A roundup of trading on major world markets:
NEW YORK – Technology stocks led US markets lower on Wednesday after a disappointing earnings report from Oracle Corp.
Uncertainty over whether Washington will extend a tax cut and surprisingly large loans by the European Central Bank to boost the region’s banks also gave investors reasons to sell stocks.
The Nasdaq composite fell 37.96 points to 2,565.81 in early afternoon trading. The Nasdaq index is heavily weighted toward technology companies, so Oracle’s decline had a big impact.
Broader market indicators fell less. The Dow Jones index lost 27.36 points, or 0.24 per cent, to 12,074.22. IBM Corp. fell 3.9 per cent, the biggest decliner among the Dow’s 30 stocks. On Tuesday the Dow jumped 337 – its biggest gain this month – on good economic news from Europe and a surge in new home construction in the US.
The Standard & Poor’s 500 index slipped 1.64 points to 1,239.35 in early afternoon trade.
The initial reaction to the 489.19 billion euros ($A637.51 billion) in lending by the European Central Bank was positive. Investors were glad to see the bank willing to help the eurozone out of its debt crisis. But then worry set in that Europe’s banks needed so much help in the first place.
LONDON – European stocks and the euro slipped on Wednesday as initial gains made on news of a massive bank liquidity injection by the European Central Bank (ECB) faded in unease at the huge amount offered.
The ECB three-year refinancing operation, wa first welcomed as a decisive step in calming the eurozone debt crisis by bolstering the banks.
However, the amount involved could mean that the banks were in even worse shape than first thought and as investors took that view on board, the markets fell back, dealers said.
In London, the FTSE-100 index of top companies closed down 0.55 per cent to 5,389.74 points.
In Paris, the CAC-40 lost 0.82 per cent to 3,030.47 points and in Frankfurt the DAX 30 shed 0.95 per cent to 5,791.53 points.
Madrid fell 0.90 per cent and Milan shed 0.97 per cent.
HONG KONG – Asian markets enjoyed some Christmas cheer on Wednesday as strong US housing data and a successful bond issue by Spain added to upbeat business and consumer sentiment in Germany.
Dealers appeared to have overcome their nervousness seen earlier this week following news that North Korean leader Kim Jong-Il had died, leaving the nuclear-armed rogue nation in a state of uncertainty.
Tokyo rose 1.48 per cent, or 123.50 points, to 8,459.98 and Seoul surged 3.09 per cent, or 55.35 points, to 1,848.41 while Sydney added 2.13 per cent, or 86.4 points, to close at 4,139.5.
Hong Kong gained 1.86 per cent, or 336.25 points, to end at 18,416.45 but Shanghai gave up its morning gains and slipped 1.12 per cent, or 24.78 points, to 2,191.15.
WELLINGTON – New Zealand shares rose on Wednesday, joining a global rally on better US economic data and signs of progress with Europe’s debt crisis.
The NZX 50 Index climbed 21.05, or 0.7 per cent, to 3223.07. Within the index, 24 stocks rose, 15 fell and 11 were unchanged. Turnover was $84 million.
