The U.S. shares ended the session in positive territory by Standard & Poor’s 500 reported a profit first week of the month. Better than expected data on job creation increased optimism that the economy will avoid recession new. S & P 500 rose 1.3 percent to 1105 points. This is the fourth day of growth for the index and its longest winning streak from July Dow Jones Industrial Average rose 1.24 percent to 10,448 points and Nasadaq Composite – by 1.53 percent to 2234 points. Before the start of the session were published data on employment in the private sector in the U.S. showed that in August were up 67 thousand new jobs. The data for July were revised upward to 107 thousand jobs created, which reduced fears that unemployment will prevent of economy recovery. In early trading the shares traded in positive territory but then lost earnings due to higher than expected decline in the services sector in the country in August. But then came the main indexes of profit. Among the winners today were the financial sector and technology companies. Association study of U.S. individual investors showed that optimism about U.S. shares rebounded from a 17-month bottom thanks to the good economic data.
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American and European investors are trying to get back 170 million dollars from China Milk Products Group Ltd, another large number of Chinese companies that ceased to pay its debts after the beginning of 2009, writes Wall Street Journal. Among the companies whose shares went down headlong in the last 16 months, have ever hit among investors Celestial NutriFoods, China Sun Bio-Chem Technology, Delong Holdings, Fu Ji Foods & Catering Services, Sino-Environment Technology and Sunshine Holdings. In recent years, investors eagerly bought Chinese stocks, often paying a high price just to find a niche in a significant increase marked the Chinese economy. Now, many Western investors are facing problems with debt collection, especially from companies that sold shares and bonds during the boom years of 2006-2007. According to data from the Wall Street Journal investors currently have a problem with collecting a total of 1.3 billion dollars debt by Chinese companies. Although China Milk operates in China, it is registered in the Cayman Islands. Trade in company shares that are traded on the stock exchange in Singapore, was arrested in February but investors fall into a vicious circle. Regulatory authorities for securities in China say that China Milk is not a Chinese company and they are not legally entitled to dispose of its shares and bonds. “Our obligation is solely to protect local investors,” said a spokesman of the Chinese Securities Commission.
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Investors should be set to lower than normal returns of both stocks and bonds on over the years, says Bill Gross of Pimco to CNBC. In the context of new definition of his company to “normal” returns in a low growth, he predicted that profitability would be half the usual around 8%, to which investors are accustomed. “We expect lower demand and slower growth in household income compared to previous years,” said one of the leaders of Pimco, the largest fund for investment in bonds in the world. According to the current yield on 10-year U.S. government bonds of around 4% growth shows what we can expect. He warned people who hope to send their children to college or to retire, thanks to investments that will be easy. “Lower your expectations for return on risky assets.” Jack god, founder of Vanguard Funds is less pessimistic about the market return. “The expected return on shares should be around 8% and that of bonds – about 4 percent,” he said.
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The decision by a court in Luxembourg, the EU today, is likely to protect from Swiss bank UBS to pay direct compensation to investors who lost money in a fraudulent scheme by Bernard Madoff fund established by the bank, said yesterday. HSBC may also avoid such cases. Court rejected the appeal of a small group of investors who want direct compensation from UBS, and not by the liquidators of the fund Madoff. The decision could affect many are currently facing lawsuits against UBS in its capacity as custodian of funds and LuxAlpha LuxInvest, who have lost a total of about 1,7 billion dollars of investment scheme Madoff. Lawyers have commented that after today’s decision does not expect the courts to allow investors to directly sue for compensation, auditors and trustees of the funds. However, the decision is contrary to EU directives, known as UCITS, which protect small investors by strict rules for investment funds that are open to the public, investors and lawyers intend to appeal the decision.
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Several bad news in the U.S. failed to have any influence on American indexes and after a strong start and retain profitable positions throughout the market session closed with solid increases. Growth rates have made shares of companies from all industries, was particularly good mood on the positions of groups in the health sector because of expected blocking controversial health care reform in the country. Shares of Pfizer jumped 2.62 percent, rose 1.27 percent to those of Johnson & Johnson, had a 2.89 percent growth in Merck. Although Citigroup announced a loss of up to 7,6 billion dollars last quarter of 2009, the financial sector also recorded a profit. Appreciated shares and the bank itself (3.51%) reported having a bad result does not surprise and did not derail investors. Increased to more shares of Bank of America (+0,25%) and American Express (+1,3%). Data from the National Association of Builders of homes have not stopped the momentum of the indexes. The association said the index of confidence in the construction sector has reached the lowest level since June last year as potential buyers have decreased during the first month of 2010. However, Dow Jones Industrial Average ended the session with a jump of 1.09 percent to 10 725 points. S & P 500 rose by 1.25 percent to 1150 points and the Nasdaq Composite to its value added 1.42 percent to 2320 points.
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As an unusual reaction on the stock markets decline analysts determine the price of oil over a depreciation of the dollar and the rapid rise in the quotations of gold. According to Bloomberg agency drop in prices of steel raw material in the last day was mainly due to the announced by the U.S. government oil stocks. They have increased by 2.09 million barrels per week and reach a total 339.9 million barrels, which is the highest level since August. Such information is announced and the American Petroleum Institute at the beginning of the week, but this did not stop the slight increase in oil prices. The Exchange New York Mercantile Exchange rates of U.S. light crude for delivery in January fell by over 2% and went down to a level of $ 76.6 per barrel. Very slight rise followed by 76.67 per barrel. But put your gold in a row and record the precious metal is available for $ 1255.04 an ounce. Analysts do not exclude the stock markets and higher than those rates. According to sales manager of a bank Newedge in Tokyo oil will reach $ 80 a barrel. Variety “Brent with delivery in January is now available for 77.88 per barrel, which is cheaper to close the trade in London yesterday to $ 1.47, or 1.9 percent.
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The U.S. indexes moved in positive territory after yesterday’s volatile session, despite the low volume traded on the eve of Thanksgiving. The investors welcomed news of the increase in consumer spending and strong growth in sales of new homes in October. Before the start of the session it became clear that the number of Americans who have lost their jobs last week fell to its lowest level since September last year. Initial claims for unemployment benefits decreased by 466 thousand to 501 thousand for the week before. Etc. The number of long-term unemployed in the U.S., or people who received social assistance for unemployment for at least two weeks, decreased from 5.61 to 5.42 million. The personal cost of U.S. households rose more than expected in October to 0.7 percent on a monthly basis. Purchases of new homes in the United States, in turn, grew to 430 thousand units annually in October, which is their highest level in 13 months. Orders for the production of durable goods, however, unexpectedly fell 0.6 percent in October, which is a bad sign for the factory sector. The index of the 30 largest actively traded companies, Dow Jones IA increased by 0.3 percent, to finish trading at a level of 10,464.4 points. Thus it was new its highest value for the last 13 months and improve achievement at the start of the week.
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U.S. indexes are traded in the Range near at its highest levels for the year. Retention of the upturn came after depreciated on the basis of profits that disappointed investors. Citigroup was down by 5.4 percent to 4.73 dollars. Bank from which the U.S. government owns 34%, has 101 million profit for the third quarter. For its part, Goldman Sachs fell 2.39 percent to 187.65 dollars. The Bank reported a profit for the third quarter amounted to 3.19 billion dollars, thanks to better management of personal assets. However, the bank does not meet the expectations of analysts. JPMorgan lost 0.7 percent to 46.82 dollars, while Bank of America fell by 3.3 percent to 17.98 dollars. Capital One Financial Corp. also decreased by 4.7 percent to 37.5 dollars. Positive news from the labor market in the U.S. also could not help the market to continue its strong upward trend. Applications for unemployment benefits fell to 514 thousand in the last week at 524 thousand a week earlier. Long-term unemployed also fell to below 6 million USD. Energy companies were traded in positive territory, with Chevron Corp. rose 1.4 percent to 76.5 dollars, and Exxon Mobile added 1.32 percent to 72.79 dollars after oil futures rose above $ 78 a barrel. Ministry of Energy of the United States reported an unexpected drop in gasoline stocks due to closure of refining capacity for technical review.
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American stocks started the week in positive territory after having registered two consecutive weeks of decreases. Strong support indices proved data services sector in the United States and the recommendations of Goldman Sachs Group Inc. purchase of major U.S. banks. ISM index in the service sector rose to 50.9 in September from 48.4 in August, data above 50 indicate activation of the sector. The services sector in the United States represents more than 80% of economic activity in the country and was an improvement from August 2008. With the launch of the new quarter, investors began to focus on individual corporate performance. First reports will begin with aluminum giant Alcoa on Wednesday as expectations of analysts the company reported nine consecutive quarterly loss.
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