Markets Trade in Red This Morning

The Global Markets gives out mixed clues this morning. U.S. stocks erased gains, wiping out most of an 88-point rise in the Dow Jones Industrial Average, as increased criticism of the Federal Reserve’s plan to stimulate growth and concern that a swelling federal deficit will lead to higher borrowing costs drove Treasury yields higher. European stocks climbed for the first time in four days as increasing takeover activity and faster-than-projected growth in U.S. retail sales boosted optimism in the economic recovery. This morning Asian stocks fell, with the regional index dropping for a third day, on speculation governments will take further steps to cool inflation, and after raw material prices declined. In commodities, Oil declined for a third day after manufacturing in the New York region unexpectedly contracted in November, signaling the pace of fuel demand recovery in the world’s biggest crude-consuming nation may falter. Gold may decline for a third day as signs that the U.S. economy is strengthening and the possibility Ireland may have to accept a European Union bailout boosted the dollar. Silver climbed after a two-day slump spurred buying. Copper in London resumed a decline as the dollar’s rebound hurt demand for commodities priced in the U.S. currency amid the potential for slowing demand in China, the world’s largest user. The metal pared early gains in Shanghai. The Indian markets taking cues from its global peers trade on a negative note this morning. The main draggers are the IT and Capital Goods indices that trades in red declining more than half percentage points. Market breadth is positive with 1,506 advances against 1,150 declines. The Sensex trades in red at 20,259.42 declining 50.27 points or 0.25 percentage points. Nifty trades at 6103.35 declining by 18.25 points or 0.30 percentage points.