Jul 11
20
Nikkei 225 index is trading 0.8% lower, at 9,893.8.
Australian and Asian Report 19th July 2011
Asian Market Snapshot
Asian markets are trading lower this morning, amid concerns that the lack of progress on debt problems in the US and Eurozone would slow the global economic recovery. In Japan, financial stocks, Mitsubishi UFJ Financial, Sumitomo Mitsui Financial and Daiwa Securities, traded lower, tracking losses in US financial sector. Exporters, Nintendo, Honda Motor and Panasonic, lost values, on fears of a slowdown in their US and European markets. In Hong Kong, banks, Agricultural Bank of China and China Merchants Bank paced declines, as risk aversion increased among investors. Exporters, Esprit Holdings, Lenovo Group and Li & Fung, traded lower, amid uncertainty in global markets. In South Korea, oil refiners, SK Innovation, S-Oil and GS Holdings, lost values, as crude oil prices fell yesterday. However, losses were restricted by gains in technology stocks. Nikkei 225 index is trading 0.8% lower, at 9,893.8. Hang Seng index is down 0.3%, at 21,743.8, while the Kospi index is trading marginally down, at 2,130.4.
International Report 19th July 2011
European Market Snapshot
Other European markets finished lower yesterday, amid disappointment that the recent bank stress tests failed to take into account near term worst case scenarios including a possible Greece default. Markets also remained concerned that Eurozone leaders at the upcoming Thursday’s summit would fail to reach a consensus on a second bailout package for Greece. Banks, Societe Generale, Deutsche Bank andCommerzbank, declined between 3.5% and 5.5%, after JP Morgan stated that as many as 20 banks might need to boost capital. Among other banking stocks, UniCredit and Banco Comercial Portugues, sank 6.4% and 7.3%, respectively, as investors remained worried that the debt contagion might spread to other European economies. FTSEurofirst 300 index declined 1.7% or 18.9 points to 1,068.0. German DAXXetra 30 slipped 1.6% or 112.2 points at 7,107.9. French CAC-40 declined 2.0% or 75.9 points to 3,650.7.
US Market Snapshot
US markets slipped yesterday, as investors grew increasingly concerned about US lawmakers’ inability to reach a compromise on the US debt limit. Bank of America, down 2.8%, led the banking sector lower, after Bloomberg reported that mortgage losses may force the bank to hike its capital reserves by $50 billion and reject its CEO’s pledge to raise the bank’s dividend. The banking sector also came under pressure, after eight European banks failed to clear stress tests. Delta Air Lines, down 4.1%, led major US airlines lower, amid fears that air travel would weaken down in the autumn season. Among other stocks, News Corp. tumbled 4.3%, ahead of Mr Mudorch’s meeting with UK parliamentary committee regarding the UK phone-hacking scandal, while shares of LinkedIn slumped 6.9%, after JPMorgan downgraded the stock to “Neutral” from “Overweight”. DJIA slid 0.8% to 12,385.2. NASDAQ eased 0.9% to 2,765.1. S&P 500 index closed 0.8% lower, at 1,305.4.
