Visa Inc., the largest retail electronic payments network posted strong fiscal fourth quarter results on higher global volumes and strength of U.S. charges. The adjusted diluted earnings in the fourth quarter was $448 million or 58 cents a share and for the year was $1.7 billion or $2.25 a share.
U.S. stocks dropped more than 5% and crude oil futures declined 7%. Nervous investors worried after steel companies lowered production targets and energy complex stocks fell. Private sector employment fell according to survey conducted by ADP.
Agrium Inc rose after third quarter revenues and earnings surged. ArcelorMittal plunged after it increased its cuts in production target for the fourth quarter. Blue Nile sales fell 3%. The Boston Beer Company and Kenneth Cole Productions reported quarterly losses.
U.S. stocks edge lower after the historic Presidential election. The president-elect Barack Obama is likely to increase infrastructure spending and accelerate the pullout of the U.S. troops from Iraq. The Libor rate dropped, but still hovers above the Fed rates. Japan and China closed up.
London stocks fell 2.3% on a slew of negative government reports that showed the UK manufacturing output dropped in September and service sector activity declined in October. Commodity stocks also plunged as oil and metal prices declined. ArcelorMittal lowered production target.
Stocks in Tokyo surged after the victory of Barack Obama in the U.S. Presidential election. Investors in Japan speculated that change in economic policies may revive the U.S. economy and exports from Japan faster. Sumitomo Heavy Industries surged 23% after it reported better than interim profit.
Hong Kong and Shanghai market indexes surged on the hopes that the U.S. president-elect Barack Obama will revive the economic growth and exports from China may not decline next year. Manufacturing index in China declined in October from September. Interbank rates in Hong Kong fell to 2.55%.
Mumbai stocks fell sharply in the afternoon trading. Sensex index closed down nearly 5% and CNX Nifty index dropped below 3,000 mark. Wireless carriers fell after the government plan to impose higher additional taxes. Bharti Airtel dropped 4.5% and Reliance Communication declined 10%.
Australia lowered its budget surplus, economic growth and tax receipts collection targets for the next three fiscal years. Global economic slowdown is expected to lift unemployment and slow down household expenditures. September housing permits approval dropped 7.2% from August.
MasterCard reported third quarter revenue rise of 24% and a loss of $1.49 a share or $193.6 million. After excluding one-time charges the company reported net income of $2.47 a share and guided that it is likely to miss its earnings revenue target in the next year.
