Major indexes fell in Europe and the U.S., and the trend is being followed by the Asian giant China. Earlier, European and U.S. stock-index futures dropped to some extent and even Asian shares declined the most in six weeks as indications came from China that its service industries are falling behind the set target. A major blow came when emerging-market currencies slid as the yen rallied with gold.
China which is facing huge challenges as its manufacturing sector is down and is also seeing a fall in non-manufacturing sector. It fell to a four-month low in December and according to some market observers investors cannot count on China to contribute to global growth now as the economy is still under structural adjustment and there’s no excitement in the macro economy.
Major Indexes and Their Performances
Major indexes were down today; whereas the Euro Stoxx 50 Index futures dropped 0.2 percent at 7:02 a.m. in London, the MSCI Asia Pacific Index excluding Japan too was on a losing streak, as it lost 1.1 percent. A similar pattern was seen in the Standard & Poor’s 500 Index (SPX) which fell a little and received a loss of 0.3 percent. Reason behind the fall of the S&P is a fall in the U.S. equity gauges.
A setback in Asian stock markets can be seen from the fact that about five shares fell for each one that rose on the MSCI Asia Pacific. Slight to higher losses were recorded in Asian stocks. Whereas the Hang Seng China Enterprises Index lost 2.6 percent, Australia’s S&P/ASX 200 Index (AS51) dropped 0.3 percent.
Downfall was also recorded in equity gauges in Shanghai, Seoul and Jakarta which all declined more than 1 percent amidst the concerned trading. The major loser in today’s trade was Samsung Electronics Co. which lost 1 percent and extended the earlier day’s 4.6 percent plunge after brokerages cut earnings estimates.
Following the trend in the regional market, the nation’s biggest lender, Industrial & Commercial Bank of China Ltd., also received losses when its stocks received a loss of 2.5 percent in Hong Kong. It is the lowest level in four months. A major concern for Japanese exporters is that its currency climbed to 104.33 per dollar and extended this week’s advance to 0.8 percent, increase in exchange value means lower returns on exports.
To contact the reporter of this story: Jonathan Millet at email@example.com