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Wall Street recovered from an early sell-off Wednesday, however still finished the day mixed. The Federal Reserve’s decision to keep interest rates near zero was countered by a glum read on new home sales.

The Fed, in explaining its decision to keep interest rates steady, said that sustained weakness in several key economic indicators, including jobs, and European debt concerns were hindering the broader recovery.

Meanwhile new home sales tumbled 32% in May to a revised annual rate of 300,000 the lowest on record.

The Dow Jones rose 4.92 points, or 0.05%, to 10,298.44, the S&P 500 lost 3.27 points, or 0.3%, to 1,092.04 and the NASDAQ index fell 7.57 points, or 0.33%, to 2,254.33.

Housing stocks soared despite the disappointing housing data. D.R. Horton, Pulte Group and KB Home rallied 2.5%, 2.1% and 4.4% respectively.

It was poor day for tech stocks. Software maker Adobe tumbled 7.3% despite handily beating the street’s earnings expectations. However investors remained concerned about the direction of the company.

Apple and Microsoft were down 1.1% and 1.7% respectively.

Among the banking and financial stocks, Citigroup retreated 1.3%, while JPMorgan gained 1.5%.

Elsewhere cigarette maker, Philip Morris rallied 3.3% after receiving a boost to sales, particularly from Asia.

NYMEX light crude oil for August delivery fell US$1.50 to US$76.35 a barrel.

The slump in the price of crude hit oil stocks. Chevron and Exxon Mobil gave up 2.4% and 1.4% respectively.

However, BP ADR’s were virtually unchanged.

COMEX gold for August delivery dropped $5.30 to $1,234.80 an ounce.

European Markets

European stocks extended losses into a second session, following recent strong gains. Wednesday’s losses were prompted by the negative housing data out of the US.

The UK benchmark FTSE 100 retreated 68.46, or 1.30% to 5,178.52. The French CAC40 lost 63.53, or 1.71% to 3,641.79, while the German DAX gave up 64.52, or 1.03% to 6,204.52.

Among the UK banks, Barclays retreated 3.2%, while RBS and Lloyds gave up 0.8% and 0.5% respectively.

On the continent, BNP Paribas lost 2.2%, while Deutsche Bank was 1.5% cheaper.

Homebuilding stocks, CRH tumbled 4.1%, while cement maker HeidelbergCement AG gave up 4.7%.

Elsewhere, among the miners, BHP Billiton and Rio Tinto lost 1.8% and 1.6%. Anglo American lost 2.3%.

Among oil plays, BP edged 0.2% lower, while Royal Dutch Shell gave up 2%.

Japanese Markets

Japan’s Nikkei witnessed its biggest fall in over two weeks as a disappointing read on housing in the US deflated optimism of an economic recovery in that region. A strengthening yen hurt exporters, while commodity related stocks lost the most ground. 

The Nikkei 225 fell 189.19, or 1.87% to 9,923.70.

Automakers Toyota and Nissan shed 1.7% and 1.8% as the yen strengthened against both the euro and greenback.

Canon fell 2.6%, while Nintendo dropped 3.6%.

Heavyweight financials Sumitomo Mitsui and Mitsubishi UFJ weakened 0.8% and 0.7%. Mizuho rose 0.6%.

A drop in commodity prices sent trading company Mitsubishi Corp.’s shares 1.5% lower.

Oil and gas explorer Inpex Corp. and Mitsui Mining & Smelting Co lost 2.9% and 2.6% respectively.

Shipping companies Nippon Yusen K.K. and Mitsui O.S.K. Lines retreated 3.6% and 2.7% after the Baltic dry index weakened for an 18th consecutive session. 

Hong Kong Markets

Hong Kong reversed early losses, driven higher by record power consumption. Housing stocks however capped gains.

The Hang Seng put on 37.53, or 0.18% to 20,856.61.

Among the banks, ICBC lost 0.5% and Bank of China was unchanged. HSBC gained 0.9%.

Li & Fung put on 1.2%, while mobile phone maker, Foxconn lost 0.5%.

Oil producers, PetroChina and Cnooc lost 0.7% and 0.1% respectively.

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Market Watch by egoli