Financial Market News

Asian shares were mostly under water on Friday after a sudden slump on Wall Street spilled over globally, though a surprisingly strong pick up in manufacturing helped Chinese markets hold at seven-month highs.

The stock market had its worst one-day drop since February, driven down by a confluence of worries, from weak company earnings to the looming end of stimulus from the Federal Reserve.

Stocks of smaller U.S. companies have dropped this year following a spate of warnings that they've become too expensive.

Energy Resources of Australia has reported a first half net loss as the uranium price hovers around nine year lows amid weak demand.

That stimulus has underpinned gains in the stock market for years. KEEPING SCORE: The Standard & Poor's 500 index dropped 16 points, or 0.8 percent, to 1,953 as of 10:13 a.m. Eastern time.

The Dow, S&P 500 and Nasdaq are all down, with the Dow dropping 155 points. The Nasdaq is having the worst day of the three, falling 1.4%..

A comparison of the Federal Reserve's statements from its two-day meeting that ended Wednesday and its meeting June 17-18: Now: The Fed sees a better job market, but has added new qualifications: "Labor market conditions improved, with the unemployment rate declining further.

The news was nearly all good. The government said that the economy grew at a robust 4 percent annual rate this spring.

Despite strong economic growth and no major surprises from the Federal Reserve, the bulls couldn't quite get it together Wednesday.

Talks aimed at averting Argentina's second default in 13 years ended with bitter recriminations Wednesday as the South American country said it could not accept a deal with U.S. hedge fund creditors it dismisses as "vultures."

The central bank has been gradually reducing, or tapering, its monthly bond purchases since January.

Information received since the Federal Open Market Committee met in June indicates that growth in economic activity rebounded in the second quarter.

U.S. stocks crept higher following news that the economy surged ahead in the spring.

Wall Street is waiting on key economic data releases Wednesday and the numbers could have a major impact on trading trends.

World markets were mostly higher Wednesday ahead of U.S. economic data while cheery earnings from major Japanese companies such as Honda Motor Co.

The 225-issue Nikkei Stock Average gained 42.33 points, or 0.27 percent, from Tuesday to 15,660.40.

The kiwi fell as low as 84.90 US cents overnight and was trading at 84.96 cents at 8am in Wellington, from 85.15 cents at 5pm yesterday.

The summer doldrums appear to be officially here. Stocks didn't do much Tuesday -- a day after the market was mostly spinning its wheels.

Here are the issues at stake: In 1998, Argentina fell into recession and faced crushing payments on its international debt.

Earnings reports and corporate news drove trading in individual stocks. Major indexes in Europe and Asia closed with slight gains.