World Stock Markets Fall Despite Wall Street Gains Notes Hiroyuka Maruyama, Global Markets CEO At Oppenheimer Lloyd In Tokyo
World shares down as Wall Street gains fail to lift region amid jitters about recovery notes Hiroyuka Maruyama, Global markets CEO at Oppenheimer Lloyd in Tokyo.
- (1888PressRelease) July 09, 2010 - Hiroyuka Maruyama, Global markets CEO at Oppenheimer Lloyd in Tokyo stated Thursday, " World markets retreated Wednesday, with investors losing their appetite for stocks after a disappointing U.S. services report pointed to an anemic recovery in the world's largest economy."
"Oil prices hovered below $72 a barrel as traders prepared to assess weekly crude supply data for signs of recovering U.S. demand. The dollar weakened against the yen and the euro fell."
Major indexes in Europe opened lower. Britain's FTSE of leading shares was down 1 percent to 4,913.55. Germany's DAX opened 0.6 percent lower to 5,906.47 and France's CAC-40 was off 1.1 percent to 3,384.65. U.S. futures augured a lower open. Dow futures were down 24 points, or 0.3 percent, to 9,658 while the Standard and Poor's 500 futures lost 5.1, or 0.5 percent, to 1,019.10.
Hiroyuka Maruyama, Global markets CEO at Oppenheimer Lloyd in Tokyo continued, "Markets reversed course following bargain-hunting Tuesday that led to slight rallies on Wall Street and elsewhere." "Traders remained unable to shake deepening unease about the global economy and scampered to the sidelines, taking profits with them."
Major indexes in Tokyo, Seoul and Hong Kong were also down. One exception was the benchmark Shanghai Composite Index, which edged up 11.69 points, or 0.5 percent, to close at 2,421.12. But it failed to spark activity elsewhere.
Chinese stocks were buoyed as investors took heart from reports that the government social security fund was buying shares to help boost the market. Strains on liquidity also eased as Agricultural Bank of China wrapped up subscriptions for a record share offering expected to raise a total $22.1 billion.
Japan's Nikkei 225 stock average closed down 0.6 percent at 9,279.65 as a strong yen kept pressure on exporter shares.
The dollar stayed near 87 yen, which is bad news for major brands like Sony and Nissan. A strong yen reduces the value of their overseas profits and makes Japanese products more expensive abroad.
Elsewhere, Hong Kong's Hang Seng lost 1.1 percent to 19,857.07 and Seoul's Kospi lost 0.6 percent to 1,675.65.
Benchmarks in Taiwan, India and Australia also declined, while those in Thailand and New Zealand were higher.
In New York Tuesday, the Dow Jones industrial average rose 0.6 percent to 9,743.62. The index broke a seven-day slide after traders sifted through the market for beaten-down stocks.
The day's economic news didn't offer investors much incentive to buy. The Institute for Supply Management, a trade group of purchasing executives, said growth in services businesses slowed last month -- falling short of expectations. Its services index fell to 53.8 from 55.4 in May. Economists polled by Thomson Reuters forecast a reading 55.0. Anything above 50 indicates growth.
In currencies, the dollar was trading at 87.03 yen from 87.54 yen late Tuesday. The euro fell to $1.2566 from $1.2625.
Benchmark crude for August delivery was down 26 cents to $71.72 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 16 cents to settle at $71.98 on Tuesday.
Markets reversed course following bargain-hunting Tuesday that led to slight rallies on Wall Street and elsewhere. Traders remained unable to shake deepening unease about the global economy and scampered to the sidelines, taking profits with them, according to Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong.
"There are not many people buying stocks right now," Lun said. "I have given up hope on Europe. Europe will be mired in recession because of deficit-cutting." Lun also called the U.S. economic recovery "anemic" and said softening export orders in China hit market sentiment hard.
Major indexes in Tokyo, Seoul and Hong Kong were also down. One exception was the benchmark Shanghai Composite Index, which edged up 11.69 points, or 0.5 percent, to close at 2,421.12. But it failed to spark activity elsewhere.
Chinese stocks were buoyed as investors took heart from reports that the government social security fund was buying shares to help boost the market. Strains on liquidity also eased as Agricultural Bank of China wrapped up subscriptions for a record share offering expected to raise a total $22.1 billion.
Japan's Nikkei 225 stock average closed down 0.6 percent at 9,279.65 as a strong yen kept pressure on exporter shares.
The dollar stayed near 87 yen, which is bad news for major brands like Sony and Nissan. A strong yen reduces the value of their overseas profits and makes Japanese products more expensive abroad.
Elsewhere, Hong Kong's Hang Seng lost 1.1 percent to 19,857.07 and Seoul's Kospi lost 0.6 percent to 1,675.65.
Benchmarks in Taiwan, India and Australia also declined, while those in Thailand and New Zealand were higher.
In New York Tuesday, the Dow Jones industrial average rose 0.6 percent to 9,743.62. The index broke a seven-day slide after traders sifted through the market for beaten-down stocks.
The day's economic news didn't offer investors much incentive to buy. The Institute for Supply Management, a trade group of purchasing executives, said growth in services businesses slowed last month -- falling short of expectations. Its services index fell to 53.8 from 55.4 in May. Economists polled by Thomson Reuters forecast a reading 55.0. Anything above 50 indicates growth.
In currencies, the dollar was trading at 87.03 yen from 87.54 yen late Tuesday. The euro fell to $1.2566 from $1.2625.
Benchmark crude for August delivery was down 26 cents to $71.72 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 16 cents to settle at $71.98 on Tuesday.
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