US stocks slumped in early trade on Wednesday tracking cues from selloff in global markets as Fed’s cautious outlook on US economy coupled with reports of slower growth in China renewed concerns about the global economic recovery.
Enlarge This Image
Shannon Stapleton / REUTERS
Traders work on the floor of the New York Stock Exchange in New York, June 9, 2010.
Related Articles
Scenarios: BP spill to prompt many new regulations (May 05)
Related Topics
China
Gold
Dow Jones
FTSE
Exxon Mobil
Crude Oil
Consumer
The S&P 500 Index has declined 22.77 points, or 2.03 percent, to trade at 1,098.29 at 10:05 am EDT. The Dow Jones Industrial Average has dropped 192.76 points, or 1.81 percent, to trade at 10,451.49. The Nasdaq Composite has dipped 2.33 percent.
Among the DOW components, Boeing, Cisco and Du Pont plunged more than 3 percent, while Disney fell 2.95 percent and Exxon Mobil declined 2.58 percent.
On Tuesday, Fed said the economic recovery has “slowed in recent months” and is likely to be “more modest in the near term than had been anticipated.”
EMAIL PRINT
TEXT SIZE:
SHARE
RATE:
US trade deficit in June widened to $49.9 billion from $42 billion in May, the largest gap since October 2008, against analysts’ expectation of $42.5 billion. US trade deficit with China widened to $26.2 billion from $18.4 billion a year ago.
The main reason for widened deficit is strong dollar verses major currencies in the past period, which made imported goods cheaper for the US consumer and US goods expensive for the non-US consumer.
Bank of England lowered its forecast for UK economic growth by stating that that the economic recovery will continue but at a slower pace than it expected in May.
Chinese annualized industrial production came at 13.4 percent in July compared to a 13.7 percent a year earlier indicating that Chinese economy is slowing. Japanese machinery orders inclined less than expected during June by 1.6 percent compared to decline of 9.1 percent in May.
The euro declined 1.58 percent to 1.2968 against the dollar and the yen declined 0.66 percent against the greenback.
Crude oil futures slumped 1.58 percent ahead of inventories report on strong greenback and copper futures fell 1.16 percent. In precious metal sector, gold futures advanced 0.71percent and silver futures fell 0.37 percent.
European stocks extended their losses on Wednesday, after the Bank of England report. Markets are currently trading lower with FTSE 100 trading down by 102.74 points, DAX30 is trading down by 136.78 points and CAC 40 trading down by 83.64 points.
