Markets Witness Lacklustre Trade

The Global Markets gives out negative clues this morning. U.S. stocks retreated, paring the biggest September gain for the Standard & Poor’s 500 Index in 71 years, as investors speculated that merger talks between M&T Bank Corp. and Banco Santander SA broke down and yield spreads showed perceptions of Ireland and Portugal’s creditworthiness are deteriorating. European stocks declined for the fourth time in five days amid speculation that this months rally may have overshot the outlook for economic growth. This morning Asian stocks fell, led by declines in Japan, as metal prices dropped and concern grew that European government finances are worsening. In commodities, Oil fell in New York, snapping four days of gains, as the dollar strengthened against the euro and analysts forecast an increase in U.S. gasoline supplies, signaling demand recovery in the largest crude user may falter. Gold, trading little changed near a record, may fall as an advance in the dollar reduces demand for the precious metal as an alternative asset. Silver retreated from a 30-year high. Copper, little changed, may decline for a second day as the dollar strengthened against the euro on mounting concern that Europe’s debt crisis is escalating. The Indian markets witness choppy trade this morning oscillating between the red and the green territories. The main gainers this morning are the Power, PSU and Capital Goods indices. Market breadth is positive with 1,582 advances against 924 declines. The Sensex trades in green at 20,144.28 gaining 26.90 points or 0.13 percentage points. Nifty trades at 6041.50 gaining by 5.85 points or 0.10 percentage points.