| Global Market Wrap-Up - August 2, 2012 |
August 2, 2012 - 7:59pm — mhanna
U.S. stocks sold off Thursday on a lack of imminent intervention by the European Central Bank but rallied late in the day to finish far off their lows. The S&P 500 lost 0.7% while the NASDAQ dropped 0.4%.
Germany's DAX closed down 2.2% while the CAC-40 in France fell 2.7%. The British FTSE 100 dropped 0.9%. The yield on Spain's 10-year yield spiked 0.38 percentage points to 7.06% while its stock market fell 5.2%.
Japan's Nikkei 225 stock average finished up 0.4% while China's Shanghai Composite fell 0.6%.
Mark Hanna, known in the financial community as "TraderMark," provides his insightful daily market coverage in this column, exclusive to Euro Pacific Capital.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. Please feel free to repost with proper attribution and all links included.
Thursday, August 2, 2012
By:
Mark Hanna - Though Draghi told the press briefing, after the ECB held its main interest rate at 0.75%, that the bank can intervene in the bond market to drive down high interest rates, he delivered nothing concrete. Instead, he insisted the euro currency was irreversible and promised to address investor concerns that the ECB will be repaid ahead of other investors on any bonds it holds. Draghi also said the ECB would consider other emergency measures over the weeks to come.
On the economic front:
- Weekly applications increased by 8,000 to a seasonally adjusted 365,000. The four-week average, a less volatile measure, fell for the sixth straight week to 365,500, the lowest since March 31.
- The Commerce Department said businesses placed fewer orders with U.S. factories in June compared to May, another sign that manufacturing is weakening. Factory orders fell 0.5% in June and a measure of business investment plans declined by 1.7%. Demand dropped for heavy machinery, computers and cars.
Germany's DAX closed down 2.2% while the CAC-40 in France fell 2.7%. The British FTSE 100 dropped 0.9%. The yield on Spain's 10-year yield spiked 0.38 percentage points to 7.06% while its stock market fell 5.2%.
Japan's Nikkei 225 stock average finished up 0.4% while China's Shanghai Composite fell 0.6%.
Mark Hanna, known in the financial community as "TraderMark," provides his insightful daily market coverage in this column, exclusive to Euro Pacific Capital.
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