Market Buzz: European debt rattles markets
Russian markets closed in the red on Monday amid weak data on Chinese growth and renewed concerns surrounding the European debt crisis. The MICEX shed 0.3% and the RTS declined 1%.
European stock markets dropped Monday, with investors reluctant to buy due to a meeting of eurozone finance ministers discussing the region’s debt troubles. The Stoxx Europe 600 slumped 1%, erasing Friday’s gains. Spain’s IBEX 35 lost 0.8% over declines in banking shares. Germany’s DAX 30 sank 1.4% after data showed that industrial production in Germany fell 0.5% in August.
US stocks closed in negative territory on Monday amid expectations of weaker earnings this quarter. Apple shares lost 2.2% following reports of a strike at their Foxconn factory in China. Facebook shed 2.4% after BTIG LLC downgraded the social network’s stock. The Dow Jones fell 0.2%, the S&P 500 declined 0.4% and the Nasdaq Composite lost 0.8%.
Mainland Chinese and Hong Kong stocks jumped Tuesday after the People’s Bank of China injected a large amount of cash into the banking system as a part of its stimulus policy. The Shanghai Composite advanced 2% and Hong Kong’s Hang Seng rose 1.1%. South Korea’s Kospi gained 0.1% and Australia’s S&P/ASX 200 climbed 0.6%. Japan’s Nikkei Stock bucked this trend, shedding 0.5% as investors returned from a long holiday weekend and sold off of commodity-related firms.