Global stocks fall despite stimulus measures

Global stock markets opened lower on July 6, 2012, as investors reacted negatively to stimulus efforts from major economies. European indices led declines, with Germany’s DAX dropping 0.5 percent to 6,506.09, France’s CAC-40 falling 0.4 percent to 3,217.54, and Britain’s FTSE 100 down 0.2 percent at 5,681.83. Wall Street futures also dipped, with Dow Jones futures off 0.1 percent at 12,823 and S&P 500 futures down 0.1 percent at 1,360.70. The European Central Bank’s interest rate cut and the Bank of England’s pledge to boost liquidity failed to reassure investors, who remained concerned about global economic weakness. China’s second rate cut in a month, while surprising, did little to lift markets, with some analysts viewing it as a signal of deeper economic trouble. John Higgins of Capital Economics warned that global equities and commodities would struggle amid weak growth and escalating euro-zone crisis risks. Asian markets mirrored the downward trend, with Japan’s Nikkei 225 falling 0.7 percent to 9,020.75 and Hong Kong’s Hang Seng slightly lower at 19,800.64. South Korea’s Kospi dropped 0.9 percent to 1,858.20, while Australia’s S&P/ASX 200 declined 0.3 percent to 4,157.80. China’s Shanghai Composite was the sole bright spot, rising 1 percent to 2,223.58, as analysts like Citigroup’s Minggao Shen predicted policy easing would support economic growth. The US June jobs report, due later on July 6, was expected to influence market sentiment further, with forecasts predicting 90,000 new jobs and an unchanged 8.2 percent unemployment rate. Meanwhile, oil prices fell, with August benchmark crude dropping $1.06 to $86.16 a barrel, and currencies remained stable, with the euro holding near $1.2382 and the dollar steady against the yen at 79.88. The previous day’s US market performance showed declines, with the Dow Jones down 0.4 percent at 12,896.67 and the S&P 500 falling 0.5 percent to 1,367.58. The Nasdaq composite remained flat at 2,976.12, reflecting broader market uncertainty as investors awaited clearer economic signals.