A roundup of trading on major world markets:
NEW YORK – US stocks drifted to a mixed finish Tuesday ahead of the start of company earnings season and a key vote in Slovakia that could decide the eurozone’s rescue fund amid a sovereign debt crisis.
The Dow Jones Industrial Average fell 16.88 points (0.15 per cent) to finish at 11,416.30.
The broader S&P 500 edged up 0.65 point (0.05 per cent) to 1,195.54, while the tech-heavy Nasdaq Composite gained 16.98 points (0.66 per cent) to 2,583.03.
The main indexes had opened lower following Monday’s heavy rallies on hopes for European political action on resolving the eurozone debt crisis. The Dow surged 2.97 per cent and the Nasdaq gained 3.50 per cent.
All eyes were on Slovakia, the last of 17 eurozone countries to vote on changes that expand the eurozone rescue fund, known as the European Financial Stability Facility.
Minutes after the US equities markets closed, Slovakia’s lawmakers rejected the revamp of the EFSF in a vote that also toppled the country’s centre-right government.
Wall Street investors also awaited the minutes of the last Federal Reserve policy-setting meeting, slated for release Wednesday.
After its September 21 meeting, the Federal Open Market Committee unveiled a $US400 billion stimulus plan to boost the faltering economy, a move opposed by three of the Fed’s policy panel 10 members.
The bond market, closed Monday for a public holiday, retreated. The yield on the 10-year Treasury rose to 2.16 per cent from 2.07 per cent Friday, while that on the 30-year Treasury climbed to 3.11 per cent from 3.02 per cent.
Bond yields and prices move in opposite directions.
LONDON – European shares closed mostly lower in cautious trade marked by political feuding in Slovakia over a boost to the eurozone bailout fund and a warning by ECB chief Jean Claude Trichet that the world faced systemic dangers.
London’s FTSE-100 index closed off 0.06 per cent to 5,395.7 points and Paris’ CAC 40 index was down 0.25 per cent to 3,153.52 points.
Frankfurt’s DAX bucked the trend to end the day with a gain of 0.30 per cent to 5,865.01 points.
Elsewhere in Europe, Milan slipped 0.38 per cent, Madrid 0.53 per cent, Lisbon 1.25 per cent, Brussels 0.69 per cent and Amsterdam by 0.16 per cent.
In foreign exchange deals, the European single currency was steady at $1.3643 from $1.3645 in New York late on Monday. The dollar was flat against the yen at 76.68 yen from 76.67 yen on Monday.
HONG KONG – Asian markets have surged for a fourth straight day as dealers followed a rally on Wall Street sparked by a French and German promise to back up beleaguered eurozone banks.
Adding to the sense of optimism on Tuesday was a decision by France, Belgium and Luxembourg to bail out Dexia bank, the first lender to be dragged under by the European debt crisis.
Tokyo closed 1.95 per cent higher, or 168.06 points, at 8,773.68, South Korea’s KOSPI ended 1.62 per cent higher, or 28.58 points, at 1,795.02, and Sydney’s S&P/ASX 200 gained 0.63 per cent, or 26.6 points, to 4,227.6.
Hong Kong’s benchmark Hang Seng index closed 2.43 per cent, or 430.53 points, higher at 18,141.59, while Shanghai edged up 0.16 per cent, or 3.73 points, to 2,348.52.
Hong Kong and Shanghai were given a lift after one of China’s sovereign wealth funds bought stakes in the mainland’s four biggest lenders.
Asian traders have been in a buying mood for several sessions as fears that any Greek default would be contagious eased slightly, thanks to top European figures saying everything possible would be done to protect other economies.
Hong Kong and Shanghai soared in early trade, boosted by China’s big four banks after sovereign wealth fund Central Huijin Investment bought stakes in each of them in a government move to shore up financial markets and boost confidence in the lenders.
However, most of the Shanghai index’s gains were wiped out as fears over the domestic economy returned.
China Construction Bank ended up 2.5 per cent, Bank of China rose 2.1 per cent, Agricultural Bank added 2.0 per cent and Industrial and Commercial Bank was 1.5 per cent higher.
WELLINGTON – Wellington rose 0.69 per cent, or 23.30 points, to 3,396.15.
