Traders work on the floor at the New York Stock Exchange yesterday. In noon trade on Wall Street, stocks were mixed, with the Dow Jones Industrial Average adding 0.1%, while the broad-based S&P 500 fell 0.11% and the tech-rich Nasdaq Composite Index shed 0.38%.
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European stocks closed down yesterday, as disappointing US data dampened positive sentiment earlier brought on by better than expected American blue-chip earnings and news that China may move to stimulate its massive economy.
After an initial positive session, European stock markets entered negative territory in afternoon trade.
“European markets did start the day on the front foot this morning buoyed by a positive Asia session,” CMC Markets UK analyst Michael Hewson said, but added that “the only economic data of note was the Richmond Fed manufacturing index for July, which missed expectations by a mile”.
London’s FTSE 100 index of leading shares finished the day 0.39% lower to 6,597.44 points, while Frankfurt’s Dax 30 shed 0.20% to 8,314.23 points and the Cac 40 in Paris
dropped 0.43% to 3,923.09 points.
The Spanish market bucked the trend, however, with the Ibex 35 index jumping 1.38% to end at 8,116.50 points after an upbeat short-term state bond auction that eased fears over the debt-ridden eurozone nation.
Earlier yesterday, comments made by Chinese Premier Li Keqiang boosted the stocks.
Quoted by a state-backed newspaper, Li said the “bottom line for economic growth is 7%”. The remarks were then interpreted by analysts as a hint that Beijing would move to prop up growth.
Dealers said Li’s comments also sent the mining sector soaring since China is a key consumer of metals.
In London, shares in commodities giant Glencore Xstrata rallied 5.09% to 282.7 pence, Anglo American jumped 2.14% to 1,435 pence and Rio Tinto gained 3.36% to 3,000 pence.
In Paris, shares in industrial and media conglomerate Bouygues rose by 6.85% to €22 because its subsidiary Bouygues Telecom is in exclusive talks with SFR on sharing some mobile phone network infrastructure.
STMicroelectronics stock however plunged 10.42% to €6.73 on a doubled-second-quarter loss to $152mn (€115mn).
In noon trade on Wall Street, stocks were mixed, with the Dow Jones Industrial Average adding 0.1%, while the broad-based S&P 500 fell 0.11% and the tech-rich Nasdaq Composite Index shed 0.38%.
Better-than-expected earnings from leading companies such as Dow components DuPont, United Technologies and Travelers failed to keep up the momentum seen in morning trade.
In foreign exchange deals yesterday, the European single currency climbed to $1.3215 from $1.3186 late in New York on Monday.
The dollar firmed to ¥99.74 compared to ¥99.59, while sterling eased to $1.5358 from $1.5360.
On the London Bullion Market, the price of gold increased to $1,333.50 an ounce from $1,327 on Monday.