U.S. Slowdown Grips Investors Sentiment

123jump.com Staff
13 Aug, 2010
New York City

U.S. stocks traded sideways after retail sales and consumer price index increased in July. Yields on 10-year and 30-year bonds trade near record lows as bonds rise for the third week in a row. Crude oil declined. Benchmark indexes in the U.S. are down between 2% and 5% for the year.

[R]4:00 PM New York – U.S. stocks traded sideways after retail sales and consumer price index increased in July. Yields on 10-year and 30-year bonds trade near record lows as bonds rise for the third week in a row. Crude oil declined. Benchmark indexes in the U.S. are down between 2% and 5% for the year.[/R]

U.S. stocks seesawed after inflation index rose 0.3% and retail sales grew 0.4% in July. BP Plc agreed to pay $50.6 million fine for Texas oil refinery explosion. Nordstrom quarterly sales increased 12.7% and net surged 38.6%.

Stocks edged lower in New York trading and nearly half the stocks in the Dow and the S&P 500 index declined. Nordstrom, Inc plunged 5% after it reported lower than expected earnings. Nvidia Corp gained 4% after quarterly loss widened.

The European indexes pared early gains amidst concerns of global economic recovery. Euro-zone trade balance turned surplus of €2.4 billion in June and GDP accelerated 1% in the second quarter. German GDP expanded at 2.2% in the second quarter.

The UK indexes gained a fraction after construction industry expanded. The increase in the construction spending may boost second quarter GDP. Aviva rebuffed RSA Insurance''s $7.8 billion offer for general insurance business. BP agreed to pay $50.6 million fine for Texas oil refinery explosion.

The steep rise in the yen continues to garner attention from stock investors and central bank policy makers. The yen is hovering near the fifteen year high against the dollar as Japanese corporation bring back earner profits from the U.S. Electricity generation in July climbs. Consumer confidence falls for the first time in seven months.

Market indexes in China gained while in Hong Kong declined. China’s fiscal revenue in the first seven month increased 26% from a year earlier to 5.1 trillion yuan. Billionaire investor Li Ka-shing increased his stake in Hutchison Whampoa Ltd.

Stocks in Mumbai gained led after better-than-expected profits from Tata Steel and Adani. Bank of India plans to raise capital to increase its regulatory capital requirements. India gives two more weeks to Research in Motion Ltd to resolve security issues. Darjeeling tea prices surge 50%.

Stocks in Australia gained after a late rally in mining stocks. Qantas Airways reports improvement in bookings from the domestic and Asia markets. AngloGold increases it gold output target. Atlas Iron is closer to acquiring Aurox Resources.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.27 and rose against the Japanese yen to 86.21, and traded near fifteen high.

Crude oil decreased $0.32 to $75.42 a barrel for a front month contract, natural gas edged higher 4 cents to $4.29 per mBtu and gasoline decreased 1.48 cent to 194.00 cents.

Gold decreased $0.40 in New York trading to close at $1,216.30 per ounce, silver increased $0.03 to $18.10 per ounce and copper for the front month delivery decreased 3.20 cents to $3.27 per pound.

Yields on 10-year U.S. bonds decreased to 2.69% and on 30-year U.S. bonds yields decreased 3.87%.