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GLOBAL MARKETS-Stocks and euro hit by German data, U.S. results
July 25, 2014 / 7:12 PM / 3 years ago

GLOBAL MARKETS-Stocks and euro hit by German data, U.S. results

* Wall Street lower in afternoon trading
    * Downbeat German Ifo survey weighs on euro, European shares
    * Amazon.com, Visa down after disappointing results
    * Russian shares and bonds fall

 (Updates with oil settlement prices)
    By Caroline Valetkevitch
    NEW YORK, July 25 (Reuters) - Some disappointing U.S.
earnings, including those of Amazon.com, and weak
German economic data pressured world stock markets on Friday,
while the euro clung to an eight-month low against the U.S.
dollar.
    Amazon.com was the biggest drag on the S&P 500. Its shares
sank 10.2 percent to $322.12, a day after the online retail
giant reported an unexpectedly big loss for the second quarter.
Visa also reported results that disappointed, and its
shares were down 4.9 percent at $211.90.
    "The earnings season overall has been in line, but when
companies with rich valuations disappoint, you're going to get
crucified," said Lawrence Glazer, managing partner at Mayflower
Advisors in Boston. "Amazon and Visa are significant components
of the overall market and bellwethers of their respective
industries. That gives you pause."
    Signs emerged that tensions between the West and Russia are
starting to hurt confidence in Germany, Europe's largest economy
and the driver of its recovery. Germany's Ifo survey showed a
hefty fall in business confidence over the last few weeks,
prompting concerns that Germany could be stuttering.
 
    It was the third consecutive fall in the index, which
monitors the mood of thousands of German firms. 
    MSCI's All-World Index was down 0.4 percent,
and European stocks ended 0.7 percent lower.
    The Dow Jones industrial average fell 130.59 points
or 0.76 percent, to 16,953.21. The S&P 500 was down 9.14
points, or 0.46 percent, to 1,978.84, after three straight days
of intraday record highs, while the Nasdaq Composite 
dropped 23.24 points, or 0.52 percent, to 4,448.87
    The euro hit an eight-month low against the dollar of
$1.3427 after data showed that U.S. durable goods orders
rose more than expected in June. The rise in durable goods came
a day after U.S. jobless data that suggested the labor market
recovery was gaining traction.
    "U.S. data has been good or better than expected, whereas
European data continues to point to a slowdown," said Boris
Schlossberg, managing director in FX strategy at BK Asset
Management in New York. 
    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 plane 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, as fixed-income traders
focused on soft spots in the U.S. durable goods report. Ten-year
Treasuries were up 11/32 in price to yield 2.46
percent. 
    Gold edged up as the tensions between Russia and the
West over Ukraine prompted speculators to buy back their bearish
bets ahead of the weekend. Gold was on track to fall 1 percent
for the week. 
    U.S. crude rose 2 cents to settle at $102.09 a
barrel, while Brent was up $1.27 at $108.34.
 

 (Additional reporting by Ryan Vlastelica and Sam Forgione in
New York, Marc Jones in London, Lisa Twaronite in Tokyo; Editing
by Nick Zieminski and Leslie Adler)

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