News from AAP

Wall Street dives on new data confirming eurozone recession

Print This Post A A A

A roundup of trading on major world markets:

NEW YORK – US stocks opened sharply lower amid growth concerns as data confirmed that the euro zone appears headed into recession.

The Dow Jones Industrial Average dived 153.97 points, or 1.19 per cent, to 12,808.84 in the first five minutes of trade on Tuesday.

The broad-based S&P 500 tumbled 14.91 points, or 1.09 per cent, to 1,349.42.

The tech-rich Nasdaq Composite dropped 29.95 points, or 1.02 per cent, to 2,920.53.

LONDON – European stocks fell sharply and the euro slipped on a warning of a mild euro zone recession, uncertainty over the Greek debt swap and concern about China’s economic outlook.

At close of trade, Frankfurt’s DAX 30 skidded 3.40 per cent to 6633.11 points, the Paris CAC 40 tumbled 3.58 per cent to 3362.56 points and London’s benchmark FTSE 100 index lost 1.86 per cent to 5765.80 points.

Elsewhere, Madrid and Milan both fell by 3.39 per cent, Lisbon by 2.66 per cent, Amsterdam by 2.49 per cent, Brussels by 3.17 per cent and Zurich by 1.73 per cent.

The European single currency retreated to $US1.3112 ($A1.23) from $US1.3218 late Monday in New York.

HONG KONG – Asian markets fell after China cut its growth target and caution over Greece’s debt deal overshadowed upbeat numbers from the United States.

Tokyo closed 0.63 per cent, or 60.96 points, lower at 9,637.63 on Tuesday and Seoul slipped 0.78 per cent, giving up 15.70 points to 2,000.36.

Sydney fell 1.37 per cent, or 58.3 points, to end at 4,204.7 after the Australian central bank kept interest rates on hold as expected.

Hong Kong slumped 2.16 per cent, or 459.06 points, to 20,806.25 and Shanghai shed 1.41 per cent, or 34.55 points, to 2,410.45.

Traders said Monday’s announcement by Premier Wen Jiabao at the opening of the National People’s Congress – the annual parliamentary meeting – that China would target 7.5 per cent growth in 2012 cast a pall over global markets.

WELLINGTON – New Zealand shares rose, led by Guinness Peat Group as investors speculated on when the investment group will divest its stake in insurance group Tower.

Pumpkin Patch rose after the children’s clothing retailer announced global expansion plans.

The NZX 50 Index rose 13.99 points, or 0.4 per cent, to 3,401.83, the highest close since early August. Within the index, 28 stocks rose, 18 fell and four were unchanged. Turnover was $124 million.