Markets Trade in Red

The Global Markets emanate negative vibes this morning. US Stocks sank, dragging the Standard & Poor’s 500 Index to its worst loss since August, and Treasuries rallied as slower growth in jobs and manufacturing fuelled concern the economy is faltering. The Dollar Index erased losses, and commodities fell. European stocks declined the most in a week after U.S. employment and manufacturing data trailed economist’s forecasts and Chinas factory production expanded at the slowest pace in nine months. This morning Asian stocks dropped for the first time in three days after U.S. manufacturing expanded at the weakest pace in more than a year and employers hired fewer workers than forecast, fueling concern the global economic recovery will slow. In commodities, Oil declined for a second day in New York after reports showed U.S. crude supplies rose, companies added fewer jobs than forecast and global manufacturing slowed, stoking speculation fuel demand may falter. Gold may advance for a second day to near one-month high, as data pointing to economic slowdown and prolonged debt turmoil in Greece spurred demand for the metal as a store of value. Copper in London dropped for a second day to a one-week low as manufacturing growth from China to the U.S. slowed, raising concerns the global economic recovery may falter. The Indian markets continue to trade in the negative, although the benchmark index pared some of the losses with the Nifty down 39 points at 5,553 and the Sensex down 103 points at 18,505. The broader markets too have improved with the small cap index down at 0.5% outperforming both the midcap index and the Sensex which lost 0.6% and 0.7% respectively. Health Care and Consumer Durables spaces saw some renewed buying interest in the past hour while rate sensitives like Bankex, Realty and Auto indices extended their losses.