Global markets snapshot: US markets recovered in later trade amid speculation that the government would extend TARP funds to insurers, mortgage applications rose last week. Dow Jones ends up 47.5 points at 7837. Asian stocks rose for the first time in three days.
US markets recovered in later trade amid speculation that the government would extend TARP funds to insurers, mortgage applications rose last week. Dow Jones ends up 47.5 points at 7837, Nasdaq ends up 29 points at 1591 and S&P 500 ends up 9.5 points at 825. Nouriel Roubini expects that dire economic conditions will persist and the bear market in stocks is not over yet.
Asian stocks rose for the first time in three days. Taiwan Weighted was up 2.4%, Kospi was up 2.1%, Nikkei 225 was up 1.8%, Hang Seng was up 1.5%, Straits Times was up 1% and Shanghai Composite was up 0.5%.
Barack Obama will meet Timothy Geithner, Ben Bernanke and Sheila Bair tomorrow for progress report on stress tests at the 19 biggest US banks. Chevron will release preliminary results post market today.
US news:
SEC proposed 5 different rules to curb short selling. US Treasury will guarantee payments to suppliers, GM will get $ 2 billion and Chrysler will get $ 1.5 billion. FOMC downgrades projection for GDP In 2009, 2010, no specific numerical expectations provided; says credit markets “still not working well”.
US economic news:
US Mortgage applications rose 4.7% last week.
Global movers & shakers:
US insurer stocks: Lincoln National surged 33%, Hartford was up 13.5%, American Express was up 4.7%, Prudential was up 7.7%. Pulte Homes (-10.49%) will buy Texas-based builder Centex (+18.9%) for $ 1.3 billion at nearly 38% premium to Tuesday’s closing price. Realty gained as mortgage applications up for the last week & REITs raising capital.
Global news:
There are reports that Japan’s ruling Liberal Democratic Party agrees to $ 154 billion economic stimulus package, to propose the government. Orders for Japanese machinery gained 1.4% in January against expected drop of 6.9%. Australia’s unemployment rate jumped by 5.7% in March, most in 18 years.
Commodities:
May Crude gains 1.4% at $ 50/bbl as lower gains in inventory. Gold was up 0.3% at $ 886/ounce. Copper was at 5 month highs, settled at $ 4400/ton. Sugar was up 1.5% at 12.38 cents a pound.
Currencies:
Dollar depreciates 30 bps Vs Euro at 1.3242, Yen appreciates 20 bps Vs USD at 99.77, Korean Won depreciates 2.1% Vs USD.
Data to watch:
Results: Chevron: preliminary report after the bell
US Chain-store sales
BOE announcement
US international trade
US weekly jobless claims
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