Global Markets Struggle in Slow Summer Trading

Bikram Pandey
15 Aug, 2012
New York City

U.S. markets traded sideways and Industrial output increased in July but manufacturing index fell in New York region. European markets eased and gold, copper and oil traded higher. Asian markets were flat and Shanghai index fell 1.1%. Markets in India were closed to celebrate Independence Day.

[R]4:15 PM New York – U.S. markets traded sideways and trading volume was near the low of the year. Industrial output increased in July but manufacturing index declined in New York region. European markets eased and gold, copper and oil traded higher. Asian markets were flat and Shanghai index fell 1.1%. Markets in India were closed for Independence Day.[/R]

U.S. indexes traded sideways and trading volume remained subdued as most investors stayed away for summer holiday.

The latest manufacturing data from the Fed helped to bolster the sentiment in early trading but stocks lost steam on the ongoing global slowdown worries.

The latest industrial production data from the U.S. Fed showed an increase in July on the rising production of industrial output and a rebound in utility power generation as temperatures across the nation remain above normal.

In merger news, Carlyle agreed to acquire Getty Images for $3.3 billion. Global Payments agreed to buy Accelerated Payment for $413 million in cash.

On the earnings front, Abercrombie & Fitch ((ANF)) soared 9% after quarterly net fell to 19 cents a share but ahead of expectations. JDS Uniphase soared 8% after the optical network testing equipment estimated fiscal first quarter sales as much as $435 million.

In addition, Deere ((DE)) third quarter net jumped 11% and Staples plunged 15% after the office supply retailer lowered its annual sales outlook. Target Corp after the second largest discount retailer lifted its annual income outlook on higher groceries sales.

The European indexes edged lower in weak trading across the region. The UK jobless claimant count fell unexpectedly in July. Hungarian production eased in June. Lloyds Banking agreed to sell a portfolio of private equity investments for £1.03 billion.

Stocks in Tokyo eased and steel makers led the decliners on the worries that the demand from China was waning. Gree Inc, the social gaming site operator dropped 7% after estimating lower than expected annual outlook.

The benchmark index in Shanghai declined 1.1% and markets in India were closed to celebrate 64th Independence Day holiday.

Australian investors sought the safety in local economy oriented companies. Commonwealth Bank reported record $7 billion profit for the year ending in June. OZ Minerals dropped 7% after it reported rising profits but operating costs rose more than expected.

Commodities, Bonds and Currencies

The yield on 10-year bond traded higher to 1.80% and on 30-year bond traded up to 2.90%.

The U.S. dollar inched higher to $1.2288 to a euro and increased against the Japanese yen to 78.86 yen.

Immediate delivery futures of Texas crude oil increased 76 cents to $94.16 a barrel and Brent crude added $2.18 to $116.21, futures of natural gas fell 8 cents to $2.75 per mbtu and gasoline price edged up 7.10 cents to 307.37 cents a gallon.

In metals trading, copper decreased 1.1 cents to $3.36 per pound, gold added $4.60 to $1,607.10 per ounce and silver gained 8 cent to $27.93.