In European Equity Markets stocks declined, following their first weekly drop since January, on rising tensions over Ukraine's Crimea region and after an unexpected slump in Chinese exports triggered a selloff in mining stocks. Aurubis AG and Fresnillo Plc lost more than 3.5 percent each as commodity producers fell. Iliad SA surged 11 percent as Bouygues SA said it is in talks to sell some of its mobile-phone assets to the operator of the Free brand. Rolls-Royce Holdings Plc rose 1.3 percent after Daimler AG said it will sell a 50 percent stake in an engine joint venture to the British company. National benchmark indexes dropped in 12 of the 18 western-European markets today. Germany's DAX lost 0.9 percent, and the U.K.'s FTSE 100 fell 0.4 percent. France's CAC 40 climbed less than 0.1 percent. Aryzta AG declined 3.5 percent to 71.40 Swiss francs. The supplier of bakery products said its first-half margin on earnings before interest, taxes and amortization remained at 12.3 percent for its food unit.
In Currency Markets the Australian dollar fell for a second day against the U.S. currency after China reported the biggest trade deficit in two years, cooling demand for higher-yielding assets. The Aussie weakened versus most of its 16 major counterparts as stocks declined. China's yuandropped after the central bank lowered its reference rate for the currency by the most in 1 1/2 years. A gauge of foreign-exchange volatility was almost the lowest in more than a year as Federal Reserve Bank of Philadelphia President Charles Plosser said encouraging economic data isn't enough to change the pace of the central bank's asset purchases. The Aussie dropped 0.6 percent to 90.18 U.S. cents at 11:30 a.m. in New York after advancing to 91.33 cents on March 7, the strongest since Dec. 11. The yen appreciated 0.1 percent to 103.17 per dollar. Japan's currency gained 0.2 percent versus the euro, to 143.11. The euro traded at $1.3870.
In Commodities Markets West Texas Intermediate and Brent crudes decreased after Chinese exports unexpectedly sank, bolstering concern that economic growth in the world's second-biggest oil consuming nation will slow. Futures fell as much as 1.7 percent in New York. China's overseas shipments declined by 18.1 percent in February from a year earlier, the biggest drop since August 2009, customs data showed March 8. That compared with a median estimate for a 7.5 percent gain in a Bloomberg survey of economists. Libyan officials vowed to stop a tanker from leaving a rebel-held port. WTI for April delivery declined $1.34, or 1.3 percent, to $101.24 a barrel at 12:30 p.m. on the New York Mercantile Exchange. Brent for April settlement fell 92 cents, or 0.8 percent, to $108.08 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade traded at a $6.84 premium to WTI, compared with $6.42 on March 7.
In US Equity Markets stocks slid, pulling the Standard & Poor's 500 Index down from a record, as a slowdown in Chinese exports fueled concern about global economic growth. U.S. Steel Corp. and Alcoa Inc. tumbled more than 2 percent as commodity producers led losses. Boeing Co. dropped 2.5 percent after a 777-200 plane disappeared with 239 passengers and crew during a Malaysia Airlines flight to Beijing on March 8. 3D Systems Corp. lost 4.8 percent and Stratasys Ltd. (SSYS) fell 2.7 percent after Barron's magazine said the 3D printer makers' shares were overvalued. The S&P 500 lost 0.3 percent to 1,873.13 at 12:30 p.m. in New York. Nine of 10 main industries in the S&P 500 declined today, with materials producers dropping 0.7 percent as a group. Alcoa tumbled 2.6 percent to $11.85 and U.S. Steel slipped 2.4 percent to $24.24. Joy Global Inc. fell 2.9 percent to $55.20 and Vulcan Materials Co. decreased 1.5 percent to $67.80.
In Bond Markets Treasury three-year notes yielded the most since September in pre-auction trading before the U.S. sells $30 billion of the securities as investors bet the economic expansion is gaining traction. The prices of benchmark 10-year securities fluctuated after Federal Reserve Bank of Philadelphia President Charles Plosser said officials must be aware of the risk of loose monetary policy. A report last week showing U.S. employers added more jobs than forecast last month bolstered speculation Fed policy makers will continue to taper bond purchases. The U.S. kicks off $64 billion in notes and bonds sales this week with the three-year notes auction tomorrow. U.S. 10-year yields dropped one basis point, or 0.01 percentage point, to 2.79 percent at 12:30 p.m. New York time after falling as much as three basis points and rising one. |
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