US stocks and bonds slip; oil up



REUTERS

Published — Tuesday 29 January 2013

Last update 29 January 2013 5:18 am

| نسخة PDF Print News | A A

NEW YORK: US stock indexes were under pressure, following the trend elsewhere in the world, though oil prices rose on strong US durable goods data and earnings results from Caterpillar.
Investor optimism got a small boost after rating agency Fitch scaled back the chance it will strip the US of its AAA status, saying a recent deal on the country’s debt limit
removed the near-term risk of a cut.
In commodity markets, Brent oil prices steadied near a three-month high at just over $ 113 a barrel before the Fed meeting on Tuesday and Wednesday and US employment data on Friday expected to show more signs of recovery in the world’s biggest oil consumer.
US light sweet crude oil rose 42 cents, or 0.44 percent, to $ 96.30 per barrel.
Prices for US Treasuries slid after a gauge of planned US business spending rose in December and investors pushed for price concessions ahead of a debt auction later in the day.
But there was wariness in anticipation of a series of significant US economic events this week, including the initial estimate of fourth-quarter GDP, the US Federal Reserve’s
first policy meeting of the year and January payrolls data.
“You can’t find more of a global bellwether than Cat, and people are pleased with the number, which suggests there could be less concern about slowing growth in China after this,” said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.
The Dow Jones industrial average was down 0.23 points, or 0.00 percent, at 13,895.75. The Standard & Poor’s 500 Index was down 0.48 points, or 0.03 percent, at 1,502.48.
The Nasdaq Composite Index was up 11.62 points, or 0.37 percent, at 3,161.33.
“Markets don’t go up in a straight line,” said Garry Evans, global head of equity strategy at HSBC In London.

“I think that people are realizing there could still be problems out there.”
Adding to potential pitfalls ahead were signs from Washington that the $1.2 trillion in automatic spending cuts due to take effect by March 1 could go ahead, threatening a hit to confidence in the giant US economy.
Fitch said a downgrade was still likely later in the year if Washington failed to use the new breathing space to put in place a credible debt reduction plan.
A strong start to the earnings season has boosted US equities, with major averages rising for four straight weeks.
The S&P has gained for eight straight days, its longest winning streak in eight years.
But MSCI’s benchmark world share index was down 0.2 percent on Monday after a nearly 4.5 percent gain this month on signs of economic recovery in the US, stabilization in the euro zone and accelerating growth in China.
European stocks slipped 0.1 percent, with the broad FTSEurofirst 300 index of top company shares hovering just under a two-year high.
The market’s softer tone also followed a weaker session in Asia, where falls in technology companies caused MSCI’s broadest index of Asia-Pacific shares outside Japan to drop 0.5 percent.
Data from the European Central Bank gave another reminder that the recent surge in financial markets is not being matched in the real economy.
Lending by banks to euro zone companies, consumers and home buyers contracted in December for the eighth straight month as recessions across much of the region sap the appetite to borrow and banks’ willingness to lend.
“As of the end of 2012, there was no sign of improvement in credit flows,” said Marie Diron, an economist who works on Ernst & Young’s euro zone forecasts in London.
Data showing inflows to global equity funds slowed in the past week and comments from several major investment banks noting signs that the market may be reaching a natural top added to the caution.
US Treasury debt prices were lower. The benchmark 10-year US Treasury note was down 10/32, the yield at 1.9846 percent.
The euro was little changed against the dollar at $1.3457, though slipping from an 11-month high touched on Friday.
The prospects of a member country being forced to leave the euro zone have all but vanished since the middle of last year, a survey showed.
The dollar was down 0.2 percent against the yen after the US home sales data, though the Japanese currency is expected to remain weak on expectations Japan’s government will keep pushing for aggressive monetary easing, whereas the Fed’s view could change if the economic recovery strengthens.

What's happening around Saudi Arabia

RIYADH: The Ministry of Education (MoE) has allocated over 180 clinics for schools in Riyadh and directed all its departments across the Kingdom to recruit health advisers at schools with more than 100 students.Work has already started on introducing...
RIYADH: The Moroccan experience in desert tourism is largely similar to that of Saudi Arabia, which boasts of a unique diversity in culture in its different regions, Prince Sultan bin Salman, president of the Saudi Commission for Tourism and National...
JAZAN: Deputy Crown Prince Mohammed bin Salman visited the advanced field hospital of the Armed Forces in Jazan on Tuesday.He was reassured about the injured in the ongoing battle. He conveyed the greetings of Custodian of the Two Holy Mosques King S...
JEDDAH: The planned “North Thunder” military exercise is a clear message to Iran and the countries in the region it supports that any hostile intentions and actions will be firmly dealt with, an expert has said.The military drill is scheduled to be h...
RIYADH: Syrian conjoined twins will be separated at the King Abdullah Specialist Children’s Hospital at the King Abdul Aziz Medical City (KAMC) in Riyadh on Sunday.According to a KAMC spokesman, the forthcoming surgery will be the fourth and final st...
JEDDAH: Education Minister Ahmed Al-Issa has issued an order to establish a department for school security. It will be be linked organizationally to the general supervisor of school safety and security at the ministry.According to the decision, schoo...
JEDDAH: From delivering mails for Saudi Aramco to captaining Saudi Arabian Airlines’ first flight to New York, Jazza Al-Shammari’s career story is unique.“I started my career as a postman with Saudi Aramco in 1959 and continued the primary studies at...
RIYADH: A team of the King Faisal Specialist Hospital & Research Center (KFSHRC) has identified a gene responsible for cardiomyopathy.Dr. Zuhair bin Nasser Al-Hasnan, KFSHRC medical genetics consultant, said the team conducted a study on a Saudi...
JEDDAH: The Pakistan Welfare Society (PWS) organized a free medical camp and discussion on health for women at the Pakistani Consulate recently.Doctors and specialists diagnosed patients and distributed free medicines to needy patients, and arranged...
JEDDAH: Yemen Vice President and Prime Minister Khaled Bahah has thanked Saudi Arabia for standing by his country during tough times.Speaking at the World Government Summit in Dubai on Tuesday, he said: “Our GCC brothers, particularly Saudi Arabia, s...
RIYADH: Saudi Arabia joined the rest of the world in intensifying public awareness on cancer with activities spread over the week supporting the global cause that aims to save millions of lives every year by raising awareness and education about the...
RIYADH: Chairman of ACWA Power International Mohammed Abu Nayyan thanked King Mohammed VI of Morocco for personally inaugurating Morocco’s first solar power plant, Noor1, built by an international consortium led by his company.“We were extremely priv...
RIYADH: The Ministry of Health is considering imposing an asset declaration as well as an absence of interest conflict testimony on its employees as a measure in fighting corruption.Health Minister Khalid Al-Falih made the announcement at a one-day f...
DAMMAM: Abdussalam Kanniyan, chairman of the International Indian School in Dammam (IISD), has been honored with the “Person of the Year 2015” award by Vatakara NRI Forum, a community group in the Eastern Province.The award was based on his outstandi...
RIYADH: Andrej Plenkovic, the leader of the European Parliament Foreign Affairs Committee delegation, on Tuesday hailed Saudi Arabia for its yeoman services in looking after the displaced Syrians in countries such as Lebanon, Jordan and Turkey.“We fu...

Stay Connected

Facebook