10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – Crude oil rose above $123 a barrel. Lafarge, BAT, Deutsche Boerse and Commerzbank gained after the earnings.

Global Markets Update

European markets closed higher before the afternoon sell-off in the U.S. sparked by rising crude oil prices and better than expected earnings from Lafarge, BAT and Deutsche Boerse. Switzerland and Germany market indexes led the gainers in the region.

UK factory output in March fell 0.5% and in Germany orders fell 0.6% and dropped 1.3% in the first quarter. Rising euro against the dollar crimped the order book in Germany. Transportation equipment output led the decline in the UK manufacturing.

Lafarge, the French cement maker rose 5% after it reported first quarter earnings of 150 million euros. British American Tobacco gained 3% after it reported earnings rise of 21% to 599 million pounds and 14% rise in sales. Unit volume of cigarettes rose 1% to 158 billion. Commerzbank first quarter profit declined 54% to 282 million euros. Deutsche Boerse added 2% after its first quarter net income increased to 304 million euros.

U.S. stocks wavered with a negative bias after one hour of trading. First quarter productivity rose at 2.2% across the economy and surged 4.1% in manufacturing sector. Cisco dropped a fraction after the earnings declined but sales rose in the latest quarter. Disney earnings rose 22% on 11% rise in revenue. An index of pending home resale fell in March as buyers find it difficult to get financing. Asian markets closed mixed and European markets edged higher.

U.S. stocks turned negative after the release of weekly crude oil inventory report and index of pending home sales. The crude oil inventories were slightly lower but the inventories of gasoline and distillate were unchanged at the end of the last week. An index of pending home sales in March fell on difficult lending conditions.

UK market index edged higher in a day of mixed trading. UK manufacturing declined in March after rising in February. The index that tracks factory output fell 0.5% in March after rising 0.4% in February. Sharp decline in transportation equipment in the month led all categories in the manufacturing industries. BAT, the cigarette maker reported 14% rise in sales to £2.54 billion and earnings gain of 21% to £599 million. Global sales unit volume rose 1% to 158 billion cigarettes.

Shanghai and Hong Kong stocks fell after the worries on global economic health resurfaced. Rising crude oil prices and falling import of copper played in the trading sentiment. Crude oil surged above $122 a barrel dragging stocks of oil refiners and marketers. China restricts the price companies can charge. China also increased regulatory oversight on management incentives given to listed companies.

Stocks in Japan advanced as rising crude oil prices topped $122 per barrel on further supply disruptions in Nigeria and elevated crude oil demand in the U.S, China and India. After the close, U.S. reported in its weekly oil inventory report a decline in Crude oil import by less than 5%. China, India and the U.S. continue to import crude oil at elevated level, despite crude oil trading record price of $122 a barrel. Average gasoline price at pumps in Japan rose nearly 6 yen in a week and reached 159.20 yen as Japan added 25 yen per liter tax.

European Markets indexes

In London FTSE 100 Index closed higher 45.80 or 0.74% to 6,261.00, in Paris CAC 40 Index increased 34.39 or 0.68% to close at 5,075.31 and in Frankfurt DAX index higher 59.15 or 0.84% to close at 7,076.25. In Zurich trading SMI increased 95.49 or 1.27% to close at 7,639.16.


North American Markets indexes

Dow Jones Industrial Average fell 206.48 or 1.60% to a close of 12,814.35, S&P 500 closed down 25.69 or 1.65% to 1,418.26, and Nasdaq Composite Index declined 44.83 or 1.72% to close at 2,438.48. In Toronto TSX Composite closed down 43.20 or 0.30% to 14,371.10.

Of the 30 stocks in Dow Jones Industrial Average, 4 closed higher, 26 closed lower, and none was unchanged.

AIG led the decliners in the Dow Jones index with a fall of 5% followed by losses in American Express of 4.3%, in Citigroup of 4%, in General Motors of 3.6% and in JP Morgan of 2.9%. Walt Disney Company led gainers in the index with a rise of 2.8% followed by rises in IBM of 0.9% and in Merck of 0.85%.

Of the stocks in S&P 500 index, 69 stocks increased, 429 declined, and 2 were unchanged. Of the stocks in the index, 75 stocks fell more than 3% and 3 gained more than 3%.

Cognizant led decliners in the S&P 500 index with a loss of 11% followed by declines in D R Horton of 7.2%, in Countrywide Financial of 6.6%, in MBIA of 6.4% and in Janus Capital of 6.3%. Titanium Metals led gainers in the S&P 500 index with a rise of 11.2% followed by increases in Direct TV of 4.6%, in Pitney Bowes of 4.1% and in Anadarko Petroleum of 3%.

South American Markets Indexes

Argentina led decliners in the Latin American markets with a fall of 1.92% followed by decreases in Colombia of 1.84% and in Brazil of 1.66%, in Chile of 1.24% and in Mexico of 1.17%. Venezuela gained 0.1%.