DJIA
fell 0.8% to settle at 12,721.5. NASDAQ tumbled 1.2% to close at 2,890.2.
S&P 500 shed 0.9% to end at 1,350.5.
Nikkei
225 index is trading 0.4% lower at 8,472.6.
FTSE
100 fell 2.1%, to settle at 5,533.9.
FTSEurofirst
300 index dropped 2.4 % to 1,024.3.
In
Asia, crude oil for September delivery is trading marginally higher at $88.18
per barrel.
At
0400 BST today, the GBP is trading marginally higher against the USD at
$1.5519, slightly higher against the EUR at €1.2802, and marginally lower
against the JPY at ¥121.48.
US Market
Snapshot
US
markets fell yesterday, amid concerns that Spain might need a sovereign bailout
after the Spanish region of Murcia looked set to request government bailout
funds and after a Chinese central bank adviser opined that China’s economic
growth might contract further. McDonald's slid 2.9%, as it second-quarter
results trailed market expectation. Exxon Mobil and Chevron fell 0.9% and 1.1%,
respectively, tracking a drop in crude oil prices. Financial stocks, Citigroup
and PNC Financial Services lost 2.1% and 2.6%, respectively, on Spanish debt
concern and on reports that the IMF would halt aid to Greece. Alcoa slid 1.5%,
amid concern about a global slowdown. Pharmaceutical company, Akorn slumped
7.9%, after Deutsche Bank reduced its rating on the stock to “Hold” from “Buy”
and lowered estimates for 2013 and 2014.
DJIA
fell 0.8% to settle at 12,721.5. NASDAQ tumbled 1.2% to close at 2,890.2.
S&P 500 shed 0.9% to end at 1,350.5.
Asian Market
Snapshot
Asian
markets are trading lower this morning, as Moody's Investors Service trimmed
its outlook on Germany, the Netherlands and Luxembourg due to mounting
uncertainties from the eurozone debt crisis. In Japan, Sharp traded lower, amid
news that the firm might suffer a higher-than-expected loss in the April-June
quarter as its LCD and solar businesses continue to decline. Toshiba dropped
amid concerns about its earnings and after reports stated that the company
plans to cut NAND flash memory chip output by 30%. In Hong-Kong, morning
trading was suspended due to extreme weather. In South- Korea, Halla Climate
Control paced losses, after South Korea's National Pension Service rejected an
offer from US-based Visteon’s to acquire 30% of Halla Climate Control.
Nikkei
225 index is trading 0.4% lower at 8,472.6. Kospi index is trading 0.1% lower
at 1,787.0. Trading was suspended in Hong-Kong.
UK Market
Snapshot
UK
markets ended lower yesterday, as renewed concern about Spain and a potential
Greek default, spooked market sentiment. Evraz slumped 7.0%, following bearish
comments from Morgan Stanley. Aviva slumped 6.6%, amid doubts whether its
disposal plan alone would be enough to turnaround the company. African Barrick
Gold tumbled 16.0%, after the company reported a drop in first-half profits, on
lower production and higher costs. Miners, Vedanta Resources, ENRC, Kazakhmys
and Antofagasta declined between 3.5% and 5.2%, as base metal prices slumped,
after a Chinese central bank adviser stated that the nation’s economy might
cool further in the current quarter. Banking stocks, Barclays, HSBC Holdings,
Royal Bank of Scotland and Standard Chartered plunged between 2.4% and 4.2%,
spooked by concerns over debt problems in Greece and Spain.
FTSE
100 fell 2.1%, to settle at 5,533.9. FTSE 250 shed 2.4%, to close at 10,896.9.
European Market
Snapshot
Other
European markets closed lower yesterday, as rising borrowing costs in the euro
area renewed concern that Spain would seek a sovereign bailout and amid fears
that Greece would default. Banking stocks, Commerzbank, Credit Agricole, BNP
Paribas and Deutsche Bank plunged between 4.6% and 6.1%, as risk appetite
decreased among investors. Groupe Eurotunnel slumped 5.8%, after the company
posted weaker-than-anticipated first-half earnings. Oil producers, Technip and
Total fell 3.9% and 1.8% respectively, tracking a drop in crude oil prices.
Danone declined 3.2%, after Societe Generale downgraded its rating on the stock
to “Hold” from “Buy”. Wereldhave tumbled 13.4%, after the company abandoned its
dividend targets for this year and next.
FTSEurofirst
300 index dropped 2.4 % to 1,024.3. German DAX Xetra 30 shed 3.2% to 6,419.3.
French CAC-40 closed 2.9% lower at 3,101.5.
Commodities
In
Asia, crude oil for September delivery is trading marginally higher at $88.18
per barrel. Yesterday, crude oil for September delivery declined 4.0% or $3.69
to $88.14 per barrel, amid worries over demand outlook, as eurozone debt crisis
intensified on fears that Spain would need a major bailout and ahead of the
meeting between the European Commission, the European Central Bank (ECB) and
the International Monetary Fund to determine the fiscal position of Greece. Oil
prices also fell, after a Chinese central bank adviser stated that the nation’s
economy might cool further in the current quarter.
Gold
for immediate delivery is trading 0.1% lower today, at $1,576.05 per ounce.
Gold for August delivery settled down 0.3% or $5.40 at $1,577.40 per ounce
yesterday, as the dollar traded higher against the euro, amid increasing
worries about finances in Spain and Greece and following a surge in Spanish and
Italian bond yields.
Currencies
At
0400 BST today, the GBP is trading marginally higher against the USD at
$1.5519, slightly higher against the EUR at €1.2802, and marginally lower
against the JPY at ¥121.48.
The
EUR is trading marginally lower against the USD at $1.2122. However, gains in
the USD were limited, before data due to release this week, which might show
that US economic growth slowed in the second quarter of 2012, prompting
speculation that the US Federal Reserve would ease monetary policy further.
The
EUR is trading slightly lower against the JPY at ¥94.88. The JPY is trading
higher against its major counterparts, as escalating worries over the European
debt turmoil spurred demand for the safe haven currency. The JPY traded higher
even after Japan’s Finance Minister Jun Azumi reiterated that he is ready to
take decisive action on the local currency if needed.
The
EUR is trading lower against its major peers, after Moody's Investors Service
lowered its outlook for Germany, the Netherlands and Luxembourg to ‘Negative’
from ‘Stable’, due to mounting uncertainties from the eurozone debt crisis.
The
AUD is trading higher against the USD, after a report revealed that Chinese
manufacturing PMI rose in July.
Yesterday, the EUR ended
lower against its major peers, following a surge in Spanish borrowing costs as
Catalonia joined a list of Spanish regions that might request aid from the
central government. The EUR also fell, on news that the International Monetary
Fund was set to stop aid for Greece and after a report showed that eurozone
consumer confidence dropped to a three year low in July.
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