Stocks And Energy Tumble As Payroll Data Falls Short

Asian 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 non-farm 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

Equities

Asian 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%.

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

Equities

Asian 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

Equities

Asian 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 Drops for 6th Straight Day on European Debt Worries

Equities

Asian 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.

Europe Gains on Greek Coalition Hopes

Equities

Disappointing trade data weighed on Asian markets on Thursday, as imports grew much less than expected. The Nikkei declined .4% to 9010, the Kospi slid .3%, and the Hang Seng dropped .5% to 20227. Ironically, the Shanghai Composite inched up .1%, but the trade data limited gains. Australia’s ASX 200 advanced .5% following a report that showed unemployment unexpectedly fell below 5%.

European markets closed higher, recovering from earlier losses, as rumors of a coalition deal in Greece helped ease anxiety. The DAX climbed .7% to 6518, the CAC40 rose .4%, and the FTSE gained .3%. Banks rallied 4.2%, rebounding after Wednesday’s 3.3% loss.

In the US, the Dow rose 20 points to 12855, snapping a 6-day losing streak. The S&P 500 gained .3% to 1358, while the Nasdaq closed down 1 point to 2934.

Dow Snaps Losing Streak, Rising 20 Points

Cisco tumbled 10.5% to 16.81 after issuing disappointing guidance, even though earning beat expectations. Juniper fell 4.9% and Salesforce.com tumbled 9.1%, as fears of a slowdown hit the sector.

Currencies

The currency markets traded in a narrow range on Thursday. The Euro, Swiss Franc, British Pound, and Canadian Dollar all edged up .1%. The Australian Dollar climbed .6%, lifted by upbeat employment data. The Yen dropped .4% to 79.99.

Economic Outlook

Weekly unemployment claims improved by 1K to 367K, better than the 371K forecast. The US trade deficit widened to $51.8B, blowing past estimates of $49.8B, jumping $6.4B over the last month. Import prices fell .5%, more than the .1% forecast.