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Overnight Markets: Wall Street dips ahead of jobs report

US and Asian markets slipped overnight in disappointment to the steps taken in China, Europe and Britain to loosen monetary policy.

Overnight Markets: Wall Street dips ahead of jobs report

Wall Street declined on Thursday amid disappointment over economic stimulus measures taken by major central banks and as investors awaited U.S. jobs report to be released today.

The Dow Jones industrial average was down 47 points, or 0.36%, at 12,897. The Standard & Poor's 500 Index was down six points, or 0.47%, at 1,368. The Nasdaq Composite Index was flat at 2,976.

Equities declined as investors were little impressed by the steps taken in China, Europe and Britain to loosen monetary policy, which sent the euro lower against the US dollar. European Central Bank President Mario Draghi said yesterday’s cut in interest rates to a record low may have only a limited impact on the euro-area economy.

Adding to the negative sentiment, economic data showed the US service sector slowed to a 30-month low in June confirming investor fears that the eurozone debt crisis was sapping global growth.

Meanwhile, Spain's difficulties increased, with its 10-year borrowing costs increasing despite the eurozone's latest plan to help the region's troubled economies.

Today’s Labour Department report may show the rate of hiring in the US accelerated in June while remaining at less than half the average for the first quarter of the year, economists said.

Financial stocks led the decline yesterday, with Dow component JP Morgan Chase falling 4.2% and Bank of America Corp off 3%.

Costco Wholesale Corp, Macy's Inc, Kohl's Corp and Target Corp were among the retail chains that reported disappointing June sales at stores open at least a year. Costco shares were fell 0.4% and Target declined 1.1%.

On the positive side, Apple rose 1.8% and Google was up 1.4%, limiting losses in Nasdaq.

Chinese stocks traded in the US gained as Baidu, the nation’s largest online search engine, rose to a two-week high. Netflix soared 13%, while Yelp Inc. surged 5.8% amid speculation that a smaller model of Apple’s iPad could help the business-review service add users.

In Asia, equities declined on Friday in morning trade after interest-rate cuts in Europe and China failed to assure investors the measures will be enough to boost economic growth.

The MSCI Asia-Pacific slid 0.3% to 119 as of 10:49 a.m. in Tokyo. South Korea’s Kospi Index dropped 0.3% and Australia’s S&P/ASX 200 Index slid 0.4%. Japan’s Nikkei 225 Stock Average declined 0.2% and the broader Topix Index added less than 0.1%. Hong Kong’s Hang Seng Index slid 0.1% and China’s Shanghai Composite Index gained 0.1%.

3 comments so far. Why not have your say?

alan franklin

Jul 06, 2012 at 06:40

"Snaps" rally? You have been watching too much CNBC. I've just checked the definition of "snap" in The Concise Oxford Dictionary. It doesn't fit.

Please choose a more appropriate word for headlines - this is just another Americanism.

report this

douglas gordon

Jul 06, 2012 at 07:17

I agree with the comment "Please choose a more appropriate word for headlines" by Alan Franklin. I could not understand the headline and had to read the article to get the meaning - headlines should be clear, not confusing.

report this

Gavin Lumsden

Jul 06, 2012 at 07:36

Done, headline amended.

report this

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