While you were sleeping.. Global equity markets have fallen as momentum from last week’s strong US jobs data faded. The Dow Jones Industrial Average shed 119 points, or 0.7%, to 16905. The Dow lost ground for the second day in a row after ending last week at its 14th record high of 2014. The S&P 500 index fell 15 points, or 0.75%, to 1963. Eight of the ten primary S&P 500 sectors were lower, with only defensive groups like utilities and consumer staples higher on the day. Technology-heavy Nasdaq Composite Index slumped 65 points, or 1.47%, to 4386 with almost three-fourths of the companies falling for the day. Weakness in tech shares pressured the Nasdaq, with internet names especially hit hard. About 60 per cent of stocks trading on the New York Stock Exchange also fell. European shares declined Tuesday for the third session in a row, with the Stoxx Europe 600 losing 1.4% and the FTSE closing 85.06 points lower or 1.25% at 6738. Media reports of new US fines for banks and dimming prospects that the European Central Bank will launch an asset-purchase program weighed on sentiment in Europe, as did German imports and exports that dropped more than expected in May. Banking stocks led European shares lower on Tuesday as German banks became the latest lenders to be negotiating a costly legal settlement with US authorities. U.K. factory output unexpectedly fell in May by the most since the beginning of last year. Morgan Stanley notes that bonds continued to rally into the end of May 2014 returning 3.8 per cent year-to-date compared to 4.6 per cent by Australian equities with the Australian dollar rallying about 4 per cent over this same period. Westfield spin-off Scentre to raise €2b: The newly formed Scentre group has begun what could be the biggest non-bank bond raising by an Australian company in Europe. Iceland drew healthy demand for its first public sale of euro-denominated bonds in almost eight years Tuesday, but the countrys crisis-era capital controls kept some investors away, paying a premium of 0.96% when compared to Spanish bonds maturing in roughly six years.
Posted on: Tue, 08 Jul 2014 23:14:13 +0000
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