12:35 PM New York – Stocks on Wall Street struggled after merger news dominated trading sentiment. GE agreed to sell its appliance division for $3.3 billion. Crude oil declined to after China reported widening trade surplus in August but falling imports. The U.K. pound weakened on the worries that Scotland may leave the union.
Stocks on Wall Street struggled in Monday’s trading after several deal news dominated market sentiment and crude oil futures price declined to a three-year low.
Brent crude oil declined to $99.36 a barrel before recovering a bit, the lowest since May 1, 2013 and West Texas Intermediate for October delivery dropped below $92 a barrel, the lowest in eight months.
Market sentiment was weak in early trading after crisis in Ukraine continued and UK jumped in focus as the prospect of Scotland leaving the United Kingdom rose.
Two political parties in UK made fresh efforts to convince voters in Scotland to stay in the union and Chancellor of Exchequer George Osborne offered Scottish more control over spending and tax revenues.
Tollbooth Index fell 0.3% or 22.45 to 9,550.91.
Among other widely followed indexes, S&P 500 index declined 6.06 to 2,001.63 and the Nasdaq Composite Index increased 1.02 to 4,583.91.
General Electric Company
), the industrial conglomerate agreed to sold its appliances unit to Sweden-based Electrolux for $3.3 billion in cash.
Global Cash Access Holdings, Inc
) gained 1.6% or 12 cents to $7.64 after the cash services provider to gaming industry plans to acquire slot machine maker Multimedia Games Holding Co Inc for about $1.2 billion.
The offer price of $36.50 a share represents a premium of 31% to Multimedia''s Friday closing price.
In London trading, FTSE 100 index slipped 0.5% or 35.59 to 6,819.51 and in Frankfurt the DAX index was flat at 9,746.77.
In Paris, CAC 40 index slid 0.2% or 11.38 to 4,475.11.
On the corporate front in Europe, Denmark based Auriga agreed to sell Cheminova unit to FMC Corp for 10.5 billion kronor.
Sweden based Electrolux agreed to acquire GE’s appliances business for $3 billion and France based L''Oreal agreed to buy Brazil based hair care products provider for €140 million.
Ireland based, Ryanair ordered 200 Boeing''s 737 MAX 200 that are valued at $22 billion list price. Generally aircraft makers discount between 50% and 70% of list price of an aircraft.
Japan’s gross domestic product in three months to June declined at annual rate of 7.1%, the Cabinet Office said today in Tokyo. In the preliminary report, GDP was estimated to shrink 6.8% annual pace.
The economy contracted the most in more than five years after the sales-tax increase in April affected household spending was affected for the second quarter in a row.
The Ministry of Finance said current account surplus in July declined 30.6% to 416.7 billion yen from a year-ago month followed by 399.1 billion yen deficit in June.