Overview: following a slow start, the US stock market picked up later in the day yesterday to reach yet new 2009 highs as the US dollar continued its decline. The Dow Jones Industrial Average added 0.3% as did the Nasdaq composite, while the S&P 500 index inched 0.1% higher.
Asian markets were mixed as while Hong Kong’s Hang Seng posted a marginal gain and the Shanghai composite index was 0.25% higher, Japan’s Nikkei declined 0.6% to hit six week lows.
Commodities improved further with oil and metal prices inching higher.
Oil prices were up with December Brent Crude climbing to US$79.60/barrel, while US light, sweet crude for December delivery rose to US$79.76/barrel.
Precious metals also did well as gold returned to US$1,040/oz and silver reached US$18.47/oz. Platinum was fluctuating around US$1,450/oz.
Base metals followed. Copper and nickel improved to US$3.11/lb and US$7.65/lb respectively and zinc rose to US$1.02/lb.
Despite the strong performance from the US stocks, the FTSE 100 is seen opening 0.4% lower as investors are set to continue reaping profits following this month’s strong gains by the blue chips, which saw the UK’s main index rise 6%.
The FTSE 100 ended the day 0.7% lower yesterday, weighed down by losses in the mining and energy sectors. Interdealer broker ICAP (LSE: IAP) was the leading riser with a 3.2% gain. Energy companies Scottish and Southern Energy (LSE: SSE) and Centrica (LSE: CNA) followed, advancing 2%. Private equity group 3i (LSE: III), telecom group Cable & Wireless (LSE: CW) and satellite telecom company Inmarsat (LSE: ISAT) were up about 1.5%.
Investment management company Man Group (LSE: EMG) emerged as the leading faller with a 4.2% loss. Investment company Resolution (LSE: RSL), platinum miner Lonmin (LSE: LMI) and airline British Airways (LSE: BAY) followed, declining 3%. Pharmaceutical companies Shire (LSE: SHP) and AstraZeneca (LSE: AZN) lost about 2.5%, as did banking group Barclays (LSE: BARC), quality and safety services provider Intertek (LSE: ITRK) and commercial property company British Land (LSE: BLND).