World Markets Decline on Euro Worries

123jump.com Staff
05 May, 2010
New York City

Stocks in New York and Europe declined as protests turn violent in Greece and investors fear debt worries spreading to Spain and Portugal after a rating agency placed Portugal

[R]5:30 PM New York – Stocks in New York and Europe declined as protests turn violent in Greece and investors fear debt worries spreading to Spain and Portugal after a rating agency placed Portugal’s debt on watch. The U.S. Senate approves amendments to financial bill that is working its way through the process.[/R]

U.S. stocks trade lower as Portugal face debt downgrade and demonstrations in Athens turn violent. The euro declined to fourteen month low and investors fear growing debt contagion spreading to Spain, Portugal and Ireland.

Job cuts decline across the U.S. according to a latest private survey. Dollar Thrifty said it will review an offer from Avis competing with Hertz bid. Time Warner reports quarterly profit better-than-expected. XL Capital first quarter profit declines.

News Corporation led the decliners in the S&P 500 index with a loss of 9%. IntercontinentalExchange profit rises. Garmin first quarter profit falls to $37 million. Time Warner first quarter net rises 10%. InterMune plunges 77% after it fails to win FDA approval.

European market indexes declined for the second day on the growing contagion worries in the region. The euro dropped to one-year low. Euro area retail sales were unchanged in March. Lafarge posts profit on asset sale. Societe Generale SA reports better-than-expected earnings.

UK construction expands at the fastest pace in April and the EC raises the nation’s economic outlook. Sales decline accelerates at JD Wetherspoon. Xstrata lifts output. Prudential Plc delays rights offering. UK indexes declined ahead of tomorrow’s election.

Stocks in Hong Kong fell sharply following losses in global markets. However, stocks in Shanghai rebounded. Short sales interests on Chinese stocks rose to the highest level in 26 months. PetroChina Co begins construction of refinery in the Northwest China to increase capacity three-fold.

Stocks in Mumbai traded lower tracking losses in global markets. Coal India prepares for the largest initial public offering in India. Jindal Steel & Power quarterly net increased 7%. Jagaran Prakashan may bid for Mid-day Multimedia.

Interactive Data Corp agreed to be acquired by private funds managed by Silver Lake and Warburg Pincus for $3.4 billion or $33.86 a share. The sale raises the prospect that Pearson Plc, 61% stake holder in the company may sell Financial Times.

Stocks in Australia decline following world markets sell-off. Australian home building approvals increased 15.3% in March. Westpac Banking Corp. profit in the first half soars 32% to A$2.88 billion.

North American Markets

Dow Jones Industrial Average decreased 59.94 or 0.6% to close at 10,866.83, S&P 500 Index edged lower 7.73 or 0.7% to 1,165.87 and Nasdaq Composite Index declined 21.96 or 0.9% to close at 2,402.29. Toronto TSX Composite Index fell 155.73 or 1.3% to 11,875.13.

Latin American Markets Indexes

Mexico IPC Index fell 125.37 or 0.4% to 31,995.28 and Brazil Bovespa Stock Index increased 44.85 or 0.07% to 64,914.17.

Europe Markets Review

In London FTSE 100 Index closed lower 63.59 or 1.18% to 5,347.52, in Paris CAC 40 Index decreased 43.47 or 1.18% to close at 3,645.82, in Frankfurt DAX index lower 41.70 or 0.69% to close at 5,965.16. In Zurich trading SMI decreased 28.33 or 0.44% to close at 6,460.09.

Asian Markets Review

Hang Seng index in Hong Kong decreased 435.51 or 2.10% to 20,327.54 and CSI 300 index in China higher 16.94 or 0.56% to 3,036.39. ASX 200 index in Australia decreased 63.10 or 1.33% to 4,674.00. The FTSE Bursa KL Composite index in Malaysia closed lower 7.24 or 0.54% to 1,335.65. The markets in Japan were closed today.

JSE Index in Indonesia decreased 112.78 or 3.81% to 2,846.24. The Sensex index in India decreased 49.18 or 0.29% to 17,087.96. The markets in South Korea and Thailand were closed today.

Commodities, Metals, and Currencies

Crude oil decreased $3.10 to $79.64 a barrel for a front month contract, natural gas edged down 3 cents to $3.98 per mBtu and gasoline decreased 10.47 cents to 221.75 cents.

Soybean future closed up 9.00 cent to $9.78 a bushel. Wheat futures increased 1.25 cents in Chicago trading to $5.12 a bushel. Sugar closed down 0.10 cents at 14.41 cents a pound.

Gold increased $7.40 in New York trading to close at $1,176.00 an ounce, silver closed down $0.37 to $17.47 per ounce and copper for the front month delivery decreased 2.70 cent to $3.15 per pound.

Dollar edged higher against euro to $1.28 and gained against the Japanese yen to 93.82.

Yield on 10-year U.S. bonds decreased to 3.54% and with 30-year maturities fell to 4.39%.