DAX Was Flat While The FTSE Lost 0.83%
Keagan York | Dec 03, 2013 05:34AM ET
The Australian Treasurer, Joe Hockey, has blocked a $2 billion deal that would have seen the grain handler, Graincorp, acquired by Illinois based Archer-Daniels- Midland. The Treasurer blocked the deal on the grounds of national interest and it is the first time that a U.S. company has been blocked from buying Australian assets. The rejection was the third largest on record after Royal Dutch Shell's AUD 6.5 billion bid for Woodside and Singapore Exchange's AUD 8.4 billion bid for the ASX.
Meanwhile, in the United States, manufacturing gained more than expected at the highest rate in more than two years in the month of November. The figures indicate that factories will contribute to economic strength in the new year. The Institute of Supply Management's index rose to 57.3 and well above the median forecast of 55.1. Export orders rose which reflects a general pick up in the global economy while a recovery in the housing market saw demand for construction equipment, appliances and furniture rise.
U.S. equity markets have lost ground in the final hour of trade with telecommunication and consumer goods companies leading the fall. Better than expected manufacturing data has also fuelled more speculation of an earlier than expected tapering of stimulus from the Federal Reserve. The Dow Jones Industrial Average recorded its worst day in more than a month after losing 0.48%. The S&P 500 fell 0.27% to 1,800.90. Earlier in Europe, the DAX was flat while the FTSE lost 0.83%.
Commodity prices were barley moved with the major indexes steady. WTI gained ground by rising 1.25% to $93.90 on the back of the better than expected U.S. data releases. Precious metals fell in re-sponse to the good data with gold losing 2.45% to $1,220 while silver plunged 4.31% to $19.20. Cop-per lost 1%. Agricultural commodities were mostly lower led by falls in oats and soybean.
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