A roundup of trading on major world markets:
NEW YORK – Lower corporate earnings and reports that a key meeting between European financial ministers had been cancelled pulled Wall Street stocks lower.
Assets that tend to hold their value in a weak economy, like US government debt and gold, rose.
Nearing the end of the session, The Dow Jones Industrial Average was down 147.51 points, or 1.24 per cent, at 11,766.11.
The S&P500 index was down 19.11 points, or 1.53 per cent, at 1,235 points, and the Nasdaq was down 50.32 points, or 1.89 per cent, at 2,648.51.
Manufacturing conglomerate 3M cut its 2011 earnings forecast, and US Steel warned that demand for its products could slow.
Netflix Inc plunged 36 per cent after the company cut its profit forecast and said it is losing subscribers following a price increase in July.
The market was also pulled lower by a report that consumer confidence plunged in October to the lowest level since March 2009.
The Conference Board index measures how shoppers feel about business conditions, the job market and their outlook for the next six months.
The latest headlines from Europe cast doubt over whether leaders there can agree on a comprehensive solution for the region’s debt crisis in time for a summit Wednesday.
Traders warn that if European leaders fail to come up with a credible solution it could sent markets sharply lower.
LONDON – European stock markets closed lower as a plan to resolve Europe’s escalating debt crisis was put in doubt after officials said key parts of the package may not be ready in time for a leaders’ summit on Wednesday.
A meeting of European Union finance ministers, which was to be held just before the summit, has been called off.
A summit of EU and eurozone leaders planned for Wednesday evening will still be held, but it remains unclear whether the heads of state and government would be able to reach a detailed deal.
London’s FTSE-100 index of top companies lost 22.52 points, or 0.41 per cent, to 5,525.54 points.
In Paris, the CAC-40 lost 46.17 points, or 1.43 per cent, to 3,174.29 points and in Frankfurt the DAX 30 dropped 0.14 per cent to 6,046.75 points.
HONG KONG – Asian shares were mixed with investors taking a breather from the previous day’s rally as they nervously await a crucial summit aimed at tackling the eurozone debt crisis.
Tokyo slipped 0.92 per cent, or 81.67 points, to 8,762.31 as hopes for progress in Europe’s debt crisis gave way to caution on the domestic front as Japan’s corporate earnings season kicked off.
Seoul lost 0.51 per cent, or 9.67 points, to end at 1,888.65.
However, Hong Kong jumped 1.05 per cent, or 196.38 points, to 18,968.20 and Shanghai rose 1.66 per cent, or 39.34 points, to 2,409.67.
Both markets rose on Chinese data showing a pick up in manufacturing activity on the mainland.
WELLINGTON – New Zealand shares rose as the local market played catch-up after a three-day weekend when most equity markets rose on optimism for a solution to Europe’s debt crisis at a summit tomorrow.
OceanaGold led gainers and Pumpkin Patch fell.
The NZX 50 Index gained 15.2 points, or 0.5 per cent, to 3,296.36. Within the index, 30 stocks rose, 14 fell and six were unchanged. Turnover was $NZ90.8 million.
