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GLOBAL MARKETS-Shares, euro hit by weak earnings, Spain
October 23, 2012 / 2:25 PM / 5 years ago

GLOBAL MARKETS-Shares, euro hit by weak earnings, Spain

* Lackluster earnings hit Wall St; major indexes down more
than 1 pct
    * Euro hits global session low vs yen and dollar
    * European shares fall further to new 1-1/2 week low


    By Angela Moon
    NEW YORK, Oct 23 (Reuters) - Global shares and the euro
dipped on Tuesday after a slew of weak U.S. corporate results, a
slump in French business confidence and more pain for Spain
weighed on investors' hopes for recovery.
    U.S. stocks fell sharply, with major stock indexes down more
than 1 percent in early morning trade, on disappointing
quarterly results and outlook from a host of large multinational
companies like Dupont, 3M, United Technologies
 and UPS.
    Dupont shares were down 8 percent at $45.75 and 3M shares
fell 3 percent to $89.60.
    Adding to these economic concerns was a fall in Spanish bond
prices after Moody's downgraded five of the country's regions
including economically important but deeply indebted Catalonia.
 
    "The markets have been hard to figure lately. Uncertainty
has not eased. Not in Europe, not in the Middle East, not in
China or Japan and not in the U.S., with a dead-heat election
battle and unknown future Congressional dynamics," said David
Brown, CEO of Sabrient Systems, an independent equity research
firm.
    "Companies overall continue to beat earnings, mostly, and
miss on revenues. Now there is a certainty: earnings cannot keep
going up if revenues keep going down."
    The Dow Jones industrial average was down 183.64
points, or 1.38 percent, at 13,162.25. The Standard & Poor's 500
Index  was down 19.61 points, or 1.37 percent, at
1,414.21. The Nasdaq Composite Index  was down 34.93
points, or 1.16 percent, at 2,982.02. 
    European shares extended their earlier losses, with a key
index falling to a its lowest level in one and a half weeks. The
FTSEurofirst 300 index was down 1.7 percent at 1,089.01
points, its lowest intra-day level since Oct. 11. Global shares
 fell 1.4 percent.
    The euro slid to its lowest since Oct. 16 against the dollar
to $1.2972, and last traded at $1.2974, down 0.7 percent
on the day. It also dropped against the yen.
    The U.S. Federal Reserve's policy committee is set to begin
the first day of a two-day meeting on interest rate policy on
Tuesday. The Federal Open Market Committee is likely to hold off
from taking fresh steps at the meeting, opting to review the
impact of the significant action it took last month and keep a
low profile in its last gathering before the Nov. 6 general
election. 
    The New York Times reported Fed Chairman Ben Bernanke has
told close friends he probably will not stand for a third term
at the central bank even if President Barack Obama wins the Nov.
6 election.

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