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European stocks fall as US market closed for Memorial Day

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Eds: US markets were closed on Monday (US time) for the Memorial Day public holiday)

SYDNEY, May 29 AAP – A roundup of trading on major world markets:

NEW YORK – Another flare-up in Europe’s debt crisis knocked US markets lower on Friday. This time, it was more trouble at a major Spanish bank.

The Dow was down 74.92 points (0.60 per cent) to 12,454.83.

The Nasdaq was down 1.85 (0.07 per cent) to 2,837.53.

The S&P index was modestly down 2.86 (0.22 per cent) to 1,317.82.

LONDON – Most European stock markets have fallen on bank strains in Spain, but avoided a deep slump after opinion polls pointed to a win for pro-austerity conservatives in the upcoming Greek election.

The European single currency rose to $US1.2543 from $US1.2515 late in New York on Friday, when it briefly hit a 22-month low point of $US1.2496 on eurozone debt worries.

The eurozone bond market was under renewed tension owing to concerns about the Spanish banking sector and despite more optimistic sentiment about Greece.

At the close on Monday, London’s FTSE 100 index firmed by a slight 0.09 per cent to 5,356.34 points, Frankfurt’s DAX 30 dropped 0.26 per cent to 6,323.19 points and in Paris the CAC 40 fell 0.16 per cent to 3,042.97 points.

Madrid shares plummeted by 2.17 per cent to 6,401.2 points, a nine-year low point, as troubled Spanish lender Bankia lost 13.38 per cent after it sought a record 19-billion-euro ($A24.5 billion) state bailout.

Spanish banks are at the heart of fresh market fears that the eurozone’s fourth-largest economy might have to seek an international financial bailout.

Spanish Prime Minister Mariano Rajoy acknowledged on Monday that the state was struggling to borrow as its risk premium shot to a euro-era record.

HONG KONG – Asian markets rose as opinion polls indicated a victory for pro-austerity conservatives in next month’s Greek general election, but gains were tempered by concerns about Spain.

Tokyo gained 0.15 per cent, or 12.76 points, to 8,593.15 while Mumbai rose 1.23 per cent, or 199.02 points, to 16,416.84.

Hong Kong closed 0.47 per cent higher, adding 87.58 points to 18,800.99 while Shanghai advanced 1.19 per cent, or 27.81 points, to 2,361.37.

Seoul was closed for a public holiday.

WELLINGTON – The NZX 50 Index shed 23.97 points, or 0.7 per cent, to 3,462.25