12:20 PM New York – S&P 500 index extended losses for the third day and small cap Russell 2000 index extended loss to 10% in a two-month correction. Yield on 10-year bond dropped to a six-month low.
Stocks in New York dropped for the third day and market indexes dropped more than 1% after Wal-Mart cautioned on earnings and small cap companies stocks extended loss to 10% in two month correction.
S&P 500 index dropped 1.4% or 25.84 to 1,862.69 and the Nasdaq Composite Index declined 1.6% or 63.73 to 4,036.89.
Eurozone Growth and Inflation Lags Estimates
Market indexes in Europe dropped and the euro traded at 11-week low after weak economic growth and inflation data raised the prospect of another round of stimulus measures.
Eurozone economy covering 18 nations expanded at 0.2%, less-than-expected rate of 0.4% by economists. The data was released by the eurostat today.
The economic growth in the last quarter was lowered to an increase of 0.2% from the previous estimate of 0.3% on a quarterly basis.
In a separate report, the statistics agency also estimated inflation in April at 0.7% from a year ago month and increased from 0.5% in March.
The reported inflation is still below the central government annual increase target of 2%.
In London trading, FTSE 100 index slumped 0.8% or 52.01 to 6,826.48 and in Frankfurt the DAX index dropped 0.9% or 88.78 to 9,665.61.
In Paris, CAC 40 index declined 1.1% or 51.34 to 4,449.70.
Rupee in Mumbai trading rose to a 10-month high on the prospect of a government change and a steady flow of dollar from traders and investors.
Rupee rose to 59.30 after hitting 59.10, its best level since July 29.
The Sensex Index gained 90.48 or 0.4% to close at 23,905.60 The CNX Nifty rose 14.40 to 7,123.15.
Japan’s GDP Growth Accelerates
Japan''s GDP in the March quarter expanded 1.5% from the last quarter after consumer spending rose ahead of sales tax increase on April 1, the Cabinet Office said today.
The annual rate of 5.9% in the quarter was the fastest pace of growth since 2011 as Japanese companies stepped up investment and consumers loosened control on purse strings.
The growth in the economy was driven by two factors. Consumer spending increased at the fastest pace of 2.1% since 2.2% rise in the quarter ahead of tax increase in 1997.
And capital spending surged 4.9%, the most since 8.2% in the December quarter of 2011 after the triple disaster.
Economists are estimating the economy to contract at an annual rate of 2.2% in the current quarter ending in June.