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Market Update : 
U.S. Stocks Fall 20% in 9 Months
Author: 123jump.com Staff
123jump.com
Last Update: 6:53 PM EDT June 27 2008


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U.S. stocks declined for the second day in a row as Dow Jones, S&P 500 and Nasdaq dropped to near 20% loss from its peak in October last year. The decline in stocks is likely to continue with rising inflation, falling home values, and tighter lending standards. Second quarter earnings at the U.S. corporation are liklely to decline more than the current estimate of loss of between 9% and 11%. Asian markets in the overnight trading fell sharply.

 
In Tokyo Nikkei 225 Index closed lower 277.96 or 2.01% to 13,544.36, in Hong Kong Hang Seng index decreased 413.32 or 1.84% closed to 22,042.35. In Australia ASX 200 index lower 70.00 or 1.32% to close 5,237.00. In Malaysia KL Composite index decreased 13.35 or 1.11% closed to 1,190.54.

In South Korea Kospi Index decreased 33.21 or 1.93% to close at 1,684.45, in Thailand SET index closed higher 1.34 or 0.17% to 775.73 and Indonesia JSE Index edged decreased 18.78 or 0.80% to 2,332.11. Sensex index in India decreased 619.60 or 4.30% to 13,802.22.

Commodities, Metals, and Currencies

Crude oil increased $0.57 to close at $140.21 a barrel for a front month contract, natural gas decreased 5 cents to $13.20 per mBtu, and gasoline futures decreased 1.01 cents to close at 350.12 cents per gallon.

Gold increased $16.20 in New York trading to close at $931.30 per ounce, silver closed up 49.00 cents to $17.71 per ounce, and copper for front month delivery increased 5.30 cent to $3.87 per pound.

Wheat futures decreased 30.750 cent in Chicago trading and closed at $9.12 per bushel. Sugar increased 21 cent to $12.74 per pound. Soybean future closed down 2.00 cents to $15.59 a bushel.

Dollar edged lower and traded near record low against euro to $1.5793 and fell against yen to 106.14.

Yields on U.S. bonds decreased to 3.97% with 10 years of maturities and decreased to 4.52% with 30-year of maturities.
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