Sep 24 - Stocks Drop Lower due to Weaker growth and debt concerns
|Sep 24 - Stocks Drop Lower due to Weaker growth and debt concerns|
(Reuters) - Stock markets and the euro fell on Monday as investors looked past recently announced central bank stimulus plans and focused instead on weak economic fundamentals and the euro zone's unresolved debt crisis.
U.S. stocks followed the trend as weak German economic data caused investors to question the prospects for global growth. The MSCI world equity index .MIWD00000PUS fell 0.5 percent to 335.98.
"We've had such a strong quarter that it's difficult for us to keep moving up, especially since we're so light on economic news to trade on," said Oliver Pursche, president at Gary Goldberg Financial Services in Suffern, New York. "We're maybe in a sideways market without a lot of action for a while."
The Dow Jones industrial average .DJI was down 26.21 points, or 0.19 percent, at 13,553.26. The Standard & Poor's 500 Index .SPX was down 4.54 points, or 0.31 percent, at 1,455.61. The Nasdaq Composite Index .IXIC was down 22.83 points, or 0.72 percent, at 3,157.13.
Apple Inc (AAPL.O) was a big mover in New York trade on news it sold out of its latest iPhone 5 smartphone, with the company saying more than 5 million sold in the three days since it hit stores. Apple shares fell 1.4 percent to $690.58 in midday New York trade.
EURO EXTENDS LOSSES
The euro extended losses against the U.S. dollar after a disappointing survey on German business sentiment and uncertainty over Spain and Greece undermined the single currency. The euro was last down 0.5 percent at $1.2911 and has shed more than 1.5 percent from a four-month peak reached on September 17.
"German business sentiment as measured by the IFO dropped further as investors remain reticent despite the European Central Bank's 'bazooka' plan," said Christopher Vecchio, currency analyst at Daily FX in New York.
The German data showed a drop in business sentiment for a fifth successive month in September to its lowest level since early 2010, showing even the strongest of Europe's economies is succumbing to an economic downturn despite the European Central Bank's recently announced bond-buying plan. European shares .FTEU3 lost 0.3 percent. <ID:L5E8KO365>.
Other parts of the currency market reflected concerns surrounding global economic health. The growth-linked Aussie dollar slid as a rally sparked by recent central bank stimulus moves ran out of steam, while the yen and the U.S. dollar .DXY, traditional safety zones, both firmed.
U.S. debt prices rose as weak euro zone data encouraged the buying of low-risk government bonds, with the health of the struggling global economy at the heart of investors' concerns.
The yield on 10-year U.S. Treasury notes fell to 1.7129 percent from 1.755 percent in late U.S. trade on Friday.
Spanish debt worries remained the other dominant theme in debt markets.
Madrid is expected to present its 2013 draft budget plan later this week and announce new structural reforms. The results of stress tests on the Spanish banking sector are also due.
These could set the stage for a full-scale bailout although European Union officials have said they do not expect Prime Minister Mariano Rajoy to seek an[..]istance program before a key regional election on October 21.
The slow progress likely in Madrid is driving investors gradually back into the safe-haven German debt market, pushing the yield on 10-year safe Bund lower.
The main commodity markets also moved lower as the disappointing German data and a firmer dollar pressured prices.
Brent crude futures for November fell $2.48 a barrel to $108.95. U.S. crude was $0.78 lower at $92.86 per barrel.
Weaker growth and debt concerns push stocks lower | Reuters
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|09-24-2012, 05:31 PM||away - #2|
more great news....
!!... this economy has gotta start turning the !! around sometime...
|09-25-2012, 02:57 PM||online - #3|
Should be interesting. I bought some shares in the housing industry last Thursday and it skyrocketed. Then went back down to it's orig state this week and still going down. I'm thinking !!s gunna start looking good in the housing industry.
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