World markets narrowly mixed as recovery weighed

BANGKOK — World markets were in a holding pattern on Tuesday, with stock benchmarks narrowly mixed as investors looked to earnings as a possible antidote to pessimism about a quick economic recovery.

By (AP)

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Published: Tue 7 Jul 2009, 2:56 PM

Last updated: Thu 2 Apr 2015, 4:42 AM

Last week’s gloomy unemployment figures from the U.S. and Europe continued to dampen sentiment, keeping the breaks on the massive rally in world markets that began in early March on hopes the recession had run its course.

Oil slid below $64 after also tumbling the day before, keeping a lid on commodity stocks.

There is only a thin schedule of data this week from the world’s largest economy but the start of the second-quarter earnings reporting season will provide clues as to whether companies have seen the worst of the recession. U.S. aluminum giant Alcoa Inc. opens earnings season on Wednesday.

Trading volumes have been thin lately as investors ponder whether they read too much into signs the global economy was stabilizing, said Song Seng Wun, head of research at CIMB in Singapore.

“Now it’s a question of taking a step back and seeing to what extent we are getting sustainable growth,” he said. “Confidence could deteriorate further because of the worsening job market in the U.S.”

As trading got underway in Europe, Britain’s FTSE 100 was down 0.1 percent while Germany’s DAX and France’s CAC 40 each fell about 0.2 percent. Stock futures pointed to modest losses Tuesday on Wall Street. Dow futures dropped 44, or 0.5 percent, to 8,233 and S&P futures were down 5.1, or 0.6 percent, to 890.40.

In Japan, the Nikkei 225 stock average lost ground for a fifth day, falling 33.08 points, or 0.3 percent, at 9,647.79 while Hong Kong’s Hang Seng shed 117.14, or 0.7 percent, to 17,862.27. South Korea’s Kospi rose 0.4 percent to 1,434.20.

Elsewhere, China’s Shanghai fell 1.1 percent and Australia’s market retreated 0.4 percent. Singapore trimmed gains to be almost flat.

India’s Sensex was up 0.5 percent after tumbling nearly 6 percent the day before on disappointment with a government budget that unveiled aggressive new spending to reduce poverty but lacked much anticipated business reforms.

Stocks edged higher Monday on Wall Street after the Institute for Supply Management said its services index rose in June from May, suggesting that recession in the nonmanufacturing parts of the economy was easing.

The Dow Jones industrial average rose 44.13, or 0.5 percent, to 8,324.87, and the broader Standard & Poor’s 500 index rose 2.30, or 0.3 percent, to 898.72. The technology-heavy Nasdaq composite index fell 9.12, or 0.5 percent, to 1,787.40.

In oil, crude for August delivery slid 46 cents to $63.57 a barrel, extending a 13 percent drop in the past week on doubts about the strength of any global economic recovery. On Monday, it fell $2.68 to settle at $64.05.

The dollar, meanwhile, gave up early gains, slipping to 95.02 yen from 95.20. The euro retreated to $1.3921 from $1.3973.



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