A roundup of trading on major world markets:
NEW YORK – US stocks and the euro sank as worries about Europe hang over financial markets.
Energy companies fell hard as the price of crude oil plunged four per cent.
Italy’s borrowing rates ratcheted higher and the euro slid below $US1.30 for the first time since January, two signs that the debt crisis continues to pressure Europe’s governments. The euro has now lost more than three per cent in three days.
In afternoon trade the Dow Jones industrial average fell 145.20 points, to 11,809.74.
The Standard & Poor’s 500 index fell 14.56 points to 1,211.17 and the Nasdaq fell 43.22, or 1.4 percent to 2,536.10.
LONDON – European shares have closed sharply lower and the euro tumbled to near one-year lows against the US dollar on fresh concerns the measures trumpeted at last week’s EU summit will not solve the eurozone debt crisis.
Dealers said the lack of any new economy-boosting plans from the US Federal Reserve also dented sentiment, leaving investors with no lead to go on against a backdrop of dire warnings about the economic outlook.
The banks suffered, with Germany reactivating a banking sector bailout fund after its lenders were told last week they needed to raise more than double the amount of new capital previously estimated.
Pessimistic comments from German Chancellor Angela Merkel on it requiring years to mend the eurozone’s problems likely added to the subdued mood after she dashed hopes on Tuesday about a boost for the bloc’s rescue fund.
In London, the FTSE-100 index of top companies lost 2.25 per cent to 5,366.80 points on Wednesday.
In Paris, the CAC-40 tumbled 3.33 per cent to 2,0976.17 points and in Frankfurt the DAX 30 shed 1.72 per cent to 5,675.14 points.
HONG KONG – Asian markets fell on Wednesday.
Tokyo fell 0.39 per cent, or 33.68 points, to 8,519.13. Olympus, which by the end of trade had not met a deadline to submit its much-delayed earnings, closed 4.1 per cent lower. The firm posted its report soon after the end of trade.
Hong Kong slipped 0.50 per cent, or 92.74 points, to 18,354.43 and Shanghai shed 0.89 per cent, or 20.06 points, to close at 2,228.53.
Seoul gave up 0.34 per cent, or 6.31 points, to 1,857.75.
WELLINGTON – New Zealand shares fell as investors fretted Europe needs to do more to escape its debt crisis.
The NZX 50 Index fell 8.65 points, or 0.3 per cent, to 3,284. Within the index, 21 stocks rose, 17 fell and 11 were unchanged. Turnover was worth $NZ74 million ($A56.33 million), which is below the $NZ113 million ($A86.02 million) daily average during November.
