Global market update

Investors take profits on economic worries

Thursday, 29th July: European shares ended lower on Wednesday as an unexpected drop in US durable goods orders for a second consecutive month in June rekindled economic concerns and prompted investors to take some profit. Shares in industrials, food and retail companies, such as Siemens, Nestle and Carrefour, which had been performing strongly lately, were among the key decliners. Banks ended the day mixed.

US stocks also fell. A downbeat assessment of the economy from the Federal Reserve’s (Fed) Beige Book, which gives a summary of national economic conditions, dampened sentiment further. Homebuilders fell sharply a day after Meritage Homes reported a drop in sales following expiration of a federal homebuyer tax credit. Weak results from Boeing also disappointed investors.

Several Asian indices were down this morning. Notably, shares in companies exporting to the US declined.

• Investors take profits on economic worries ( 96 Kb pdf )

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