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Market Update : 
U.S. Drags Global Markets Lower, Anheuser Talks
Author: 123jump.com Staff
123jump.com
Last Update: 6:46 PM EDT July 11 2008


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Investors increasingly fear that credit markets are likely to weaken further and government sponsored mortgage agencies may have to be bailed out by the U.S. government at the expense of shareholders. Fannie and Freddie dropped to 2-decade lows. The ongoing turmoil in the U.S. financial system is increasingly viewed by global investors as the primary driver for the global economic slowdown. In addition rising military threat from Israel is driving the crude oil to record high.

 
Asian markets

The Nikkei 225 Index in Tokyo closed lower 27.52 or 0.21% to 13,039.69, Hang Seng index in Hong Kong increased 362.77 or 1.66% closed to 22,184.55. ASX 200 index in Australia increased 42.50 or 0.86% to close 4,979.90. The KL Composite index in Malaysia increased 14.90 or 1.31% closed to 1,150.39.

The Kospi Index in South Korea increased 30.08 or 1.96% to close at 1,567.51, SET index in Thailand closed higher 8.43 or 1.17% to 730.29 and JSE Index in Indonesia increased 0.62 or 0.03% to 2,276.85. The Sensex index in India decreased 456.39 or 3.28% to 13,469.85.

Commodities, Metals, and Currencies

Crude oil increased $3.39 to close at $145.04 a barrel for a front month contract, natural gas closed down to 46 cents to $11.84 per mBtu and gasoline futures increased 5.23 cents to close at 356.32 cents per gallon.

Gold increased $18.60 in New York trading to close at $960.60 per ounce, silver closed up 50 cents to $18.82 per ounce, and copper for front month delivery increased 2.15 cent to $3.74 per pound.

Wheat futures increased 12.750 cent in Chicago trading and closed at $8.30 per bushel. Sugar increased 38 cent to $13.99 per pound. Soybean future closed up 9.00 cents to $15.96 a bushel.

Dollar edged lower and traded near record low against euro to $1.5934 and fell against yen to 106.25.

Yields on U.S. bonds increased to 3.95% with 10 years of maturities and increased to 4.53% with 30-year of maturities.
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