Global Markets Slide; Nasdaq Drops 3.4%

123jump.com Staff
22 Jun, 2009
New York City

The World Bank

[R]4:00 PM New York, 9:00 PM London, 6:00 AM Sydney – The World Bank’s cautious outlook for the global economies dragged world market indexes. The benchmark indexes in the U.S. and Europe declined between 2% and 3% and markets in Canada, South America and Mexico dropped 4% or more.[/R]

U.S. benchmark indexes dropped between 2% and 3.4% after the World Bank report revised its estimate of the world economic contraction to 2.7% from 1.9%. The crude oil and copper prices trade lower. Walgreen third quarter profit declines 8.7% on sales rise of 8%. Visa Inc surges. Banks closed lower after two more directors at Bank of America resigned.

UK stocks closed lower after weakness in global markets. Merger and deal news dominated trading sentiment. Xstrata proposal to acquire Anglo American was rejected by its board. UK home repossessions were lowered to 65,000.

Business sentiment among large manufacturers improves in June quarter as talks of economic recovery raise expectations. Japan agrees to advance emergency loan of $1 billion to Japan Airlines, lower than $2 billion sought by the airline. Nissan and NEC are partnering to make electric cars in the U.S.

Stocks in Mumbai trading opened higher on the expectations of higher 3G license revenues to the government but deteriorated in the afternoon. The Worlds Bank forecasts global economy to contract 2.9% in 2009 from previous decline of 1.7% in March.

In Sydney, Australia trading iron ore and copper miners gained after the Xstrata offered a ‘merger of equals’ to Anglo American. BHP Billiton and Fortescue Metals closed higher. NAB jumped after it agreed to acquire Aviva Australia for A$825 million.

North American Markets

Dow Jones Industrial Average decreased 200.72 or 2.4% to a close of 8,339.01, S&P 500 Index decreased 28.19 or 3.1% to 921.23, and Nasdaq Composite Index edged lower 61.28 or 3.4% to close at 1,766.19. Toronto TSX Composite Index closed down 453.77 or 4.4% to 9,834.18.

Of the stocks in S&P 500 index, 454 increased, 45 declined and 1 was unchanged.

Massey Energy Company led the decliners in the S&P 500 index with a loss of 13% followed by losses in AK Steel Holding of 13%, in Allegheny Technologies Incorporated of 12%, in Titanium Metals of 11.7% and in CB Richard Ellis of 11.4%.

Frontier Communication led gainers in the S&P 500 index with a rise of 2.9% followed by gains in of Centerpoint Energy 2.9%, in Integrys Energy of 2.7% and McCormick of 1.8%.

South American Markets Indexes

Mexico Bolsa Index decreased 960.04 or 4% to 23,314.68. Brazil Bovespa Stock Index decreased 1,878.79 or 3.97% to 49,494.80.

Argentina Merval Index decreased 4.1%, Chile Stock Market Select index declined 2.5%, Peru Lima General Index declined 5.3% and Colombia IGBC General Index increased 0.4%.

Europe Markets Review

In London FTSE 100 Index closed lower 111.88 or 2.57% to 4,234.05, in Paris CAC 40 Index decreased 98.02 or 3.04% to close at 3,123.25 and in Frankfurt DAX index lower 146.06 or 3.02% to close at 4,693.40. In Zurich trading SMI decreased 111.22 or 2.05% to close at 5,310.37.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 40.01 or 0.41% to 9,826.27, Hang Seng index in Hong Kong increased 138.62 or 0.77% to 18,059.55, CSI 300 index in China higher 2.56 or 0.08% to 3,082.56. ASX 200 index in Australia increased 18.60 or 0.48% to 3,918.20. The KL Composite index in Malaysia closed lower 13.53 or 1.28% to 1,045.97.

The Kospi Index in South Korea increased 16.37 or 1.18% to close at 1,399.71.SET index in Thailand closed lower 6.69 or 1.14% to 582.29 and JSE Index in Indonesia decreased 15.44 or 0.78% to 1,975.03. The Sensex index in India decreased 195.67 or 1.35% to 14,326.22.

Commodities, Metals, and Currencies

Crude oil decreased $2.52 to close at $67.50 a barrel for a front month contract, natural gas decreased 10 cent to $3.93 per mBtu and gasoline decreased 6.5 cents to 185.97 cents.

Wheat futures closed down 9.25 cents in Chicago trading to $5.46 a bushel. Sugar increased 0.17 cent in trading at 16.24 cents a pound. Soybean future closed down 25 cents to $9.81 a bushel.

Gold decreased $15.20 in New York trading to close at $921.00 per ounce, silver closed up $0.01 to $13.72 per ounce and copper for the front month delivery decreased 5.20 cents to $2.14 per pound.

Dollar edged lower against euro to $1.3944 and closed down against the Japanese yen to 96.26.

Yields on 10-year U.S. bonds decreased to 3.68% and with 30-year maturities closed down at 4.44%.