US stocks slide again on Euro concerns
May 18, 2010
The flagging European economy hit Wall Street again Tuesday, with stocks down more than 1% as the euro hit fresh four-year lows. Investors are abandoning the currency over concerns Euro members, particularly countries in the south will, eventually, default on their loans.
The slump came despite continuing better-than-expected results from US companies and Greece receiving the first instalment of loan money from the EU and IMF, allowing it to repay 8.5 billion euros ($12 billion) of bonds.
The Dow Jones fell 114.88 points, or 1.08%, to 10,510.95, the S&P 500 lost 16.14 points, or 1.42%, to 1,120.80 and the NASDAQ dropped 36.97 points, or 1.57%, to 2,317.26.
The decline in Wall Street was exacerbated by a sell-off in the credit sector of the economy, including Mastercard and Visa, in the face of increased government regulation. Those stocks fell 6.2% and 3.8% respectively.
Among the banks, Citigroup lost 3.4%, while Bank of America and JPMorgan retreated 2.5% and 2.1% respectively.
Wells Fargo lost 4.3%.
In tech stocks, Hewlett-Packard fell 1.5% however jumped in after-hours trade after the company posted strong results on the back of solid server sales.
Rival PC maker, Dell shed the same amount.
Among the Dow components, Home Depot lost 2.4%, while Wal-Mart rallied 1.9% despite both companies handily beating Wall Street expectations and offering upbeat outlooks.
Other retailers suffered, including Saks and Macy’s which both slumped more than 4%.
Peabody shares lost 1% despite expectations they would rally following Macarthur Coal’s rejection of their takeover bid.
Housing reports out Tuesday offered a mixed take on the economy. Housing starts rose 5.8%, while building permits fell 11.5%.
In the sector, KB Homes fell 2.4%, while Pulte Group was 1% lower.
NYMEX light crude oil for June delivery fell US67c to settle at US$69.41 a barrel.
Exxon Mobil shares fell 0.8% as the price of oil continues to retreat.
COMEX gold for June delivery fell US$13.50 to settle at US$1,216.80 an ounce.
European Markets
Trading ahead of the US, European markets snapped two days of declines as Greece received the first of its loans ahead of tomorrow’s deadline to repay $12 billion in loans.
Banks rallied, while commodity stocks also recovered as metal prices bounced off four month lows.
The UK benchmark FTSE 100 gained 44.80, or 0.85% to 5,307.34. The German DAX added 89.01, or 1.47% to 6,155.93, and the French CAC40 rose 73.77, or 2.08% to 3,617.32.
In response to the slumping Euro, Germany has banned temporarily naked short-selling and naked swaps of Euro bonds.
The move leaves short sellers facing massive losses, however the German financial regulator said massive short-selling was threatening the entire financial system.
In Germany Deutsche Bank and Commerzbank added 1.5% and 0.2% respectively.
Still on the continent, UBS and Societe Generale rose 2.1% and 4.7%.
In the UK, Barclays and RBS advanced 0.4% and 1.2% respectively. HSBC eked out a 0.2% gain.
Many of the European auto giants were between 2% and 3% higher, including BMW, which added 2.4% despite being forced to recall hundreds of thousands motor bikes worldwide due to a brake problem.
Among the Aussie miners, BHP Billiton and Rio Tinto rose 2% and 2.7% respectively.
Anglo American added 2.5%.
Among the oil plays, Royal Dutch Shell, BG Group and BP gained 1.1%, 0.9% and 0.8% respectively.
Japanese Markets
Japan’s Nikkei was mixed as continuing concerns regarding Europe’s debt situation and falling commodity prices weighed on the market. This was countered by bargain hunting after the index hit a an official correction during the session.
The Nikkei 225 added 6.88, or 0.07% to 10,242.64.
Heavyweight banks Mitsubishi UFJ and Mizuho lost 1.2% and 0.9%.
Oil and gas explorer Inpex Corp. shed 2.5% and commodities trader Mitsubishi Corp. dipped 1.6%.
Nippon Yusen K.K. and Mitsui O.S.K. Lines dropped 5.2% and 3.8% after The Baltic Dry Index fell for the first time in nine days.
All Nippon Airways Co. lost 2.2% after the carrier revealed plans to increase the maximum number of allowable shares.
The major exporters were mixed. Automakers Suzuki and Honda put on 1.4% and 0.7%, while electronics manufacturer Sony added 0.6%.
Panasonic fell 0.7%. Fanuc rose 1.6% on a broker upgrade.
Hong Kong Markets
The Hang Seng gained ground Tuesday, led by the banks both on the island and the Chinese mainland.
The Hang Seng gained 229.74, or 1.17% to 19,944.94.
ICBC rallied 2.5%, while Bank of China gained 1.8%. Index heavyweight HSBC was 1.5% dearer.
Li & Fung added 1.6% after coming out and saying it has around US$1 billion to spend on company acquisitions.
Foxconn International, which makes the Apple iPad and iPhone, was 2.5% stronger, while shoemaker Yue Yuen Holdings rallied 0.6%.
Among commodity stocks, copper play Jiangxi added 0.7%, while Aluminium Corp of China rose 1.9%.
The slump came despite continuing better-than-expected results from US companies and Greece receiving the first instalment of loan money from the EU and IMF, allowing it to repay 8.5 billion euros ($12 billion) of bonds.
The Dow Jones fell 114.88 points, or 1.08%, to 10,510.95, the S&P 500 lost 16.14 points, or 1.42%, to 1,120.80 and the NASDAQ dropped 36.97 points, or 1.57%, to 2,317.26.
The decline in Wall Street was exacerbated by a sell-off in the credit sector of the economy, including Mastercard and Visa, in the face of increased government regulation. Those stocks fell 6.2% and 3.8% respectively.
Among the banks, Citigroup lost 3.4%, while Bank of America and JPMorgan retreated 2.5% and 2.1% respectively.
Wells Fargo lost 4.3%.
In tech stocks, Hewlett-Packard fell 1.5% however jumped in after-hours trade after the company posted strong results on the back of solid server sales.
Rival PC maker, Dell shed the same amount.
Among the Dow components, Home Depot lost 2.4%, while Wal-Mart rallied 1.9% despite both companies handily beating Wall Street expectations and offering upbeat outlooks.
Other retailers suffered, including Saks and Macy’s which both slumped more than 4%.
Peabody shares lost 1% despite expectations they would rally following Macarthur Coal’s rejection of their takeover bid.
Housing reports out Tuesday offered a mixed take on the economy. Housing starts rose 5.8%, while building permits fell 11.5%.
In the sector, KB Homes fell 2.4%, while Pulte Group was 1% lower.
NYMEX light crude oil for June delivery fell US67c to settle at US$69.41 a barrel.
Exxon Mobil shares fell 0.8% as the price of oil continues to retreat.
COMEX gold for June delivery fell US$13.50 to settle at US$1,216.80 an ounce.
European Markets
Trading ahead of the US, European markets snapped two days of declines as Greece received the first of its loans ahead of tomorrow’s deadline to repay $12 billion in loans.
Banks rallied, while commodity stocks also recovered as metal prices bounced off four month lows.
The UK benchmark FTSE 100 gained 44.80, or 0.85% to 5,307.34. The German DAX added 89.01, or 1.47% to 6,155.93, and the French CAC40 rose 73.77, or 2.08% to 3,617.32.
In response to the slumping Euro, Germany has banned temporarily naked short-selling and naked swaps of Euro bonds.
The move leaves short sellers facing massive losses, however the German financial regulator said massive short-selling was threatening the entire financial system.
In Germany Deutsche Bank and Commerzbank added 1.5% and 0.2% respectively.
Still on the continent, UBS and Societe Generale rose 2.1% and 4.7%.
In the UK, Barclays and RBS advanced 0.4% and 1.2% respectively. HSBC eked out a 0.2% gain.
Many of the European auto giants were between 2% and 3% higher, including BMW, which added 2.4% despite being forced to recall hundreds of thousands motor bikes worldwide due to a brake problem.
Among the Aussie miners, BHP Billiton and Rio Tinto rose 2% and 2.7% respectively.
Anglo American added 2.5%.
Among the oil plays, Royal Dutch Shell, BG Group and BP gained 1.1%, 0.9% and 0.8% respectively.
Japanese Markets
Japan’s Nikkei was mixed as continuing concerns regarding Europe’s debt situation and falling commodity prices weighed on the market. This was countered by bargain hunting after the index hit a an official correction during the session.
The Nikkei 225 added 6.88, or 0.07% to 10,242.64.
Heavyweight banks Mitsubishi UFJ and Mizuho lost 1.2% and 0.9%.
Oil and gas explorer Inpex Corp. shed 2.5% and commodities trader Mitsubishi Corp. dipped 1.6%.
Nippon Yusen K.K. and Mitsui O.S.K. Lines dropped 5.2% and 3.8% after The Baltic Dry Index fell for the first time in nine days.
All Nippon Airways Co. lost 2.2% after the carrier revealed plans to increase the maximum number of allowable shares.
The major exporters were mixed. Automakers Suzuki and Honda put on 1.4% and 0.7%, while electronics manufacturer Sony added 0.6%.
Panasonic fell 0.7%. Fanuc rose 1.6% on a broker upgrade.
Hong Kong Markets
The Hang Seng gained ground Tuesday, led by the banks both on the island and the Chinese mainland.
The Hang Seng gained 229.74, or 1.17% to 19,944.94.
ICBC rallied 2.5%, while Bank of China gained 1.8%. Index heavyweight HSBC was 1.5% dearer.
Li & Fung added 1.6% after coming out and saying it has around US$1 billion to spend on company acquisitions.
Foxconn International, which makes the Apple iPad and iPhone, was 2.5% stronger, while shoemaker Yue Yuen Holdings rallied 0.6%.
Among commodity stocks, copper play Jiangxi added 0.7%, while Aluminium Corp of China rose 1.9%.
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