A roundup of trading on major world markets:
NEW YORK – US stock markets traded choppily on Tuesday, with the Dow Jones Industrial Average squeezed by a sharp downward revision to US growth figures and lingering political concerns in Washington and Europe.
The Dow was down 53.59 points (0.46 percent) to 11,493.7 at the close of trade.
The NASDAQ was down 1.86 points (0.07 percent) to 2,521.28 and the S&P 500 was down 4.94 points (0.41 percent) to 1,188.04.
Among the Dow’s 30 blue chip stocks, oil and gas giant Chevron saw one of the biggest gains, up 0.7 per cent, as oil prices jumped.
Oil prices were pushed higher by the announcement of US, British and Canadian sanctions against Iran’s central bank and petrochemical sector.
Merck fell nearly one per cent after the Justice Department said the firm would pay a fine of nearly $US1 billion ($A1.02 billion) because of misleading marketing related to its painkilling drug Vioxx.
On the bond market, the interest paid by the US government on 10-year bonds fell to 1.92 per cent from 1.97 per cent the day before.
On the 30-year bond, the rate was also down to 2.89 per cent from 2.95 per cent.
LONDON – European stocks closed lower as weaker-than-expected US growth data undercut modest opening gains made in a technical bounce after sustained losses due to the eurozone debt crisis.
The markets were quick to go into reverse from an early rebound when revised data showed the US economy grew 2.0 per cent in the third quarter, not 2.5 per cent as first given.
While on closer reading the data was more positive, the headline numbers were a shock to already nervous investors.
A very sharp spike in Spanish short-term borrowing costs at the first cash raising exercise by the new right-wing government elected at the weekend were an unwelcome reminder the crisis will not let up.
News overnight that a US special committee failed to come up with bipartisan measures to tackle the US debt mountain added to the negative tone, promising to make the issue a key divisive feature of the 2012 presidential elections.
European leaders were meanwhile meeting in Brussels to try to resolve the relentless debt crisis now threatening big nations such as France.
In London, the FTSE-100 index of top companies closed down 0.30 per cent at 5,206.82 points.
In Paris, the CAC-40 dropped 0.84 per cent at 2,870.68 points and in Frankfurt the DAX 30 shed 1.22 per cent to 5,537.39 points.
Milan was down 1.54 per cent while Madrid shed 1.45 per cent.
German stocks were hit by massive losses for Commerzbank of more than 15 per cent, taking the stock to record lows, as investors fretted that Germany’s second biggest bank needs more capital.
The European single currency was little changed at $US1.3492 after $US1.3494 in New York late on Monday but came off highs well above $US1.35 as the day progressed.
HONG KONG – Asian markets were mixed after a US committee charged with finding a deal to cut the nation’s huge deficit said it had failed, while worries over France’s credit rating also depressed sentiment.
Investors extended the broad sell-off to a fifth straight session as leaders on both sides of the Atlantic struggle to agree on a way out of their respective debt crises, which have sent global markets tumbling.
Tokyo eased 0.40 per cent, or 33.53 points, to close at 8,314.74 and Sydney fell 0.72 per cent, or 30.0 points, to 4,133.0 while Shanghai slipped 0.10 per cent, or 2.50 points, to 2,412.63.
However, bargain-buying late in the day sent Hong Kong 0.14 per cent, or 25.74 points, higher to 18,251.59 after four sessions of losses.
WELLINGTON – Wellington fell 0.13 per cent, or 4.29 points, to 3,252.27.
Telecom rose 1.6 per cent to NZ$2.525 but Fletcher building fell 1.2 per cent to NZ$5.93 and Air New Zealand slipped 1.0 per cent to NZ$1.025.
