DJIA
slumped 1.3% to close at 12,419.9. NASDAQ shed 1.2% to settle at 2,837.4.
S&P 500 tumbled 1.4% to end at 1,313.3.
Nikkei
225 index is trading 1.8% lower at 8,474.6.
FTSE
100 tumbled 1.7% to settle at 5,297.3.
FTSEurofirst
300 index fell 1.5% to end at 975.7.
In
Asia, crude oil for July delivery is trading 0.2% or $0.18 lower at $87.64 per
barrel.
At
0400 BST today, the GBP is trading marginally lower against the USD at $1.5476,
marginally lower against the EUR at €1.2509, 0.3% lower against the JPY at
¥121.84.
US Market
Snapshot
US
markets fell sharply yesterday, erasing most of the previous session gains, on
disappointing domestic housing data and as rising bond yields in Spain and
Italy increased concern the debt crisis is spreading. Research In Motion
slipped 7.8%, as it forecasted an unexpected operating loss for the fiscal
first-quarter. Nabors Industries, Quicksilver Resources, Denbury Resources and
Rowan tumbled between 3.9% and 6.2%, as oil prices fell to a 7-month low on
weak demand prospects. Alcoa, FedEx and Chevron declined between 2.3% and 3.5%,
amid concerns about the global economic outlook, while Caterpillar lost 2.5%,
as it agreed to dispose a distribution-and-support business in South Africa and
Botswana. Medical-device maker, Synergetics USA plunged 28.1%, as its
preliminary third-quarter results trailed market expectations.
DJIA
slumped 1.3% to close at 12,419.9. NASDAQ shed 1.2% to settle at 2,837.4.
S&P 500 tumbled 1.4% to end at 1,313.3.
Asian Market
Snapshot
Asian
markets are trading lower this morning, taking cues from overnight losses on
Wall Street, amid concerns about deteriorating situation in Europe and weak
Japanese economic data. In Japan, Hitachi Construction Machinery and Komatsu
lost values on a report that Japan’s industrial output rose less-than-expected.
In Hong Kong, Agricultural Bank of China traded lower, on news that it’s
Vice-President is under investigation by the Communist Party's discipline
authorities. Retailer, Pou Sheng International paced decline after the company
posted a loss for the six months ended in March. In South Korea, refiners, SK
Innovation and S-Oil, paced lower, in line with a fall in crude oil prices.
Nikkei
225 index is trading 1.8% lower at 8,474.6. Hang Seng index is trading 1.2%
lower at 18,471.8 while the Kospi index is trading 1.3% lower, at 1,820.9.
UK Market
Snapshot
UK
markets fell sharply yesterday, as a surge in benchmark yield at an auction of
Italian debt and concerns about the viability of Spanish banks fuelled concerns
of contagion in the euro area. Among miners, ENRC, the top decliner of the FTSE
100 index, tumbled 6.6%, while Antofagasta, Rio Tinto, Kazakhmys and Vedanta
Resources declined between 3.9% and 5.4%, as base metal prices fell, after
China dampened speculation for a massive stimulus to boost the country’s
economic growth. Lloyds Banking Group and Royal Bank of Scotland dropped 2.3%
and 3.0%, respectively, amid reports that the ECB had rejected a Spanish plan
to recapitalize its distressed bank Bankia. Royal Dutch Shell and Tullow Oil
lost 1.3% and 3.3%, respectively, as crude oil prices dropped. National Grid
slumped 4.5%, as it traded ex-dividend.
FTSE
100 tumbled 1.7% to settle at 5,297.3, while FTSE 250 slumped 1.5% to close at
10,494.8.
European Market
Snapshot
Other
European markets closed sharply lower yesterday, as Italy failed to meet its
maximum target at a bond auction and after a poll in Greece showed increased
support for anti-bailout parties. Continued concerns about Spain’s troubled
banking system also weighed on market sentiment. Financial sector stocks,
Bankia, National Bank of Greece and Deutsche Bank lost between 0.7% and 8.6%,
after the ECB stated that the Spanish government had not consulted it on any
plans to recapitalize a major bank. BASF dropped 1.7%, after its CEO stated
that the company’s business momentum in Asia is weaker than expected. Societe Television
Francaise 1 tumbled 5.7%, after a broker stated that the company might lose
about €40.0 million in revenues if the French government lifts its advertising
ban on France TV.
FTSEurofirst
300 index fell 1.5% to 975.7. German DAX Xetra 30 dropped 1.8% to 6,280.8.
French CAC-40 closed 2.2% lower at 3,015.6.
Commodities
In
Asia, crude oil for July delivery is trading 0.2% or $0.18 lower at $87.64 per
barrel. Yesterday, crude oil for July contract fell 3.2% or $2.94 to end at
$87.82 per barrel, barrel, amid concerns that the European debt crisis could
spread to larger economies in the region as Spain’s default risk rose to a
record and Italy’s debt auction failed to meet its maximum target, and as the
US dollar strengthened against the major currencies.
Gold
for immediate delivery is trading 0.1% lower today, at $1,562.58 per ounce.
Gold for August delivery rose 1.0% or $14.70 to settle at $1,565.70 per ounce
yesterday, as mounting concerns about Greece, Spain and Italy and a fall in US
pending home sales, spurred purchase of the precious metal as an alternative
investment.
Currencies
At
0400 BST today, the GBP is trading marginally lower against the USD at $1.5476,
marginally lower against the EUR at €1.2509, 0.3% lower against the JPY at
¥121.84.
The
EUR is trading marginally lower against the USD at $1.2373.
The
EUR is trading 0.3% lower against the JPY at ¥97.42, ahead of a release of data
that might show the jobless rate reached to a record high and manufacturing
activity contracted in the eurozone.
The
JPY is trading higher against most of its major peers, as concerns about
Spain’s banking system, fall in euro region’s consumer confidence, and a poll
that showed a rise in support for political party opposing spending cuts in
Greece, spurred demand for safe haven assets.
Yesterday,
the EUR closed lower against the USD and the JPY, as Spain, Italy and Greece
struggled to recover from the European sovereign debt crisis, raising
speculation that debt crisis might spread to the region’s other economies.
The GBP closed lower
against the USD, amid mounting speculation that Europe’s contagion would harm
the UK’s economic outlook. The AUD and NZD finished lower against the USD, as
mounting concerns about the economic situation in eurozone, reduced the demand
for high-yielding assets. The CAD dropped against the USD, as prospects of an
interest rate hike by the Bank of Canada decreased amid fears that global
growth is faltering. The currency also lost value, as lower commodity prices
decreased the demand for the commodity linked currency.