Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a661504

Overnight Markets: Wall Street falls on Italian election

Shares declined after partial election results in Italy showed strong position of groups opposed to the country's economic reforms.

 
Overnight Markets: Wall Street falls on Italian election

Wall Street declined on Monday, with the benchmark indexes registering their biggest drop since November, after partial election results in Italy showed strong position of groups opposed to the country's economic reforms and triggered fresh concerns about Europe's debt problems.

The Dow Jones industrial average dropped 216 points, or 1.55%, to 13,784 at the close. The Standard & Poor's 500 Index lost 28 points, or 1.83%, to 1,488. The Nasdaq Composite Index fell 46 points, or 1.44%, to 3,116.

Three TV projections indicated that Italy's centre-left coalition holds a slim lead over former Prime Minister Silvio Berlusconi's centre-right bloc in the election for the lower house of parliament. The resulting gridlock could lead to new elections and cast into doubt Italy's ability to pay down its debt.

Selling increased late in the trading session after the S&P 500 plunged below the 1,500 level, a significant support point.

Banks and other financial stocks were the worst performers amid concerns about the sector's exposure to Italy's massive debt.

In earnings news, Lowe's Companies Inc lost 4.8% after the home improvement retailer posted fourth-quarter earnings.

Chesapeake Energy Corp. slumped 6.8% after agreeing to sell a stake in an Oklahoma oilfield to China Petrochemical Corp. for less than one-third of its estimated value.

ITT Educational Services Inc. tumbled 17% after disclosing that US regulators subpoenaed documents related to private loan programs for its students.

 On the positive side, Barnes & Noble Inc shares shot up 11.5% after the bookseller's chairman offered to buy its declining retail business.

Amgen Inc shares climbed 3.1%, after rival Affymax issued a voluntary recall of its only drug, an anemia treatment that competes with Amgen's top-selling red blood cell booster, Epogen. Affymax lost 85.4%.

In Asia, most stocks declined on Tuesday on concern Italy’s election results may reignite Europe’s debt crisis.

The MSCI Asia Pacific Index was little changed at 134 as of 11:44 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average dropped 1.4%. Australia’s S&P/ASX 200 Index slid 0.6% and New Zealand’s NZX 50 added 0.2%. South Korea’s Kospi Index fell 0.3%.

Hong Kong’s Hang Seng Index dropped 0.5% and the Shanghai Composite Index rose 0.2%.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire guide to investment trusts

In association with Aberdeen Asset Management

Fund managers from Standard Life Investments quizzed on investment trusts


What can SLI bring to the table for those who want to put their money into investment trusts?

More about this:

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

Investment Trusts: buy, sell, hold

by Gavin Lumsden on Oct 30, 2014 at 10:51

Sorry, this link is not
quite ready yet