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Stock indices decline on market news

13 January 2010 07:12 (UTC +04:00)

Baku- APA-Economics. In mid-afternoon trading, the Dow was 62.95 points lower, by 0.59 per cent, at 10,601.64. The Standard & Poor’s 500 index had fallen 13.09, or 1.14 per cent, to 1,133.89, after advancing for the first six days of the year for the first time since 1987.
The Nasdaq composite index was down 33.26, or 1.44 per cent, to 2,279.15.
Bond prices rose as questions about the economy increased demand for the safety of government debt. That pushed the yield on the 10-year Treasury note down to 3.74 per cent from 3.82 per cent late Monday.
Monday’s report on Chinese exports and other signs of strengthening in the economy is now pushing the country to tighten its monetary policy. China’s central bank on Tuesday increased the interest rate on its one-year bill to 1.84 per cent from 1.76 per cent. The rate had been steady since August.
The bank also raised the ratio of reserves that Chinese banks must hold by 0.5 percentage points. That change will go into effect Monday.
European stock markets closed lower on Tuesday as US corporate results fell short of forecasts, casting doubt on the strength of the economic recovery and the substantial stock gains made in recent months.
Dealers said that after prices rose 50 per cent and more made from the lows seen in March, investors are wary that they may have got too far ahead of underlying fundamentals and so were hoping to see solid US company results.
In London, the FTSE 100 index of leading shares closed down 39.36 points, by 0.71 per cent to 5,498.71.
FRANKFURT - The DAX fell a sharp 1.61 per cent, by 97.5 points, to 5,943.0, breaching the key 6,000 points level.
PARIS - The CAC 40 shed 43.04 points, by 1.06 per cent, to 4,000.05.
TOKYO - Japan’s Nikkei stock average climbed to a 15-month closing high on Tuesday as resource and machinery shares gained after China reported record imports of some commodities and stronger-than-expected exports, bolstering hopes for the global economy.