European Markets Struggle on Weak Earnings

Market Update Analysis:

Author: 123jump.com Staff
123jump.com
Last Update: 5:06 PM EST February 28 2008

European markets fell between 1.5% and 2% after U.S. economy grew at 0.6% in the fourth quarter. The sharp decline in growth prompted worries that European economies may lose its gowth momentum. Euro rose to a record high agaist dollar, third record in a row and oil closed at near record high. Gold, silver, and copper rose. Rhodia tumbled 20% after it reported lower than revised earnings. Bayer fell as well. InBev surged 9% on fourth quarter profit of 900 million euros.

10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – European markets fell after the fourth quarter GDP growth was 0.6%, significantly lower than the third quarter. Bayer, Rhodia, Rentokil, and Vontobel fell sharply after declining or below expectations earnings.

European Markets

In London FTSE 100 Index closed lower 110.80 or 1.82% to 5,965.70, in Paris CAC 40 Index decreased 103.59 or 2.08% to close at 4,865.23 and in Frankfurt DAX index lower 135.33 or 1.93% to close at 6,862.52. In Zurich trading SMI decreased 119.60 or 1.54% to close at 7,662.95.

North American Markets indexes

Dow Jones Industrial Average declined 112.10 or 0.88% to a close of 12,582.18, S&P 500 closed down 12.33 or 0.89% to 1,367.69, and Nasdaq Composite Index traded down 22.21 or 0.94% to a close of 2,331.57. In Toronto TSX Composite closed higher 95.60 or 0.69% to close at 13,873.98.

Of the 30 stocks in Dow Jones Industrial Average, 6 closed higher, 24 closed lower, and none were unchanged.

3M led the decliners in the index with a loss of 4.4% followed by losses in AIG of 4.2%, in Home Depot of 4.05%, and in American Express of 3.65%. Verizon led the gainers in the index with a rise of 2.2% followed by increases in AT&T of 2.2%, in Boeing of 0.9%, and in Chevron of 0.75%.

Of the stocks in S&P 500, 93 closed higher, 406 fell, and 1 was unchanged. Of the index stocks, 13 rose more than 3% and 106 stocks fell more than 3%.

Limited Brands led the decliners in the index with a loss of 11% followed by declines in Sprint Nextel of 10.1%, in Centex of 2.6%, in DR Horton of 10%, and in Mylan of 8.6%. EOG Resources led the gainers in the index with a rise of 18% followed by gains in Hospira of 8.3%, and in Fluor Corp of 8.2%. Apple jumped 6%.

South American Markets Indexes

In Latin Markets Peru led the gainers in the region with a rise of 1.55% followed by increases in Argentina of 1.52%, and in Brazil of 0.08%. Chile led the decliners in the region with a loss of 1% followed by losses in Mexico of 0.8% and in Venezuela of 0.06%.
Asian Markets

In Tokyo Nikkei 225 Index closed lower 105.79 or 0.75% to 13,925.51, in Hong Kong Hang Seng index increased 107.85 or 0.44% closed to 24,591.69. Australia ASX 200 index decreased 116.00 or 2.01% to close 5,651.20.

In South Korea Kospi Index increased 15.28 or 0.89% to close at 1,736.17, in Thailand SET index closed higher 10.08 or 1.21% to 842.12 and Indonesia JSE Index edged increased 16.18 or 0.59% to 2,756.31. Sensex index in India decreased 1.51 or 0.01% to 17,824.48.

Bond Yields decreased on 10-year U.S. bonds to 3.68% and on 30-year bonds declined to 4.53%.

Commodities, Metals, and Currencies

Crude oil increased $3.04 to close at $102.68 per barrel for a front month contract, natural gas increased 39 cents to $9.45 per mBtu, and gasoline futures increased 1.49 cents to close at 249.260 cents per gallon.

Gold increased $6.50 in New York trading to close at $967.50 per ounce, silver closed up 42 cents to $19.75 per ounce, and copper for front month delivery increased 2.750 cents to 387.80 per pound and in yesterday’s trading in London copper futures increased $169.00 to $8,484.00.

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