A roundup of trading on major world markets:
NEW YORK – US equity markets tanked Wednesday as a poor German government debt auction fuelled fears over Europe’s fiscal crisis and weak growth in the eurozone, a major US trading partner.
Markets spent the day stuck in negative territory after Germany was able to sell only part of an issue of German 10-year bonds, considered the gold standard of eurozone debt.
The Dow Jones Industrial Average tumbled 236.17 points (2.05 per cent) to 11,257.5.
The broader S&P 500-stock index dropped 26.25 points (2.21 per cent) to 1,161.79, while the tech-rich Nasdaq slid 61.2 points (2.43 per cent) to 2,460.08.
LONDON – European stocks closed sharply lower after a weak sale of German ‘gold standard’ bonds stoked concerns that no-one can be safe from the deepening eurozone debt crisis.
Dealers said investors were shocked by the bond auction in Germany, Europe’s paymaster, powerhouse economy and, up to now, trusted safe haven for investors anxious to protect their money at all costs.
Germany was able to sell only 3.6 billion ($A4.96 billion) euros’ worth of its benchmark 10-year Bund out of the 6.0 billion euros on offer on Wednesday, an outcome reflecting “extraordinarily nervous market conditions”, according a German spokesman.
In London, the FTSE-100 index of top companies closed down 1.29 per cent at 5,139.78 points.
In Paris, the CAC-40 lost 1.68 per cent to 2,822.43 points and in Frankfurt the DAX 30 shed 1.44 per cent to 5,457.77 points.
Madrid tumbled 2.09 and Milan lost 2.59 per cent.
The euro slumped to $US1.3345 from $US1.3507 in New York late on Tuesday. The dollar rose to 77.42 yen from 76.92 yen.
The markets also had to contend with worryingly weak economic data out of the eurozone and China while the US figures later provided no lead.
Eurozone private sector activity retreated for the third month running in November as businesses fretted about the impact of the debt crisis on the economy, a closely-watched survey showed.
HONG KONG – Asian markets fell, following the lead from Wall Street after revised US growth figures showed the world’s number one economy expanded slower than previously thought in the third quarter.
Concerns over the eurozone debt crisis also continued to drag on sentiment, despite the International Monetary Fund (IMF) announcing the expansion of a credit line aimed at helping some countries protect themselves from contagion.
Sydney shed 1.98 per cent, or 82 points, to end at 4,051.0 while Seoul dived 2.36 per cent, or 43.19 points, to 1,783.10.
Adding to the downbeat mood were preliminary figures out of Beijing showing manufacturing activity in China had slumped to its lowest level in 32 months.
Hong Kong tumbled 2.12 per cent, or 387.16 points, to 17,864.43 and Shanghai fell 0.73 per cent, or 17.56 points, to 2,395.07.
Tokyo was closed for a public holiday.
WELLINGTON – Wellington rose 0.50 per cent, or 16.40 points, to 3,268.67.
