Business | Markets
Global stocks extend losses
Stocks extended losses yesterday after a report showed that the manufacturing sector contracted further in September, heightening concerns about the economy's health and the outlook for profits.
- Reuters
- Published: 00:07 October 2, 2008
New York/London: Stocks extended losses yesterday after a report showed that the manufacturing sector contracted further in September, heightening concerns about the economy's health and the outlook for profits.
The Institute for Supply Management said its index of national factory activity fell to 43.5 in September from 49.9 in August. A reading above 50 means expansion, below 50 signifies contraction.
The Dow Jones industrial average was down 184.22 points, or 1.70 per cent, at 10,666.44. The Standard & Poor's 500 Index was down 23.05 points, or 1.98 per cent, at 1,143.31. The Nasdaq Composite Index was down 33.01 points, or 1.58 per cent, at 2,058.87.
Europe's markets stabilised on Wednesday and most Asian markets bounced back on hopes that a $700 billion bailout for the US financial system will soon win legislative approval.
Britain's benchmark stock index, the FTSE 100, rose by 1.71 per cent to 4,986.08. On Tuesday, it had gone as far as three per cent down before closing 1.7 per cent up.
Germany's benchmark DAX index was down 0.1 per cent at 5,824.56, while the Paris CAC-40 rose 0.62 per cent to 4,057.06.
The more confident mood spread to Asia, where most stock markets regained much of the losses they had made on Tuesday. Japan's Nikkei 225 index, the benchmark for Asia's biggest bourse, gained 108.40 points, or 0.96 per cent, to close at 11,368.26.
Survey result
The dollar fell to a session low against the yen yesterday after a survey showed US manufacturing was weaker in September than market expectations.
Against the yen, the dollar fell to 105.45 yen from 105.85 before the release of the report.
The euro was last at $1.4006, down from the $1.4025 it traded at just before the report. The euro had initially recovered against the dollar in the moments after the report.
Inventories: Oil falls below $100
Oil fell below $100 a barrel yesterday ahead of weekly US oil data, which was expected to show an increase in crude oil inventories.
US crude fell $1.52 to $99.12 a barrel by 1252 GMT, reversing a rise by more than $2 to as high as $102.84 earlier in the day. London Brent crude was $1.78 down at $96.39. Gold rose in bargain hunting on Wednesday after a sharp dip in prices as financial market turmoil boosted its appeal and physical demand was strong. Traders awaited the outcome of the US Senate vote which is expected to give fresh direction to trade. Spot gold was quoted at $880.90/882.90 at 1411 GMT, up from $869.95 late in New York on Tuesday.
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