Tip:
Highlight text to annotate it
X
I'm Amy Anderson for the Optionally News Team Let's take a look at the global market highlights
and news that all traders and investors should be aware of.
US Automakers take a beating Global stocks tumble as investors run for
the hills And Crude oil plunges on weak US data
Let's take a quick look at what is happening in the global markets now.
Markets collapsed around the globe on Monday as lackluster earning and the emerging nation's
crisis weighed on investors. US data printed below expectations sending Wall Street plummeting
with the Dow giving up over 300 points. The S&P 500 and NASDAQ were also down more than
2%. Investors were disappointed after the Institute for Supply Management's monthly
index showed that manufacturing activity last month expanded at its weakest pace since May.
General Motors fell 2.3 per cent after January vehicle sales slumped 12 per cent, while Ford
declined 2.7 per cent after its January sales dropped seven per cent.
January is typically the toughest month for car sales as showrooms empty out following
big year-end sales in December. But unusually brutal winter weather this year kept people
at home and even delayed delivery of sales to government and corporate fleets.
Asian shares fell following the latest official data for the Chinese manufacturing sector,
which indicated a modest slowdown in January, while European markets also closed lower.
In the foreign exchange markets, the greenback gained in early Asian trade this morning after
suffering a sell-off in New York in response to unexpectedly weak US manufacturing data
that raised concerns about the economy. The dollar bought 101.22 yen, up from 100.94 yen
late in New York but well down from 102.31 yen in Tokyo earlier Monday.
The euro was mixed at 1.35-18 dollars and 1-36.86 yen.
US currency markets were jolted after the Institute for Supply Management's purchasing
managers' index sank to 51.3 in January from 56.5 in December. A figure above 50 indicates
growth and anything below points to contraction. The latest figures throw the focus on US employment
figures due this week as investors look to gauge the state of the economy as the Federal
Reserve winds down its stimulus, citing a firming recovery.
There is a lot of data ahead this week with both the Bank of England and the European
Central Bank meetings on Thursday and the nonfarm payroll report on Friday.
Moving to the commodities market, gold prices gained by more than 1 percent yesterday on
the recovery in the gold ETF's holdings managed under SPDR Gold Holdings Trust. Further, weakness
in the DX acted as a positive factor. Gold traded at 12-57.20 at the close.
Nymex crude oil prices declined by more than 1 percent yesterday on the plunge in manufacturing
data from China, UK and the US indicating concerns over demand for the fuel in near
term. Manufacturing activity in the US is at the lowest level in the last eight months.
Further, weak market sentiments exerted downside pressure on the prices. Crude oil ended the
day at 96.40 after the data releases. This is Amy Anderson from OptionRally signing
off. Follow me on Facebook and watch for our new financial terms of the day and our weekly
events news.