Markets drop as New York battens down the hatches
10/29/12 13:07EDT
LONDON -Markets started the week on a downbeat note
as investors fretted over the cost of a mammoth storm that was heading
towards the eastern U.S. and prompted the closure of Wall Street on
Monday.
Much of the East Coast, including New York and Washington D.C., were coming to a standstill as millions of people prepared for the arrival of Hurricane Sandy, which is due to make landfall later in the day and converge with two other weather systems.
Authorities on Wall Street confirmed Sunday there would be no trading, in person or electronically, on Monday. Wall Street is expected to remain closed on Tuesday, while many companies that were due to report their corporate earnings will likely delay their publication.
"The economic impact cannot be underestimated," said Elsa Lignos, an analyst at RBC Capital Markets.
Insurers such as Munich Re, Hannover Re and Zurich Insurance underperformed other stocks as investors worried about the potential cost of the storm's damage.
They weighed on indexes across Europe. The FTSE 100 index of leading British shares dropped 0.2 percent to close at 5,795.10 while Germany's DAX fell 0.4 percent to 7,203.16. The CAC-40 in France ended 0.8 percent lower at 3,408.89.
The uncertainty generated by the "superstorm" comes at the start of a big week in the United States. This is the last full week before next Tuesday's presidential election and culminates Friday with the release of monthly jobs data, which many analysts think could have an impact on the vote.
"A significant swing in either direction is likely to be heavily reported in the media, potentially swinging the undecided voter," said James Hughes, chief market analyst at Alpari, of the jobs figures.
Despite the storm clouds over the U.S., the dollar has remained firm, partly because it often garners support at times of investor unease. The euro was 0.4 percent lower at $1.2892, for example.
Earlier, Asian markets shed early gains and closed mostly lower. Japan's Nikkei 225 index fell marginally to 8,929.34 a day before the Bank of Japan's monetary policy committee was to meet, to grapple yet again with the country's longstanding economic doldrums. South Korea's Kospi ended barely changed at 1,891.52 while Hong Kong's Hang Seng fell 0.2 percent to 21,511.05.
Oil prices were on the retreat alongside equities, with the benchmark oil contract for December delivery down $1.24 to $85.04 a barrel in electronic trading on the New York Mercantile Exchange.
Much of the East Coast, including New York and Washington D.C., were coming to a standstill as millions of people prepared for the arrival of Hurricane Sandy, which is due to make landfall later in the day and converge with two other weather systems.
Authorities on Wall Street confirmed Sunday there would be no trading, in person or electronically, on Monday. Wall Street is expected to remain closed on Tuesday, while many companies that were due to report their corporate earnings will likely delay their publication.
"The economic impact cannot be underestimated," said Elsa Lignos, an analyst at RBC Capital Markets.
Insurers such as Munich Re, Hannover Re and Zurich Insurance underperformed other stocks as investors worried about the potential cost of the storm's damage.
They weighed on indexes across Europe. The FTSE 100 index of leading British shares dropped 0.2 percent to close at 5,795.10 while Germany's DAX fell 0.4 percent to 7,203.16. The CAC-40 in France ended 0.8 percent lower at 3,408.89.
The uncertainty generated by the "superstorm" comes at the start of a big week in the United States. This is the last full week before next Tuesday's presidential election and culminates Friday with the release of monthly jobs data, which many analysts think could have an impact on the vote.
"A significant swing in either direction is likely to be heavily reported in the media, potentially swinging the undecided voter," said James Hughes, chief market analyst at Alpari, of the jobs figures.
Despite the storm clouds over the U.S., the dollar has remained firm, partly because it often garners support at times of investor unease. The euro was 0.4 percent lower at $1.2892, for example.
Earlier, Asian markets shed early gains and closed mostly lower. Japan's Nikkei 225 index fell marginally to 8,929.34 a day before the Bank of Japan's monetary policy committee was to meet, to grapple yet again with the country's longstanding economic doldrums. South Korea's Kospi ended barely changed at 1,891.52 while Hong Kong's Hang Seng fell 0.2 percent to 21,511.05.
Oil prices were on the retreat alongside equities, with the benchmark oil contract for December delivery down $1.24 to $85.04 a barrel in electronic trading on the New York Mercantile Exchange.
oing Business in International Markets
The Office of Commercial and Business Affairs (CBA) plays a major role in coordinating trade and investment matters in support of U.S. firms doing business overseas. Our mission is to ensure that private sector business concerns are fully integrated into U.S. foreign and economic policy, and engages U.S. government resources to assist and promote U.S. business interests overseas. This office covers the following key initiatives:
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Commercial Diplomacy:
CBA coordinates State Department advocacy on behalf of American businesses and can provide assistance in opening markets, leveling the playing field, protecting intellectual property and resolving trade and investment disputes. CBA works with U.S. Government trade promotion partners and U.S. embassies around the world to support American businesses overseas by providing commercial information and identifying market opportunities for American firms, advocating on their behalf, and encouraging corporate responsibility. CBA can help answer your questions and provide information on important issues such as corruption and bribery in overseas markets, U.S. export controls on sensitive equipment and technologies, and business-related visas for employees, partners and clients of U.S. firms.
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Entrepreneurship:
In President Obama’s announcement on June 2009 in his Cairo speech, “A New Beginning,” and on the Presidential Summit on Entrepreneurship in April, the focus on global entrepreneurship is a growing element in our foreign economic and development policy. CBA incorporates this message with the Global Entrepreneurship Program (GEP), a vehicle to catalyze, consult and coordinate with partners (non-government partners such as NGOs, universities, foundations and companies), as well as to leverage existing U.S. government programs, principally with Department of Commerce, and the
Promoting Gender Equity for Prosperity GWBI was launched to promote the success of potential high growth, high impact women-owned enterprises to foster growth in GDP and jobs globally. The African Women’s Entrepreneurship Program (AWEP at AGOA) is an initiative developed to encourage women entrepreneurs in 38 AGOA countries, and their networks in Africa, to become part of their national and the global supplier network, and to advocate with the 38 AGOA ministers to promote more inclusive legislation and practices. The Pathways Women’s Certification Program, created in Lima, Peru, is a second key initiative created to certify and integrate women-owned businesses into the supply chains of major American corporations. The third initiative is the APEC Women’s Leadership Network, an annual event to be held in Tokyo this year, where U.S. delegation of women entrepreneurs, corporate executives, NGOS and academics join to support trade with APEC member nations.
Lorraine Hariton
Special Representative for Commercial and Business Affairs
Lorraine Hariton is the Special Representative for Commercial and Business Affairs, sworn in by Secretary Clinton on September 14, 2009. Her experience in innovation and entrepreneurship provides a unique perspective in addressing our global economic growth challenges. She is responsible for State Department outreach to the business community and commercial advocacy efforts. She works with the business community worldwide to ensure that commercial diplomacy efforts support U.S. foreign policy objectives. During her tenure, CBA has expanded cooperation and coordination with other trade promotion agencies and U.S. diplomatic posts overseas to support U.S. exporters and business interests in support of the President's National Export Initiative. Ms. Hariton has an M.B.A. from Harvard Business School and a B.S. in Mathematical Sciences from Stanford University.
