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E.L. & C. Baillieu Stockbroking Ltd is a Participating Organisation of the Australian Stock Exchange Limited. The firm commenced business in 1889.  Since its inception, E.L. & C. Baillieu Stockbroking Ltd has encouraged and assisted private investors.

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E.L. & C. Baillieu Morning Wrap; European stocks tumble on political concerns

European stocks tumbled, as a political deadlock in Greece fueled fears of further economic turmoil in the euro zone, pushing the Greek stock index to its lowest finish in nearly two decades.

Author: E.L. & C. Baillieu Stockbroking - by Andrew Thain


HEADLINES

- The Dow industrials fell a fifth straight day and stocks in Europe tumbled as jitters over political uncertainty in Greece outweighed upbeat U.S. and German economic data.

- European stocks tumbled, as a political deadlock in Greece fueled fears of further economic turmoil in the euro zone, pushing the Greek stock index to its lowest finish in nearly two decades.

- Oil futures slid for a fifth straight session amid market fears that political turmoil in Greece may leave the country unable to meet the terms of its bailout—and lead to more instability for the euro zone.

- Worries about Europe's sovereign-debt crisis sparked a wave of selling in the gold market, pushing prices briefly below the $1,600 mark and to their lowest settlement price in four months.


US MARKETS

The Dow industrials fell a fifth straight day and stocks in Europe tumbled as jitters over political uncertainty in Greece outweighed upbeat U.S. and German economic data.

The Dow Jones Industrial Average slid 76.44 points, or 0.6%, to 12932.09, extending its retreat from last week's four-year closing high. The Standard & Poor's 500-stock index shed 5.86 points, or 0.4%, to 1363.72, its lowest close in nearly a month.

Consumer discretionary and financial shares led declines across eight of the index's 10 sectors. The utilities and health-care sectors, typically seen as defensive, rose.

In corporate news, Fossil plunged $47.25, or 38%, to $78.52, after the watch company cut its 2012 financial targets and reported lower-than-expected first-quarter sales amid soft European demand.

Dun & Bradstreet skidded 10.66, or 14%, to 65.04, as the commercial-information company said core revenue will be mostly flat and said it would cease operating a China based business that is under investigation.

McDonald's dropped 1.96, or 2.1%, to 93.55, after saying same-store growth at restaurants open at least 13 months slowed in April at a faster pace than expected.


EUROPEAN MARKETS

European stocks tumbled, as a political deadlock in Greece fueled fears of further economic turmoil in the euro zone, pushing the Greek stock index to its lowest finish in nearly two decades.

The Stoxx Europe 600 index sank 1.7% to 250.58. Greece's ASE Composite Index closed at its lowest level since November 1992, dropping 3.6%, to 620.54, with National Bank of Greece down 8.4%. The index closed 6.7% lower on Monday.

Among major indexes, the German DAX index lost 1.9%, to 6444.74, France's CAC-40 index lost 2.8%, to 3124.80, and the U.K.'s FTSE 100 index fell 1.8% to 5554.55.

U.K. markets had been closed Monday for a holiday. In the U.S., stocks also traded lower, with the Dow Jones Industrial Average down 1.3%, to 12835.21, in midday trading on Tuesday.


ASIAN MARKETS

Japan led most Asian markets higher Tuesday, rebounding after heavy losses on Monday, while Hong Kong and China were nudged lower by falling property and bank stocks.

Japan's Nikkei climbed 0.7% to 9181.65, with upbeat earnings lifting shares including Mitsubishi and Fuji Heavy Industries . Marubeni climbed 3.8% after a Nikkei report said the trading company is in the final stages of acquiring U.S. grain company Gavilon.

South Korea's Kospi climbed 0.5% to 1967.01, Singapore's Straits Times Index advanced 0.2% to 2931.98.


AUSTRALIAN MARKETS

Australian shares were led higher by Telstra, as the market recovered from yesterday’s steep falls, but trading was mostly subdued hours ahead of the federal budget.

At the close, the benchmark S&P/ASX200 index was up 13.0 points, or 0.3 per cent, at 4314.3, while the broader All Ordinaries index had risen 14.3 points, or 0.3 per cent, to 4375.9.

Among the sectors, materials slipped 0.1 per cent, gold fell 1.1 per cent, but financials and energy both rose 0.2 per cent, while consumer discretionary gained 1.2 per cent and telcos rose 1.6 per cent.


OIL

Oil futures slid for a fifth straight session amid market fears that political turmoil in Greece may leave the country unable to meet the terms of its bailout—and lead to more instability for the euro zone.

Light, sweet crude for June delivery fell 93 cents, or 0.9%, to settle at $97.01 on the New York Mercantile Exchange, after rebounding from a session low of $95.52. Prices are down 8.6% since May 1 and at their lowest levels since Dec. 19.


METALS

Worries about Europe's sovereign-debt crisis sparked a wave of selling in the gold market, pushing prices briefly below the $1,600 mark and to their lowest settlement price in four months.

Gold for May delivery fell $34.60, or 2.1%, to settle at $1,604 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest ending price since Jan. 3.

Andrew Thain can be contacted by email; CLICK HERE.

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