U.S., World Markets Decline; Oil, Euro Fall

Bikram Pandey
23 May, 2011
New York City

U.S. indexes declined following world markets losses. Markets in Asia fell after manufacturing in China declined for the second month in a row. European markets dropped after sovereign debt worries resurfaced. The dollar gained and oil fell.

[R]4:45 PM New York – U.S. indexes declined following world markets losses. Markets in Asia fell after manufacturing in China declined for the second month in a row. European markets dropped after sovereign debt worries resurfaced. The dollar gained and oil fell.[/R]

U.S. stocks declined on global economic worries. Rating agencies downgrade of Greek and Italian debt only added to the market jitters. The dollar rose as the euro declined. Crude oil fell 2% and silver eased 1%. The Dow, S&P 500 index and the Nasdaq dropped between 1% and 1.6%.

Campbell Soup third quarter earnings in the quarter increased to $187 million. Krispy Kreme first quarter net income grew to $9.2 million. Tech Data first quarter net income increased to $48.7 million. Sony forecast revenue loss of 3% and expects net loss of ¥260 million.

European markets accelerated sell-off after China manufacturing slow down added to market jitters. Ratings agencies downgraded debts of Italy and Greece and regional elections losses in Spain also unnerved investors.

UK market indexes declined after a weakness in the European markets. The benchmark index dropped nearly 2%. Mining and energy linked companies declined after commodities and crude oil prices declined. Stobart Group Ltd sales increased but net declined. MITIE Group full-year net advanced.

Stocks in Tokyo fell on the worries that exports to China may suffer. The latest read on manufacturing index in China prompted a broker to lower its view on the makers of steel and construction machinery. The Nikkei index declined 1.5% as indexes in Asia dropped between 1% and 2%.

Australian stocks dropped the most in two months after a private survey in China estimated near flat manufacturing in May. The index declined to 10-month low. The weak manufacturing dragged markets in Asia. Territory Resources soared on an offer from Exxaro. Elders dropped 7% after it reported first-half loss.

Commodities, Bonds and Currencies

The 10-year bond yield decreased to 3.13% and 30-year bond fell to 4.27%.

The U.S. dollar decreased to $1.404 to a euro and fell against the Japanese yen to 81.98 yen.

Immediate delivery futures of Texas crude oil decreased $2.40 to $97.70 a barrel, of natural gas increased 0.11 cents to $4.34 per mbtu and gasoline prices increased 0.25 cents to 293.81 cents a gallon.

In metals trading, copper prices decreased 13.00 cents to $3.99 per pound, gold increased $6.50 to $1,515.40 per ounce and silver decreased $0.18 to $34.90.