Europe, Asia markets mixed

In China on Tuesday both the Shanghai Composite and the Shenzhen Composite closed at new record highs on the session, with the Shanghai up 0.9 percent to 4,110.38 and the Shenzhen 1.4 percent higher to 1,198.41. The gains were due to advances among real estate developers that came on housing demand and expectations that the Chinese currency will strengthen, and despite last week’s efforts by the government to calm the market by raising interest rates and reserve requirements. Even with the record highs, however, gains on the Chinese indices were limited by declines in foreign denominated “B” shares as investors took profits. Shanghai’s “B” shares dropped 6.9 percent, while “B” shares on the Shenzhen fell 1.5 percent.

Other Asian and Pacific equities markets were mixed on Tuesday. In Australia, the Sydney Ordinaries were 0.35 percent lower to 6,350.2, while the Hang Seng Index in Hong Kong dropped 0.4 percent to 20,843.92. Gainers on the day included India’s Sensex, which added 0.24 percent to 14,453.72, and the Straits Times index in Singapore, which was 0.72 percent higher to 3,539.82. In Tokyo, the Nikkei 225 added 0.7 percent to 17,680.05, while the Topix gained 1.2 percent to close at 1,731.54. In addition, the Mothers market of small-and mid-cap stocks was up 4.5 percent to 843.46, although it remained near record lows. In Tokyo, the electronics sector gained on operating profits forecasts. Forecasts also helped the baking sector, while the pharmaceuticals sector gained on hopes that it will benefit from the findings that another company’s diabetes drug has the potential to cause heart problems.

European equities markets were mixed as well. While the Dax in Frankfurt ended the session 0.53 percent higher to 7,659,39 and the Paris CAC-40 closed virtually even at 6.089.72, the Eurofirst 300 dropped 0.03 percent to 1,597.6. London markets were also lower, with the FTSE 100 down 0.46 percent to 6,606.6 and the FTSE 250 falling 0.21 percent to 12, 176.3. Carmakers and the steel sector were mixed and the utilities sector saw declines. There were gains among semiconductors manufacturers. In London, the banking sector saw gains, as did the telecommunications sector, while retail, airlines, and the pharmaceuticals sector all saw declines on the session.

The New York equities markets were lower at midday, with the Dow Jones Industrial Average and the Nasdaq composite each down 0.1 percent, to 13,535.16 and 2,576.16 respectively. The S&P 500 had dropped 0.2 percent to 1,522.57. Gains came in the gambling and casinos sector after Kirk Kirkorian said his investment company is in talks with MGM Mirage (NYSE: MGM) about purchasing its Bellagio Hotel and CityCenter properties. There were declines in the oil and energy sectors on sale news, and the retail sector also saw losses.

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