Markets: JP Morgan's $US2b loss hits stocks

Stocks on Wall Street fell after JP Morgan Chase fell 9.3% on big trading losses.

The news wiped out earlier gains when a consumer confidence index unexpectedly rose.

JP Morgan Chase said it had lost $US2 billion in the past six weeks on bad derivatives bets. It said it could face an additional $US1 billion in losses in the second quarter as a result of market volatility.

The Dow Jones Industrial Average fell 34.44 points, or 0.3%, to 12,832.82 at the close (8am NZ time). The 1.7% drop since last Friday was the Dow’s second weekly loss.

The S&P 500 index was down 0.3% at 1353.99 and 1.2% down on the week. The Nasdaq Composite made a fractional gain to 2933.82 for a 0.8 weekly loss.

Other markets: Europe mixed, Asia down
In Europe, Spanish stocks fell on disappointment with the government's latest plan to clean up the country's troubled banks.

But other markets ended a choppy session with modest gains.

The Stoxx Europe 600 index rebounded from early losses to rise 0.4% to 251.97, trimming the week's loss to 0.4%.

Spain's IBEX 35 index ended 0.7% at 6995.60 after falling as low as 6790.

London's FTSE 100 index gained 0.6% to 5575.52, Germany's DAX 30 index climbed 1% to 6579.93 and the French CAC 40 fell fractionally to 3129.77.

Asian markets fell, capping a week of losses across the region, partly driven by disappointing China economic data.

Sony shares slumped 6.4% to their lowest level since 1980, despite posting a smaller-than-expected loss for the year ending March 31.

Japan's Nikkei was down 0.6% to 8953.31, Australia's S&P/ASX 200 was down 0.2% to 4285.10 and Korea's Kospi fell 1.4% to 1917.13.

The Hang Seng Index in Hong Kong dropped 1.3% to 19,964.63, bringing to an end its worst week since September. China’s Shanghai Composite fell 0.6% to 2394.98.

Commodities: Oil, gold down
Crude-oil futures settled lower. Light, sweet crude futures for June delivery fell 1%, or 95USc to end at $US96.13 a barrel in New York and were off 2.4% for the week.

Gold set a fresh 2012 low as investor demand for the US dollar and mild US inflation reduced interest among buyers.

The most actively traded gold contract, for June delivery, fell $US11.50, or 0.7%, to settle at $US1584 an ounce in New York, the lowest settlement since December 30.

Gold fell 3.7% during the week and has retreated in eight of the last 10 trading sessions.

Currencies: US dollar rises on week
The US dollar headed toward a weekly gain – its longest rally since 2008 – after data showed consumer sentiment unexpectedly improved this month.

The euro swung between slight positive and negative territory, buying $US1.2922 from $US1.2936 late on Thursday. It was at ¥103.22, compared with ¥103.40.

The dollar traded at ¥79.88 from ¥79.93. The pound fetched $US1.6071 compared with $US1.6147, while the dollar bought 0.9295 Swiss franc from 0.9285 franc.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7053 0.0000 0.00%
AUD 0.9488 0.0000 0.00%
EUR 0.6318 0.0000 0.00%
GBP 0.5517 0.0000 0.00%
HKD 5.5057 0.0000 0.00%
JPY 78.5540 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1266.7 11.460 2017-05-26T00:
Oil Brent 52.5 0.720 2017-05-26T00:
Oil Nymex 49.8 0.910 2017-05-26T00:
Silver Index 17.3 0.130 2017-05-26T00:

Indices

Symbol Open High Last %
NZX 50 7434.5 7441.6 7434.5 0.10%
NASDAQ 6207.0 6211.5 6205.2 0.08%
DAX 12604.4 12611.5 12621.7 -0.15%
DJI 21070.2 21092.8 21083.0 -0.01%
FTSE 7517.7 7554.2 7517.7 0.40%
HKSE 25671.0 25724.4 25630.8 0.03%
NI225 19798.5 19801.6 19813.1 -0.64%
ASX 5789.6 5789.6 5789.6 -0.65%