Futures slipped for a third day and the USD rallied on the media hype concerning Greece and sovereign-debt.
The MSCI World Index dropped 0.5 percent at 7:22 a.m. in New York, marking its longest losing streak in six weeks. Futures on the Standard & Poor’s 500 Index retreated 0.7 percent. The dollar strengthened against 13 of its 16 most- traded counterparts. Greece’s ASE Index sank 3.5 percent and the premium investors demand to hold the nation’s 10-year notes instead of benchmark German bunds widened 25 basis points.

This reaction is excessive, dips today in Asia and what looks certain to be lower open on Wall St are a great opportunity for buying.

The Stoxx Europe 600 Index declined 1 percent while the MSCI Asia Pacific Index dropped 0.9 percent. Vedanta Resources Plc, the largest copper producer in India, led basic resources shares lower, falling 2.1 percent in London.

Royal Dutch Shell Plc slipped 1.2 percent after agreeing with PetroChina Co. to buy Arrow Energy Ltd. for A$3.5 billion ($3.2 billion). PetroChina Co., the nation’s biggest energy producer, declined 2.7 percent in Hong Kong.

India’s central bank raised interest rates for the first time in almost two years late on March 19, saying that controlling prices was imperative after inflation accelerated to a 16-month high.

The decline in U.S. futures indicated the S&P 500 may trim its third straight weekly gain. The Dow Jones Industrial Average snapped an eight-day winning streak on March 19 after India’s unexpected rate increase.

The Dollar Index, which tracks the currency against those of six U.S. trading partners, climbed for a third day, adding 0.2 percent. Government bonds gained, with the yield on the German bund falling 2 basis points to 3.09 percent. The yield on the 10-year Treasury note was little changed at 3.69 percent.

Credit-default swaps on the Markit iTraxx Crossover Index of high-yield European corporates climbed 14 basis points to 467, according to JPMorgan Chase & Co. Credit-swap gauges in Europe rolled into their 13th series today. New series of the benchmarks are created every six months when companies are added or dropped depending on their ratings, cost of protection and ease of trading.

Emerging Markets

The MSCI Emerging Markets Index dropped 1 percent for a third day of declines. South Korea’s Kospi Index and Taiwan’s Taiex Index fell 0.8 percent, and India’s Sensitive Index slid 1 percent. Russia’s Micex Index lost 1.2 percent and the ruble depreciated against the central bank’s target basket for the first time in a week, slipping 0.5 percent. The rand weakened 0.5 percent against the dollar in limited trading during a public holiday today.

Copper for delivery in three months fell 1.1 percent to $7,350 a metric ton on the London Metal Exchange, retreating for a third day. Rice added 0.8 percent to $12.80 per 100 pounds in Chicago. Crude oil for April delivery dropped 1.4 percent to $79.55 a barrel in New York trading, falling for a third day. The April contract expires today.

Shayne Heffernan www.livetradingnews.com

Posted by Shayne Heffernan on Mar 22nd, 2010and filed underLatest News, USA.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site