U.S., World Indexes, Oil Reflect Optimism

123jump.com Staff
03 Mar, 2010
New York City

Federal Reserve in its latest survey noted that the U.S. economy improved in most areas but the labor market remained soft and commercial real estate loans and loan demands were weak. The euro gained as optimism builds ahead of a meeting between the political leaders of Greece and German.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – Federal Reserve in its latest survey noted that the U.S. economy improved in most areas but the labor market remained soft and commercial real estate loans and loan demands were weak. The euro gained as optimism builds ahead of a meeting between the political leaders of Greece and German.[/R]

U.S. indexes traded higher and commodities prices advanced on improved economic outlook. The dollar edged lower after Greece announced additional budget cuts. Service industry index showed expansion in February.

Novell, Inc led gainers in the S&P 500 index with a rise of 27.3%. VeriFone swings to profit in fiscal first quarter. Kenneth Cole Productions, Inc fourth quarter loss expands fourfold. Royal Bank of Canada declares dividends. Wholesale club Costco and BJ’s reported weaker margins.

European markets closed higher on a rally in resource stocks. Greece proposed additional budget cuts as expected. Alternative energy producers gained after German ministers proposed lower than expected cut in subsidies. Employee placement company Adecco swung to a profit.

UK indexes and stocks closed higher after service industry index showed expansion and consumer confidence in February reached a two-year high. Standard Chartered Plc reported record 2009 net income.

Stocks in Japan edged fractionally higher after February wages increased. Employers added more overtime to meet a rise in export orders. Toyota sales in the U.S. declined less than expected. Retailers traded higher in Tokyo trading and Fast Retailing led the gainers.

Mumbai land auction failed to attract a single bidder. ARSS Infrastructure initial public offering surged 52% on its first day of trading. Ranbaxy slips as U.S. regulator delay generic drug approval. Jaiprakash Associates cement shipment surges 61% in February.

Australia’s fourth quarter GDP rose 0.9% from the third quarter and 2.7% in 2009. Australia is one of the few countries that averted a significant economic slowdown and unemployment barely crossed 6%. The GDP is expected to accelerate to 3.25% rate in the fourth quarter of 2010. Australia’s service industry contraction eases in February.

North American Markets

Dow Jones Industrial Average decreased 9.22 or 0.09% to a close of 10,396.76, S&P 500 Index edged higher 0.48 or 0.04% to 1,118.79 and Nasdaq Composite Index fell 0.11 or to close at 2,280.68. Toronto TSX Composite Index increased 24.54 or 0.2% to 11,852.85.

Latin American Markets Indexes

Mexico Bolsa Index increased 298.50 or 0.9% to 32,353.54 and Brazil Bovespa Stock Index decreased 137.81 or 0.2% to 67,641.34.

Europe Markets Review

In London FTSE 100 Index closed higher 49.15 or 0.90% to 5,533.21, in Paris CAC 40 Index increased 30.60 or 0.80% to close at 3,842.52, in Frankfurt DAX index higher 41.32 or 0.72% to close at 5,817.88. In Zurich trading SMI decreased 6.88 or 0.10% to close at 6,813.16.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 31.30 or 0.31% to 10,253.14, and Hang Seng index in Hong Kong decreased 29.32 or 0.14% to 20,876.79, and CSI 300 index in China higher 23.84 or 0.72% to 3,335.08. ASX 200 index in Australia increased 33.80 or 0.72% to 4,735.70. The FTSE Bursa KL Composite index in Malaysia was lower 1.97 or 0.15% to 1,286.10.

The Kospi Index in South Korea increased 7.32 or 0.45% to close at 1,622.44. SET index in Thailand closed higher 1.85 or 0.25% to 735.04. JSE Index in Indonesia decreased 9.50 or 0.37% to 2,567.09. The Sensex index in India increased 227.45 or 1.36% to 17,000.01.

Commodities, Metals, and Currencies

Crude oil increased $1.19 to $80.87 a barrel for a front month contract, natural gas edged up 5 cents to $4.76 per mBtu and gasoline increased 5.13 cents to 2224.79 cents.

Soybean future closed unchanged to $9.635 a bushel. Wheat futures increased 11.25 cents in Chicago trading to $5.15 a bushel. Sugar closed down 0.59 cents at 22.05 cents per pound.

Gold increased $3.00 in New York trading to close at $1,140.00 per ounce, silver closed up $0.13 to $17.19 per ounce and copper for the front month delivery increased 1.60 cent to $3.428 per pound.

Dollar edged lower against euro to $1.37 and declined against the Japanese yen to 88.46.

Yield on 10-year U.S. bonds closed up to 3.62% and with 30-year maturities closed higher at 4.59%.