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Market Update Analysis: 
Metals and Oil Drop 5%
Author: 123jump.com Staff
123jump.com
Last Update: 5:02 PM EDT March 19 2008


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A sharp pullback in metals and commodities put stocks on the defensive. Front month futures of crude oil and gold dropped more than 5%, silver lost 8%, and copper declined 3%. Futures of the next month wheat led the agricultural with a decline of 7% followed by losses in Soybean and Cocoa of 6%. Dow, S&P 500, and Nasdaq lost more than 2.3%. Brazil plunged 5% and European markets edged 0.5% lower across the region.

 
In South Korea Kospi Index increased 33.48 or 2.11% to close at 1,622.23, in Thailand SET index closed lower 4.65 or 0.57% to 807.67 and Indonesia JSE Index edged decreased 16.23 or 0.69% to 2,323.57. Sensex index in India increased 161.37 or 1.09% to 14,994.83.

Bond Yields decreased for 10-year U.S. bonds and closed at 3.34% and on 30-year bonds declined to close at 4.22%.

Commodities, Metals, and Currencies

Crude oil decreased $4.94 to close at $104.48 a barrel for a front month contract, natural gas decreased 37 cent to $9.04 per mBtu, and gasoline futures decreased 10.00 cents to close at 256.00 cents per gallon.

Gold decreased $59.00 in New York trading to close at $945.30 per ounce, silver closed down $1.515 cents to $18.445 per ounce, and copper for front month delivery decreased 11.30 cents to 363.35 per pound.

Wheat futures decreased 90.00 cents in Chicago trading and closed at $10.74 per bushel. Sugar decreased 59.00 cent to 11.69 cents per pound. Soybean future closed down 50.80 cents to $12.57 a bushel.

Dollar edged higher and traded near a record low against euro to $1.5604 and edged lower against yen to 98.89.
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