Global Investors Shift Focus to Commodities and Japan Rebuilding

Bikram Pandey
22 Mar, 2011
New York City

U.S. indexes rested after a 3-day rally and ignored the rising tensions in the Middle East and the spread of violence to Bahrain, Yemen and Oman. Uranium miners rebound and natural gas explorers rest in trading. Euro-zone nations increase bailout fund size and UK inflation picks up.

[R]4:00 PM New York – U.S. indexes rested after a 3-day rally and ignored the rising tensions in the Middle East and the spread of violence to Bahrain, Yemen and Oman. Uranium miners rebound and natural gas explorers rest in trading. Euro-zone nations increase bailout fund size and UK inflation picks up.[/R]

U.S. indexes traded mixed after the 3-day rally lifted broader indexes 3.5%. Japan struggles with the radioactive leak and cited some success in providing a connection to power sources at four of the six nuclear reactors but situation is far from settled.

Allied forces attacks fail to dislodge Gaddafi stronghold in Benghazi as the sparring began among Arab and African nations and Russia, China and India stepped its criticism of the bombing that is killing civilians.

Research in Motion scheduled its launch of tablet on April 19.

Carnival first quarter net income fell to $152 million. Dollar General fourth quarter net income soared 6.4% to $222.5 million. Express net income in the quarter rose to $48.4 million. Jefferies Group first quarter net earnings increased 21% to $87.3 million. Walgreen second quarter net earnings increased to $739 million.

European indexes traded sideways after German exports rose in the fourth quarter. Euro area finance ministers decided to increase capital base of permanent bailout fund to €700 billion. Merck and Sanofi terminated a venture in animal health.

The UK indexes declined after annual inflation accelerated more-than-estimated in February. UK public borrowing rose and manufacturers forecasted robust growth. Cairn Energy fiscal year 2010 net and revenue surged. Punch Taverns plans to cut its pubs portfolio in half.

Stocks in Tokyo rebounded 4.4% after investors focused on reconstruction efforts. Builders, steelmakers and construction companies led the gainers in Tokyo trading however the situation is far from settled. The focus shifted to food contamination and seawater radiation.

Stock in Mumbai opened higher and added as much as 1% but settled lower. The ruling coalition introduced two bills in the Parliament to reform banking sector and to transition to the value-added-tax regime.

Australian stocks closed flat after Japan cited more progress in averting a nuclear meltdown. However, the situation at the troubled Fukushima power plant remains tenuous. Natural gas explorer declined after a weeklong rally.

Commodities, Bonds and Currencies

Yield on 10-year bond increased to 3.34% and on 30-year bond gained to 4.45%.

The U.S. dollar decreased to $1.42 to a euro and rose against the Japanese yen to 80.97 yen.

Immediate delivery futures of Texas crude oil increased $1.67 to $104.00 a barrel, of natural gas increased 0.03 cents to $4.19 per mbtu and gasoline prices decreased 1.08 cents to 298.66 cents a gallon.

In metals trading, copper prices increased 2.90 cents to $4.31 per pound, gold decreased $1.70 to $1,424.70 per ounce and silver increased $0.39 to $36.35.