Oil Prices Slip 1%

Elena
27 Dec, 2005
New York City

Asian-Pacific benchmarks finished mixed with several bourses still closed. The Nikkei dropped 0.9%, retreating from record highs on consumer prices data. European sttocks slightly advanced at mid-day with Belgium brewing company InBev in the spotlight. Guidant warned that its Q4 profit will fall short of estimates. The company projected earnings in the range of 17 cents to 23 cents per share on revenue of $790 to $820 million.

U.S. MARKET AVERAGES

U.S. stock futures pointed to a higher market opening after the long holiday weekend as oil prices slipped 1% and portfolio managers were expected to modify their holdings before the end of the year.

Trading today is likely to be thin as many traders are still away for the holiday, and no major corporate news is expected.

U.S. consumers spending increased 8.7% during the holiday shopping period compared to a year ago.

Shares of medical device maker Guidant Corp. ((GDT)) will be in the spotlight after the company warned that its Q4 and 2006 profit will fall short of estimates after a product recall in June.

Traders will watch fixed income markets as the yield on benchmark 10-year U.S. Treasuries fell below that of two-year notes on Tuesday, inverting the yield curve for the first time since December 2000.

S&P 500 futures were up 3.5 points, above fair value. Dow Jones industrial average futures rose 34 points, and Nasdaq 100 futures gained 6.5 points.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks finished mixed with bourses in Hong Kong and Australia closed. The Nikkei retreated from record highs, declining 0.9% on news that consumer prices rose for the first time in two years, sparking speculation that the Bank of Japan may reverse its ultra-easy monetary policy. South Korea’s Kospi gained 0.4%, Taiwan’s Weighted index added 0.05%, and Shanghai’s Composite inched up 0.07%.

European stocks traded slightly higher at mid-day as investors renewed dealing after the long holiday weekend, and Belgium brewing company gained after detailing CEO succession plans. The German DAX 30 added 0.1%, followed by the French CAC 40, also up 0.1%. London’s FTSE 100 was closed for an extra day.

OIL, METALS, CURRENCIES

Crude oil prices declined on mild U.S. weather and sufficient supplies. Light sweet crude for February delivery slipped 83 cents to $57.60 a barrel on the Nymex. Natural gas fell as much as $1.027 to $11.256 per 1,000 cubic feet.

Gold prices declined in European trading. In Zurich gold opened at $502.95 per troy ounce, down from $505.10 in late Friday trading.

The U.S. dollar traded mixed against its major counterparts in European trading. The euro was quoted at $1.1864, slightly up from $1.1863. The dollar bought 116.97 yen, up from 116.40. The British pound traded at $1.7364, up from $1.7319.