NEW YORK - US stocks fell 2.1 per cent after an International Monetary Fund report predicting continuing problems in the credit and housing market put stress on financials.
The IMF said the bottom of the housing market was still not visible.
Sentiment was also soured by the weekend closure of two regional banks and a rise in oil prices.
The Dow Jones Industrial Average plunged 239.61 points, or 2.11 per cent, to 11,131.08 and the Standard & Poor’s 500 broad-market index lost 22.39 points to 1,234.37.
The tech-heavy Nasdaq composite slipped 46.31 points to 2,264.22.
LONDON - European stock exchanges fell on renewed financial sector fears following the failure of two US banks over the weekend.
In London the FTSE 100 index lost 40.00 points to 5,312.60
FRANKFURT - The Dax lost 30.45 points to 6,351.15
PARIS - The CAC 40 shed 52.73 points to 4,324.45
TOKYO - Japanese stocks rose slightly after a modest boost from gains on Wall Street in the wake of better-than-expected US economic data.
The benchmark Nikkei dropped 268.55 points to 13,334.76
HONG KONG - Stocks fell on profit-taking in property plays and ongoing concerns about credit markets.
The benchmark Hang Seng Index reversed 53.5 points to 22,687.21.
WELLINGTON - The New Zealand sharemarket made modest gains, helped by a rise in top stock Telecom.
The benchmark NZSX-50 index added 2.41 points to 3256.57
SYDNEY - The Australian stock market is expected to open sharply lower after Wall St fell two per cent on predictions the worst of the housing crisis was yet to come.
On the Sydney Futures exchange, the September share price index futures contract dropped 99 points, or 2.01 per cent, to 4,838.
Today, Alesco Corporation Ltd releases annual results, Harvey Norman Holdings Ltd releases annual sales results and Centennial Coal releases its fourth quarter production report.
The Australian share market continued its losing streak yesterday, falling almost one per cent after the financial sector fell on concerns about ANZ Bank’s increased debt provisions.
The benchmark S&P/ASX200 index shed 48.4 points, or 0.97 per cent, to 4922.1, while the broader All Ordinaries dipped 39 points to 4989.9.
NYMEX
Oil prices rose Monday, approaching $US125 a barrel after militants sabotaged two oil pipelines in Nigeria and Iran claimed that it had doubled the size of its nuclear program but signaled a willingness to work with the US.
The gains, however, were tempered by more evidence that high gas prices are causing Americans to keep their cars off the roads.
The US Transportation Department said Monday that US drivers logged 9.6 billion fewer vehicle miles (15.3 billion fewer vehicle kilometers) in May - or 3.7 per cent - compared to the same period last year, the biggest drop ever for the historically busy summer driving month.
Light, sweet crude for September delivery rose $US1.47 to settle at $US124.73 a barrel on the New York Mercantile Exchange.
COMEX
Precious metals rose as the sharemarket fell and the US dollar weakened against the euro, making them a more attractive investment.
Gold for August delivery rose $US3.30 to settle at $US940.20 an ounce on the New York Mercantile Exchange.
September silver rose 17.5 US cents to settle at $US17.55 an ounce
Copper for September delivery gained 70 US cents to $US361.20 a pound on the New York Mercantile Exchange.
