US markets close lower for 4th consecutive session

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BSE | NSE 07/06/11

The US markets closed lower for the fourth-consecutive trading session, led by weakness in banks and energy, as investors turned cautious over a slowdown in the recovery.
The Dow Jones Industrial Average closed at 12,089.96, down 61.30 points or 0.50%. The NASDAQ Composite fell 30.22 points or 1.11%, to end at 2,702.56 and the SP 500 Index lost 13.99 points or 1.08%, to close at 1,286.17.
Robert Sluymer of RBC Capital Markets said, “Critical point here is somewhere between 1250 and 1260 – that’s really the next key support level in the market. That’s roughly around the 200 DMA.at technical levels are going to increasingly come into play as managers try to manage downside risk, simply by using technical levels on the SP. If we look at the 1295 level, that was violated today (Monday).”
The European markets fell for fourth straight session as investor confidence faltered on the slowing pace of global economy. European equities remained under pressure on expectations that ECB may signal a July rate hike.
The euro faltered versus the dollar after two days of gains, pressured by a German official’s comment that a second Greek bailout was not yet certain. The chairman of the euro zone finance ministers said the currency was overvalued.
Oil slips below USD 100 a barrel on expectations that OPEC will raise production targets this week and on continuing concerns about high prices curbing oil demand.
Copper gains, buoyed by a softer dollar following weak economic data out of the United States and output disruptions in producer Chile.
Gold rises to its highest levels as fears of a slowing US. Economy and expectations that Federal Reserve monetary policy would remain easy prompted safe-haven demand.    www.bgocled.com

IEA says gas entering golden age

07

7 June 2011
Last updated at 03:30 ET

Getting gas from rocks is relatively easy, but there are still environmental concerns

Increasing gas supply and demand for the fuel could set off a “golden age of gas”, the International Energy Agency (IEA) said.

The IEA report showed that demand for gas could outstrip coal by 2030, and get close to demand for oil by 2035.
The agency points to the uncertain future of nuclear energy as one of the main reasons for gas becoming so popular.
The IEA said that growth in the sector would be led by China and the US.
“Ample supplies, robust emerging markets and uncertainty about nuclear power all point to a prominent role for gas in global energy mix,” the IEA said in a report.
Main drivers
China is endeavouring to use cleaner forms of fuel in the coming years and that is likely to increase the demand for gas substantially.
“Worldwide, 16 of the 20 most polluted cities are in China, largely related from coal power plant production,” said Fatih Birol of the IEA.
“For this reason, China is pushing for gas to replace a lot of coal power production,” he added.
Mr Birol added that China currently uses nearly as much gas as Germany, but given the growth potential, its consumption may exceed that of the entire European Union by 2035.
As for the demand from the US, the IEA said that 60% of the country’s coal power plants are expected to be retired in the next 20 years.
“There is a strong chance that a large proportion (of those coal mines) will be replaced by gas,” said Mr Birol.      www.bgocled.com