US equities markets mixed at mid-afternoon

Equities markets in the Asia Pacific region were mixed on Monday. In India, the Sensex dropped 4.72 percent to 12,455.37, losing 616.73 points on the session. The declines there came in the wake of a surprise interest rate hike, up 25 basis points to 7.75 percent, instituted by the Reserve Bank of India on Friday night. Banks, carmakers, and the real estate sector were especially hard hit by the news. Interest rate worries also sent Australian equities markets lower. With most analysts expecting a rate hike when the Reserve Bank of Australia meets Tuesday, the Sydney Ordinaries dropped 1.18 percent to 5,908.2, a decline of 70.6 points. The S&P/ASX200 index fell 79.2 points to 5,915.8. On the other hand, the Hang Seng index in Hong Kong added 0.04 percent to 19,809.7, while in Singapore the Straits Times index gained 0.71 percent to 3,238.73.

The equities markets were lower in Tokyo after a new Tankan survey from the Bank of Japan showed that business confidence in Japan has declined. The Nikkei 225 dropped 1.5 percent to 17,028.41 after falling below the 17,000 level at one point during the session. The Topix index fell even further, closing 1.8 percent lower, to 1,683.49. The steel sector saw significant declines, while decreased forecasts hurt the electronics and logistics sectors.

In Europe, the markets were higher on the session. The FTSE Eurofirst 300 and the Xetra Dax each added 0.29 percent, to 1,519.98 and 6,937.17 respectively, while the CAC-40 was 0.2 percent higher in Paris, to 5,645.56. Airlines were higher on bids news on hopes of further bids for Spanish carrier Iberia (IBEX-35: IBLA) after a private equity bid from Texas Pacific Group came in under Iberia’s current share price, and Alitalia (ISE: AZA10) benefited from a statement from the head of investment banking at Unicredit (ISE: UC; FWB: CRI) that the consortium it was involved in with Russian air carrier Aeroflot (MOS: AFLT) could be interested in adding another European carrier. Elsewhere, the telecommunications sector was up on the prospect of competing bids for Telecom Italia’s (ISE: TIT; NYSE: TI) parent company, Olimpia.

London saw gains as well, with the FTSE 100 up 0.12 percent to 6,315.5 and the FTSE 250 adding 0.6 percent to 11,759.9. Declining metals prices took the mining sector lower. The oil sector was also lower on the session. Brewer Scottish & Newcastle (LSE: SCTN) saw losses after bids rumors began to lose their luster.

By mid-afternoon in New York, Wall Street was mixed. The Dow Jones Industrial Average was barely in positive territory but still down 0.8 percent for the year so far at 12,357.76 and the S&P 500 was 0.1 percent higher to 1,421.67, but the Nasdaq Composite had dropped 0.3 percent to 2,413.65. Merger activity was in focus. Tribune Media Group (NSYE: TRB), owner of the Los Angeles Times and the Chicago Tribue as well as a number of television stations accepted an $8.2 billion offer from Chicago real estate investor Sam Zell. First Data (NYSE: FDC), a credit card and payment company was purchased by private equity firm Kohlberg Kravis Roberts for $29 billion, or $34 per share. In the airlines sector, meanwhile, AirTran Holdings (NYSE: AAI) raised its offer for Midwest Air Group (AMEX: MEH) to $15 per share.

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