4:00PM NY, 10:00 PM Frankfurt, 1:30AM Mumbai – Global Markets
Yields edged lower on 10-year U.S. bonds and closed at 5.16% and 30-year bond rose to close at 5.25%.
Crude oil fell 62 cents to close at $72.19 per barrel, natural gas was closed down 3 cent to $6.41 per mBtu, and gasoline futures gained 3.36 cents to close at 234.32 cents per gallon.
Gold gained $7.70 to close at $662.50 per ounce, silver gained 6 cents to close at $12.82 per ounce, and copper futures fell $3 to close at $7,948 per metric ton.
In
New York trading traders appear to focus on the start of earnings season with the earnings release from Alcoa. At the end of the first quarter, earnings jumped nearly 8% from a year ago when the economy grew at a rate of 0.7%. Economy appears to be growing at a faster pace and earnings growth in the second quarter may be higher than the expectations of between 4% and 5%.
Market averages climbed a steady climb ahead of the earnings season but retailers fell in advance of same-store sales data. Dow Jones closed up 38 to 13,649, Nasdaq gained 3.5 to 2,670.02, S&P 500 rose 1.42 to 1,531.86.
Alcoa gained nearly 1.6% on the expectations of better earnings. Retailer declined led by Macy’s (
M: chart), Nordstrom (
JWN: chart), and Kohls (
KSS: chart), and Foot Locker (
FL: chart). Boeing (
BA: chart) gained 1.1% after the company unveiled 787 Dreamliner and reported orders for the plane from Kuwait, Germany and increased order from Australia. Google (
GOOG: chart) agreed to pay $625 cash to purchase security software company Postini.
Trico Marine (
TRMA: chart) fell 7% after company appointed its chairman as new CEO and Rosetta Resources dropped 12% after its CEO resigned. Solar companies with China operations, First Solar (
FSLR: chart) soared 22% on new orders and JA Solar (
JASO: chart) gained 17% after reporting production on new lines. Terex (
TEX: chart) jumped 9% on a broker upgrade.
Latin Markets closed higher across the region led by 0.9% gain in Brazil followed by 0.4% gain in Chile, and 0.1% in Argentina. Mexico dropped 0.4%. American Movil in Mexico City and New York trading fell nearly 4% on the worries that anti-trust investigation may lead new players in the market.
In
Sao Paolo real traded higher against dollar on better than expected trade surplus. The government today reported trade surplus at the end of last week at $927 million on top of $1.09 billion reported at the end of previous week. Energy, mining, and telecom stocks closed higher but banks closed mixed. Petrobras gained 1% and CVRD advanced 1.3%. Telecom operator Telesp gained 1.9% and Telesp cellular rose 1.1%. Airline Gol declined but TAM edged a fraction higher.
Asian markets ended higher Monday. In Japan, the Nikkei Average ended at its highest level in seven years as a much stronger-than-forecast machinery-orders data and firmer oil prices boosted energy stocks as well as precision-equipment makers such as Nikon, up 3.7% The Nikkei 225 Average ended 0.7% higher at 18,262. Machinery orders in May advanced a seasonally adjusted 5.9% from the previous month. Komatsu, the second-largest maker of earthmoving equipment in the world, added 1.9%. Other markets in Asia closed at record levels. India, Hong Kong, South Korea, and Indonesia closed at record levels. Thailand closed at 10-year peak and Japan and Taiwan reached seven year high.
European Markets closed higher across the region on rising stocks in energy, mining, and banking sectors. Italy gained for the second day and led the region with a rise of 0.63% followed by 0.4% gains in Netherlands, Norway, Germany and U.K. In Italy, Fiat gained 2% after adding 3.5% on Friday on revised price target from J P Morgan. Eni added 2% on several brokers upgrading the stocks. Ducati added 8% on the news in the local press that the company may discuss joint venture or collaboration with competitors.
1:00PM NY, 5:00 PM Frankfurt - European markets closed higher, led by miners, telecoms, and food companies.
European stock markets closed in the positive on Monday, boosted by strength among resource companies. Deal-related gains among food and beverage shares also contributed to the upward move, followed by rallying telephone companies. Indexes rose in all of the 18 western European markets, except Spain and Ireland. The German DAX Xetra 30 added 0.4% at 8,077.39, the U.K.'s FTSE 100 gained 0.3% at 6,712.70 and the French CAC-40 finished virtually flat at 6,104.66.
Shares of Dutch baby-food group Numico surged 10% on speculations that Groupe Danone may launch a buyout bid. Danone said it will offer 55 euros a share in cash for the company, or 12.3 billion euros. Again in Amsterdam, Univar soared 36% after the chemicals company agreed to be bought by CVC Capital for 53.50 euros a share, or 1.52 billion euros.
In Frankfurt Metro's shares lost 0.4% after Lehman Brothers downgraded the German retailer to underweight from equal-weight. A higher profit forecast from Telekom Austria AG sent its stock up 3.1%, sparking a rally in the telephone sector.
In Paris early gains came as a result of speculation that French yogurt maker Danone will use proceeds from the sale of its biscuit unit to Kraft Foods to buy Numico. Danone declined 3.3%. On the side of the gainers, steelmaker Arcelor-Mittal advanced 2.8% amid strength in the sector across regional markets.
In London miners led advancers, with Antofagasta and Kazakhmys rising more than 2.7%. BHP climbed 1.8%. Shares of British engine maker Rolls-Royce rose 2.5% after the company said International Lease Finance will use its engines in 40 of the 74 Boeing 787 Dreamliners it has on order. Among other stocks in focus, Bovis Homes dropped 10.9%, due to rate hikes. At the same time, sugar maker Tate & Lyle, jumped 4.7% after Credit Suisse raised its rating on the stock to outperform.
11:30AM U.S. market averages turned mixed. Tech stocks weighed on the Nasdaq. 
