Monday, the US stock markets tumbled to 12-year lows despite a rebound by financial stocks and a batch of merger news. Further the comments from billionaire Warren Buffet on the economy also fueled to the negative sentiments of the markets. He remains confident in long-term potential of U.S. economy, but near-term prospects remain challenged. He also said that the nation will likely face higher unemployment and eventually inflation because of the current economic crisis.
Among the M&A news, Merck and Schering-Plough announced they will merge their companies. Merck is proposing to pay Schering-Plough shareholders 0.5767 shares of MRK and $10.50 in cash for each share of SGP and the deal is valued at $41.1 billion. Merck will become the second biggest drugmaker in the US after the merger.
Further the reports that the World Bank has forecast a global contraction this year for the first time in more than 60 years also fueled the negative sentiments over the weekend.
The Dow Jones Industrial Average (DJIA) dropped by 79.89 points to close at 6,547.05. The NASDAQ Composite (RIXF) index decreased by 25.21 points to close at 1,268.64 and the S&P 500 (SPX) fell by 6.85 points to close at 676.53.
Among the Dow’s 30 components, 16 of its components ended in red mainly led by the stocks like Merck & Co., AT&T, Verizon Communication down by 7.70%, 3.81% and 4.3% respectively. However, Bank of America, General Motors, American Express and Alcoa led the Dow’s advancing stocks up by 19.43%, 15.86%, 3.70% and 3.26% respectively.
US light crude oil for April delivery grew by $1.55 to settle at $47.07 a barrel on the New York Mercantile Exchange. The crude oil rose on speculation that the OPEC will further slash output when it meets March 15.
Today major stock markets in Asia are trading mostly higher. Hong Kong stocks led the region''s modest advance while Japanese shares tumbled amid ongoing worries about the global slowdown. Hang Seng is higher by 353.36 points to 11,697.94, Shanghai composite is also up by 13.04 points at 2,131.78. Further, South Korea''s Seoul Composite gained 19.57 points at 1,091.30 and Singapore''s Strait Times is up by 14.50 points at 1,471.45. However, Japan''s Nikkei is slightly lower by 1.14 points to 7,084.89.
Among the M&A news, Merck and Schering-Plough announced they will merge their companies. Merck is proposing to pay Schering-Plough shareholders 0.5767 shares of MRK and $10.50 in cash for each share of SGP and the deal is valued at $41.1 billion. Merck will become the second biggest drugmaker in the US after the merger.
Further the reports that the World Bank has forecast a global contraction this year for the first time in more than 60 years also fueled the negative sentiments over the weekend.
The Dow Jones Industrial Average (DJIA) dropped by 79.89 points to close at 6,547.05. The NASDAQ Composite (RIXF) index decreased by 25.21 points to close at 1,268.64 and the S&P 500 (SPX) fell by 6.85 points to close at 676.53.
Among the Dow’s 30 components, 16 of its components ended in red mainly led by the stocks like Merck & Co., AT&T, Verizon Communication down by 7.70%, 3.81% and 4.3% respectively. However, Bank of America, General Motors, American Express and Alcoa led the Dow’s advancing stocks up by 19.43%, 15.86%, 3.70% and 3.26% respectively.
US light crude oil for April delivery grew by $1.55 to settle at $47.07 a barrel on the New York Mercantile Exchange. The crude oil rose on speculation that the OPEC will further slash output when it meets March 15.
Today major stock markets in Asia are trading mostly higher. Hong Kong stocks led the region''s modest advance while Japanese shares tumbled amid ongoing worries about the global slowdown. Hang Seng is higher by 353.36 points to 11,697.94, Shanghai composite is also up by 13.04 points at 2,131.78. Further, South Korea''s Seoul Composite gained 19.57 points at 1,091.30 and Singapore''s Strait Times is up by 14.50 points at 1,471.45. However, Japan''s Nikkei is slightly lower by 1.14 points to 7,084.89.
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