Global markets update: US, European stocks slip on worries about banking system


US stocks slipped on Tuesday on worries about the banking system after  Moody’s cut the credit ratings for 10 smaller and midsized lenders.

The S&P 500 fell 19.06, or 0.4%, at 4,499.38. The Dow Jones Industrial Average dropped 158.64, or 0.4%, at 35,314.49. The Nasdaq composite shed 110.07, or 0.8%, at 13,884.32.

The ratings agency cited several concerns about their financial strength, from the effects of higher interest rates to the work-from-home trend that’s leaving office buildings vacant.

Shares of Beyond Meat tumbled 14.3% after its revenue weakened more than analysts’ forecast.

IT company Palantir Technologies fell 5.3% after releasing its quarter results.

The yield on the 10-year treasury fell to 4.02% from 4.10% on Monday. The 2-year treasury yield slipped to 4.75% from 4.79%.


The US dollar rose to 143.39 Japanese yen from 142.44. The euro slipped at $1.0960 from $1.1007.


European stocks dropped on Tuesday after Italian government approved a 40% windfall tax on lenders. 

The pan-European STOXX 600 index lost 0.2%. 

Italy’s FTSE MIB tumbled 2.1% to hit four-week lows.

Britain’s FTSE 100 fell 0.4% at 7,527.42. Germany’s DAX dipped 1.1% at 15,774.93. France’s CAC 40 was down 0.7% at 7,269.47.Italian banks such as Intesa Sanpaolo, Banco BPM and UniCredit shed between 5% and 9.1%.

Danish drugmaker Novo Nordisk rose 17.3% to a record high, after it said a large study had shown its obesity treatment Wegovy also had a clear cardiovascular benefit. 


In Asia, Hong Kong’s Hang Seng index fell 1.8% at 19,184.17. China’s Shanghai Composite was down 0.3% at 3,260.62.

Japan’s Nikkei 225 added 0.4% at 32,377.29.

Australia’s S&P/ASX 200 index closed flat at 7311.1 points. New Zealand’s benchmark S&P/NZX 50 index lost 0.5% at 11,868.8 points.

Energy prices

Brent crude for October delivery added 83 cents at $86.17 a barrel on Tuesday. The US crude oil benchmark for September delivery gained 98 cents to $82.92 a barrel. 

Natural gas for September delivery rose 5 cents at $2.78 per 1,000 cubic feet.


Gold for December delivery lost $10.10 at $1,959.90 an ounce. Silver for September delivery fell 42 cents at $22.81 an ounce.

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Updated: 09 Aug 2023, 02:47 AM IST

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