Shares drift as US indexes pull back from highs

Written By Unknown on Selasa, 08 Juli 2014 | 22.27

LONDON — Stock markets fell Tuesday as U.S. indexes pulled back from record highs ahead of the start of the quarterly U.S. corporate earnings reporting season.

Over the coming weeks, earnings will feature large in investors' thoughts as they try to gauge the state of the U.S. economy. Aluminum company Alcoa unofficially kicks the latest earnings season off later with its second quarter results.

"The focus will be on whether US companies can manage a bounce back from the first quarter, mirroring the shift in economic news," said David Madden, market analyst at IG.

In Europe, France's CAC-40 was down 1.2 percent at 4,353 while Germany's DAX dropped 1 percent to 9,808. Britain's FTSE 100 fell 1 percent, to 6,756.

In the U.S., the Dow Jones industrial average was 0.7 percent lower at 16,904 while the broader S&P 500 index fell 0.6 percent to 1,966.

Earlier in Asia, Japan's Nikkei 225 index tracked Wall Street's previous day's declines, slipping 0.4 percent to 15,314.41 despite fresh data showing the current account surplus was larger than expected in May. South Korea's Kospi regained lost ground, rising 0.1 percent to 2,006.66. Hong Kong's Hang Seng ended flat at 23,541.38.

As well as awaiting U.S. earnings this week, investors will be interested to see the latest Chinese inflation figures on Wednesday.


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