The Dow Jones industrial average ended down 115.48 points, or 1.16 per cent, at 9,816.49. The Standard & Poor’s 500 Index fell 14.41 points, or 1.35 per cent, at 1,050.47. The Nasdaq Composite Index dropped 45.27 points, or 2.04 percent, at 2,173.90. The broader Topix lost 0.6% to close at 854.13.

Yesterday, US stocks fell as strong German manufacturing data failed to restore investor confidence. In addition the euro slid to a new four year low below $1.19, on the other hand gold prices rose to just below their all-time high. There is concern that the US recovery is loosing pace; that Europe’s economies are too indebted and China’s boom may be fading out. Yesterday, European finance ministers sought to calm nervous markets by nailing down details of a massive financial safety net for the Eurozone as Germany released new budget cuts. Angela Merkel’s coalition agreed to pursue savings of €11.2bn (£9bn) next year, in a bid to restore investor confidence in the finances of the 16-nation currency bloc.

Due for release today is the CAD Housing Starts and AUD Home Loans m/m.

Tags: finance, stocks

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