03:57
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ASIAN STOCKS MARKET
Asian stocks dropped, with the regional benchmark index headed for the biggest two-day loss in seven weeks, after a Chinese central bank adviser forecast economic growth will slow further and on renewed concern that Greece may not meet its bailout targets. The MSCI Asia Pacific Index fell 9.5 percent from this year’s high on Feb. 29 through last week amid concern China’s economy is slowing and Europe’s sovereign-debt crisis will worsen.
U.S.STOCK MARKET
U.S. stock futures declined, indicating the Standard & Poor’s 500 Index may fall for a second day, as concern grew that Greece won’t fulfill its bailout commitments and a Chinese policy maker warned of cooling growth. S&P 500 futures expiring in September lost 1 percent to 1,344.1 as of 10:36 a.m. in London. Dow Jones Industrial Average futures slipped 137 points, or 1.1 percent, to 12,636 today.
EUROPEAN MARKET
European stocks had the biggest two- day drop since April as concern grew that Greece will default and more Spanish regions will follow Valencia in seeking a bailout. U.S. index futures and Asian shares dropped. The Stoxx Europe 600 Index (SXXP) slid 1.7 percent to 253.81 at 9:45 a.m. in London, extending July 20’s 1.4 percent drop for the biggest two-day decline since April 4.
U.S.TREASURIES
Treasuries rose, with five-, 10- and 30-year yields falling to records, before reports this week forecast to show U.S. growth cooled and as concern Europe’s debt crisis is worsening spurred demand for the safest assets. The benchmark 10-year yield fell four basis points, or 0.04 percentage point, to 1.42 percent at 8:25 a.m. in London. The 1.75 percent note due in May 2022 rose 3/8, or $3.75 per $1,000 face amount, to 103 1/32.
CURRENCY UPDATE
DOLLAR
The Australian and New Zealand dollars slid for a second day as Asian stocks extended a global equity rout amid concern Europe’s debt crisis is worsening, reducing demand for higher-yielding assets. The Australian dollar fell 0.7 percent to $1.0308 as of 4:20 p.m. in Sydney. The Aussie lost 1.2 percent to 80.49 yen. New Zealand’s dollar declined 0.9 percent to 79.26 U.S. cents. It dropped 1.4 percent to 61.90 yen.
EURO
The euro weakened to a more than two-year low against the dollar, falling through $1.21, as concern mounted that European leaders are failing to gain control of the region’s debt crisis. The euro tumbled to as low as $1.2082, below the average $1.2087 for the shared currency since its inception in 1999, and was 0.5 percent lower at $1.2097 at 9:19 a.m. in London. It slid as much as 1.3 percent to 94.24 versus the yen, the least since November 2000.
COMMODITY UPDATE
CRUDE OIL
Oil dropped to the lowest level in four days in New York, dropping below $90 a barrel amid renewed concern that Europe is failing to resolve its debt crisis. Crude for September delivery fell as much as $3.43 to $88.40 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.95 at 10:56 a.m. London time. The contract decreased 1.2 percent to $91.83 on July 20. Prices are 11 percent lower this year.
GOLD
The rupee, which hit its lowest level in a week, plays an important role in determining the landed cost of the dollar-quoted yellow metal.In the overseas market, Russia's central bank raised its gold reserves by 6.2 tons to 836.3 tons in June. Central-bank buying has underpinned gold's rallies in the last several years. Buyers are slowly returning to the market mostly in the coin and bar space. The demand in gold jewellery is expected to pick up from the end of July on account of the ensuing festive season.
SILVER
Silver futures, which traded steady on Monday, could fall due to a weakness in base metals. Silver for September delivery on the MCX was trading 0.12% lower at Rs 52,778 per kg. Silver prices, which averaged $31 in the first half of the year, are expected to average $31 an ounce in the third quarter, rising to $33.01 in the last three months of the year.
COPPER
Copper hit a three week low on Monday as the euro fell and as investors grew concerned over the outlook for metals demand due to renewed fears that Spain will have to seek a full sovereign bailout. Three-month copper on the London Metal Exchange fell 2.12 percent to$7,387.75 per tonne by 0955 GMT, having earlier hit a low of $7,367.75, its weakest point since late June.
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