Cisco View Lowers U.S. Stocks, ECB, BoECut Rates

123jump.com Staff
06 Nov, 2008
New York City

U.S. stocks traded lower after Cisco estimated sales decline of 10% in the current quarter and News Corp reported weak results. European markets fell despite a rate cut in the region. The ECB and Swiss National Bank cut rate by 50 basis points and the Bank of England lowered it by 150 basis points.

[R]10:10 AM New York – Global markets fell. The central banks in UK, Europe and Switzerland lowered key lending rates. Asian markets fall. Cisco estimates sales decline in the second quarter.[/R]

U.S. stocks traded lower in the early morning trading after Cisco lowered its sales outlook and a rise in unemployment claims. European markets traded lower after the Bank of England, European Central Bank and Swiss National Bank lowered key lending rates.

Cisco systems Inc. ((CSCO)) dropped after the company guided 10% decline in sales in the fiscal second quarter reversing its earlier guidance of 8.5% increase.

October retail same store sales declined as consumers lower spending and look for discounts. Wal-Mart Stores sales rose 2.4% and sales at Costco Wholesale Corp declined 1% on stronger dollar. Target sales dropped 4.8%.

Macy’s sales declined 5.8% and sales at Neiman Marcus Group dropped 27%. Apparel retailer Gap Inc sales declined 16% and Limited Brands sales declined 9%.

The Bank of England lowered its key lending rate by 1.5% and the European Central Bank and the Swiss National Bank lowered their key lending rates by 0.5%. The ECB lowered the rate second time in less than four weeks to 3.25% and President Jean-Claude Trichet hinted that future rate cuts may be necessary if global financial markets remain weak for a protracted period.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 622.10 or 6.53% to 8,899.14, Hang Seng index in Hong Kong decreased 1,050.12 or 7.08% closed to 13,790.04 CSI 300 index in China lower 41.64 or 2.46% closed to 1,649.78. ASX 200 index in Australia decreased 186.90 or 4.31% to close 4,149.70. The KL Composite index in Malaysia lower 19.29 or 2.11% closed to 895.95.

The Kospi Index in South Korea decreased 89.28 or 7.56% to close at 1,092.22. SET index in Thailand closed higher 5.57 or 1.22% to 462.93 and JSE Index in Indonesia decreased 58.38 or 4.27% to 1,307.90. The Sensex index in India decreased 385.79 or 3.81% closed to 9,734.22.

Europe Markets Review

In London FTSE 100 Index traded lower 191.43 or 4.23% to 4,339.30, in Paris CAC 40 Index decreased 152.84 or 4.22% to 3,465.27 and in Frankfurt DAX index traded lower 252.26 or 4.88% to 4,914.61. In Zurich trading SMI decreased 178.58 or 2.89% to 5,998.57.