Markets In Europe, Asia Fall

123jump.com Staff
24 Feb, 2009
New York City

European markets close lower as earnings worries and weak banks drag investors sentiment lower. Business confidence in Germany falls to 25-year low. Markets in Asia close sharply lower as investors see no sign of the end of the current financial crisis. Nomura plans to raise $3 billion.

[R]10:10AM New York, 6:10PM Frankfurt – Stocks in Europe and Asia closed lower and in New York open lower.[/R]

Markets in Asia closed lower as investors see no sign of the end for the current financial crisis. Markets in Japan are closed at 25 years low and in Hong Kong and in India are trading at five-year lows.

Nomura Holdings Inc dropped 9.3% to 420 yen after it filed with the regulators to raise as much as 291 billon yen (or $3.1 billion). In India stocks recovered from the 2% loss at the opening on the worries that the sovereign debt rating may be cut to junk if the current central government spending continues.

In European trading banks and insurance companies traded lower. Dutch insurance giants Aegon NV and ING declined 12% and UK based Aviva and Prudential traded lower after hedge funds target the sector for short selling.

Norway based Norsk Hydro and the fifth largest aluminum company dropped 5% to Nkr 21.78 after JP Morgan cut its investment rating. The metal prices remain soft and other smelters in the industry continue to close smelting facility as demand softens. Vedanta Resources also shut its operations in India and bauxite operations in Jamaica are also closed temporarily.

Switzerland based anti-infection drug developer Basilea Pharmaceutica AG plunged 36% after it reported a loss. Separately, Novartis AG dropped after the chief executive made cautionary remarkts.

The maker of automotive iron casting George Fischer AG reported 72% decline in profit to Sfr 69 million (or $60 million).

Vodafone will cut 500 positions in UK of the total 10,000 to cut costs. The company should shift more work to India and other emerging markets as it looks for 1 billion pound savings by 2011.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 107.60 or 1.46% to 7,268.56, Hang Seng index in Hong Kong decreased 376.58 or 2.86% closed to 12,798.52, CSI 300 index in China lower 108.63 or 4.51% closed to 2,301.85. ASX 200 index in Australia decreased 19.60 or 0.58% closed to 3,331.60. The KL Composite index in Malaysia higher 6.24 or 0.70% closed to 894.07.

The Kospi Index in South Korea decreased 35.67 or 3.24% to close at 1,063.88. SET index in Thailand closed lower 3.67 or 0.84% to 431.32 and JSE Index in Indonesia decreased 16.57 or 1.26% closed to 1,295.87. The Sensex index in India decreased 21.15 or 0.24% closed to 8,822.06.

Europe Markets Review

In London FTSE 100 Index traded lower 46.68 or 1.21% to 3,804.05, in Paris CAC 40 Index decreased 34.56 or 1.27% to 2,693.31 and in Frankfurt DAX index traded lower 75.11 or 1.91% to 3,861.34. In Zurich trading SMI decreased 101.45 or 2.11% to 4,695.67.