4:10 PM New York – U.S. indexes edged higher as European leaders prepare to deepen fiscal and banking union. U.S. consumer confidence dropped to a five-month low and home prices showed a slight improvement in a private but controversial survey. Italy was forced to an aid to a bank for the first time in two years.
U.S. indexes rebounded traded higher on domestic economic data and the dollar gained against most currencies.
The latest private survey of metropolitan home market indicated that prices fell 1.9% in April, the slowest monthly decline since November 2010. The S&P/Case Shiller index of property values declined at a slower pace after falling at 2.6% rate in March.
Separately an index of consumer confidence dropped to a five month low in June according to a survey released by the Conference Board. The index declined to 62 from 64.4 in the previous month.
In corporate news, SBA Communications agreed to acquire several tower sites from TowerCo for $1.45 billion and Coca-Cola committed additional $3 billion in India.
On the earnings front, Apollo Group said quarterly net declined 37% and Coinstar cuts fiscal earnings outlook. LDK Solar swung to a quarterly loss. Coca-Cola plans to invest additional $3 billion in India by the end of the decade.
The European indexes fell after 28 Spanish banks were downgraded. Spain raised €3.08 billion from the sale of its short-term debt in an auction today. Credit Suisse plans to slash one third senior jobs at its European investment banking.
German consumer confidence is likely to rise in July and confidence among French households remained unchanged in June. Swiss consumption index fell in May. The Dutch economy expanded in the first quarter and Italian retail sales fell more than estimated in April.
The UK indexes gained after public sector net borrowing rose in May. Irish factor gate inflation eased to six-month low in May. BP agreed to sell its interests in the Alba and Britannia fields to Mitsui for $280 million.
Tokyo stocks declined for the third day in a row and lawmakers in the lower house approve the plan to double sales tax to 10% and the measure is expected to pass in the upper house. Nippon Electric Glass Co declined after it lowered its income outlook.
Australian stocks extended losses for the fourth day in a row and resource sector stocks declined. News Corp is considering splitting its entertainment and news operations as the company struggles with multiple investigations.
Commodities, Bonds and Currencies
The 10-year bond yield increased to 1.62% and 30-year bond rose to 2.69%.
The U.S. dollar inched up to $1.249 to a euro and fell against the Japanese yen to 79.49 yen.
Immediate delivery futures of Texas crude oil decreased 7 cents to $79.14 a barrel and Brent crude rose $1 to $92.01, futures of natural gas increased 0.01 cents to $2.71 per mbtu and gasoline price decreased 0.77 cents to 264.51 cents a gallon.
In metals trading, copper added 0.5 cents to $3.32 per pound, gold decreased $15.40 to $1,573 per ounce and silver decreased 53 cents at $27.05.