July 25, 2014 / 3:35 PM / 3 years ago

GLOBAL MARKETS-Stocks, euro fall as German data, U.S. earnings disappoint

4 Min Read

* Euro dips, European shares subdued after downbeat German
Ifo survey
    * Wall Street lower in early trading
    * Amazon.com, Visa down after disappointing results
    * Russian shares, rouble, bonds fall; central bank surprises
with rate hike

 (Updates with U.S. market opening, changes dateline; previous
LONDON)
    By Caroline Valetkevitch
    NEW YORK, July 25 (Reuters) - Weak German economic data and
some earnings disappointments pressured world stock markets on
Friday and left the euro at an eight-month low against the U.S.
dollar.
    Stronger-than-expected U.S. durable goods data also helped
the dollar.
    U.S. stocks were lower in early trading, hurt by results
from Amazon.com and Visa, the two biggest drags
on the S&P 500. Amazon dropped 11.1 percent to $318.79, while
Visa was down 4.9 percent at $211.90.
    "Earnings have been the driving force of this market all
week. We had a series of good reports but Amazon in particular
was a disappointment and has led to some profit-taking," said
Rick Meckler, president of LibertyView Capital Management in
Jersey City, New Jersey.
    Signs emerged that tensions between the West and Russia are
starting to hurt confidence in Europe's dominant economy.
Germany's Ifo survey revealed a hefty fall in business
confidence over the last few weeks, prompting concerns the
region's growth engine and driver of its recovery could be
stuttering. 
    It was the third consecutive fall in an index which monitors
the mood of thousands of German firms. 
    MSCI's All-World Index was down 0.5 percent
and European stocks down 0.8 percent.
    The Dow Jones industrial average fell 154.06 points
or 0.9 percent, to 16,929.74, the S&P 500 lost 12.36
points or 0.62 percent, to 1,975.62 and the Nasdaq Composite
 dropped 38.35 points or 0.86 percent, to 4,433.76.
    The euro hit an eight-month low against the dollar of
$1.3427 after U.S. durable goods orders data, which
followed more positive U.S. jobless data Thursday. 
    The euro also fell on ongoing tensions between Russia and
Ukraine. European officials are to continue talks over plans to
squeeze Russia with further sanctions following the downing of a
Malaysia Airlines that killed almost 300 people. 
    Dollar-traded Russian stocks fell 1.6 percent to
bring losses over two weeks to roughly 12 percent. Russian bonds
also fell as the country's central bank unexpectedly raised
interest rates. 
    U.S. Treasuries prices jumped, with fixed-income traders
disappointed by soft spots in the U.S. durable goods report.
Ten-year Treasuries were up 8/32 in price to yield
2.478 percent. 
    Despite the heftier-than-forecast 0.7 percent overall rise
in orders for long-lasting U.S. manufactured items in June, some
focused on weakness in airlines and other sectors that shook
optimism about U.S. economic growth.
    Gold edged up after dropping to a one-month low
overnight, but was headed for a second straight week of losses. 
    U.S. crude was near flat at $102.07 a barrel, while
Brent was up 65 cents at $107.72. 

 (Additional reporting by Rodrigo Campos and Michael Connor in
New York, Marc Jones in London, Lisa Twaronite in Tokyo, editing
by John Stonestreet; Editing by Nick Zieminski)

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