Market News Update Feb 8

Boeing was among the measure's worst performers, down 92 cents, or 1.6%, at 58.40, as concerns over fiscal instability in Greece, Portugal and Spain spooked investors worried about global demand and industrial stocks sank. The technology-heavy Nasdaq Composite rose 15.69, or 0.74%, to 2,141.12. It fell 6.23 points, or 0.29% over the week, also its fourth straight down week. Since the year's start, the Nasdaq is down 5.64%, the steepest percentage decline of all the major benchmark indexes. The Standard & Poor's 500 index gained 3.08 points, or 0.29%, to 1066.19 on Friday. The index dropped 7.68 points, or 0.72% over the week. It is down 4.39% year to date. The Dow traded below the key 10000 level for most of Friday, hitting an intra-day low of 9835 before a late rally starting around 3 p.m. brought the measure back into positive territory. Institutional buying, including index and hedge funds likely fueled the market's late rally. Stocks turned positive shortly after oil prices began to tick up, after a week of major drops, though crude oil prices still finished the week sharply lower.

European shares ended sharply lower again Friday, capping their worst week in nearly a year, as worries about the debt of countries such as Greece and Portugal lingered. The pan-European Dow Jones Stoxx 600 index declined 2.2% to 237.46. On Thursday it suffered its worst one-day fall in three months. Over the course of the week it registered its biggest loss since the week ended Feb. 13, 2009.  Of the markets at the heart of recent selling, Greece's ASE Composite index lost 3.7 % to 1,878.91, while Spain's Ibex 35 index declined 1% to 10,139.4. Portugal's PSI 20 index fell 1.4% to 7,341.56 after the Portuguese government Friday voted to lift spending. Banks have been under pressure this week and Banco Comercial Portugues declined 1.3%. BBVA, which was downgraded at Nomura to neutral from buy on perceived sovereign risk, fell 3.5%. In the major European regional markets the German DAX index declined 1.8% to 5,434.34, the U.K. FTSE 100 index closed down 1.5% to 5,060.92 and the French CAC-40 index lost 3.4% to 3,563.76. 

Asian stock markets tumbled Friday as heavy losses on Wall Street and heightened concerns over European sovereign debt prompted a sell-off across sectors. Several regional indexes finished the week at their lowest levels this year. Japan's Nikkei fell 2.9%--its biggest percentage drop in more than two months--closing barely above the psychologically key 10,000-point level, at 10,057.09. South Korea's Kospi lost 3.1%, Taiwan's Taiex sank 4.3% and China's Shanghai Composite fell 1.9%. Hong Kong's Hang Seng Index tumbled 3.3% to 19,665.08--its first finish below the 20,000-point level since September. Resources stocks were hit especially hard as a spike in risk aversion and renewed strength in the U.S. dollar dented commodities. Jiangxi Copper's Hong Kong-listed shares dropped 5.4% and Korea Zinc shrank 4.8%. In Tokyo, Pacific Metals gave up 3.6%, while among commodity-trading houses, Mitsui & Co. skidded 4.6%. 

Base metals on the London Metal Exchange ended lower Friday in a volatile session driven by the risk aversion roiling currency markets and a sharp selloff in crude oil. A mixed U.S. nonfarm payrolls report failed to give a clear direction to financial markets, and equity markets, crude oil and the EUR/USD began to slide again after an initial bounce. Crude's late afternoon tumble around 1620 GMT triggered another wave of long liquidation and fresh shorting in metals, said a trader in London. Copper fell to its lowest since mid-October, and finished down 1.6%. It ended the week 7% lower and down nearly 20% from the January high of $7,796 a metric ton. Zinc plunged near the close, falling 3% in less than 30 minutes. 

Crude oil futures fell sharply for the second day in a row Friday after breaking through a key support level that traders had been watching for a sign of whether the energy markets would continue to trend lower. The drop in crude prices spurred losses for other commodities, which worsened as the U.S. dollar gained strength. Crude futures, which had been little changed throughout the morning after the release of anxiously awaited U.S. jobs data, fell below their January low of $72.43, which triggered further selling that pushed the benchmark March contract below $70 for the first time since mid December. Light, sweet crude for March delivery settled down 2.7% at $71.19 on the New York Mercantile Exchange. Brent crude on the ICE futures exchange closed down 3.8% at $69.36 a barrel. Gold futures extended three-month lows in a follow-through to large declines the previous session as investors continued to move away from perceived riskier assets. Benchmark April gold fell $10.20, or 1%, to settle at $1,052.80 an ounce on the Comex division of the New York Mercantile Exchange. It dipped to an intraday low of $1,044.50, the contract's softest point since Oct. 30. Comex March silver lost 52 cents, or 3.4%, to settle at $14.830 an ounce.