Markets Trade in Red

The Global Markets opened mixed this morning. U.S. stocks rose for a third week, sending the Standard & Poor’s 500 Index to a two-year high, as stronger-than-estimated data on retail sales, manufacturing and housing boosted confidence in the economic recovery. European stocks halted a two-week rally as better-than-estimated U.S. economic data failed to allay concern that the sovereign-debt crisis will spread from Greece and Ireland to other euro-area nations. This morning most Asian stocks dropped, with the regional benchmark index declining after gaining last week, as concern mounted Europe’s debt crisis will spread and South Korea said it will proceed with an artillery drill that has prompted threats of retaliation from North Korea. In commodities, Oil rose in New York for a second day as an index of U.S. leading economic indicators increased in November by the most in eight months, signaling the economic recovery will strengthen next year and boost fuel demand. Gold climbed as two weeks of price declines attracted buying from jewelers and other physical users. Silver, palladium and platinum also increased. Copper advanced for a second day from London to Shanghai, leading an advance in industrial metals. Selling pressure continued to weigh as the Sensex shed 47 points at 19,817, while the Nifty was at 5,927 down 21 points. The markets were trading negatively, with FII flows reducing after concerns about the price contractions which took place in the markets in the light of poor corporate governance issues in certain mid-sized and small-sized companies.