In the wake of the massive earthquake in Japan, markets worldwide took a hit to the 
commodity and equity markets. Oil prices declined by $3 a barrel and U. S. crude prices falling below $100. The downfall is not expected to deeply decline due to the major cities and manufacturing companies were not affected by the earthquake.
Authorities are still assessing the damage caused by the quake that killed hundreds of people and the missing are still unaccounted for. Analysts who are reviewing the images taken of the devastation did not suggest that a major economic and financial disaster occurred at this time.
"The earthquake is clearly risk-negative, and you have seen continuation of selling that has been going on all week. But there are plenty of other things to make the world unhappy," said Nick Moore, RBS global head of commodity and strategy.
Shares in the European markets dropped to an, already, three month low. Losses in the U. S. stocks were only limited due to data from the U. S. Commerce Department, which focused on strong consumer spending and accelerated growth measured in the first quarter. Sales in retail rose 1.0 percent as American shoppers purchased autos, clothing, and other goods as the price of gas still rose.
The Dow is down 24.15 points (0.20%) at 11,2960.Standard & Poor’s 500 Index is up 0.52 (0.04%) at 1,295.63. The Nasdaq Composite Index was down 6.24 points (0.23%) at 2,694.78.
"You have huge global macro events happening and everybody is focused on these events. You have had almost this perfect storm over the past two days," said Cort Gwon, chief strategist at HudsonView Capital Management in New York.
Gold prices remained stable due to 'safe-haven' gold purchases as a result of the recent mid-east crisis.
Image credit: 2010StockExchange
Article comments
1 - Glenn Contrarian
A year or so ago the Republican governor of Louisiana said that we needed to end funding of volcano monitoring...and not long after, Mount Redoubt in Alaska erupted and many flights had to be rerouted to avoid the ash - and one plane temporarily lost its engines. And the nation had a bit of a laugh at the LA governor as a result.
So did the Republicans learn their lesson? Apparently not, because in the new budget proposal by the House Republicans, contained within that budget are these cuts:
NOAA: The agency with primary responsibility for warning Americans about natural disasters like tsunamis and hurricanes would lose more than $117 million in funding, including $99 million in cuts to its Operations, Research, and Facilities activites.
U.S. Geological Survey: The agency that monitors earthquakes and other seismic activities will see more than $7 million cut from its Surveys, Investigations, and Research budget.
Some people just never, ever learn....
2 - Ruvy
Your government's profligacy, Glenn, will make you all blind as well as stupidly dependent on the good will of fools.
Don't waste your time on partisan sniping, Glenn. Republicans and Democrats together have brought you all to the edge of the disaster you are on. Until you can recognize that unpleasant fact you will continue to fight like drunken dogs - until you manage to become totally exhausted and events overtake you and wipe you from the face of the earth.