Asian markets posted narrow losses following Wednesday’s disappointing economic news from the West. The Kospi and ASX 200 both declined .2%, and Hong Kong’s Hang Seng dropped .3%, as Chinese banks dropped. Bucking the slide, China’s Shanghai Composite inched up 2 points to 2440. Markets in Japan were closed for a holiday.
European markets traded mixed, after the ECB said it would hold rates at 1%, and revealed that the bank had not discussed further rate cuts. The FTSE rose .2%, while the DAX dropped .2% and the CAC40 slipped .1%. Societe General shares tumbled 4.2% despite a positive earnings report.
US stocks fell, led by the Nasdaq’s sharp 1.2% drop to 3024. The S&P 500 shed .8% to 1392, and the Dow declined 62 points to 13207. Disappointing ISM data pressured stocks, outweighing a positive weekly unemployment report.
Currencies
The Australian dollar slumped .7% to 1.0258, as a drop in metals prices hit the commodity currency. The pound and yen both eased .1% to 1.6178 and 80.21 respectively, while the euro and Swiss franc traded fractionally lower.
Economic Outlook
The ISM non-manufacturing index fell to 53.5 from 56, well below forecasts for 55.5. Weekly unemployment claims fell to 365K, a big jump from last week’s 392K.
Stocks And Energy Tumble As Payroll Data Falls Short
EquitiesAsian markets traded mostly lower ahead of the key US payroll report. The Hang Seng fell .8% to 21086, the ASX 200 dropped .7%, and the Kospi eased .3% to 1989. China’s Shanghai Composite once again gained, in anticipation of a new round of government easing. Markets in Japan remained closed for a holiday.
Weaker than forecast US jobs data sent Western shares sharply lower. The nonfarm payroll report indicated the economy had added just 115K jobs, significantly weaker than the 170K expected.
The FTSE and CAC40 both dropped 1.9%, and the DAX slumped 2%. Nokia shares tumbled 7.3% after the board elected a new chairman on Thursday.
The Dow dropped for its 3rd straight session, erasing 168 points to 13038. The Nasdaq tumbled 2.3% to 2956, and the S&P 500 dropped 1.6% to 1369.
Nasdaq Sinks 2.3%
LinkedIn surged 7.2% after beating forecasts on both profits and revenue, prompting multiple upgrades.
Currencies
The dollar traded higher as traders shifted into “risk off” mode. The Australian dollar sank .8% to 1.0188, and the Canadian dollar dropped .6% to .9952. The euro and Swiss franc both dropped .5%, while the pound eased a modest .2%. The Japanese yen benefited from the flight to safety, climbing .4% to 79.87.
Economic Outlook
Despite the disappointing payroll number, the unemployment rate improved slightly, slipping to 8.1%, its best level since 2009. In Canada, the Ivey PMI report clocked in at 52.7, far below estimates of 62.6.
Asia Tumbles As France And Greece Replace Incumbents
EquitiesAsian markets tumbled on Monday, following Friday’s weak US jobs data, and as elections in France and Greece replaced the incumbents. The Nikkei plunged 2.8% to 9119, a 3-month low after returning from a holday, and the Kospi sank 1.6% to 1956. Australia’s ASX 200 tanked 2.2%, its biggest loss of 2012, as mining giants Rio Tinto and BHP Billiton both slumped more than 4%. The Hang Seng tumbled 2.6%, while the Shanghai Composite closed flat.
Nikkei Tumbles 2.8%, Adding To Its Recent Slide
European markets gained, but volume was light due to a bank holiday in the UK. The CAC40 rallied 1.7%, and the DAX edged up .1%.
US stocks ended mixed, as the Dow declined 30 points to 13009, while the Nasdaq and S&P 500 inched up fractionally.
Currencies
The euro fell as low as 1.2962, but mostly recovered to close down .2% to 1.3052, while the Swiss franc slipped .3% to 1.0863. The pound and Canadian dollar gained .2%, and the Australian dollar inched up .1%. The yen eased fractionally to 79.90.
Economic Outlook
Consumer credit blew past estimates, surging to 21.4B from last month’s 9.3B. The increase was the largest since November 2001.
European Markets Tumble On Political Fears
EquitiesAsian markets traded mostly higher, as the region rebounded from Monday’s slide. The Nikkei gained .7% to 9182, the Kospi rose .5% to 1967, and the ASX 200 edged up .3%. In greater China, markets closed lower, as he Hang Seng slipped .3% to 20485, and the Shanghai Compite eased .1% to 2449, snapping a 4-day winning streak.
The newly elected leftist leader of Greece, Alexis Tsipras rejected the terms of the international Greek bailout, raising the likelihood the heavily indebted country will be unable to raise further capital from the European bailout funds. European markets sank, as the CAC40 tumbled 2.8%, the DAX slumped 1.9%, and the FTSE fell 1.8%. In Greece, the Athens General Index dropped 3.6% to 620.52, its lowest level since 1992, extending Monday’s steep 7% drop.
US Stocks closed down, but fared much better than their European peers. The Dow had dropped as much as 198 points in the early morning, but mostly recovered to close down 76 points to 12932. The S&P 500 and Nasdaq both shed .4%.
Currencies
The drop in metals pressured the Australian dollar, which fell .7% to 1.0114, due to its position as a major metal exporter. The euro and Swiss franc both declined .6%, and the Canadian dollar slipped .3% to .9985. The pound and yen both closed up fractionally.
Economic Outlook
The possibility of a Greek default may become a reality if the newly elected government can form a coalition, and the markets will be very sensitive to the ongoing political developments.
Dow Drops For 6th Straight Day On European Debt Worries
EquitiesAsian markets slumped on Wednesday, as fears over Greece’s political fate spooked investors. The Nikkei dropped 1.5% to 9045, while the Kospi and ASX 200 both slumped .9%. China’s Shanghai Composite sank 1.7%, and the Hang Seng shed .8%, as Chinese oil companies fell sharply due to the drop in oil.
European banks tanked, dropping 3.3%, although the major European indexes closed mixed. The FTSE fell .4%, the CAC40 slipped .2%, while the DAX gained .5%.
US stocks closed lower, but once again managed to erase most of their early losses. The Dow fell 97 points to 12835, extending its losing streak to 6 days. The Nasdaq fell .4% to 2935, and the S&P 500 skidded .7% to 1355.
Dow Continues To Slide
Macy’s fell 3.7% despite reporting earnings which beat estimates, after the company failed to raise its full-year profit forecast.
Currencies
The euro fell below 1.30 to 1.2941, down .5% as mounting concerns over Greece and Spain continue to pressure the single-currency. The Swiss franc also declined .5% to 1.0776, continuing to move in lock-step with the euro. The pound eased .1% to 1.6141, the Australian dollar fell .6% to 1.0056, and the Canadian dollar slipped .2% to 1.0013, crossing below parity. Bucking the downtrend, the yen edged up .3% to 79.62.
Economic Outlook
A report released on Wednesday suggests Spain will need another $45 billion to aid its banking industry, implying another bailout will be needed.