Markets Trade on a Negative Note in Early Trades

The Global Markets gives out negative clues this morning. U.S. stocks advanced, erasing most of yesterdays drop, as Walgreen Co. led a rally in consumer- staples and health companies and investors speculated the Federal Reserve will buy more debt to safeguard the economy. European stocks fell as Irish and Portuguese bonds plunged, fueling concern that the sovereign- debt crisis is worsening, while a report showed U.S. consumer confidence declined to the lowest level in seven months. This morning Asian stocks rose, driving the MSCI Asia Pacific Index to a five-month high, as Elpida Memory Inc. said it plans to start mass production of a new memory chip and Shinsei Bank Ltd. raised its profit forecast. Oil rose in New York after an industry-funded report showed U.S. crude stockpiles declined for the first time in three weeks, signaling improved prospects for a recovery in fuel demand. Gold advanced to a record for the fourth straight day as the dollar dropped to the lowest level in more than seven months on speculation the Federal Reserve will add to monetary easing. Silver increased to a 30-year high. Copper advanced for a second day, heading for its best quarter in a year, as expectations for a weaker dollar buoyed the demand outlook for commodities. The Indian markets trade on a subdued note this morning. Metal, PSU and Oil & Gas are the main draggers this morning. Some support is provided by the Realty, IT and Healthcare indices. Market breadth is positive with 1,501 advances against 1,145 declines. The Sensex trades in red at 20,061.82 declining 43.04 points or 0.21 percentage points. Nifty trades at 6019 declining by 10.50 points or 0.24 percentage points.