It’s been a tough week for the market. A gap down is what you can expect to wake up to. It was another negative session on Wall Street with the S&P closing just shy of 1,300, as US data and fears over Europe weigh. This even as the much hyped Facebook issue is priced at USD 38 a share.
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European MarketsEuropean markets are heading for their steepest weekly loss since November after falling for a fourth straight session yesterday, as the banking crisis in Spain fuelled further concerns about a euro zone break-up. A report in a Spanish daily reported that customers had withdrawn more than 1 billion euro from troubled Spanish lender Bankia over the past week, but the government said it had taken fundamental steps to strengthen Spain's credibility. Moody's Investors service cut the ratings of 16 Spanish banks saying the government's ability to support some banks had weakened.
Europe Closing: DAX -1.2%, FTSE -1.24%; CAC -1.2%; Italy -1.5%; Spain -1.1%
Greece's Political TurmoilThe latest public opinion in Greece and the first one since the coalition talks collapsed shows Voters swinging back to the right putting the Conservative Peo austerity, pro bailout new democracy in first place but of course elections are still a month away. Meanwhile, ratings agency Fitch pushed the country's credit rating even further from B minus to CCC saying a Greek exit would lead to widespread private sector defaults.
US MarketsUS markets extended their losses in the final hour of trading to close near lows on high volumes, after Fitch downgraded Greece. The Dow has now closed lower for the last 11 sessions out of 12. The S&P is down over 7% from its April high and the Nasdaq has lost nearly 8% in may alone. Meanwhile, the CBOE Volatility Index surged almost 10% to close above 24, hitting a five-month high.
US Closing: Dow -1.2% at 12442.5; S&P -1.5% at 1304.9; Nasdaq -2.1%
And on the economic data front, initial claims for unemployment benefits came in unchanged at 370,000.
Facebook’s Social OfferingFacebook prices its historic IPO at USD 38 per share, the high end of the range the company upped earlier this week. The deal will raise USD 16 billion in all for Facebook with an over allotment option to raise USD 2.4 billion in additional proceeds possible in 30 days. This makes Facebook the largest internet IPO ever and third largest US offering. CEO Mark Zuckerberg and COO Sherly Sandberg will address employees before ringing the Nasdaq opening bell later today.
Asian MarketsAsia opens in the red with Nikkei down over 1%. Kospi is down 2.3%; Nikkei is down 2.1%; Hang Seng is down 1.7%; Italy is down 1.5%; Straits is down 1.5% and Shanghai is down 0.8%
Commodities & Currency CornerThe euro remained under pressure versus the dollar as fears of a Greek exit from the Euro sour sentiment. Continuing its free fall against the dollar, the rupee on Thursday declined further to 54.60 intra-day as the euro zone crisis and the country's deficit worries persisted.
In commodities, Brent crude oil prices tumbled over 2% to USD 106 per barrel levels, touching the lowest level since December, as investors avoided bets on riskier assets with the turmoil in Greece deepening. Gold prices surged more than 2% to trade above USD 1,570/oz, rising from a four-and-half month low and seeing their best intraday session in 2012 on increased physical buying.
Indian MarketThe BSE Sensex and NSE Nifty closed flat on Thursday amid never ending Greece concerns and a faltering rupee.
Stocks in NewsSources say the Lodha group is in advanced talks to buy
DLF's Mumbai land plot for USD 500 million (17 acre plot)
Speciality Resturants IPO closes today. It saw a poor response with a total subscription 0.02 times.
In a CNBC-TV18 exclusive, top government sources say that FDI in aviation is in final stages of approval and that a final decision is likely in three weeks.
German Parent Styrolution plans to delist its Indian unit Styrolution ABS, reports the Economic Times. (CMP Rs 709)
Linde may delist
BOC by June end, reports DNA. (CMP Rs 400)
Bharti Airtel slashed its 3G data plan rates by up to 70%, a move that may change market dynamics, as it marks the first price reduction by an incumbent operator in three years.
The Finance Ministry has warned banks to crack the whip on loan recasts, reports the Economic Times.
Texmaco Rail & Engineering signs a JV with a French group Touax Rail for entering into the business of wagon leasing.
Koutons Retail board will meet to consider the preferential issue of equity shares to promoters and others for up to USD 200 million.
IPCA Labs will merge Tonira Pharma with itself and will give 6 company shares for every 100 of Tonira Pharma. IPCA Labs holds 32.3% stake in Tonira Pharma.
Akzo Nobel India’s board will consider buyback of shares.
Earnings to WatchSBI, Coal India, Tata Steel, Karnataka Bank, HOEC, Manappuram Finance, OMDC, Shriram City Union, City Union Bank, Alok Industries, Eclerx, Tata Investment, Torrent Pharma, Ashoka Buildcon, Andhra Cement, Balmer Lawrie, Deepak Fert, Petron Engg, Panacea Bio, Saint Gobain and Siyaram Silk Mills.
Chelsea Saldanha
chelsea.saldanha@network18online.com 
