Yahoo finance API is not available right now, please try again soon...

Global Stocks Gain After Dow Record While Oil Retreats

*from www.bloomberg.com, Mar. 6, 2013 (To view original article click here.)

Take Away #1: Global stocks rose to the highest in more than 4 ½ years, a day after the Dow Jones Industrial Average jumped to a record.

Key Facts and Figures:

  • The Dow Jones Industrial Averaged jumped to a record yesterday, as a private report showed faster than forecast U.S. jobs growth.
  • The S&P 500 closed yesterday within 1.7% of a record.
  • A private U.S. jobs report from ADP Research Institute showed employers added 198,000 positions last month topping the median economist forecast for 170,000.
  • The MSCI All-Country World index (MXWD) increased for a third day, rising 0.2% at 11:38 a.m. in New York to above the highest close since June 2008.
  • The S&P 500 gained 0.1%.
  • Spanish 10-year borrowing costs dropped three basis points to 5.01%.

Take Away #2: Oil retreated, as did several global bonds and currencies.

Key Facts and Figures:

  • Oil lost as much as 1.4% to trade below $90 a barrel for the second time this year.
  • The Swiss franc fell 0.2% to 1.2305 per euro, declined 0.6% to 94.65 centimes per dollar, and weakened versus all 16 major peers.
  • Venezuelan bonds fell after President Hugo Chavez died.

Take Away #3: U.S. stocks climbed yesterday on positive economic data and China’s stimulus plan and several major companies saw significant movement today.

Key Facts and Figures:

  • The Institute for Supply Management’s index of non-manufacturing businesses increased to 56 last month, its highest level in a year.
  • China’s government said it will keep its economic growth target at 7.5% for this year and plans a 10% jump in fiscal spending.
  • Bank of America Corp. jumped 2.5% and VeriFone Systems Inc. rose 9%.
  • Sohu.com Inc. slid 9% and Staples Inc. fell 6.7%.

Take Away #4: U.S. equities have erased losses from the financial crisis and could continue to run higher.

Key Facts and Figures:

  • About $10 trillion has been restored to U.S. equities, fueled by the fastest profit growth since the 1990s and a monetary stimulus from the Federal Reserve.
  • Retailers, banks, and manufacturers led the recovery from the worst bear market since the 1930s.
  • The Dow took less than 65 months to rise above its previous high set on Oct. 9, 2007.
  • The S&P 500 has jumped more than 128% from its bear market low, trading for 15.2x reported earnings, compared with a multiple of 17.5 during its record in October 2007.
  • We don’t seem to be anywhere close to the kind of cyclical turning point we were on the cusp of in October of 2007, suggesting the stock market may have more room to run, says Julia Coronado of BNP Paribas SA in New York.

Take Away #5: There has been some notable European movement today.

Key Facts and Figures:

  • The Stoxx Europe 600 Index (SXXP) erased early gains to trade down to 0.3%.
  • GDP in the 17-nation euro bloc fell 0.6% in the fourth quarter.
  • Vodafone Group Plc (VOD) surged 6.8% upon news of a potential deal with Verizon.
  • Admiral Group Plc. (ADM) climbed 5.4% to a 17-month high.
  • The six-day advance for Spanish bonds is the longest run since August.
  • Italian securities also rose, with 10-year yields dropping eight basis points to 4.66%.
  • The yield on German 10-year bonds was little changed at 1.45%.

Take Away #5: President Chavez dies, Venezuela’s dollar denominated bonds falls for a second day, and oil retreats.

Key Facts and Figures:

  • The yield on the $4 billion of notes maturing in 2027 rose to 9.14%, the highest since Jan. 22, after Vice president Nicolas Maduro announced Chavez’s death.
  • President Chavez of South America’s biggest oil exporter died following a battle with cancer.
  • West Texas Intermediate crude for April delivery was $0.88 lower at $89.94 a barrel in electronic trading in New York.

Take Away #6: Emerging markets rose as Kenya’s currency weakened.

Key Facts and Figures:

  • The MSCI Emerging Markets Index (MXEF) rose 0.7% to 1,056.78, heading for the highest close since Feb. 20.
  • Energy, financial, and industrial stocks led the rise.
  • East Africa’s biggest economy, Kenya saw its currency, the shilling weaken as much as 1.7%, as results from presidential elections on March 4 were delayed.

Take Away #7: Zinc and Lead declined as Australia’s dollar advanced.

Key Facts and Figures:

  • Zinc fell 1.5% to $1,976 a metric ton, the lowest since Jan. 17.
  • Lead declined 1.3% to $2,195.50 a ton.
  • Europe accounts for 14% of lead demand and 18% of zinc usage, according to Barclays Plc.
  • Australia’s dollar advanced against 12 of 16 major counterparts.
  • Australia’s fourth quarter GDP advanced 0.6% from the previous three months, after rising a revised 0.7% that was higher than initially reported.

*To view original article from www.bloomberg.com click here.

Filed in: Latest, Markets

No comments yet.

Leave a Reply

You must be logged in to post a comment.