Market Buzz: Backslide looms after steady growth

4 Apr, 2012 05:37 / Updated 12 years ago

Russian markets could open lower, proving sensitive to the news from the US floors, analysts say.

“Russian stocks could drop in the short term amid the US market decline,” says Alexander Osin, chief economist at Finam Management. “But the gap in growth tempo could limit sales of Russian shares.”US trades closed in the red after the Federal Reserve signaled there was less need of one more round of quantitative easing. The Dow Jones fell 0.5%, while the S&P 500 declined 0.4% and the Nasdaq Composite shed 0.2%.European share markets ended lower in a choppy session amid debt concerns on Italy and Spain, while weaker performance of banks contributed to investors’ gloomy sentiment. The Stoxx Europe 600 closed down 1.1%, the French CAC 40 closed 1.6% lower and Germany’s DAX 40 was 1.1% lower. The data on retail sales in the eurozone is expected later on Wednesday.Russian stocks climbed on Tuesday amid positive reports on business climate in China and the US and growing oil prices. The MICEX added 1.9% and the RTS climbed 1.8%.Asian stocks fell Wednesday as Australia reported a surprising trade deficit in February that accounts for AU$480 million (US$493 million), compared to an expected AU$1.1 billion surplus. Exports fell 2% from January amid a drop in coal shipments, according to the Australian Bureau of Statistics.Australia’s S&P/ASX 200 lost 0.3%, while South Korea’s Kospi declined 0.9% and Japan’s Nikkei Stock dropped 1.4%. Hong Kong and Shanghai markets were closed for a public holiday.