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Market Update Analysis: 
Crude Oil Rise Kills Payrolls Rally
Author: 123jump.com Staff
123jump.com
Last Update: 4:33 PM EDT May 02 2008


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U.S. stocks closed mixed after April payrolls declined 20,000 and unemployment fell to 5% from 5.1%. The smaller than expected drop in payroll lifted stocks in the morning. Crude oil rebounded 3% and dragged market averages at close. Yield on 30 years bonds rose. Stocks in Europe and Latin America closed higher tracking gains in the U.S. Countrywide Financial debt status was lowered to junk level after the Bank of America in filing suggested that it may not guarantee $93 billion of debt.

 
In South Korea Kospi Index increased 22.80 or 1.25% to close at 1,848.27, in Thailand SET index closed higher 10.70 or 1.29% to 843.15 and Indonesia JSE Index edged increased 0.99 or 0.04% to 2,304.52. Sensex index in India increased 312.81 or 1.81% to 17,600.12.

Commodities, Metals, and Currencies

Crude oil increased $3.77 to close at $116.29 a barrel for a front month contract, natural gas decreased 19 cents to $10.75 per mBtu, and gasoline futures increased 8.70 cents to close at 296.00 cents per gallon.

Gold decreased $14.20 in New York trading to close at $850.90 per ounce, silver closed up $0.26 cents to $16.205 per ounce, and copper for front month delivery increased 12.60 cents to $3.8205 per pound.

Wheat futures increased 19.00 cents in Chicago trading and closed at $8.90 per bushel. Sugar increased 14 cent to $11.49 per pound. Soybean future closed up 33.50 cents to $13.04 a bushel.

Dollar edged higher but traded near record low against euro to $1.5414 and edged higher against yen to 105.35.

Yields on U.S. bonds increased to 3.86% with 10 years of maturities and increased 4.58% with 30-year of maturities.
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