World Markets Pull Back, U.S. Indexes Ease; Oil Down 1%

Bikram Pandey
20 Mar, 2012
New York City

World markets eased as global economic jitters returned after weak economic signals from China and weaker than expected home starts in the U.S. Crude oil fell after Saudi Arabia pledged to increase supply.

[R]4:20 PM New York – World markets eased as global economic jitters returned after weak economic signals from China and weaker than expected home starts in the U.S. Crude oil fell after Saudi Arabia pledged to increase supply.[/R]

U.S indexes weakened after world markets declined on the rising concerns about China’s economic growth. Commodities fell after cautious comments from BHP and Rio Tinto about China’s demand for iron ore, critical component to make steel.

Indexes, Europe, UK, Canada, China and Australia declined after home prices in 45 cities edged lower in China in February and home starts in U.S. fell in the month.

In corporate news, Amazon.com agreed to acquire Kiva Systems for $775 million in cash and Adobe Systems fell 4% after first quarter net declined to $185.2 million and profit was lower than estimated.

Tiffany & Co soared 7% after fourth quarter net decreased to $178.4 million and the jewelry retailer estimated higher than expected net income in the year.

European indexes fell after economic slowdown in China begins to register in latest data. Greece received the first tranche of new bailout aid. Spain raised €5.044 billion in a bond auction as yields dropped. German producer price index fell and UK inflation eased in February.

Australian stocks edged lower and five-month old rally in stocks appears to be losing steam. Resource stocks were weak after cautious comments at from BHP and Rio Tinto at an industry conference.

Commodities, Bonds and Currencies

The 10-year U.S. bond yield increased to 2.37% and 30-year U.S. bond edged lower to 3.46%.

The U.S. dollar decreased to $1.322 to one euro and eased against the Japanese yen to 83.75 yen in New York trading.

Immediate delivery futures of Texas crude oil decreased $2.43 to $105.61 a barrel and Brent crude futures fell $1.41 to $124.32. Futures of natural gas decreased 0.01 cents to $2.33 per mbtu and gasoline price declined 0.03 cents to 3336.77 cents a gallon.

In metals trading, copper declined 7.10 cents to $3.83 per pound, gold decreased $19.20 to $1,648.10 per ounce and silver decreased 96 cents to $31.91.