Global Markets Wrap

Tue, 05 Aug 2008 08:58


US Stocks closed lower Monday, making it three consecutive days of declines. Falling oil prices could not overcome investor concerns about the health of the US economy. Investors also showed some restraint ahead of the Federal Reserve's interest rate policy decision and statement today. Energy stocks held Wall Street from the strong gains usually associated with a downturn in oil, made worse by broad losses across the commodities spectrum and a general weakness in financials, though the sector did pare its earlier losses.

The Dow made several brief ventures into positive territory during the day but couldn't hold it there. The blue chip index finished down 0.4% and the broader S&P 500 lost 0.9%. The tech-heavy Nasdaq composite shed 1.1%.

It was also a third day of losses for European stocks as results from HSBC hit financial stocks and a broad-based decline in metal prices dented the mining sector. HSBC said that first half profits fell 28%, which was in line with forecasts. A $14 billion hit on bad debts on U.S home loans and asset write downs offset strong growth in Asia. Also a report on a jump in us consumer prices dampened sentiment.

Looking at some of the National indexes France's CAC lost 0.8 percent, Germany's DAX slipped 0.7 percent, and the U.K.'s FTSE 100 dropped 0.6 percent.