US markets

U.S. stocks fell for a second straight session as investors dumped shares of Hewlett-Packard and oil continued higher on concerns over Libya. The Dow Jones Industrial Average dropped 90 points, or 0.7%, to 12123 in Wednesday afternoon trading, dragged down by an 11% tumble in H-P shares, which accounted for the bulk of the declines in the blue-chip Dow. Also weighing were Caterpillar and 3M, which were off 2% and 1.9% respectively.

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The Standard & Poor's 500-stock index fell seven points, or 0.5%, to 1309, while the tech-heavy Nasdaq Composite fell 28 points, or 1%, to 2728. Oil prices climbed as investors fretted about political turmoil in Libya disrupting crude supplies from the North African nation. As a result, energy stocks led the broader indexes. Chevron added 2.3%, and Exxon Mobil gained 2.3% to lead Dow components. The two oil giants are the two strongest performers among Dow components so far this year, up 12% and 20%respectively. The top 11 performers on the S&P 500 were all energy players, with Cabot Oil & Gas up 11%, Range Resources adding 7% and Chesapeake Energy up 6.9%.

H-P's plunge came after the technology giant posted a 16% quarterly profit increase but surprised with weak revenue growth, dragged down by lower personal-computer sales to consumers. The world's largest technology company by revenue posted sales declines in two of its biggest businesses: personal computers and technology services. It also lowered revenue forecasts for the rest of its fiscal year, even as it raised profit targets.

European markets

European stocks fell sharply Wednesday, as investors continued to worry about the political turmoil in Libya, with shares of Austrian energy firm OMV AG posting particularly steep losses. The Stoxx Europe 600 index slipped 1.1% to 282.38, marking a fourth straight day of declines for the benchmark. Oil prices continued their rally on fears the unrest in Libya will disrupt supplies flowing from the oil-rich nation. In Austria, shares of OMV fell nearly 6% after the company said it expects a temporary reduction of production in Libya but wouldn't rule out a complete stoppage. Libyan oil accounted for 10% of OMV's total production in 2010. Meanwhile, two of Europe's biggest energy companies--Spain's Repsol YPF and Italy's Eni SpA--have halted operations in Libya. Shares of Repsol fell 0.6% in Madrid, while Eni lost 1.2% in Milan. The German DAX 30 index fell 1.7% to 7,194.60. Auto stocks came under pressure in Germany after prior-day gains related to a German newspaper report that Scania AB could be seeking to take over truck maker MAN SE. Shares of Volkswagen fell 4%, while BMW AG tumbled 3.5% and Daimler AG fell 3.3%. MAN shares ended down 1.1%, with Scania falling 1.3% in Sweden. In Paris, the CAC 40 index lost 0.9% to 4,013.12. Shares of Accor SA fell 3.7%, after the hotel group swung to a 2010 profit of EUR3.6 billion and reported a recovery in nearly all of its markets. Analysts at Deutsche Bank said that Accor's management was still vague on certain ambitions. In London, the FTSE 100 index retreated 1.2% to 5,923.53, as packaging group Rexam PLC fell nearly 6% after the company reported 2010 results. Analysts noted the shares had a strong run ahead of the results.

Asian markets

Hong Kong shares declined Wednesday as some property developers ended lower after a roller coaster ride following government proposals to increase land supply, while Japanese stocks were weighed down by the yen's strength against the U.S. dollar. The Hang Seng index ended 0.4% lower in Hong Kong and the Nikkei Stock Average dropped 0.8% in Tokyo, while South Korea's Kospi lost 0.4% and Taiwan's Taiex gave up 1.7% Investor sentiment in the region was muted after the Dow Jones Industrial Average shed 1.4% Tuesday, and as there were no signs of an end to the Libyan political crisis. Ranking among the gainers, China's Shanghai Composite index rose 0.3%. After changing direction a few times, most major Hong Kong property developers ended lower, in the wake of Financial Secretary John Tsang's annual budget speech. Tsang said Hong Kong's economy grew 6.8% in 2010, exceeding the government's earlier forecast of 6.5% and he expects the economy to grow 4%-5% in 2011. However, he added that the government will increase the supply of land for sale in 2011, putting 18 new sites up for sale in the financial year starting Apr. 1, compared with 10 sites in the current financial year. Shares of Sun Hung Kai Properties dropped 0.7% and Cheung Kong Holdings gave up 1.3%, while Henderson Land Development Co. dropped 0.4%. Japanese stocks were pressured lower with the yen's recent strength, hurting exporters. Canon Inc. fell 1.6% and Honda Motor Co. lost 1.8%. Shanghai stocks fluctuated during the session, before ending higher amid hopes for upbeat earnings for 2010. Shanghai Fosun Pharmaceutical Group Co. rose 1% and Chongqing Brewery Co. rose 0.6%.

Base metals

Copper closed lower for the seventh consecutive day on the London Metal Exchange Wednesday, its near-term prospects rattled by fears that rising oil prices may undermine the global economic recovery, market players said. At the PM kerb close, LME three-month copper was down 1.6% at $9,425 a metric ton, after hitting a four-week low of $9,375/ton in earlier trade. Oil futures touched $100 a barrel for the first time in more than two years Wednesday, boosted by violent unrest and supply disruptions in Libya. Light, sweet crude for April delivery briefly touched $100 a barrel exactly on the New York Mercantile Exchange. The last time the contract hit that level was Oct. 2, 2008, as crude prices were tumbling from record highs and the economic recession began to set in. Oil prices quickly pulled back from the $100 mark, and the contract settled $2.68 higher at $98.10 a barrel, still a fresh high. Gold futures locked in their fourth consecutive day of gains as instability in the Middle East curbed investor appetite for riskier assets. The most actively traded contract, for April delivery, settled up 0.9%, or $12.90, at $1,414.00 a troy ounce. The thinly traded February-delivery contract settled up 0.9%, or $12.90, at $1,413.40 a troy ounce. Thursday is the February contract's last trading day.

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