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Market Buzz: Falls on negative economic news backdrop

Market Buzz: Falls on negative economic news backdrop
Russian floors started off Tuesday lower on negative international outlook. A lower close on Wall Street, falling oil and weaker performance in Asia influenced the downward movement.

On Monday Russian stocks ended on the negative territory with the MICEX slipping 0.64 percent to 1335.25, and RTS losing 1.06 percent to 1300.54 on falling oil prices and mixed sentiment on the European floors.

Asian stocks were mixed Tuesday after the previous day's rally, with all eyes focused on a Bank of Japan policy meeting.

The Nikkei 225 dropped 1.06 percent to 13370.81 on the news that the Bank of Japan held its asset-buying and other policy elements unchanged Tuesday and offered no fresh moves to curb the recent volatility in the markets.

South Korea's Kospi slipped 0.68 percent to 1919.59, while the mainland China stock exchange remains closed for the holiday.

Hong Kong's Hang Seng fell 0.94 percent to 21411.81 on weak Chinese economic data. Consumer inflation in the world's second largest economy slowed down to a three-month low of 2.1 percent. Producer prices dropped to 2.9 percent, the lowest since September 2012.

Stocks in Australia were up Tuesday, adding 0.38 percent after a long weekend.

The US dollar edged lower in early Tuesday trading, with the yen higher after Japan’s central bank offered no new easing moves in its latest policy decision. The Bank of Japan held its asset-buying and other policy elements unchanged Tuesday, while using slightly more upbeat language on the economy.

Monday’s session on Wall Street ended mixed, having advanced on a revised credit outlook for the United States from negative to stable presented by Standard & Poor's, one of the world's largest credit rating agencies.

The Dow Jones Industrial Average closed slightly lower, at 15,238.52. The S&P 500 and the NASDAQ Composite ended flat.

Stocks in Europe closed slightly lower on Monday, pulled down by analysts’ warnings that growth in China would slow further after weaker-than-expected economic data.

"The macro data for May have confirmed that the economy is stuck in stagnant growth again after a brief rebound. The risk for growth is now predominantly on the down side," CNBC quotes Xianfang Ren, senior economist at HIS, who underlined that persistent deflation in producer prices and the pullback in fixed asset investment growth are two major dangers.

The UK’s FTSE100 slipped 0.18 percent closing at 6,400, while the German DAX added 0.64 percent and France’s CAC40 shed 0.21 percent.

Brent oil futures remained under $104 per barrel on Tuesday after the US nearly doubled its estimate of its shale oil reserves. Brent is currently 0.3 percent lower trading at $103.6, while the US oil, WTI, is also down 0.1 percent trading at $95.9.