DJIA
slumped 2.0% to settle at 12,573.6. NASDAQ plunged 2.4% to close at 2,859.1.
S&P 500 tumbled 2.2%, to end at 1,325.5.
Nikkei
225 index is trading 0.5% lower at 8,777.0.
FTSE
100 shed 1.0% to settle at 5,566.4.
FTSEurofirst
300 index fell 0.5% to end at 1,008.9.
In
Asia, crude oil for August delivery is trading 0.6% or $0.45 higher at $78.65
per barrel.
At
0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5613, flat
against the EUR at €1.2432, and 0.3% higher against the JPY at ¥125.27.
US Market
Snapshot
US
markets dropped sharply yesterday, as a drop in regional manufacturing activity
and disappointing labour and housing market data spooked investors. Moreover, a
drop in eurozone business activity and contraction in China’s manufacturing
also weighed on market sentiment. Morgan Stanley, JP Morgan Chase, Goldman
Sachs Group, Citigroup and Bank of America slipped between 1.7% and 3.9%, amid
speculation of an imminent downgrade of major global banks by Moody’s.
Financials also extended losses after an independent audit showed that Spanish
banks would need up to $78 billion in new capital. Bed, Bath and Beyond
plummeted 17.0%, a day after the company forecasted weak earnings for the
second quarter. Micron Technology slumped 7.8%, after it reported a fourth
consecutive quarterly loss.
DJIA
slumped 2.0% to settle at 12,573.6. NASDAQ plunged 2.4% to close at 2,859.1.
S&P 500 tumbled 2.2%, to end at 1,325.5.
Asian Market
Snapshot
Asian
markets are trading lower this morning, taking cues from overnight losses on Wall
Street, as a batch of weak economic reports increased worries about global
growth. In Japan, banking stocks, Mitsubishi UFJ Financial Group, Shinsei Bank
and Sumitomo Mitsui Financial Group traded lower after 15 global banks were
downgraded by Moody’s Investors Service late Thursday. Bridgestone paced lower,
on report that the company might extend its output cuts in the second half on
slumping demand. In Hong Kong, Esprit Holdings and Prada traded lower as global
growth concerns weighed on exporters. In South Korea, refiners, S-oil and SK
Innovation paced declines tracking overnight losses in crude oil prices.
Nikkei
225 index is trading 0.5% lower at 8,777.0. Hang Seng index is trading 1.0%
lower at 19,070.8, while the Kospi index is trading 2.3% lower, at 1,845.5.
UK
markets closed lower yesterday, led by a decline in mining and financial sector
stocks, after weak manufacturing reports in Europe and China compounded fears
about a faltering global economy, shrugging off better-than-expected domestic
retail sales data. BHP Billiton, Rio Tinto, Vedanta Resources and Anglo
American fell between 3.1% and 5.2%, as a gauge of China’s manufacturing
activity slipped to a seven-month low. Barclays and Royal Bank of Scotland shed
1.7% each, while Standard Chartered lost 2.1%, amid a possible looming
downgrade of major global banks by Moody’s Investor Services. Royal Dutch
Shell, BG Group and BP lost between 1.3% and 3.2%, tracking a decline in crude
oil prices. WPP fell 1.0%, as Jefferies reiterated its “Underperform” rating on
the stock. Invensys tumbled 14.4%, after rejecting a takeover approach from
Emerson Electric.
FTSE
100 shed 1.0% to settle at 5,566.4, while FTSE 250 lost 0.7% to end at 10,944.7.
European Market
Snapshot
Other
European markets slid yesterday, as downbeat economic data in the US and
Germany, and preliminary data that pointed to a decline in China’s
manufacturing activity weighed on market sentiment. Investors also remained
cautious in anticipation of the audit of Spain’s banking sector. Banks, Societe
Generale and BNP Paribas declined 1.3% and 1.4%, respectively, amid reports
that Moody’s Investors Service was set to downgrade major UK banks later in the
evening. Carmakers, Volkswagen, Daimler and BMW dropped between 0.8% and 3.1%,
as signs that global economic recovery is faltering raised worries about future
demand. Royal KPN lost 5.3%, after UBS downgraded the stock to “Neutral” from
“Buy”. Retailer, Cewe Color Holding fell 1.8%, despite a “Buy” call on the
stock by Deutsche Bank.
FTSEurofirst
300 index fell 0.5% to end at 1,008.9. German DAX Xetra 30 dropped 0.8% to
6,343.1. French CAC-40 closed 0.4% lower at 3,114.2.
Commodities
In
Asia, crude oil for August delivery is trading 0.6% or $0.45 higher at $78.65
per barrel. Yesterday, crude oil for August delivery declined 4.0% or $3.25 to
settle at $78.20 per barrel, as downbeat economic data from China, the US and Europe
raised concerns over demand prospects. Crude oil prices remained under pressure
as global crude oil inventories continue to remain well supplied on higher oil
production from Saudi Arabia and on sluggish demand.
Gold
for immediate delivery is trading 0.3% lower today, at $1,563.85 per ounce.
Gold futures for August delivery dropped 3.1% or $50.30 to $1,565.50 per ounce
yesterday, as the US dollar strengthened amid downbeat global economic reports
and a day after the US Federal Reserve failed to announce new monetary stimulus
after its policy meeting.
At
0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5613, flat
against the EUR at €1.2432, and 0.3% higher against the JPY at ¥125.27.
The
EUR is trading 0.1% higher against the USD at $1.2560. Earlier, the currency
was trading lower, amid speculation that a report would show German business
confidence fell in June, raising fears that the global economy is faltering.
The
EUR is trading 0.3% higher against the JPY at ¥100.76.
The
USD is trading higher against the JPY, after spreads between the difference
between yields on Japanese and US two-year government securities this week
reached the most since April 5.
The
AUD and NZD are trading higher against the USD, ahead of reports due to be
released next week that might point to a slowdown in home sales growth and
weakening consumer confidence, raising speculation that the US Federal Reserve
might consider another round of asset purchases, or quantitative easing.
Yesterday, the EUR closed
lower against the USD, amid mounting concerns about the European sovereign debt
crisis, after Moody’s Investors Service downgraded 15 global banks. The
currency also lost value, as downbeat global economic reports and concerns
about the US, Europe and Chinese, economies dampened the demand for riskier
assets. The GBP closed higher against the EUR, after UK retail sales rose
more-than-expected in May and survey indicated that total industrial order book
balance in the country rose in June. The CAD finished lower against the USD, as
investors sought the safety of the greenback, following weak US economic
reports and tightening of domestic mortgage rules.
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