Markets Trade Sideways

The Global Markets trade in a mixed territory this morning. U.S. stocks slumped, giving the Standard & Poor’s 500 Index its biggest decline since March, as commodities tumbled amid a strengthening dollar and concern that accelerating global inflation may curb economic growth. European stocks climbed for second day as better-than-estimated results from A.P. Moeller-Maersk A/S to Hermes International SCA boosted confidence in the economic recovery. This morning Asian stocks fell, dragging a regional benchmark index lower for the first day this week, as commodity prices tumbled amid concern that China will further tighten monetary policy. In commodities, Oil advanced from a three-day low in New York on renewed speculation flooding on the Mississippi River will disrupt U.S. fuel supplies before the start of the driving season in the world’s biggest crude-consuming nation. Gold and silver advanced as Europe’s sovereign-debt crisis showed no signs of abating and global inflation accelerated, spurring demand for precious metals as a store of value. Copper dropped to a five-month low on concern that China may continue monetary tightening after inflation spread beyond food, damping the demand outlook in the world’s largest consumer of the metal. In the absence of any credible triggers to push the markets either ways, the Sensex continues to trade sideways. The Nifty is down 5 points at 5,559 and the Sensex lost 15 points at 18,570. Metal index down 1% continues to lead the losses while Health Care index has inched ahead by 0.3%. The market breadth was positive of the total 1406 stocks traded on the BSE 717 stocks advanced while 638  declined.