New Zealand/Australia Morning Call-Global markets

04-Feb-2014 Intellasia | Reuters | 6:00 AM Print This Post

A selloff in emerging markets sent a cold chill down Wall Street, triggering a slide on Friday and making January its worst month since May 2012 after one of its best years in more than a decade.

For January, the Dow tumbled 5.3 percent and the S&P 500 slid 3.6 percent – their worst monthly percentage declines since May 2012.

The Dow Jones industrial average fell 149.76 points or 0.94 percent, to end at 15,698.85. The S&P 500 lost 11.60 points or 0.65 percent, to finish at 1,782.59. The Nasdaq Composite dropped 19.25 points or 0.47 percent, to close at 4,103.88.

For a full report, double click on – - – - LONDON – British blue chip shares fell to six-week lows on Friday and were set for their worst month since June, as beverage stocks suffered from emerging-market turmoil and disappointing results.

The FTSE 100 closed down 28.01 points, or 0.4 percent, to 6,510.44 points. It fell 3.5 percent in January, its biggest monthly decline since last June and its worst January since 2010.

For a full report, double click on – - – - TOKYO – The Nikkei share average fell to a fresh 2 1/2-month low on Friday, erasing earlier gains after a rise in the yen soured sentiment.

The Nikkei ended 0.6 percent lower at 14,914.53, the lowest closing level since November 14. The index shed 7.8 percent for the week and 8.5 percent for the month.

For a full report, double click on – - – - FOREIGN EXCHANGE NEW YORK – The euro fell on Friday as soft euro zone inflation data rekindled concerns the European Central Bank may have to act to combat deflation, while the dollar strengthened on mildly encouraging data to close out its best month since May.

The euro fell 0.4 percent against the dollar at $1.3498 after touching its lowest level since late November.

The single currency also hit a two-month trough against the yen, last down 0.8 percent against the Japanese currency at 138.14 yen.

For a full report, double click on – - – - TREASURIES NEW YORK – US Treasuries prices rose on Friday with benchmark yields falling to their lowest level in over two months on lingering troubles in emerging market economies, leading safe-haven bonds to notch their strongest gains in 20 months in January.

Benchmark 10-year Treasury notes were last up 11/32 in price to yield 2.65 percent, compared with a yield of 2.70 percent late on Thursday. The 10-year yield fell to 2.646 percent earlier, which was its lowest level since early November.

For a full report, double click on – - – - COMMODITIES GOLD NEW YORK – Gold fell on Friday, notching its first weekly drop in six due to strong US economic growth, concerns over the US Federal Reserve’s withdrawal of monetary stimulus and a slump in Chinese demand.

Spot gold edged up 16 cents to $1,243.36 an ounce by 3:42 p.m. (2042 GMT), paring losses after a 2 percent drop overnight.

US gold futures for April delivery settled down $2.70 at $1,239.80 an ounce.

For a full report, double click on – - – - BASE METALS LONDON – Aluminium touched fresh 4-1/2 year lows on Friday and ended down more than 5 percent for the month as well-stocked consumers provided little support amid turmoil in emerging markets and worries about Chinese growth.

Three-month aluminium on the London Metal Exchange ended down 1.4 percent at $1,706 a tonne, after falling as low as $1,698.25 a tonne, the weakest since July 2009.

For a full report, double click on – - – - OIL NEW YORK – Oil prices fell on Friday, with Brent posting its biggest monthly loss in four months, on worries over the outlook for emerging economies and fallout over the US Federal Reserve’s decision to continue tapering its stimulus programme.

Brent crude settled $1.55 lower at $106.40. For the month of January, it ended 4 percent lower, the biggest monthly percentage decline since September. Trade was thin with some Asian markets closed for the Lunar New Year holiday.

US oil shed 74 cents to settle at $97.49 per barrel, ending January about 1 percent lower.


Category: Regional

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