Fall in U.S. Sparks a Decline in Global Markets

Market Update Analysis:

Author: 123jump.com Staff
123jump.com
Last Update: 7:49 AM EST January 15 2008

U.S. stocks fell sharply as investors grew nervous of the impending slow-down in the economy. The growing perception that the ongoing housing market correction will eventually slow-down the economy. Citigroup reported 70% decline in revenue and a loss of $9.8 billion on $18.1 billion write down related to subprime and consumer lending. Merrill and Citigroup are in deals to secure $21 billion in investments from investors in Singapore, Japan, Korea, and Middle East. Intel earnings jumped 51%.

11:00PM Frankfurt, 5:00PM New York, 9:00AM next day Sydney

North American Markets indexes

Dow Jones Industrial Average lost 277.04 or 2.17% to a close of 12,501.11, S&P 500 closed down 35.30 or 2.49% to 1,380.95, and Nasdaq Composite Index traded down 60.71 or 2.45% to a close of 2,417.59.

In Toronto TSX Composite closed down 378.54 or 2.76% to close at 13,319.74.

Of the 30 stocks in Dow Jones Industrial Average, 1 closed higher, 29 closed lower, and none was unchanged.

Citigroup led the decliners in the index with a loss of 7.2% followed by losses in JP Morgan Chase of 5.5%, in Alcoa of 5.08%, in General Motors of 4.8%, and in Boeing of 4%. Home Depot was the only gainer in the index and closed 0.08% higher.

Of the stocks in S&P 500, 24 closed higher, 474 fell, and 2 were unchanged.

Nine stocks fell more than 3% and eighty nine stocks rose more than 3%.

E*Trade led the decliners in the index with a fall of 10% followed by losses in Circuit City of 9.77%, in CIT Group of 9.2%, in MEMC Electric of 8.8%, in Valero Energy of 8.3%, in Jacobs Engineering of 8.2%, and in Micron Technology of 8%.

Big Lots led the gainers in the index with a rise of 5.4% followed by gains in Tiffany of 4.7%, in Tenet Healthcare of 3.3%, in Southwest Air of 2.5%, and in First Horizon of 2.4%. Northrop Grumman and Raytheon gained more than 1.7%.

South American Markets Indexes

In Latin Markets Peru led the decliners in the region with a loss of 4.41% followed by decreases in Brazil of 3.67%, in Argentina of 2.96%, in Chile of 2.62%, in Colombia of 2.3%, and in Mexico of 2.17%.

Asian Markets

In Tokyo Nikkei 225 Index closed lower 138.16 or 0.98% to 13,972.63, in Hong Kong Hang Seng index decreased 630.35 or 2.38% closed to 25,837.78, in Australia ASX 200 index closed lower 20.00 or 0.33% to close 5,960.00.

In South Korea Kospi Index decreased 18.93 or 1.07% to close at 1,746.95, in Thailand SET index closed lower 11.36 or 1.44% to 779.79. Sensex index in India decreased 476.96 or 2.30% to 20,251.09. Jakarta Composite Index in Indonesia fell 2.86% or 80.34 to close at 2,730.03 and in Singapore Strait Times Index fell 63.56 or 1.98% to close at 3,154.58.

European Markets

In London FTSE 100 Index closed lower 190.10 or 3.06% to 6,025.60, in Paris CAC 40 Index decreased 152.69 or 2.83% to close at 5,250.82 and in Frankfurt DAX index closed lower 165.64 or 2.14% to close at 7,717.95. In Zurich trading SMI declined 219.44 or 2.68% to close at 7,973.92.

Bond Yields decreased on 10-year U.S. bonds to 3.69% and 30-year bonds increased to 4.28%.

Commodities, Metals, and Currencies

Crude oil fell $2.29 to close at $91.91 per barrel for a front month contract, natural gas decreased 15 cents to $8.20 per mBtu, and gasoline futures decreased 6.41 cents to close at 230.87 cents per gallon.

1 2 3 4 5 6