The US equity markets are modestly lower in the final session of 2010, with volume anemic and data light as most have already set their sights on 2011. The Dow Jones Industrials have a chance to close at the best level of the year if the blue-chip index can manage a slight gain today, while the S&P 500 Index is poised for the best December since 1991. Treasuries are higher in morning trading amid the lack of substantial data and the bond markets will close early today. In equity news, Clearwire Corp announced the resignation of its Chairman of the Board and Starbucks Corp reported that it will raise some drink prices next year due to rising commodity costs. Overseas, Asia finished mostly lower but most markets were closed, while Europe is under some pressure in a short-handed session.
As of 8:44 a.m. ET, the March S&P 500 Index Globex future is 2 points below fair value, the Nasdaq 100 Index is 1 point below fair value, while the DJIA is 13 points below fair value. Crude oil is $0.57 lower at $89.27 per barrel, and the Bloomberg gold spot price is up $6.80 at $1,411.48 per ounce. Elsewhere, the Dollar Index-a comparison of the US dollar to six major world currencies-is down 0.5% at 79.13.
Clearwire Corp. (CLWR $5) announced that Craig McCaw, its Chairman of the Board of Directors, informed the company of his decision to resign effective December 31, 2010. The company said McCaw's decision to resign is not due to any disagreements with the company on any matters relating to the company's operations, policies, or practices. Benjamin Wolff is expected to be nominated to replace McCaw.
Meanwhile, Starbucks Corp. (SBUX $32) announced that it will raise the price of some drinks it offers in China on January 1, 2011. The coffee chain said the increase in prices reflects the rising costs of commodities in China.
Economic calendar dormant to close out the year
Treasuries are higher in thin morning action of the final session of the year, with the economic calendar void of any major releases. The yield on the two-year note is 1 bp lower at 0.63%, while the yields on the 10-year note and the 30-year bond are losing 4 bps at 3.32% and 4.38%, respectively. Please note that the bond markets will close early at 2:00 p.m. ET.
Europe lower in a short-handed session
Stocks in Europe are lower in waning minutes of a shortened, light volume session, while most markets, including Germany, Spain, and Italy, were closed for the final trading day of 2010. However, UK equities are seeing action today, and the FTSE 100 Index is down 1.2% despite a report showing UK home prices unexpectedly posted their first gain in seven months, per Bloomberg. The UK index is poised to post a solid gain for the year even as the government grappled with addressing difficult austerity measures to tackle its deficit, while taking shrapnel from the festering euro-area debt crisis in Europe. Meanwhile, French markets are also open for the final session of the year, and the CAC-40 Index is decreasing 1.2%.
Asia mostly higher as China gains but Australia wanes
The equity markets in Asia finished out the year mostly to the upside, but volume was light as several markets in the region, including Japan and South Korea, were closed and some markets closed early. Chinese stocks managed to finish out the day in positive territory with the Hong Kong Hang Seng Index increasing 0.2%, while the Shanghai Composite Index finished 1.8% higher. However, the Shanghai Composite was one of the worst performers for the year among the major global markets, finishing down over 14% as the index found pressure amid a plethora of monetary policy tightening measures deployed by the nation's central bank in an attempt to stem inflation and prevent the formation of asset bubbles. Elsewhere, stocks in Australia finished lower, with the S&P/ASX 200 Index falling 0.9% in an abbreviated session, led by weakness in mining issues.
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