DJIA
fell 0.8% to settle at 12,617.3. NASDAQ shed 0.9% to close at 2,863.0. S&P
500 slipped 0.9% to end at 1,338.3.
Nikkei
225 index is trading 1.0% lower at 8,402.9.
FTSE
100 shed 0.6% to close at 5,499.2.
FTSEurofirst
300 index eased 0.6% to 1,018.6.
In
Asia, crude oil for September delivery is trading 0.2% or $0.20 lower at $88.30
per barrel.
Gold
for immediate delivery is trading 0.2% higher today, at $1,583.45 per ounce.
US Market
Snapshot
US
markets fell yesterday, with the DJIA index logging its third-consecutive
triple-digit loss, after an index of US manufacturing expanded at its slowest
pace since late 2010 in July and amid concern Europe’s debt crisis is worsening
and disappointing US corporate earnings reports. However, losses were pared
amid speculation the Federal Reserve might act to boost growth. United Parcel
Service declined 4.6%, as its second quarter results trailed market estimates
and after it cut its 2012 outlook. Cisco Systems dropped 5.9%, amid concern
about possible slowdown in sales and threat from VMware Inc.’s planned purchase
of Nicira. DuPont declined 2.0%, as it issued a cautious outlook. AT&T
dropped 2.1%, amid sluggish sales growth. Whirlpool dropped 7.5%, as its
second-quarter profits came in below market expectations.
DJIA
fell 0.8% to settle at 12,617.3. NASDAQ shed 0.9% to close at 2,863.0. S&P
500 slipped 0.9% to end at 1,338.3.
Asian Market
Snapshot
Asian
markets are trading lower this morning, amid concern that Greece might need
more debt restructuring and following bearish comments from the IMF on China’s
economy. Disappointing US corporate earnings also weighed on market sentiment.
In Japan, Toshiba which supplies chips for Apple, slumped after sales of
Apple's iPhones trailed market expectations. Canon and Nikon paced losses, as
the yen firmed against the euro. In Hong-Kong, Cheung Kong Holdings dropped on
report that it is leading a consortium to buy UK gas distribution assets.
Hutchison Whampoa, with significant exposure to Europe traded lower. In South
Korea, POSCO traded lower after it reported a sharp drop in its quarterly
operating profit.
Nikkei
225 index is trading 1.0% lower at 8,402.9. Hang Seng index is trading 0.5%
lower at 18,814.5. Kospi index is trading 0.8% lower at 1,778.9.
UK Market
Snapshot
UK
markets slid yesterday, after Moody's Investors Service cut Germany’s credit
outlook and after a US manufacturing gauge contracted more-than-estimated in
July. Royal Bank of Scotland, HSBC, Barclays and Standard Chartered lost
between 0.7% and 2.0%, as risk appetite decreased amongst investors.
International Airlines Group, slated to report its second quarter results next
week, slipped 2.2%, as Citigroup forecasted a sharp drop in the company’s
profits. Vodafone lost 1.0%, after its Dutch peer Royal KPN reported a drop in
its second quarter earnings and cut its dividend. Glencore International declined 2.3%, amid
profit booking by investors. Interdealer broker ICAP fell 2.0%, on concerns
over falling trading volumes. BP eased 0.6%, as it began discussion with
Rosneft to sell its stake in Russia’s TNK-BP. Vedanta Resources, Anglo American
and Rio Tinto dropped between 0.3% and 1.2%, amid fears of shrinking metal
demand.
FTSE
100 shed 0.6% to close at 5,499.2, while FTSE 250 edged down 0.1% to end at
10,885.9.
European Market
Snapshot
Other
European markets closed lower yesterday, amid persistent worries that Spain
might require a full sovereign bailout, and after Germany’s credit outlook was
lowered by Moody’s Investors Service. Financial stocks, Banco Santander and
BBVA slipped 4.5% and 4.2%, respectively, as borrowing costs continued to surge
in Spain. STMicroelectronics declined 3.7%, after the company forecasted
downbeat third-quarter results, amid a slowdown in demand. ProSiebenSat.1 Media
dropped 2.5%, after Barclays downgraded its recommendation on the stock to
“Equal Weight” from “Overweight”. Royal KPN fell 7.3%, after the company
reported a drop in its second-quarter earnings and slashed its dividend.
However, Software surged 10.8%, after the company posted robust second-quarter
results.
FTSEurofirst
300 index eased 0.6% to 1,018.6. German DAX Xetra 30 fell 0.5% to 6,390.4.
French CAC-40 closed 0.9 % lower at 3,074.7.
Commodities
In
Asia, crude oil for September delivery is trading 0.2% or $0.20 lower at $88.30
per barrel. Yesterday, crude oil for September delivery gained 0.4% or $0.36 to
$88.50 per barrel, as unrest in Syria intensified concerns over supply
disruption from Middle East region and after a report revealed that China’s
HSBC manufacturing purchasing managers’ index rose to its highest in five
months in July. Later in the day, the American Petroleum Institute reported
that US crude oil inventories increased for the first time in four weeks by
1.35 million barrels last week.
Gold
for immediate delivery is trading 0.2% higher today, at $1,583.45 per ounce.
Gold for August delivery settled down 0.1% or $1.20 at $1,576.20 per ounce
yesterday, as the dollar traded higher against the euro after Moody’s Investors
Service lowered its outlook on Germany, Netherlands and Luxembourg’s triple-A
rating to ‘Negative’ from ‘Stable’.
Currencies
At
0400 BST today, the GBP is trading marginally higher against the USD at
$1.5506, flat against the EUR at €1.2848, and 0.1% higher against the JPY at
¥121.16.
The
EUR is trading marginally higher against the USD at $1.2069. However, earlier
in the session the EUR traded lower against the USD, ahead of a report which is
expected to show that German business confidence fell to the lowest level since
2010 in July and after Moody’s Investors Service, in a statement today,
revealed that it had also lowered the rating outlook for the European Financial
Stability Facility (EFSF) to ‘Negative’ from ‘Stable’.
The EUR is trading 0.1% higher against the JPY
at ¥94.30. Earlier in the session, the JPY traded higher against most of its
major peers, after Japan unexpectedly posted a trade surplus in June.
The
NZD is trading lower against the USD, even after a report indicated that New
Zealand’s annual trade deficit unexpectedly fell in June.
Yesterday, the EUR closed
lower against the USD, after a report indicated that a downturn in the eurozone
private sector continued in July. The EUR also fell, after a report showed that
European Union officials believed Greece might not be able to pay its debt and
might require additional debt restructuring, and after Moody’s Investors
Service cut its triple-A credit ratings outlook for Germany, the Netherlands
and Luxembourg to ‘Negative’ from ‘Stable’. The GBP ended lower against the
USD, after a report indicated that UK BBA mortgage approvals fell unexpectedly
in June. The USD and the JPY ended higher against their major counterparts, as
mounting worries over European debt crisis spurred demand for the safe haven
currencies.
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