Japanese stocks declined for the first time in four days after the U.S. Federal Reserve cut its forecast for growth in the world’s biggest economy.
Kyocera Corp. (6971), a maker of solar panels which gets more than 20 percent of its sales in the U.S., declined 1.7 percent. Nippon Electric Glass Co., which makes glass for liquid-crystal displays, fell for a second day after Macquarie Group Ltd. cut its rating to “underperform.” Isuzu Motors Ltd. (7202) and Suzuki Motor Corp. (7269), automakers that had delayed earnings forecasts because of damage from March’s earthquake, climbed after saying profit will rise this year.European stocks sank, falling to their lowest level since March, as banks led a selloff after Federal Reserve Chairman Ben S. Bernanke cut his growth forecast for the world’s largest economy.
Banco Bilbao Vizcaya Argentaria SA (BBVA) led a gauge of banks to its biggest drop in four months. Bayer AG (BAYN) slumped the most in more than two years after a rival to its Xarelto blood thinner outperformed the traditional treatment in a study. Mediaset SpA (MS), the broadcaster controlled by Italian Prime Minister Silvio Berlusconi, sank 6.7 percent after forecasting that advertising will decline.The Fed on Wednesday reiterated a pledge to keep interest rates near zero and said it will complete a $600 billion bond- purchase program as scheduled this month, even as Bernanke said the recovery is progressing “more slowly” than expected. Officials at the central bank lowered their predictions for U.S. growth and employment this year and next.U.S. reports today showed that sales of new homes declined in May for the first time in three months and more Americans than forecast filed first-time claims for unemployment insurance last week.
European services and manufacturing growth slowed in June more than economists had forecast, adding to signs that the economy is losing momentum. A composite index based on a survey of euro-area purchasing managers in both industries fell to 53.6 from 55.8 in May, London-based Markit Economics said.
European Union leaders began a two-day summit in Brussels today to discuss Greece’s financing needs as the nation attempts to avert a default. European Central Bank President Jean-Claude Trichet yesterday said danger signals for financial stability in the euro area are flashing red as the debt crisis threatens to infect banks.
U.S. stocks pared losses following a report that Greece had reached an agreement with the European Union and International Monetary Fund regarding a five-year austerity plan.
Greece has concluded talks with European Union and International Monetary Fund inspectors on its five-year austerity plan and will put the legislation to parliament next week, its government spokesman said on Thursday.The Standard & Poor’s 500 Index slipped 0.9 percent to 1,275.08 at 3:06 p.m. in New York after tumbling as much as 1.9 percent earlier. The Dow Jones Industrial Average fell 131.35 points, or 1.1 percent, to 11,978.32. Reuters reported that the Greek government had reached the agreement with the IMF and EU, citing sources.