terça-feira, 29 de junho de 2010

(BN) Stocks Slide, Treasuries Jump on Concern Over China,


Stocks Slide, Treasuries Jump on Concern Over China, Confidence
2010-06-29 14:24:12.198 GMT


By Rita Nazareth and Stephen Kirkland
    June 29 (Bloomberg) -- Stocks plunged from Shanghai to New
York, with the Standard & Poor's 500 Index sinking below its
lowest closing level of the year, and Treasury two-year note
yields dropped to a record low on concern over weakening growth
in China and lower-than-estimated U.S. consumer confidence.
    The S&P 500 slid 2.5 percent to 1,047.61 at 10:18 a.m. in
New York, its lowest on a closing basis since November 2009. The
MSCI World Index of 24 developed nations lost 2.9 percent, the
biggest drop since May 20. The benchmark 2012 Treasury note
yield slid as low as 0.5857 percent and the 10-year yield sank
below 3 percent for the first time in 14 months. China's
Shanghai Composite Index slumped 4.3 percent, the most in six
weeks, and the yen rose to an eight-year high against the euro.
    "It's ugly out there," said James Paulsen, who helps
oversee about $375 billion as chief investment strategist at
Wells Capital Management in Minneapolis. "Consumers are pulling
back. There's concern about a China slowdown. We're close to
important technical levels on the S&P 500, with 1,040 being
closely watched. It's end of quarter, investors have to close
their books and they are selling the stocks that did poorly."
    The tumble in global stocks started after the Conference
Board's leading economic index for China, which overtook Germany
as the world's biggest exporter last year, rose 0.3 percent in
April, less than the 1.7 percent reported June 15. Losses
accelerated after the same research group's gauge of U.S.
consumer confidence slumped to 52.9 in June, less than all 71
projections in a Bloomberg News survey of economists.

                   Home Prices Overshadowed

    The S&P 500, the benchmark gauge for U.S. stocks, retreated
for the sixth time in seven days even after a report showed home
prices in 20 U.S. cities rose in April from a year earlier as
sales got a boost from a tax credit. The S&P/Case-Shiller index
of property values climbed 3.8 percent from April 2009, the
biggest year-over-year gain since September 2006. The gain
topped the median forecast of economists surveyed by Bloomberg
News.
    Today's data damaged investor confidence amid concern a
Labor Department report July 2 will show the U.S. lost jobs for
the first time this year while European bank balance sheets come
under renewed scrutiny.
    All 10 industry groups in the MSCI World gauge declined,
led by basic-materials producers and financial companies. The
index has lost 8.4 percent this year. The MSCI Asia Pacific
Index dropped 1.6 percent today as Japan's unemployment rate
unexpectedly increased.

                     Treasuries Rally

    The yield on the 10-year Treasury security slid as much as
7 basis points to 2.95 percent, the lowest since April 2009.
Treasuries have climbed 5.7 percent this year, according to
indexes compiled by Bloomberg and the European Federation of
Financial Analysts Societies. The 10-year Australian bond yield
dropped nine basis points to 5.14 percent, and the yield on the
German bund retreated three basis points to 2.55 percent.
    The yen appreciated 1.5 percent to 108.05 per euro, the
strongest level since November 2001, while the 16-nation
European currency weakened 0.8 percent against the dollar to
$1.2176, falling for the second consecutive day. The Swiss franc
strengthened to less than 1.33 per euro for the first time amid
speculation the nation's central bank won't intervene to curb
its appreciation.
    Metals declined for the first time in four sessions on the
London Metal Exchange, led by a 4.8 percent drop in zinc and 5.3
percent plunge in lead. Copper fell 3.8 percent, extending its
decline this year to 10 percent. Gold slipped 0.2 percent to
$1,236.78 an ounce, trimming this year's gain to less than 13
percent. Oil for August delivery slumped 3.2 percent to $75.78 a
barrel on the New York Mercantile Exchange.

                       Emerging Markets

    The MSCI Emerging Markets Index fell 2.6 percent, the most
since June 7, extending this year's drop to 6.3 percent.
Benchmark indexes in Russia, the world's largest energy
supplier, Poland, Ukraine, Romania, Saudi Arabia, Dubai,
Indonesia and Egypt lost more than 2 percent.
    The New York-based Conference Board cited a calculation
error for the revision in its Chinese index. The research
group's outlook for the nation's economy hasn't been affected by
the correction, said William Adams, the group's resident
economist in Beijing.
    "Growth was not likely to accelerate in China, and in
fact, a moderation is possible," Adams said in a telephone
interview. "This correction also supports the same view."
    The Stoxx Europe 600 Index tumbled 2 percent as Rio Tinto
Group, the world's third-biggest mining company, plunged 4.8
percent on concern demand from China may weaken. BP Plc slid 2.7
percent, bringing its decline since an April explosion on the
Deepwater Horizon rig to more than 50 percent.
    The cost of insuring BP's debt approached a record, with
credit-default swaps increasing 3.5 basis points to 587.4,
according to CMA DataVision, a London-based credit information
provider. The contracts closed at an all-time high of 588.6 on
June 25.

For Related News and Information:
Developed Markets View: DMMV <GO>
Emerging Markets View: EMMV <GO>
Stock Market Map: IMAP G <GO>
World Equity Markets: WEI <GO>
World Bond Markets: WB <GO>
Pipeline of Bonds: PREL <GO>
World Currency Ranker: WCRS <GO>
Commodity Ranked Returns: CRR <GO>
Credit-Default Swap Indexes: MKIT <GO>
World Trends and Reversals: WTR <GO>
Graphing: GRAPH <GO>

----With assistance from Claudia Carpenter, Lukanyo Mnyanda
Andrew Rummer, Michael Shanahan and Daniel Tilles in London.
Editor: Michael P. Regan

To contact the reporters on this story:
Stephen Kirkland in London at +44-20-7073-3172 or
skirkland@bloomberg.net;

To contact the editor responsible for this story:
Paul Sillitoe in London at +4420-7073-3857

Nenhum comentário:

Postar um comentário