NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

GLOBAL MARKETS-US shares end mixed, gold and US dollar gain

Published 12/02/2009, 05:25 PM
Updated 12/02/2009, 05:27 PM
GC
-
CL
-

* U.S. shares end mixed, hurt by financials and energy

* Gold edges to another record high of $1,216.75

* U.S. dollar gains on yen after BOJ unveils stimulus plan (Updates with closing prices, adds comment)

By Daniel Bases

NEW YORK, Dec 2 (Reuters) - U.S. stocks ended mixed on Wednesday, dragged down by financial and energy shares, while gold rose to a new high even as the U.S. dollar firmed.

Wall Street fell after stocks briefly touching a 14-month highs on better-than-expected U.S. employment data.

Financials were hurt by concerns over pending U.S. derivatives legislation, cutting short early buying momentum.

Weaker oil prices stoked a sell-off in energy-related stocks. Exxon Mobil Corp shares fell 0.33 percent to $75.79 a share while Chevron lost 0.42 percent to $78.73 per share.

European share prices managed closed higher on news U.S. private employers shed 169,000 jobs in November versus 195,000 in October. This marked the eighth straight monthly decline in private-sector job losses, according to ADP Employer Services report, jointly developed with Macroeconomic Advisers LLC. [ID:nN02192113]

Stocks in Japan closed at two-week highs on short-covering after the yen fell against the greenback. A plan by the Bank of Japan to boost economic support ended up stalling a rally in the yen to the benefit of the U.S. dollar. [ID:nT182340]

"The bias toward yen strength that was prevalent the last few weeks has turned, especially after the Bank of Japan announced those quantitative easing measures yesterday," said Ron Simpson, director of FX research at Action Economics in Tampa, Florida.

Nervousness over credit problems for Dubai, which proved a drag on global markets starting late last week have since dissipated as investors sort through just how much of a debt overhang there is from the city-state.

State-controlled Dubai World [DBWLD.UL], which led the emirate's transformation into a regional hub for finance, investment and tourism, unveiled details late on Monday of the restructuring and which parts of its empire were affected. The process will focus on $26 billion of debt owed by its main property firms, Nakheel and Limitless. [ID:nGEE5B000Z]

The Dow Jones industrial average <.DJI> fell 18.90 points, or 0.18 percent, to 10,452.68. The Standard & Poor's 500 Index <.SPX> edged up just 0.38 points, or 0.03 percent, at 1,109.24. The Nasdaq Composite Index <.IXIC>, boosted by gains in Internet retailer Amazon.com Inc , closed up 9.22 points, or 0.42 percent, to 2,185.03.

JPMorgan Chase & Co , a Dow component, fell 0.69 percent to $41.93. The bank said it could see its revenue fall by as much as $3 billion in a "worst case" scenario under the legislation, according to a note from Sanford C. Bernstein to investors.

"The banks don't know what the heightened financial reform is going to be. There is no clarity to regulation," said Weston Boone, vice president of listed trading at Stifel Nicolaus Capital Markets in Baltimore.

The FTSEurofirst 300 <.FTEU3> index of top European shares closed 0.5 percent higher at 1,015.77 points. Japan's benchmark Nikkei <.N225> inched up 36.74 points to 9,608.94 to close at its highest level since Nov. 18.

The MSCI All-Country World Index <.MIWD00000PUS> rose 0.25 percent to 300.33.

GREENBACKS AND GOLD

In a breakdown of the current inverse relationship of a stronger U.S. dollar and weaker price for gold, both financial instruments gained ground on Wednesday.

The dollar rose versus a basket of major trading-partner currencies, with the U.S. Dollar Index <.DXY> up 0.37 percent at 74.64.

Against the Japanese yen, the dollar was up 0.91 percent at 87.43. Last week the yen traded at its strongest point in roughly 14-1/2 years.

"We had very strong yen appreciation (recently), and now there's some retracement. Risk appetite is a little bit stronger than it was last week when we had the Dubai news, so investors are taking profits," said Marcus Hettinger, FX strategist at Credit Suisse in Zurich.

The euro was down 0.29 percent at $1.5044.

Investors' attention has turned to the European Central Bank's policy meeting on Thursday. It is widely expected to keep its refi rate on hold at one percent, but also to give guidance on the timing and extent of how it intends to withdraw generous liquidity stimulus from the system.

Spot gold prices rose $18.50, or 1.55 percent, to $1215.80, having touched a record $1,216.75.

Crude oil prices fell after a U.S. government report showed domestic inventories rose far more than expected last week. The price for a barrel of U.S. light sweet crude oil fell $1.84, or 2.35 percent, to $76.53.

U.S. benchmark 10-year Treasuries fell 8/32 of a point in price, pushing the yield up to 3.3117 percent. European government bond yields slipped. The 10-year Bund yield eased 1.2 basis points to 3.153 percent (Additional reporting by Ryan Vlastelica, Wanfeng Zhou, Nick Olivari, Gertrude Chavez-Dreyfuss in New York; Atul Prakash, Jon Hopkins, Emelia Sithole-Matarise and Jamie McGeever, in London; Blaise Robinson in Paris; Elain Lies in Tokyo) ((daniel.bases@thomsonreuters.com; +1-646-223-6131; Reuters Messaging: daniel.bases.reuters.com@reuters.net))

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.