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Markets slip after bank earnings reports

Source : AP
Last Updated: Fri, Oct 12, 2012 16:48 hrs

Financial markets slipped on Friday, as disappointing earnings from Wells Fargo bank offset brighter figures from JP Morgan Chase & Co. and a strong U.S. consumer confidence survey.

JP Morgan, the biggest U.S. bank by assets, reported a record quarterly profit of $5.7 billion for the July-to-September period, up 34 percent from the same period a year ago. Earnings were $1.40 per share, far exceeding the $1.21 consensus in the markets.

Meanwhile, the University of Michigan reported that its main index of consumer confidence spiked to a five-year high of 83.1 in October from 78.3 last month.

But revenue gains reported by Wells Fargo were below investors' expectations, pushing stock markets back down by the time European exchanges closed.

The FTSE 100 index of leading British shares fell 0.6 percent to 5,793.32 while Germany's DAX lost 0.7 percent at 7,232.49. The CAC-40 in France shed 0.7 percent to 3,389.08.

In the U.S., the Dow Jones industrial average was down 0.1 percent at 13,315 while the broader S&P 500 index fell 0.4 percent to 1,427, putting Wall Street on track to suffer its worst week since early June.

Trading was also subdued in other markets, with the euro up 0.1 percent at $1.2944 and the benchmark oil price 50 cents lower at $91.57 a barrel.

Earlier in Asia, trading was also confined to narrow ranges.

Japan's Nikkei 225 index ended a bad week with another 0.2 percent decline to 8,534.12. Telephone company Softbank led the way lower after it plunged 16.9 percent on news that it is in talks to take a substantial stake in U.S. carrier Sprint Nextel Corp.

Hong Kong's Hang Seng advanced 0.7 percent to 21,136.43 and South Korea's Kospi was flat at 1,933.26.




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