Global Stocks Mostly Lower 11/27 06:08
Global stocks were mostly lower in muted trading Friday, after Wall Street
was closed for Thanksgiving, but China's market fell sharply as investigations
into the securities industry widened to include two top brokerages.
TOKYO (AP) -- Global stocks were mostly lower in muted trading Friday, after
Wall Street was closed for Thanksgiving, but China's market fell sharply as
investigations into the securities industry widened to include two top
KEEPING SCORE: France's CAC 40 slipped 0.5 percent to 4,921.22 and Germany's
DAX edged down 0.1 percent to 11,309.69. Britain's FTSE 100 fell 0.5 percent to
6,362.94. U.S. shares were also set to drift lower in an abbreviated trading
session. S&P 500 futures dipped 0.1 percent to 2,085.40. Dow futures dropped
0.2 percent to 17,761.00.
CHINA PROBE: Two major Chinese brokerages announced they are under
investigation for possible violation of securities market rules in the latest
aftershock of this summer's market plunge. A string of Chinese securities
executives have been detained or questioned following a plunge in share prices
that began in early June. The investigations were seen by many as an attempt by
the ruling Communist Party to deflect blame for a market bubble that it
ASIA'S DAY: China's Shanghai Composite was down 5.5 percent at 3,436.30
after earlier falling more than 6 percent. Japan's benchmark Nikkei 225
retreated 0.3 percent to 19,883.94 and South Korea's Kospi fell 0.1 percent at
2,028.99. Hong Kong's Hang Seng dropped 1.9 percent to 22,068.32. Other
regional markets were also lower, falling in Taiwan, Australia, the
Philippines, Indonesia, Singapore and Thailand.
RUSSIA-TURKEY: Markets have been wary about geopolitical tensions after
Turkey downed a Russian plane that entered its territory from war torn Syria.
Russian President Vladimir Putin has said his nation is ready to cooperate with
the U.S.-led coalition fighting the Islamic State group, while criticizing the
U.S., saying it should have prevented its coalition ally Turkey from making
such a move.
THE QUOTE: "Russia has threatened to retaliate economically against Turkey
in response to the shooting down of its warplane, but both sides appear keen
not to escalate any military tensions despite a war of words," said Chang Wei
Liang of the Singapore Treasury Division of Mizuho Bank. "With Russia-Turkey
economic ties being rather small in the context of the global economy, we think
that risks of spillovers to the global recovery are rather small."
ENERGY: Benchmark U.S. crude was down 90 cents to $42.14 a barrel in
electronic trading on the New York Mercantile Exchange. Brent crude, a
benchmark for international oils, lost 33 cents to $45.13 a barrel in London.
CURRENCIES: The dollar fell to 122.41 yen from 122.62 yen on Thursday. The
euro rose to $1.0617 from $1.0607.