Markets Trade in Green

The Global Markets opened mixed this morning. U.S. stocks rallying amid the narrowest swings in three years have pushed the VIX down to a level that makes options attractive as a cheap hedge against losses, according to Macro Risk Advisors LLC. European stocks climbed for a fourth week, the longest stretch of gains since April, amid speculation that the economic recovery will continue into 2011. China’s stocks rose and Yuan forwards climbed to the highest level in five weeks after the central bank increased interest rates for a second time since October, bolstering speculation inflation will be contained. In commodities, Oil supplies may come back to the U.S. Gulf Coast in January, sapping crude’s drive toward $100 a barrel, after stockpiles tumbled the most in 30 years this month as refiners sought to avoid year-end tax liabilities. Gold, little changed, may decline on speculation that China’s second interest-rate hike since mid-October may curb demand for commodities. Copper in Shanghai and New York gained, reversing earlier falls after China raised interest rates for the second time since mid-October to cool inflation. Buoyed by positive trading sessions the past week, along with an optimistic outlook for the January results of India Inc, the markets were trading in the green, with the Sensex up 101 points at 20,073, and the Nifty up 29 points at 6,040.