NEW YORK - Wall Street fell sharply for a second straight session on Tuesday after a hefty jump in wholesale inflation and a drop in new home construction gave investors more reason to believe an economic recovery is far off.
The Dow Jones industrial average dropped 130.84 points, or 1.14 per cent, to close at 11,348.55.
The Standard & Poor’s 500 index fell 11.91, or 0.93 per cent, to 1,266.69, and the Nasdaq composite index fell 32.62, or 1.35 per cent, to 2,384.36.
LONDON - European stock markets closed sharply lower on Tuesday, following heavy losses on Wall Street.
In London, the FTSE 100 index lost 129.8 points, or 2.38 per cent, to 5,320.40 points.
FRANKFURT - The DAX shed 150.45 points, or 2.34 per cent, to 6,282.43 points.
PARIS - The CAC 40 tumbled 116.05 points, or 2.61 per cent, to close at 4,332.79 points
TOKYO - The Tokyo Stock Exchange’s benchmark Nikkei-225 index dropped 300.40 points, or 2.28 per cent, to end at 12,865.05.
HONG KONG - The benchmark Hang Seng index closed down 446.3 points, or 2.13 per cent, at 20,484.37, its lowest closing level since August 17, 2007.
WELLINGTON - New Zealand shares sank nearly 0.5 per cent.
The benchmark NZSX-50 index closed down 15.03 points at 3319.12.
SYDNEY - The Australian stock market is expected to open lower today after US stocks fell overnight following a hefty jump in wholesale inflation.
At 0734 AEST, the Sydney Futures Exchange’s September share price index futures contract was down 35 points at 4,827.
In news today, the Westpac/Melbourne Institute leading index of economic activity for June will be released, and the Department of Education, Employment and Workplace Relations (DEEWR) will release its killed vacancies survey for August.
In company news today, Brambles, Perpetual, Mortgage Choice, Macmahon, Centennial Coal, AGL Energy, Crown, Pacific Brands, Domino’s Pizza, Noni B and Macquarie Leisure Trust Group will release annual results.
Coca-Cola Amatil and Macquarie Airports release interim results.
James Hardie Industries issues first quarter results and Fox Resources Ltd holds a general meeting.
Yesterday, the Australian share market closed more than two per cent lower, dragged down by the resource and financial sectors and a weak lead from Wall Street.
The benchmark S&P/ASX200 was down 118.6 points, or 2.38 per cent, to 4866.4, while the broader All Ordinaries dropped 113.1 points, or 2.24 per cent, to 4930.4.
NYMEX
Oil prices rebounded Tuesday, jumping back above $114 barrel after the dollar weakened against the euro and a rally in heating oil pulled new buyers into energy markets.
Light, sweet crude for September delivery rose $US1.66 to settle at $US114.53 on the New York Mercantile Exchange, after alternating between positive and negative territory earlier in the day.
The September contract expires Wednesday, adding to the volatility.
In London, October Brent crude rose $US1.31 to settle at $US113.25 a barrel.
Crude began the day lower after Tropical Storm Fay missed oil and gas installation in the Gulf of Mexico, easing concerns about a disruption in supplies.
But prices later spiked more than $3 a barrel, apparently driven higher by a surge in heating oil futures that triggered technical buy orders in energy markets, analysts said.
COMEX
Gold rose as the dollar dropped on speculation that a slumping US economy will prevent the Federal Reserve from raising borrowing costs. Silver was little changed.
Gold futures for December delivery rose $11.10, or 1.4 per cent, to $816.80 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, the price touched $787.50 as the dollar climbed as much as 0.4 per cent.
Silver for September delivery added 0.005 of a cent to settle at $13.105 on the Nymex while September copper gained 11.35 cents to settle at $3.4285 a pound.
