NEW YORK - The Dow sank into a bear market on Wednesday as US stocks fell on growing concerns about the toll that record oil prices are taking on the economy and corporate profits.
The Dow Jones industrial average tumbled 166.75 points, or 1.46 per cent, to 11,215.51. The Standard & Poor’s 500 Index lost 23.39 points, or 1.82 per cent, to close at 1,261.52, while the Nasdaq Composite Index slid 53.51 points, or 2.32 per cent, to 2,251.46.
LONDON - UK stocks shed 1 per cent, extending the previous session’s sharp losses as miners fell on weaker coal prices and Marks & Spencer slumped after a profit warning, though drugmakers rose.
The FTSE 100 closed at 5,426.3 points, down 53.6 or 0.98 per cent.
FRANKFURT - The DAX index ended at 6,305.42 points, down 10.52 or 0.17 per cent.
PARIS - The CAC-40 index closed at 4,296.48 points, down 44.73 or 1.03 per cent.
TOKYO - The Nikkei average fell 1.3 per cent to hit its longest losing streak in more than 40 years, as worries about the global economy hit exporters such as Canon.
The Nikkei lost 176.83 points to end at 13,286.37.
HONG KONG - Hong Kong shares fell 1.8 per cent to a three-month low, with investors anticipating more profit warnings from listed companies after Cathay Pacific warned of disappointing earnings in the first half.
The Hang Seng Index closed down 397.56 points at 21,704.45.
WELLINGTON - The sharemarket slipped to a new three-year low, albeit on light volumes as investors stayed away.
The NZSX-50 benchmark fell 11.8 points or 0.37 per cent to 3,163.38.
SYDNEY - The Australian share market is expected to open lower today after Wall Street stocks tumbled in volatile trade as crude oil prices raced to record highs triggering fresh economic jitters.
At 0746 AEST on the Sydney Futures exchange, the September share price index was down 97 points to 4,997.
In economic news today, the Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (Australian PSI) for June is released.
The Australian Bureau of Statistics (ABS) international trade in goods and services data for May is due.
The Business Council of Australia president Greg Gailey addresses the Committee for Economic Development of Australia (CEDA) on `Australia’s Emissions Trading Scheme - an opportunity’.
The Australian share market closed in negative territory yesterday after falls from the resource sector and big retailers.
The benchmark S&P/ASX200 index was 44.1 points, or 0.86 per cent, lower at 5094.8, while the broader All Ordinaries lost 49.5 points, or 0.94 per cent, to 5211.6.
NYMEX
Oil prices shot to a record high over $US144 a barrel on Wednesday after a drop in US crude inventories stoked supply concerns.
US crude hit a record $US144.15 a barrel in post settlement trade on Wednesday after settling up $US2.60 at $US143.57 a barrel.
London Brent settled up $US3.59 at $US144.26 a barrel after hitting an all-time high of $US144.76.
Fears of an escalation in the showdown between Iran and the West over Tehran’s nuclear program have helped push oil prices to fresh peaks amid speculation that Israel is preparing a preemptive strike against Iran.
LONDON METAL EXCHANGE
Copper prices hit a two-month high on Wednesday, supported by worries over supply due to a labour dispute in Peru and by a weaker dollar, while aluminium hit a four-month high.
Copper for three-month delivery on the London Metal Exchange touched $8,795 per tonne, its highest since April 17 when it hit a record high of $8,880 a tonne. It closed at $8,720 from $8,610 at the close on Tuesday.
Aluminium ended at $3,200 on Tuesday from $3,155 on Tuesday and compared with an earlier $3,205 a tonne - the highest level since March 10.
Zinc ended at $1,865 from $1,930 a tonne on Tuesday. Earlier it fell by 4 per cent to $1,854.75 a tonne.
Lead closed at $1,705 versus $1,766 on Tuesday, tin edged down to $23,200 from $23,600 on Tuesday and nickel slipped to $21,150 a tonne, down from $21,550 a tonne.
COMEX
Gold ended higher on Wednesday, with record crude oil and weakness in the dollar lifting bullion after investors took profits early in the session.
The August gold contract on COMEX division of New York Mercantile Exchange settled up $2.00 at $946.50 an ounce.
Gold traded $942.60/943.60 by New York’s last trade against $938.40/939.40 late in New York. It rallied to a high of $945.80 an ounce on Tuesday, its strongest since April 18.
Among other precious metals, silver climbed to $18.32/18.39 an ounce from $18.08/18.13 late in New York on Tuesday, when it rallied as high as $18.19, its loftiest level since May 27.
Spot platinum ended slightly down at $2,065.50/2,085.50 an ounce from $2,069.00/2,089.00 late in New York.
Spot palladium was little changed at $463.00/471.00 an ounce from its previous finish of $464.00/472.00 an ounce.
INTERNATIONAL NEWS
LONDON - US Treasury Secretary Henry Paulson said on Wednesday the United States must find a way regulators can allow investment banks to fail without threatening the stability of the financial system.
SAN FRANCISCO - Unable to strike a deal on its own, Microsoft reportedly is hoping to snap up Yahoo’s online search operations with the help of News Corporation and Time Warner.
WASHINGTON - Four senior US senators said on Wednesday they have pledged to work together on legislation aimed at ensuring China and other US trade partners maintain currency regimes that follow International Monetary Fund and World Trade Organization rules.
LONDON - Retail giant Marks and Spencer, regarded as a barometer of consumer sentiment in Britain, saw its share price dive by almost a quarter after delivering a gloomy profits warning.
TORONTO - Rioting in Mongolia’s capital over alleged election fraud could further blur the timetable for getting government approval for Ivanhoe Mines’ big Oyu Tolgoi copper-gold deposit, analysts said on Wednesday.
NEW YORK - The cost to insure the debt of General Motors Corp jumped to a record high on Wednesday after a Merrill Lynch analyst said the automaker will need to raise as much as $US15 billion ($A15.72 billion) in cash and bankruptcy is “not impossible.”
PARIS - The German former chief executive of Airbus, Gustav Humbert, has been charged with insider trading at the planemaker’s parent company EADS.
LIMA - Workers at several crucial mines in Peru threatened to join a nationwide strike that entered its third day on Wednesday, as hundreds of miners in hard hats marched through Lima to demand a bigger share of corporate profits.
SPRINGFIELD, Massachusetts - A US federal judge has ordered former hedge fund manager Samuel Israel back to New York to face new charges after he surrendered to authorities, ending a nationwide manhunt triggered after he faked his own death to avoid a 20-year prison sentence.
STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:
JST - JUST GROUP LTD - down 40 cents, or 12.58 per cent, to $2.78
Takeover target Just downgraded its earnings forecast for this year on the back of a slowdown in consumer spending.
BBG - BILLABONG INTERNATIONAL LTD - down 24 cents to $10.35
Billabong has snapped up southern California-based skateboard brand Sector 9 for an undisclosed sum.
ANN - ANSELL LTD - up eight cents to $9.48
Ansell has paid $11.4 million to buy US military glove supplier Hawkeye Glove Company as the company expands into the military market.
QAN - QANTAS AIRWAYS LTD - down nine cents to $3.15
Plans by Qantas to float nearly half of its frequent flyer business on the stock exchange could generate between $1 billion and $3 billion, giving its shareholders a tidy return.
BSL - BLUESCOPE STEEL LTD - up two cents to $11.14
Bluescope has completed a successful debt raising in the US private placement market for $US325 ($A340.49) million.
MCW - MACQUARIE COUNTRYWIDE TRUST - up 3.5 cents to 88 cents
Macquarie CountryWide Trust has restructured its key debt facility to remove covenants linked to both its gearing level and its interest cover ratio.
WDC - WESTFIELD GROUP - down 32 cents to $15.48
Westfield Group is to build a STG1.5 billion ($A3.13 billion) shopping centre in east London after reaching agreements with UK government and Olympic agencies.
