NEW YORK - US stocks fell 0.9 per cent as financial shares were hurt after number one investment bank Goldman Sachs warned that US banks would have to raise as much as $US65 billion in capital to shore up their balance sheets.
In a positive development, Goldman Sachs posted an 11 per cent fall in quarterly earnings that exceeded expectations by avoiding major losses on assets linked to US sub-prime mortgage debt.
The Dow Jones industrial average shed 108.78 points, or 0.89 percent, to 12,160.30 and the Standard & Poor’s 500 Index lost 9.21 points to 1,350.93.
The Nasdaq Composite Index gained 17.05 points to 2,457.73.
LONDON - UK stocks rose after Goldman Sachs’s relatively strong result boosted banking stocks.
The FTSE 100 added 67.3 points to 5,861.9
FRANKFURT - The DAX index advanced 66.28 points to 6,796.16
PARIS - The CAC-40 index rallied 28.59 points to 4,686.33
TOKYO - The Nikkei stock average fell slightly as investors took profits after the previous day’s gains and ahead of crucial US inflation data.
The Nikkei edged back 6 points at 14,348.37.
HONG KONG - Stocks after a strong US lead but gains were pared by inflation worries on the mainland.
The Hang Seng Index firmed 28.30 points to 23,057.99
WELLINGTON - The NZSX-50 index slipped 1.7 points to 3,404.6.
SYDNEY - The Australian share market is expected to open lower after US stocks fell on a warning from Goldman Sachs that US banks will need to raise billions of dollars in capital.
On the Sydney Futures exchange, the June share price index was down 10 points at 5,409.
Today, the Australian Bureau of Statistics releases merchandise imports data for May.
The Australian stock market closed in positive territory yesterday, buoyed by strong gains in the resource and energy sectors.
The benchmark S&P/ASX200 index rose 51 points, or 0.95 per cent, to 5,422.7, while the broader All Ordinaries gained 49.6 points to 5,525.9.
NYMEX
Oil prices slipped from record highs on Tuesday on plans by top exporter Saudi Arabia to increase crude output to help curb soaring fuel costs.
The move by the OPEC kingpin came as American and British regulators imposed position limits on US crude contracts on the London-based ICE exchange amid concerns speculators are pushing prices above levels supported by supply and demand.
US crude settled down 60 US cents at $US134.01 a barrel after hitting a record $US139.89 on Monday. London Brent crude settled 99 US cents lower at $US133.72 a barrel.
United Nations chief Ban Ki-moon said over the weekend that Saudi Arabia was set to raise its oil output to 9.7 million barrels per day in July, up 550,000 bpd from May.
The plan comes ahead of a June 22 meeting between oil producing and consumer nations in Saudi Arabia as protests against high fuel costs spread across the globe.
LONDON METALS EXCHANGE
Copper prices were underpinned by a weak dollar and robust industrial production data from China, which boosted expectations of strong demand, traders and analysts said.
Aluminium touched its highest level in almost a month at $US3,046 per tonne, boosted by high oil prices and worries about supplies from China, while zinc hit $US1,850, its lowest in more than two years, on concerns about a surplus this year.
Benchmark copper on the London Metal Exchange ended at $US8,088 a tonne in open outcry trade, down $US12 from its close on Monday when it touched $US8,159, a high since May 28.
Aluminium rose to $US3,046 from $US2,975 a tonne.
The energy-intensive metal used in power, packaging and transport spiked back above the $3,000-level on worries about supplies from China, the world’s top producer and consumer.
Zinc ended at $US1,875 a tonne from $US1,880.
Lead finished at $US1,865 a tonne from $US1,811, nickel at $US24,150 from $US23,950 and tin at $US22,025 from Monday’s last quote at $US21,945/21,950.
COMEX
Gold ended a touch higher on Tuesday, recovering from session lows as buying increased after the dollar softened against the euro following disappointing US economic data.
The precious metal came under pressure in earlier trade as traders took profits after a strong session on Monday, when gold had risen to an intraday high of $US894.70 an ounce on the weaker dollar.
New York August gold on the COMEX division of New York Mercantile Exchange rose $US0.60 at $US886.90 an ounce.
July silver on the COMEX division fell 15.7 US cents to $US17.075.
At 0630 AEST, the spot price of gold was $US883.70, down $US1.90 on last night’s Sydney close.
