USA: Wall Street slides on economic worries; Oil slips from record $103

Record ID: 343418

  • Title: USA: Wall Street slides on economic worries; Oil slips from record $103
  • Date: 1st March 2008
  • Summary: NEW YORK MERCANTILE EXCHANGE (NYMEX) VARIOUS OF TRADERS ON THE NYMEX
  • Embargoed: 16th March 2008 12:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Finance
  • Reuters ID: LVAERGMH9W4VSJ7Z5QMI907HZL5L
  • Story Text: U.S. stocks fell on Friday (February 29) as another round of weak economic data added to U.S. recession fears and a record loss at insurer AIG underscored worries about more write-downs in the financial sector.
    The major indexes fell more than 2 percent and ended the month in the red for the fourth month in a row. It marks the longest string of monthly losses for the Dow and S&P 500 since 2002.
    Anxiety about the economy increased after a report said business conditions in the Midwest were the weakest in more than six years while a separate survey said U.S. consumer sentiment was at its lowest since 1992.
    The Dow Jones industrial average slid 315.79 points, or 2.51 percent, to end at 12,266.39. The Standard & Poor's 500 Index fell 36.96 points, or 70 percent, to 1,330.72 while the Nasdaq Composite Index closed down 60.09 points, or 2.58 percent, to end at 2,271.48.
    And as stocks fell, oil climbed on Friday (February 29), but fell from peaks above $103 a barrel as Turkey's withdrawal of troops from northern Iraq eased geopolitical tensions, clipping a fund-driven rally to new inflation-adjusted highs.
    President of Paramount Options, Ray Carbone said that it's likely that oil prices will continue to rise, both in the long and short terms.
    "I think it's a combination of the weak dollar, which shows no sign of getting any stronger anytime soon, geopolitical tensions anywhere you look in an oil producing region, the one that's driving it the most is probably the Turkish incursion into Iraq, we've had winter weather, so those three components have really pushed oil up to these levels over the last five years, particularly over the last 2 to 3 weeks where we have moved about $18.
    These are unprecedented types of moves and this is what the market is going to do at these high levels," said Carbone.
    U.S. crude settled down 75 cents at $101.84 a barrel after hitting a record $103.05 earlier in the session. London Brent crude settled 80 cents lower to $100.10 a barrel, off at all-time high of $101.27.
    A crush of cash from investors seeking a hedge against inflation lifted several commodities to new highs this week, with oil eclipsing the inflation-adjusted high of $102.53 reached in 1980 after the Iranian revolution.
    Further support came from supply disruptions, including export delays in Ecuador and a fire at a European natural gas terminal, before news of the Turkish withdrawal encouraged traders to take profits.
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