Karen Wuertz (312) 781-1335, firstname.lastname@example.org
Larry Dyekman (312) 781-1372, email@example.com
Laurie Bischel, (312) 648-8698, Laurie.Bischel@cmegroup.com
By JODI RUDOREN and RICK GLADSTONE
Israel's unity government unraveled on Tuesday when the head of the centrist Kadima Party, Shaul Mofaz, said he was withdrawing over a proposed universal draft law.
By BINYAMIN APPELBAUM
Ben S. Bernanke, the Federal Reserve chairman, said the Fed was seeking greater clarity on the health of the recovery as it weighed the need for a new round of economic stimulus.
By MARK SCOTT
Speaking before British lawmakers on Tuesday, Mervyn A. King, governor of the Bank of England, said the New York Fed did not raise concerns about the rigging of interest rates.
By ISABEL KERSHNER
The action comes as street battles rage between rebels and government forces in the Syrian capital, Damascus.
By NEIL MacFARQUHAR and DALAL MAWAD
Fighting between the Syrian army and rebels near the capital's center extended into a third day, overshadowing diplomatic efforts to end the conflict.
At War Blog
By C. J. CHIVERS
Inside the arms market for Syrian rebels, where demand is intense and prices are high.
|ADVFN III||Evening Euro Markets Bulletin|
|London Market Report|
| London close: Stocks slip as Bernanke disappoints|
- No hints from Bernanke for QE3
- German ZEW index falls for third straight month
- G4S tumbles on Olympics contract; CSR rockets after disposal, cash return
With Ben Bernanke quashing hopes of further near-term stimulus in the US, global stock markets took a hit on Monday afternoon, sending the Footsie lower for the third straight business day.
Speaking as part of the Federal Reserve's semi-annual monetary policy report, Chairman Bernanke said that the central bank is "prepared to take further action as appropriate" - more or less in line with his comments in the past. Alpari analyst Craig Erlam said: "These words are becoming as empty as promises from the Eurozone leaders."
"Ben Bernanke showed today that he can still surprise the markets by doing nothing. The markets appeared to have priced in further QE leading up to the testimony," Erlam said.
Also dampening the mood today was the German Zew economic sentiment index which fell by 2.7 points to -19.6 in July, the third monthly decline in a row. "Besides the weak demand from the Eurozone for German exports, the German economy is also burdened by weakening growth dynamics in other important partner countries," said ZEW President Wolfgang Franz.
In domestic news, UK inflation fell in June to its lowest level since November 2008. The annual rise in the Consumer Prices Index (CPI) eased to 2.4% in June from 2.8% in May, surprising the economist community, where the consensus forecast was for no change. The Bank of England's target level is 2.0%.
FTSE 100: G4S continues to take a beating
The share price of security solutions group G4S
continues to battered by the Olympics contract debacle, with the
company admitting yesterday that it expects to take a £35-50m hit after
failing to deliver as many workers as it had promised to. Today, the
stock, down nearly 6%, was being weighed down by ratings cuts from both
Bank of America Merrill Lynch and Deutsche Bank.
|Europe Market Report|
| Europe close: Alcatel Lucent plunges, markets down|
- European markets down
- Bernanke hints at no more stimulus
- Alcatel-Lucent plunges on poor second quarter
Stoxx 600: -0.25%
Cac 40: -0.09%
Ibex 35: +0.40%
FTSE MIB: -0.94%
European stocks traded mostly down on Tuesday as investors reacted to comments from the Chairman of the Federal Reserve, Ben Bernanke, suggesting more monetary stimulus was unlikely in the short - term.
The benchmark Stoxx Europe 600 index has climbed 9.77% since its low of June 4th but the market has still been hoping the US central bank might inject more money into the world's biggest economy through quantitative easing.
Speaking before Congress Bernanke said that the Fed was prepared "to promote a stronger economic recovery" but didn't elaborate on how that might be achieved. Investors have taken his words to mean "no stimulus in the near term".
The giant French telecoms equipment maker, Alcatel Lucent, had plunged a worrying 20% by the close in Paris after revealing a loss for the second quarter of the year. Over the last 12 months the stock has declined 75%.
In Spain, stricken lender Bankia plunged 13.5% by the close after the Spanish government said it could take until the end of the year to inject new capital into what is now a nationalised bank.
On the Stoxx Europe 600 the strongest sector was chemicals, which gained 0.57%. Technology stocks were the weakest, with the sector falling 1.35%.
The euro was down 0.28% against the dollar at 17:06 London time at $1.2237.
Front month futures contracts on a barrel of Brent crude had risen 0.09% by 16:52 to stand at $103.46.