Markets Trade in Red

The Global Markets trade in a positive zone morning. US Stocks rallied, sending the Standard & Poor’s 500 Index to its best gain in a month, and oil rose as growth in U.S. and European manufacturing bolstered speculation the economic recovery will strengthen. European stocks gained the most in almost two weeks as investors speculated that last years rally in equities will continue in 2011 amid expanding corporate profits and economic growth. This morning Asian stocks rose, with the regional benchmark extending a 2 1/2-year high, as U.S. manufacturing expanded faster than expected, adding to optimism that a recovery in the world’s largest economy is gaining strength. In commodities, Oil traded near a 27-month high in New York after growth in U.S. and European manufacturing bolstered optimism fuel demand may increase as the economic recovery strengthens. Gold, trading little changed, may climb on increased demand for an alternative asset as central banks including the Federal Reserve maintain low interest rates to try to sustain the economic recovery. Copper jumped to a record on the London Metal Exchange and advanced to a 3- 1/2 year high in Shanghai on speculation that global supplies will fail to keep pace with demand as the global economy extends a recovery. Markets erased gains and traded in the red in mid-morning trades. Earlier in the day, Nifty hit a seven-week high of 6,181. The Sensex touched a high of 20,651 on firm cues from Asian peers. However, with weakness in banking, auto and realty stocks, the indices dropped below the dotted line. The Sensex slipped 47 points to 20,513. The Nifty was down 11 points at 6,146.