Markets Trade Near Day's Low

The Global Markets gives out negative cues this morning. U.S. stocks declined, sending the Standard & Poor’s 500 Index to a seven-week low, as a record plunge in home sales cast further doubt on the viability of the economic recovery. European stocks dropped to a one- month low, led by a sell off in construction and basic-resources companies, after U.S. housing data added to evidence that growth in the world’s largest economy is slowing. This morning Asian stocks declined for a second day as a record plunge in U.S. home sales and slowing export growth in Japan added to evidence a global economic recovery is weakening. In commodities, Crude oil snapped a five-day losing streak as the dollar fell against the euro, bolstering speculative demand for commodities as a hedge against inflation. Gold traded near the highest level in six weeks on speculation that further signs of an economic slowdown may prompt investors to boost their holdings of the metal to try to preserve their wealth. Copper gained after a slump to a one-month low encouraged purchases by investors expecting demand to improve as the seasonally weak consumption period ends. After a quiet start, the Indian indices moved upwards to an intra-day high after which the markets quickly lost steam and slipped to register an intra-day low. The main draggers for the day are the Realty, Metal and Auto indices as all the three trade in red slipping more than one percentage points. Market breadth is negative with 983 advances against 1,618 declines. The Sensex trades in red at 18,234.92 declining 76.67 points or 0.42 percentage points. Nifty trades at 5482.85 declining by 22.25 points or 0.42 percentage points.