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Wall Street Defies China Concerns (Reuters)
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- China becomes world’s top oil importer (The Financial Times)
Wall Street Defies China Concerns (Reuters)Published: March 4, 2013 http://www.nytimes.com/2013/03/05/business/daily-stock-market-activity.html Stocks on Wall Street rose modestly on Monday as investors kept up a recent trend of buying on dips, with equities recovering from early weakness despite concerns about growth and China’s housing market. The Standard & Poor’s 500-stock index ended the day up 0.5 percent, the Dow Jones industrial average added 0.3 percent and the Nasdaq composite index rose 0.4 percent. The S.&P. 500 has jumped about 7 percent so far in 2013 and has resisted calls for a pullback even though there are few catalysts to drive shares definitively higher. The Dow closed less than 40 points away from hitting its closing high, while the S.&P. 500 was 3 percent below its record close. Concerns about budget cuts in the United States and the euro zone debt crisis also have served as reasons for investors to take a breather in the face of technical resistance. Any sign that the $85 billion in cuts were beginning to take a toll on the economy could jostle markets. “The stock market still represents opportunity for investors, especially when you look at the domestic market,” aid Eric Teal, chief investment officer at First Citizens Bancshares in Raleigh, North Carolina, which manages $5 billion, “but it wouldn’t be surprising if we pulled back on the concerns over China and Europe.” Retail stocks ranked among the strongest after Deutsche Bank raised price targets on Target and Macy’s . Target climbed 3.6 percent and Macy’s shares rose 2.4 percent. The S&P retail index jumped 1.3 percent. Bucking the trend was J.C. Penney, which is struggling to compete against its rivals, falling 4.6 percent. Plans to tighten curbs on the housing market in China and a slowdown in the growth of that country’s services sector prompted worries about growth in the world’s second-largest economy. In addition, China’s services industries expanded at the slowest pace in five months in February. Also weighing on the market, Italy could be inching closer toward another election within months after center-left leader Pier Luigi Bersani issued an ultimatum to anti-establishment 5-Star Movement boss Beppe Grillo to support a new government or return to the polls. European market indexes closed mixed. Providing some support for the market, Janet Yellen, the Federal Reserve’s influential vice chairwoman, said the central bank’s aggressive monetary stimulus is warranted, given how far below its full potential the economy is operating. Hess shares rose 4.1 percent after the company said it would exit its retail, energy marketing, and energy trading businesses. The company also boosted its dividend by 150 percent and announced a stock buyback program. Ferro shares surged 31.2 percent after A. Schulman offered to buy the company for $563 million, although Ferro rejected the bid. China becomes world’s top oil importer (The Financial Times)By Javier Blas, Commodities Editor Last updated: March 4, 2013 http://www.ft.com/intl/cms/s/0/d33b5104-84a1-11e2-aaf1-00144feabdc0.html#axzz2McFOPVkZ China has overtaken the US as the world’s largest net importer of oil, in a generational shift that will shake up the geopolitics of natural resources. US net oil imports dropped to 5.98m barrels a day in December, the lowest since February 1992, according to provisional figures from the US Energy Information Administration. In the same month, China’s net oil imports surged to 6.12m b/d, according to Chinese customs. The US has been the world’s largest net importer of oil since the mid-1970s, shaping Washington’s foreign policy towards energy-rich countries such as Saudi Arabia, Iraq and Venezuela. As China overtakes the US as the world’s leading net oil importer, Beijing is likely to face pressure to take a larger role in patrolling the world’s key shipping lanes. China has already taken a more assertive foreign oil policy in countries such as Sudan, Angola and Iraq, where state-owned Chinese companies have invested billions of dollars. “The US is taking strides towards energy independence,” said Eric G Lee, a commodities analyst at Citigroup who first reported the shift. Although December figures are often volatile due to end-of-the-year tax reasons, analysts and traders say the shift will continue, affecting global oil trade routers and the geopolitics of energy. The figures include crude and refined petroleum products such as diesel and kerosene. This year the US Navy will reduce the number of aircraft carriers it operates in the the Strait of Hormuz, which connects the Gulf to international oil markets. US domestic oil production is booming on the back of the shale revolution, reducing the need for crude oil imports. In addition, US super-majors and refiners such as ExxonMobil and Phillips 66 are exporting record quantities of oil products to meet soaring demand for gasoline, diesel and kerosene in Latin America and Africa, lowering the country’s net oil imports. US oil production surged last year by more than 800,000 b/d. The rise in domestic production has allowed the country to lessen its dependence on the Opec oil cartel. But the reduction has been uneven, with Saudi Arabia, Kuwait and other Middle East countries suffering relatively little from reduced US demand compared to African producers such as Angola and Nigeria. The shift between China and the US comes as the International Energy Agency, the western countries’ oil watchdog, forecast that emerging countries would for the first time consume more oil than industrialized nations . The Paris-based IEA forecast that non-OECD countries will consume 44.9m b/d next quarter, compared with 44.7m b/d for the OECD nations. The US remains the world’s largest net oil importer on an annual basis, but the margin over China has narrowed significantly over the last five years. The country’s net foreign purchases of crude and refined products dropped to a 20-year low of 7.14m b/d in 2012, while Chinese net oil imports averaged 5.72m b/d. Directory: 2013 2013 -> Annual InStructional unit plan 2013 -> The Ministry of Education and Science of Ukraine 2013 -> #1 a lifesafer of virginia inc 2013 -> Name(s): your name here team or Group #(if applicable): Professor’s name 2013 -> Alcott Local School Council (lcs) Meeting Minutes 2013 -> Table Of Contents introduction 2 2013 -> Supplemental demographic information 2013 -> 【Education&Working Experience】 Download 404.14 Kb. Share with your friends:
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