Chipmakers lower in US, Tokyo

The New York markets fell in early afternoon trade on a group of downgrades among brokers and on comments by Federal Reserve chairman Ben Bernanke in testimony before Congress. The Dow Jones Industrial Average was 0.72 percent lower to 13,871, while the Nasdaq Composite dropped 1.02 percent and the S&P 500 fell 0.65 percent to 1,539.34. The top five brokers were downgraded to “sell” on continuing subprime mortgages trouble, sending their share prices lower. Homebuilders, some in the pharmaceuticals sector, internet search engines, and chipmakers also declined on the session.

European equities declined on the session. The FTSE Eurofirst 300 dropped 1.09 percent to 1,605.06. In Madrid, the IBEX fell 0.63 percent to 15,058.6, while the Paris CAC-40 was 1.69 percent lower to 5,995.97 and the Dax dropped 1.8 percent to 7,893.61 in Frankfurt. Carmakers saw the biggest declines, while hotels and industrial gases groups were also lower. The pharmaceuticals sector was mixed, while drinks makers and property developers and investors saw gains.

In London the FTSE 100 dropped 1.38 percent to 6,567.1, while the FTSE 250 was 0.64 percent lower to 11,726. Utilities were higher on broker comments, while pubs operators and brewers also saw gains. Miners were the big losers of the day, while other commodities-related groups and retailers were also lower.

Most Asia-Pacific equities markets were lower again on Wednesday. India’s Sensex index was an exception, but it only added 0.07 percent to 15,301.17. In Australia, the Sydney Ordinaries dropped 0.79 percent to 6,367.2, while the Hang Seng index in Hong Kong fell 0.93 percent to 22,841.92 and the Straits Times index in Singapore was 1.68 percent lower to 3,583.9.

In Tokyo, the Nikkei 225 and the Topix index each dropped 1.1 percent, to 18,015.58 and 1,758.65 respectively. In domestically-focused sectors retailers and utilities saw declines. Among exporters, chipmakers and the electronics sectors were both lower on the day.

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