U.S. and European Markets Extend Global Sell-off

Nichole Harper
17 Apr, 2015
New York City

Market indexes on Wall Street slumped more than 1%, European markets extended weekly losses and China curbed shadow financing to speculate in stock market. U.S. consumer confidence improved and the cost of living rose in March for a third month in a row.

[R]2:05 PM New York – Market indexes on Wall Street slumped more than 1%, European markets extended weekly losses and China curbed shadow financing to speculate in stock market. U.S. consumer confidence improved and the cost of living rose in March for a third month in a row.[/R]

Stocks on Wall Street turned lower as earnings jitters resurfaced, weak markets in Asia and Greek debt saga continued.

Market indexes on Wall Street declined more than 1% after American Express reported weaker-than-expected results and equity indexes have struggled since reaching new highs on March 2.

S&P 500 index has traded sideways for the last six weeks largely on the weak earnings outlook, depressed conditions in the energy complex and stretched valuations.

The index of consumer prices increased 0.2% in March from February, the Department of Labor said.

On Wall Street, Tollbooth Strategy Index dropped 1.2% or 124.15 to 10,540.27.

S&P 500 index dropped 21.44 or 1% to 2,083.69 and the Nasdaq Composite Index declined 70.55 or 1.4% to 4,937.62.

Crude oil in New York slipped 68 cents to $56.03 a barrel and gold jumped $6.10 to $1,204.10 an ounce.

European markets struggled after Greek debt negotiations hit another road block and the government lagged in implementing financial reforms and step up revenue collection.

In Asia, China made more shares available for short selling and Chinese regulators banned the margin account trading after the one-year-long rally doubled the Shanghai index.

U.S. Movers

American Express Company ((AXP)) declined 4.5% or $3.64 to $77.27 after the consumer lending services provider reported total revenues in the first-quarter ending in March dropped 3% to $7.95 billion from a year ago period.

Net income in the quarter jumped 6% to $1.53 billion or $1.48 per diluted share compared to $1.43 billion or $1.33 from the same quarter last year.

Revenue from U.S. card services segment rose 6% to $934 million but revenues from international card services segment tumbled 16% to $134 million.

General Electric Company ((GE)) rose 21 cents to $27.49 after the diversified conglomerate reported total revenues in the first-quarter ending in March tumbled 12% to $29.36 billion from a year ago period.

Net in the quarter swung to a loss of $13.57 billion or $1.35 per diluted share compared to profit of $3 billion or 30 cents from the same quarter last year.

GE Capital revenues in the quarter plunged 39% to $5.98 billion and industrial segment revenues dropped 1% to $24.36 billion and revenue from its oil & gas business declined 8% to $3.96 billion.

European Markets

European market indexes declined for the second day after reaching new highs on Wednesday as Greek saga dragged and weakness in the U.S. and Asia contributed to market jitters.

In London trading, FTSE 100 index slumped 1% or 72.60 to 6,987.85 and in Frankfurt the DAX index declined 1.8% or 217.40 to 11,781.46.

In Paris, CAC 40 index dropped 1.1% or 58.76 to 5,165.73.

For the week, FTSE 100 index in London declined 1.4%, DAX index in Frankfurt plunged 5.5% and CAC 40 index in Paris fell 1.9%.

Accor SA gained 1.2% to €49.46 after the France-based hotels operator said revenues in the first-quarter ending in March climbed 7.9% to €1.23 billion from revenues of €1.135 billion in a year ago period.

Nestle SA fell 0.5% to 76.25 Swiss francs after the Switzerland-based food and beverage maker reported total group sales increased 0.5% to 20.92 billion francs from 20.82 billion francs in a year ago period.

Nestle confirmed organic growth forecast for the full-year of about 5% and improvements in margin and operating profit.

Syngenta AG declined 4.5% to 327.90 Swiss francs after the Switzerland-based insecticides maker reported group sales in the first-quarter ending in March plunged 14% to $4.02 billion from $4.68 billion in a year ago period.

The company said total integrated sales in the quarter declined 14% to $3.85 billion after sales dropped 13% in Europe, Africa and the Middle East and tumbled 17% in each to North America and Latin America. Sales from Asia Pacific region slumped 10%.

Asian Markets

Stocks in Tokyo struggled as investors awaited corporate earnings next week. Yen firmed up. Nikkei 225 declined to the lowest not seen since April 7 and the broader Topix gained for the third week in a row.

Japanese stocks traded lower and the Nikkei 225 trimmed weekly advance and closed at the lowest since April 7.

The consumer confidence index in March increased to 41.7 in March compared to 40.9 in February, the Cabinet Office s said today.

The Nikkei 225 Stock Average declined 232.89 or 1.2% to 19,652.88 and the broader Topix index slipped 10.73 to 1,588.69.

For the week, Nikkei 225 slumped 1.3% however, the Topix index truncated third weekly gain in a row.

The yen closed at 118.83 against a dollar.

Stocks in Mumbai rested in Friday’s trading and for the week popular indexes gained more than 1.5%.

Rupee weakened 4 paisa to 62.30 against one dollar.

The Sensex Index declined 233.94 or 0.8% to close at 28,442.10. The CNX Nifty dropped 100.70 or 1.2% to 8,606.

For the week, Sensex Index slipped 1.6% and CNX Nifty dropped 2%.

Reliance Industries Limited slid 0.1% to ₹926.85 after the industrial and petrochemical conglomerate said net in the fourth-quarter climbed 11% to ₹6,243 crore.

Net revenues in the quarter plunged 34.8% to ₹67,470 crore.

Tata Consultancy Services Limited declined 4.2% to ₹2,473.90 the largest information technology services provider based in India said net income in the fourth-quarter jumped 8.35% to ₹5,773 crore.

Net revenues in the quarter slid 1.14% to ₹24,220 crore.