Markets Trade in Red After Two Day's Rally

The Global Markets gives out negative clues this morning. U.S. stocks retreated, with benchmark indexes closing at the lowest in a month, as jobless claims increased to the highest level since November and an index of Philadelphia-area manufacturing fell. European stocks sank to a four-week low as U.S. jobless-benefit claims climbed to the highest level in nine months and Philadelphia manufacturing fell, heightening concern that the worlds largest economy may be tipping back into recession. This morning Asian stocks fell, dragging down the MSCI Asia Pacific Index for the first time in six days, after U.S. jobless claims unexpectedly increased and an index of manufacturing in the Philadelphia area slumped. In commodities, Crude oil traded near a six-week low as rising U.S. jobless claims and a contraction in manufacturing added to concern growth in the worlds biggest oil consuming nation is slowing. Gold, little changed, may extend gains after jumping to a seven-week high yesterday as concern that the global economic recovery may falter spurs demand for bullion as a store of wealth. Copper prices dropped from a two- week high after the Federal Reserve Bank of Philadelphia reported an unexpected contraction in manufacturing in the region. The Indian markets after witnessing two days rally trade on a soft note this morning. Some selling pressure is witnessed in indices like IT, Teck and Consumer Durables. Some support is provided by indices like Realty, Capital Goods and Healthcare. Market breadth is positive with 1,371 advances against 1,178 declines. The Sensex trades in red at 18,390.82 declining 64.12 points or 0.35 percentage points. Nifty trades at 5521.85 declining by 19.85 points or 0.36 percentage points.