Six-Day Rally in Citigroup; Global Markets Up

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

U.S. stocks struggled after a raft of economic data. Weekly jobless claims barely budged, trade deficit declined in January and foreclosure notices remain elevated. Commodities markets feared crackdown after China reported a rise in inflation and industrial production.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. stocks struggled after a raft of economic data. Weekly jobless claims barely budged, trade deficit declined in January and foreclosure notices remain elevated. Commodities markets feared crackdown after China reported a rise in inflation and industrial production.[/R]

U.S. stocks traded sideways and January trade deficit declined on the smallest import of crude oil since 1999. Exports and imports declined in the month and jobless claims edged lower in the previous week. Foreclosures are still growing even though the pace of the default slowed last month.

More than 308,000 homes received foreclosure notices and banks repossessed 79,000 homes in February according to the data published by RealtyTrac Inc. based in California. The number of foreclosures notices is expected to rise to 3 million this year from 2.8 million in 2009.

Citigroup rallied 5.6% today, sixth daily gain totaling 23%. CEO Vikram Pandit estimated at a conference that the bank is likely to report higher than expected return on core assets and reiterated in an answer that the U.S. Treasury has said in the past to sell the 27% stake in the bank.

Devon Energy agreed to sell its international assets of gas and oil fields to BP Plc for $7 billion.

Hot Topic quarterly profit declined on weak sales and Men’s Wearhouse swung to a quarterly loss. Gymboree soared after the children’s apparel retailer reported higher than expected fourth quarter earnings. Devon Energy sold its portfolio of energy fields to BP Plc.

European markets closed lower and the Swiss National Bank left its key lending rate unchanged at 0.25%. Volkswagen said unit sales in the first two months in a year surged 27% from a year ago and is seeking to raise €5 billion in April.

UK stocks edged lower but traded near two-year high. BP Plc agreed to acquire portfolio of energy blocks from Devon Energy Corp for $7 billion. J D Wetherspoon plc reinstates dividend. William Morrison Supermarkets issued cautious outlook.

Japan’s Cabinet Office revised the estimate of the last quarter gross domestic product lower to 3.8% from 4.6%. However, the current quarter estimates may be revised higher after Chinese production accelerated in February. Japanese steelmakers are bracing for 90% increase in iron ore prices from Brazil.

China reported a rise in inflation and industrial production in February driven by economic stimulus and seasonal factors. Inflation gained for the fifth month in a row and 16-month high. New loans declined to $103 billion but ahead of the 22% annual increase target set by the central bank.

Stocks in Mumbai trading closed higher in the final fifteen minutes of trading. The wholesale inflation in the previous week was recorded at elevated level but larger crops of lentils and sugarcane is expected to make a dent in inflation three months. Russia and India are expected to sign nuclear power plants and defense contracts during Prime Minister Putin visit this week

North American Markets

Dow Jones Industrial Average increased 44.51 or 0.42% to close at 10,611.84, S&P 500 Index edged higher 4.63 or 0.4% to 1,150.24 and Nasdaq Composite Index added 9.51 or 0.4% to close at 2,368.46. Toronto TSX Composite Index increased 20.70 or 0.17% to 11,981.76.

Latin American Markets Indexes

Mexico Bolsa Index increased 97.18 or 0.3% to 32,602.94 and Brazil Bovespa Stock Index decreased 117.38 or 0.2% to 69,861.91.

Europe Markets Review

In London FTSE 100 Index closed lower 23.31 or 0.41% to 5,617.26, in Paris CAC 40 Index decreased 14.60 or 0.37% to close at 3,928.95, in Frankfurt DAX index lower 8.09 or 0.14% to close at 5,928.63. In Zurich trading SMI decreased 21.86 or 0.32% to close at 6,851.73.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 101.03 or 0.96% to 10,664.95, and Hang Seng index in Hong Kong increased 19.91 or 0.09% to 21,228.20, and CSI 300 index in China lower 2.99 or 0.09% to 3,276.70. ASX 200 index in Australia decreased 5.80 or 0.12% to 4,814.20. The FTSE Bursa KL Composite index in Malaysia was lower 6.79 or 0.51% to 1,321.43.

The Kospi Index in South Korea decreased 5.62 or 0.34% to close at 1,656.62. SET index in Thailand closed higher 5.11 or 0.71% to 725.95. JSE Index in Indonesia increased 6.30 or 0.24% to 2,676.52. The Sensex index in India increased 69.63 or 0.41% to 17,167.96.

Commodities, Metals, and Currencies

Crude oil increased $0.16 to $82.25 a barrel for a front month contract, natural gas edged down 12 cents to $4.44 per mBtu and gasoline decreased 0.79 cents to 227.72 cents.

Soybean future closed down 27.50 cents to $9.31 a bushel. Wheat futures decreased 2.75 cents in Chicago trading to $4.78 a bushel. Sugar closed down 0.42 cents at 19.27 cents per pound.

Gold increased $0.60 in New York trading to close at $1,108.70 per ounce, silver closed up $0.14 to $17.15 per ounce and copper for the front month delivery increased 2.35 cent to $3.39 per pound.

Dollar edged lower against euro to $1.3679 and gained against the Japanese yen to 90.55.

Yield on 10-year U.S. bonds closed up to 3.72% and with 30-year maturities closed lower at 4.66%.