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Market Update : 
Stubborn Oil Price Keeps Market in Check
Author: 123jump.com Staff
123jump.com
Last Update: 5:31 PM ET September 08 2005


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After trading for the most of the day in negative zone, all three averages closed lower. The market got its first glimpse of the decline in crude oil, gasoline and distillate inventories. The smaller-than-expected decline in inventories led oil to drop initially only to rebound as sellers were few. Hovnanian forecasted lower profit in 2006 driving home builder segment lower and Sears Holdings reported earnings below the consensus forecast.

 
Asian-Pacific benchmarks closed mixed on declining crude-oil prices to a three-week low. The Nikkei shed 0.56% as investors sold steel, bank and real estate issues, the central bank said that it would keep monetary policy and national elections approached. Across the region Hong Kong’s Hang Seng lost0.38%, while South Korea’s Kospi reached a record high, rising 0.2% on interest-rate hikes speculations. The dollar bought 110.40 yen.

European markets finished the trading session mixed on weak U.S. stocks and mixed earnings reports, including declining building-materials maker Lafrage and gaining luxury retailer PPR. The German DAX 30 added 0.09%, the French CAC 40 lost 0.45%, and London’s FTSE 100 slipped 0.47%.

ENERGY, METALS, CURRENCIES

Crude oil prices started rising ahead of U.S. data, expected to show a sharp decline in crude and product stocks. Light sweet crude after trading up and down and then up, settled up 12 cents to $64.49 a barrel. London Brent climbed 65 cents to $63.54.

To read Weekly Petroleum Report, please click here.
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