Stocks Run Red As Argentina Default, Portugal Bank Blow Add To Concerns – Forbes
Procter & Gamble advanced 2 percent after cost cuts boosted profit. Chevron and Clorox will also report this morning. The calendar slows considerably next week. Tuesday brings service-sector data and factory orders, while Thursday features the European Central Bank’s interest-rate decision and monthly same-store sales from select retailers. Oil and copper fell about half a percent as commodities follow the bearish tone in stocks.
Australia Stocks Fall, With Banks Down, Miners Mixed | Fox Business
Among the “Big Four” banks, Australia & New Zealand Banking Group , Westpac Banking Corp. and National Australia Bank Ltd. all lost 0.5% apiece, while Commonwealth Bank of Australia was 0.4% weaker. Meanwhile the market offered a split decision on mining shares as the industry’s top players gathered in the Australian town of Kalgoorlie for the annual Diggers and Dealers conference. BHP Billiton Ltd.
China Stocks Surge: Time To Run With The Dragons? – Forbes
The real story, however, is Junes bank binge. Chinese financial institutions, apparently acting according to Beijings http://www.todayhotstocks.com direction, issued 1.08 trillion yuan in new renminbi loans compared to 870.8 billion in May. Total social financing, the comprehensive measure of credit growth, skyrocketed 40.7% in June from the preceding month, largely the result of off-balance sheet credit. And it appears June loans largely went to state entities. At the same time, Beijing also binged. In June, fiscal spending hit 1.652 trillion yuan, 26.1% more than in the same month last year. The good news for Chinas stock investors is that the central government has shown a clear determination to maintain growth. Premier Li Keqiang, the economic czar, talks about adopting targeted measures and rejecting strong stimulus, as he did last month, but in reality he has returned to the tactics of 2008 and 2009. Beginning in 2008, his predecessor, Wen Jiabao, splurged, dumping an unprecedented amount of cash into the economy. More money in circulation generally means stocks go up.
The Dow Jones industrial average was down 195 points, 1.2%, at 16,685 nearing noon, while the S&P 500 dropped 27 points, 1.4%, to 1,943, falling below its 50-day moving average. The Nasdaq, home to many of the high-multiple stocks that have acted like yo-yos in 2014 , was the worst of the trio with a decline of 1.7%, sliding 76 points to 4,387, while small caps were also crushed with the Russell 2000 down 1.9%.. Thursdays action was largely attributed to issues outside the U.S., coming a day after the latest reading on economic growth that showed a big rebound from the first-quarters dismal figure as GDP grew 4% in the second quarter. The tremors started late Thursday when talks between Argentina and its creditors hit a stalemate and Standard & Poors declared the country had entered selective default. (See Why Everyones A Loser In Argentinas Default. ) Early Thursday in Europe ,Portugals Banco Espirito Santo recorded a $4.7 billion loss that may severely impede its ability to raise needed capital. The international turmoil, coupled with the looming withdrawal of Federal Reserve stimulus, gave traders plenty of excuses to sell Thursday and sell they did.
Stocks tumbled last week, raising concerns about a correction – Aug. 2, 2014
The conflict in Gaza is unsettling and the showdown between Russia and the West over Ukraine is intensifying. Argentina is another hot spot, though investors seem confident that last week’s default won’t cause major problems in other emerging markets. In addition to geopolitical turmoil, investors are debating how the Federal Reserve may respond to the recent spate of strong economic data. U.S.