Markets Continue to Trade in Red

The Global Markets trade in a mixed territory this morning. U.S. stocks fell, sending benchmark indexes lower for the first time in three days, as jobless claims climbed more than economists estimated and concern about a slowdown in Chinese demand dragged down commodity producers. European stocks declined from a 28- month high as a larger-than-forecast increase in U.S. initial jobless-benefit claims overshadowed gains by banks after Spain and Italy sold bonds. China’s stocks fell for the first time in four days, driving the benchmark index toward a weekly drop, on concern the government will intensify measures to curb inflation including using price controls and property taxes. In commodities, Oil declined for a second day in New York on speculation that demand may be slow to rebound in the U.S., the world’s biggest crude-consuming nation. Gold for immediate delivery advanced, set to rebound from a loss last week, on speculation that demand from China, the world’s second-largest consumer, will increase, while Europe’s debt woes spur haven investment. Copper in London dropped for a second day as high prices discouraged buyers in China, the world’s largest consumer. Zinc and tin also fell. The Sensex has opened in the red with the Nifty down 37 points at 5714 and the Sensex trades at 19,059 down by 124 points. In the broader markets, the midcap index has started in the negative while the small cap is flat at 9,062. On the BSE sectoral chart, IT, Consumer Durables and FMCG are the only sectors that opened in the positive. Metal, Auto and Realty down 1% each are the top losers in the opening trades.