- CNTV English - CCTV News

Homepage > News > Biz >

Wall Street snaps 3-day rally, European debt woes remain

08-17-2011 10:25 BJT

NEW YORK, Aug. 16 (Xinhua) -- Wall Street ended a choppy session in the red after three straight gains as comments from German and French leaders failed to ease market concerns over European debt woes.

In a press conference after their emergency meeting, German Chancellor Angela Merkel and French President Nicolas Sarkozy on Tuesday detailed plans for closer euro zone integration. However, it failed to boost market confidence as they didn't mention any plan to increase the size of euro zone's rescue fund or begin sales of euro bonds.

Investors felt disappointed at the outcomes as they were expecting some concrete plans to stem the debt problems spreading to more euro zone countries. As a result, financials took a heavy blow and dropped the most in S&P 500 big-cap sectors, as financial shares were seen as vulnerable to a European fiscal crisis,

Meanwhile, stocks were under pressure as data showed Germany's GDP increased by only 0.1 percent in the second quarter this year after a revised 1.3 percent jump from the previous quarter, spurring fears that the biggest economy in Europe may be losing some momentum.

Limiting some losses, investors felt a little bit relieved after Fitch Ratings Tuesday affirmed its AAA debt rating on the United States, citing the key pillars of the country' s creditworthiness remains intact.

The rating agency also put the outlook of U.S. debt rating at stable. Fitch' s affirmation came after a similar decision by its rival Moody' s Investors Service, making Standard & Poor's the only one in the three major international rating agencies to downgrade U.S. debt rating.

Some analysts believed that as the downgrade aftermath fades away, economic data will be even critical for future market performance.

On corporate news front, Wal-Mart Stores said on Tuesday that its second-quarter profit rose 5.7 percent as its increasing international sales and cost cutting could contribute to offsetting continuing sales decline at the retail stores in the United States.

According to the data, the world's largest retailer reported its net income of 3.8 billion dollars in the three months ended July 31, or 1.09 dollars a share, compared with 3.6 billion dollars, or 97 cents a share for the previous year.

As of Tuesday's close, the Dow Jones industrial average dropped 76.97 points, or 0.67 percent, to 11,405.93. The Standard &Poor' s 500 was down 11.73 points, or 0.97 percent, to 1,192.76. The Nasdaq Composite Index declined 31.75 points, or 1.24 percent,to 2, 523.45.

In other markets, the U.S. dollar traded mixed against major currencies in late New York trading while crude prices slipped on lingering European debt concerns.

Light, sweet crude for September delivery fell 1.23 dollars, or 1.40 percent, to 86.65 dollars a barrel on the New York Mercantile Exchange.

Editor:Wang Xiaomei |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program