Wednesday, February 6, 2008

Financials Daily - 6th Feb 2008

US: U.S. stocks tumbled, pushing the Standard & Poor's 500 Index down the most in 11 months, after the first contraction in service industries since 2002 reinforced concern the economy is in a recession.

Europe: European stocks fell the most in two weeks after a service-industries report strengthened speculation the U.S. is in a recession and National Semiconductor Corp. and Heidelberger Druckmaschinen AG cut their forecasts.

Asia: Asian stocks fell for the first time in four days as lower profit forecasts from Yamaha Motor Corp. and Olympus Corp. and downgrades of Posco and South Korean shipbuilders fueled concern regional earnings growth will slow.

Commodities: Crude oil fell more than $1 a barrel after a report showed that U.S. service industries contracted in January, a sign of a slowing economy and reduced energy demand. Gold futures fell to the lowest in more than a week after the dollar rose against the euro, eroding the appeal of the precious metal as an alternative investment.

Currencies: The euro declined the most against the dollar in almost two months after Europe's service industries weakened and raised concern that Jean-Claude Trichet's reluctance to cut interest rates will hamper growth.

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