The Joplin Globe, Joplin, MO

Business

November 14, 2012

European markets underperform as strikes hit

AMSTERDAM — World stock markets were mixed Wednesday, with European indexes down on worsening economic prospects and labor union strikes, while U.S. shares followed Asia’s lead higher.

On Wall Street, stocks opened higher as Cisco’s earnings came in ahead of expectations, September retail sales data were revised higher, and renewed efforts got under way in Washington to resolve the impending “fiscal cliff.”

The Dow Jones industrial average rose 0.2 percent to 12,778 and the S&P 500 added 0.2 percent to 1,377.32.

The “fiscal cliff” is a set of U.S. government spending cuts and tax increases that will take effect automatically at the beginning of next year unless U.S. leaders reach a compromise before then.

U.S. lawmakers gathered for talks on Tuesday, giving traders hope that at least a temporary compromise might somehow be reached before a deadline in seven weeks. President Barack Obama was to meet later Wednesday with about a dozen business executives who want to see an agreement before the end of the year.

“People feel there’s been a significant pullback over fiscal cliff worries,” said Andrew Sullivan, an independent market analyst in Hong Kong. “The reality is we are likely to see a solution.”

In Europe, unions coordinated work stoppages across many countries to protest the austerity measures that governments have been imposing to reduce public debt. Flights were delayed around the continent due to transportation strikes.

Meanwhile, official figures showed industrial output in the 17-country eurozone dropped 2.5 percent on the month in September, worse than analysts had expected.

By mid-afternoon in Europe, Britain’s FTSE 100 was down 0.5 percent to 5,756.66. Germany’s DAX was 0.3 percent lower at 7,146.73 and France’s CAC-40 shed 0.3 percent to 3,421.33.

“September’s plunge in eurozone industrial production provides firm evidence that the economic outlook in the region is continuing to deteriorate,” said Ben May, an analyst at London-based Capital Economics. “We expect the eurozone to fall deeper into recession in the latter part of this year and worse is to come in 2013.”

In Asia, traders were hopeful that a transition of power in China will be followed by greater initiatives to shore up its  economy. On Wednesday, President Hu Jintao stepped aside to make way for Vice President Xi Jinping as party leader.

Hong Kong’s Hang Seng jumped 1.2 percent to 21,441.99. Mainland Chinese shares also gained, with the Shanghai Composite Index rising 0.4 percent to 2,055.42. The Shenzhen Composite Index gained 0.3 percent to 818.60. Japan’s Nikkei 225 rose marginally to close at 8,664.73

In other markets, Australia’s S&P/ASX 200 gained 0.2 percent to close at 4,388.40. South Korea’s Kospi brushed off earlier losses to rise 0.2 percent to 1,894.04.

Benchmark oil for December delivery was up 14 cents to $85.52 in electronic trading on the New York Mercantile Exchange. The contract fell 19 cents to finish at $85.38 per barrel on the Nymex on Tuesday.

The euro rose 0.3 percent to $1.2745 from $1.2704 late Tuesday in New York. The dollar rose strongly against the yen, up more than a percent to 80.30 yen from 79.41 yen.

 

1
Text Only
Business
  • Business US stocks close higher for third day in a row

    Investors drove stock prices to their highest level in a week Wednesday,

    April 16, 2014 1 Photo

  • China’s growth slows to 7.4 percent in 1Q

    China’s economic growth slowed further in the latest quarter but appeared strong enough to satisfy Chinese leaders who are trying to put the country on a more sustainable path without politically dangerous job losses.

    April 16, 2014

  • A look at 3 minority business mentoring programs

    A look at minority business mentoring programs, called accelerators, in three metropolitan areas.

    April 16, 2014

  • Why high oil prices are actually good for airlines

    Airline executives frequently complain about fuel costs. But the truth is higher prices actually have been good for business.

    April 16, 2014

  • Business US stocks open higher; Yahoo soars in early trade

    U.S. stocks moved higher in early trading on Wednesday, extending their gains into a third day. Investors welcomed solid earnings from Yahoo as well as some encouraging news about China’s economy and U.S. factory production.

    April 16, 2014 1 Photo

  • Detroit strikes second deal with its other retirees

    The city of Detroit reached tentative agreements to preserve pensions for retired police office and firefighters but cut monthly payments for other former employees, key deals that could accelerate the largest public bankruptcy in U.S. history, officials said Tuesday.

    April 16, 2014

  • Missouri court expands legal rights for injured workers

    The Missouri Supreme Court has overturned 30 years of precedent with a ruling that gives greater legal protections to injured workers who are fired from their jobs.

    April 15, 2014

  • Immigration activists urge Obama to act boldly

    Latinos and immigration activists are warning of political peril for President Barack Obama and Democrats in the fall election unless the president acts boldly and soon to curb deportations and allow more immigrants to remain legally in the U.S.

    April 15, 2014

  • Farmers off to slow start planting corn crop

    Spring planting across the nation’s Corn Belt is sputtering because the soil remains too soggy or cold for effective seeding.

    April 15, 2014

  • Schreiber Foods schedules Carthage plant expansion

    Plans to expand a Schreiber Foods plant to eventually add 160 new jobs have been endorsed by a Carthage committee working with the company. Andrew Tobish, director of combinations for Schreiber, which is based in Green Bay, Wis., confirmed the project, which he said would be complete by late spring or early summer in 2015.

    April 15, 2014

Poll

The Supreme Court may take up a challenge to an Ohio law that bars false statements about political candidates during a campaign. Do you think false accusations made in the heat of an election should be punished as a crime?

A. Yes.
B. No.
     View Results
Facebook
Twitter Updates
Follow us on twitter
NDN Video
Disbanding Muslim Surveillance Draws Praise Hundreds Missing After South Korean Ferry Sinks Passengers Abuzz After Plane Hits Swarm of Bees Boston Bomb Scare Defendant Appears in Court Pistorius Trial: Adjourned Until May 5 Diaz Gets Physical for New Comedy Raw: Ferry Sinks Off South Korean Coast Town, Victims Remember Texas Blast Freeze Leaves Florida Panhandle With Dead Trees At Boston Marathon, a Chance to Finally Finish Are School Dress Codes Too Strict? Raw: Fatal Ferry Boat Accident Suspicious Bags Found Near Marathon Finish Line Boston Marks the 1st Anniversary of Bombing NYPD Ends Muslim Surveillance Program 8-year-old Boy Gets His Wish: Fly Like Iron Man Sex Offenders Arrested in Slayings of CA Women India's Transgenders Celebrate Historic Ruling Tributes Mark Boston Bombing Anniversary Raw: Kan. Shooting Suspect Faces Judge