United States markets were lower in early trading on Tuesday as falling oil prices continued to weigh on global stock markets.þþKEEPING SCORE The Dow Jones industrial average fell 1.45 percent, and the Standard & Poor’s 500-stock index was down 1.35 percent. The Nasdaq composite index dropped 1.16 percent.þþGLOOMY DAY In addition to the woes of the energy sector, bank stocks were also getting beaten down as investors worried they could suffer if loans to oil and gas companies went bad. Several stocks were also moving on earnings news, most of them lower. Royal Caribbean shares sank 9 percent after the company’s revenue missed estimates.þþEUROPEAN MARKETS In Germany, the DAX fell 1 percent, and in France, the CAC 40 lost 1.7 percent. The FTSE 100 was down 1.7 percent in Britain.þþGLOBAL FEARS It is a busy week on the economic data front, particularly in the United States, where the week ends with monthly payroll figures on Friday. So far, the numbers have not impressed. On Monday, the Institute for Supply Management said its gauge of factory activity pointed to a contraction, while China’s official survey found that manufacturing fell to its lowest level in more than three years.þþOIL SLIDE The two reports have weighed hard on oil prices. On Tuesday, the selling pressure remained. Benchmark United States oil was down 95 cents to $30.67 per barrel on the New York Mercantile Exchange, a day after it plunged $2, or 5.9 percent. Brent crude was down $1.22 to $33.02 in London.þþANALYST’S TAKE “It looks like the market ghosts that haunted January are still spooking investors this month, the gains seen last Friday now fully wiped out with Tuesday’s commodity-driven plunge,” said Connor Campbell, a financial analyst at Spreadex.þþASIA’S DAY The Nikkei 225 declined 0.6 percent in Japan, while in Hong Kong, the Hang Seng declined 0.8 percent. The Shanghai composite index added 2.3 percent in China. The Kospi fell 1 percent in South Korea. In Australia, the S.&P./ASX 200 lost 1 percent. Stocks in Taiwan, Singapore, Indonesia and the Philippines also were lower.þþCURRENCIES AND BONDS The dollar fell to 120.63 yen from 120.95 yen on Monday. The euro strengthened to $1.0918 from $1.0900. Bond prices rose. The yield on the 10-year Treasury note fell to 1.89 percent.
Source: NY Times
