The last 24-hours saw markets sell off around the globe, with the weakness which emanated out of yesterday’s Asian session spreading into Europe and the US.
In London the UK’s FTSE 100 gave up 56 points (-1%) to close at 5608, whilst the French CAC (-0.7%) and German DAX (-0.5%) were also weaker.
Spain’s borrowing costs crept higher, a sign that investors fear the country might default.
Spain’s neighbours are rescuing the country’s banks, but the government itself was not bailed out and bond investors are not satisfied. Spain’s main stock index closed down 2.6%.
Elsewhere in the region, Greece continues to struggle. Its government said unemployment is still on the rise, hitting 22.5% in April.
Stateside, the Dow Jones shed 31 points (-0.3%) to settle at 12573, whilst the S&P (-0.5%) and NASDAQ (-0.8%) suffered heavier declines.
It was the sixth consecutive losing session for the Dow and S&P, although those markets did rally from their early session lows.
The euro fell to a two-year low as fed-up investors questioned the region’s ability to solve its debt crisis conclusively. It fell as low as $1.2165 and is down about five cents already this month.
The Aussie dollar lost ground, slipping below the 1.02 handle. This morning the Aussie is buying US$1.014.
Oil rose after the US announced more sanctions on Iran, the second-biggest crude-producing member of the Organization of Petroleum Exporting Countries.
Crude oil for August delivery increased 27 cents to settle at $86.08 a barrel on the NYMEX. Prices have decreased 13% this year.
There is no major local economic data due out today but we will see a host of important Chinese data, including GDP and retail sales, hit the airwaves at midday, AEST.
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