DJIA
shed 0.5% to settle at 13,008.7. NASDAQ ticked down 0.2% to close at 2,939.5.
S&P 500 inched 0.4% lower to end at 1,379.3.
Nikkei
225 index is trading 1.1% lower at 8,601.6.
FTSE
100 shed 1.0%, to settle at 5,635.3.
FTSEurofirst
300 index eased 0.9% to 1,063.4.
In
Asia, crude oil for September delivery is trading 0.3% or $0.22 lower at $87.84
per barrel.
At
0400 BST today, the GBP is trading marginally higher against the USD at
$1.5674, slightly higher against the EUR at €1.2748, and 0.2% lower against the
JPY at ¥122.23.
US Market Snapshot
US
markets slid modestly yesterday, ahead of the Federal Reserve policy decision
on Wednesday, as investors remained concerned that any additional monetary
stimulus by the US central bank would not be enough to bolster the domestic
economy. Coach tumbled 18.6%, leading the laggards on the S&P 500 index, as
its fourth-quarter sales missed market expectations. Peer, Tiffany & Co
shed 4.0%. Health-insurer, Humana slumped 12.7%, as it reported a drop in its
second-quarter profit and lowered its full-year profit outlook. Facebook shares
reached another new low, declining 6.2%, as investors continued to fret over
its last week's earnings report that showed a deceleration in user growth and
as the company issued no guidance. 3-D technology company, RealD plunged 23.0%,
as its first-quarter income trailed analyst estimates.
DJIA
shed 0.5% to settle at 13,008.7. NASDAQ ticked down 0.2% to close at 2,939.5.
S&P 500 inched 0.4% lower to end at 1,379.3.
Asian Market
Snapshot
Asian
markets are trading mostly lower this morning tracking negative cues from Wall
Street overnight, as China’s manufacturing activity expanded at the slowest
pace in eight months and after South Korea's exports fell sharply from a year
earlier in July. In Japan, shipbuilder, Sumitomo Heavy Industries slumped as it
cut its profit outlook sharply, while construction machinery maker, Komatsu is
traded lower as it posted an 18.5% year-on-year drop in its quarterly operating
profit in April-June period. In Hong Kong, Sands China is trading lower, amid a
report that one of its subsidiary was being investigated by the Macau
government in connection with the transfer of some data to the US. In South
Korea, Retailer Hyundai Department Store declined after it reported a 6.9% fall
in operating profit for the second-quarter.
Nikkei
225 index is trading 1.1% lower at 8,601.6. Hang Seng index is trading 0.1%
higher at 19,817.6.Kospi index is trading 0.2% lower at 1,878.4.
UK Market
Snapshot
UK
markets closed lower yesterday, after Germany ruled out granting a banking
license for Europe's permanent bailout fund and ahead of the central-bank
meetings. BP slumped 4.4%, after it posted second-quarter profit that missed
market expectations. Tullow Oil, BG Group and Petrofac eased between 0.8% and
3.2%, tracking a drop in crude oil prices. Banks, Royal Bank of Scotland,
Standard Chartered, Lloyds Banking and HSBC Holdings declined between 1.7% and
3.8%, as risk appetite decreased among investors. CRH plunged 5.8%, amid
concerns, after its German sector peer HeidelbergCement lowered its 2012
guidance for US aggregates volumes. Shire dropped 3.9%, amid discussions that
it could cut growth guidance following the launch of a generic version of its
drug. ITV declined 1.7%, after Deutsche Bank downgraded the stock to “Sell”
from “Hold”.
FTSE
100 shed 1.0%, to settle at 5,635.3. FTSE 250 declined 0.9%, to 11,136.7.
European Market
Snapshot
Other
European markets closed lower yesterday, following disappointing corporate
earnings reports and as investors maintained caution before the outcome of the
US Federal Reserve meeting. Markets were also weighed down on comments from a
Bundesbank official that the bank remained opposed to restarting the European
Central Bank’s (ECB) bond-buying program. UBS plunged 5.9%, after it posted
weaker-than-anticipated second-quarter earnings. Hugo Boss shed 5.5%, after it
posted quarterly gross-profit margins that fell short of analyst estimates. SGL
Carbon declined 4.6%, after the company cut its full-year EBIT forecast, citing
sluggish demand for the carbon fibers and composites business. Michelin dropped
2.8%, after a broker downgraded the stock to “Neutral” from “Overweight”.
FTSEurofirst
300 index eased 0.9% to 1,063.4. German DAX Xetra 30 fell marginally to close
at 6,772.3. French CAC-40 closed 0.9% lower at 3,291.7.
Commodities
In
Asia, crude oil for September delivery is trading 0.3% or $0.22 lower at $87.84
per barrel. Yesterday, crude oil for September delivery dropped 1.9% or $1.72
to $88.06 per barrel, tracking a decline in equity markets and as hopes dimmed
that the US Federal Reserve would deliver additional stimulus measures
following an unexpected rise in US consumer confidence and business activity
data for July. Oil prices also fell, after German Chancellor Angela Merkel’s
coalition rejected granting the permanent euro rescue fund access to ECB
liquidity via a banking license.
Gold
for immediate delivery is trading 0.1% higher today, at $1,614.75 per ounce.
Gold for August delivery settled down 0.6% or $9.20 at $1,610.50 per ounce
yesterday, as investors fretted about the prospects for new stimulus measures
from central banks in the US and Europe.
Currencies
At
0400 BST today, the GBP is trading marginally higher against the USD at
$1.5674, slightly higher against the EUR at €1.2748, and 0.2% lower against the
JPY at ¥122.23.
The
EUR is trading slightly higher against the USD at $1.2296, as investors await
the outcome from the two-day meeting gathering of US Federal Reserve, and the
ECB and Bank of England meetings that are scheduled tomorrow.
The
EUR is trading 0.2% lower against the JPY at ¥95.88.
The
AUD is trading lower against its major peers, as demand for the high-yielding
currency faded, after reports revealed that China’s manufacturing activity
slowed to its lowest pace in eight months in July and Australian manufacturing
dropped to the lowest level in three years in July.
Yesterday, the EUR ended
higher against its major counterparts, on expectations that the ECB might take
further actions to contain the debt crisis. The EUR also rose, after French
President Francois Hollande and Italian Prime Minister Mario Monti reaffirmed
their commitment to preserve the euro zone. The USD ended lower against the
EUR. However, upbeat US consumer confidence and business activity data for July
helped limit losses. The GBP closed lower against the EUR and the USD, after a
report indicated that UK consumer confidence remained unchanged in July as the
recession deepened. The GBP also fell, after Moody’s Investors Service lowered
its forecast for UK economic growth and stated that the government would
struggle to meet its debt-reduction targets. The CAD closed lower against the
USD, after data showed that the Canadian’s GDP grew less-than-expected in May.
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