A roundup of trading on major world markets:
NEW YORK – A dreadful Spanish bond auction and the reluctance of the Federal Reserve to launch a fresh round of US stimulus sent Wall Street share prices tumbling Wednesday.
Before the US trading session Spain raised nearly 2.6 billion euros ($3.4 billion) at auction but was forced to pay higher rates amid fresh concerns over its strained public finances despite a tough budget.
That helped theDow Jones Industrial Average sink 124.72 points, or 0.9 per cent, to 13,074.83.
The tech-rich Nasdaq was down 45.48 points or 1.46 per cent, to reach 3,068.09 points.
The broad-market S&P 500 shed 14.41 points (1.02 per cent) to 1,398.97.
LONDON – European stock markets slumped and the euro lost ground against the dollar, hit by yet more signs of recession in Europe as the European Central Bank kept interest rates at an historic low.
At the close, London’s benchmark FTSE 100 index of top companies fell 2.30 percent to 5,703.77 points, Frankfurt’s DAX 30 slumped 2.84 percent to 6,784.06 points and the Paris CAC 40 shed 2.74 percent to 3,313.47 points.
In Spain, where a disappointing sovereign debt auction rattled nerves, the Ibex 35 lost 2.09 percent. Milan shares tumbled 2.42 percent.
In foreign exchange trading, the euro dropped to $1.3137 from $1.3233 in New York late Tuesday. The dollar slipped to 82.65 Japanese yen from 82.78 yen.
HONG KONG – Asian markets have slipped after it became apparent that the US Federal Reserve will not implement stimulus measures in the near term.
Regional shares followed Wall Street lower on disappointment that markets will not be greased with any more cash as the Fed said it would play a wait-and-see game.
Tokyo tumbled 2.29 per cent, or 230.40 points, to 9,819.99, Seoul was 1.5 per cent, or 30.67 points, off at 2,018.61 and Sydney closed flat, edging down 3.1 points to 4,333.9.
Hong Kong, Shanghai and Taipei were closed for public holidays.
WELLINGTON – Wellington closed 0.21 per cent, or 7.33 points, higher at 3,480.42.