Tuesday, Dec 1st, 2009
Stocks rallied from Shanghai to New York and the dollar fell as Dubai said half of its debts are “stable” and Chinese manufacturing grew at the fastest pace in five years. The yen dropped the most in seven weeks against the dollar, while gold reached a record.
The MSCI World Index advanced 1.7 percent at 10:04 a.m. in New York and the Standard & Poor’s 500 Index added 1.1 percent. The dollar weakened against 14 of the 16 most-traded currencies. The yen sank as much as 1.3 percent versus the dollar on speculation the Bank of Japan will try to limit gains even after keeping interest rates unchanged at an emergency meeting today. Gold rose to $1,200.50 an ounce.
Dubai is in talks with its lenders to restructure $26 billion of debt, easing concern that a default would add to the $1.7 trillion financial companies around the world have written down as the credit crisis impaired the value of their assets. An HSBC Holdings Plc index showed China’s manufacturing increased last month.
“The fallout from the Dubai situation and the overall contagion effect should be both short-lived and quite limited,” wrote Suki Mann, a credit strategist at Societe Generale SA in London, in a research note. “We are close to the end of a remarkable year for risky assets, and this is probably the last chance for fast money to make a quick turn.”
“When the people find they can vote themselves money, that will herald the end of the republic.” – Fall Of The Republic – Buy the DVD here
This article was posted: Tuesday, December 1, 2009 at 10:24 am