May 10 (Bloomberg) —
Commodities sank, with gasoline falling the exchange limit, U.S. stocks slid and the dollar rose as concern over Europe’s debt crisis deepened and inflation reports spurred speculation global interest rates will rise.
The Standard & Poor’s GSCI Index of 24 raw materials plunged 3.7 percent at 3 p.m. in New York following a two-day rebound from last week’s 11 percent rout, its worst since 2008. Oil and gasoline extended declines as government data showed increases in U.S. supplies. The S&P 500 lost 1.3 percent, breaking a three-day winning streak, as commodities producers led the retreat. Treasuries rose, sending 10-year yields toward their lows of the year, after stronger-than-forecast demand at an auction. The euro weakened 1.5 percent to $1.4199 amid concern leaders are reluctant to provide more aid to Greece.
The pound rallied as Bank of England Governor Mervyn King said inflation remains “uncomfortably high” and officials signaled they may raise rates later this year. Reports showed growth in prices in Germany and China topped estimates and Poland unexpectedly increased its benchmark rate. Concern about Europe’s debt crisis and higher borrowing costs damped enthusiasm for stocks even as companies from Macy’s Inc. (M) to A.P. Moeller-Maersk A/S, owner of the largest container line, posted improving earnings and U.S. exports climbed to a record.
“Investors need to get ready for an environment of higher global rates,” said Stanley Nabi, New York-based vice chairman of Silvercrest Asset Management Group, which oversees $9.5 billion. “This happens every time you have an economic recovery,” he said. “The dollar is still the prime haven.”
Oil, Gas
Oil for June delivery slid 4.7 percent to $98.96 a barrel in New York, extending declines after the U.S. Energy Department said stockpiles rose 3.78 million barrels. June gasoline futures sank as much as 9 percent to $3.0771 a gallon after unexpected growth in inventories and amid speculation prices rose too high without confirmation that flooding on the Mississippi River will cut supplies. Silver lost 8.6 percent to $35.180 an ounce.
CME Group Inc. suspended trading of gasoline, crude and heating oil on the Nymex for five minutes starting at 12:06 p.m., said Laurie Bischel, a CME spokeswoman in Chicago. Trading was stopped after June-delivery gasoline fell 25 cents, the daily limit. Limits were widened to 50 cents a gallon for gasoline and heating oil and $20 a barrel for crude.
All but three of the 24 commodities tracked by the S&P GSCI Index declined. The gauge had climbed 5.1 percent over the previous two days.
Rally Halted
U.S. stocks retreated after the S&P 500 capped its first three-day rally in two weeks. Freeport-McMoRan Copper & Gold Inc. (FCX) and Chevron Corp. (CVX) dropped at least 2.3 percent. Walt Disney Co. (DIS) fell 5.5 percent as the world’s biggest theme-park operator reported quarterly profit that missed estimates. Macy’s Inc. jumped 7.1 percent as the retailer beat its sales forecast and doubled its dividend and Intel Corp. (INTC) gained 1 percent after boosting its dividend by 16 percent.
Treasuries advanced after the $24 billion in 10-year notes sold today drew a yield of 3.210 percent, compared with the average forecast of 3.222 percent in a Bloomberg News survey of seven of the Federal Reserve’s 20 primary dealers. The bid-to- cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 3, versus an average of 3.10 at the previous 10 sales and 3.13 at the last offering.
The pound gained against 12 of 16 major peers, rising 0.7 percent versus the Swiss franc. The won appreciated versus all 16 major counterparts after South Korea’s unemployment rate fell by more than economists estimated.
The euro lost 1.3 percent or more against Taiwan’s dollar, the pound, yen and U.S. dollar.
Euro a ‘Laggard’
“It’s clear that the euro is a laggard now in this environment where risk is being cut back on tentatively,” said Daragh Maher, deputy head of global foreign-exchange strategy at Credit Agricole SA in London.
German Chancellor Angela Merkel said yesterday Greece needs to continue with budget cuts to deserve an extension of its rescue package. Greek unions kept ferries docked at ports, grounded flights and shut hospitals and schools today in renewed protests against Prime Minister George Papandreou’s plans to sell state assets and usher in more spending cuts.
The Stoxx Europe 600 Index gained 0.3 percent, paring an earlier rally of as much as 0.8 percent. Moeller-Maersk jumped 4.4 percent in Copenhagen and Bourbon SA (GBB), owner of the second- biggest fleet of supply and crew ships for the oil industry, rose 5.2 percent in Paris as sales increased.
South Korea’s benchmark Kospi Index of shares rallied 1.3 percent after the unemployment rate fell to a three-month low of 3.6 percent in April.
China’s Shanghai Composite Index slipped 0.3 percent as the inflation report raised concern that the government will tighten monetary policy.
Global Inflation
China’s inflation is spreading beyond food, signaling Premier Wen Jiabao’s strategy of quarter-point interest-rate increases every two months has yet to contain consumer prices. Clothing costs climbed 1.4 percent in April from a year earlier, the biggest gain since 1997, a statistics bureau report showed. Non-food inflation held at 2.7 percent, the fastest pace in at least six years, while overall consumer prices rose 5.3 percent.
Germany’s inflation rate jumped to 2.7 percent, more than initially estimated, data released today showed. The Bank of England’s King told reporters in London today that inflation “remains uncomfortably high and well above the 2 percent target. And there is a good chance that, if utility prices rise further later in the year, inflation will reach 5 percent.”
http://whyzn919.blogspot.com/2010/03/lss.html
Arufu之家 
