Markets Snaps Yesterdays Gains Trades in Red This Morning

The Global Markets opened on a mixed note. U.S. stocks rose, rebounding from a 1 percent decline in the Standard & Poor’s 500 Index, as lower- than-estimated claims for unemployment benefits and helped offset losses by consumer and technology shares. European stocks climbed for the fourth time in five days as U.S. employment and growth data exceeded forecasts and German lawmakers backed an enhanced euro region rescue fund. This morning Asian stocks dropped for the first time in four days, with the regional benchmark index set for its biggest quarterly decline since December 2008, as U.S. economic reports failed to soothe investors’ concern that growth in the world’s largest economy is faltering. In commodities, Oil rose in New York, paring the steepest quarterly drop since 2008, as investors speculated U.S. fuel demand will increase on signs the economy of the world’s biggest crude user is expanding faster than expected. Gold climbed, extending a 12th quarterly advance, as investors sought to protect their wealth against Europe’s sovereign-debt crisis and a potential slowdown in the worldwide economy. Copper slumped for a third day, set for the biggest quarterly decline since 2008, weighed by weaker- than-expected demand from China and after a report showed that U.S. consumer confidence fell. Zinc and nickel also dropped. On the Indian front the markets opened sluggish, this trading session following mixed cues from the global peers. The BSE Sensex trades at 16,590, down 107 points and the Nifty trades at 4,975, down 40 points. On Thursday, markets advanced two per cent on back of short covering ahead of derivatives expiry, and buying in IT and auto shares. The Nifty ended up 70 points, at 5,015 and the Sensex surged 252 points, at 16,698. Among the sectoral indices, BSE Oil & Gas, Bankex and Power indices, down two per cent each, are the leading the losses. BSE Consumer Durables is the only one in the positive, up nearly one per cent. The overall market breadth is negative as 698 stocks have declined against 562 advancing ones, on the BSE.