U.S. Treasuries Decline; Stocks Advance

123jump.com Staff
17 Feb, 2010
New York City

U.S. stocks edged higher on a rise in industrial production and increase in housing starts. U.S. Treasuries declined after Fed policy makers debated ways to sell assets to shrink $2.26 trillion balance sheet. Soros Funds increased its holding of gold.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. stocks edged higher on a rise in industrial production and increase in housing starts. U.S. Treasuries declined after Fed policy makers debated ways to sell assets to shrink $2.26 trillion balance sheet. Soros Funds increased its holding of gold.[/R]

U.S. stocks advanced after industrial production increased at a faster pace and housing starts increased in January. Walgreen agreed to acquire Duane Reade for $1.1 billion.

Treasuries declined after the latest minutes of meetings of the Fed showed that members debated ways to shrink the balance sheet of $2.26 trillion.

Whole Foods Market, Inc led gainers in the S&P 500 index after it lifted the fiscal year outlook. Deere & Co lifts annual forecast after first quarter profit rises 19%. Martha Stewart Living Omnimedia surged 9% on 20% increase in quarterly revenues.

Soros Funds increased its holding of gold according to the latest regulatory filings with the SEC by the gold exchange traded fund managed by S&P. George Soros controlled fund is now the fourth largest owner of gold in the trust.

European markets advanced on better than expected earnings from BNP Paribas, Atos Origin, BIC SA, Deutsche Boerse and ING. Euro zone reported trade surplus of €4.4 billion in December. Construction activity increases in the month.

UK indexes edged higher as they have been in the last six sessions. Banks and financial services led the gainers. Legal & General Group net cash generated doubles. Balfour Beatty wins motorway deal. Thorntons profits jump 26%. Kedco said gasification plant delayed for lack of funds.

Asian markets soared following the gains in New York and Europe. The benchmark index in India increased ahead of the government budget on Feb 26. Australian index gained on better economic outlook.

The benchmark index in Japan soared 2.7% following the gains in New York and Europe. Automakers, steel mills and shipping companies led the advance. Toyota may recall Corolla is power steering is found defective.

In a pre-budget rally, stocks in Mumbai continue to advance. Finance Minister Mukherjee is scheduled to release budget on Feb 26. Tata Steel gained after it reported consolidated profit. Banks surged.

Australian stocks and dollar closed higher. Better economic outlook and expectations of higher rates in the year drove the market sentiment. Westfield annual loss shrank on a stake sale. CSL Ltd surged 5% on 23% increase in first half net. Coca-Cola Amatil Ltd net increased 16%, lower than expected.

North American Markets

Dow Jones Industrial Average added 169.67 or 1.7% to a close of 10,268.81, S&P 500 Index edged higher 19.36 or 1.8% to 1,094.87, and Nasdaq Composite Index added 30.66 or 1.4% to close at 2,214.19. Toronto TSX Composite Index increased 116.56 or 1% to 11,586.37.

Latin American Markets Indexes

Mexico Bolsa Index increased 606.45 or 1.95% to 31,644.77 and Brazil Bovespa Stock Index declined 273.97 or 0.4% to 65,854.97 in Friday’s trading.

Europe Markets Review

In London FTSE 100 Index closed higher 32.58 or 0.62% to 5,276.64, in Paris CAC 40 Index increased 56.71 or 1.53% to close at 3,725.21, in Frankfurt DAX index higher 56.22 or 1.01% to close at 5,648.34. In Zurich trading SMI increased 69.94 or 1.08% to close at 6,567.60.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 272.58 or 2.72% to 10,306.83, Hang Seng index in Hong Kong increased 265.32 or 1.31% to 20,534.01. ASX 200 index in Australia increased 100.10 or 2.19% to 4,667.90. The FTSE Bursa KL Composite index in Malaysia closed higher 5.68 or 0.45% to 1,259.07. The Market of China was closed today.

The Kospi Index in South Korea increased 26.38 or 1.65% to close at 1,627.43. SET index in Thailand closed higher 4.76 or 0.69% to 697.49 and JSE Index in Indonesia increased 22.84 or 0.89% to 2,581.34. The Sensex index in India increased 202.23 or 1.25% to 16,428.91.

Commodities, Metals, and Currencies

Crude oil increased $0.39 to $77.40 a barrel for a front month contract, natural gas edged up 7 cents to $5.38 per mBtu and gasoline increased 1.89 cents to 200.90 cents.

Soybean future closed down 13.50 cents to $9.61 a bushel. Wheat futures closed down 10.25 cents in Chicago trading to $5.09 a bushel. Sugar closed down 1.21 cents at 25.57 cents per pound.

Gold decreased $2.80 in New York trading to close at $1,117.00 per ounce, silver closed down $0.11 to $16.05 per ounce and copper for the front month delivery increased 1.15 cent to $3.25 per pound.

Dollar closed higher against euro to $1.3613 and edged higher against the Japanese yen to 91.21.

Yield on 10-year U.S. bonds closed up at 3.73% and with 30-year maturities closed higher at 4.71%.