Markets Trade on a Lacklustre Note

The Global Markets opened mixed this morning. Most U.S. stocks rose, recovering from an early drop, as American International Group Inc. led financial shares higher after announcing $4.3 billion in bank credit lines. Treasury two-year notes erased losses after a $35 billion auction, while oil retreated from a 26-month high. European stocks retreated after the longest stretch of weekly gains for the benchmark Stoxx Europe 600 Index since April. This morning Asian stocks fluctuated as concern mounted China’s weekend interest rate increase won’t be enough to slow inflation, overshadowing gains by Japanese banks after Mizuho Financial Group Inc. said it will exceed international capital requirements without selling shares. In commodities, Crude rose to trade near a two-year high in New York on speculation stockpiles declined in the U.S., the world’s biggest oil-consuming nation, and as the dollar extended losses. Gold advanced for a third day on speculation that the dollar’s retreat may boost demand for the precious metal as an alternative investment. Copper gained to a record in New York for a second day as investors sought alternatives to depreciating currencies and on expectation demand will outpace supply as consumption improves. The Indian markets continue to trade on a lacklustre note this morning. The main draggers this morning are the Auto, Oil & Gas and PSU indices. Market breadth is positive with 1,090 advances against 961 declines. The Sensex trades in green at 20,028.93 gaining 4.79 points or 0.02 percentage points. Nifty trades at 5997.75 declining by 0.35 points or 0.01 percentage points.