By Michael P. Regan and Rita Nazareth - Oct 25, 2011 10:31 PM GMT+0700
Oct. 25 (Bloomberg) -- Markus Rosgen, Hong Kong-based chief Asian strategist at Citigroup Inc., talks about the outlook for Asian and U.S. equity markets. Rosgen also discusses the impact of Europe's debt crisis on global stocks. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
U.S. stocks slid, halting a three- day rally, as earnings and economic reports disappointed investors and the euro weakened amid confusion over how much progress European leaders are making in debt-crisis talks. Treasuries rallied and commodities trimmed gains.
The Standard & Poor’s 500 Index lost 1.4 percent to 1,237.2 at 11:28 a.m. in New York. The Stoxx Europe 600 Index dropped 0.9 percent and the euro fell 0.3 percent to $1.3887, declining from a six-week high. Ten-year Treasury yields fell eight basis points to 2.16 percent. The S&P GSCI Index of commodities was up 0.7 percent, paring a 1.4 percent gain. Oil rose to a 12-week high on signs of falling U.S. supplies.
The euro and stocks slid as the cancellation of tomorrow’s meeting of European Union finance ministers spurred concern that summits of the region’s leaders will fail to produce agreements on how to tame the debt crisis. 3M Co. (MMM) slid following lower- than-estimated earnings and United Parcel Service Inc. (UPS) slipped as international shipping growth began to cool, while a gauge of U.S. consumer confidence sank to the lowest since March 2009.
“It’s hard to get excited in this environment,” Timothy Ghriskey, who oversees $2 billion as chief investment officer of Solaris Group LLC in Bedford Hills, New York, said in a telephone interview. “You have very anemic growth and you have a big a question mark about the debt situation in Europe.”
German Vote
European leaders will hold a summit tomorrow as they seek to bolster the region’s rescue fund, recapitalize banks and provide debt relief to Greece. Boosting the effectiveness of the European Financial Stability Facility will require further talks with investors as German lawmakers prepare to vote on its new powers, a European Union document showed.
The S&P 500 retreated after three straight gains lifted the benchmark index to the highest level since Aug. 3 and trimmed its year-to-date drop to 0.3 percent. 3M slid 5.2 percent for the biggest loss in the Dow Jones Industrial Average, followed by declines of at least 2.5 percent in Alcoa Inc., Pfizer Inc. and Hewlett-Packard Co.
MF Global Holdings Ltd. plunged 39 percent to $2.16, the lowest price on a closing basis since 2008, after the futures broker said its quarterly loss widened on charges tied to deferred tax assets and a restructuring.
About 74 percent of the 141 S&P 500 companies that have reported results since Oct. 11 have beaten analysts’ estimates, the data show.
Economic Data
The Conference Board’s sentiment index decreased to 39.8 from a revised 46.4 reading in September. The S&P/Case-Shiller index of property values in 20 cities fell 3.8 percent from August 2010, the group said today. The median forecast of 30 economists surveyed by Bloomberg was for a 3.5 percent decline.
The euro weakened against eight of 16 major peers, with the South Korean won and Japanese yen strengthening at least 0.6 percent to lead gains. The dollar strengthened against 13 of 16 major peers, while slipping as much as 0.5 percent against the Japanese currency to touch a post-World War II record of 75.74 yen.
The Stoxx 600 retreated from an 11-week high as construction companies and raw-materials producers led losses. STMicroelectronics NV, Europe’s largest semiconductor maker, fell 7.5 percent after predicting fourth-quarter sales short of analysts’ estimates.
To contact the reporters on this story: Michael P. Regan in New York at mregan12@bloomberg.net; Rita Nazareth in New York at rnazareth@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
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