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Market Update

Wall Street Indexes Drop 1.6%, Vanguard Health and Tenet in $1.8 Billion Deal


Author: Nichole Harper
ticker.com
Last Update: 10:29 AM ET June 24 2013

10:25 AM New York – U.S. stocks opened lower as global market worried weighed on market sentiment. China began its monetary tightening that dragged Shanghai index down 5% and the U.S. Fed is expected to taper its monetary stimulus. Copper dropped to a 21-month low.

Stocks on Wall Street opened lower on Fed and China worries and extended losses in Asian and European markets.

The S&P 500 index declined 1.7% or 27.39 to 1,564.64 and the Nasdaq Composite Index decreased 1.6% or 54.62 to 3,302.15.

Merger Monday show three large deals announced.

Vanguard Health Systems, Inc agreed to be acquired in all cash deal from Tenet Healthcare that valued the company including debt for $4.5 billion.

Tenet offered $21 a share for the hospital operator and also agreed to assume $2.5 billion in debt.

Separately, Spain based Telefonica S.A. agreed to sell its entire stake in its Irish subsidiary for 850 million euros to Hong Kong based Hutchison Whampoa.

Also, Vodafone agreed to acquire Germany’s largest cable operator Kabel Deutschland for 7.7 billion euros or $10 billion.

Vodafone offered 40% premium the Kabel’s stock price and will add 8.5 million cable connections to its portfolio of mobile phone service customers.

European Markets

European markets declined in a broad selloff that erased gains in most national indexes after Fed and China worries loomed.

FTSE 100 index declined 1.2%, the DAX index dropped 1% and the CAC 40 index plunged 1.7%. For the year so far, the CAC 40 index is down 1.2% and the DAX 30 index is up 1.5% and the FTSE 100 index higher 2.5%.

On the economic front, Germany’s business confidence index increased in June as expected by many economists.

Spanish telecommunication group Telefonica S.A. agreed to sell its Ireland subsidiary to Hong Kong based Hutchison Whampoa Group for 850 million euros. Telefonica declined 1.6% in Madrid trading.

Asian Markets

Stocks in Tokyo declined and the yen fell for the tenth day in a row after China worries sparked an afternoon selloff and dragged Asian markets lower.

The ongoing worries of a cash crunch at Chinese banks contributed to a 5.3% nosedive in the Shanghai Composite Index and prompted fears that the second largest economy in the world may be heading for a slowdown.

Markets in Hong Kong dropped 2.2% and in Malaysia, Indonesia, Singapore and India declined between 1% and 2%.

Markets in Tokyo declined 1.3% and the yen declined for the tenth day in a row against the Japanese yen, the longest weakening streak since November.

U.S. Stocks in Review

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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