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Market Update

Wall Street Follows World Markets Decline after Commodities Rout

Author: Nichole Harper
Last Update: 1:48 PM ET September 22 2014

1:55 PM New York – World markets declined sharply after a selloff in Asian markets on weak commodities prices. Chinese finance minister dashed all hopes of additional stimulus and coal, iron ore, crude oil and precious metals dropped to multi-year lows.

Stock markets around the world were on the decline after cautious comments from Chinese finance minister dashed any hopes of additional stimulus and commodities extended losses to a multi-year lows.

Finance Minister Lou Jiwei said China’s government is not likely to make any change in government policy in response to the latest economic data. Retail sales and industrial production have been softer than expected in recent months.

The announcement was viewed differently around the world but investors sold commodities futures and economists raised the prospect of China lowering the growth estimate below 7.5% as early as this week.

World markets traded lower after Asian markets declined and resource stocks in Asia, Australian UK and Americas led the decliners.

S&P 500 index declined 0.9% or 17.87 to 1,992.53 and the Nasdaq Composite Index dropped 1.4% or 64.11 to 4,515.67.

Tollbooth Index dropped 1.7% or 160.50 to 9,346.36.

U.S. Movers

AutoZone, Inc (AZO) declined 3.9% or $20.90 to $505.54 after the auto parts retailer and distributor reported net sales in the fourth-quarter ending in August climbed 4.5% to $3 billion from a year ago period. Same store sales in the quarter jumped 2.1%.

Net income in the quarter soared 7.4% to $373.7 million or $11.28 a diluted share compared to $371.2 million or $9.76 from a same quarter last year.

Auxilium Pharmaceuticals, Inc (AUXL) fell 0.6% to $30.95 after the biopharmaceutical company’s board rejected offer of $2.2 billion from U.K.-based Endo International Plc and said the offer ""significantly undervalues” the company.

CARBO Ceramics Inc (CRR) tumbled 19.8% or $16.69 to $67.69 after the oilfield service provider forecasted ceramic proppant sales in the third-quarter will be similar from the first-quarter of 2014.

European Markets

In London trading, FTSE 100 index declined 1% or 68.33 to 6,769.59 and in Frankfurt the DAX index slipped 0.5% or 46.78 to 9,752.48.

In Paris, CAC 40 index dropped 0.5% or 22.10 to 4,439.12.

Sweden-based Investor AB agreed to buy additional shares of Wartsila for €639 million. German pharmaceuticals maker Merck agreed to acquire Sigma-Aldrich for €13 billion.

Siemens plans to acquire Dresser-Rand for $7.6 billion and home-appliance business of Robert Bosch GmbH for €3 billion.

Asian Markets

Stocks in Tokyo closed lower after weak commodities prices across Asia dragged market indexes in the region.

Iron ore and coal prices continued to slide and palm oil and other traded commodities extended multi-year decline after crude oil futures edged lower to a two-year low.

The latest round of commodities price declined was driven by the market speculation that China is set to trim economic growth outlook below 7.5% as early as this week.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc