A roundup of trading on major world markets:
NEW YORK – US stocks closed sharply lower Wednesday as turmoil on the eurozone bond markets indicated little confidence in Europe’s efforts to manage its debt crisis.
The Dow Jones Industrial Average tumbled 190.11 points (1.57 per cent) to 11,906.05 in closing trade.
The broad-based S&P 500 fell 20.81 points (1.65 per cent) to 1,237.00, while the tech-heavy Nasdaq Composite lost 46.59 points (1.73 per cent) to 2,639.61.
“Favourable reports on US consumer prices and industrial production, along with a strong quarterly release by Target Corp, are being overshadowed by growing concerns from the eurozone debt crisis front,” Charles Schwab analysts said.
LONDON – European markets were under pressure as the eurozone debt crisis continued to push most European government borrowing costs dangerously higher.
Dealers said there was some respite as Italy and Greece put in place new governments committed to tough economic reforms but all eurozone nations bar powerhouse Germany were roughed up on the bond markets.
Italian benchmark 10-year bond yields once again topped the 7.0 per cent red-zone level on Wednesday, with Spain hit too after it had to abandon its 2011 growth target of a very modest 1.3 per cent.
Only Germany stood out as a beacon of safety, attracting investors anxious not to get caught up in the eurozone debt storm as US figures showed sharp inflows of funds seeking a refuge there.
The prospects spooked the stock markets and even New York could find no support in better-than-expected data on US industrial output, confirming a recent trend of more positive economic figures.
In London, the FTSE-100 index of top companies closed down 0.15 per cent to 5,509.02 points.
In Paris, the CAC-40 gained 0.52 per cent to 3,064.90 points but in Frankfurt the DAX 30 was down 0.33 per cent at 5,913.36 points.
Milan gained 0.80 per cent and Madrid was up 0.81 per cent.
The euro sank to $US1.3429 – its lowest point since October 10 – at one stage but then recovered to $US1.3500, still down from $US1.3536 in New York late on Tuesday.
HONG KONG – Asian shares fell as markets weighed positive US economic data against ongoing concerns about Europe’s debt crisis and the region’s anaemic growth.
Tokyo closed off 0.92 per cent, or 78.77 points, at 8,463.16, Sydney fell 0.89 per cent, or 38.2 points, to 4,247.4 and Seoul was 1.59 per cent lower, shedding 30.05 points, to close at 1,856.07.
Hong Kong’s benchmark Hang Seng index ended down 2.00 per cent, or 387.54 points, at 18,960.90 and Shanghai ended 2.48 per cent, or 62.80 points, lower at 2,466.96.
The interest rate that Italy must pay on its 10-year bonds jumped back above the 7.0 per cent level seen as unsustainable for the country to service its debt while Spanish 10-year government bonds rose to 6.341 per cent.
Even France was punished, with its 10-year bonds at 3.683 per cent, more than twice as much as regional economic powerhouse Germany must pay to borrow.
Despite the caution over Europe, investors were buoyed by US figures released Tuesday that showed retail sales continued to rise in October, helped by a jump in electronics and appliances.
A key manufacturing index for New York also surged to its first positive reading in six months in November, suggesting an upturn in business conditions.
Singapore closed down 0.15 per cent, or 4.14 points, at 2,807.44.
WELLINGTON – Wellington closed down 1.08 per cent, or 35.91 points, at 3,281.42.
Fletcher Building fell 3.9 per cent to NZ$6.15 and Telecom Corp. was down 3.0 per cent at NZ$2.55. Air New Zealand was unchanged on NZ$1.04.
