US mkts flat; economic data slightly lower than forecast
The US equity markets shed some weight ahead of ECB meet tomorrow. US data was slightly lower than expectations.
September 05, 2012 / 09:09 IST
By Gautam Broker, Research Analyst at CNBC-TV18
The US equity markets shed some weight ahead of ECB meet tomorrow. US data was slightly lower than expectations.Much awaited ISM Manufacturing Index for August fell to 49.6 as against 49.8 in previous month, which was below the forecast of 50 It was the third successive monthly contraction led by weak export orders. Inventory build-up is indicating further weakness.US Construction Spending was optically weak at minus 0.9% MoM as against expectations of +0.4%, but internals were encouraging.US Markit PMI for August stood at 51.5 in August as against 51.4 in previous month. New orders were weak.Spanish PM says he will seek German Chancellor Angela Merkel support first before approaching EU for aid on sovereign.Italian prime minister Mario Monti and French president Francois Hollande will meet in Rome; they expressed need to urgently cap spreads.Hollande will meet EU Council Chief today and Merkel will meet Spanish PM tomorrow.EU data was unexciting: Eurozone PPI stood at 0.4% MoM as against expectation of 0.2% while UK construction PMI was at 49 as against forecast of 50.US markets at close: Dow Jones declined 0.4% to 13,035.9 and S&P 500 Index was down 0.1% to 1,404.9. Nasdaq Composite was up 0.3%. Volatility Index gained 3% at around 18.European markets at close: CAC lost 1.6% and DAX fell 1.2% whike FTSE slipped 1.5%. Asia Today Kospi tumbled 1.5%.Taiwan Weighted and Hang Seng were down 1.1%Nikkei went down 0.75% and Straits Times declined 0.5%Shanghai was down 0.1%SGX Nifty fell 0.55% or 30 points to 5272CurrenciesEuro hit a session high at 1.263 to the US dollar yesterday Euro was trading at 1.253 to the US dollar today morning, attributed to mild profit taking ahead of ECB meet tomorrow.Dollar Index defended 81, which gained 0.3% at 81.5 todayYen was steady at 78.4 to the US dollar yesterday.Australian dollar was mildly weak at 1.02 to the US dollar. RBA left rates unchanged yesterday.Commodities Brent crude saw high of USD 116.7 a barrel, but fell 1.5% to close at USD 114.2 a barrelWTI crude was down 1.4% at USD 95.3 a barrel after seeing USD 97.4 a barrel.IEA chief says high oil price is a cause for concern; API inventories will be announced today Gold has been facing resistance at USd 1700 an ounce. It hit a high of USD 1698.5 an ounce yesterday, which was at USD 1694 an ounce today.Soybean was at an all-time high in the US yesterdayWhat to watch out forAustralia Q2 GDPGermany, Italy, France, UK, EZ Services PMI Eurozone Retail Sales US Mortgage Applications ISM New York Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
