Markets Trade Soft in Early Trades

The Global Markets gives out negative clues this morning. U.S. stocks fell, dragging the Standard & Poors 500 Index to its biggest decline in two weeks, as a weakening earnings outlook for technology and financial companies overshadowed speculation the Federal Reserve will take steps to bolster the economy. European stocks retreated for a second day, their largest decline in almost a month, as central banks signaled they may need to administer more stimulus to prevent another recession. This morning Asian commodity stocks rose as metal prices increased, while banks fell after Deutsche Bank AG cut its earnings forecasts for Morgan Stanley and Goldman Sachs Group Inc. In commodities, Oil traded below $75 a barrel in New York after a government report showed that U.S. crude inventories unexpectedly increased, adding to signs of slowing economic growth. Gold futures climbed to a record $1,298 an ounce after the Federal Reserve said it was willing to ease monetary policy further to boost the U.S. economy, triggering a slump in the dollar. Copper, trading little changed, may drop as some investors sell their holdings after the metals rally to a five month high. Markets continue to trade in red, after a firm start in the morning. Realty and IT stocks are the major laggards. The main draggers are the Realty, Banking and FMCG indices. Market breadth is positive with 1,253 advances against 1,181 declines. The Sensex trades in red at 19,851.24 declining 90.48 points or 0.45 percentage points. Nifty trades at 5961.75 declining by 29.25 points or 0.49 percentage points.