Commodity Investing Report
CALL 1-888-456-8090 TO BEGIN TRADING TODAY!INTERNATIONAL INVESTORS CALL 1-541-773-5741
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Commodity Investing ReportCALL 1-888-456-8090 TO BEGIN TRADING TODAY!INTERNATIONAL INVESTORS CALL 1-541-773-5741 |
Commodity Investing: Commodities, Stocks Rise on Economic Data, Greece; Dollar Falls March 3rd, 2010Commodities and stocks rose as reports showing improvement in the U.S. job market and service industries bolstered investor optimism and Greece announced plans to reduce Europe’s biggest deficit. Treasuries fell and the dollar weakened. The MSCI World Index of equities in 23 developed nations increased 0.7 percent, while the Standard & Poor’s 500 Index advanced less than 0.1 percent at 4:27 p.m. in New York. Both gauges closed at six-week highs. Oil climbed to a seven-week high near $81 a barrel in New York, while copper, lead, zinc and nickel advanced at least 1.2 percent in London. The yield on the 10-year Greek government bond declined 17 basis points to less than 6 percent. The pound strengthened after six days of losses, its longest losing streak against the dollar since 2008. U.S. companies cut the fewest jobs in two years last month, according to ADP Employer Services, while the Institute for Supply Management’s gauge of service industries showed the fastest growth since October 2007. Greece announced an additional 4.8 billion euros ($6.6 billion) of budget cuts as European Union leaders called for deeper reductions before considering aid. “The equity market will continue to move higher,” said Jeffrey Saut, chief investment strategist at Raymond James & Associates in St. Petersburg, Florida, which manages $220 billion. “The news out of Greece is encouraging. The latest economic figures in the U.S. indicate that we’re past the worst of the pain. And the pick-up in M&A activity is one more indication that assets are cheap.” Takeovers Help StocksThe S&P 500 rose for a fourth straight day as Novell Inc. rallied 28 percent on a takeover offer. Pfizer Inc., the world’s biggest drugmaker, was said to bid as much as $4.08 billion for Germany’s Ratiopharm GmbH.The S&P 500 trimmed gains, and the Dow Jones Industrial Average slipped 9.22 points to 10,396.76, as the Federal Reserve said labor markets remained “soft” and commercial real-estate and loan demand were “weak.” The central bank made the remarks in its Beige Book business survey for January and February. U.S. equities also retreated from their highs of the session as President Barack Obama urged lawmakers to vote on an overhaul of the health-care industry and prepared to send Congress legislation limiting banks’ size and trading. The Stoxx Europe 600 Index increased 0.8 percent to a six- week high as raw-materials producers rallied with metal prices. Chile Shares DropChilean stocks fell to a one-month low as companies such as winemaker Vina Concha y Toro SA said operations would be halted for at least a week following the country’s worst earthquake in five decades. The benchmark Ipsa stock market index slid for a third consecutive day following the weekend quake, dropping 1.4 percent. Chile’s peso rose to a five-week high, climbing 0.4 percent against the dollar, on speculation the government will tap overseas savings to fund reconstruction.Greek bonds rose, extending the longest run of gains since January. The extra yield investors demand to hold 10-year securities instead of benchmark German bunds declined 19 basis points to 286, the least since Feb. 11. The cost of insuring Greek government bonds against default fell, with credit swaps dropping 5 basis points to 315, according to CMA DataVision prices. The contracts soared to a record 428 on Feb. 4. “Latest soundings out of Greece are on balance positive,” said Padhraic Garvey, head of investment-grade debt strategy at ING Bank NV in Amsterdam. “This is paving the way for more clarity on how Greece will maneuver its deficit lower and manage to fund existing needs.” Pound ReboundsThe pound climbed 0.8 percent to $1.5097, snapping a six- day drop, the longest run of declines in 16 months. Sterling strengthened 0.3 percent against the euro as it climbed against 15 of 16 major currencies.The Dollar Index, which gauges the currency against six major trading partners, dropped 0.6 percent. The yield on the benchmark 10-year Treasury note increased 1 basis point, or 0.01 percentage point, to 3.62 percent. The MSCI Emerging Markets Index rose 0.7 percent to its highest close since Jan. 21. The Bombay Stock Exchange Sensitive Index rose 1.4 percent after Nomura Holdings Inc. raised its growth forecast for India and a report showed the nation’s services industry expanded at the fastest pace in more than a year. Kazakhstan’s KASE Index climbed 0.5 percent while Egypt’s Hermes Index rose 1.3 percent. The MSCI Asia Pacific Index gained 0.7 percent. National Australia Bank Ltd. rose 2.3 percent in Sydney as government data showed the economy expanded at the fastest pace in almost two years. Toyota Motor Corp. gained 3.2 percent in Tokyo after February U.S. sales beat analysts’ estimates. Crude oil for April delivery increased $1.19, or 1.5 percent, to $80.87 a barrel on the New York Mercantile Exchange, the highest settlement since Jan. 11. Futures are up 94 percent from a year earlier. A U.S. government report showed that refinery operating rates climbed to the highest level since October, bolstering demand. Copper for delivery in three months rose 1.2 percent to $7,580 a metric ton on the London Metal Exchange. - Mark Gilbert and Rita Nazareth in New York at Bloomberg. Click here for your Free Commodity Investing eGuide |
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