Market wrap: US stocks fell on Tuesday, with the Dow snapping a seven-day winning streak, on renewed fears of slowing growth in China and another bout of selling in biotech shares. Biotechs led the S&P 500 and Nasdaq lower and the S&P health care index down 1.2%, had the biggest losses among S&P sectors, followed by industrials, down 1.1%. The Nasdaq Biotech Index was down 3.2%, extending recent declines. - Reuters
The DJIA fell 49.97 points, or 0.29%, to 17,081.89, the S&P 500 lost 13.77 points, or 0.68%, to 2,003.69 and the Nasdaq dropped 42.03 points, or 0.87%, to 4,796.61
Forex summary
*The ringgit rises 0.10% to 4.1820 per US$
*It fell 0.82% to 4.8033 per euro
*Down 0.02% to 6.3831 to the pound sterling
*0.30% lower to 2.9947 per Singapore dollar
*0.17% higher to 3.0494 per Aussie
*Down 0.38% to 3.5092 per 100 yen
Energy
Oil prices gave up early gains and closed lower on Tuesday after the International Energy Agency rekindled fears that the market remains over supplied. Brent futures for November delivery settled at US$49.24 per barrel, down 1.24%, or 62 cents. Brent futures were above US$50 in earlier trading. - Reuters
Top foreign stories
Apple loses patent lawsuit to university, faces hefty damages: Apple Inc could be facing up to US$862 million in damages after a US jury on Tuesday found the iPhone maker used technology owned by the University of Wisconsin-Madison's licensing arm without permission in chips found in many of its most popular devices. The jury in Madison, Wisconsin also said the patent, which improves processor efficiency, was valid. The trial will now move on to determine how much Apple owes in damages. - Reuters
Intel says data centre business to grow less than expected: Intel Corp cut revenue growth forecast for its highly profitable business of making chips for data centers as businesses reduce spending due to weak macroeconomic growth. Intel said on Tuesday it expected the data centre business to grow in "low double digits" in 2015, compared with its earlier forecast of about 15% growth. - Reuters
GE to sell US$30b specialty finance business to Wells Fargo: General Electric Co took a big step on Tuesday in its plan to unload most of its financing operations, saying it has agreed to sell commercial lending and leasing businesses worth more than US$30 billion to Wells Fargo & Co. The US conglomerate has now inked US$126 billion in transactions - more than half of its overall target - since announcing in April it would seek to reduce its GE Capital financing business to less than 10% of earnings as it focuses more on industrial manufacturing. - Reuters
Top local stories
Hai-O goes ‘downstream’: Facing escalating costs and slower domestic consumer demand, Hai-O Enterprise Bhd seeks to grow its business with partners in China via new investments, according to managing director Tan Kai Hee. A new venture entails the opening of a traditional Chinese medicine clinic in Malaysia, a joint venture with a Chinese health food operator in Chengdu. - StarBiz
French firm eyes Komarkcorp units: Komarkcorp Bhd
has received a non-binding indication of interest from French packaging and labelling company Autajon Group to acquire stakes in several of the company’s operating subsidiaries. In a filing with Bursa Malaysia, Komarkcorp said Autajon will conduct a due diligence before making a definitive offer. - StarBiz
Bursa gives Perwaja more time to submit plan: Steel manufacturer Perwaja Holdings Bhd’s application for an extension of time to submit its regularisation plan has been approved by Bursa Securities. The company now has up to Nov 30 to submit a plan, failing which the company would be suspended from trading and subsequently delisted from the stock exchange. - StarBiz
LaBrooy to retire as Axis REIT Managers CEO: Property veteran Datuk George Stewart LaBrooy will retire as chief executive officer of Axis REIT Managers Bhd, the manager of Axis Real Estate Investment Trust (Axis REIT), on Dec 31. In a filing with Bursa Malaysia, Axis REIT said LaBrooy, who is also Malaysian REIT Managers Association chairman, would continue to serve as non-independent non-executive director from Jan 1, 2016. - StarBiz
Toll hike to hit traffic volumes: The hike in toll rates, effective tomorrow, will likely result in lower traffic volumes, as motorists take on the full burden under the respective highway concession agreement. Hong Leong Investment Bank Research said that every 10% toll rate increase would result in a 1% drop in traffic volume. - StarBiz
Rabobank: Downward pressure on ringgit: The ringgit could weaken to around 4.45 to 4.50 against the US dollar towards the end of the year, says Rabobank Group. The Netherlands-based financial institution pointed out that the continued uncertainty over the timing of the interest rate hike by the US Federal Reserve and the possibility of China devaluing its currency in the medium term would remain the two most important global factors imposing downward pressure on the ringgit. - StarBiz
Franklin Templeton opens RM5.29bil fund to Malaysians: Franklin Templeton Asset Management (M) Sdn Bhd has opened the nine-year-old Franklin Templeton Asian Smaller Companies Fund to local investors. The fund has an asset size of over US$1.26bil (RM5.29bil). - StarBiz
Pintaras Jaya puts capex on hold: Construction piling specialist Pintaras Jaya Bhd will not invest in capital expenditure (capex) in the first-half of the company’s financial year ending June 30, 2016 as it sees market sentiment remaining subdued for another year. - StarBiz
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