U.S. Markets Rebound on Higher Retail Sales and Lower Crude Oil

Bikram Pandey
11 Mar, 2011
New York City

U.S. indexes rebounded after retail sales were ahead of expectations and crude oil prices declined. Japan struggles in the aftermath of the strongest earthquake on record as Tokyo residents face power loss and damaged transportation system.

[R]4:00 PM New York – U.S. indexes rebounded after retail sales were ahead of expectations and crude oil prices declined. Japan struggles in the aftermath of the strongest earthquake on record as Tokyo residents face power loss and damaged transportation system.[/R]

World financial markets were on the edge as most nations touched by the Pacific Coast prepare to battle tsunami unleashed by the strongest earthquake felt in three centuries near the northern coast of Japan.

Coastal waters in Hawaii and on the West Coast of the U.S. and Australia and New Zealand surged to as high as 1.8 meters.

U.S. indexes struggled in early trading but rebounded as retail sales rose in February and crude oil futures traded as low as $99.70 a barrel before rebounding to $100.91.

In Europe, German wholesale price inflation accelerated in February and inflation in euro area rose in February and economic growth was mixed. Swedish jobless rate fell in February. Hungary, Czech Republic and Bulgaria lowered their estimates of quarterly GDP growths.

Sweden-based Saab won an order for weapon system form an undisclosed customer and Brainspark signed deal with Italy-based Gruppo Bancario Mediterraneo.

Frankfurt airport operator Fraport said annual net surged 80%.

The UK indexes declined tracking the losses in the European markets and the UK factory gate inflation rose to 28-month high in February. BP expanded bio-fuels business in Brazil. Chevron agreed to sell Pembroke Refinery and certain UK assets to Valero Energy for $1.73 billion.

Markets in Japan dropped after the strongest earthquake in three centuries knocked off power connection to 4 million homes in Tokyo and nuclear reactors operated under emergency conditions and city ground to a halt as subways, airports and bullet trains shut down.

Stocks in Shanghai extended Japan losses. Consumer price inflation in China increased 4.9% in February and industrial production in two-months to February rose 14.1% and retail sales growth declined to 15.8%.

Stocks in Mumbai traded lower after industrial production rose less than expected in January. Markets opened lower on weak economic data in U.S. and the violent unrest spreads in the Middle East to Saudi Arabia.

Stocks in Australia declined the most in a week in the last nine months. Global sentiment dictated the trading in Sydney. Markets opened lower after U.S. weekly jobless claims rose, sovereign debt worries resurfaced in Europe and China reported a faster increase in inflation.

Commodities, Bonds and Currencies

Yield on 10-year bond decreased to 3.39% and on 30-year bond rose to 4.54%.

The U.S. dollar decreased to $1.380 to a euro and increased against the Japanese yen to 81.87 yen.

Immediate delivery futures of Texas crude oil decreased $1.79 to $100.91 a barrel, of natural gas increased 0.06 cents to $3.89 per mbtu and gasoline prices decreased 3.6 cents to 298.41 cents a gallon.

In metals trading, copper prices increased 3.05 cents to $4.22 per pound, gold increased $7.60 to $1,420.10 per ounce and silver rose $0.79 to $35.86.