LONDON, 21 October 2004 — The dollar came under renewed pressure here yesterday as the euro took advantage of lingering concerns about the health of the US recovery and soared above the 1.26-dollar level for the first time in eight months. The single European currency in late-day trade was at 1.2613 dollars against 1.2514 late in the day Tuesday in New York. The dollar was meanwhile trading at 108.20 yen after 108.28 on Tuesday.
US blue chips were down yesterday on a sharp rise in oil prices after oil inventories rose less than expected and a few Dow components disappointed investors with their earnings and outlooks.
Honeywell International Inc., the diversified manufacturer, forecast fourth-quarter earnings below most analysts’ expectations. Its shares fell $1.33 to $34.10, weighing on the Dow.
J.P. Morgan Chase & Co., another Dow component and the No. 2 US bank, slid after it said profit fell in the third quarter. It was trading down 2.2 percent at $37.17.
The Dow Jones industrial average was down 18.14 points, or 0.18 percent, at 9,879.70. The Standard & Poor’s 500 Index was down 0.56 of a point, or 0.05 percent, at 1,102.73. The technology-laced NASDAQ Composite Index was up 9.34 points, or 0.49 percent, at 1,932.24.
Asian share markets closed sharply lower yesterday, reversing all and more than Tuesday’s gains as investor confidence faltered badly in the face of continued high oil prices and increasing concerns over their impact on the global economy, dealers said in Tokyo.
Japanese share prices closed 1.65 percent lower as cautious investors waited for more Japanese and US corporate results and crucial Chinese economic data due out Friday, dealers said.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 182.68 points to 10,882.18. The broader TOPIX index of all First Section shares fell 14.71 points or 1.33 percent to 1,093.94.
South Korean share prices closed sharply lower, dropping 3.17 percent after a two-day rebound as foreign investors continued to sell large-cap stocks following weakness overnight on Wall Street, dealers said. The KOSPI index closed down 27.16 points at 828.61 on volume of 377 million shares worth 2.2 trillion won ($1.9 billion).
Hong Kong share prices closed 1.18 percent lower as declines in major regional bourses and falls on Wall Street overnight undermined investor sentiment, dealers said. The key Hang Seng Index lost 155.42 points at 12,999.13, off a low of 12,954.87 as support kicked in at the key 13,000 points level.