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Market Update : 
Quiet Trading on Merger Monday
Author: 123jump.com Staff
123jump.com
Last Update: 4:09 PM EDT October 09 2006


(Continued)

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With the bond market closed for a holiday and no economic data to focus on, investors looked ahead to the coming earnings season. Expectations for another quarter of double digit earnings season are prevalent in among traders. Steel stocks rose as wave of consolidation in the industry is expected to continue. Volatile oil closed higher but energy stocks closed lower. Monster Worldwide CEO resigned on stock option investigation.

 
Banking stocks gave back some of their recent, M&A-driven gains. Austria Erste Bank fell 1.9%. It is awaiting judgement today from Romanian lawmakers on its intended acquisition of the country top bank BCR. Raiffeisen, Erste domestic rival, and competitor in high-growth eastern European markets, fell 1.5%.

Oil and gold

Crude oil for November delivery rose 51 cents to $60.27 a barrel in electronic trading on the NYME. In London, November Brent gained 38 cents to trade at $60.21 a barrel on the ICE Futures exchange.

Gold rose after North Korea carried out its first nuclear-weapons test and as higher base metals prices boosted purchases of commodities as a basket. Gold for immediate delivery rose $5.63, or 1%, to $579.72 an ounce.

Currencies

The euro was barely changed Monday against the U.S. dollar, while the Japanese yen was slightly lower after North Korea claimed to have tested a nuclear weapon. The euro bought $1.2601 in morning European trading, compared with $1.2595 late Friday in New York. The British pound slipped to $1.8678 from $1.8705. The dollar rose to 119.12 yen from 118.98 yen.
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