Market Buzz: European debt rattles markets

Market Buzz: European debt rattles markets
Russian equities will likely open lower Tuesday reflecting a drop in oil prices and economic uncertainty in Europe.

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.