Markets Bounce Back Amid Dubai Relief and Exxon Acquisition

Strategic Insights -

Markets around the world experienced a significant uptick on December 15, as concerns over Dubai's debt woes appeared to be alleviated and Exxon Mobil announced its intention to acquire XTO Energy for $41 billion. The Dow Jones Industrial Average rose 0.26% to 10,499.24, the Standard & Poor's 500 increased 0.57% to 1,112.71, and the Nasdaq advanced 0.69% to 2,205.35.

Key Takeaways:

  • Shares in XTO Energy surged as part of the Exxon Mobil acquisition, Visa, Sun Microsystems, and Philip Morris also posted gains.
  • Citigroup's shares fell after the company detailed plans to sell stock to repay bailout funds.
  • The Chicago Board Options Exchange Volatility Index (VIX) dropped 2.78% to 20.99, a sign of reduced market anxiety.
  • HSBC Holdings, Standard Chartered, and Deutsche Bank gained after Abu Dhabi intervened to help Dubai real estate developer Nakheel meet its debt obligations.
  • Industrial metals prices supported Lonmin, Xstrata, and Norsk Hydro shares.
  • Aluminum surged to a 14-month high, and copper futures rose by 0.5% to $3.15 a pound in New York.
  • Gold edged higher, while oil prices continued to decline, dropping 31 cents to $69.56 a barrel.
  • Brent crude was up 10 cents at $71.98, and ministers from the Organisation of the Petroleum Exporting Countries (OPEC) intend to maintain output targets at a December 22 meeting.

Statistics:

  • Dow Jones Industrial Average: 10,499.24 (up 0.26%)
  • Standard & Poor's 500: 1,112.71 (up 0.57%)
  • Nasdaq: 2,205.35 (up 0.69%)
  • Chicago Board Options Exchange Volatility Index (VIX): 20.99 (down 2.78%)
  • Exxon Mobil acquisition price: $41 billion
  • Aluminum price: over $2,300 a tonne (14-month high)
  • Copper futures: $3.15 a pound (up 0.5%)
  • Crude oil price: $69.56 a barrel (down 31 cents)
  • Brent crude price: $71.98 (up 10 cents)
  • Yen to euro exchange rate: 129.68 (down 0.4%)
  • Yen to dollar exchange rate: 88.52 (down 0.7%)
  • Dollar Index: 76.32 (down 0.32%)
  • 10-year U.S. Treasury yield: 3.55% (flat)

Sources:

  • Business Wire - "While you were sleeping: Dubai relief, Exxon expands Dec. 15"