Europe Follows Asia

Ivaylo
22 May, 2006
New York City

Commodity prices were in retreat, as base metals alongside gold and silver slid. Asian equities were hit in late trading, despite early gains. The banking sector was hit the hardest as investors turned into sellers on concerns that losses might turn into future profits. London

[R]6:30AM European stocks incurred losses on commodities and Asian weakness.[/R]
European markets slipped to a four-month low on Monday on commodity sell-off and Asian stocks giving up earlier gains. Banks led decliners as Deutsche bank slid 1.3% and Credit Suisse fell 1.8%. UBS also joined in to lose 2.4%. Oil companies lost too, as Statoil, the Norwegian oil company, fell 1.2% and Royal Dutch Shell shed 1.4%. Mining companies suffered heavily. Antofagasta was down 7.7% and Xstrata shed 1.4%. Mergers provided some respite with Alliance & Leicester, UK bank, gaining 6.1%, after an assessment by Credit Agricole, its potential buyer. In other news, Arcelor said it was in the process of reviewing Mittal Steel’s revised offer to decide on it.

Crude oil was trading 98 cents down at $67.55 a barrel at 0819 GMT after falling more than $1 to its lowest level since April 10. Brent crude was 84 cents lower at $67.85. Gold topped a high of $661.25 an ounce ahead of falling to as low as $643.00 ounce as fund selling speeded up. The U.S. dollar advanced against most other major currencies in European trading Monday. The euro bought $1.2753, down from $1.2772 late Friday in New York. The greenback traded at 112.49 yen, up from 111.66. The British pound traded at $1.8728 down from $1.8780.

[R]5:00AM Gold prices fell Friday on dollar strength and calmer market.[/R]
June gold dropped to a two-and-a-half week low, finishing down $23.40 at $657.50 an ounce on the NYME, well below its $732-an-ounce, 26-year high hit a week ago.Silver ended down 16 cents at $12.36 an ounce. July platinum settled $12.20 up on the day at $1,310 an ounce. June palladium fell down $20.70, to finish at $351.80 an ounce. The most-traded copper contract ended with a loss of 24.20 cents to $3.4690 per pound.

June crude oil was down 92 cents at $68.53 a barrel while gasoline finished 2.33 cents higher at $2.0384 a gallon. July Arabica coffee settled 1.5 cent down at $1.0065 a pound and raw sugar in foreign ports ended up 0.08 cent at 16.42 cents a pound.