U.S. Indexes Decline in April, World Markets Struggle

Bikram Pandey
30 Apr, 2012
New York City

U.S. stocks eased after Spain joined the UK and entered recession for the second time since 2009 and the U.S. business activities expanded at the slowest pace in April in three years. The benchmark S&P 500 index fell 0.8%, first decline after four months of gains.

[R]4:25 PM New York – U.S. stocks eased after Spain joined the UK and entered recession for the second time since 2009 and the U.S. business activities expanded at the slowest pace in April in three years. The benchmark S&P 500 index fell 0.8%, first decline after four months of gains.[/R]

U.S. indexes traded lower after personal income and consumer spending rose in March but the worries in the euro zone overshadowed the market.

On the deal front, Energy Transfer agreed to acquire Sunoco for $5.3 billion and Hologic said it agreed to buy Gen-Probe for approximately $3.7 billion.

CNA Financial first quarter net slumped 3% to $367 million. Energy Transfer agreed to acquire Sunoco for $5.3 billion. Barnes & Noble soared on Microsoft investment. Humana first quarter net declined 21% to $248 million. Hologic acquired Gen-Probe for about $3.7 billion.

The European market indexes traded directionless as traders stayed away for a long weekend. Spain slipped back into a double-dip recession after the economy contracted in the first quarter. adidas raised its fiscal 2012 outlook after strong quarterly performance.

Euro-zone inflation eased to 2.6% in April. The euro area M3 growth jumped to 3.2% and German retail sales rebounded in March. The Spanish economy contracted in the second quarter and the Swiss central bank swung to loss in the first quarter.

Separately, Luxembourg Prime Minister Jean-Claude Juncker said at a gathering that he is stepping down as head of the group of euro-area finance ministers and regrets persistent Franco-German interference in managing the euro crisis.

The UK indexes fell after home prices eased in April. Irish loans to households dropped in March. Aberdeen first-half revenue rose 7% to £413.1 million.

Asian markets traded higher but markets in mainland China and in Japan were closed and the benchmark index in India advanced 1.1% on the strength in software services companies and rupee edged lower.

Australian stocks gained after copper prices edged up but trading was subdued as markets were closed in Japan and in mainland China. New home sales dropped 9.4% in March and home sales dropped across all states as buyers stay away from record high sale prices. Spotless Group agreed to go private that will leverage its balance sheet.

Commodities, Bonds and Currencies

The yields on 10-year U.S. bond decreased to 1.92% and 30-year U.S. bond edged higher to 3.12%.

The U.S. dollar edged lower to $1.3238 to one euro and inched lower against the Japanese yen to 79.82 yen.

Immediate delivery futures of Texas crude oil decreased 14 cents to $104.79 a barrel and Brent crude futures fell 55 cents to $119.28.

In New York trading, futures of natural gas increased 0.10 cents to $2.29 per mbtu and gasoline price fell 2.26 cents to 318.45 cents a gallon.

In metals trading, copper gained 1.2 cents to $3.87 per pound, gold added $0.30 to $1,665.10 per ounce and silver decreased 39 cents to $31.05.