Oil, Gold Rally; World Stocks, Crops Drop

123jump.com Staff
31 Mar, 2010
New York City

A rally in metals and oil failed to lift stocks after private employers cut more than expected jobs in February. Gold gained for the sixth quarter in a row and oil traded at 17-month high. Agriculture commodities declined after higher than expected level of inventories and planting.

[R]5:15 PM New York – A rally in metals and oil failed to lift stocks after private employers cut more than expected jobs in February. Gold gained for the sixth quarter in a row and oil traded at 17-month high. Agriculture commodities declined after higher than expected level of inventories and planting.[/R]

U.S. stocks traded lower after private employers cut jobs in February surprising most economists. Crude oil inventories at the end of last week increased but gasoline inventories edged up less than expected. New orders for manufactured goods increased in seven of last nine months.

Agriculture commodities declined sharply led by a fall in wheat, corn and soybeans. Wheat traded at five-month low and soybeans at three-month low after the U.S. reported higher than expected inventories of agriculture commodities and on higher than expected planting levels.

For the sixth quarter in a row gold closed higher.

SAIC, Inc declined after it missed quarterly earnings and lowered the annual earnings outlook. Rite Aid Corporation declined after it reported narrower quarterly loss but margins and sales were weaker than expected. Ford Motor Company declined ahead of warrants sale.

European markets closed lower as investors debate the direction of the euro. Greek bond yields rose for the third day in a row on the worries that Greece may need more emergency funding. Preliminary estimate of inflation in the euro zone was estimated at 1.5%. Steelmakers prepare to pass 20% price hike.

UK stocks traded weak. Investors remained focused on the weakness in Greek bonds and continued worries about the UK housing market. Northern Foods plc said quarterly sales dropped. Pinewood Shepperton plc profits declined. Dairy Crest Group lifts profits outlook. BG Group and Tokyo Gas sign agreement for LNG sale.

Stocks in Mumbai traded lower after rising for two weeks. February industrial output is expected to increase 16% from a year ago. Exports in the month surged 34.8% to $16.09 billion. Sugar crop in the current season is expected to surge 26% to 18 million tons.

North American Markets

Dow Jones Industrial Average decreased 50.79 or 0.5% to close at 10,856.63, S&P 500 Index edged lower 3.84 to 1,169.43 and Nasdaq Composite Index declined 12.73 or 0.5% to close at 2,397.96. Toronto TSX Composite Index decreased 6.48 or 0.05% to 12,037.73.

Latin American Markets Indexes

Mexico Bolsa Index decreased 133.03 or 0.4% to 33,266.43 and Brazil Bovespa Stock Index increased 411.96 or 0.6% to 70,371.54.

Europe Markets Review

In London FTSE 100 Index closed higher 7.32 or 0.13% to 5,679.64, in Paris CAC 40 Index decreased 13.40 or 0.34% to close at 3,974.01, in Frankfurt DAX index higher 11.10 or 0.18% to close at 6,153.55. In Zurich trading SMI increased 1.95 or 0.03% to close at 6,873.37.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 7.20 or 0.06% to 11,089.94, and Hang Seng index in Hong Kong decreased 135.44 or 0.63% to 21,239.35, and CSI 300 index in China lower 21.10 or 0.63% to 3,345.61. ASX 200 index in Australia decreased 41.30 or 0.84% to 4,875.50. The FTSE Bursa KL Composite index in Malaysia was higher 1.22 or 0.09% to 1,320.57.

The Kospi Index in South Korea decreased 7.34 or 0.43% to close at 1,692.85. SET index in Thailand closed lower 0.82 or 0.10% to 787.98. JSE Index in Indonesia decreased 20.97 or 0.75% to 2,777.30. The Sensex index in India decreased 62.40 or 0.35% to 17,527.77.

Commodities, Metals, and Currencies

Crude oil increased $1.39 to $83.76 a barrel for a front month contract, natural gas edged down 10 cents to $3.87 per mBtu and gasoline increased 2.46 cents to 229.67 cents.

Soybean future closed down 33 cents to $9.41 a bushel. Wheat futures decreased 21.25 cents in Chicago trading to $4.64 a bushel. Sugar closed down 1.29 cents at 16.59 cents per pound.

Gold increased $8.60 in New York trading to close at $1,114.30 per ounce, silver closed up $0.18 to $17.55 per ounce and copper for the front month delivery decreased 1.35 cent to $3.55 per pound.

Dollar edged lower against euro to $1.3512 and increased against the Japanese yen to 93.44.

Yield on 10-year U.S. bonds closed lower at 3.83% and with 30-year maturities decreased at 4.71%.