Markets Slid on Negative Global Cues

The Global Markets gives out negative cues this morning. U.S. stocks dropped the most in three weeks as equities retreated from Tokyo to Moscow and London amid speculation the Federal Reserves stimulus plan indicates the economic recovery is in jeopardy. European stocks slid by the most in more than a month after the Federal Reserve said the pace of economic recovery is likely to be “more modest” than forecast. This morning Asian stocks fell, extending the worst streak of losses for the MSCI Asia Pacific Index since May, as investors speculated the global economy is slowing. In commodities, Oil declined for a third day in New York as U.S. fuel inventories climbed more than forecast, adding to signs that economic growth is slowing in the world’s biggest crude consumer. Gold advanced on signs that the global economic recovery is sputtering helping to revive demand for the metal as a store of value. Copper declined for a third day from London to Shanghai on concern that metals demand may dwindle as economic growth slows in the U.S. and China, the worlds two biggest users. The Indian markets have started the day on an extremely weak footing, succumbing to the weak cues from the equity markets worldwide. The indices had slid by nearly a per cent on Wednesday and have only extended the losses in early trade, with no respite in sight. The main draggers this morning are the IT and Teck indices. Market breadth is positive with 1,551 advances against 863 declines. The Sensex trades in red at 17,998.74 declining 71.45 points or 0.40 percentage points. Nifty trades at 5398.90 declining by 21.70 points or 0.40 percentage points.