NEW YORK - Wall Street receded again on Wednesday after a US Government report on retail sales and a jump in oil prices raised concerns on whether consumer spending could generate economic growth.
The Commerce Department said retail sales slipped 0.1 per cent as rising prices soaked up economic stimulus payments to households. Excluding a big drop in sales of automobiles, retail sales rose 0.4 per cent. But even on that basis, it was the weakest showing in five months.
Wall Street had expected sales to remain flat after a minor increase in June. The report followed a warning from department store Macy’s Inc that its full-year profits would fall short of expectations due to slower sales.
The Dow Jones industrial average lost 109.51 points, or 0.94 per cent to 11,533. The broader Standard & Poor’s 500 index slid 3.76 points, or 0.29 per cent to 1,285.83, while the NASDAQ declined 1.99 points, or 0.08 per cent, to 2,428.62.
LONDON - European stock markets dived on Wednesday after heavy losses in Asia and a dip in early Wall Street trading.
In London, the FTSE 100 index of leading companies lost 85.9 points, or 1.55 per cent, to close at 5,448.6.
FRANKFURT - The Dax plummeted 2.49 per cent, or 163.68 points, to 6,422.19.
PARIS - The CAC 40 dropped 2.56 per cent, or 115.51 points, to 4,402.97.
TOKYO - Japan share prices closed down 2.11 per cent, hit by renewed worries about the health of the world’s top banks and news of a contraction in the domestic economy. Exporters’ shares suffered after the US dollar fell back below the 109 yen level, dimming prospects for Japanese companies’ overseas earnings.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 280.55 points to end at 13,023.05.
HONG KONG - Hong Kong shares closed down 1.6 per cent, falling for a fourth consecutive day on renewed credit worries.
The benchmark Hang Seng Index dropped 347.57 points to 21,293.32.
WELLINGTON - New Zealand shares closed down 0.25 per cent Wednesday, with volatile trading in third-ranked Fletcher Building after it announced annual profit just above expectations, but that the outlook remained uncertain.
The benchmark NZX-50 index fell 8.39 points to 3,345.235.
SYDNEY - The Australian stock market is expected to open lower following falls on Wall Street, although at 0750 AEST the Sydney Futures Exchange’s September share price index futures contract was just four points down at 4,910.
In economic news today, the Australian Bureau of Statistics releases average weekly earnings data for the May quarter, and Westpac and the Melbourne Institute release their index of consumer inflation expectations.
Annual results are due from ASX Ltd, Leighton Holdings Ltd, Futuris Corp Ltd and Stockland Ltd.
PMP Ltd will release interim results, and retailer David Jones will issue fourth quarter and full year sales figures.
The Retail Financial Services Forum enters day two of three, at Sydney’s Darling Harbour.
In Sydney, Macquarie Communications Infrastructure Group chief executive Scott Davies addresses the American Chamber of Commerce in Australia.
The Australian share market closed lower on Wednesday, largely attributable to volatility returning to the US financial sector.
The benchmark S&P/ASX200 index dropped 102 points to 4,951.6, while the broader All Ordinaries fell 94.4 points to 4,995.9.
NYMEX
Crude oil futures rose more than $2 a barrel after a US Energy Department report showed a bigger-than-forecast decline in inventories of gasoline as refiners shut units and imports fell.
Gasoline supplies dropped 6.39 million barrels to 202.8 million barrels last week, the biggest decline since October 2002 when Hurricane Lili and Tropical Storm Isidore disrupted output along the Gulf of Mexico.
Crude oil for September delivery rose $2.99, or 2.6 per cent, to settle at $116 a barrel on the New York Mercantile Exchange, the biggest one-day gain since July 30. Futures touched $112.31 yesterday, the lowest since May 2.
COMEX
Gold rose for the first time this month on speculation a 12 per cent decline since the end of July that had erased this year’s gains was exaggerated. Silver also rose.
The rebound capped eight straight losing sessions, and came after the price touched $808.60 an ounce yesterday, the lowest since December 21.
Gold futures for December delivery rose $16.90, or 2.1 per cent, $831.50 an ounce on the Comex division of the New York Mercantile Exchange, after earlier touching $836.40.
Gold’s rally is the biggest percentage gain for a most-active contract since June 26.
Silver futures for September delivery jumped 36 cents, or 2.5 per cent, to $14.845 an ounce on the Comex.
Silver has declined 0.5 per cent this year while gold has dropped 0.7 per cent.
