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US stocks close lower as IMF cuts world growth forecast

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A roundup of trading on major world markets:

NEW YORK – US stocks have skidded after the International Monetary Fund (IMF) cut its global economic growth forecasts and investors braced for the start of a poor third-quarter earnings season.

The IMF’s gloomier outlook for 2012 and 2013 global growth came a day after the World Bank slashed its growth estimates for developing countries in East Asia and the Pacific.

The Dow Jones Industrial Average was down 109.20 points, or 0.80 per cent, at 13,474.45 in closing trade.

The S&P 500 slid 14.35 (0.99 per cent) to 1,441.53 and the tech-rich Nasdaq shed 47.33 (1.52 per cent) at 3,065.02.

LONDON – European stock markets dipped after the International Monetary Fund cut its forecasts for global economic growth with sentiment also dogged by Spanish bailout speculation, dealers say.

At close, London’s FTSE 100 index of top companies sank 0.54 per cent at 5810.25 points, Frankfurt’s Dax 30 fell by 0.78 per cent to 7234.53 points, while in Paris the CAC 40 gave up 0.70 per cent to 3382.78 points.

Madrid’s Ibex 35 index meanwhile declined by 1.85 per cent to stand at 7745.40 points.

The euro fell to $US1.2873 from $US1.2968 late in New York on Monday.

HONG KONG – Asian markets were mixed, with concerns over Europe’s debt crisis overshadowing strong gains in Shanghai and Hong Kong fuelled by stimulus hopes.

With the corporate earnings season coming up, dealers were taking a cautious approach, while a cut in growth forecasts for the regional and world economy by the International Monetary Fund (IMF) also weighed on markets.

Sydney rose 0.52 per cent, or 23.4 points, to close at 4,505.3 — a 14-month high thanks to rising iron ore prices. Seoul eased 0.14 per cent, or 2.85 points, to 1,979.04 and Tokyo fell 1.06 per cent, or 93.71 points, to 8,769.59.

Hong Kong rose 0.54 per cent, or 112.72 points, to 20,937.28. Shanghai advanced 1.97 per cent, or 40.81 points, to 2,115.23, with the market also helped by a huge central bank injection of funds aimed at boosting liquidity.

WELLINGTON – The NZX 50 index fell 15.92 points, or 0.4 per cent, to 3907.99.