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Market Update Analysis: 
Inflation, Home Price Declines Drag UK Stocks
Author: 123jump.com Staff
123jump.com
Last Update: 4:31 PM EDT May 20 2008


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Crude oil in London traded at t record high, sparking fears of rising inflation in the region. Crude oil prices have risen nearly 30% in the last three months when valued in the U.S. dollar and nearly 18% in euro. The prediction of higher crude oil prices put investors on the defensive. Commodities related stocks fell after a broker encouraged investors to trade out of the sector for now. BHP Billiton, Rio Tinto and Antofagasta fell on profit taking.

 
In Tokyo Nikkei 225 Index closed lower 109.52 or 0.77% to 14,160.09, in Hong Kong Hang Seng index decreased 572.77 or 2.23% closed to 25,169.46. In Australia ASX 200 index lower 41.30 or 0.69% to close 5,908.10. In Malaysia KL Composite index decreased 13.24 or 1.02% closed to 1,287.43.

In South Korea Kospi Index decreased 12.22 or 0.65% to close at 1,873.15, in Thailand SET index closed higher 3.49 or 0.40% to 873.82. Sensex index in India decreased 204.76 or 1.17% to 17,230.18. Market of Indonesia was closed today.

In London FTSE 100 Index closed lower 184.90 or 2.90% to 6,191.60, in Paris CAC 40 Index decreased 87.22 or 1.70% to close at 5,054.88 and in Frankfurt DAX index lower 107.44 or 1.49% to close at 7,118.50. In Zurich trading SMI decreased 152.35 or 1.96% to close at 7,626.58.
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