April 12, 2011
Import prices jumped in March due to high oil prices that have climbed since. The International Energy Agency is warning that $100 oil is incompatible with the expected pace of economic growth. In a sign of slowing global growth, US imports and exports both fell in February data that precedes the disaster in Japan and ongoing risk to the auto and electronics sectors. The demand-side view pushed oil down $3 to $106.
Alcoa's weak sales also weighed on oil as they did on the Dow which fell one percent to 12,263. Rates moved lower as flows moved into short Treasuries where the 2-year yield fell eight basis points to 0.74 percent. The dollar index fell 1/4 percentage point.