DJIA
shed 1.0% to settle at 12,772.5. NASDAQ slumped 1.3% to close at 2,937.3.
S&P 500 slipped 0.9% to end at 1,354.7.
Nikkei
225 index is trading 0.8% lower at 8,944.9.
FTSE
100 slid 0.5% to close at 5,662.6. FTSEurofirst
300 index dropped 1.0% to 1,033.8.
In
Asia, crude oil for August delivery is trading 0.4% or $0.37 higher at $84.82
per barrel.
At
0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5493,
marginally lower against the EUR at €1.2606, and 0.1% higher against the JPY at
¥123.43.
US Market
Snapshot
US
markets retreated on Friday, as slower-than-expected growth in June pay-rolls
reinforced concern that global growth was faltering. Moreover, worries over the
health of eurozone continued to weigh on market sentiment, as yields on
benchmark Spanish bonds hovered around 7%. Acme Packet and Informatica
plummeted 14.5% and 27.6%, respectively, after they offered a disappointing
guidance for their second quarter, amid a slowdown in global growth. Seagate
Technology slid 0.5%, after it cut its revenue and gross margin expectations
for its fourth-quarter. Freeport-McMoRan Copper & Gold and Alcoa slipped
1.3% and 2.2%, respectively, while Schlumberger dropped 1.4%, as commodity
prices tumbled. Navistar International dropped 15.2%, after it stated that it
would incur additional costs to get a crucial new engine approved by federal
regulators.
DJIA
shed 1.0% to settle at 12,772.5. NASDAQ fell 1.3% to close at 2,937.3. S&P
500 slipped 0.9% to 1,354.7.
Asian Market
Snapshot
Asian
markets are trading lower this morning, as disappointing US jobs data,
higher-than-expected decline in Japanese machinery orders in May and bearish
comments about China’s economy by Premier Wen Jiabao, weighed on market
sentiment. In Japan, construction equipment maker, Komatsu lost value, as
Japan’s machinery orders dropped in May. Tokyo Electron fell after JPMorgan
Chase downgraded the stock to “Neutral” from “Overweight”. In Hong Kong, Angang
Steel traded lower, after the company forecasted a net loss of around ¥1.976 billion
in the first-half of 2012. In South Korea, computer SK C&C lost value,
after the company was fined a $30.4 million by South Korea's Fair Trades
Commission. Samsung Electronics lost values on worries about weakening demand.
Nikkei
225 index is trading 0.8% lower at 8,944.9. Hong Kong index is trading 1.5%
lower, at 19,495.1, while the Kospi index is trading 1.3% lower, at 1,834.4..
UK Market
Snapshot
UK
markets closed lower on Friday, following disappointing US jobs report.
Building materials group, CRH, with significant exposure to Poland, declined
5.2%, after data from the Polish Cement Association showed 20% YoY decline in
sales in June. Anglo American, Rio Tinto and Kazakhmys dropped between 2.7% and
4.4%, as base metal prices slumped on renewed demand concerns. Fresnillo,
Randgold Resources and Polymetal International slipped 1.1%, 1.4% and 3.3%, as
precious metal prices dipped. Barclays slipped 2.1%, as Bernstein cut its
rating from “Outperform” to “Market Perform”. Marks & Spencer declined
3.4%, after the Financial Times stated that the firm would report its worst
quarterly trading in three years. Interdealer broker, ICAP slipped 3.8%, following
a downgrade to “Hold” from “Buy” at Numis Securities.
FTSE
100 slid 0.5% to close at 5,662.6, while FTSE 250 also shed 0.5% to settle at
11,070.6.
European Market
Snapshot
Other
European markets closed lower on Friday, as sluggish US June payrolls data,
surge in Spanish bond yields and downbeat comments on global growth outlook by
the International Monetary Fund head Christine Lagarde overshadowed
stronger-than-expected German industrial production data. BBVA sank 5.1%, after
HSBC cut its recommendation on the stock to “Neutral” from “Overweight”, while
Banco Popular Espanol declined 4.1%, after the same broker downgraded the stock
to “Underweight” from “Neutral”. Peugeot tumbled 7.7%, after the company
reported a decline in its first-half sales on an annual basis, while BMW lost
3.9%, after Morgan Stanley downgraded the stock to “Equal weight” from
“Overweight”. Insurer, Delta Lloyd dropped 4.4%, after Aviva cut its stake in
the company below 20.0%.
FTSEurofirst
300 index dropped 1.0% to 1,033.8. German DAX Xetra 30 fell 1.9% to 6,410.1.
French CAC-40 closed 1.9% lower at 3,168.8.
Commodities
In
Asia, crude oil for August delivery is trading 0.4% or $0.37 higher at $84.82
per barrel. On Friday, crude oil for August delivery dropped 3.2% or $2.77 to
settle at $84.45 per barrel, amid fuel energy demand growth worries, after
reports showed nonfarm payrolls for June grew less-than-expected. Crude oil
prices were also under pressure as the dollar rose against the euro.
Gold
for immediate delivery is trading 0.2% lower today, at $1,581.25 per ounce.
Gold for August delivery lost 1.9% or $30.50 to settle at $1,578.90 per ounce
on Friday, as the dollar rose against the major currencies, following downbeat
US jobs data, lowering demand for the precious metal as an alternative
investment.
Currencies
At
0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5493,
marginally lower against the EUR at €1.2606, and 0.1% higher against the JPY at
¥123.43.
The
EUR is trading 0.2% higher against the USD at $1.2292 and 0.2% higher against
the JPY at ¥97.92. Earlier, the currency
was trading lower, before European Central Bank President Mario Draghi
addresses the European parliament today and as the regional Finance Ministers
meet today to discuss implementation of the measures agreed on at the summit.
The
JPY is trading lower against most of its major peers, after Japan reported
smallest current-account surplus in May since at least 1985 and biggest fall in
machinery orders in five years.
The
AUD is trading lower against most of its major peers amid concerns China’s
economy is faltering and as Asian equity markets fell, decreasing demand for
higher-yielding currencies.
On
Friday, the USD closed higher against the EUR, after a report showed
weaker-than-expected jobs growth in the US in June, spurring demand for the
safe haven assets.
The
AUD and NZD ended lower against the USD, amid concerns about China’s economy
following downbeat comments from the Chinese Premier, Wen Jiabao.
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