Broadgate: Market News 20/3
20 March 2012
A report at 8:30 a.m. New York time is likely to indicate that house building in the world’s largest economy climbed to a three-month high in February, yet another sign that the residential real-estate market is stabilizing. Housing starts increased to a 700,000 annual rate last month from a 699,000 pace in January, according to the median estimate of 80 leading economists. This would be the strongest reading since November’s three-year high of 702,000.
Data today may also show that UK inflation slowed for a fifth month. Metro may retreat after forecasting unchanged earnings this year because of slowing economic growth. Germany’s biggest retailer also reported a 13 percent decline in fourth-quarter profit. Tesco, the U.K’s largest retailer, may advance after ING raised its shares to hold from sell. Inditex, the world’s largest clothing retailer, might gain after its shares were raised to buy from hold at ING.
Oil dropped from the highest price in almost three weeks in New York amid signs U.S. crude supply is rising and speculation that Saudi Arabia may boost output. It dropped 0.5 percent in New York. Oil has advanced over this year due to concern that European Union and U.S. sanctions against Iran’s nuclear program will disrupt Mideast exports, leading to some importers seeking substitutes for crude they normally buy from Iran. Saudi Arabia boosted its output in January to the second highest level since at least 1980, according to the Joint Organization
Data Initiative. Increasing Saudi output as well as US stockpiles are seen as cushioning the supply concerns of Iran.
China, the world’s largest oil consumer after the U.S., increased gasoline and diesel prices for the second time in less than six weeks after crude gained last month the most in a year.
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