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Wall Street stocks waver on oil uncertainty


UPDATED The market finished marginally lower on the bull market's two-year anniversary.

Nevil Gibson
Thu, 10 Mar 2011

Stocks on Wall Street ended marginally lower as uncertainty over the conflict in Libya kept the investors searching for direction on the two-year anniversary of the bull market's start.

At the close (10am NZ time), the Dow Jones Industrial Average was down 1.29 points to 12,213.09. The Nasdaq Composite was down 0.5% to 2751.72 and the S&P 500 index slipped 0.1% to 1320.02.

The S&P 500 hit its lowest close of the bear market at 677 on March 9, 2009. Since then, the index has surged more than 95%. That is the strongest two-year bull market since 1962 and one that has added $US6.2 trillion in market capitalisation to the S&P 500.

Earlier this year, the S&P 500 doubled its level from the March 2009 lows, but it has pulled back recently in the wake of unrest in the Middle East and North Africa.

On Wednesday, prices for crude oil retreated slightly, falling below $US105 a barrel as an increase in US oil stockpiles briefly diverted traders' attention.

Other markets: Europe down, Asia up
European stocks fell, led lower by oil majors and bank issues.

The Stoxx Europe 600 index closed down 0.2% at 281.17. The UK's FTSE 100 index fell 0.6% to 5937.30, France's CAC-40 index ended down 0.6% at 3993.81 and Germany's DAX slipped 0.5% to 7131.80.

Asian stocks mostly advanced as crude-oil prices continued to pause, while shares in Tokyo rose on upbeat machinery-orders data.

Cathay Pacific Airways jumped 4.5% to lead Hong Kong's advance after the carrier said its 2010 profit nearly tripled. Miners pulled down the Australian market, falling in tandem with commodity prices. BHP Billitonfell 1.3% and Rio Tinto shed 1.8%.

Japan's Nikkei Stock Average rose 0.6% to 10,589.50, Korea's Kospi added 0.3% to 2001.47 and China's Shanghai Composite overcame early losses to inch up 0.1% to a fresh 2011 closing high of 3002.15.

Hong Kong's Hang Seng Index rose 0.4% to 23810.11 while Australia's S&P/ASX fell 0.8% to 4767.78, the lowest close since February 1.

Commodities: Oil steady, gold up
A rise in crude futures was checked as an increase in US oil stockpiles briefly turned traders' attention from Middle East unrest.

Wholesale inventories rose a more-than-expected 1.1% to a seasonally adjusted $US436.88 billion in January, its highest level since November 2008.

Light, sweet crude for April delivery settled 64USc lower at $US104.38 a barrel in New York after trading as high as $US105.92 a barrel.

Brent crude on the ICE futures exchange settled up $2.40 at $115.94 a barrel.

Gold futures rose as continued fighting prompted investors to reduce risk. The most actively traded contract, for April delivery, was up $US2.40 to $US1429.60 an ounce in New York.

Currencies: Swiss franc shines
The Swiss franc was the best performer in a volatile trading session after a report showed inflation accelerated last month. Meanwhile, traders continued to favour safe havens amid the violence in Libya.

The euro and US dollar were both down sharply against the franc in New York trading. The euro was at 1.2935 francs, down from about 1.3007 francs late on Tuesday. The dollar was at 0.9293 franc from about 0.9355 franc.

The euro traded at $US1.3927 from $US1.3899 late on Tuesday. The dollar was at ¥82.64 from ¥82.69. The UK pound was at $US1.6215 from $US1.6157.
 

Nevil Gibson
Thu, 10 Mar 2011
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Wall Street stocks waver on oil uncertainty
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