Jul 11
11
Nikkei 225 index is trading 0.7% lower, at 10,070.8.
Australian and Asian Report 11th July 2011
Asian markets are trading lower this morning, as dismal US job data and a rise in Chinese inflation dampened investor sentiments. In Japan, exporters, Toyota Motor, Tokyo Electron and Honda Motor, traded lower, as the yen appreciated against the dollar. Financial stocks, Mizuho Trust & Banking, Tokio Marine Holdings and Mitsubushi UFJ Financial Group, paced declines, as risk appetite faded among investors. In Hong Kong, oil producers, Cnooc and PetroChina lost values, tracking lower crude oil prices. Stocks also fell, as higher-than-expected inflation data from China raised concerns that the government would take additional measures to curb inflation. In South Korea, exporters, Samsung Electronics and Hyundai Motor traded in negative territory, amid downbeat prospects for their US markets. Nikkei 225 index is trading0.7% lower, at 10,070.8. Hang Seng index is down 0.9%, at 22,525.5, while the Kospi index is trading 1.0% lower, at 2,159.5.
International Report 11th July 2011
US Market Snapshot
US markets closed lower on Friday, as a disappointing monthly employment data weighed on investors’ sentiment. Bank of America shed 2.0%, after it agreed to sell its Balboa Life Insurance unit to Securian Financial for an undisclosed amount. Among technology stocks, Google declined 2.7%, as Morgan Stanley downgraded the stock to ‘Equal Weight’ from ‘Overweight’ and lowered its price target, citing concerns over its escalated expenditure and shrinking profit margins in 2011 and 2012. Staffing companies, Monster Worldwide, On Assignment, Robert Half International and Manpower Group, slumped between 3.2% and 4.3%, as June’s nonfarm payrolls rose by a meagre 18000 and failed to match market expectations. The stocks also fell, as the unemployment rate climbed to 9.2%. DJIA edged down 0.5% or 62.3 points to settle at 12,657.2. NASDAQ lost 0.4% or 12.9 points to close at 2,859.8. S&P 500 shed 0.7% or 9.4 points to 1,343.8.
European Market Snapshot
Other European markets ended lower on Friday, led by declines in financial stocks, as dismal US non-farm payrolls data fuelled concerns about the pace of economic recovery. Banks, BNP Paribas, Credit Agricole and Societe Generale , dropped between 3.9% and 4.0%, as economic prospects dampened following the rise in US unemployment rate . Retailer, Metro, declined 2.6%, after BofA Merrill Lynch downgraded the stock to ‘Underperform’ from ‘Neutral’. Among utility stocks, RWE fell 4.0%, after the Financial Times Deutschland reported that the company’s supervisory board might discuss a stake sale in its August meeting, while EON slipped 2.4%, as the upper house of German parliament approved Chancellor Angela Merkel’s plan to phase out nuclear power. Railway-equipment maker, Vossloh, plummeted 8.2%, after the company cut its sales and operating earnings forecasts. FTSEurofirst 300 index dropped 0.8% to 1,114.4. German DAX Xetra 30 lost 0.9% to 7,402.7. French CAC-40 slipped 1.7% to 3,913.6.
