Markets Trade Lower On Poor Earning Results

Asian trade: Global markets are trading again under the break-even line. U.S. equity markets closed lower, while the Asian shares extended the weekly decline.

A mixed of bad news and poor earning reports turned the markets into the red, again. U.S. earnings reports are expected to fall 30% in Q4, after they were estimated to rise by almost 50% in the first quarter of 2008. Microsoft sank nearly 12% yesterday, after it declined to announce any guidelines for 2009 earning forecasts.

In Asia, the selling wave continued on poor earning outlook. Sony, probably the most important maker of electronics from the region, expects to report a $3 billion loss in 2008, four times bigger than analysts’ forecasts. Almost every Japanese company is affected by the global slowdown, as a large percentage of their sales came from foreign markets.

Tonight, the Nikkei tumbled 228.40 points (2.84%) to 7,823.34. The Australian S&P/Asx fell 102.30 points (2.93%) to 3,384.50.

Crude oil moved lower, after a report showed that stockpiles increased in the last period. Crude oil for February delivery fell $0.80 to $42.80.

Gold followed the commodities market closely, especially crude oil. Bullion for immediate delivery slipped $5.30 to $853.50.

Previous Wall Street trade: At the close of floor trading on the NYSE the DOW was on 8122.80 after falling 105.30 points (-1.28%) while the S&P finished on 827.50, down 12.74 points (-1.52%). The NASDAQ was the biggest percentage loser for the day, closing on 1465.49 after a decline of 41.58 points (-2.76%). Bonds were mixed after traders bought the short end of the. The yield on the 2-year note fell 5.3 basis points to 0.740% while yield on the benchmark 10-year note rose 5.2 basis points to 2.597%. The dollar traded in risk aversion mode as stocks declined, gaining 0.16% on the euro, 0.57% on the pound and 0.94% against Australia's currency while it fell 0.73% against the yen.

Previous European trade: In Europe, the U.K. Ftse fell 7.65 points (-0.19%) to 4,052.23, while the German Dax fell 41.73 points (-0.98%) to 4,305.04.