U.S. stocks

The energy sector led U.S. stocks lower Tuesday as crude-oil futures fell, while a host of U.S. economic data left investors feeling uninspired. The Dow Jones Industrial Average shed 46 points, or 0.4%, to 12222. Exxon Mobil led the measure's decline with a 2.1% drop. The oil giant said it added 3.5 billion barrels of oil equivalent, led by natural gas projects, to its proved reserves last year, replacing more than 200% of its production for 2010. Chevron slipped 0.6%, hurt by Exxon's announcement in addition to an Ecuadorian judge's order for the oil giant to pay $8.6 billion to clean up oil pollution in the country's rainforest.

The Nasdaq Composite fell 0.3% to 2809. The Standard & Poor's 500 index declined 0.3% to 1328, led by its energy sector. The declines followed data showing U.S. retail sales rose just 0.3% in January, smaller than the 0.6% rise economists had expected, while U.S. import prices rose much more than expected in January as costs increased for energy, food, and industrial supplies.

Other reports showed U.S. home builders stayed pessimistic this month, U.S. business inventories in December grew to their highest level in nearly two years, and New York manufacturing activity continued to expand in February but price pressures rose. Investors were particularly concerned by the rising price pressures in the New York area.

Among stocks in focus, NYSE Euronext fell 3.3% after the exchange company and Germany's Deutsche Boerse outlined plans for a combination that would create the world's largest exchange operator, but would face hurdles in winning support from regulators. U.S. shares of Barclays jumped 6.4%. The U.K. bank reported a 36% increase in 2010 net profit as loan impairments fell and its investment banking unit performed strongly.

European stocks

European stocks posted modest gains Tuesday as strong earnings from Barclays PLC and Danone SA helped investors look past lackluster economic data. The Stoxx Europe 600 index gained 0.1% to end at 289.44, inching past its highest closing level since September 2008 achieved Monday. Shares of Barclays climbed nearly 5%. Falling impairment charges for the year helped the U.K. lender beat earnings expectations, though it also said its return on equity a key measure of profitability won't return to pre-crisis levels.

The figures boosted the European banking sector. Shares of Credit Agricole SA rose 1.6%, Deutsche Bank AG rallied 2.5% and Lloyds Banking Group PLC rose 1.6%. Mining stocks moved lower across the board after inflation data from China. The January figures showed wholesale inflation rose at a faster than expected annual rate of 6.6%, while the consumer price index rose 4.9%, compared with expectations of a 5.4% rise. Among London-listed mining stocks, Antofagasta PLC dropped 3.3% and Xstrata PLC fell 2.4%. The losses weighed on the FTSE 100 index, which ended down 0.4% to 6,037.08. Shares of Danone rallied 3.3% in Paris after the food producer reported a 38% jump in full year net profit and 14% growth in sales, eclipsing analyst forecasts. The gain helped lift the French CAC 40 index 0.3% to 4,110.34. In Germany, the DAX 30 index climbed 0.1% to 7,400.04, largely shrugging off a smaller than expected 0.4% increase in fourth-quarter gross domestic product. Chemicals group BASF SE was among the top gainers in the Frankfurt benchmark, rising 1.8%, as it extended Monday's rally when it was named as one of Citigroup's most preferred stocks in Europe.

Asian markets

Asian markets ended mixed Tuesday, with Japanese and Taiwanese stocks rising on relief over milder than feared inflation data from China, while Hong Kong shares retreated amid worries that price pressures on the mainland will remain at elevated levels. Japan's Nikkei Stock Average rose 0.2% and Taiwan's Taiex added 0.4%.

In the other direction, Hong Kong's Hang Seng Index declined 1% and South Korea's Kospi dropped 0.2%. The Shanghai Composite itself ended little changed after moving in both directions in a choppy session, during which the benchmark index hit its best level in three months. The divergence came after data showed China's consumer price index rose 4.9% in January from a year earlier, above December's 4.6% rise but much lower than the 5.4% increase forecast by economists. Metal plays posted solid gains on mainland bourses, supported by Monday's strength in global metal prices. Jiangxi Copper climbed 3.2% and Aluminum Corp. of China added 4.3%. But financial stocks ended broadly lower as investors locked in recent gains, with Agricultural Bank of China sliding 0.8% and China Life Insurance dropping 0.9%. In Hong Kong, energy-sector shares declined after crude-oil prices ended below $85 a barrel in New York overnight, with PetroChina falling 1% and Cnooc losing 1.2%.

In Tokyo, relief over the softer than expected China CPI underpinned the market, but investors were reluctant to commit themselves after Monday's solid gains. Investors also largely shrugged off the widely predicted outcome of the Bank of Japan's policy meeting. GS Yuasa advanced 5.4% after the battery maker Monday raised its full year earnings outlook. Softbank rose 3.4% after The Wall Street Journal reported Apple is working on the first of a new line of less expensive iPhones.

Metal

Tin stood alone in positive territory at the London Metal's Exchange's kerb close Tuesday, but market players are starting to voice concerns over the metal's ability to sustain its recent upward momentum in the event of a sudden change in investor sentiment. While tin's rosy fundamental outlook remains unchanged, its near-term prospects are being undermined by the very buying that has raised it to current levels, noted market players. Tin peaked at $32,799 a metric ton earlier Tuesday, a gain of 22% since the start of the year and a record level for the metal, used in soldering. But while French bank Natixis recognizes a potential deficit of 16,000 tons this year, its average price forecast for tin in 2011 is $29,000/tons, well below the metal's closing price of $32,500/ton Tuesday. Copper fell 1.4% to close at $10,011/ton, after hitting a fresh record high of $10,190/ton earlier in the day. Like tin, market players are beginning to warn of a potentially steep correction in copper, if speculative buyers enticed by the metal's strong fundamental outlook are spooked by threatening economic conditions.

Oil futures

Oil futures fell to their lowest level in more than two months Tuesday as concerns about high U.S. crude supplies overtook worries of spreading unrest in the Middle East. Light, sweet crude for March delivery settled 49 cents lower at $84.32 a barrel. The contract hit an intraday low of $83.85 a barrel, the lowest trade since Dec. 1. A burst of safe haven purchases carried Comex gold prices to positive territory. The thinly traded February delivery contract settled up $9, or 0.7%, at $1,373.60 a troy ounce on the Comex division of the New York Mercantile Exchange. The most actively traded contract, for April delivery, settled up $9, or 0.7%, at $1,374.10 a troy ounce.