Daily news

U.S News

U.S. stocks surged on the last day of a year by the most since 1974 on Dec. 31, completing a 13 percent increase for 2012, the best since 2009. Gold extended a 12th annual gain, the longest streak since at least 1920.

“The world breathes a sigh of relief,” David Blanchflower, former Bank of England policy maker and now a Dartmouth College professor, said on Bloomberg Television. “We may well see some degree of confidence here and bit of a rally from the good news.”

Warren Buffett’s bet on Bank of America Corp. (BAC) and a more-generous buyback plan helped his Berkshire Hathaway Inc. (BRK/A) beat the Standard & Poor’s 500 Index in a year when he didn’t make a major acquisition. Shareholders had plenty to celebrate last year, including the profitable Bank of America wager, the performance of new investment managers, stronger earnings at some operating units and the buyback plan.

Asian News

Asian stocks rose, heading for their highest close since August 2011, as the U.S. House of Representatives passed legislation averting some of $600 billion in automatic tax increases and spending cuts

About five stocks climbed for each that fell on the MSCI Asia Pacific excluding Japan Index as all 10 industry groups rose during the year’s first trading session. Basic-material producers and technology companies led the advance. Equity markets in Japan and mainland China are closed today and tomorrow for public holidays

Raw-material producers rose after Chinese manufacturing data added to evidence that the recovery in the world’s second-biggest economy will extend into the New Year. BHP Biliton climbed 1.7 percent to A$37.74 and Rio Tinto Group gained 2.4 percent to A$67.57 in Sydney

European News

European stock-index futures and Asian shares rose, extending last year’s 13 percent global rally, metals led commodities higher while Japan’s yen and the dollar weakened after U.S. lawmakers passed a bill that averted spending cuts and tax gains threatening the economy

European stocks posted the biggest annual rally in three years in 2012 as the European Central Bank’s program to purchase bonds of the region’s weakest economies helped ease concern the euro area will fracture.

European stocks rallied to a 19-month high as U.S. lawmakers passed a budget bill that avoided most scheduled tax increases threatening a recovery in the world’s largest economy. Asian shares advance

Currencies

The dollar weakened against most of its major counterparts while the yen fell past 87 per dollar for the first time in 2 1/2 years and slid to an 18-month low versus the euro.

While the Japanese currency dropped 11 percent last year versus the dollar, the biggest annual slide since 2005, it is still about 16 percent stronger than the 10-year average of 101 per greenback.

 

Bonds

Ten-year Treasury yields gained one basis point to 1.77 percent today after capping the lowest-ever annual close on Dec. 31. Trading in Treasuries was closed in Japan today.

The world’s leading economies will have $220 billion less sovereign debt to refinance in 2013, cutting supply after every major government bond market rallied for the first time since the 2008 financial crisis.

The amount of bills, notes and bonds coming due for the Group of Seven nations plus Brazil, Russia India and China will drop to $7.38 trillion from $7.60 trillion in 2012, according to data compiled by Bloomberg. Japan, the U.K., Germany, France, Italy and Brazil will see a decline, while the U.S., Canada, Russia, India and China will face an increase.

Commodities

Oil rose in New York, heading for the highest close in three months. Futures increased as much as 1.1 percent after legislation to avoid the so-called fiscal cliff was passed

Gold producers climbed as the price of the precious metal rose 0.7 percent to $1,676.55 per ounce. Silver, platinum and palladium climbed. Cash silver gained as much as 1 percent to $30.64 an ounce after erasing a 0.4 percent loss. The metal advanced 9 percent in 2012 as investors boosted holdings in exchange-traded products 9.4 percent to a record 18,916.92 tons on Dec. 28.

 

 

Sayyed Hussain