July 25, 2014 / 4:12 PM / 3 years ago

GLOBAL MARKETS-Stocks, euro slip as German data, U.S. earnings drag

* Euro dips, European shares subdued after downbeat German
Ifo survey
    * Wall Street lower in midday trading
    * Amazon.com, Visa down after disappointing results
    * Russian shares, bonds fall

 (Updates prices, adds quotes, details on Amazon.com results)
    By Caroline Valetkevitch
    NEW YORK, July 25 (Reuters) - U.S. earnings disappointments,
including from 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, followed by
Visa, whose results also disappointed. Amazon dropped 11
percent to $319.24, a day after reporting an unexpectedly big
loss for the second quarter. Visa shares were 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
    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 0.4 percent
and European stocks down 0.8 percent.
    The Dow Jones industrial average fell 136.46 points
or 0.8 percent, to 16,947.34, the S&P 500 lost 10.45
points or 0.53 percent, to 1,977.53 and the Nasdaq Composite
 dropped 32.08 points or 0.72 percent, to 4,440.03.
    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.
    "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 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 a U.S. durable goods report.
Ten-year Treasuries were up 8/32 in price to yield
2.478 percent. 
    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 down 43 cents $101.64 a barrel, while
Brent was up 80 cents at $107.87. 

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

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