Indonesia stocks lower at close of trade

Indonesia stocks were lower after the close on Tuesday, as losses in the Agriculture, Miscellaneous Industry and Financials sectors led shares lower.

At the close in Jakarta, the IDX Composite Index lost 0.81%.

The best performers of the session on the IDX Composite Index were Indo Kordsa Tbk , which rose 25.00% or 1125 points to trade at 5625 at the close. Meanwhile, Maskapai Reasuransi Indonesia  added 19.81% or 1575 points to end at 9525 and Saranacentral Bajatama Tbk  was up 14.79% or 21 points to 163 in late trade.

The worst performers of the session were Tembaga Mulia Semanan Tbk , which fell 10.00% or 1000.00 points to trade at 9000.00 at the close. Multifiling Mitra Indonesia declined 9.88% or 32 points to end at 292 and Provident Agro Tbk was down 9.66% or 40 points to 374.

Falling stocks outnumbered advancing ones on the Jakarta Stock Exchange by 186 to 106 and 92 ended unchanged.

Shares in Maskapai Reasuransi Indonesia rose to all time highs; rising 19.81% or 1575 to 9525. Shares in Provident Agro Tbk fell to 52-week lows; losing 9.66% or 40 to 374.

Crude oil for July delivery was up 0.30% or 0.15 to $49.48 a barrel. Elsewhere in commodities trading, Brent oil for delivery in August fell 0.48% or 0.24 to hit $50.12 a barrel, while the August Gold contract fell 0.20% or 2.45 to trade at $1214.25 a troy ounce.

USD/IDR was down 0.08% to 13630.0, while AUD/IDR rose 0.78% to 9878.70.

The US Dollar Index was down 0.10% at 95.62.

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How four words rewrote Bayer-Monsanto deal script

By Tom Polansek and Greg Roumeliotis

(Reuters) - "There is nothing there."

Monsanto Co-President Brett Begemann uttered those words last week to a small group of investors and a Reuters reporter when asked how the world's largest seed company he helps lead might fit with German drugs and crop chemicals group Bayer AG.

Those four words, said on the sidelines of a New York conference, set off a series of events leading to the disclosure of Bayer's confidential, $62 billion bid for Monsanto, the largest all-cash corporate takeover offer on record.

Bayer had sent a confidential acquisition proposal to Monsanto on May 10. Media reports surfaced two days later that Bayer was considering a bid.

Initially, neither company would comment on whether any talks were taking place - a common practice for many corporations that prefer to negotiate deals in private and only tell Wall Street if they manage to come to terms.

But Begemann appeared to go a step further than simply declining to comment at the May 18 conference. Monsanto's securities lawyer was concerned that his reply could be interpreted as a denial that any talks were going on, according to a person with knowledge of the situation.

The U.S. Securities and Exchange Commission has strict disclosure rules to protect investors from being misled by companies. To avoid triggering SEC scrutiny, according to the source, Monsanto issued a statement a few hours after Begemann's comment to acknowledge that Bayer had approached the company about a possible takeover.

Bayer soon followed with its own statement. The negotiations have since been subject to intense investor scrutiny that has weighed on Bayer's deliberations over how much it can pay, according to sources with knowledge of the talks.

The SEC declined to comment on whether it is looking into Begemann's remark.

Monsanto and Bayer also declined to comment, and Monsanto did not make Begemann available for comment. His remark was characterized by sources close to Monsanto as an "honest mistake."

Begemann came "close to a violation but probably not enough" for the SEC to bring a case, because his answer was open to interpretation, said Peter Henning, a law professor at Wayne State University in Michigan.

Begemann's statement could be interpreted to mean that Monsanto and Bayer had not come to a definitive agreement, Henning added.

CHARM OFFENSIVE

Bayer shares, which fell modestly after the initial media reports, dropped as much as 10 percent the day after the company confirmed the takeover approach, as investors fretted over the impact of such an acquisition on its strategy and balance sheet. Some of Bayer shareholders spoke out against doing a deal.

To address those investor concerns, Bayer on Monday unveiled the terms: it had offered $62 billion in cash for Monsanto, and it would finance 25 percent of the bid primarily through a rights offering that would dilute existing shareholders.

Before Monsanto publicly responded, Bayer embarked on a highly unusual investor charm offensive, launching a website and holding presentations. Chief Executive Werner Baumann also gave several media interviews.

"Because of the Monsanto President’s remark, Bayer’s CEO now has to fight a battle on two fronts, negotiating a deal with Monsanto while also trying to keep his shareholders onboard," said Erik Gordon, a professor at the University of Michigan's Ross School of Business.

"It can be an easier pitch to investors when they know they can no longer influence negotiations, and a deal is presented as fait accompli," he said.

On Tuesday, Monsanto rejected Bayer's offer but agreed to hold further talks with Bayer to see if they can agree on better terms. The two companies will now try to carry out negotiations privately, without making further statements until there is an outcome, according to the sources.

INVESTOR FEEDBACK MIXED

Though the negotiations continued after Begemann's comments, some sources close to Bayer said the company felt more restricted on how much more money it can offer Monsanto, given the investor feedback it received. By Friday, Bayer shares ended down 11 percent from where they were before Monsanto disclosed the approach.

To be sure, overcoming such challenges is possible.

"Sophisticated investors understand that deal premiums need to be evaluated" against the stock price before news of negotiations break, said Steven Scheinfeld, global chair of the corporate department of law firm Fried, Frank, Harris, Shriver & Jacobson LLP in New York.

Even transactions that have become public often get to the finish line, he added.

The fact that Monsanto's shares were trading at around $110 - significantly below Bayer's $122 offer price due to uncertainty about the deal - is in Bayer's favor. Monsanto shares were at $97 before Bayer disclosed its offer.

Some Bayer shareholders have been positive about the deal. For example, Royal London Asset Management said that the German company's bid for Monsanto made sense strategically, and that, as a shareholder, it would support a deal if it was priced at around $130-$135 per share.

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Moody's cuts Saudi, Oman, Bahrain debt ratings

Moody's cuts Saudi, Oman, Bahrain debt ratings

DUBAI (Reuters) - Moody's Investors Service cut its debt ratings for Saudi Arabia, Oman and Bahrain on Saturday while assigning negative outlooks to three neighboring states, as low oil prices continue to undermine government finances in the region.

The rating agency downgraded Saudi Arabia's long-term issuer rating by one notch to A1 but gave the kingdom a stable outlook, saying sweeping economic reforms announced by the government last month might stabilize the state budget.

In late April, Deputy Crown Prince Mohammed bin Salman revealed Saudi Arabia's biggest policy shake-up in decades, including tax rises, an efficiency drive and plans to give a bigger role to the private sector.

"The government has ambitious and comprehensive plans to diversify both the economy and its balance sheet which, if even partly successful, should stabilize its credit profile and which could, if achieved, offer a route back to a higher rating level over time," Moody's said.

However, the agency said it was still uncertain how Saudi Arabia would fund a massive budget deficit averaging 9.5 percent of gross domestic product between 2016 and 2020, which would require total financing of $324 billion.

"It is not yet clear how this cumulative financing need will be met: while Saudi Arabia's low levels of government debt at 5.8 percent of GDP in 2015 provide fiscal space, no medium-term funding strategy has yet been announced," Moody's said.

The agency downgraded Oman by one notch to Baa1 with a stable outlook, and cut Bahrain by one notch to Ba2, deeper in junk territory, with a negative outlook. Both countries lack the huge financial and oil reserves of their wealthy neighbors.

While Bahrain can expect support from its ally Saudi Arabia in a crisis, it is likely to find it increasingly hard to borrow in the international markets, particularly since it will be competing for money with its neighbors, Moody's said.

"The further deterioration in the government's balance sheet, combined with increased external debt issuance from other countries in the region, will lower the supply of external funding, thereby heightening the risk that finance is obtainable only at much less affordable rates for Bahrain, or potentially reduced amounts."

Moody's also confirmed the Aa2 ratings of the United Arab Emirates and its biggest member, Abu Dhabi, but assigned a negative outlook to them.

The UAE has been more proactive than its neighbors in restraining spending and reforming its finances in an environment of low oil prices, but Moody's said the government's policies to cut its budget deficit were still not clear.

Moody confirmed the Aa2 ratings of Kuwait and Qatar but gave both of them a negative outlook.

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Dalio's Bridgewater Associates dumps Amazon.com, Coca-Cola: filing

Dalio's Bridgewater Associates dumps Amazon.com, Coca-Cola: filing

New York (Reuters) - Ray Dalio's Bridgewater Associates hedge fund firm sold off its stakes in Amazon.com Inc, Coca-Cola Inc, and Gap Inc during the first quarter and added new stakes in Alphabet Inc and McDonald's Corp, according to the latest regulatory filings.

Bridgewater, the world's largest hedge fund, also slashed its holdings of Apple Inc  by two-thirds, PepsiCo Inc by about 80 percent and Facebook Inc  nearly in half, the fund's 13-F filing shows.

Billionaire investor Carl Icahn said on CNBC in late April that he sold his entire Apple stake, citing the risk of China's influence on the stock.

Bridgewater also more than tripled its stake in Intel Corp  and added new stakes in United Parcel Service Inc, Delta Air Lines Inc and D.R. Horton Inc.

In addition, Bridgewater increased its holdings in a number of oil and gas stocks, while reducing exposure to gold miners.

Hedge-fund SEC disclosures are backward looking and come out 45 days after the end of each quarter. Still, the filings offer a glimpse into what hedge fund managers saw as investment opportunities.

The filings do not disclose short positions or bets that a stock will fall. As a result, they do not always present a complete picture of a management firm's stock holdings.

A spokeswoman for Bridgewater declined to comment.

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Denmark stocks higher at close of trade; OMX Copenhagen 20 up 1.02%

Denmark stocks were higher after the close on Tuesday, as gains in the Personal & Household Goods, Consumer Goods and Software & Computer Services sectors led shares higher.

At the close in Copenhagen, the OMX Copenhagen 20 gained 1.02%.

The best performers of the session on the OMX Copenhagen 20 were Pandora A/S , which rose 11.20% or 95.5 points to trade at 948.5 at the close. Meanwhile, DSV  added 2.34% or 6.3 points to end at 275.8 and FLSmidth & Co.  was up 1.78% or 4.3 points to 245.2 in late trade.

The worst performers of the session were William Demant Holding , which fell 3.77% or 26.0 points to trade at 664.0 at the close. A.P. Moller - Maersk A  declined 1.68% or 145 points to end at 8500 and A.P. Moller - Maersk B was down 1.57% or 140 points to 8780.

Rising stocks outnumbered declining ones on the Copenhagen Stock Exchange by 84 to 54 and 21 ended unchanged.

Shares in Pandora A/S  rose to all-time highs; up 11.20% or 95.5 to 948.5.

Crude oil for June delivery was up 2.33% or 1.01 to $44.45 a barrel. Elsewhere in commodities trading, Brent oil for delivery in July rose 3.78% or 1.65 to hit $45.28 a barrel, while the June Gold contract fell 0.34% or 4.35 to trade at $1262.25 a troy ounce.

USD/DKK was down 0.00% to 6.5360, while EUR/DKK rose 0.01% to 7.4406.

The US Dollar Index was up 0.04% at 94.18.

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Saudi Arabia stocks higher at close of trade

Saudi Arabia stocks were higher after the close on Sunday, as gains in the Insurance, Energy & Utilities and Industrial Investment sectors led shares higher.

At the close in Saudi Arabia, the Tadawul All-Share rose 0.24%.

The best performers of the session on the Tadawul All Share were Salama Cooperative Insurance Co, which rose 10.18% or 1.70 points to trade at 18.40 at the close. Meanwhile, Saudi Arabian Cooperative Insurance  added 9.94% or 1.60 points to end at 17.70 and Al-Jouf Agriculture Development Co  was up 8.45% or 2.50 points to 32.10 in late trade.

The worst performers of the session were United Int Transportation Company, which fell 2.48% or 0.93 points to trade at 36.50 at the close. Samba Financial Group  declined 1.36% or 0.30 points to end at 21.70 and Saudi Telecom  was down 1.16% or 0.75 points to 63.75.

Rising stocks outnumbered declining ones on the Saudi Arabia Stock Exchange by 100 to 33 and 35 ended unchanged.

Crude oil for June delivery was up 0.65% or 0.29 to $44.61 a barrel. Elsewhere in commodities trading, Brent oil for delivery in July rose 0.69% or 0.31 to hit $45.32 a barrel, while the June Gold contract rose 1.43% or 18.25 to trade at $1290.55 a troy ounce.

EUR/SAR was down 0.04% to 4.2769, while USD/SAR fell 0.02% to 3.7504.

The US Dollar Index was up 0.11% at 93.83.

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Bank of America overhauling mutual fund offerings

Bank of America overhauling mutual fund offerings

(Reuters) - Bank of America  will provide research coverage on all of its mutual fund offerings, a move that will require it to get rid of some underperforming and unpopular funds, a company spokesman said on Friday.

Bank of America offers over 3,500 mutual funds to its Merrill Lynch brokerage and investment advisory clients, currently providing in-depth coverage on only about 20 percent of them. It will increase the percentage over time until it eventually covers all the funds it offers while also adding investment recommendations, Bank of America spokesman Matthew Card said.

In order to be able to cover more funds, the bank will not offer new investors some funds that are poor performers and have not attracted much money. The entire review process is expected to take 18 months, Card said.

Additionally, Bank of America will work with mutual fund companies to standardize certain fee waivers, which are overly complex, Card said.

Many of these changes were first reported on Friday by Ignites, a wealth management industry trade publication.

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Wall St. falls after disappointing jobs data

Wall St. falls after disappointing jobs data

By Tanya Agrawal

(Reuters) - U.S. stocks were lower on Friday after April payrolls data showed employment gains hit a seven-month low, casting doubts about the health of the economy and the likelihood of an interest rate hike by the end of the year.

Nonfarm payrolls increased by 160,000 last month, far below the 202,000 that economists polled by Reuters had forecast on average. The number was lower than the first-quarter average monthly job growth of 200,000.

Mixed economic data and the slowing pace of global growth have weakened investors' appetite for risk.

The U.S. economy grew just 0.5 percent last quarter on an annualized basis and inflation has been below the Fed's 2 percent target for years.

U.S. President Barack Obama said on Friday that Congress needs to take steps to help put the wind back in the U.S. economy.

Dismal April jobs data indicated that the weakness in overall economic activity was spilling over to the labor market.

"For those who had thought a June rate hike was in play, this was a nail in coffin," said Phil Orlando, chief equity market strategist at Federated Investors in New York.

"The Fed is not going to change its policy statement in June at all. This raises question about a September rate hike. I would like to think the economy is in a better place at the end of year."

Traders virtually priced out an interest rate increase at the Fed's June 14-15 meeting, according to CME Group's FedWatch. They see a less than 40 percent chance of a hike in September and November, with a 48 percent chance in December.

At 12:35 p.m. ET the Dow Jones industrial average (DJI) was down 27.32 points, or 0.15 percent, at 17,633.39, the S&P 500 (SPX) was down 7.35 points, or 0.36 percent, at 2,043.28 and the Nasdaq Composite  was down 27.03 points, or 0.57 percent, at 4,690.06.

Seven of the 10 major S&P 500 sectors were lower, with the health index's 1.33 percent fall leading the decliners.

Endo International slumped 40 percent to $15.95 after the drugmaker slashed its 2016 revenue and profit forecasts. The stock dragged other specialty drugmakers, such as Horizon Pharma , Mallinckrodt  and Valeant .

An accommodative Federal Reserve and a recovery in oil prices have helped U.S. stocks rebound from sharp losses at the start of the year. However, the rally lost momentum in the past two weeks, weighed by underwhelming quarterly earnings and data.

Oil prices were up less than a percent as investors cashed in on a 20-percent rise over the past month. [O/R]

First-quarter earnings for S&P 500 companies are mostly beating analysts' expectations but are still estimated down 5.3 percent from a year ago, according to Thomson Reuters data.

Shares of Yelp  were up 19.5 percent at $25.59 after the company's revenue beat expectations.

Square fell 19.6 percent to $10.48 after the mobile payments company reported a bigger-than-expected quarterly loss.

Declining issues outnumbered advancing ones on the NYSE by 1,443 to 1,422. On the Nasdaq, 1,645 issues fell and 1,028 advanced.

The S&P 500 index showed nine new 52-week highs and 12 new lows, while the Nasdaq recorded 18 new highs and 64 new lows. Retures

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China to invest $11.9 billion in aviation infrastructure in 2016: Xinhua

China to invest $11.9 billion in aviation infrastructure in 2016: Xinhua

By Adam Jourdan and Siva Govindasamy

SHANGHAI/SINGAPORE (Reuters) - China will invest 77 billion yuan ($11.9 billion) this year in building aviation infrastructure, the official Xinhua news agency reported late on Wednesday, citing the country's civil aviation regulator.

The Civil Aviation Administration of China  said the investment, which will focus on airports, will initially lead to 11 key construction projects and 52 aviation-related upgrades to existing facilities, Xinhua reported.

"The general aviation sector, especially aircraft research and manufacturing, has become a hot spot of both industrial upgrading and social concern," Feng Zhenglin, head of the CAAC, told the official news agency.

China's cabinet separately said late on Wednesday it would support the development of the country's aviation industry and opening up low-altitude airspace, an issue that constrains a fledgling market for helicopters and small aircraft. It did not provide details.

"Opening up will especially benefit China's tourism, emergency medical services, and pilot training sectors, which operate light aircraft and helicopters," said Greg Waldron, Asia Managing Editor at industry publication Flightglobal.

Civilian air traffic controllers handle low-altitude airspace and work with the military to manage both civil and military traffic in most parts of the world.

China's military controls the country's airspace, and its planes have priority over civil aircraft. Special military-only zones also force other aircraft to take a longer route.

Over the last few years, Beijing has relaxed some restrictions on flights below 1,000 m (3,280 ft) - although civil aircraft still need military approval to fly through some areas.

Industry observers expect the approval process to be further relaxed and the ceiling to increase to 3,000 m, in line with Western norms. Some, however, are cautious.

"I doubt they will let people get into their aircraft and fly off without approval like in Australia and the U.S. This is still China and there will still be restrictions," Waldron said.

The relaxation could boost demand for light aircraft. China had only 1,600 light aircraft and around 80 airports to handle them in 2013. It will need 10,000 light aircraft this decade to meet demand, according to some projections.

The U.S., by comparison, had about 300,000 GA aircraft and 24,000 airports for them in 2013.

Since 2000, Western firms like America's Cessna and Austria's Diamond Aircraft have set up joint ventures with Chinese partners to produce light aircraft in the country.

China to invest $11.9 billion in aviation infrastructure in 2016: Xinhua.

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Economies could shrink by mid-century due to scarce water - World Bank

By Sebastien Malo

NEW YORK (Thomson Reuters Foundation) - Economies across large swathes of the globe could shrink dramatically by mid-century as fresh water grows scarce due to climate change, the World Bank reported on Tuesday.

The Middle East could be hardest hit, with its gross domestic product slipping as much as 14 percent by 2050 unless measures are taken to reallocate water significantly, the Washington-based institution said in a report.

Such measures include efficiency efforts and investment in technologies such as desalination and water recycling, it said.

Global warming can cause extreme floods and droughts and can mean snowfall is replaced by rain, with higher evaporation rates, experts say.

It also can reduce mountain snow pack that provides water, and the melting of inland glaciers can deplete the source of runoff, they say. Also, a rise in sea level can lead to saltwater contaminating groundwater.

"When we look at any of the major impacts of climate change, they one way or the other come through water, whether it's drought, floods, storms, sea level rise," Richard Damania, World Bank lead economist and lead author of the report, told reporters in a telephone conference.

Fresh water shortages could take a toll on sectors from agriculture to energy, the World Bank said.

"Water is of course at the center of life, but it's also at the center of economic activity," Damania said.

Water scarcity would not have the same impact worldwide, and Western Europe and North American economies would likely be spared, according to the World Bank models.

But rising economies such as China and India could be hard hit, it said.

In the Sahel belt that stretches across Africa below the Sahara, GDP could well dip some 11 percent with water scarcity, the World Bank said. A similar impact would be felt in Central Asia, it said.

But measures to reallocate fresh water could show gains in some regions, the bank said.

For example, a shift in allocation could lead to GDP growth of about 11 percent by 2050 in Central Asia, the bank said.

The World Bank also advocated pricing water consumption, a proposal that has stirred controversy and is opposed by those who do not think water should not have any price tag.

"If you're making money out of water, particularly if you're using a lot of water as a commercial user, then it's reasonable to suggest that you pay minimally enough to cover the cost of providing you with that water," Damania said.

"This might well mean free water if you are exceedingly poor," he said.

About a quarter of the world's population, or some 1.6 billion people, live in countries where water already is scarce, according to the World Bank.

Last month, 175 nations signed a deal reached last year in Paris to slow global warming and cut greenhouse gas emissions.

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Healthy U.S. April auto sales fail to offset growth fears

Healthy U.S. April auto sales fail to offset growth fears

By Bernie Woodall

DETROIT (Reuters) - Detroit automakers reported another month of strong demand from U.S. consumers for trucks and sport utility vehicles on Tuesday, but their shares dropped as analysts focused on signs the world's second-largest auto market has little room to grow.

U.S. light vehicle sales in April totaled 1.51 million, up 3.6 percent from a year earlier, for a seasonally adjusted annualized rate of 17.42 million vehicles, according to Autodata Corp. WardsAuto said annualized sales were 17.32 million vehicles.

U.S. auto sales in 2015 hit a record 17.4 million vehicles.

Wall Street analysts say the U.S. auto market is close to a cyclical peak and that more production cuts, which hurt profit, could be needed to keep inventories of vehicles from ballooning later in the year.

"We continue to believe sales growth will be muted this year," Joseph Spak of RBC Capital said in a note to investors.

Inventory data issued early on Tuesday pointed to some possible "risk to North American production over the coming months," Spak added.

The sluggish pace of U.S. economic growth adds to concerns that the auto industry recovery could run out of fuel.

April auto sales in Canada were the highest for any month on record, at 200,327 vehicles, consultant Dennis DesRosiers said. Ford, Fiat Chrysler and Toyota all reported double-digit gains in Canada.

Shares of General Motors Co and Ford Motor Co closed down 1.6 percent and 1.4 percent, respectively, as the broader market also declined, while Fiat Chrysler Automobiles NV shares fell 3 percent to $7.96.

GM and Ford said sales to individual consumers were still growing. But because GM has been cutting back on low-profit sales to rental car companies and other fleets, its overall April U.S. sales fell by 3.5 per cent.

GM's results were among many that highlighted a divide in the market between slumping sales of traditional sedans, and robust demand for pickup trucks and SUVs.

GM said sales of the Chevrolet Silverado pickup truck rose nearly 9 percent in April compared with a year earlier. However, sales of GM's Cadillac CTS and ATS luxury sedans plummeted 23 percent and 18 percent, respectively.

Other luxury brands also had weak results in April, especially for cars. Toyota Motor Corp's (T:7203) Lexus division suffered a 26 percent decline in sales of cars such as the large LS sedan, although sales of Lexus brand SUVs rose 20 percent.

German luxury car maker BMW AG  said sales of its BMW brand passenger cars fell 6.5 percent, while its SUV sales fell 9.7 percent.

The chief executives of two leading auto dealer groups, AutoNation Inc  and Group 1 Automotive (N:GPI), had warned in April that automakers should start curbing production, particularly of slow-selling luxury sedans.

Still, April U.S. sales for Ford, Honda Motor Co (T:7267) and Nissan Motor Co (T:7201) all beat analysts' expectations. Ford's sales rose 4 percent from a year earlier, Fiat Chrysler Automobiles was up 5.6 percent and Toyota Motor Corp (T:7203), No. 3 in the U.S. market, rose 3.8 percent. Honda sales rose 14.4 percent.

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Indonesia stocks higher at close of trade; IDX Composite Index up 0.08%

Indonesia stocks higher at close of trade

Indonesia stocks were higher after the close on Tuesday, as gains in the Financials, Property and Basic Industry sectors led shares higher.

At the close in Jakarta, the IDX Composite Index gained 0.08%.

The best performers of the session on the IDX Composite Index were Wilmar Cahaya Indonesia Tbk, which rose 16.98% or 135 points to trade at 930 at the close. Meanwhile, Prasidha Aneka Niaga Tbk  added 16.50% or 17 points to end at 120 and Saratoga Investama Sedaya  was up 15.73% or 530 points to 3900 in late trade.

The worst performers of the session were Kedawung Setia Industrial Tbk, which fell 10.00% or 28 points to trade at 252 at the close. Gema Grahasarana Tbk declined 10.00% or 44 points to end at 396 and Soechi Lines Tbk  was down 9.79% or 46.00 points to 424.00.

Falling stocks outnumbered advancing ones on the Jakarta Stock Exchange by 152 to 146 and 101 ended unchanged.

Shares in Wilmar Cahaya Indonesia Tbk rose to 52-week highs; rising 16.98% or 135 to 930.

Crude oil for June delivery was down 0.80% or 0.36 to $44.42 a barrel. Elsewhere in commodities trading, Brent oil for delivery in July fell 0.52% or 0.24 to hit $45.59 a barrel, while the June Gold contract rose 0.23% or 2.95 to trade at $1298.75 a troy ounce.

USD/IDR was up 0.65% to 13200.0, while AUD/IDR fell 1.70% to 9886.85.

The US Dollar Index was down 0.41% at 92.15.

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Wall Street drops more than 1 percent as growth fears resurface

By Tanya Agrawal

(Reuters) - Wall Street was sharply lower, with the three major indexes falling more than 1 percent in late morning trading on Tuesday, after weak economic data out of China and Europe rekindled fears of a slowing global economy.

Activity at China's factories shrank for the 14th straight month in April as demand stagnated, a private survey showed. Britain's manufacturing output also unexpectedly shrank to hit its lowest level in three years last month.

Adding to the downward pressure, oil prices dropped about 2 percent as rising output from the Middle East renewed concerns about global oversupply. [O/R]

Exxon  shares were down 1.4 percent, while Schlumberger  fell 3.3 percent, making them the biggest drags on the S&P energy sector.

"We are reacting to the negative news overnight from China and Europe, and investors are waiting for the jobs data," said Kim Forrest, senior equity research analyst, Fort Pitt Capital Group in Pittsburgh.

"Investors are waiting for better economic data as a justification for the current prices and till we get the jobs data, we might see some down days."

The unemployment report is scheduled to be released on Friday.

Last week, data showed tepid U.S. first-quarter gross domestic product growth and a softening in the Fed's preferred measure of inflation to a rate of 1.6 percent in the 12 months through March from 1.7 percent in February.

At 11:05 a.m. ET (1505 GMT) the Dow Jones industrial average  was down 185.08 points, or 1.03 percent, at 17,706.08, the S&P 500  was down 23.04 points, or 1.11 percent, at 2,058.39 and the Nasdaq Composite was down 59.43 points, or 1.23 percent, at 4,758.16.

Nine of the 10 major S&P sectors were lower, with the energy index's  2.3 percent fall leading the decliners. The financial index  was also down 2.1 percent.

JPMorgan  and Bank of America  fell about 3.5 percent, dragging down the S&P 500. Goldman Sachs's  2.5 percent fall weighed the most on the Dow.

The S&P 500 has jumped 14 percent since mid-February, helped by recovering oil prices and an accommodative Federal Reserve. However, the index faltered last week due to lackluster earnings reports and mixed economic data.

The Fed, which held monetary policy steady last week, is focusing on data, while keeping the door open for a rate hike in June.

The United States could see two more interest rate hikes this year but uncertainties abound including the impact on the economy should Britain vote to leave the European Union, Atlanta Fed President Dennis Lockhart said on Tuesday.

Still, traders are pricing in only one rate hike at the end of the year.

Pfizer  was up 3.5 percent at $33.96 after the company reported a rise in quarterly revenue.

American International Group fell 2.3 percent to $55.22 after reporting a lower-than-expected profit for the third straight quarter.

Declining issues outnumbered advancing ones on the NYSE by 2,428 to 452. On the Nasdaq, 2,069 issues fell and 554 advanced.

The S&P 500 index showed seven new 52-week highs and three new lows, while the Nasdaq recorded 15 new highs and 32 new lows.

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Germany stocks lower at close of trade; DAX down 1.94%

Germany stocks lower at close of trade; DAX down 1.94%

Germany stocks were lower after the close on Tuesday, as losses in the Technology, Utilities and Transportation & Logistics sectors led shares lower.

At the close in Frankfurt, the DAX fell 1.94%, while the MDAX index declined 1.10%, and the TecDAX index declined 1.06%.

The best performers of the session on the DAX were Beiersdorf AG O.N., which rose 0.84% or 0.660 points to trade at 79.390 at the close. Meanwhile, Merck KGAA O.N.  added 0.04% or 0.030 points to end at 80.860 and Henkel AG & Co Kgaa Vzo  was down 0.01% or 0.010 points to 99.810 in late trade.

The worst performers of the session were Commerzbank AG O.N., which fell 9.55% or 0.773 points to trade at 7.322 at the close. Deutsche Bank AG NA O.N. declined 6.27% or 1.005 points to end at 15.025 and RWE AG ST O.N. was down 6.02% or 0.770 points to 12.025.

The top performers on the MDAX were STADA Arzneimittel VNA O.N. which rose 5.20% to 39.725, Stroeer SE  which was up 4.01% to settle at 44.100 and Hugo Boss AG NA O.N. which gained 2.76% to close at 57.650.

The worst performers were Steinhoff International Holdings NV which was down 4.64% to 5.26 in late trade, Deutsche Pfandbriefbank AG which lost 3.42% to settle at 8.93 and Salzgitter AG O.N.  which was down 3.36% to 28.740 at the close.

The top performers on the TecDAX were Carl Zeiss Meditec AG which rose 1.82% to 29.345, Bechtle AG O.N. which was up 0.47% to settle at 92.120 and Telefonica Deutschland Holding AG which gained 0.47% to close at 4.446.

The worst performers were Suess Microtec NA O.N.  which was down 6.10% to 8.800 in late trade, Aixtron SE NA O.N. which lost 4.20% to settle at 4.171 and Dialog Semiconductor  which was down 3.01% to 29.815 at the close.

Falling stocks outnumbered advancing ones on the Frankfurt Stock Exchange by 719 to 202 and 23 ended unchanged.

Shares in STADA Arzneimittel VNA O.N. rose to 52-week highs; up 5.20% or 1.965 to 39.725.

The DAX volatility index, which measures the implied volatility of DAX options, was up 4.79% to 22.97.

Gold for June delivery was down 0.51% or 6.60 to $1289.20 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in June fell 2.84% or 1.27 to hit $43.51 a barrel, while the July Brent oil contract fell 2.09% or 0.96 to trade at $44.87 a barrel.

EUR/USD was down 0.20% to 1.1511, while EUR/GBP rose 0.65% to 0.7912.

The US Dollar Index was up 0.34% at 92.84.

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