Asia stocks fall after Spain gets downgrade

Associated Press Modified: October 10, 2012 at 10:16 pm •  Published: October 10, 2012
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"The slow progress towards a sovereign bailout for Spain will have likely played a role in the (S&P) decision, a factor that is also weighing on general market sentiment," analysts at Credit Agricole CIB in Hong Kong said in a market commentary. "The debt downgrade may on the margin increase the pressure on the Spanish government to request a formal bailout."

Wall Street stocks dropped Wednesday. The Dow Jones industrial average fell 1 percent to 13,344.97. The Standard & Poor's 500 index lost 0.6 percent to 1,432.56. The Nasdaq composite index dropped 0.4 percent to 3,051.78.

The U.S. quarterly earnings season is expected to be the weakest in three years. Analysts project that companies in the S&P 500 will collectively report third-quarter earnings that are 1 percent lower compared with the same quarter of last year.

Chevron, the second-largest U.S. oil company, has warned that slumping oil prices and production would cause earnings to be "substantially lower."

Benchmark crude for November delivery was up 26 cents to $91.50 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.14 to finish at $91.25 per barrel on the Nymex on Wednesday.

In currencies, the euro fell to $1.2848 from $1.2897 late Wednesday in New York. The dollar fell to 78.09 yen from 78.19 yen.



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