World, U.S. Markets Decline; Crude Oil Falls

Bikram Pandey
11 Apr, 2011
New York City

U.S. stocks lost steam and crude oil declined from the 30-month high. Schneider Electric is exploring an offer for Tyco International. Endo agrees to acquire American Medical Systems for $2.9 billion. Crude oil falls after Libya accepts the African Union proposal.

[R]4:00 PM New York – U.S. stocks lost steam and crude oil declined from the 30-month high. Schneider Electric is exploring an offer for Tyco International. Endo agrees to acquire American Medical Systems for $2.9 billion. Crude oil falls after Libya accepts the African Union proposal.[/R]

U.S. indexes gained ahead of first quarter earnings season. U.S. government averted shut-down crisis as lawmakers agree on spending cuts. Endo agreed to acquire American Medical Systems for $2.9 billion. TimberWest Forest agreed to be purchased for C$1.03 billion.

Benchmark Electronics lowered first quarter guidance sales to be of $540 million. Cliffs receive cash payment of as much as $270 million after price settlement with ArcelorMittal. Endo Pharmaceuticals agreed to acquire American Medical Systems for $2.9 Billion in cash. Shaw Group second quarter net income plunged 98% to $1.20 million.

The OECD leading index rose in February. German corporate insolvencies dropped in January. French industrial output slackened in February and Dutch trade surplus rose in February. Romanian inflation accelerated to 8.01% in March.

European indexes traded sideways led by automakers. Meyer Burger agreed to acquire Roth & Rau for €22 per share. NYSE Euronext reaffirmed agreement with Deutsche Boerse.

The UK indexes traded higher after banking stocks rose after the independent commission did not recommend breaking large banks. Irish industrial production and construction dropped. BHP Billiton completed its $10 billion stock buyback program.

Stocks in Japan declined on the ongoing auto production worries. Automakers plan to increase production in stages from today and Sony suspended operations at a plant that makes optical parts. Northeast Japan was hit with another 7.1 magnitude earthquake at local time 5:17 pm.

Mumbai stocks extended losses for the fifth day in a row as crude oil hovered near 30-month high and industrial production increased 3.6% in February. The less than expected growth in production also contributed to the weak trading sentiment.

Australian stocks closed higher and the dollar traded at 29-year peak. Western Australia premier urged energy executives to not mount a takeover of Woodside Petroleum. Leighton Holdings is set to raise $757 million in a rights offering.

Commodities, Bonds and Currencies

The 10-year bond yield increased to 3.56% and 30-year bond gained to 4.63%.

The U.S. dollar decreased to $1.44 to a euro and rose against the Japanese yen to 84.63 yen.

Immediate delivery futures of Texas crude oil increased $3.42 to $109.37 a barrel, of natural gas increased 0.07 cents to $4.11 per mbtu and gasoline prices decreased 6.02 cents to 320.05 cents a gallon.

In metals trading, copper prices decreased 3.9 cents to $4.46 per pound, gold decreased $10.40 to $1,463.70 per ounce and silver decreased $0.26 to $40.34.