A roundup of trading on major world markets:
NEW YORK – US stocks fell modestly as a key consumer confidence measure came in lower and the government confirmed that the economy contracted in the first quarter.
The Dow Jones Industrial Average lost 115.44 points (0.64 per cent) to 18,010.68.
The broad-based S&P 500 shed 13.40 points (0.63 per cent) at 2,107.39, while the tech-rich Nasdaq Composite Index fell 27.95 (0.55 per cent) at 5,070.03.
Analysts said there was some disappointment with the economic news released on Friday.
The revised GDP figure for the first quarter, showing a 0.7 per cent contraction, was not a surprise.
But perceptions of a rebound in growth since then were tempered by a fall in the May Chicago regional business activity index, into negative territory, and a sharp fall in the University of Michigan’s consumer confidence index to 90.7 from 95.9 in April.
The market was also being cautious going into the weekend with no deal in sight in Greece’s crunch bailout talks with official creditors.
“The consumer confidence and the Chicago PMI plunged a bit, and I think this is about Greece,” said Peter Cardillo of Rockwell Global Capital.
“The fact that (IMF chief Christine) Lagarde yesterday indicated that there is the potential for Greece leaving the eurozone, that’s on the mind on investors and ahead of the weekend, this is causing this decline.”
Market action focused on Intel and Altera after a media report said Intel’s bid for its chip-making rival is still alive. In April it was believed Altera rejected an offer reported as just above $50 a share.
LONDON – Europe’s equity markets have slumped on the final day of a Group of Seven finance meeting, dominated by festering concerns over Greece and pressure from the US and Japan to resolve the debt crisis.
Investors are increasingly worried that Greece and its creditors could fail to reach an agreement on reforms tied to its bailout and Athens could struggle to meet looming debt repayments next week.
In the eurozone, the CAC 40 in Paris plunged 2.53 per cent to end Friday at 5,007.89 points, and Frankfurt’s DAX 30 tumbled 2.26 per cent to 11,413.82 points.
London’s benchmark FTSE 100 index of top companies dropped 0.80 per cent compared with Thursday’s close to close at 6,984.43 points.
“European equity markets remained under pressure during the last trading session of the month, as persistent concerns regarding Greece’s economic stability and future weighed on market sentiment.” said Myrto Sokou, senior research analyst at Sucden Financial Research.
The European single currency meanwhile firmed to $US1.0971 from $US1.0947 late in New York on Thursday.
While Greece was not officially on the agenda of the Dresden meeting – which was preparing for a wider summit of G7 leaders starting on June 7 – Athens’ troubles dominated the talks.
“All parties need to move” in the Greek negotiations, US Treasury Secretary Jack Lew told reporters after the meeting wrapped up on Friday.
HONG KONG – Japan’s Nikkei has chalked up an eleventh straight gain with the yen sitting around 12-year lows against the dollar.
Shanghai, meanwhile, extended losses on Friday following the previous day’s hefty plunge.
The euro continues to face downside pressure over concerns Greece and its creditors will not reach a bailout agreement, with the head of the IMF warning the crisis could end with the country leaving the eurozone.
Tokyo pared most of its early losses but ended marginally higher, adding 11.69 points to end at 20,563.15 – the index is now enjoying its best rally since February 1988 at the height of Japan’s stock market bubble.
Shanghai, which slumped 6.50 per cent on Thursday, ended 0.18 per cent, or 8.53 points, lower at 4,611.74 after a volatile day that saw it swing from a 4.08 per cent loss and a 1.69 per cent gain. Hong Kong slipped 0.11 per cent, or 30.12 points, to close at 27,424.19.
WELLINGTON – New Zealand shares have closed higher, led by Fisher & Paykel Healthcare after its annual results beat forecasts.
The NZX 50 Index rose 67.31 points, or 1.2 per cent, to 5,844.95 on Friday.
