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World Summary: DISMAL DAY FOR EQUITIES AS OIL CLIMBS AGAIN
US financial markets found little to cheer about overnight after retails sales fell in June, oil climbed past $US40 barrel and more bombings were reported in Iraq. All the key indices finished lower with the Dow finishing down 39, the S&P 500 off 4, the Nasdaq 17 and the 100 index 13. The outlook for technology stocks turned bleak after analysts gave the thumbs-down to Intelâs latest quarterly report and the stock fell 10.5 per cent. And the Philadelphia Semiconductor Index didnât help after slumping 4.5 per cent to its lowest close since September 30. The benchmark is 17 per cent behind this year after climbing 76 per cent last year. All semiconductor stocks retreated today. The most serious concern was the oil price, which surged past the $40 barrel barrier on the New York August contract to settle $1.53 higher at $40.97 barrel. The US Energy Information Administration disclosed crude oil stocks fell by 2.1 million barrels to 302.9 million in the week ended July 9. Gasoline stocks were off 200,000 barrels to 205.9 million while heating oil stocks rose by 1.4 million to 44.5 million. Keep the tank full at these âcheaperâ prices) There was also uncertainty of continuity of supplies from Middle East OPEC members in the light of more bombings in Iraq. The governor of the northern city of Mosul was killed in a grenade attack while a bombing of a compound housing the Iraqi Government, and the US and UK embassies, reportedly killed 10 people and injured 40. On the US domestic front, retail sales fell 1.1 per cent in June, the biggest slide in 17 months, according to the Commerce Department. Analysts were caught out after predicting a fall of 0.8 per cent. However, one redeeming feature was an upward revision on the previous month to 1.4 per cent, although the latest core rate was down. The sales slide was triggered by a fall in spending on autos and demand for goods in department stores. Investors and economists believe markets can live with retail sales but they need good results from tonightâs PPI or wholesale inflation and the CPI, retail inflation, due Friday. The US dollar edged up against the yen and sterling, but eased on the euro. Posted by: Mark Espinola 2004-07-14 |
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