World Markets Track Lower on U.S. Jobs Report

123jump.com Staff
02 Oct, 2009
New York City

U.S. market indexes tracked lower after the latest job reports. September payrolls fell more than expected as the jobless economic recovery appears to be uneven. Immediate futures of crude oil, copper and agriculture commodities fell.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – U.S. market indexes tracked lower after the latest job reports. September payrolls fell more than expected as the jobless economic recovery appears to be uneven. Immediate futures of crude oil, copper and agriculture commodities fell.[/R]

U.S. stocks closed lower as weak job market signaled uneven and protracted economic recovery. Markets in Europe tracked lower and resources driven markets like Canada, Brazil and South Africa edged lower too.

Investors are keeping one eye on the upcoming earnings season and one eye on the stretched market valuations. Ticker, a sister publication of 123jump.com is estimating earnings decline between 20% and 24% in the third quarter with energy sector leading.

The U.S. job market continues to signal weakness as more people job loss in September. September non-farm payroll declined 263,000 and unemployment rate increased in the month to 9.8% from 9.7% in August. Construction, manufacturing and retail trade led the declines.

Accenture Limited fourth quarter sales fell 14% and net income plunged 41%. Apple Inc increase after UBS revised the company rating. First Solar, Inc surged after the company was selected for the S&P 500 index to replace Wyeth.

London stocks declined after markets in Europe lost early momentum on the release of U.S. jobs report. UK home prices gained for the fifth month in a row. Mining companies fell on the market weakness. Xstrata Plc was asked to submit a formal offer in three weeks for Anglo American.

North American Markets

Dow Jones Industrial Average decreased 21.61 or 0.2% to a close of 9,487.67, S&P 500 Index fell 4.64 or 0.5% to 1,025.21, and Nasdaq Composite Index declined 9.37 or 0.5% to close at 2,048.11. Toronto TSX Composite Index decreased 113.43 or 1% to 10,958.33.

Of the stocks in S&P 500 index, 113 increased, 383 declined and 4 was unchanged.

New York Times led the decliners in the S&P 500 index with a loss of 5.6% followed by losses in Goodyear Tire of 5.4%, in Motorola Inc of 4.5%, in Johnson Controls of 4.4% and in DR Horton Inc of 4.6%.

Invesco Ltd led gainers in the S&P 500 index with a rise of 5.5% followed by gains in AIG 5.3%, in E*Trade Financial of 5% and in BB&T Corp of 4.6%.

South American Markets Indexes

Mexico Bolsa Index increased 90.40 or 0.3% to 28,678.66 and Brazil Bovespa Stock Index increased 712.66 or 1.2% to 61,171.99.

Argentina Merval Index closed up 0.1% and Chile Stock Market Select index decreased 0.06%, Peru Lima General Index edged down 1% and Colombia IGBC General Index decreased 0.01%.

Europe Markets Review

In London FTSE 100 Index closed lower 59.11 or 1.17% to 4,988.70, in Paris CAC 40 Index decreased 70.87 or 1.90% to close at 3,649.90, in Frankfurt DAX index lower 86.65 or 1.56% to close at 5,467.90. In Zurich trading SMI decreased 105.00 or 1.68% to close at 6,150.17.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 246.77 or 2.47% to 9,731.87, Hang Seng index in Hong Kong decreased 579.76 or 2.77% to 20,375.49, ASX 200 index in Australia decreased 99.40 or 2.11% to 4,601.70. The FTSE Bursa KL Composite index in Malaysia was lower 2.10 or 0.17% to 1206.25. Markets in China are closed till October 8.

SET index in Thailand closed lower 2.35 or 0.32% to 724.56. JSE Index in Indonesia increased 1.88 or 0.08% to 2,479.85. Markets in India were closed to mark the Gandhi Jayanti. Markets in Korea were closed too.

Commodities, Metals, and Currencies

Crude oil decreased $1.07 to $69.75 a barrel for a front month contract, natural gas edged up 24 cents to $4.71 per mBtu and gasoline decreased 2.20 cents to 173.59 cents.

Soybean future closed lower 33 cents to $8.85 a bushel. Wheat futures closed down 11.50 cents in Chicago trading to $4.41 a bushel. Sugar edged down 0.86 cents a pound to 23.78 cents.

Gold increased $3.40 in New York trading to close at $1,004.10 per ounce, silver closed down $0.26 to $16.18 per ounce and copper for the front month delivery decreased 5.5 cent to $2.68 per pound. Gold gained 8.75% in the third quarter.

Dollar edged lower against euro to $1.457 and closed higher against the Japanese yen to 89.80.

Yield on 10-year U.S. bonds increased to 3.22% and with 30-year maturities advanced to 4.00%.