Posted at Live Trading News on February 22, 2012
ASEAN stocks are expected to open lower today after European markets responded with scepticism to a Greek debt deal and US stocks pared gains after the Dow topped 13,000 points for the first time in four years.
Bond markets
Italian and Spanish bonds rose for a fourth day after European finance ministers agreed on a second bailout for Greece, spurring optimism the euro-area debt crisis will be contained.
•Italy’s 10-year yield dropped four basis points, or 0.04 percentage point, to 5.44 per cent, the lowest since Sept 9
•Spain’s 10-year yield declined five basis points to 5.11 percent, with the spread over bunds falling to as little as 308 basis points, the narrowest since Feb. 8.
•Germany’s 10-year bund yield rose one basis point to 1.97 percent. Germany’s two-year yield was little changed at 0.26 percent after rising to 0.29 percent, the highest since Dec. 15.
•Yields on 10-year US treasury notes rose two basis points, or 0.02 percentage point, to 2.02 percent
United States
US stocks erased gains, after the Standard & Poor’s 500 Index rose above its highest close since 2008, as investors weighed a second bailout for Greece.
Key numbers:
•S&P 500 lost 0.1% to 1359.26
•Dow Jones Indus Avg lost 0.1% to 12,939.28
•Nasdaq composite lost 0.48% to 2937.52
Europe
European stock markets have closed lower and the euro weakened, reversing early gains, as enthusiasm over another massive eurozone bailout for Greece faded on concerns more will need to be done.
Key numbers:
•London FTSE 100 lost 0.29% to 5928.20
•In Paris the CAC 40 lost 0.21% to 3465.24
•In Frankfurt the DAX lost 0.58% to 6908.18
Asia
Asian stocks fell, with the regional benchmark index retreating from a six-month high, as higher oil prices threatened to curb spending and accelerate inflation, tempering optimism after Euro-area finance ministers agreed to a bailout for Greece.
Key numbers:
•MSCI Asia Pacific Index lost 0.4% to 127.57
•Japan’s Nikkei 225 lost 0.23% to 9463
•Hong Kong’s Hang Seng added 0.25% to 21478.72
•China’s Shanghai composite added 0.75% to 2381.4
Commodities
Energy
Oil prices have climbed to their highest level since May on concerns about Europe’s oil supplies.
•Benchmark crude rose by $US1.60 ($A1.49) to $105.20 per barrel in New York. That’s the highest price for oil since May 11.
•Brent crude, which is used to price foreign oil varieties imported by US refineries, rose by 55 cents to $120.60 in London.
Precious Metals
Gold futures rallied while silver ended at a three-month high amid elation over the long-awaited Greek bailout deal and a weaker US dollar.
•Gold contract for April delivery rose $US32.60, or 1.9 per cent, to $US1,758.50 a troy ounce on the Comex division of the New York Mercantile Exchange
•Silver posted a settlement high for the year at $US34.429 a troy ounce
•Platinum for April delivery rallied 3.1 per cent to $US1,684.90 a troy ounce
Base metals
Base metals closed sharply higher on the London Metal Exchange, underpinned by investor relief over a second bailout package for Greece, market participants say, despite its muted impact on the broader financial markets.
•LME three-month copper on Tuesday ended the PM kerb at $US8,449 a metric ton, up $US213.50, or 2.6 per cent, on Monday’s close.
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