Fri 13 Apr 2012 07:39:02 CT
The June NASDAQ fell back into negative territory during the early morning trade, after early gains in the NASDAQ came from an upbeat earnings report from Google as well as the company's plan for an effective stock split of 2 to 1. The broader technology sector appears disappointed by warnings for a challenging environment ahead from Indian software firm Infosys. Some traders feel that overnight losses were limited by Google's earnings report as well as expectations that this morning's reading on US consumer sentiment will remain near their best level since February 2011.
Global equity markets have come under pressure during the early morning hours, as they respond to weaker than expected Chinese GDP readings and rising borrowing costs in Spain. First-quarter growth in China came in at its softest pace in nearly three years and well below market expectations. While the data presents a negative news headline, it may also boost prospects that the Chinese central bank will take a more aggressive stance with stimulating growth. Asian equity markets closed in positive territory after a failed rocket launch in North Korea, and as Chinese lending showed little signs of slowing. European markets have come under selling pressure this morning on reports showing Spanish banks nearly doubled the pace of borrowing from the European Central Bank in March, raising further concerns over their financial position. European technology-related shares were also under pressure after Indian software maker Infosys lowered their sales forecasts. US equities may look towards this morning's earnings from JP Morgan and Wells Fargo for a positive reading to help stem the early morning declines.
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