Weak Durable Orders, New Home Sales Plunge

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

U.S. stocks edged lower after the new home sales plunged 40% from a year ago in October. The new orders for durable goods orders declined 6.2% in October and orders excluding volatile transportation dropped 4.4%. Stocks in the early hours traded sideways.

[R]11:00 AM New York – U.S. stocks edged lower after economic reports showed further weakness in the economy.[/R]

The latest economic data from the U.S. showed weakening economy. The new orders for durable goods orders fell the most in last two years by 6.2%. Excluding transportation, orders fell 4.4% and excluding defense, new orders dropped 4.6%.

Initial claims for the weekly jobless claims at the end of last week declined 14,000 to 529,000. The seasonally adjusted insured unemployment at the end of last week declined to 3.96 million from 4.02 million.

Seasonally adjusted new home sales in October fell 5.3% from September to 433,000. The home sales plunged 40% from 723,000 a year ago.

The Peoples'' Bank of China today lowered the key one-year lending rate and the deposit rate to 5.58% and 2.52% respectively. Monetary authorities also lowered the cash reserve requirement of biggest banks to 16% from 17% and for smaller banks to 14% from 16% effective December 5.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 110.71 or 1.33% to 8,213.22, Hang Seng index in Hong Kong increased 490.85 or 3.81% closed to 13,369.45 CSI 300 index in China higher 9.20 or 0.50% closed to 1,843.50. ASX 200 index in Australia decreased 83.40 or 2.30% to close 3,540.00. The KL Composite index in Malaysia lower 3.81 or 0.44% closed to 856.37.

The Kospi Index in South Korea increased 46.46 or 4.72% to close at 1,029.78. SET index in Thailand closed higher 3.37 or 0.86% to 395.22 and JSE Index in Indonesia increased 39.01 or 3.38% to 1,193.15. The Sensex index in India increased 331.19 or 3.81% closed to 9,026.72.

Europe Markets Review

In London FTSE 100 Index traded lower 77.16 or 1.85% to 4,094.09, in Paris CAC 40 Index decreased 69.78 or 2.17% to 3,139.78 and in Frankfurt DAX index traded lower 69.98 or 1.53% to 4,490.44. In Zurich trading SMI decreased 73.55 or 1.34% to 5,404.84.