US Stocks slumped Wednesday as a strong dollar and questions about China's lending practices slammed commodities, one of the leaders of the recent rally.
IBM dragged on the tech sector as investors picked apart the company's outlook one day after sending the stock higher.
The Dow Jones industrial average (INDU) fell 122 points, or 1.1%, according to early tallies, after having fallen as much as 207 points in the morning. The S&P 500 index (SPX) lost 12 points, or 1%. The Nasdaq composite (COMP) gave back 29 points, or 1.3%.
London's benchmark FTSE 100 index finished down 92.34 points, or 1.67 per cent, at 5,420.80.
FRANKFURT - The DAX lost 124.95 points, or 2.09 per cent, to 5,851.53.
PARIS - The CAC 40 fell 80.72 points, or 2.01 per cent, to 3,928.95.
Oil prices tumbled on Wednesday, weighed down by a drop on Wall Street, a stronger dollar and signs that China's energy needs might not be as robust as previously thought. Benchmark crude for February delivery declined $US1.40 to $US77.62 a barrel on the last day of trading for the contract on the New York Mercantile Exchange. Most of the trading has already moved to the March contract, which fell $US1.58 to $US77.74 a barrel.
Australian shares are likely to open lower after global equity markets and commodities slumped overnight on concerns that the economic recovery will take longer than hoped to take hold.
At 0649 AEDT on the Sydney Futures Exchange, the March share price index contract was 34 points lower at 4,803. In economic news on Thursday, the Melbourne Institute releases its survey of Consumer Inflationary Expectations for January.
GOLD down $27.40c to US$1112.60 an ounce SILVER down 92c to US$17.88 an ounce COPPER down 9.2c at US$3.355 per pound
Today's Financial Calendar January 21 2010
NZ retail sales, Nov Australia vehicle sales, Dec UK public finances, Dec US Philadelphia Fed economic activity index, Jan US Conference Board leading economic indicators, Dec China National Bureau of Statistics, press conference 2010 outlook Australia Inflation Expectations, Jan (CXM) - Annual General Meeting (MGX) - December quarter production report (MIG) - December quarter traffic update (MIR) - Ex div. 3.5c (MQG) - US Investment Banks 4Q results (OZL) - December quarter production report (STO) - 4Q Production Report (LCM) - EGM (10:00 AM)
