World Markets Focus on U.S. Financial Reforms

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

U.S. financial stocks gyrated after investors digested banking industry overhaul and provide additional authority to the Federal Reserve to breakup banks that are deemed to be to system risk. Federal Reserve is scheduled to announce its rate outlook tomorrow.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. financial stocks gyrated after investors digested banking industry overhaul and provide additional authority to the Federal Reserve to breakup banks that are deemed to be to system risk.[/R]

U.S. stocks traded lower and the dollar gained against the euro ahead of the Federal Reserve meeting tomorrow. Inflation in China and India hovered near 16-month high as commodities investors feared tighter banking regulations in two fast growing economies.

Financials recovers their loss of more than 1% in the late afternoon after investors digested the details of the proposed reforms for the industry. Senator Dodd proposed to ban proprietary trading and investment hedge funds by banks and empower Federal Reserve to break up banks that are deemed to be system risk.

Google Inc declined 4% on a growing speculation that it may shut down its Chinese language search engine. Baidu Inc surged 6%. Boston Scientific dropped 14% after the company recalled certain defibrillators. Consol Energy Inc agreed to acquire coal and energy exploration portfolio assets of Dominion Resources. Pegasystems agreed acquire Chordiant Software.

The euro continued to trade weak ahead of finance ministers meeting today. Phillip-Van Heusen Corp agreed to acquire Tommy Hilfiger for €2.2 billion from Apax Partners LP. Altran Technologies SA dropped 2% after it swung to a loss in 2009. Krones AG offered cautious outlook for 2010.

Japan’s consumer confidence rises for the second month in February. New condo supply soars 10.7% in February. Stocks in Tokyo ended flat ahead of a two-day meeting of the Bank of Japan beginning tomorrow. Shipping companies traded higher tracking the gains in the freight rate index.

Stocks in Australia declined fractionally tracking losses in commodities markets. Analysts lifted their estimate of iron ore prices in the current year to more than 60% increase as Chinese steelmakers seek a government intervention in price negotiations.

North American Markets

Dow Jones Industrial Average increased 17.46 or 0.16% to close at 10,642.15, S&P 500 Index edged lower 0.52 or 0.05% to 1,150.51 and Nasdaq Composite Index fell 5.45 or 0.23% to close at 2,362.21. Toronto TSX Composite Index decreased 5.02 or 0.04% to 12,008.80.

Latin American Markets Indexes

On Friday, Mexico Bolsa Index decreased 24.89 or 0.08% to 32,578.05 and today Brazil Bovespa Stock Index decreased 317.63 or 0.5% to 69,023.75.

Europe Markets Review

In London FTSE 100 Index closed lower 35.36 or 0.63% to 5,590.29, in Paris CAC 40 Index decreased 36.16 or 0.92% to close at 3,891.24, in Frankfurt DAX index lower 42.80 or 0.72% to close at 5,902.31. In Zurich trading SMI decreased 8.84 or 0.13% to close at 6,827.76.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 0.72 or 0.01% to 10,751.98, and Hang Seng index in Hong Kong decreased 130.64 or 0.62% to 21,079.10, and CSI 300 index in China lower 49.94 or 1.54% to 3,183.18. ASX 200 index in Australia decreased 34.00 or 0.71% to 4,784.10. The FTSE Bursa KL Composite index in Malaysia was lower 11.53 or 0.88% to 1,299.67.

The Kospi Index in South Korea decreased 13.24 or 0.80% to close at 1,649.50. SET index in Thailand closed higher 1.49 or 0.20% to 734.83. JSE Index in Indonesia increased 3.10 or 0.12% to 2,669.61. The Sensex index in India decreased 1.63 or 0.01% to 17,164.99.

Commodities, Metals, and Currencies

Crude oil increased $0.08 to $79.88 a barrel for a front month contract, natural gas edged down 1 cent to $4.39 per mBtu and gasoline increased 0.12 cents to 222.40 cents.

Soybean future closed up 4.50 cents to $9.30 a bushel. Wheat futures decreased 6.00 cents in Chicago trading to $4.79 a bushel. Sugar closed down 0.28 cents at 19.39 cents per pound.

Gold increased $3.90 in New York trading to close at $1,109.30 per ounce, silver closed up $0.04 to $17.15 per ounce and copper for the front month delivery increased 0.20 cent to $3.31 per pound.

Dollar edged higher against euro to $1.3677 and edged lower against the Japanese yen to 90.45.

Yield on 10-year U.S. bonds closed unchanged at 3.70% and with 30-year maturities closed at 4.63%.