Financial stocks lead US markets lower

April 15th, 2008 - 7:50 am ICT by admin  

DPA
New York, April 15 (DPA) Stocks were pushed down by financial shares on Wall Street Monday after Wachovia Corp reported unexpected losses and said it was seeking a $7-billion cash infusion from stock sales. “The news out of Wachovia would suggest the environment has probably deteriorated faster in recent weeks, to a greater extent than people may have anticipated,” Jonathan Armitage, of Schroders Plc in New York told Bloomberg financial news.

Wachovia’s first quarter losses were $393 million compared with earnings of $2.3 billion in the same period last year, the fourth-largest US bank said in a statement.

Its shares fell 2.26 dollars, or 8.1 percent, to $25.55 per share. Citigroup shares also fell, dropping 85 cents to $22.51 a share, after Merrill Lynch analysts predicted the bank’s profits will be hurt by a weakening consumer financial market and slowdown in capital markets.

The blue-chip Dow Jones Industrial Average lost 23.36 points, or 0.2 percent, to 12,302.06. The broader Standard & Poor’s 500 Index slid 4.51 points, or 0.3 percent, to 1,328.32, and the technology- heavy Nasdaq Composite Index dipped 14.42 points, or 0.6 percent, to 2,275.82.

The US currency traded at 63.15 euro cents and 101.10 Japanese yen.
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