Global markets update: US, European stocks slip on worries about banking system
1 min read 09 Aug 2023, 02:47 AM ISTS&P 500 falls 0.4%, Dow Jones Industrial Average drops 0.4%, Nasdaq composite sheds 0.8%
PremiumUS stocks slipped on Tuesday on worries about the banking system after Moody’s cut the credit ratings for 10 smaller and midsized lenders.
The S&P 500 fell 19.06, or 0.4%, at 4,499.38. The Dow Jones Industrial Average dropped 158.64, or 0.4%, at 35,314.49. The Nasdaq composite shed 110.07, or 0.8%, at 13,884.32.
The ratings agency cited several concerns about their financial strength, from the effects of higher interest rates to the work-from-home trend that's leaving office buildings vacant.
Shares of Beyond Meat tumbled 14.3% after its revenue weakened more than analysts’ forecast.
IT company Palantir Technologies fell 5.3% after releasing its quarter results.
The yield on the 10-year treasury fell to 4.02% from 4.10% on Monday. The 2-year treasury yield slipped to 4.75% from 4.79%.
Currencies
The US dollar rose to 143.39 Japanese yen from 142.44. The euro slipped at $1.0960 from $1.1007.
Europe
European stocks dropped on Tuesday after Italian government approved a 40% windfall tax on lenders.
The pan-European STOXX 600 index lost 0.2%.
Italy's FTSE MIB tumbled 2.1% to hit four-week lows.
Britain’s FTSE 100 fell 0.4% at 7,527.42. Germany’s DAX dipped 1.1% at 15,774.93. France’s CAC 40 was down 0.7% at 7,269.47.Italian banks such as Intesa Sanpaolo, Banco BPM and UniCredit shed between 5% and 9.1%.
Danish drugmaker Novo Nordisk rose 17.3% to a record high, after it said a large study had shown its obesity treatment Wegovy also had a clear cardiovascular benefit.
Asia
In Asia, Hong Kong’s Hang Seng index fell 1.8% at 19,184.17. China’s Shanghai Composite was down 0.3% at 3,260.62.
Japan’s Nikkei 225 added 0.4% at 32,377.29.
Australia’s S&P/ASX 200 index closed flat at 7311.1 points. New Zealand's benchmark S&P/NZX 50 index lost 0.5% at 11,868.8 points.
Energy prices
Brent crude for October delivery added 83 cents at $86.17 a barrel on Tuesday. The US crude oil benchmark for September delivery gained 98 cents to $82.92 a barrel.
Natural gas for September delivery rose 5 cents at $2.78 per 1,000 cubic feet.
Bullion
Gold for December delivery lost $10.10 at $1,959.90 an ounce. Silver for September delivery fell 42 cents at $22.81 an ounce.
