Market Buzz: Indices scramble for new drivers
Russian equities traded mixed Tuesday with telecom shares among the best performers. Rising oil prices and economic uncertainty in Europe made investors generally bearish – the MICEX shed under 0.1% and the RTS added 0.15%.
European markets closed in the red on Tuesday after the International Monetary Fund cut its global growth forecast for the second time this year. Resource firms were among the few gainers amid news that China offered $42.1 billion to ease tight liquidity conditions in the country’s banking system. The Stoxx Europe 600 dropped 0.5%, the French CAC 40 shed 0.7% and the German DAX lost 0.8%.
US stocks fell sharply Tuesday due to the IMF’s gloomy global growth outlook and a weak report from major aluminum producer Alcoa. The Dow Jones shed 0.8%, the S&P 500 fell 1% and the Nasdaq Composite declined 1.5%.
Asian markets posted losses Wednesday, with technology and steel firms the worst hit and the IMF forecast denting investor sentiment. Japan’s Nikkei declined 1.8% and South Korea’s Kospi dropped 1.2%, while Australia’s S&P/ASX 200 lost 0.3%. In China, Hong Kong’s Hang Seng slipped 0.15% and the Shanghai Composite added 0.1%.