Stocks close mixed; US growth worries markets
Thursday, September 6, 2007
ASIANS stocks closed mixed yesterday with a rally on Wall Street overnight failing to inspire investors, who remain wary over the state over the United States economy.
Improved US manufacturing figures and the prospect of an interest rate cut in the world's largest economy had underpinned early buying but profit taking emerged later in the day.
Sub-prime mortgage fears, or home loans made to risky borrowers when interest rates were much lower in the US, again haunted equities as many people believe the worst is not yet over.
Further insights into the US economy and the impact from sub-prime loans were expected to be contained in more data to be released over the coming days and this also contributed to a broader flat tone to trade.
Tokyo was by far the worst on the day with a 1.6 per cent tumble on a potential US credit crunch, Seoul shed 0.5 per cent and Sydney was also down 0.5 per cent, after its central bank kept interest rates on hold.
Mumbai shed 0.12 per cent.
Sharp falls in Japan encouraged profit taking elsewhere, resulting in many markets closing off their highs, like Hong Kong where the benchmark rose 0.77 per cent and managed a record close.
Taipei and Jakarta ended flat while Wellington was up a modest 0.11 per cent, Shanghai gained 0.31 per cent, Bangkok rose 0.45 per cent and Manila was up 0.91 per cent while Kuala Lumpur rose 1.1 per cent and Singapore soared 2.0 per cent.
US stocks US stocks extended losses yesterday as a report pointing to a worsening housing market added to concerns about weakness in employment and the outlook for economic growth and profits.
The Dow Jones industrial average was down 133.72 points, or 0.99 per cent, at 13,315.14. The Standard & Poor's 500 Index was down 16.90 points, or 1.13 per cent, at 1,472.52. The Nasdaq Composite Index was down 19.03 points, or 0.72 per cent, at 2,611.21.
European shares European shares stayed in the red yesterday as data showed job creation in the US private sector rose at its slowest pace in over four years in August, aggravating doubts about the resilience of the US economy.
The ADP employment report showed US private employers likely added 38,000 jobs in August, versus a downwardly revised 41,000 in July, and less than half the 83,000-rise forecast in a Reuters poll.
By 1240 GMT, the FTSEurofirst 300 index of top European shares was down one per cent at 1,533.4 points, down from a session high at 1,549.62 points.
London's FTSE 100 index fell 1.1 per cent, while Frankfurt's DAX shed one per cent and Paris' CAC 40 dropped 1.3 per cent.
Money markets The low-yielding yen and safe-haven bonds gained in a move to relative safety.
Money markets remained tight with euro overnight interbank lending rates at six-year highs as banks remain reluctant to lend to each other a key concern for investors who worry about a credit crunch.
Banks are paying a higher premium for cash to secure their future financing.
Agencies
Improved US manufacturing figures and the prospect of an interest rate cut in the world's largest economy had underpinned early buying but profit taking emerged later in the day.
Sub-prime mortgage fears, or home loans made to risky borrowers when interest rates were much lower in the US, again haunted equities as many people believe the worst is not yet over.
Further insights into the US economy and the impact from sub-prime loans were expected to be contained in more data to be released over the coming days and this also contributed to a broader flat tone to trade.
Tokyo was by far the worst on the day with a 1.6 per cent tumble on a potential US credit crunch, Seoul shed 0.5 per cent and Sydney was also down 0.5 per cent, after its central bank kept interest rates on hold.
Mumbai shed 0.12 per cent.
Sharp falls in Japan encouraged profit taking elsewhere, resulting in many markets closing off their highs, like Hong Kong where the benchmark rose 0.77 per cent and managed a record close.
Taipei and Jakarta ended flat while Wellington was up a modest 0.11 per cent, Shanghai gained 0.31 per cent, Bangkok rose 0.45 per cent and Manila was up 0.91 per cent while Kuala Lumpur rose 1.1 per cent and Singapore soared 2.0 per cent.
US stocks US stocks extended losses yesterday as a report pointing to a worsening housing market added to concerns about weakness in employment and the outlook for economic growth and profits.
The Dow Jones industrial average was down 133.72 points, or 0.99 per cent, at 13,315.14. The Standard & Poor's 500 Index was down 16.90 points, or 1.13 per cent, at 1,472.52. The Nasdaq Composite Index was down 19.03 points, or 0.72 per cent, at 2,611.21.
European shares European shares stayed in the red yesterday as data showed job creation in the US private sector rose at its slowest pace in over four years in August, aggravating doubts about the resilience of the US economy.
The ADP employment report showed US private employers likely added 38,000 jobs in August, versus a downwardly revised 41,000 in July, and less than half the 83,000-rise forecast in a Reuters poll.
By 1240 GMT, the FTSEurofirst 300 index of top European shares was down one per cent at 1,533.4 points, down from a session high at 1,549.62 points.
London's FTSE 100 index fell 1.1 per cent, while Frankfurt's DAX shed one per cent and Paris' CAC 40 dropped 1.3 per cent.
Money markets The low-yielding yen and safe-haven bonds gained in a move to relative safety.
Money markets remained tight with euro overnight interbank lending rates at six-year highs as banks remain reluctant to lend to each other a key concern for investors who worry about a credit crunch.
Banks are paying a higher premium for cash to secure their future financing.
Agencies
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