Consumer Worries Drag U.S., World Markets Lower

123jump.com Staff
15 Jan, 2010
New York City

U.S. stocks declined on the worries that consumer may not still be healthy. JPMorgan in its latest quarterly earnings booked a loss in its retail banking unit and increased provision of loan losses. The dollar gained against the euro and gold closed lower. Commodities fell.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. stocks declined on the worries that consumer may not still be healthy. JPMorgan in its latest quarterly earnings booked a loss in its retail banking unit and increased provision of loan losses. The dollar gained against the euro and gold closed lower. Commodities fell.[/R]

U.S. benchmark indexes decreased 1% and commodities fell and U.S. Treasuries advanced after JP Morgan Chase net tripled but retail banking unit reported a loss and the bank increased its provision of consumer loan losses. Intel quarterly revenues rose 29% from a year ago but for the year declined.

Interactive Data Corp surged 11%, after its UK parent Pearson Plc said it may sell its stake in the company. Bare Escentuals Inc soared 42% after it agreed to be acquired by Japan based Shiseido Co for $1.7 billion in cash. Manitowoc Co plans to sell $400 million in unsecured debt and not in stocks to refinance its term loans.

European markets fell sharply and German bond yield gained and the euro fell on the growing worries related to Greek budget deficit. Spain, Portugal and Italy are also worrying central bank regulators.

European banks and brokerages declined after JPMorgan increased consumer loan loss provisions. Solar energy related companies declined as Germany may lower subsidies to the industry.

November Euro area trade surplus was €4.8 billion and annual inflation increased 0.9%.

The UK benchmark index declined 1.3% for the week and dropped nearly 0.7% today. Stocks weakened after commodities edged lower and the pound traded volatile against the euro and the dollar. The asset manager Man Group declined after assets under management shrank. Experian reported flat quarterly revenues. QinetiQ Group plunged 12%.

Stocks in Japan edged higher led by strength in banks. Japan is expected to restructure JAL through a bankruptcy court on Jan 19. Japan wholesale prices fall 5.3% in 2009. Sony and Nintendo December US game console surge.

China’s foreign exchange reserves surged 23% to $2.4 trillion in 2009 as trade surplus drives new fund flows of $453 billion. Foreign direct investment in December more than doubled to $12.1 billion. Automakers rise on the brisk demand for automobiles despite revised taxes in 2010.

A barrage of earnings drove market trading in Mumbai. Engineers India Ltd soars after government plans a stake sale of 10%. Maharashtra Seamless Ltd secures export orders. HDFC Bank net surges 32%. Tata Consultancy quarterly net soared 33%. GTL acquires for $1.8 billion Aircel tower assets.

Australian banks advanced and Commonwealth Bank said its cash profit for the first half increased 44%. Macarthur coal lifted its first half net earnings forecast to a range between A$37 million and A$42 million.

North American Markets

Dow Jones Industrial Average decreased 106.72 or 1% to a close of 10,603.83, S&P 500 Index edged lower 12.87 or 1.1% to 1,135.59, and Nasdaq Composite Index decreased 28.83 or 1.2% to close at 2,287.91. Toronto TSX Composite Index decreased 83.16 or 0.7% to 11,721.22.

Latin American Markets Indexes

Mexico Bolsa Index decreased 390.93 or 1.2% to 32,338.65 and Brazil Bovespa Stock Index fell 823.12 or 1.2% to 68,978.30.

Europe Markets Review

In London FTSE 100 Index closed lower 42.83 or 0.78% to 5,455.37, in Paris CAC 40 Index decreased 61.39 or 1.53% to close at 3,954.38, in Frankfurt DAX index lower 112.91 or 1.89% to close at 5,875.97. In Zurich trading SMI decreased 51.40 or 0.78% to close at 6,576.02.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 74.42 or 0.68% to 10,982.10, and Hang Seng index in Hong Kong decreased 62.79 or 0.29% to 21,654.16, and CSI 300 index in China higher 13.69 or 0.39% to 3,482.74. ASX 200 index in Australia increased 1.60 or 0.03% to 4,899.60. The FTSE Bursa KL Composite index in Malaysia was higher 3.87 or 0.30% to 1,298.58.

The Kospi Index in South Korea increased 16.03 or 0.95% to close at 1,701.80. SET index in Thailand closed lower 2.90 or 0.39% to 746.52. JSE Index in Indonesia increased 1.91 or 0.07% to 2,647.09. The Sensex index in India decreased 30.57 or 0.17% to 17,554.30.

Commodities, Metals, and Currencies

Crude oil decreased $1.36 to $78.03 a barrel for a front month contract, natural gas edged up 11 cents to $5.70 per mBtu and gasoline decreased 2.80 cents to 205.07 cents.

Soybean future closed down 10.00 cents to $9.74 a bushel. Wheat futures closed down 17.27 cents in Chicago trading to $5.10 a bushel. Sugar closed down 0.14 cents at 27.62 cents.

Gold decreased $12.50 in New York trading to close at $1,130.00 per ounce, silver closed down $0.21 to $18.45 per ounce and copper for the front month delivery decreased 2.0 cent to $3.36 per pound.

Dollar closed higher against euro to $1.4375 and edged lower against the Japanese yen to 90.82.

Yield on 10-year U.S. bonds decreased to 3.68% and with 30-year maturities closed lower at 4.58%.