US stocks slip from day's high to end flat; ISM Mfg drops

By Varinder Bansal, Research Analyst at CNBC-TV18

US stock slips from day's high amid uncertainty and debate of US debt ceiling on Monday. Economic data continued to be poor - ISM Manufacturing Index for July dropped unexpectedly.

House of Representatives passed US debt ceiling vote to raise the US debt limit by at least USD 2.1 trillion and cut federal spending by USD 2.4 trillion or more. Senate vote will be done today.

The Dow Jones Industrial Average ended down 11 points at 12,132, after slipping 150 points from day's high of 12,282.

NASDAQ Composite ended down 12 points at 2,745, after seeing a fall of 51 points from day's high of 2,796.

S&P 500 Index closed down 5 points at 1,287, afte slipping 21 points from day's high of 1,308.

European shares fell sharply post reports showed that UK manufacturing contracted for the first time since the recession; France's CAC was down 2.3%, Germany's DAX down 2.86% and Britain's FTSE down 0.7%.

Other peripheral European markets; Italy plunged 3.87%. Spain was down 3.24%, Irish Overall Index down 2.3%, PSI General Index down 2.1% and Athex Comp down 1.7%.

Thomson Reuters Peripheral Eurozone Banking Index fell 6.2%; Italy's heavyweight Intesa SanPaolo too tumbled 7.9% after Citigroup cut its target price for all Italian banks.

CBOE VIX ended down 6.3% at 23.66.

Asian stocks opened down; Kospi was down 1.4%, Nikkei down 1.2%, Taiwan down 1.1% and Straits Times down 0.6%. SGX Nifty fell 0.68%.

Global economic news

ISM Manufacturing Index for July fell to 50.9 from 55.3 in June while market expected at 54

China's PMI Manufacturing Index for July too dipped to 50.7 from 50.9 in June

Euro zone manufacturing PMI fell to 50.4 in July from 52 in June - its worst showing since September 2009

As per Markit/CIPS, UK Manufacturing Index fell to 49.1 in July from a revised 51.4 in June