Market Buzz: Pessimism reigns

Equities are likely to take a dive in early Wednesday trading, reflecting renewed worries over Europe’s fiscal stability.

Russian stocks closed in the black Tuesday amid news of improved US retail sales and an uptick in the German GDP. The MICEX added 0.7% and the RTS climbed 0.6%.US stocks rose in early trading Tuesday as the Commerce Department reported sales at US retailers increased 0.8% in July, following three straight monthly declines. Those gains were erased following a report that Greece was seeking an extended timetable for implementation of proposed austerity programs. The Dow Jones lost 0.1%, while the S&P 500 fell less than 0.1% and the Nasdaq declined 0.2%.European stocks rose on Tuesday amid the better-than-expected data on German growth and improved US retail sales. Though the Eurozone’s economy shrank 0.2% from April to June, the German economy grew 0.3% in the same time period, beating forecast of a 0.2% growth. The Stoxx Europe 600 rose 0.7%, the German DAX 30 added 0.9% and the French CAC 40 climbed 0.7%.Asian stocks traded lower Wednesday with banking and commodity-related shares taking losses. Hong Kong’s Hang Seng shed 1%, while the Shanghai Composite lost 0.75%. Australia’s S&P/ASX 200 lost 0.4% and Japan’s Nikkei Stock slipped 0.6%. South Korean trading floors were closed for a public holiday.