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Market Update Analysis: 
Financials Drag U.S., European Stocks
Author: 123jump.com Staff
123jump.com
Last Update: 5:28 PM EDT July 10 2008


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Dow Chemical offer to buy Rohm & Haas at 75% premium lifted U.S. market averages but financial stocks continued drift lower. The comments from the former Fed President took another toll on Fannie Mae and Freddie Mac as both declined to near 15-year lows. European markets closed lower on the weakness in financial stocks. Rising tensions in the Middle East lifted crude oil $5 a barrel.

 
The Kospi Index in South Korea increased 18.05 or 1.19% to close at 1,537.43, SET index in Thailand closed higher 0.73 or 0.10% to 721.86 and JSE Index in Indonesia decreased 9.80 or 0.43% to 2,276.23. The Sensex index in India decreased 38.02 or 0.27% to 13,926.24.

Commodities, Metals, and Currencies

Crude oil increased $5.44 to close at $141.49 a barrel for a front month contract, natural gas closed up to 41 cents to $12.42 per mBtu and gasoline futures increased 11.92 cents to close at 350.00 cents per gallon.

Gold increased $13.40 in New York trading to close at $942.00 per ounce, silver closed up 14.50 cents to $18.32 per ounce, and copper for front month delivery decreased 2.05 cent to $3.71 per pound.

Wheat futures decreased 7.750 cent in Chicago trading and closed at $8.18 per bushel. Sugar decreased 25 cent to $13.61 per pound. Soybean future closed up 30.00 cents to $15.87 a bushel.

Dollar edged lower and traded near record low against euro to $1.5784 and fell against yen to 107.07.

Yields on U.S. bonds decreased to 3.80% with 10 years of maturities and decreased to 4.41% with 30-year of maturities.
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