New Worries of Bank Losses; AIG Loss

123jump.com Staff
29 Feb, 2008
New York City

German retail sales adjusted for seasonality rose 1.6% in January and December estimates of sales were revised downwards to a loss of 0.2% from a loss of 0.1%. Inflation in February in Germany was reported at 2.9%, the same rate as in January. Volkswagen reported annual sales increase of 3.8% but earnings surged 50% to 4.12 billion euros or 10.43 euros per share. Dexia reported fourth quarter profit decline 25% to 587 million euros on invetment write-downs.

[R]10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – Banks and financial stocks fell after UBS estimated credit markets related losses to top $600 billion. January retail sales in Germany increased 1.6%.[/R]


European Markets

In London FTSE 100 Index closed lower 81.40 or 1.36% to 5,884.30, in Paris CAC 40 Index decreased 74.57 or 1.53% to close at 4,790.66 and in Frankfurt DAX index lower 114.39 or 1.67% to close at 6,748.13. In Zurich trading SMI decreased 129.09 or 1.68% to close at 7,533.86.

North American Markets indexes

Dow Jones Industrial Average declined 315.79 or 2.51% to a close of 12,266.39, S&P 500 closed down 37.03 or 2.71% to 1,330.65, and Nasdaq Composite Index traded down 60.09 or 2.58% to a close of 2,271.48. In Toronto TSX Composite closed lower 289.36 or 2.09% to close at 13,873.98.

Of the 30 stocks in Dow Jones Industrial Average, none closed higher, 30 closed lower, and none were unchanged.

AIG led the decliners in the index with a loss of 7.3% followed by losses in General Motors of 4.6%, in Citigroup of 4.4%, in Alcoa of 4.2%, in American Express of 4.1%, and in Bank of America and JP Morgan Chase of 4%. None of the stocks in the index closed higher.

Of the stocks in S&P 500, 93 closed higher, 406 fell, and 1 was unchanged. Of the index stocks, 5 rose more than 3% and 184 stocks fell more than 3%.

Titanium Metals led the decliners in the S&P 500 index with a loss 16.6% followed by declines in Sprint of 9.9%, in DR Horton of 9.5%, in First Horizon of 9.4%, in CIT Group of 8.5%, and in Pulte Homes of 8.4%. MBIA fell 8.2%.


South American Markets Indexes

In Latin Markets Mexico the decliners in the region with a fall of 3.49% followed by decreases in Brazil of 2.89%, in Chile of 2.3%, in Argentina and Colombia of 1.6%, in Peru of 1.5%, and in Venezuela of 0.5%.

Asian Markets

In Tokyo Nikkei 225 Index closed lower 322.49 or 2.32% to 13,603.02, in Hong Kong Hang Seng index decreased 260.02 or 1.06% closed to 24,331.67. Australia ASX 200 index decreased 79.10 or 1.40% to close 5,572.10.

In South Korea Kospi Index decreased 24.55 or 1.41% to close at 1,711.62, in Thailand SET index closed higher 3.64 or 0.43% to 845.76 and Indonesia JSE Index edged decreased 34.37 or 1.25% to 2,721.94. Sensex index in India decreased 245.76 or 1.38% to 17,578.72.


Bond Yields decreased on 10-year U.S. bonds to 3.52% and on 30-year bonds declined to 4.41%.

Commodities, Metals, and Currencies

Crude oil decreased $0.95 to close at $101.64 per barrel for a front month contract, natural gas decreased 7 cents to $9.37 per mBtu, and gasoline futures increased 1.93 cents to close at 251.50 cents per gallon.

Gold increased $7.50 in New York trading to close at $975.00 per ounce, silver closed up 20 cents to $19.91 per ounce, and copper for front month delivery decreased 2.30 cents to 385.50 per pound.

Wheat futures fell 7.90 cents in Chicago trading and closed at $10.86 per bushel. Sugar increased 1 cent to 14.62 cents per pound. Soybean future closed up 2.40 cents to $15.36 per bushel.

Dollar edged lower and traded near record lows against euro to $1.5193 and edged lower against yen to 103.91.