Dow closes lower after Fed indicates tapering of asset purchases; all eyes on Mark Carney speech today
Trading Floor News August 7, 2013 2:39 PM
<p>The Dow finished down 93 points yesterday after Charles Evans, an official from the Federal Reserve, commented that the US economy would be able to […]</p>
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The Dow finished down 93 points yesterday after Charles Evans, an official from the Federal Reserve, commented that the US economy would be able to cope with the Fed scaling back its asset purchases towards the end of the year.
IBM contributes the highest weighting in the Dow Industrial Average and their shares also pulled the market lower after they were downgraded by Credit Suisse to ‘underperform’ from ‘neutral’.
Asian and European markets have been playing catch up with this downward movement and the Nikkei is currently down 495 points at 13830, and the DAX and FTSE are also down around 30 points each, trading at 6570 and 8262.
The US Crude September contract touched $105 yesterday evening and is hovering just above that low at $105.32.
In equities, Randgold Resources opened lower due to a 62% drop in quarterly profit. They made $54.1mn in the last three months to the end of June versus $141 for the same period a year ago. The drop is largely due to the fall in gold prices that started in September 2012.
On the other end of the scale, Old Mutual have posted good results, with a 14% rise in operating profit.
They made £801mn in the first half of the year which was in the middle of analyst estimates.
The main news to watch out for today is the new Bank of England governor Mark Carney speaking at 10.30am in conjunction with the release of the BoE inflation report.
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