US Markets tumbled Tuesday, as investors retreated at the start of what is typically a rough month, betting that the six-month stock advance has raced ahead of the economic recovery.
Some analysts are saying "I think we've had a nice run and it's time for a bit of a pullback, I wouldn't be surprised if we moved back to the 880 level (on the S&P 500) before moving back up. I think the 'whisper number' for [the manufacturing report] was higher and once people digested that, the market swung in the other direction. Welcome to September, historically the toughest month of the year for investors,"
The Dow Jones Industrial Average tumbled 185.68 points (1.96 per cent) to settle at 9310.6.
LONDON - European stock markets closed sharply lower on Tuesday, in volatile trade, extending losses as investors continued to take profits on recent gains and ignored largely positive economic data.
In London, the FTSE 100 index of leading shares settled down 89.2 points, or by 1.82 per cent, to 4819.7.
FRANKFURT - The DAX lost 137.32, or 2.51 per cent, to settle at 5327.29.
PARIS - The CAC 40 index tumbled 70.1 points, or 1.92 per cent, to close at 3583.44.
Oil prices skidded for the second straight day, dragged down by falling US equities and a firming dollar that made crude less attractive to investors.
New York's main contract, light sweet crude for October delivery, settled at $US68.05 a barrel, down $US1.91 from Monday's closing level.
The Australian market has received strongly negative leads from the key Wall Street and European indices overnight, and from another drop in the price of crude oil and base metal copper, although precious metals were higher.
At 0657 AEST on the Sydney Futures Exchange, the September share price index contract was 72 points lower at 4449. In economics news on Wednesday, the Australian Bureau of Statistics releases national accounts data for the June quarter.
Gold's move higher was at odds with its usual trend for much of the year, in which it moved in tandem with stocks and other commodities, rising and falling along with investors' hopes for an economic recovery.
Analysts said gold's cachet as a safe-haven investment could be coming back again as jitters return to the stock market. Investors seeking an exit to a bumpy ride in stocks will often park money in safe-haven assets like Treasurys, other kinds of bonds and the dollar.
Gold up2.70 to US$956.50 an ounce Silver up 13.5c to US$15.06 an ounce Copper down .08c at US$2.8185 a pound
Qantas (QAN); downturn is structural and cyclical. Take profits.
