Markets Trade Flat Paring Early Gains

The Global Markets gives out positive clues this morning. Industry groups in the U.S. stock market are moving in lockstep with the Standard & Poor’s 500 Index at an almost record pace, showing that economic reports are having a bigger effect on the market than ever. Most European stocks rose as an unexpected increase in U.S. pending home sales and a drop in jobless-benefit claims eased concern that the worlds largest economy may tip back into recession. This morning Asian stocks rose, extending the benchmark index’s advance for a third day, after U.S. reports showed an unexpected increase in pending home sales, a decline in initial jobless claims and improved retail sales. In commodities, Oil declined, headed for a weekly drop, amid forecasts that a U.S. government report will probably show the jobless rate rose in August for the first time in four months, signaling a recovery in fuel demand may falter. Gold, little changed, may climb for the fifth straight week on speculation that an economic slowdown will increase demand for the precious metal as a store of value. Copper rose, extending a rally to a four-month high, as U.S. housing and jobs data signaled an improving economy, easing concern that demand for the metal will ebb. The Indian markets after witnessing some range bound movement slipped during the early trades to trade flat in red. The main gainers this morning are the Teck, Healthcare and Consumer Durables indices gaining more than half percentage points. Market breadth is positive with 1,829 advances against 707 declines. The Sensex trades in red at 18,235.96 declining 2.35 points or 0.01 percentage points. Nifty trades at 5481.15 declining by 5 points or 0.09 percentage points.