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Market Update

World, U.S. Markets Extend Losses in August, India's Growth Slows to 4.5%

Author: Nichole Harper
Last Update: 3:01 PM ET August 30 2013

3:00 PM New York – U.S. stocks traded sideways and market indexes declined and extended losses in the week to nearly 2%. Worries of imminent Syria strike receded after the UK parliament rejected a motion for a military action. World markets declined in the week and many markets registered worst month decline in fifteen months.

U.S. stocks declined after consumer confidence index fell more than expected in August and consumer spending rose less than expected in July.

In trading, S&P 500 index declined 0.5% to 1,630 and the Nasdaq Composite Index fell 0.7% to 3,596.79.

The S&P 500 index is poised to register worst monthly decline since May 2012 and the Nikkei index in Japan fell the most in a year and extended losses for the fourth month in a row.

Consumer spending increased 0.1% in July after rising revised 0.6% in June, the Commerce Department said today.

In a separate report, consumer confidence index declined in August to 82.1 from 85.1 in July, the Reuters Thomson /University of Michigan said today.

In another private economic report, the MNI Chicago Report business barometer increased to 53 in August from 52.3 in July. Any data above 50 indicates expansion.

European Markets

European markets declined and energy linked companies led the losers after the UK parliament rejected a motion for a military strike in Syria.

FTSE 100 index in London decreased 1.08%, the DAX index in Frankfurt fell 1.1%, and the CAC 40 index in Paris eased 1.3%. In Zurich, SMI index declined 0.2%.

The French luxury goods maker Hermes increased 2% after the company reported better than expected first-half profit increase of 14% to 584.1 million euros.

L’Oreal SA gained 3% after first-half operating profit increased 3%

Mexico based American Movil SAB said it is prepared to drop its 7.2 billion euro bid for Royal KPN NV after the foundation that controls Dutch company shares acquired options to buy shares to prevent hostile takeover of the company.

India’s Growth Slows

India’s economy in the June quarter grew at 4.8%, slowest growth in economic output expanded at 3.5% in March 2009 quarter.

The data released by the Central Statistics Organization in New Delhi indicated slower than expected growth of 4.8%.

The sharp decline in rupee in the current year has contributed to general inflation and rising fuel and food prices that the government has not been able to contain for more than a decade.

India has struggled to reach economic growth of 6% after the global financial crisis in 2009 after enjoying economic growth between 8% and 9% in seven years in a row.

U.S. Stocks in Review

KrispyKreme Doughnuts Inc (KKD) declined 12% after adjusted second-quarter net profit was 14 cents a share, below analysts’ estimate of 16 cents to 19 cents a share.

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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