Stocks: Wednesday’s review
Most Asian stocks advanced after Greece made progress in meeting requirements for additional international aid and Germany vowed continued support for the debt-laden country. Policy makers have been pushed to act because Europe’s situation has gotten so bad. That’s given stocks a little lift, but if real progress isn’t made, we could see markets go right back down again.
Nikkei 225 8,616 +5.70 +0.07%, Hang Seng 18,011 -119.49 -0.66%, S&P/ASX 200 4,040 +34.96 +0.87%, Shanghai Composite 2,392 -22.99 -0.95%
Esprit Holdings Ltd. (330), a clothier that counts Europe as its biggest market, surged 12 percent in Hong Kong. Oki Electric Industry Co. climbed 9.2 percent in Tokyo after the Nikkei newspaper reported the electronics maker may post its first profit in seven years. CSR Corp., China’s biggest train maker, fell 1.7 percent in Shanghai on speculation the government will slow rail expansion following another accident.
Еuropean stocks declined, snapping the biggest three-day rally in 16 months, amid concern that holders of Greek bonds will suffer larger losses than previously agreed upon.
FTSE 100 5,218 -76.42 -1.44%, CAC 40 2,996 -27.76 -0.92%, DAX 5,578 -50.02 -0.89%
Man Group Plc (EMG) sank the most in almost three years as the world’s biggest hedge fund said assets under management will decrease. Cairn Energy Plc (CNE) slid 6.5 percent after abandoning an exploration well. Deutsche Boerse AG (DB1), the operator of the Frankfurt stock exchange, lost 4 percent as the European Union proposed a financial-transactions tax.
U.S. stocks declined, halting a three-day rally for the Standard & Poor’s 500 Index, amid growing concern that European leaders are divided over how to handle Greece’s debt crisis.
All 10 industry groups in the S&P 500 fell at least 0.6 percent, with companies most-tied to economic growth dropping the most. Dow Chemical Co. (DOW) and Alcoa Inc. (AA) slid at least 4.9 percent as commodities tumbled. Morgan Stanley and Bank of America Corp. (BAC) lost more than 4.9 percent, pacing declines among financial shares. Amazon.com Inc. (AMZN) rose 2.5 percent after the company launched its Kindle Fire tablet computer, taking aim at Apple Inc.’s bestselling iPad.
The S&P 500 lost 2.1 percent to 1,151.06 at 4 p.m. New York time, after rising as much as 0.8 percent earlier and rallying 4.1 over the previous three days. The Dow Jones Industrial Average fell 179.79 points, or 1.6 percent, to 11,010.90 today, with all 30 stocks retreating.