Markets Pare Early Gains To Trade in Red

The Global Markets opened mixed this morning. U.S. stocks rose for a second week, sending the Standard & Poor’s 500 Index to the highest level since September 2008, as President Barack Obama reached a tax cut agreement with Republicans, General Electric Co. raised its dividend and consumer confidence topped estimates. European stocks advanced for a second week as investors speculated that corporate profits and improving macro-economic data will overcome the regions sovereign-debt crisis. This morning Asian stocks rose as raw-material producers gained as China refrained from raising interest rates, and as copper prices reached a record. In commodities, Oil dropped for a second day after OPEC kept production targets unchanged and Chinas inflation accelerated, fueling speculation it will take further steps to cool the economy. Gold, little changed, may decline, extending losses from the biggest weekly drop in more than a month as concern that China may tighten monetary policy eroded demand for precious metals and the dollar advanced. Copper climbed to within 1 percent of an all-time high after China refrained from raising borrowing costs even as inflation surged, and increased imports by the world’s largest consumer boosted the outlook for demand. The Indian markets pare earlier gains to trade in red this morning. The main draggers are the IT and Teck indices trading in red declining more than one percentage points. Market breadth is positive with 1.776 advances against 839 declines. The Sensex trades in red at 19,406.15 declining 102.74 points or 0.53 percentage points. Nifty trades at 5819.80 declining by 37.55 points or 0.64 percentage points.