DJIA slipped 1.1% to end at 12,502.7. NASDAQ tumbled 1.9% to settle at 2,836.2. S&P 500 shed 1.6% to close at 1,313.7.
FTSE 100 dropped 1.1% to settle at 5,450.7.
In Asia, crude oil for August delivery is trading 0.1% or $0.10 lower at $79.11 per barrel.
Asian Market Snapshot
Asian markets are trading lower this morning, amid fading hopes that the European summit this week would deliver a solution to contain the region’s debt crisis. Moreover, a downgrade of China’s economic outlook by HSBC Holdings and a drop in South Korean consumer confidence also weighed on market sentiment. In Japan, Honda Motor traded lower, following report that the Chinese government has no imminent plans to subsidize car purchases. Nippon Electric lost value, after it trimmed its first quarter profit outlook. In Hong Kong, China Taiping Insurance Holding traded higher, after Fitch Ratings affirmed its Issuer Default Rating (IDR) at “BBB+”. In South Korea, exporters, Kia Motors and LG Electronics traded lower, amid concerns weak macroeconomic conditions would hamper demand.
Nikkei 225 index is trading 0.5% lower at 8,690.9. Hang Seng index is trading 0.2% higher at 18,927.6, while the Kospi index is trading 0.1% lower, at 1,816.0.
In Asia, crude oil for August delivery is trading 0.1% or $0.10 lower at $79.11 per barrel. Yesterday, crude oil for August delivery declined 0.7% or 55 cents to end at $79.21 per barrel, on news that Saudi Arabia would not cut oil production this summer and after possibility of a tropical storm in the Gulf of Mexico was cast aside. Crude oil also lost value, amid continued concerns about the eurozone debt crisis ahead of a crucial meeting of European Union lawmakers this week.
Gold for immediate delivery is trading 0.1% lower today, at $1,584.45 per ounce. Gold for August delivery gained 1.4% or $21.50 at $1,588.40 per ounce yesterday, as scepticism that the European summit would result in concrete measures and signs of worsening debt crisis in the euro area, increased demand for the precious metal as an alternative investment. Reports that Cyprus had sought a bailout and Germany’s Chancellor Angela Merkel had hardened her resistance to euro-area debt sharing also boosted the demand for the safe haven metal.
The EUR is trading 0.1% higher against the USD at $1.2513. The EUR is trading 0.1% higher against the JPY at ¥99.75.
The AUD is trading higher against most of its major peers, ahead of the Reserve Bank of Australia’s next week policy meeting, on hopes that the country’s economy is strong enough to weather effects of Europe’s debt crisis.
Yesterday, the EUR closed lower against the USD, amid mounting speculation that the European sovereign debt crisis would spread to bigger economies. The currency was also weighed down on report that Cyprus had officially requested a bailout and as Spanish bond yields surged. The USD finished higher against the GBP, after US new home sales rose more-than-expected in May and the Federal Reserve Bank (Fed) of Dallas reported that, its manufacturing business activity index rose to a reading of 5.8 in June from a reading of -5.1 in May. The EUR closed lower against the GBP, amid continued concerns over the sovereign debt crisis in the euro area, but speculation of more easing by the Bank of England helped support the currency.