Asian markets tumbled on Monday, following Friday’s weak US jobs data, and as elections in France and Greece replaced the incumbents. The Nikkei plunged 2.8% to 9119, a 3-month low after returning from a holiday, and the Kospi sank 1.6% to 1956. Australia’s ASX 200 tanked 2.2%, its biggest loss of 2012, as mining giants Rio Tinto and BHP Billiton both slumped more than 4%. The Hang Seng tumbled 2.6%, while the Shanghai Composite closed flat.
Nikkei Tumbles 2.8%, Adding To Its Recent Slide
European markets gained, but volume was light due to a bank holiday in the UK. The CAC40 rallied 1.7%, and the DAX edged up .1%.
US stocks ended mixed, as the Dow declined 30 points to 13009, while the Nasdaq and S&P 500 inched up fractionally.
Currencies
The euro fell as low as 1.2962, but mostly recovered to close down .2% to 1.3052, while the Swiss franc slipped .3% to 1.0863. The pound and Canadian dollar gained .2%, and the Australian dollar inched up .1%. The yen eased fractionally to 79.90.
Economic Outlook
Consumer credit blew past estimates, surging to 21.4B from last month’s 9.3B. The increase was the largest since November 2001.
European Markets Tumble On Political Fears
EquitiesAsian markets traded mostly higher, as the region rebounded from Monday’s slide. The Nikkei gained .7% to 9182, the Kospi rose .5% to 1967, and the ASX 200 edged up .3%. In greater China, markets closed lower, as he Hang Seng slipped .3% to 20485, and the Shanghai Compite eased .1% to 2449, snapping a 4-day winning streak.
The newly elected leftist leader of Greece, Alexis Tsipras rejected the terms of the international Greek bailout, raising the likelihood the heavily indebted country will be unable to raise further capital from the European bailout funds. European markets sank, as the CAC40 tumbled 2.8%, the DAX slumped 1.9%, and the FTSE fell 1.8%. In Greece, the Athens General Index dropped 3.6% to 620.52, its lowest level since 1992, extending Monday’s steep 7% drop.
US Stocks closed down, but fared much better than their European peers. The Dow had dropped as much as 198 points in the early morning, but mostly recovered to close down 76 points to 12932. The S&P 500 and Nasdaq both shed .4%.
Currencies
The drop in metals pressured the Australian dollar, which fell .7% to 1.0114, due to its position as a major metal exporter. The euro and Swiss franc both declined .6%, and the Canadian dollar slipped .3% to .9985. The pound and yen both closed up fractionally.
Economic Outlook
The possibility of a Greek default may become a reality if the newly elected government can form a coalition, and the markets will be very sensitive to the ongoing political developments.
Dow Drops For 6th Straight Day On European Debt Worries
EquitiesAsian markets slumped on Wednesday, as fears over Greece’s political fate spooked investors. The Nikkei dropped 1.5% to 9045, while the Kospi and ASX 200 both slumped .9%. China’s Shanghai Composite sank 1.7%, and the Hang Seng shed .8%, as Chinese oil companies fell sharply due to the drop in oil.
European banks tanked, dropping 3.3%, although the major European indexes closed mixed. The FTSE fell .4%, the CAC40 slipped .2%, while the DAX gained .5%.
US stocks closed lower, but once again managed to erase most of their early losses. The Dow fell 97 points to 12835, extending its losing streak to 6 days. The Nasdaq fell .4% to 2935, and the S&P 500 skidded .7% to 1355.
Dow Continues To Slide
Macy’s fell 3.7% despite reporting earnings which beat estimates, after the company failed to raise its full-year profit forecast.
Currencies
The euro fell below 1.30 to 1.2941, down .5% as mounting concerns over Greece and Spain continue to pressure the single-currency. The Swiss franc also declined .5% to 1.0776, continuing to move in lock-step with the euro. The pound eased .1% to 1.6141, the Australian dollar fell .6% to 1.0056, and the Canadian dollar slipped .2% to 1.0013, crossing below parity. Bucking the downtrend, the yen edged up .3% to 79.62.
Economic Outlook
A report released on Wednesday suggests Spain will need another $45 billion to aid its banking industry, implying another bailout will be needed.
Europe Gains on Greek Coalition Hopes
EquitiesDisappointing trade data weighed on Asian markets on Thursday, as imports grew much less than expected. The Nikkei declined .4% to 9010, the Kospi slid .3%, and the Hang Seng dropped .5% to 20227. Ironically, the Shanghai Composite inched up .1%, but the trade data limited gains. Australia’s ASX 200 advanced .5% following a report that showed unemployment unexpectedly fell below 5%.
European markets closed higher, recovering from earlier losses, as rumors of a coalition deal in Greece helped ease anxiety. The DAX climbed .7% to 6518, the CAC40 rose .4%, and the FTSE gained .3%. Banks rallied 4.2%, rebounding after Wednesday’s 3.3% loss.
In the US, the Dow rose 20 points to 12855, snapping a 6-day losing streak. The S&P 500 gained .3% to 1358, while the Nasdaq closed down 1 point to 2934.
Dow Snaps Losing Streak, Rising 20 Points
Cisco Systems Inc. (NASDAQ:CSCO) tumbled 10.5% to 16.81 after issuing disappointing guidance, even though earning beat expectations. Juniper Networks Inc. (NYSE:JNPR) fell 4.9% and Salesforce.com (NYSE:CRM) tumbled 9.1%, as fears of a slowdown hit the sector.
Currencies
The currency markets traded in a narrow range on Thursday. The euro, Swiss franc, British pound, and Canadian dollar all edged up .1%. The Australian dollar climbed .6%, lifted by upbeat employment data. The yen dropped .4% to 79.99.
Economic Outlook
Weekly unemployment claims improved by 1K to 367K, better than the 371K forecast. The US trade deficit widened to $51.8B, blowing past estimates of $49.8B, jumping $6.4B over the last month. Import prices fell .5%, more than the .1% forecast.
China’s Factory Output Way Below Estimates
EquitiesAsian markets declined on Friday as a huge hedging loss by JPMorgan Chase & Co. (NASDAQ:JPM) shook up investors. The Nikkei dropped .6% to 8953, as Sony fell 6.4% after reporting la large loss, although Nikon jumped 8.6% on earnings which exceeded forecasts. In China, factory output grew much slower than forecast, while inflation data was in line with estimates. The Shanghai Composite declined .6%, and the Hang Seng sank 1.3% to 19964, down 5.3% for the week. The Kospi fell 1.4% to 1917, the ASX eased .2%.
An afternoon rally lifted European markets, thanks to upbeat consumer confidence data from the US. The DAX rallied 1%, the FTSE climbed .6%, and the CAC40 settled flat. Bucking the uptrend, Greece’s main index tanked 4.5%, after the parliament was unable to form a coalition.
US stocks settled mixed, surrendering earlier gains. The Dow declined 34 points to 12821, the S&P 500 dropped .3% to 1353, while the Nasdaq closed flat.
Dow Gives Up Early Gains
JP Morgan plunged 9.3% to 36.96 after revealing that it had lost more than $2 billion in a failed hedging strategy. The news pulled down the financial sector, with Citigroup Inc. (NYSE:C) and Morgn Stanley (NYSE:MS) down 4.2%, while Goldman Sachs Group Inc. (NYSE:GS) dropped 3.9%.
Nvidia Corp (NASDAQ:NVDA) jumped 6.4% after reporting earnings which beat estimates, and raising its outlook.
Currencies
The dollar traded moderately higher against global currencies, amid concerns of a China slowdown. The pound fell .4% to 1.6068, and the Australian dollar slipped .3% to 1.0024. The euro and Swiss franc both eased .1%, and the yen closed down 4 pips to 79.93. The Canadian dollar managed a gain of .2% to 1.0010, following the release of upbeat employment data.
Economic Outlook
Consumer sentiment exceeded forecasts, climbing to 77.8 from 76.4, while PPI slipped .2%. Analysts had expected both figures to remain flat.