U.S. stocks decline after the open in thin trade; Dow Jones down 0.39%
Investing.com
Published Dec 27, 2010 10:13AM ET
During early U.S. trade, the Dow Jones Industrial Average slumped 0.39%; the S&P 500 index fell 0.26%, while the Nasdaq Composite index tumbled 0.83%.
On Saturday, the People’s Bank of China raised its benchmark deposit and lending rates by 25 basis points for the second time since mid-October. The unexpected move was aimed at curbing inflation, which surged to a 28-month high of 5.1% in November.
Shares in the financial sector were mixed. Bank of America saw shares jump 1.45%, shares in rivals JP Morgan-Chase added 0.57%, while U.S. listed shares of Spain’s largest lender Banco Santander tumbled 2.16% as concerns over the fiscal health of peripheral euro zone nations remained in focus.
Meanwhile, shares in the airline sector were broadly lower after a major snowstorm in the U.S. Northeast resulted in the grounding of hundreds of flights across the U.S. on Monday.
Shares in US Airways slumped 0.81%, Alaska Air Group saw shares tumble 1.95%, while shares in the world’s largest online travel company Expedia plunged 3.19%.
Meanwhile, shares in the commodity sector performed poorly following China’s second interest-rate increase in ten weeks.
Shares in the biggest U.S. aluminum producer Alcoa plunged 1.56%, U.S. listed shares of the world’s largest mining group BHP Billiton tumbled 1.55%, while metal producer Freeport McMoran Copper & Gold saw shares slump 0.61%.
Elsewhere, shares in the largest U.S. tax-preparation company H&R Block tumbled 8.83% after it said late Friday that HSBC Holdings ended their long-term tax-return contract after a federal regulator told HSBC to stop offering refund anticipation loans. Shares in HSBC were down 0.93% following the news.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.49%, France’s CAC 40 plunged 1.15%, Germany's DAX slumped 1.29%, while Britain's FTSE 100 was closed due to holiday.
With markets in London closed until Wednesday and many investors already away on year-end leave, trading volumes were low, resulting in volatile trade.
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Written By: Investing.com
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