US mkt slips post Fed’s comment; Asia opens weak -5th Nov 09

US markets slipped from days high in half-hour of trading post Fed’s comment. Commodities gained as Dollar Index witnessed biggest percentage intra-day slide in a month. Dow Jones ended up 30 points at 9802; slipped 126 points from days high of 9928, Nasdaq ended down 2 points at 2055; slipped 26 points from days high of 2081 and S&P 500 ended up 1 points at 1046; slipped 15 points from days high of 1061. US financials ended down 1.5%, it was trading up 1.6% in the early trade.

Asian markets opened weak. Nikkei 225, Kospi was down over 1%, Hang Seng was down 0.6%, Straits Times, Taiwan Weighted were down 0.3%, Shanghai Composite was up 0.5%. In Europe, CAC was up 2.4%, DAX was up 1.7% and FTSE was up 1.4%. CBOE VIX was down 3.7% at 27.7.

FOMC meet:

Fed kept its benchmark federal funds rate unchanged in a range of zero to 0.25 percent. Fed repeats that they will keep interest rates near Zero for “extended period” citing “low rates of resource utilization, subdued inflation trends, and stable inflation expectations”.

US economic news:

As per ADP, private payrolls fell by 203,000 against 227,000 jobs lost in September; markets expected loss of 198,000 jobs. ADP Report is a precursor to the official non-farm payrolls report on Friday. ISM Services Index for October at 50.6 against estimate of 51.5.

Global Movers & Shakers:

European banks gained post Societe Generale results. Societe Generale was up 4.6% on good results and more bid speculation. IN other European banks, Barclays was up 4.2%, Banco Santander, BNP Paribas, HSBC and UBS were up between 1.2-4.2%. In Indian ADRs, Sterlite Industries was up 6%, HDFC Bank was up 4.15%, ICICI Bank was up 7.2%, MTNL was up 4.5%.

Commodities:

Crude gained 1% at $ 80.4/bbl. Gold made record high at $ 1097.2/ounce. Copper was up 2% to $ 6570 a ton. Baltic Dry Index was up 1.5% to 3295.

Currencies:

Dollar Index was down 0.8% to low of 75.77, biggest intraday slide in a month. US dollar declines 1.2% Vs Euro to 1.4864. Yen depreciates 0.6% at 90.8. Korean Won was up 1.2% Vs USD.

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