1:00PM NY, 5:00 PM Frankfurt European markets finished in the red on credit-market concerns.
European stock markets finished in the red for a third day in a row. Stocks traded in a volatile session, weighed down by credit-market concerns, sparked yet again by Cadbury Schweppes, which delayed the sale of its U.S. beverage unit. Worries about the worsening climate for financing corporate takeovers added to negative sentiment. After the biggest one-day sell-off in four years on Thursday, the U.K. closed down 0.6%.France followed suit, losing 0.6%, while Germany dropped 0.8%.
In Frankfurt Deutsche Bank, Commerzbank posted significant losses, falling 0.6% and 0.8%, respectively. Shares of Allianz lost 2%, as several large European insurance companies continued to worry about the portfolio exposure. There were companies posting gains on the back of their quarterly financial results. Volkswagen rose 3.6% as the auto maker said it expects to meet its 2008 earnings goal a year early.
In Paris shares of insurance company Axa continued to decline, down 0.9%. Cap Gemini was another notable loser, falling 2.3%. Shares in luxury-goods firm LVMH added 1% on strong first-half sales and profit from recurring operations. Saint-Gobain rose 2% after the supplier of building materials posted 31% rise in first-half net income.
In London candy and beverage group Cadbury Schweppes gained 2.4%, as investors expressed relief that the sale wasn''t scrapped altogether. The mining sector stood out among the most notable losers again, with shares in Rio Tinto falling 2.7% and Antofagasta losing 3.6%. Among insurers, Irish Life & Permanent declined 3.8%
11:30AM U.S. stocks extended recent decline, led by oil and financial stocks.
U.S. stocks continued to trade in a bearish mood, extending decline from the selloff in the previous session. Generally positive economic data, showing robust economic growth in Q2 failed to offset losses.
Energy companies led decliners, despite a notable increase in crude oil prices. Chevron (
CVX: chart) fell 1.6%, despite reporting a 24% jump in Q2 profit. Sunoco (
SUN: chart) and Marathon Oil (
MRO: chart) also posted steep losses, falling 3.8% and 5%, respectively.
Sell-off in financial shares continued on concerns that losses in the subprime mortgage market may spill over into the broader market. Citigroup (
C: chart) lost 0.9%. Oil-sensitive airlines, housing stocks, natural gas, disk drive, and tobacco stocks also moved significantly lower.
The Dow Jones industrial average was down 89.90 points, or 0.67%, at 13,383.67. The Standard & Poor''s 500 Index was down 9.91 points, or 0.67%, at 1,472.75. The Nasdaq Composite Index was down 15.25 points, or 0.59%, at 2,584.09.
10:00AM New York, 8:30PM Mumbai – Sensex drops led by a global decline. Ballarpur Industries soars 7% on restructuring.
The Sensex in Mumbai trading pummeled 541.74 or 3.4% to 15,234.57 participating in a global sell-off in stocks on a heavy trading volume. Emerging markets suffered most led by 4.2% decline in Turkey, 4% loss in Brazil and similar losses in Korea and Philippines.
Stock trading turnover on BSE totaled 6,593 crore rupees, up 15% from a day ago trading volume of 5,758 crore rupees. Only three stocks in 30-stock index managed to close higher and the rest declined.
Gainers
Ballarpur Industries soared 7% to 131 rupees after the company decided to transfer controlling stake in three manufacturing plants to an overseas subsidiary. The new company with a capitalization of 1,950 crore rupees will look for international acquisition.
Moser Baer increased 2% to 311 rupees after the company and Norwegian based REC Group have signed silicon wafer sourcing deal for eight years.
Earnings
Largest cigarette maker, Indian Tobacco Company, reported 20% increase in the first quarter earnings to 782 crore rupees, largely on higher prices of its cigarettes. The company sale increased 16% to 3,325 crore rupees. The stock after the news jumped 2.7% to 171 rupees. During the week company also announced a plan to spin off its consumer products group.
