* Global stocks slip after quake, tsunami slam Japan
* Yen recovers after knee-jerk reaction to earthquake
* Long-dated U.S. bond prices fall on Japan fears
* Oil prices slide after quake, tsunami slam Japan
(Updates prices)
By Herbert Lash
NEW YORK, March 11 (Reuters) - Japan's massive earthquake
and deadly tsunami pounded commodity and equity markets
worldwide on Friday, while lifting the yen on expectations
Tokyo will repatriate funds to pay for repairs.
Oil prices slid more than $3 a barrel, with U.S. crude
<CLc1> dipping below $100, while MSCI's all-country world
index of global stocks <.MIWD00000PUS> fell to a five-week low
after the biggest earthquake on record hit northeast Japan. For
details see: []
Japanese equity futures fell 3.3 percent, but market
players said the slide may not be too deep because major cities
and manufacturing facilities were not affected by the 8.9
magnitude earthquake and 10-meter tsuanami that killed
hundreds. []
While the full extent of damage was still being assessed,
analysts said the images and reports so far did not suggest a
major economic and financial disaster.
Metals prices skidded on worries about the quake's impact
on the world's third-largest consumer of commodities, as well
as on Chinese inflation data, which fueled concerns over demand
from the world's top consumer of metals. []
Chinese February inflation topped expectations at 4.9
percent and looked set to climb further in coming months,
adding to pressure for another dose of monetary tightening.
[]
North Sea Brent <LCOc1> fell $1.85 to $113.58, while U.S.
light sweet crude was off $2.75 at $99.95.
"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.
European shares dropped to three-month lows, reflecting an
increase in risk aversion, but losses in U.S. stocks were
limited as U.S. Commerce Department data pointed to strong
consumer spending and accelerated growth in the first quarter.
The pan-European FTSEurofirst 300 index <> of top
shares was down 0.8 percent.
U.S. retail sales rose 1.0 percent in February, posting
their largest gain in four months as shoppers stepped up
purchases of autos, clothes and other goods even as they spent
more for gasoline. []
News that U.S. consumer sentiment fell to its lowest level
in five months in early March as gas prices rose later took
some of the glow off the retail sales report. [].
The Dow Jones industrial average <> was down 24.15
points, or 0.20 percent, at 11,960.46. But the Standard &
Poor's 500 Index <.SPX> was up just 0.52 of a point, or 0.04
percent, at 1,295.63. And the Nasdaq Composite Index <>
was down 6.24 points, or 0.23 percent, at 2,694.78.
The yen gained against the dollar and the euro, buoyed by
expectations repatriated funds will flow in to pay for
repairing quake- and tsunami-caused damages. []
The yen recovered after an initial knee-jerk reaction to
sell the currency drove it to a two-week low against the
dollar. Analysts said it could stay choppy on near-term worries
about the impact on a shaky Japanese economy.
Gold slipped but was supported by the safe-haven buying on
the earthquake and investor concerns over unrest in the Middle
East. []
Global equity markets were rattled by worries about the
festering European debt crisis and Middle East unrest.
"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.
U.S. Treasury debt prices dropped on fears that Japanese
insurers may need to sell bonds to pay for damages.
[]
The benchmark 10-year U.S. Treasury note <US10YT=RR> shed
9/32 in price to yield 3.40 percent.
(Reporting by Chuck Mikolajczak and Karen Brettell in New
York; Jessica Mortimer, Ikuko Kurahone, Harpreet Bhal and
Pratima Desai in London; Writing by Herbert Lash; Editing by
Jan Paschal)
