A roundup of trading on major world markets:
NEW YORK – US stocks have closed firmly in the red as Greece’s political stalemate and Spain’s banking problems drove new fears about the strength of the eurozone.
Meanwhile turmoil at JPMorgan Chase over its $US2 billion derivatives loss announced last week kept US bank shares under pressure.
The Dow Jones Industrial Average slid 125.40 points, or 0.98 per cent, to 12,695.20 in closing trade on Monday.
The S&P 500 fell 15.04 points, or 1.11 per cent, to 1,338.35.
The tech-rich Nasdaq dropped 31.24 points, or 1.06 per cent, to 2,902.58.
LONDON – European equities have slumped and the euro has tumbled to its lowest point since January, with markets hit by mounting fears over the eurozone and a potential exit of Greece from the currency bloc.
Investor sentiment has been rattled as Greek politicians fail again to form a government over the weekend, while the German government faces more gloom at the polls.
Madrid and Milan shares also plunged by more than 3.0 per cent early on Monday on heightened concern that the pair could fall victim to the eurozone sovereign debt crisis, should Greece leave the eurozone.
In London, the benchmark FTSE 100 index of top companies lost 1.97 per cent to 5,465.52 points, while in Frankfurt the DAX 30 dropped 1.94 per cent to 6,451.97 points and in Paris the CAC 40 fell 2.29 per cent to 3,057.99 points.
The European single currency dived at one point to $US1.2830, the lowest point since January 18.
HONG KONG – Asian markets are mixed in choppy trade amid fears over political uncertainty in Europe while China’s move to boost liquidity in the slowing economy has been unable to provide a lift.
The euro continues to face pressure as Greek politicians have failed again to form a government amid fears it could end up leaving the eurozone while Angela Merkel’s party was beaten in a local German poll.
Tokyo closed 0.23 per cent, or 20.53 points, higher at 8,973.84 on Monday while Sydney added 0.28 per cent, or 11.9 points, to 4,297.0.
Seoul closed 0.18 per cent lower, easing 3.40 points to 1,913.73.
Hong Kong ended 1.15 per cent, or 229.59 points, lower at 19,735.04 and Shanghai fell 0.60 per cent, or 14.26 points, to 2,380.73.
WELLINGTON – The NZX 50 Index rose 7.29 points, or 0.2 per cent, to 3555.35.