Broad Sell-off in U.S. Stocks, Gold and Oil on Global Jitters

Bikram Pandey
22 Mar, 2012
New York City

U.S. stocks retreated after investors focused on deepening declines in growth in China and euro zone sentiment worsened indicating mild recession. FedEx reported sharply higher earnings but fell after it estimated slower growth.

[R]4:35 PM New York – U.S. stocks retreated after investors focused on deepening declines in growth in China and euro zone sentiment worsened indicating mild recession. FedEx reported sharply higher earnings but fell after it estimated slower growth.[/R]

U.S. stocks were under pressure after weekly jobless claims declined last week and the index of leading economic indicators increased in February. However economic data from the euro zone prompted worries of recession and Chinese manufacturing weakened for the fifth month in a row.

In corporate news, ConAgra third quarter net soared 26% to $271.6 million and reaffirmed fiscal 2012 expectations. Discover Financial first quarter net soared 36% to $624 million as credit rose 9%.

Dollar General fourth quarter net increased 7% to $292.5 million. FedEx third quarter net more than doubled to $521 million.

Bats Global Markets Inc, the operator of third largest U.S. stock exchange said it will sell 6.3 million shares between $16 and $18 a share to raise $100 million.

European indexes declined after euro area private sector activity worsened and Chinese manufacturing output fell in March. The UK retail sales dropped more than estimated in February. Hermes proposed a special dividend of €5 a share after record annual results.

Stocks in Tokyo faced selling in the final hour after Chinese manufacturing declined for the fifth month in a row. Japan exports declined less than expected and trade balance swung to a surplus in February.

Australian stocks traded higher and banks rallied on the hopes of lower interest rate in the next few months after a private survey indicated another monthly slowdown in manufacturing in China.

Commodities, Bonds and Currencies

The yields on 10-year U.S. bond decreased to 2.28% and 30-year U.S. bond edged lower to 3.37%.

The U.S. dollar edged up to $1.318 to one euro and eased against the Japanese yen to 82.53 yen in New York trading.

Immediate delivery futures of Texas crude oil decreased $1.77 to $105.52 a barrel and Brent crude futures fell $1.12 to $123.08. Futures of natural gas decreased 0.09 cents to $2.26 per mbtu and gasoline price declined 2.07 cents to 333.66 cents a gallon.

In metals trading, copper fell 7.55 cents to $3.77 per pound, gold decreased $8.00 to $1,642.30 per ounce and silver fell 82 cents to $31.40.