Apr 26, 2016 12:10 AM

Markets Right Now: Oil drop, weak earnings weigh on stocks

The Associated Press

NEW YORK (AP) The Latest on financial markets (all times local):

12:00 a.m.

Asian stock markets are falling Tuesday ahead of U.S. Federal Reserve and Bank of Japan policy meetings, as commodity prices run out of steam, dragging on big miners.

Japan's Nikkei 225 fell 1.1 percent to 17,253.54 and South Korea's Kospi was down less than 0.1 percent at 2,014.15. Hong Kong's Hang Seng index dropped 0.8 percent to 21,131.45 and Australia's S&P/ASX 200 dropped 0.2 percent to 5,286.90. The Shanghai Composite index lost 0.3 percent to 2,938.52

"After a brief pause, share market volatility is set to resume this week as central bank meetings, important economic releases and U.S. company reporting all offer potentially game changing assessments of the global economy and the fortunes of individual companies," said Michael McCarthy, chief market strategist at CMC Markets.

Benchmark U.S. crude added 31 cents to $42.95 per barrel in New York. The contract fell $1.09, or 2.5 percent, to $42.64 a barrel on Monday. Brent crude, used to price international oils, gained 26 cents to $44.74 a barrel in London.

The dollar fell to 110.93 yen from 111.12 yen while the euro rose slightly to $1.1271 from $1.1268.

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4:00 p.m.

U.S. stocks are closing lower as investors found little to like in the latest batch of company earnings.

Xerox slumped 13 percent Monday after reporting a plunge in earnings and cutting its profit forecast.

Perrigo, an Irish drug maker, dropped 18 percent after cutting its own earnings outlook, citing lower prices for its products in Europe.

Energy companies fell more than the rest of the market as oil and gas prices turned lower.

The Dow Jones industrial average edged down 26 points, or 0.2 percent, to 17,977.

The Standard & Poor's 500 index lost three points, or 0.2 percent, to 2,087. The Nasdaq composite slipped 10 points, or 0.2 percent, to 4,895.

Bond prices fell. The yield on the 10-year Treasury note rose to 1.91 percent.

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12:55 p.m.

European stock markets have started off the new week the way they ended last down.

The FTSE 100 index of leading British shares closed down 0.8 percent at 6,260.92 while Germany's DAX fell 0.8 percent to 10,294.35. The CAC-40 in France ended Monday's session 0.5 percent lower at 4,546.12.

Chris Beauchamp, senior market analyst at IG, said "it looks like the risk-off atmosphere which characterized the end of last week has been turned up a notch today."

He also cautioned that a much busier calendar over the rest of the week may be a trigger for more selling. Traders will be monitoring upcoming policy decisions from the U.S. Federal Reserve and the Bank of Japan and a raft of earnings reports, from the likes of Apple and BP.

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11:45 a.m.

U.S. stocks are moving lower in midday trading as investors look over some disappointing corporate results.

Xerox slumped 13 percent Monday after reporting an 85 percent plunge in earnings and cutting its profit forecast.

Irish drug maker Perrigo dropped 15 percent after cutting its own earnings outlook, citing lower prices for its products in Europe.

The Dow Jones industrial average fell 106 points, or 0.6 percent, to 17,897.

The Standard & Poor's 500 index fell 11 points, or 0.5 percent, to 2,080. The Nasdaq composite slipped 22 points, or 0.5 percent, to 4,883.

European markets also fell.

Bond prices fell. The yield on the 10-year Treasury note rose to 1.90 percent.

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9:35 a.m. Eastern

U.S. stocks are lower in early trading as investors look over some disappointing corporate results.

Xerox slumped 9 percent in the first few minutes of trading after reporting an 85 percent slump in earnings and cutting its profit forecast.

Irish drug maker Perrigo dropped 10 percent after cutting its own earnings outlook, citing lower prices for its products in Europe.

The Dow Jones industrial average fell 48 points, or 0.3 percent, to 17,957.

The Standard & Poor's 500 index fell four points, or 0.2 percent, to 2,087. The Nasdaq composite slipped two points, or 0.1 percent, to 4,903.

European markets also fell.

Bond prices fell. The yield on the 10-year Treasury note rose to 1.90 percent.

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12:45 a.m.

The British pound is buoyant in currency markets as traders think it's now less likely that the country will opt to leave the European Union in a referendum this summer following some tough talk from President Barack Obama.

While visiting Britain over the weekend, Obama said any decision to leave could be costly and that it could ten years for the country to negotiate a trade deal with the United States.

Worries over so-called Brexit have weighed on the pound in recent months. Now there's a growing expectation, partly on the back of Obama's comments that the British will opt to remain in the EU in the June 23 vote.

Fawad Razaqzada, technical analyst at Forex.com, thinks Obama's intervention in the debate has had "a big impact."

The pound was trading 0.6 percent higher at $1.4495.

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11:00 a.m.

European stock markets are drifting lower at the start of a week that's likely to be dominated by the central banks of the U.S. and Japan.

Germany's DAX was 0.7 percent lower at 10,299 while the CAC-40 in France fell 0.5 percent to 4,549. The FTSE 100 index of leading British shares was 0.2 percent lower at 6,295.

Craig Erlam, senior market analyst at OANDA, reckons it could be "another rocky week" in the markets as traders await and then digest the latest monetary policy decisions from the Federal Reserve and the Bank of Japan.

There's also a raft of economic data towards the back end of the week that could also impact trading, notably eurozone growth and inflation figures. And the U.S. corporate earnings results season will also be monitored.

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7:30 a.m.

Asian stocks are lower across the board Monday ahead of policy decisions by the U.S. Federal Reserve and the Bank of Japan as well as major earnings reports and economic data from Japan and China expected later in the week.

Japan's benchmark Nikkei 225 dipped 0.8 percent to 17,439.30. South Korea's Kospi inched down 0.1 percent to 2,014.55. Hong Kong's Hang Seng fell 0.5 percent to 21,372.85, while the Shanghai Composite dropped 0.3 percent to 2,949.31. Trading was closed in Australia for ANZAC Day, a public holiday.

Central bank policy meetings in Japan and the U.S. are the focus of investors' attention. It is unclear whether additional monetary easing is in store, but the meetings may provide indicators for what can be expected on interest rates in the future.

Benchmark U.S. crude fell 44 cents to $43.29 a barrel in New York. It lost 55 cents to $43.18 a barrel on Friday. Brent crude, used to price international oils, lost 22 cents to $44.89.

In currency markets, the dollar gained to 111.18 yen from 109.48 yen late Friday in Asia. The euro fell to $1.1243 from $1.1303.

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