Markets Trade in Red on Disappointing Earnings

The Global Markets gives out positive cues this morning. U.S. stocks rose this week, almost wiping out the Dow Jones Industrial Averages 2010 loss, after better-than-estimated earnings at companies from United Parcel Service Inc. to Apple Inc. and Ford Motor Co. lifted confidence the economy is recovering. European stocks advanced as earnings reports from Fiat SpA to Apple Inc. reassured investors that the global economic recovery is intact amid signs the region is weathering the sovereign debt crisis. This morning Asian stocks rose, driving the MSCI Asia Pacific Index to a one-month high, after most European banks passed stress tests, boosting optimism over the health of the global economy. In commodities, Crude oil traded near $79 a barrel in New York after dropping from an 11-week high as Tropical Storm Bonnie weakened and on concern that the pace of fuel demand recovery in the U.S. may falter. Gold advanced, curbing this month’s loss, on speculation that prices less than $1,200 an ounce are helping to spur physical demand for the metal. Copper traded near the highest level in more than two months as a gain in equities boosted optimism about the global economy and metals demand. The markets opened higher this morning, however, have soon pared gains on the back of earnings disappointment from select index stocks. Maruti is particular has been a major loser in early trades. The main dragger this morning is the Auto index which trade in red declining by more than two percentage points followed by the Realty and PSU indices which trade flat in the negative territory. However, some support is provided to the markets by the Teck, Consumer Durables and It indices as the trade in the positive territory on a flat note. Market breadth is positive with 1,263 advances against 1,259 declines. The Sensex trades in red at 18,079.51 declining 51.47 points or 0.28 percentage points. Nifty trades at 5432.90 declining by 16.20 points or 0.30 percentage points.