A roundup of trading on major world markets:
NEW YORK – The Dow and S&P 500 have rallied to recover some of the prior session’s losses, but gains were minimal on the tech-rich Nasdaq due to weakness among biotech shares.
On Monday, the Dow Jones Industrial Average shot up 125.61 points (0.77 per cent) to 16,510.19.
The broad-based S&P 500 rose 8.94 (0.46 per cent) to 1,966.97, while the Nasdaq Composite Index edged up 1.73 (0.04 per cent) to 4,828.95.
Biotech shares fell sharply after Democratic presidential frontrunner Hillary Clinton pledged to take action against runaway price increases on specialty drugs.
LONDON – Volkswagen shares have plunged as investigations spread into its thwarting of pollution controls, but European markets have risen on hopes Greece may follow austerity reforms following the government’s re-election.
According to the US authorities, VW equipped nearly half a million vehicles with software that discreetly turns off pollution controls when driving normally and turns them on when it detects that the car is undergoing an emissions test.
London’s FTSE 100 index edged up 0.08 per cent to 6,108.71 points, the CAC 40 in Paris climbed 1.09 per cent to 4,585.50, and Frankfurt’s DAX 30 index advanced 0.33 per cent to 9,948.51.
Milan rose 0.97 per cent and Madrid added 0.10 per cent in value.
Athens dropped 0.58 per cent following the re-election of Alexis Tsipras in a thumping poll victory, but this boosted sentiment in the rest of Europe as voters handed him a mandate to drive through unpopular reforms agreed under an austerity deal struck with international creditors.
“Yet another Syriza victory in the Greek election … ostensibly secures the continued implementation of the measures agreed in the latest bailout,” Spreadex analyst Connor Campbell said.
HONG KONG – Asian markets closed mostly lower after the US Federal Reserve delayed an interest rate rise, with traders seeing the decision as a sign of weakness in the global economy despite initially welcoming it.
Fed chief Janet Yellen said bank policymakers cited the ongoing slowdown in China and recent turmoil on world markets as playing a role in the decision.
Analysts said it would prolong uncertainty about when rates will eventually rise.
“Investors seemingly decided that the Fed’s baulk was a sign that things are worse in the world than they actually appear,” Raiko Shareef, a markets strategist in Wellington at Bank of New Zealand Ltd, said in an email to clients.
Sydney ended 2.02 per cent lower, Seoul shed 1.57 per cent and Hong Kong lost 0.75 per cent.
However, Shanghai closed 1.89 per cent higher. Tokyo was closed for a public holiday.
WELLINGTON – The S&P/NZX 50 Index dropped 28.53 points, or 0.5 per cent, to 5683.52.