US Markets closed sharply lower on Wednesday due to GM,as the automaker moved one step closer to Chapter 11 bankruptcy filing and increased economic concerns.US Markets traded flat in morning trade following a mixed report from the housing market.It showed a bigger than expected increase in existing home sales but also showed increase in housing inventories.

On Wednesday, the Dow Jones industrial average down 173.47 points, down 2.05 percent, to 8300.02. The Standard & Poor's 500 index was down 17.27 points, down 1.9 percent, to 893.06. The tech-heavy Nasdaq composite index fell 19.35 points,down 1.11 percent, to 1731.08.

General Motors shares were down 20.1 percent as the automaker moved one step closer to Chapter 11 bankruptcy filing.Banking stocks also closed lower as Kbw Bank Sector Index declined by 3.8 percent.JP Morgan Chase down 5.2 percent,American Express down 4.4 percent.Airlines stocks also closed lower as crude prices rose above $63 per barrel.

On Thursday ,a series of economic reports are expected which include jobless claims and new home sales,weekly crude inventories.

FTSE 100 index ended higher 0.1 percent up 4.51 points to 4416.23,Germany's DAX closed up 0.3 percent down 15.17 points to 5000.77,France's CAC 40 up 0.76 percent up 24.77 points to 3294.86.

Dollar was mixed against other major currencies. Gold prices edged higher.Crude oil for June delivery rose $1 to settle at $63.45 per barrel on the New York Mercantile Exchange.Gold for June delivery settle at $953 an ounce.
Wednesday,12 May 2009