Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
 | 
Last updated 1 minute ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
HOME LOCAL MIDEAST ASIA WORLD BUSINESS SPORT OPINION WRITERS
World markets down amid weak US data
February 01, 2013
 Print    Send to Friend

BANGKOK: An unexpected contraction in the US economy at the end of 2012 sent world stock markets into retreat on Thursday. The US economy shrank in the fourth quarter for the first time since mid-2009, hurt by big cuts in defense spending, falling exports and sluggish growth in company inventories, the government reported Wednesday. That put the brakes on a Wall Street rally that had pushed the Dow to near-record highs.

“The market has been looking for any excuse to pull back after such an epic month and has taken this news as the main lead for the day,” said Evan Lucas of IG Markets in Melbourne in an email commentary.

European stocks opened lower. Britain’s FTSE 100 fell 0.3 per cent to 6,306.17. Germany’s DAX shed 0.1 per cent at 7,800.71 and France’s CAC-40 lost 0.3 per cent at 3,755.27.

Stocks futures on Wall Street augured a lower opening, with Dow Jones industrial futures down 0.1 per cent at 13,830. S&P 500 futures were down 0.1 per cent at 1,494.10.

Most stock markets were lower in Asia. However, the regional heavyweight, Japan’s Nikkei 225 index, closed 0.2 per cent higher at 11,138.66, recovering from early morning losses sparked by lower-than-expected growth in December’s industrial production. Output climbed a seasonally adjusted 2.5 percent from November but most analysts had forecast an improvement of more than 4 percent.

Hong Kong’s Hang Seng fell 0.4 per cent to 23,729.53. South Korea’s Kospi shed 0.1 percent to 1,961.94. Australia’s S&P/ASX 200 fell 0.4 percent to 4,878.80, following 10 straight sessions of gains. Benchmarks in Thailand, the Philippines, Indonesia and Malaysia fell. Mainland China was mixed. New Zealand rose.

In a statement released after a two-day policy meeting on Wednesday, the US Federal Reserve acknowledged that the economy is still struggling to regain momentum. The central bank said that growth had “paused in recent months,” and while it was taking no new action, it would keep buying $85 billion of bonds a month.

With the Fed meeting behind them, traders and investors will now turn their focus back to company earnings and Friday’s nonfarm employment report. Lucas of IG Markets said he thinks a good jobs report could be just what the markets need to resume their upward momentum.

“If we see positive data there, it will reinforce the idea that the pressure is easing and economic data in the U.S. is continuing to get better,” he said.

Among individual stocks, Australia’s Whitehaven Coal Ltd. fell 5.5 percent after warning its earnings would be under $10 million in the first half of its financial year. Japanese video-game maker Nintendo Co. fell 4.6 percent after the company lowered its full year sales forecast to 670 billion yen ($7.4 billion) from 810 billion yen ($8.9 billion).

Game machines have taken a beating from the proliferation of smartphones and tablets that also offer games and other entertainment, competing for people’s leisure time. Some analysts say the global market for game machines is saturated with offerings from Nintendo, Microsoft Corp., Sony Corp. and others.

Associated Press

Add this page to your favorite Social Bookmarking websites
Comments
 
Post a comment
 
Name:
Country:
City:
Email:
Comment:
 
    
    
Related Stories
Market welcome fed remarkes
LONDON: Global stocks rose on Thursday after Federal Reserve chairman Ben Bernanke promised to keep supporting the US economy. Bernanke said the US needs “highly accom..
World markets take a hop on US jobs
LONDON: Markets were headed for a strong close to a historic week after the release of forecast-busting US payrolls figures for February. The Labour Department reporte..
 
FRONTPAGE
 
GALLERY
 
PANORAMA
 
TIME OUT
 
SPORT
 
 
Advertise | Copyright