DJI - NEW YORK, March 21 (Reuters) - U.S.
stocks fell on Thursday as Oracle's revenue fell far short of expectations and
worries intensified about the effect of Cyprus' troubles on the euro zone.
Oracle Corp shares lost 9.7 percent to $32.30 and were the biggest drag on Nasdaq, a day
after its revenue disappointment, which it blamed on sales execution. It was the stock's biggest percentage drop since
December 2011.
Stock losses accelerated late in the
session as anxiety about Cypriot finances increased. Just before the U.S.
market's close, Standard & Poor's cut Cyprus' sovereign credit rating
deeper into junk status.
The European Union gave Cyprus until
Monday to raise the billions of euros it needs to get an international bailout
- or face the collapse of its financial system and likely exit from the euro
bloc.
"I think the realization is,
there isn't going to be a quick remedy to the situation, nor is it easy to
forecast what's going to happen. Uncertainty breeds selling, especially in a
market that's gone as far as we have in the previous two weeks," said
Michael James, managing director of equity trading at Wedbush Securities in Los
Angeles.
The latest euro-zone concerns hit
the market after weeks of gains that drove the Dow up to break record highs and
lifted the S&P 500 to within striking distance of its all-time record close
of 1,565.15.
Investors fear a collapse of the
banking system in Cyprus will tighten credit across Europe and become yet
another hurdle on the region's bumpy road out of economic crisis. Adding to
those fears, data showed the region's economy contracted more than expected in
March.
The Dow Jones industrial average slid 90.24 points, or 0.62 percent, to end at 14,421.49. The Standard &
Poor's 500 Index dropped 12.91 points, or 0.83 percent, to
finish at 1,545.80. The Nasdaq Composite Index lost 31.59 points, or 0.97 percent, to close at 3,222.60.
Oils - NEW YORK, March 21 (Reuters) - Crude
oil prices fell more than 1 percent on Thursday as Cyprus struggled to raise
enough money to qualify for a bailout and avoid a banking collapse, reviving
worries about the outlook for petroleum demand in Europe.
The European Union has given Cyprus,
the debt-laden Mediterranean island, until Monday to raise billions of euros it
needs to receive an international bailout or face the collapse of its financial
system and likely exit from the euro currency zone.
"Definitely, the euro zone
factors are weighing on crude," said John Kilduff, partner at Again
Capital LLC in New York.
Adding to concerns about Europe, the
euro zone's economic downturn has deepened in March - even before the Cyprus
crisis became acute - data from survey compiler Markit showed.
The problems in Europe and the
precarious situation in Cyprus countered support from more positive economic
data from the United States, where existing home sales and leading economic
indicators rose last month.
Brent May crude fell $1.25, or 1.15 percent, to settle at $107.47 a barrel, having traded as
low as $107.08.
U.S. May crude fell $1.05, or 1.12 percent, to settle at $92.45 a barrel, after falling as low
as $91.84. The U.S. April crude contract expired and went off the board on
Wednesday.
Brent's premium to U.S. crude fell
as low as $14.61 during the session, before ending at $15.02 based on the
contract settlements and narrowing the spread by 20 cents.
MIXED GLOBAL ECONOMIC DATA
Flash euro-zone manufacturing data
showed unexpected declines in March, driven by surprise weakness in the German
and especially French purchasing managers' indices (PMI).
Most responses in Markit's business
survey were received before Cyprus pushed the 17-nation currency bloc into
fresh turmoil and analysts said respondents may now be even more gloomy.
The Flash Eurozone Composite
Purchasing Managers' Index fell to 46.5 in March, lower than all forecasts in a
Reuters poll of 23 economists.
More supportive U.S. data released
later in the session did little to improve investor sentiment.
The number of Americans filing new
claims for jobless benefits edged higher last week, but a trend reading dropped
to its lowest in five years.
Business conditions in the U.S.
mid-Atlantic region rose to the highest level since September, according to a
survey from the Federal Reserve Bank of Philadelphia, and U.S. housing market
data also pointed to a recovery.
Chinese data also was viewed as
supportive to oil futures, as better-than-expected manufacturing figures
pointed to an improved fuel demand outlook in the world's second-largest oil
consumer.
"The Chinese data is better
than expected but it's not extraordinary," said Olivier Jakob, oil analyst
at Petromatrix in Zug. "Crude oil imports in China for the first two
months were lower than last year."
In China, the HSBC Purchasing
Managers' Index for March revived to 51.7 in March from 50.4 in February, but
remained below a two-year high of 52.3 reached at the beginning of the year.
The reading is consistent with
year-on-year GDP growth of around 8 percent, according to a Credit Agricole-CIB
analyst, above the 7.5 percent GDP growth target for 2013 released at China's
annual legislative session this month.
CBOT Soybean - Soybean futures on
the Chicago Board of Trade rose 2 percent, their biggest daily gain in a month, on technical buying and concerns about tight U.S. stocks, traders said.
* The benchmark May soybean contract broke through its 20-, 50-, 100- and 200-day moving averages, triggering chart-based buying.
·
Uncertainty
about U.S. old-crop soybean supplies ahead of USDA's
March 28 quarterly U.S. grain stocks report lent support.
·
Gains in
deferred soybean contracts capped by expectations for
expanded U.S. soy plantings in 2013. A Farm Futures Magazine survey
pegged U.S. 2013 seedings at a record 79.09 million acres.
·
Soyoil
futures supported by firming U.S. cash soyoil market
amid a slowing U.S. soy crush and continued demand from biodiesel
producers.
·
USDA
reported export sales of U.S. soybeans in the latest week at
107,800 tonnes for 2012/13 and 234,100 tonnes for 2013/14,
below trade expectations.
·
USDA put
soymeal sales at 143,400 tonnes and soyoil sales at 19,600
tonnes, both above trade expectations.
·
Brazilian
dock workers called off a national port strike set for
next week, following talks with the government over reform of
the country's ports, union leaders said.
·
Argentina's
agriculture ministry estimated the country's 2012/13
soybean crop at 51.3 million tonnes, slightly below USDA's figure of 51.5 million
ARGENTINA Soybean - BUENOS AIRES, March 21 (Reuters) -
Argentina's closing soy prices and trends on Thursday:
- In the main grains market of Rosario, soy closed mostly higher at 1,620 to 1,700 pesos ($318-$333) per tonne, compared with Wednesday's 1,640 pesos, buoyed by gains in U.S. soy futures and strong demand from local crushers, traders said.
- Trade volume was about 30,000 tonnes versus 15,000 tonnes in the prior session.
- Soybean futures on the Chicago Board of Trade rose 2 percent on Thursday, their biggest daily gain in a month, on technical buying and concerns about tight U.S. stocks, traders said.
- Rosario soy for delivery in May, which is quoted in U.S. dollars, closed up $10 at $325 per tonne.
- In the southern port of Bahia
Blanca, where no official price was listed on Wednesday, soy ended at
1,600 pesos per tonne.
Argentina has approved another 2 million tonnes
of 2012-13 corn exports, a leading grains industry group said on Thursday, in
news that boosted late spot trading in corn in Rosario.
BMD CPO - KUALA LUMPUR, March 21 (Reuters) -
Malaysian palm oil futures ended off their highest in more than three weeks on
Thursday after refiners took advantage of a cheap local tax rate to boost crude
palm oil purchases.
Crude palm oil from No.2 producer
Malaysia is currently cheaper than products from top producer Indonesia, thanks
to an export tax levied at 4.5 percent, compared with Indonesia's 10.5 percent.
Malaysian palm oil exports rose by
up to 14 percent in the first 20 days of March, but investors are wary that
rising prices could lead to a tax hike in May and weigh on demand. Malaysia
sets its export tax on crude palm oil each month based on prices. April's tax
rate has been set at 4.5 percent.
Investors are also concerned that an
import duty hike in India, the world's biggest edible oil buyer, will crimp
future demand, traders said.
"Although the demand continues
to show signs of struggling, the increase in crude palm oil buying by local
refineries is suggesting for the most part everything is under control,"
said a trader with a local commodities broker in Malaysia.
By market close, the benchmark June
contract on the Bursa Malaysia Derivatives Exchange
had risen 0.5 percent to 2,455 ringgit ($787) per tonne, coming off an early
high of 2,477 ringgit, a level unseen since Feb. 25.
Total traded volume stood at 39,194
lots of 25 tonnes each, higher than the usual 25,000 lots.
Traders say an export duty hike for
the crude grade would turn buyers to refined palm products. Cargo surveyor data
showed that refined palm olein exports almost doubled between March 1 and 20,
offsetting weaker crude palm oil shipments and giving a leg up to overall
exports.
The higher exports of palm oil
products, alongside seasonally slowing output, would help to further ease
inventory levels in Malaysia, which have edged down to 2.44 million tonnes in
February from December's record highs.
In other markets, crude oil was
pushed lower on Thursday by fears of further turmoil in the euro zone, as
Cyprus scrambled to avoid bankruptcy, and by manufacturing data which showed a
deepening downturn in the currency bloc.
In other vegetable oil markets, U.S.
soyoil for May delivery rose 0.8 percent in late Asian trade. The
most-active September soybean oil contract on the Dalian Commodities Exchange also closed 0.8 percent higher.
Regional Equities - March 21 (Reuters) - Philippines and
Singapore stocks recovered on Thursday helped by a pick-up in Chinese factory
activity and a commitment by the U.S. Federal Reserve to its aggressive
stimulus stance, but others ended weaker weighed down by a Cyprus bailout plan.
Singapore gained 0.6 percent, recovering from the previous session's two week closing
low, led by a 3.5 percent jump in Singapore Telecommunications Ltd and 0.8 percent rise in top lender DBS Group Holdings Ltd
The Philippines stock index ended 0.8 percent firmer, snapping an eight-session falling streak led by a 3.2
percent gain in Philippine Long Distance Telephone Co
Vietnam ,
the region's best performer as well as its smallest bourse, gained 1 percent to
a one-month high on hopes of an interest rate cut in the near future after the
country's two largest cities reported falling consumer prices.
Thailand ended 0.9 percent weaker led by banks, extending the loss to 4.4 percent this
week, a day after Thai baht hit a 16-year high. Krung Thai Bank PCL,
which fell 6.4 percent, dragged the overall index.
Indonesia ended 0.6 percent weaker led by financials, while Malaysia edged down 0.05 percent, despite a $19.44 million foreign inflow.
