U.S. Indexes at 6-week Low; World Markets Slide on Japan Quake Impact

Bikram Pandey
14 Mar, 2011
New York City

U.S. indexes declined as global markets fell and Japan appeals for international aid and struggles to prevent a nuclear meltdown. U.S. indexes fell to six-week low. European market indexes fell more than 1% as energy prices decline and metals prices fall.

[R]4:00 PM New York – U.S. indexes declined as global markets fell and Japan appeals for international aid and struggles to prevent a nuclear meltdown. U.S. indexes fell to six-week low. European market indexes fell more than 1% as energy prices decline and metals prices fall.[/R]

U.S. indexes declined as Japan earth quake added to worries related to Saudi Arabia and Libya. The OECD leading index rose in January. Berkshire Hathaway agreed to acquire Lubrizol for $9.7 billion. Eli Lilly offered to buy Janssen Animal Health.

Berkshire Hathaway agreed to buy Lubrizol Corp for $9.7 billion. Ebix fourth quarter net income increased 32% to $15.9 million. Gulfport Energy net income in the quarter rose 57.1% to $14.3 million. Seaspan fourth quarter net income increased 89.6% to $141.6 million.

European markets traded lower after a summit of European leaders failed to calm credit markets. Insurers fell on the worries that Japan quake related claims may surge to as high as $34 billion. Euro area industrial production remained static in January. France Telecom-Orange and Agility venture acquired 44% stake in Iraq-based Korek Telecom.

The UK indexes dropped as the devastating earthquake in Japan added to a growing list of worries ranging from the Middle East turmoil and European sovereign debt default. BP and TNK-BP talks ended in a stalemate over Rosneft deal.

The benchmark index in Tokyo plunged more than 6% and the central bank pumped short term liquidity to stem the rise in the yen. Automakers suspended production and insurance companies led the decliners and construction companies led the gainers as Tokyo Stock Exchange imposes daily trading limit.

Stocks in Mumbai trading surged after crude oil prices eased. The benchmark Sensex index soared 1.4% and Reliance Industries and state controlled refineries gained more than 5%. Reliance Capital soared 10% after it sold 26% stake in its life insurance subsidiary to Nippon Life.

Australian indexes closed lower for the fifth day in last six trading sessions. The Australian dollar in a volatile session edged lower and QBE Insurance estimated its share of Japan tsunami losses not to exceed $125 million. Uranium miners led the decliners.

Commodities, Bonds and Currencies

Yield on 10-year bond decreased to 3.35% and on 30-year bond decreased to 4.53%.

The U.S. dollar decreased to $1.3997 to a euro and decreased against the Japanese yen to 81.68 yen.

Immediate delivery futures of Texas crude oil decreased $0.92 to $100.24 a barrel, of natural gas increased 0.11 cents to $4.001 per mbtu and gasoline prices decreased 4.26 cents to 294.51 cents a gallon.

In metals trading, copper prices decreased 1.95 cents to $4.18 per pound, gold increased $2.60 to $1,424.40 per ounce and silver decreased $0.02 to $35.91.