INDEPENDENT NEWS

While you were sleeping: BusinessWire wrap

Published: Tue 30 Dec 2008 02:59 PM
While you were sleeping: BusinessWire overnight wrap
Dec. 30 – Stocks on Wall Street fell, with Dow Chemical Co. slumping 20% after funding for its takeover of Rohm & Haas Co. fell through. Oil companies rose after the price of oil advanced on tensions in the Gaza Strip.
The Dow Jones Industrial Average declined 0.8% to 8446.57 and the Standard & Poor’s 500 Index slipped 0.7% to 866.6. The Nasdaq Composite fell 1.6% to 1505.09.
Dow Chemical fell US$3.45 to US$15.48 after Kuwait scrapped a proposal that would have provided US$9 billion to fund a merger with Rohm & Haas, down 15% in New York.
Chevron rose 1.3% to US$71.30 after crude oil gained.
Ford Motor fell 5.2% to US$2.17 after billionaire investor Kirk Kerkorian sold the remaining shares in the automaker owned by his investment firm Tracinda Corp. General Motors fell 5.5% to US$3.47.
Middle East tensions helped drive down the U.S. dollar against the euro as some traders fretted about disruptions to oil supplies. The British pound fell to a record low against the euro after a survey showed U.K. house prices may extend their slide in 2009.
The dollar fell to $1.4062 per euro in New York, from $1.4028. The greenback dropped to 90.38 yen from 90.81.
Israeli air strikes in the Gaza Strip also helped stoke demand for U.S. Treasuries as a haven from escalating tensions and weakening shares.
The yield on two-year Treasuries fell 15 basis points to 0.73%, edging closer to the record low yield of 0.6% reached on Dec. 17. The yield on 10-year government debt fell 7 basis points to 2.1%.
In Europe, stocks gained led by banks and oil companies after a report that Royal Bank of Scotland will abandon the sale of its insurance unit and tensions stayed high in the Middle East.
The Dow Jones Stoxx 600 Index rose 0.2% to 193.46 and has declined a record 47% this year.
Royal Bank of Scotland gained 14%, leading the FTSE 100 Index up 2.4% to 4319.35. Cairn Energy rose 7.1%.
Germany’s DAX 30 rose 1.6% to 4704.86 as Postbank jumped almost 10% and Deutsche Bank gained 5.7%. In France, the CAC 40 rose 0.5% to 3130.72.
Crude oil rose after Israeli Defense Minister Ehud Barak said the Middle Esat nation is fighting a “war to the death” with Hamas, which gets support from Iran.
Crude for February delivery rose 6.1% to $40.01 a barrel on the New York Mercantile Exchange.
Gold climbed to the highest level in almost two months on increased demand for the precious metal as a haven. Gold futures for February delivery rose 0.5% to US$875.30 an ounce in New York.
Copper rose as the U.S. dollar weakened, leading a 1.3% gain in the Reuters/Jefferies CRB Index of 19 raw materials. Copper gained 2.1% to US$2,905 a metric ton on the London Metal Exchange.
(Businesswire)
ENDS

Next in Comment

Train Wrecks And Election Outcomes
By: Ian Powell
The First Attack On The Independents: Albanese Hobbles The Crossbench
By: Binoy Kampmark
Predictable Monstrosities: Priti Patel Approves Assange’s Extradition
By: Binoy Kampmark
Dunne Speaks: Roe V. Wade Blindsides National
By: Peter Dunne
Infrastructure Commission wants digital strategy
By: Digitl
Leaking For Roe V Wade
By: Binoy Kampmark
View as: DESKTOP | MOBILE © Scoop Media