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Market Outlook
Commodities Market : Crude oil fell to a seven-week low as the euro dropped against the dollar on concern that Greece’s bailout may have to be extended to other indebted nations. Copper crumbled on continued pressure from demand concerns in top consumer China. Gold futures rebounded from the biggest decline in two weeks as investors bought the precious metal as a haven against financial turmoil in Europe.
Sensex recovers in the last session : Reacting to weak cues from the global markets, the Sensex opened on a pessimistic note at 17,103.95 with a negative gap of 33.19 points. Thereafter, the gauge extended its weakness and touched the intraday low of 16,858.23 n worries about sovereign debt issues in Europe. However, in the early afternoon session, the markets recovered from the day’s low, tracking a ebound in the Chinese markets and US index futures. Nonetheless, in the late afternoon session the markets once again weakened due to the weak start in the European markets. In the last hour of trade, the markets made a smart recovery and regained the 17,000 mark as the IT pivotals recovered after the rupee dropped against the dollar. The Sensex finally ended the session below the crucial 17,100 mark at 17,087.96, falling 49.18 points or0.29%. The Nifty ended the day at 5,124.90, declining 23.60 points or 0.46%
US markets and European markets decline : US stocks fell, sending the Standard & Poor’s 500 Index to a six-week low, as concern that European government debt levels will derail the global recovery overshadowed growth in American service industries and jobs. The Dow Jones, S&P 500 and NASDAQ fell 0.54%, 0.66% and 0.54%, respectively. Walt Disney Co., American Express Co. and General Electric Co. led the declines in the Dow Jones Industrial Average after European Central Bank council member Axel Weber said there is a threat of “grave contagion effects” from the debt crisis. ConocoPhillips slumped 2.2% as oil dropped below USD 80 a barrel for the first time since March 26. The FTSE 100 fell, sinking to the lowest level since February, as a cautious forecast weakened Next Plc and amid concern government debt levels in Europe will stall the economic recovery. The FTSE 100 slipped 69.18 points or 1.28%, to 5,341.93. Next slipped 3.4% after the retailer said it remains cautious on its forecast for this year. Kazakhmys Plc and Royal Dutch Shell Plc were among the biggest fallers on the FTSE 100.
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