Markets Trade Flat in Red

The Global Markets gives out mixed clues this morning. U.S. stocks fell, dragging benchmark gauges to the biggest decline in three weeks, as financial and raw materials companies wiped out an early advance led by energy producers as commodities extended a rally to a 25-month high. European stocks climbed, sending the Stoxx Europe 600 Index to a two-year high, after companies from Barclays Plc to Adecco SA posted better-than estimated results. This morning most Asian stocks rose, led by Japanese banks on speculation their need for capital will be reduced, and as the dollar traded near a two-week high against the yen, boosting the outlook for the nation’s exporters. In commodities, Oil traded below $87 a barrel after falling from a two-year high as a report showed that U.S. gasoline demand dropped to a six-week low and the dollar strengthened against the euro, curbing demand for raw materials. Gold climbed on speculation that European governments may struggle to pay debt, which boosted demand for the precious metal as an alternative to currencies. Copper will lead a rally in base metals into 2011 as increased consumption cuts stockpiles and weaker currencies spur investment demand for commodities, according to Morgan Stanley. The Indian markets trade on a lacklustre note to trade almost on a flat note. The main gainers are the Auto and Consumer Durables indices gaining more than one percentage points. Market breadth is positive with 1,854 advances against 868 declines. The Sensex trades in red at 20,932.48 declining 15.32 points or 0.07 percentage points. Nifty trades at 6289.70 declining by 11.85 points or 0.19 percentage points.