory output was unchanged from October. Hershey is likely to bid for Cadbury Plc. Resource sector stocks declined after a weakness in metals and energy prices.

North American Markets

Dow Jones Industrial Average increased 36.73 or 0.4% to a close of 10,627.26, S&P 500 Index edged lower 10.76 or 0.9% to 1,136.22, and Nasdaq Composite Index decreased 30.10 or 1.3% to close at 2,282.31. Toronto TSX Composite Index increased 126.95 or 1.06% to 11,820.18.

Latin American Markets Indexes

Mexico Bolsa Index decreased 142.72 or 0.4% to 32,792.66 and Brazil Bovespa Stock Index fell 357.71 or 0.5% to 70,075.78.

Europe Markets Review

In London FTSE 100 Index closed lower 25.23 or 0.46% to 5,473.48, in Paris CAC 40 Index increased 0.81 or 0.02% to close at 4,000.86, in Frankfurt DAX index higher 20.14 or 0.34% to close at 5,963.14. In Zurich trading SMI increased 12.65 or 0.19% to close at 6,554.55.

Asian Markets Review



Commodities, Metals, and Currencies

Crude oil decreased $1.14 to $79.65 a barrel for a front month contract, natural gas edged up 14 cents to $5.73 per mBtu and gasoline decreased 3.76 cents to 206.02 cents.

Soybean future closed up 14.50 cents to $9.92 a bushel. Wheat futures closed up 1.25 cents in Chicago trading to $5.37 a bushel. Sugar closed up 0.68 cents at 28.04 cents.

Gold increased $7.40 in New York trading to close at $1,138.00 per ounce, silver closed up $0.29 to $18.55 per ounce and copper for the front month delivery increased 5.05 cent to $3.40 per pound.

Dollar closed lower against euro to $1.4503 and edged higher against the Japanese yen to 91.30.

Yield on 10-year U.S. bonds increased to 3.79% and with 30-year maturities closed higher at 4.71%.