Markets in New York, Europe, Brazil Drop

123jump.com Staff
14 Jan, 2009
New York City

Stocks in New York and European trading fell sharply. U.S. retail sales fell more than expected in December and European stocks declined after large losses at Deutsche Bank and a need for large capital at HSBC. Markets in Brazil, Canada, UK, Germany and Switzerland dropped sharply.

[R]5:00PM New York – 11:00PM Frankfurt, 4:00AM Sydney – Stocks in New York and European trading fell sharply. U.S. retail sales fell more than expected in December and European stocks declined after large losses at Deutsche Bank and a need for large capital at HSBC.[/R]

U.S. retail sales in December dropped 2.7%, sharply higher than what most economists had expected and the Commerce Department revised the decline in November to 2.1% from 1.8% fall. The weak job market, tight credit and falling home values contributed to the weakness in consumer spending.

General Electric, Motorola and Barclays are the latest companies to announce job elimination. Financials, retailers and industrial companies led the decliners in New York trading.

Stocks in London fell sharply after Morgan Stanley estimated a need of as much as $30 billion of additional capital for HSBC. Barclays suggested that it may eliminate additional 2,000 jobs. Stocks of banks and other financial institutions fell after Man Group asset under management declined.

Deutsche Bank reported sharply higher losses in the latest quarter as real estate linked securities declined in values.

Stocks in Shanghai soared 4% and in Hong Kong gained 0.3%. China revised its 2007 economic growth to 13% from 11.9% but Deutsche Bank estimated that the nation will face the sharpest economic slowdown in 10 years. China trimmed fuel prices between 2% and 3%. RBS sold its stake in Bank of China.

In weak trading Tokyo, stocks edged higher. Toshiba and Fujistsu are exploring a merger of hard disk business. Of the Nikkei 225 stocks, 136 increased, 73 declined, and 16 were unchanged. Casio Computer led advancers in the index shares with a rise of 8.2% followed by NSK Insulators gaining 6.3%.

Stocks in Mumbai rose on the expectations of an out of court settlement between feuding billionaire Ambani brothers. Reliance Industries surged more than 10% and Reliance Capital gained 7.6%. HDFC Bank profit surged 45%, including the results of acquired Centurion Bank.

Australian home loans rise 1.3% in November. Wesfarmers cuts interim profit forecast to A$850 million to A$880 million on increasing derivative loss provisions. Rio Tinto will slow Argyle underground project. HFA Holdings led decliners in the ASX 200 index with a loss of 11%.

American Markets Reviews

Dow Jones Industrial Average fell 248.42 or 2.94% to a close of 8,200.14, S&P 500 decreased 29.17 or 3.35% to 842.62, and Nasdaq Composite Index decreased 56.82 or 3.67% to a close of 1,489.64. In Toronto TSX Composite decreased 273.19 or 3.05% to close at 8,688.36.

In South American trading Brazil Bovespa Index decreased 3.95% or 1,562.46 to 37,981.77 and Mexico Bolsa Index dropped 3.2% or 678.07 to 20,369.23.

Argentina decreased 3.9%, Chile declined 0.78%, Peru fell 1.9% but Colombia declined 1.8%.

U.S. Stock Movers

Of the stocks in S&P 500 index, 20 increased, 480 declined and none were unchanged.

Citigroup Inc led decliners in the index with a loss of 23% followed by losses in Huntington Bancorp of 16.3%, in CIT Group of Inc of 14.8%, in JDS Uniphase of 13.9%, in Principal Financial of 11.3% and in Archer Daniels of 13.4%.

Freeport McMoran, Hartford Financial Services and Consol Energy and Lincoln National Corp and dropped more than 10%.

VF Corp led gainers in the index with a rise of 6.5% followed by gains in Medco Health Solution of 4.4%, in Raytheon Corp of 3.3%, in Allergan Inc of 3.6%, in Moody’s Corp of 3.4%, in Lexmark International of 2.9% and in Yahoo! Inc of 2.5%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 24.54 or 0.29% to 8,438.45, Hang Seng index in Hong Kong increased 36.56 or 0.27% closed to 13,704.61 CSI 300 index in China higher 79.06 or 4.21% closed to 1,955.24. ASX 200 index in Australia increased 32.40 or 0.89% closed to 3,687.00. The KL Composite index in Malaysia lower 0.24 or 0.03% closed to 913.46.

The Kospi Index in South Korea increased 14.97 or 1.28% to close at 1,182.68. SET index in Thailand closed higher 5.70 or 1.31% to 439.51 and JSE Index in Indonesia decreased 12.83 or 0.92% closed to 1,386.91. The Sensex index in India increased 299.13 or 3.30% closed to 9,370.49.

Europe Markets Review

In London FTSE 100 Index closed lower 218.51 or 4.97% to 4,180.64, in Paris CAC 40 Index decreased 145.89 or 4.56% to close at 3,052.00 and in Frankfurt DAX index lower 214.59 or 4.63% to close at 4,422.35. In Zurich trading SMI decreased 155.52 or 2.81% to close at 5,378.81.

Commodities, Bonds and Currencies

Yields on 10-year bond declined to 2.20% and on 30-year bonds increased to 2.89%.

The U.S. dollar increased to $1.3167 to a euro and against the Japanese yen fell to 89.13 yen.

Immediate futures prices of Texas crude oil decreased to $0.32 to $37.46 a barrel, for natural gas decrease 22 cents to $4.96 per mbtu and gasoline prices increased 2.57 cents to 117.46 cents a gallon.

Futures of corn increased 4 cent to $3.66, soybean was unchanged to $9.71, sugar decreased 0.1 cents to 11.43 a pound and wheat increased 3.50 cent to $5.74 a bushel.

In metals trading, copper prices fell 5.70 cents to $1.49 per pound, gold decreased $8.70 to $812.00 per ounce and silver fell 11 cents to $10.56.