Equities
Chinese data disappointed for a second day, as import growth fell significantly short of estimates. The Shanghai Composite slipped .3% to 2164, and the Hang Seng eased .2% to 19396. The Nikkei shed .4% to 8857, the ASX 200 fell .5% to 4098, and the Kospi dipped .4% to 1829.
European indexes gained, amid hopes that Germany’s top court will approve the latest European bailout plan. The DAX jumped .8% to 6438, the FTSE climbed .7% to 5664, and the CAC40 rose .6% to 3175.
US stocks were less fortunate, skidding for their 4th straight session. The Dow fell 83 points to 12653, the Nasdaq slumped 1% to 2902, and the S&P 500 dropped .8% to 1341.
Alcoa reported earnings which exceeded analyst forecasts for both profit and revenues, yet the share tumbled 4.1%.
Alcoa Drops 4.1% Despite a Positive Earnings Report
AMD cut its sales outlook, sending shares down 11.2%.
Treasuries and Commodities
Bonds rose modestly, as 10-year notes inched up 2/32 to yield 1.50%, and 30-year notes climbed 12/32 to yield 2.61%.
Commodities tumbled due to fears of weak Chinese demand. Crude oil dropped 2.3% to 83.98, natural gas tanked 4.5% to 2.752, and gasoline slipped .5% to 2.7447.
Silver sank 2.3% to 26.82, gold fell 1.3% to 1567.90, and copper dropped 1.1% to 3.387.
Currencies
The Dollar rose moderately on Tuesday, as investors continued to move out of risk. The Euro and Swiss Franc both fell .5% to 1.2253, and .9800 respectively. The Canadian Dollar declined .3% to 1.0224, and the Australian Dollar slipped .2% to 1.0186. The Yen rose .2% to 79.40, and the Pound settled flat at 1.5522.
Economic Outlook
The TIPP small business optimism index rose to 47 from 46.7, slightly exceeding forecasts. A reading below 50 denotes pessimism.
Wednesday’s reports will include wholesale inventories, trade balance, weekly oil inventories, and the minutes from the latest FOMC meeting.
Earnings are due from Marriott and Texas Instruments.
