A roundup of trading on major world markets:
NEW YORK – US equity markets fell Friday as investors braced for a Greek confidence vote that could oust the prime minister and trigger fresh eurozone debt turmoil.
A mixed US jobs report offered some small signs of improvement, but reminded that high unemployment was well-entrenched in the slowly growing economy.
The Dow Jones Industrial Average dropped 61.23 points (0.51 per cent) to close at 11,983.24.
The tech-heavy Nasdaq Composite shed 11.82 points (0.44 per cent) to 2,686.15, while the S&P 500-stock index, a broader measure of the markets, lost 7.92 points (0.63 per cent) to 1,253.23.
After two straight sessions of solid gains, Wall Street stocks were under pressure from worries about the fast-changing developments in the European debt crisis.
The Europe woes overshadowed a mixed October jobs report from the Labor Department.
The US unemployment rate unexpectedly slipped to 9.0 per cent from 9.1 per cent the prior month. The number of net new jobs added — 80,000 — disappointed, though improvement was seen in upward revisions to prior months’ numbers.
The long-awaited Wall Street debut of online daily deals firm Groupon was a runaway success.
Groupon raised $700 million with the largest IPO by an internet company since Google, which reaped $1.7 billion when it went public in August 2004.
Groupon offered 35 million shares priced at $20. Its shares, trading on the Nasdaq under the ticker symbol GRPN, soared 30.1 per cent to $26.11.
Bond prices edged higher. The yield on the 10-year Treasury fell to 2.05 per cent from 2.07 per cent Thursday, while that on the 30-year Treasury dropped to 3.10 per cent from 3.12 per cent.
Bond yields and prices move in opposite directions.
LONDON – European stock markets closed lower after a mixed US employment report and the G20 summit did little to help ease investor concerns over the risks the eurozone debt crisis poses for growth.
In London, the FTSE-100 index of top companies closed down 0.33 per cent at 5527.16 points but losses elsewhere were substantial — the Paris CAC-40 fell 2.25 per cent to 3123.55 points and in Frankfurt the DAX 30 tumbled 2.72 per cent to 5966.16 points.
Milan, put in the firing line as the IMF and EU said they would monitor the country’s economic reform efforts to ensure Rome honoured its commitments, lost 2.66 per cent and Madrid shed 1.33 per cent.
The euro fell to $US1.3747 from $US1.3808 in New York late on Thursday, while the dollar rose to 78.24 yen from 78.07 yen.
In a mixed October jobs report, the US unemployment rate unexpectedly slipped to 9.0 per cent from 9.1 per cent the month before but the number of net new jobs disappointed at 80,000.
As the G20 put the finishing touches to a closing summit statement designed to kickstart global growth and rebalance trade, senior European Union officials said Italy’s economy would be put under IMF oversight.
HONG KONG – Asian markets rose after Greece’s prime minister backed away from his controversial plan for a national vote on last week’s eurozone rescue package.
Investor confidence was also boosted by a surprise rate cut by the European Central Bank.
Tokyo finished 1.86 per cent higher, or 160.98 points, at 8,801.40, Sydney jumped 2.62 per cent, or 109.3 points, to 4,281.1 and Seoul climbed 3.13 per cent, or 58.45 points, to 1,928.41.
Hong Kong surged 3.12 per cent, or 600.29 points, to 19,842.79 and Shanghai gained 0.81 per cent, or 20.20 points, to 2,528.29.
Global markets rallied last week after the eurozone unveiled a deal to tackle the region’s debt crisis that would see Greece’s bondholders take a loss on their investments, banks recapitalise and a bailout fund boosted.
It also provided a fresh rescue package for Greece as long as it agreed to more austerity measures.
However, Papandreou shocked the world on Monday by saying he would put the bailout deal to a referendum, raising the prospect it would be rejected by a nation already fed up with swingeing cuts.
Adding to Friday’s buying sentiment was the European Central Bank’s decision earlier to cut interest rates a quarter of a point to 1.25 per cent, a shock move by the bank’s new chief Mario Draghi.
While the cut initially sent the euro lower the common currency soon rebounded, helped by the news from Greece.
WELLINGTON – Wellington closed 0.61 per cent, or 20.28 points, higher at 3,331.79.