The Dow Jones industrial average was down 84.73 points, or 0.74 percent, in early trading, at 11,434.12. The Standard and Poor’s 500-stock index, seen as a more complete barometer of the overall market, was down 10.3 points, or 0.85 percent, at 1,196.95. The Nasdaq composite index was down 0.25 percent.
The euro also gave up some of its recent gains against the dollar. It was down 0.5 percent at $1.3713.
Before markets opened in New York, JPMorgan Chase said third quarter income fell 4 percent on weaker investment banking and trading results and a loss in its private equity division. The bank also set aside $1 billion for litigation tied to poorly-written mortgage loans and securities. Earnings per share were $1.02, while analysts surveyed by FactSet forecast the bank would earn 91 cents per share.
Adding to pressure on stocks was news that China’s trade surplus narrowed for a second straight month in September, suggesting further cooling in the Chinese and global economies. The country’s trade surplus fell to $17.8 billion in August, well below July’s 30-month high of $31.5 billion, largely on the back of lower export growth — a sign that the stalling global economic recovery is could weigh on China’s elevated economic growth.
In Europe, Britain’s FTSE 100 fell 0.9 percent, while Germany’s DAX slipped 1.2. France’s CAC 40 was 1 percent lower.
Stocks have been buoyed this week as euro zone officials have indicated they are willing to take decisive action to resolve their sovereign debt crisis, such as larger write-downs on Greek debt and a push to make banks strengthen their capital against resulting losses.
New steps are seen as positive for stocks because a disorderly default by Greece and resulting losses to banks on its government bonds could cause a wider banking crisis, choking off credit to the wider economy and causing a recession.
But key details are lacking as officials rush to put their plans together ahead of a European summit 10 days from now and a Group of 20 summit of rich and developing countries in early November.
“The period of good feelings may well be drawing to a close,” said Stephen Lewis at Monument Securities in London. “This is because the tight timetable that the November G20 meeting imposes will leave little more time to settle intractable problems. Devising a ‘roadmap’, that is, an analysis of what needs to be done, is the easy part. To come up with viable measures will be more difficult.”
Attention later will also be centered on the next batch of earnings due, including Google. So far, the earnings released, from the likes of Alcoa and PepsiCo have presented investors with mixed news about the world’s largest economy.
News of the European proposals sketched out by European Commission president José Manuel Barroso on Wednesday helped Asian shares overnight. Japan’s Nikkei 225 index climbed 1 percent to 8,823.25. Hong Kong’s Hang Seng jumped 2.3 percent to 18,757.81 and South Korea’s Kospi index rose 0.8 percent to 1,823.10.
Australia’s SP/ASX 200 gained 1 percent to 4,244.50. The Shanghai Composite Index advanced 0.8 percent to 2,438.79.
Oil prices meanwhile tracked European equities lower — benchmark oil for November delivery was down $1.48 to $84.09 per barrel in electronic trading on the New York Mercantile Exchange.
Article source: http://feeds.nytimes.com/click.phdo?i=ac1a4d9ed46f38aa4d6cef9125eca6d8
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