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US stocks close lower as Google’s earnings dissapoint market

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A roundup of trading on major world markets:

NEW YORK – Google’s shares plunged after a surprise drop in earnings in a prematurely released quarterly report, but while the Nasdaq sank the Dow avoided being pulled down as well.

Google shares closed down 8.0 per cent at $695.00, rebounding slightly after hitting a 10 per cent floor earlier following the unintended release of its disappointing earnings report at mid-session.

That pulled the Nasdaq down for a loss of 31.25 points, or 1.01 per cent, for the day, ending at 3,072.87.

But the Dow Jones Industrial Average, the blue-chips roster that does not include Google, held firm, losing just 8.06 points (0.06 per cent) at 13,548.94.

The broad-based S&P 500 felt the effect, though, shedding 3.57 points (0.24 per cent) at 1,457.34.

LONDON – Major European stock markets have wobbled but still closed higher for the fourth consecutive day on growing confidence in Europe as a key summit got under way in Brussels and investors anticipated an improvement in Spain’s financial situation.

London’s benchmark FTSE 100 index of top companies rose by a slight 0.10 per cent to 5917.05 points, in part on news that British retail sales rose in September.

Frankfurt’s DAX 30 was up 0.58 per cent at 7437.23 points, while the Paris CAC 40 reversed its intraday losses to close with a gain of 0.22 per cent at 3535.18 points and Madrid’s IBEX 35 lost 0.34 per cent to 8100.30 points.

The euro eased to $US1.3101 in foreign exchange trading, from $US1.3120 late in New York on Wednesday.

HONG KONG – Asian markets climbed as dealers welcome news China’s economy grew in line with forecasts, while confidence was also lifted by more upbeat US data and hopes for the eurozone.

Soothing comments on the economy from Chinese Premier Wen Jiabao on Wednesday also provided support, while dealers looked ahead to a European Union summit set to begin later on Thursday.

Shanghai rose 1.24 per cent, or 26.07 points, to 2,131.69 while Hong Kong added 0.48 per cent, or 102.07 points, to 21,518.71.

Tokyo closed 2.00 per cent higher, adding 176.31 points to 8,982.86 on Thursday as a weakening yen boosted exporters, while Sydney gained 0.69 per cent, adding 31.2 points to 4,559.4 and Seoul advanced 0.20 per cent, or 3.97 points, to 1,959.12.

WELLINGTON – The NZX 50 Index rose 36.76 points, or 0.92 per cent, to 4001.94, the highest since January 6, 2008.