Thursday, March 5, 2009

Wall Street rebounds from 12-year lows; Dow up 150 pts while Asian markets trading mixed; Nikkei up 2.7%

US markets rebounded off of 12-year lows after the Obama administration launched its mortgage-rescue plan to stem mortgage defaults. The Dow Jones Industrial Average closed at 6,875.84 after gaining 149.82 points or 2.2%. The S&P 500 Index rose 16.54 points or 2.4% to end at 712.87 while the Nasdaq Composite Index shut shop at 1,354.74 after gaining 32.73 points or 2.5%.

Economic indicators
The ISM Services Index for February dipped to 41.6% from 42.9%, indicating continued contraction for services.
Mortgage applications fell for a second straight week. Meanwhile, private employers slashed 697,000 jobs from payrolls in February.

Commodity check
Oil rose more than USD 3 per barrel, up 9% after data showed an unexpected drop in US crude stocks and an increase in gasoline demand. Also speculation that China will broaden efforts to boost economic growth supported prices.
Gold fell for the eighth day, extending its longest losing streak since June 2006, as rising equities and speculation governments will broaden efforts to revive the economy reduced demand for the bullion as a haven.
Copper advanced to a three-month high on speculation more stimulus spending in china will extend economic growth and demand for raw materials.


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