logo
  Join        Login             Stock Quote

Daily Analysis – Central Banks Unite To Boost Liquidity, Western Markets Soar

 December 01, 2011 11:42 AM


Equities

China's Shanghai Composite tumbled 3.3% due to growing concerns the country's growth with slow, and the Hang Seng fell 1.5% to 17989. China's central bank cut reserve requirements for the first time in nearly 3 years in an effort to keep the economy on track. In Japan, the Nikkei slipped .5% to 8435, while Olympus shares recovered from a sharp 10% loss at the open after the company affirmed it would release its December earnings report on time. Korea's Kospi declined .5%, but Australia's ASX managed to buck the trend, closing up .3%.

A coordinated move by global central banks to increase liquidity sent Western markets sharply higher. The DAX spiked 5%, the CAC40 soared 4.2% and the FTSE climbed 3.2%. Miners jumped 6% amid hopes the easing efforts will boost demand for raw materials.

[Related -3 US Updates Show Ongoing Growth]

In the US, a similar scene played out, as the Dow soared 485 points to 12041, the Nasdaq climbed 4.2%, and the S&P 500 rallied 4.3%. Caterpillar shares surged 8.1%.

Dow Soars Nearly 500 Points

Netflix shares slumped 4.5% after the company was downgraded to sell from neutral by Wedbush Securities.

Treasuries and Commodities
Bonds tumbled as investors poured into equities. 10-year notes dropped 25/32 to yield 2.08%, and 30-year notes sank 2 4/32 to yield 3.06%.

[Related -Moving Averages Don't Move Stocks]

Copper soared 5.5% to 3.5755, leading metals higher. Gold rose 1.9% to 1751.70, and silver gained 3% to 32.915.

Energy ended mixed, as crude rose .62 to 100.41 despite a sharp jump in oil inventories, while natural gas fell 1.8% to 3.568.

Coffee jumped 4.1%, while cotton dropped 2%, as agricultural futures settled mixed.

Currencies
The Australian Dollar surged 2.4% to 1.0284 as the recent rally accelerated. The Canadian Dollar jumped 1% to 1.0198, and the Euro gained .8% to 1.3436. The Pound rose .5% to 1.5695, while the Yen declined .5% to 77.55.

Economic Outlook
Wednesday's reports were exceedingly upbeat. Data from the ADP employment report blew past forecasts, with the economy adding 206K jobs last month, up from 130K in the previous report. Chicago PMI rose to 62.6 from 58.4, well above estimates, and the Challenger job-cut report showed planned layoffs declined by 12.8%.

Thursday's economic reports will include weekly jobless claims, the ISM manufacturing index, construction spending, auto sales, and chain store sales.

Earnings are due from Barnes & Noble, H &R Block, Kroger, Movado and Talbots.

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article image3 US Updates Show Ongoing Growth

Three economic updates today provide more evidence that moderate growth endures for the US. The numbers du read on...

article imageBuy These Solar Stocks Before They Snapback

Sometimes the market hands you a gift. And it would be foolish not to take it. Thanks to general market read on...

article imageInvestors Are Even More Euphoric And Confident.

As noted on the blog last Thursday, even though the market had been down for three straight weeks, last read on...

article imageThe Butterfly Machine

There’s a phenomenon called the Butterfly Effect. One common quotation is “It has been said that something read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.