U.S. Retail Sales Fall; EU, HK in Recession

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

The U.S. retail sales in October declined 2.8% from September and dropped 4.1% from a year ago. Motor vehicles and parts sales fell 23.4% and furniture sales declined 13.5%. The European Union economy shrank in the third quarter declined 0.2% matching the second quarter rate.

[R]10:15AM New York – U.S. retail sales decline. Europe and Hong Kong report two quarterly declines in economic growths. Nokia lowers its industry sales estimates of mobile handsets.[/R]

European Union economy shrank for the second quarter in a row. GDP in the third quarter shrank at 0.2% after declining at the same rate in the second quarter. The latest data from Eurostat, the statistical agency for the 15-member nation showed that several economies are shrinking in many nations in the union.

Germany led the countries in the region with a shrink of 0.5% followed by second quarterly declines in Italy and Ireland. Spain GDP declined for the first time this quarter.

Hong Kong in Asia is the first nation to report two quarterly declines in the economic growth.

Hong Kong reported shrink in the economy for the second quarter in a row. Third quarter seasonally adjusted GDP fell 0.5% after declining 1.4% in the second quarter. However, in the third quarter economy grew at 1.7% from a year ago quarter.

The U.S. retail sales were down in October as consumer keep tight grip on wallets and worry about their jobs. October retail sales dropped 2.8% from September and declined 4.1% from a year ago. The revised sales in the last three months ending in September declined 1.3%.

Sales of motor vehicles and parts fell 23.4% in the month and furniture sales declined 13.5%.

Asian markets edged higher on the back of 7% surge in New York trading. Commodities related stocks led the gainers in the region. BHP Billiton and Rio Tinto jumped nearly 6% after prices of copper, nickel and zinc advanced. Crude oil futures rose.

Nokia lowered its mobile hand set worldwide sales outlook for the industry to 1.24 billion from 1.26 billion. The mobile maker also suggested that sales in 2009 will decline further. Nokia estimated its global sales for the current quarter to decline to 330 million.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 223.75 or 2.72% to 8,462.39, Hang Seng index in Hong Kong increased 321.31 or 2.43% closed to 13,542.66 CSI 300 index in China higher 69.57 or 3.71% closed to 1,943.65. ASX 200 index in Australia increased 50.80 or 1.37% to close 3,748.10. The KL Composite index in Malaysia higher 1.06 or 0.12% closed to 881.65.

The Kospi Index in South Korea decreased 0.18 or 0.02% to close at 1,088.26. SET index in Thailand closed lower 3.50 or 0.81% to 429.97 and JSE Index in Indonesia increased 4.66 or 0.37% to 1,264.38. The Sensex index in India decreased 150.91 or 1.58% closed to 9,385.42.

Europe Markets Review

In London FTSE 100 Index traded higher 156.49 or 3.75% to 4,325.70, in Paris CAC 40 Index increased 81.79 or 2.50% to 3,351.25 and in Frankfurt DAX index traded higher 179.31 or 3.86% to 4,828.83. In Zurich trading SMI increased 134.37 or 2.34% to 5,874.41.