US markets pullback on debt concerns

  • US markets again finished on a weaker note as continued European Sovereign debt concerns and a lack of progress in regards to the raising of the US debt ceiling saw the Dow pull back to its lowest level since June 29
  • More scrutiny has been heaped on the recent European bank stress tests with regulators failing to take into account a potential Greek default scenario
  • Financial stocks continue to be hit hard with European and US banking stocks falling heavily overnight. BAC was the worst performing stock on the Dow falling by 2.8%, followed by Morgan Stanley, Wells Fargo and Goldman Sachs falling by 1.9%, 1.1% and 0.6% respectively
  • Gold stocks rallied after the precious metal broke through USD1600.00 per 
    ounce overnight. AngloGold and Newmont rallied 3.2% and 1.2%
  • Apple rallied 2.4% on a bullish earnings preview ahead of tomorrows report
  • The biggest movers on the Dow were BAC, BA, TRV and AA falling by 2.80%, 2.43%, 2.38% and 2.00% respectively
  • USD was stronger against the EUR as the validity of the stress tests were put into question. GBP pushed higher overnight and the AUD fell back below 1.0650 as investors price in a potential cut in interest rates going forward
  • Gold made a record high of USD1607.32 and Crude fell 1.1% to USD96.15
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